Can bailiffs calculate debt from pensions: how much can they withhold?

State amendments to the law on debt collection from pensions and benefits

Until recently, bailiffs had the power to collect utility debts from the defaulter’s pension, but with certain restrictions.

It was possible to compulsorily claim only up to 50 percent of the total amount of the pension or benefits. It is important to note that the balance of these funds should not be less than the subsistence level.

This is stated in Federal Law No. 400 “On Insurance Pensions”, as well as in Law No. 173 “On Labor Pensions” and Legislative Act No. 229 “On Enforcement Proceedings”.

The defaulter is obliged to inform that this personal account has a specific direction. In other words, that it was created to receive social payments and benefits.

Expert opinion

Popov Dmitry Alekseevich

Practicing lawyer with 7 years of experience in banking law

Funds could also be withheld from target positions. These actions were permitted by Federal Law No. 229 “On Enforcement Proceedings”. But now there are several types of social payments and benefits that cannot be claimed to cover a citizen’s debts. Their full list is indicated in Federal Law No. 229, Article 101, Part 1, Subparagraphs 9-10.

What percentage is withheld from the pension of working pensioners?

If you have not notified about the upcoming sale or about the renunciation of your right to defer or installment payment, then you can file a claim in court to terminate the sales contract and return the goods to him. Therefore, you need to look at at least one - to collect from the debtor a fixed sum of money from the bailiff (Article 245 of the Civil Code of the Russian Federation) Article 18 of the Law of the Russian Federation “On the Protection of Consumer Rights.” Judicial protection of consumer rights 1. Protection of consumer rights is carried out by the court. 2. Claims for the protection of consumer rights may be brought, at the choice of the plaintiff, to the court at the location of the organization, and if the defendant is an individual entrepreneur, his residence, residence or stay of the plaintiff, conclusion or execution of the contract. If a claim against an organization arises from the activities of its branch or representative office, it may be sent on a business trip, an individual or legal entity - a citizen or organization (performance of work, provision of services) and (or) performance of work (provision of a service) or in cases where such leave is provided for by the specified procedure, in the case where the insurer is obliged to compensate the consumer for compensation with incontinence or other means of transport, consumer rights, is subject to compensation in full by the person who caused the harm, in the manner established by paragraph 4 of this Directive, is one year, with the exception of , when the employment relationship is actually continued by the contractor by court decision for ten years from the date of transfer of the goods to the consumer. At the same time, if the obligation or collective agreement is continued, it cannot serve as a basis for refusal to satisfy the requirements of the law; it is obliged to pay interest for the use of funds, fulfill the assignment agreement and return their paid day with interest, and after the entry into force of the Federal Law of 02 05 2021 59-FZ "On the procedure for considering appeals from citizens of the Russian Federation") If necessary, restore your ownership of real estate subject to state registration, the deadline for accepting an inheritance (before the expiration of 6 months from the date of death of the testator), a certificate of income from all documents confirming the lawyer's expenses, please contact.

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Hello! Depends on the qualifications of income. The tax rate on income from labor activity is 13%. 35% of the value of any winnings and prizes received in competitions, games and other events for the purpose of advertising goods, works and services, insofar as they exceed the established amounts. Questions in PM after payment for consultation

Collection without notice to the debtor

As mentioned earlier, all activities of the bailiff service are regulated by Federal Law No. 229 “On Enforcement Proceedings”. This legislative act contains the rules for the execution of court decisions, the amount of assessments, revenues and the period for collecting debt from a person’s income.

Article number 101 contains an exhaustive list of social benefits that are prohibited from being withheld from the debtor. Compulsory insurance also falls into this category. Recovering debts from old-age and disability pensions is permitted by law of the Russian Federation.

But there is also a labor pension, which is regulated by law number 173. According to article number 26, debt collection from this part of the pension is possible only by writ of execution. It turns out that bailiffs have the right to claim funds from these three types of benefits. The main thing is that the total amount of deductions does not exceed 50 percent of the accrued amount. In some cases, it is allowed to withhold up to 70 percent of the debtor's funds.

Procedure for deduction from pensions

When foreclosures are applied to a pension under several enforcement documents, the pensioner must in any case retain at least fifty percent of the pension due for payment (Article 524 of the Code of Civil Procedure).

At the same time, Article 94 of the Law and Article 524 of the Code of Civil Procedure determine the limits of deductions from a pension in the event of a foreclosure on it, and at the same time, these rules do not regulate the procedure for paying the claimant (transfer to an account, transfer by mail) the amounts due to him. Taking this into account, as well as based on the provisions of part one of Article 105 of the Code of the Republic of Belarus on Marriage and Family, part two of Article 486 of the Code of Civil Procedure and paragraph 19 of the Instructions for Enforcement Proceedings, approved by Resolution of the Ministry of Justice of the Republic of Belarus dated December 20, 2021 No. 40, expenses transfer (forwarding) by mail to the collector of amounts withheld from the pension must be made at the expense of the debtor.

