Social Security (Reciprocal Agreement with Chile) (Jersey) Act 201-

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A decision made 30 March 2015:

Decision Reference: MD-ER-2015-0023

Decision Summary Title :

Social Security – Reciprocal Agreement with Chile

Date of Decision Summary:

18 March 2015

Decision Summary Author:

External Relations

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

Written Report

Title :

Report of the Minister for Social Security:

Draft convention on social security

between the Government of the Republic of Chile

And the Government of the United Kingdom of

Great Britain and Northern Ireland

Date of Written Report:

18 March 2015

Written Report Author:

Social Security

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject: Social Security – Reciprocal Agreement with Chile

Decision(s): The Minister for External Relations decided to lodge ‘au greffe’ the Social Security (Reciprocal Agreement with Chile) (Jersey) Act 201-, with an accompanying report of the Minister for Social Security.

Reason(s) for Decision:

On 21 April 1998, the States adopting a proposition of the then Employment and Social Security Committee, requested the Bailiff to inform the Secretary of State that it was the wish of the Assembly that certain Conventions on Social Security between the Government of the United Kingdom and other Governments should apply to Jersey. One of those Conventions related to the Republic of Chile.

The Social Security agreement with Chile was signed by the UK Secretary of State on 13th March 2012 and the respective procedures for each country to complete ratification were both completed on 10 March 2015. In accordance with Article 13 of the agreement, the Convention will come into force on 1st June 2015.

The Act gives effect in Jersey to the convention establishing a reciprocal agreement on social security between the Governments of Chile and the United Kingdom and would come into force on the 1st June 2015, to bring Jersey’s social security legislation into line with the agreement on the same date as the agreement itself comes into force.

Resource Implications: There are no resource implications.

Action required: External Relations to request the Greffier of the States to arrange for the draft Act and accompanying Report to be lodged ‘au Greffe’ for debate as soon as possible.

Signature:

Position:

Minister for External Relations

Date Signed:

Date of Decision (If different from Date Signed):

Social Security (Reciprocal Agreement with Chile) (Jersey) Act 201-

REPORT OF THE MINISTER FOR SOCIAL SECURITY

DRAFT CONVENTION ON SOCIAL SECURITY

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF CHILE

AND THE GOVERNMENT OF THE UNITED KINGDOM OF

GREAT BRITAIN AND NORTHERN IRELAND

In 1997 the Chilean Authorities made an approach to the United Kingdom Authorities requesting that consideration be given to establishing a full Social Security Reciprocal Agreement. The United Kingdom responded to say that they would not be prepared to enter a full Agreement, but would be prepared to negotiate a contributions only Agreement. Chile agreed to proceed on this basis. As is customary, Jersey, Guernsey and the Isle of Man were separately invited to be included in the agreement and all three Crown Dependencies agreed. The invitation and response was conveyed through official channels.

The initial round of negotiations was held in Santiago, Chile in January 1998. The next round of negotiations was due to take place in London, which in the event did not take place and negotiations stalled.

The Jersey Social Security Department heard little more about the proposed agreement with Chile until contact was made recently by HM Revenue & Customs - Tax Treaty Team. In their communication they explained that Chile had expressed an interest in resuming talks on a contributions only Reciprocal Agreement. The UK authorities agreed to this request and made contact with Jersey, Guernsey and the Isle of Man to ascertain whether they were still minded to be party to an agreement with Chile.

Negotiations recommenced in early February 2011 and a draft Convention was constructed. The Convention follows the normal structure of a contributions only Reciprocal Agreement. The text of the Convention conforms to the usual pattern –

Article 1 – the interpretation Article which defines the terms used in the Convention
Article 2 – describes the legislation covered under the Convention
Article 3 – describes the personal scope of the Convention
Article 4 – is the main reciprocity or equal treatment provision of the Convention
Articles 5 to 8 – these Articles determine where contributions should be paid as workers move between countries
Article 9 – allows the competent Authorities to modify the provisions of the Convention
Article 10 – deals with administrative arrangements
Article 11 – provides the means by which any disputes should be resolved
Articles 12 to 15 – deal with transitional arrangements, the coming into force and life of the Convention and rights of individuals should the Convention be terminated

There are no financial or manpower implications for the States of Jersey.

Explanatory Note

Article 48 of the Social Security (Jersey) Law 1974 enables the States, for the purpose of giving effect to a reciprocal agreement with respect to certain matters relating to social security, to make provision by Act for modifying or adapting the 1974 Law in its application to cases affected by the Convention. This Act enables that Law to be construed as being modified or adapted as required to give effect to the Convention on Social Security between the Republic of Chile and the Government of the United Kingdom of Great Britain and Northern Ireland in its application to cases affected by the Convention.