An Overview of the NorwegianAn Overview of the Norwegian System of Child Support Establishment, System of Child Support Establishment,

Variation and EnforcementVariation and Enforcement

Norway – USA conference callNorway – USA conference callJuly 2006July 2006

The Organizational Pattern of the National Insurance Service

N atio n al In su rance C o urt o f A pp eal

National O ffice forSocial Insurance

Abroad

National InsuranceService Agency for the

Recovery of M aintenancePaym ent

The M in istry o f C hildrenand Fam ily Affairs

N ation a l In suran ce O ffices

C ounty N ational Insurance O ffices

The N ational Insurance Adm inistrationD irector G eneral

The M in istryof Social Affa irs

The M in istryof H ealth

Organisation of child-support collectionOrganisation of child-support collection

National Insurance Agency for theRecovery of Maintenance Paym ent

(104 em ployees)

466 National Insurance Offices(4820 em ployees)

19 County Offices19 Technical A id Centers

National Office for Social Insurance Abroad(1465 em ployees)

National Insurance Adm inistration(470 em ployees)

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 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. 

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)Who does what? (Business task and distribution)– County National Insurance officesCounty National Insurance offices settle the amount of settle the amount of

child support to be paidchild 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 The Maintenance Recovery Center (TI - National Insurance (TI - National Insurance

Service Collection Agency)Service Collection Agency) collects the child support and collects the child support and accumulated arrears accumulated arrears

• Determines the ability to pay and stipulates the Determines the ability to pay and stipulates the monthly amount that is to be collected from the monthly amount that is to be collected from the NCP.NCP.

• Makes the final decision on what measures to be Makes the final decision on what measures to be done to collect the outstanding amounts.done to collect the outstanding amounts.

Stipulating child support amountsStipulating child support amounts

– The child’s need for economic support is to be divided between The child’s need for economic support is to be divided between bothboth parents economically, and should be as fair as possible.parents economically, and should be as fair as possible.

– Regulations should encourage continuing the contact and Regulations should encourage continuing the contact and caring by both parentscaring by both parents

– Private solutions should be an option when paying the supportPrivate solutions should be an option when paying the support• Agreements between the parents are to the best for Agreements between the parents are to the best for

everyoneeveryone– ConsequencesConsequences

• More parents settle the child support payments without More parents settle the child support payments without state interferencestate 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 If the state has to settle a case a fee is required in the

national casesnational cases• More complicated regulationsMore complicated regulations

Why a centralized unit?Why a centralized unit?-Goals

The centralized collection office was established in The centralized collection office was established in 1992. 1992. – Previously, the collections were spread all Previously, the collections were spread all

over Norway.over Norway.– The objectives in establishing such a unit The objectives in establishing such a unit

were the following: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 Centralize the collection function at one

locationlocation

Why a centralized unit?Why a centralized unit?-continuedcontinued

What goals have been reached – 14 years after What goals have been reached – 14 years after establishing the central unit?establishing the central unit?

• We have reached our collection goals We have reached our collection goals • We have established a unit with solid collection We have established a unit with solid collection

knowledge knowledge • We have intensified the collection efforts in the We have intensified the collection efforts in the

Nordic countriesNordic countries• We have developed software for collection and We have developed software for collection and

enforcement of child supportenforcement of child support• We have established routines and procedures for We have established routines and procedures for

collecting child support collecting child support • 100% of the collected amounts have been 100% of the collected amounts have been

forwarded to the receivers within a set timeforwarded to the receivers within a set time

Tools used to achieve 97%Tools used to achieve 97%-VoluntaryVoluntary paymentpayment

40% of the child support paid to us is done 40% of the child support paid to us is done so in one of the following manners:so in one of the following manners:– Agreed bank endorsementsAgreed bank endorsements– Direct deductionsDirect deductions– Invoice billingInvoice billing

Tools used to achieve 97%Tools used to achieve 97%-Coercive meansCoercive means

60% of the cases are collected by one of the following methods:60% of the cases are collected by one of the following methods:

  – Automatic deduction from wages, benefits, military income etc.Automatic deduction from wages, benefits, military income etc.– Deduction from settlements resulting in a larger amount being paid Deduction from settlements resulting in a larger amount being paid

out in the form of benefits from the social welfare system.out in the form of benefits from the social welfare system.– Lien on:Lien on:

• Personal property: Home, Cabin, Car, Motorcycles, Airplanes, and Personal property: Home, Cabin, Car, Motorcycles, Airplanes, and Boats etc.Boats etc.

• Other: Bank accounts, stocks, bonds and securities Other: 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, Arrests, Notice to the police, surveillance, confiscate passports, prohibit travels abroadprohibit travels abroad

– Demand bankruptcyDemand bankruptcy

Routines for billing, second notices and Routines for billing, second notices and past due accountspast due accounts

Every case will be invoiced once a month. This includes child support, and if Every case will be invoiced once a month. This includes child support, and if necessary, debt (if there is any).necessary, debt (if there is any).

– No payment – second noticeNo payment – second notice Still no payment- automatic routines are put into force. This means that the 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 system will use the person’s social security number to check for registered information concerning the payee in the available registers:information concerning the payee in the available registers:

– Employers registered in NorwayEmployers registered in Norway– State benefitsState benefits– Other benefits or payments that is due to the payee. Other benefits or payments that is due to the payee.

• If the payee is registered in any of these categories, a deduction is put If the payee is registered in any of these categories, a deduction is put into force.into force.

Cases are checked every monthCases are checked every month Further down the line the case will be checked out amongst the following Further down the line the case will be checked out amongst the following

registers:registers:– Motor vehicle Motor vehicle – PropertyProperty– Stocks and bondsStocks and bonds

• If anything is found here, a [lien] on items belonging to the payee will If anything is found here, a [lien] on items belonging to the payee will be put forthbe put forth

CONCLUSION- HOW TO ACHIEVE 97%?CONCLUSION- HOW TO ACHIEVE 97%?

Centralized unitCentralized unit– One unit will give good effective collectionOne unit will give good effective collection

KnowledgeKnowledge– One unit gathers the knowledge in one areaOne unit gathers the knowledge in one area– One unit strengthens and increases the efficiencyOne unit strengthens and increases the efficiency

Good computer systemsGood computer systems– Specially developed programs gives potential to Specially developed programs gives potential to

advance the systems down the lineadvance the systems down the line MeansMeans

– Good means to use in the collection effort -especially Good means to use in the collection effort -especially in regards to laws and regulations in regards to laws and regulations