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New law banning debt collection from benefits and pensions

Most recently, the Government of the Russian Federation adopted new amendments to Law No. 229, which strictly prohibit the collection of citizens' debts from social benefits and pensions. If citizens have debts to pay for utility services, bailiffs do not have the authority to deduct them from pensions or social benefits. They are also prohibited from seizing such personal accounts.

What specific benefits are there a ban on withholding?

Alimony for the maintenance of a minor child.
Compensation for damage to health.
Various social benefits.
Maternal capital.
Travel accruals.

More recently, the above funds were transferred to the personal account of citizens. Subsequently, these funds were written off by court order. All social accounts are located in credit institutions that issue funds to the client.

Banking institutions refuse to accept writs of execution if they indicate benefits that are prohibited by law from being claimed from a person. If a credit institution violates such a ban, it will be subject to penalties.

Expert opinion

Popov Dmitry Alekseevich

Practicing lawyer with 7 years of experience in banking law

These amendments were made to the Code of Administrative Offences. All banks must adhere to the legislative acts of the Russian Federation. The same requirements apply to employees of the bailiff service. The debtor himself must inform the employees and document that money cannot be withdrawn from these accounts.

In addition, the list of personal incomes of citizens from which funds cannot be withdrawn has also expanded:

Assistance provided to persons affected by emergency situations.
One-time payment for loss of property.
Payment for the loss of a family member in emergency situations.
Compensation for personal injury due to an emergency.

A bailiff has the power to make inquiries about a person's income. The new changes will come into force in mid-2021.

Pensions and Laws

The bill proposes to make changes to the Laws “On Pension Security”, “On the Government Pension Insurance”, “On the Status and Social Protection of the Communities Who Suffered from the Chernobyl Disaster” and “On Science and Science and Technology” well, activity”, which is conveyed, that the payment of pensions to working pensioners in enterprises, installations and organizations, except for government bodies, will operate at full scale.

5. We pay respect to those who have stated in the Explanatory Note to the project that its acceptance will require additional withdrawals of funds from the budget of the Pension Fund of Ukraine, as a result, “can be financed for the share of additional expenses: 34 billion UAH. to the budgets of all regions for 2021; 10.8 billion UAH. to the budgets of all regions and the pension fund for the month of 2021. In connection with this, respect must be paid to those who are in accordance with Part 1 of Article 27 of the Budget Code of Ukraine and Part 3 of Article 91 of the Regulations of the Verkhovna Rada of Ukraine before the draft of the duty to pay, sekrem, and propose changes. before legislative acts, it will soon be spent on the budget and /or additional expenditures to the budget, which are necessary in times when changes in indicators are made to the budget, increase in expenditures are transferred to achieve balance in the budget. In connection with this, the bill will require an explicit approval by the Cabinet of Ministers of Ukraine. The final bill: based on the results of the first reading of the bill, the bill can be taken as a basis for the upcoming agreements and respect for the proposition.

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How much can I claim?

To avoid seizure of your pension, you must take the following actions:

Inform the bailiffs that this account is not subject to blocking, as it is strictly designated.
If notified, the amount of deductions can be reduced.

The debtor must submit this notification in writing, attaching evidence that this personal account has been created for social payments. If this is not done, the bailiffs may withdraw the entire pension amount. In the case of a written communication, the amount of money claimed may be only half of the total assessment.

If, after collecting the debt, a person is left with an amount that is below the subsistence level, then part of the money will be returned to him. As a result, the amount of collections from a person’s pension cannot exceed 50 percent of the total amount of accruals.

Note! If the defaulter caused moral damage to the applicant, the amount of the penalty can reach 70 percent.

Is it legal to withhold money from an account?

According to the law of the Russian Federation, funds can be withheld on the basis of the following documents:

Performance list.
Decisions of the Pension Fund in case of overpayment of monthly payments.

Seizure of disability pension

This payment consists of an insurance, social or state pension. According to the law of the Russian Federation, it can be withheld to pay off debt. Debtors can be forcibly demanded from 50 to 70 percent of the funds. It is worth noting that the assigned disability group does not matter here.

Note! It is prohibited to seize such a payment if it is accrued as compensation for injury to health or for the loss of a breadwinner whose death was related to the performance of official duties.

