An Overview of the Norwegian System of Child Support Establishment, Variation and EnforcementNorway – USA conference callJuly 2006 : An Overview of the Norwegian System of Child Support Establishment, Variation and Enforcement Norway – USA conference call July 2006
Slide2 :
Slide3 :
Slide4 : The Organizational Pattern of the National Insurance Service
Organisation of child-support collection : Organisation of child-support collection
Slide6 : National Office for Social Insurance Abroad
(FFU)
The Child Support Unit A central office for the National Insurance Service’s work with foreign matters
deals with 10% of all the child support cases in Norway
one third of the cases against the Nordic countries (Sweden, Denmark, Finland, Iceland)
the obligor lives in the US in 6% of the cases
we enforce 73% of the stipulated child support in our U.S. cases
there are 9 million US dollars in child support arrears from US obligors
The Norwegian legislation on child support : The Norwegian legislation on child support The rights for and the obligation to pay child support
Children Act of 8 April 1981 nr 72
The right for advance child support payments
Advance Payment of Maintenance Act of 17 February 1989 nr 2
The collection of child support and alimony
The Maintenance Payments Recovery Act of 29 April 2005 no. 20
The Children Act : The Children Act Parents have the obligation to
bear the expenses of maintaining and educating the child according to the child’s ability and aptitude and the financial circumstances of the parents, when the child itself does not have the requisite means
the absent parent is obliged to pay monthly child support
The parents may agree upon the child support amount or they may ask the local National Insurance office to establish a child support order
Norwegian authorities have the jurisdiction to establish a child support order
if the child or one of the parents lives in Norway
most of the child support orders are established administratively
we establish child support orders only if the parties do not make mutual agreement on the child support amount
Slide9 : Legislation in Norway When establishing a child support order
both parents’ economical situation will be taken into consideration
the number of children and their age
the obligor’s ability to pay support
The Advance Payment of Maintenance Act : The Advance Payment of Maintenance Act A child who resides in Norway
actually lives in Norway
not living with both parents
is entitled to receiving advance child support payments from the Norwegian State
if the child support agreed upon or ordered is collected by the authorities
even if the paternity has not been established
even if a child support agreement or order has not been established
the advance child support is [subject] to means testing. The amount depends on the CP’s gross income, if she/he lives with another adult person, and if she/he lives with other own children. A full advance support is NOK 1250 per month per child (approximately 180 USD). Depending of the circumstances above, she/he can receive 100, 75, 50 or 0 % of the full amount.
The Maintenance Payments Recovery Act : The Maintenance Payments Recovery Act The Maintenance Recovery Center (TI – The National Insurance Service Agency for the Recovery of Maintenance Payment)
shall collect the child support if the person entitled is in receipt of advance payment (resides in Norway)
the custodial parent may at any time request that the child support shall be collected by TI
a foreign authority may at any time request that the child support shall be collected by TI
Collection ordered in a foreign country will depend on
the foreign state has reciprocal agreement with Norway [or]
is member of one of the Hague Conventions
Norway’s International Obligations Regarding Child Support : Norway’s International Obligations Regarding Child Support The Nordic Convention
convention between Norway, Denmark, Finland, Iceland and Sweden on enforcement of child support and alimony (1962)
The UN convention
convention on the recovery of maintenance abroad (the New York Convention 1956)
The Hague Convention –58
convention on the recognition and enforcement of decisions relating to maintenance obligations in respect [to] children
The Hague Convention –73
convention on the recognition and enforcement of decisions relating to maintenance obligations
The Lugano Convention
Convention on jurisdiction and the enforcement of judgments in civil and commercial matters
A reciprocal agreement between the US and Norway from June 2002
International Work on Child Support in Norway – a Historical Overview : International Work on Child Support in Norway – a Historical Overview Up to 1990 international child support cases were handled by the local child support enforcement offices
some offices had scarcely one foreign case per year
From 1991 the work with all foreign cases is centralized
From 1992 the work with child support was transferred from the municipalities to the National Insurance Administration
The foreign cases have since then been handled by the National Office for Social insurance Abroad (FFU)
collected amount before 1991 was practically 0
collected amount today is 63% of the monthly amount due in all cases with the obligor abroad
From Germany 77%
From the US 72 %
From the Nordic countries 70%
From Greece 21%
Working International Cases in Norway : Working International Cases in Norway FFU’s responsibilities
establishment of child support orders in cases where one of the parties lives abroad
upon request from the custodial parent or the absent parent or from foreign authorities or on our own initiative
receiving agency for request for enforcement of foreign child support orders
under the Nordic convention, the Hague convention and the US/Norway agreement
Working International Cases in Norway : Working International Cases in Norway According to the Children Act, Norway will always have jurisdiction to establish a child support order when one of the parties or the child lives in Norway.
This means that a request for establishment of a child support order from a foreign country is independent of the requesting country being a member of one of the conventions or the existence of a reciprocal agreement
Working International Cases in Norway : Working International Cases in Norway Centralization has been of great importance
Norway is a small nation (4,5 millions inhabitants)
Manuals for the most important countries
simplifies the work with foreign cases
new caseworkers can easily and fast handle foreign cases
Conventions are our main instruments
the Nordic convention
the two Hague conventions
the agreement between the US and Norway
FFU has built extensive net of contacts
with foreign child support authorities
with persons working with child support around [the world]
Slide17 : THE ASSESSMENT RULES
The child support amount will be stipulated on the basis of the statistical maintenance cost for supporting the child. The maintenance cost is calculated on the basis of consumption expenses, living expenses and any costs of child care.
