An Overview of the Norwegian System of Child Support Establishment, Variation and Enforcement Norway – USA conference call July 2006

The Organizational Pattern of the National Insurance Service

Organisation of child-support collection

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 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  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

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  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 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  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  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  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 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  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]

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.

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.

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.

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.

The total child support amount (for all NCP’s children) cannot exceed 25 % of the NCP’s income.

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].

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.

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.

The obligation to pay child support normally ceases from the month following the child’s 18 th 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.

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?  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.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.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.Makes the final decision on what measures to be done to collect the outstanding 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 everyoneAgreements between the parents are to the best for everyone –Consequences More parents settle the child support payments without state interferenceMore parents settle the child support payments without state interference Fewer cases for the state to handleFewer cases for the state to handle Less expenses for the stateLess expenses for the state If the state has to settle a case a fee is required in the national casesIf the state has to settle a case a fee is required in the national cases More complicated regulationsMore complicated regulations

Why a centralized unit? Why a centralized unit? -Goals The centralized collection office was established in –Previously, the collections were spread all over Norway. –The objectives in establishing such a unit were the following: Secure good collection resultsSecure good collection results Reduce the total child support arrearsReduce the total child support arrears Cover the expenses endured by the state.Cover the expenses endured by the state. Fast handling for the receiverFast handling for the receiver Centralize the collection function at one locationCentralize 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 goalsWe have reached our collection goals We have established a unit with solid collection knowledgeWe have established a unit with solid collection knowledge We have intensified the collection efforts in the Nordic countriesWe have intensified the collection efforts in the Nordic countries We have developed software for collection and enforcement of child supportWe have developed software for collection and enforcement of child support We have established routines and procedures for collecting child supportWe have established routines and procedures for collecting child support 100% of the collected amounts have been forwarded to the receivers within a set time100% of the collected amounts have been forwarded to the receivers within a set time

Tools used to achieve 97% Voluntarypayment 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.Personal property: Home, Cabin, Car, Motorcycles, Airplanes, and Boats etc. Other: Bank accounts, stocks, bonds and securitiesOther: Bank accounts, stocks, bonds and securities Tax returnsTax returns Settlements from inheritance and bankruptciesSettlements 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  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.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 forthIf anything is found here, a [lien] on items belonging to the payee will be put forth

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