Pensioners are among the most vulnerable groups in terms of income. Pension foreclosures can significantly reduce their monthly income, which can lead to financial hardship. This article provides important information on how garnishments are carried out and how they affect pensioners’ income.

When does the Social Insurance Institution start making deductions from my pension?

The Social Insurance Institution shall start making deductions upon receipt of the order of execution or the order for commencement of execution. The social security institution does not itself decide on deductions but fulfils its statutory obligations. The sums withheld shall be remitted to the beneficiary or to the bailiff, including the attachments and the costs of the execution.

Does the Social Insurance Institution inform about the start of the execution of execution deductions?

Yes, the insurance company will send a written notice to the pensioner with the date of the first reduced pension payment and inform the pensioner of the amount of the deduction.

Which claims are priority claims?

Priority claims include:

• Alimony
• Compensation for damage to health
• Compensation for damages from intentional offences
• Taxes, fees, duties and health and social insurance premiums
• Overpayments of social insurance benefits and other

How long are garnishments made from a pension?

Deductions shall be made until the claim and its accessories have been paid in full or until the execution has been suspended for any other reason.

Is the amount of precipitation the same all the time?

No, the amount of the deduction is recalculated as of January 1 of each year. The changes are related to the indexation of pensions.

How is the pension deduction calculated?

The so-called basic amount, which may not be withheld, is deducted from the pension and the remainder is divided into three thirds. The first third is applied to all claims, the second third to priority claims and the third third is added to the basic amount.

What is the basic amount?

The basic amount is the amount that must be paid to the pensioner and may not be withheld. For 2022, the basic amount is €328.18 per month. For each additional dependent, it is €164.09.

Examples of calculation of deductions:

1. Unsecured claim:

1. • Invalidity pension 505,10 euros, the debtor supports his wife.
   • Basic amount: 492.27 euros. Deduction: €4.27. Pension paid: EUR 500,83.

2. Priority claim:

1. • Invalidity pension 515,20 euros, the debtor supports his wife.
   • Basic amount: 351.63 euros. Deduction: 109,04 euros. Pension paid: EUR 406,16.

3. Child support for a minor child:

1. • Retirement pension 273,60 euros.
   • Basic amount: 98,45 euros. Deduction: 116,76 euros. Pension paid: EUR 156,84.

What is the basic amount if the pensioner is in a social services institution?

The amount needed to pay for a stay in a social services establishment and the amount of pocket money are not subject to deduction.

How to avoid foreclosure?

Before starting enforcement proceedings, try to agree with the creditor on a repayment schedule or a deferment of payments.

Can the Social Insurance Institution recover debts?

Yes, the Social Insurance Institution can recover debts through deductions from wages or benefits, by attaching the debt to a bank account and in other ways. It is important to remember that being informed about your rights and options can help minimize the negative impact of garnishments. For further advice and assistance, please do not hesitate to contact the Social Insurance Office on their freephone number 0800 123 123, via the Enquiry Form on their website, or in person at their branches.