Slide18 : The maintenance cost will increase with the child’s age and is divided into three age groups: 0 – 5 years, 6 – 10 years and 11 years and more.
The maintenance cost will be divided between the parents in proportion to their individual income. The NCP’s share of the cost will be rounded off to the nearest sixth of the maintenance cost.
Slide19 :
A party’s income will be settled by discretion if
· he/she does not submit the requested documentation, or there are reasons to believe that he/she is withholding information material to the decision
· or he/she has no reasonable justification for having a significantly lower income than he/she could obtain, or if he/she has no income at all.
Slide20 : When the child support amount is stipulated by the authorities, the NCP is entitled to retain a certain minimum of his/her income to maintain him-/herself and any own children in his/her household. The consequence of this may be that the support will be reduced or set aside completely.
Slide21 : The total child support amount (for all NCP’s children) cannot exceed 25 % of the NCP’s income.
Slide22 : The child support amount will be reduced if the parents enter a written agreement, or the court issues an order stating that the child shall spend an average of at least two days in a month with the [NCP].
Slide23 : The reduction will be stipulated on the basis of the average number of nights per month the child spends with the NCP. The reduction increases with the extent of time spent with the child. The reduction is divided into four groups: 2 – 3 nights, 4 – 8 nights, 9 – 13 nights and 14 – 15 nights, and increases with the age of the child.
Slide24 : Both parties may at any time apply for a variation
of a previous agreement or order.
There will be issued a new order if the variation
exceeds 10 per cent of the previous amount.
Slide25 : The obligation to pay child support normally ceases from
the month following the child’s 18th birthday.
If the child continues at school after he/she reached
the age of 18, he/she may apply for stipulation of support
for the duration of the school.
Slide26 : National Insurance Service Collection Agency Central agency which collect child support in Norway
very efficient and collect 97% of all stipulated child support
from abroad all cases and questions have to be forwarded to FFU (National Office for Social insurance Abroad)
From 2003 they also will collect from obligors in the Nordic countries
How are collections in Norway organized? : How are collections in Norway organized? Who does what? (Business task and distribution)
County National Insurance offices settle the amount of child support to be paid
There are about 450 of these offices in Norway.
The Maintenance Recovery Center (TI - National Insurance Service Collection Agency) collects the child support and accumulated arrears
Determines the ability to pay and stipulates the monthly amount that is to be collected from the NCP.
Makes the final decision on what measures to be done to collect the outstanding amounts.
Stipulating child support amounts : Stipulating child support amounts The child’s need for economic support is to be divided between both parents economically, and should be as fair as possible.
Regulations should encourage continuing the contact and caring by both parents
Private solutions should be an option when paying the support
Agreements between the parents are to the best for everyone
Consequences
More parents settle the child support payments without state interference
Fewer cases for the state to handle
Less expenses for the state
If the state has to settle a case a fee is required in the national cases
More complicated regulations
Why a centralized unit?-Goals : Why a centralized unit? -Goals The centralized collection office was established in 1992.
Previously, the collections were spread all over Norway.
The objectives in establishing such a unit were the following:
Secure good collection results
Reduce the total child support arrears
Cover the expenses endured by the state.
Fast handling for the receiver
Centralize the collection function at one location
Why a centralized unit?-continued : Why a centralized unit? -continued What goals have been reached – 14 years after establishing the central unit?
We have reached our collection goals
We have established a unit with solid collection knowledge
We have intensified the collection efforts in the Nordic countries
We have developed software for collection and enforcement of child support
We have established routines and procedures for collecting child support
100% of the collected amounts have been forwarded to the receivers within a set time
Tools used to achieve 97%-Voluntary payment : Tools used to achieve 97% -Voluntary payment 40% of the child support paid to us is done so in one of the following manners:
Agreed bank endorsements
Direct deductions
Invoice billing
Tools used to achieve 97%-Coercive means : Tools used to achieve 97% -Coercive means 60% of the cases are collected by one of the following methods:
Automatic deduction from wages, benefits, military income etc.
Deduction from settlements resulting in a larger amount being paid out in the form of benefits from the social welfare system.
Lien on:
Personal property: Home, Cabin, Car, Motorcycles, Airplanes, and Boats etc.
Other: Bank accounts, stocks, bonds and securities
Tax returns
Settlements from inheritance and bankruptcies
Arrests, Notice to the police, surveillance, confiscate passports, prohibit travels abroad
Demand bankruptcy
Routines for billing, second notices and past due accounts : Routines for billing, second notices and past due accounts Every case will be invoiced once a month. This includes child support, and if necessary, debt (if there is any).
No payment – second notice
Still no payment- automatic routines are put into force. This means that the system will use the person’s social security number to check for registered information concerning the payee in the available registers:
Employers registered in Norway
State benefits
Other benefits or payments that is due to the payee.
If the payee is registered in any of these categories, a deduction is put into force.
Cases are checked every month
Further down the line the case will be checked out amongst the following registers:
Motor vehicle
Property
Stocks and bonds
If anything is found here, a [lien] on items belonging to the payee will be put forth
CONCLUSION- HOW TO ACHIEVE 97%? : CONCLUSION- HOW TO ACHIEVE 97%? Centralized unit
One unit will give good effective collection
Knowledge
One unit gathers the knowledge in one area
One unit strengthens and increases the efficiency
Good computer systems
Specially developed programs gives potential to advance the systems down the line
Means
Good means to use in the collection effort -especially in regards to laws and regulations