# Presentation: 175346

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

**Notes:**
Presenter:  Ms. Åse Kristensen, Senior Adviser, National Office for Social Insurance Abroad, Norway 

## Slide 2

**Notes:**
We are quite North, at the top of the world so to speak. 

## Slide 3

**Notes:**
If you look at the map of Norway, you can see where our office is situated in Oslo.

## The Organizational Pattern of the National Insurance Service

**Notes:**
You can see how the collection of Child Support is done. We have to give you an idea of that. The next two [slides] of the presentation show you where we are in the system. We are at the bottom left on this slide. 

National Office for Social Insurance Abroad is what our name was until the first of July this year, so I haven’t changed that yet. I don’t actually know the English name for it. So, we will have to work with that for the moment. That is what it was called. It is the Central Office for foreign matters. 

## 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

**Notes:**
We handle approximately 10 percent of all the child support cases in Norway. Most of the cases, about 1/3, are with Nordic countries. In the United States we have 6 percent of the foreign cases.

## 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

**Notes:**
Here is the Norwegian legislation on Child Support. We have three acts which are very important. They are listed here.  These are the three acts that we are working with every day. 

## 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

**Notes:**
Additional comments:
1.  It is not possible to pay a lump sum in child support. They must pay once a month. 
2.  They may have a signed agreement by both parties and that is enforceable in Norway. We have to take that into consideration.

## 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

**Notes:**
Both parents’ economic situation is taken into consideration -  the number of children, the age, and the ability of the parent to pay.

## 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.

**Notes:**
If a child lives in Norway, returns to Norway, and actually is not living with both parents, the child has the right to receive an advance of the child support payment from the Norwegian State. The State then collects the child support that is ordered and keeps the advance payment that has been made. 
If the child support order exceeds the advance amount, we keep the amount that has been paid in advance and forward the rest to the CP.  If the child support order is less than the advance amount, we keep the whole amount that the NCP pays.  This does, however, not mean that the NCP will be charged for the difference.  The difference will be covered by public means.
There has been means testing since Oct. 1, 2003. 

## 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

**Notes:**
The Maintenance Recovery Center (TI) collects child support for custodial parents and for foreign countries. 

## 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

**Notes:**
This slide lists Norway’s international obligations regarding child support.

## 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%

**Notes:**
This slide presents an historic view of international child support 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

**Notes:**
This slide describes the National Office for Social insurance Abroad (FFU) responsibilities.

## 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

**Notes:**
We are aware of the Continuing Exclusive Jurisdiction (CEJ) regulations – but according to our law we have this jurisdiction. We will, however, advise the parties according to the CEJ.

## 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]

**Notes:**
Being centralized is of great importance and brings great success. Of course we are a small nation, and it is easier for us to centralize than it would be for say, the United States. 
We have manuals for the countries where we have the most cases.  Manuals simplify the work so new case workers can handle foreign cases easily and fast.

## 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.

**Notes:**
We have new assessment rules as of 2003.  

## 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.

**Notes:**
The maintenance cost will increase with the child’s age and is divided into three age groups. 
An 11-year-old child is probably more expensive than a newborn child.  Or maybe not! 

- 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

**Notes:**
Some offices had hardly had a foreign case in years. When one popped up they did not know what to do with it. We established a centralized Collection Center. It showed very good results very quickly.

Since 2005, our collection center (TI) is the transmitting agency for collection of Child Support abroad.

## 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.

**Notes:**
County offices will set the amount, and the Collection Center will collect the child support.

## 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  

- 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

- 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

**Notes:**
Centralization has been done and is very successful. Centralizing collections shows results very quickly.  

## 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

**Notes:**
The Collection Center has informed us that 40 percent of the child support payments are paid voluntarily in one of the 3 ways listed on the slide.   

## 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

**Notes:**
The Collection Center reports that 60% of the cases are collected by the coercive means listed on the slide, for example, automatic withdrawal from the income draft, a lien on purchases, loans, cars, motorcycles, etc. 
The Collection Center can take bank accounts, stocks, bonds and securities, tax returns, and so on. There is almost no limit on what they can do to get the money from those who are reluctantly giving the money. 

## 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

**Notes:**
Every case is invoiced once a month.  That way they will not forget that they have a child support payment to pay. If they do not make the first payment, they will receive a 2nd notice.

## 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

**Notes:**
To make the 97% goal, this is what we do.
We centralize the work. We have good computer systems. We have good means to use in the collection effort, especially in regards to laws and regulations.