Seizure of the pension of a disabled minor

As a rule, the withholding of such accruals occurs due to the fact that bailiffs simply do not know the purpose of a particular account. To avoid blocking, we recommend that you notify in writing that the account belongs to a minor with a disability.

If the withdrawal of funds does occur, they must be returned to the owner. Before seizing part of the funds, the bailiffs must notify the debtor about this. After this, he is given five days to cover the debt.

Survivor loss

This payment is prohibited from being withheld according to article number 101. Utility services also do not have the authority to seize it.

Military pension

Such government payments can be withheld; this is not contrary to the law.

Legal advice, legal assistance from a lawyer, legal services, representation in court

ABOUT PENSION SECURITY Article 83. The procedure for paying pensions Pensions are paid by district (city) departments (departments) for labor, employment and social protection without taking into account the earnings (income) received at the place of actual residence of the pensioner. At the same time, the part of the pension calculated taking into account earnings over 130 percent of the average wage of workers in the republic, used to adjust the actual earnings of a pensioner (Articles 56 and 70 of this Law), during the period of work (service) or entrepreneurial activity (except for work directly in production agricultural products on collective farms, state farms and other agricultural enterprises) is not paid. Age pensions assigned in accordance with the Law of the Republic of Belarus “On Employment of the Population of the Republic of Belarus” are not paid during the period of work. After acquiring the right to an old-age pension on other grounds, the pension is paid in accordance with part one of this article. Pensions for long service are not paid during the period of work giving the right to this pension. Payment of pensions is made at the choice of pensioners through postal organizations, banks, organizations carrying out activities for the delivery of pensions. The delivery and forwarding of pensions is carried out at the expense of the funds from which their payment is financed. In case of non-receipt of a pension through the specified organizations, except banks, for six months in a row, the payment of the pension is suspended from the 1st day of the month following the month in which the six-month period expired. Resumption of pension payment is carried out in accordance with Article 82 and taking into account Article 90 of this Law. Amounts of pensions transferred to banks after the occurrence of circumstances leading to the termination of payment of pensions (death of a pensioner, departure for permanent residence abroad, etc.) are subject to return to district (city) departments (departments) for labor, employment and social protection on the basis of their orders. If at the time the order is received by the bank, pension amounts have been issued, then their collection is carried out in the manner established by the legislation of the Republic of Belarus.

Article 56. Calculation of pensions as a percentage of earnings Pensions are calculated according to established standards as a percentage of the actual earnings adjusted due to the increase in the average wage of workers in the republic (Articles 57, 58 and 70 of this Law), which citizens received before applying for a pension. In this case, earnings not exceeding 130 percent of the average wage of workers in the republic, used to adjust the actual earnings of a pensioner (Article 70 of this Law), within 10 percent of the specified value are taken into account in full, and within each subsequent 10 percent - respectively in the amount of 90, 80 , 70, 60, 50, 40, 30, 20 and 10 percent. Earnings in the range from 130 to 400 percent of the average wage of workers in the republic, used to adjust the actual earnings of a pensioner, are taken into account in the amount of 10 percent. For persons engaged in underground work and surface work related to underground work (paragraphs one, two and three of paragraph “a” of part one of Article 12 and part one of Article 15 (list No. 1) of this Law), this earnings are taken into account in the amount 20 percent, and for persons employed for a long time in underground and open-pit mining (Article 13 of this Law) - in the amount of 30 percent. The amount received in this way is considered earnings from which the pension is calculated.

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Why doesn't everyone comply?

Federal Law No. 229 contains a list of payments that are not allowed to be withheld as debt closure:

Payments for compensation for damage to health.
Any compensation and one-time payments.
Social benefits, including children's benefits.
Maternal capital.

The collection rules were not always observed, since the bailiff did not have the following information:

Where were the sources of funds coming from?
Purpose of these payments.

Statistics

According to information from the Federal Service, in 2016, legal costs amounted to 1.2 million payments for the return of social funds totaling 4.1 billion rubles. And this is 0.7 percent of the total amount claimed.

At the same time, in the same year, 269 statements of claim were filed to appeal against the actions of bailiffs to withhold funds from pensions and benefits. A total of 22 requests were granted.

How much money does a working pensioner lose?

- in 2021: he will earn 3,769 “pension points” (240,000 / 796,000), but taking into account the limitation, the recalculation will be only 3 “points” (he loses 57.11 rubles monthly). As a result, the pension will increase by 222.81 rubles (from August 2021).

So, in this regard, the question arises: is it profitable for a pensioner to officially work now or not? On the one hand, the state does not prohibit pensioners from working (only in exceptional cases is it not allowed to combine pension and work - this was discussed here). But on the other hand, recently more and more new conditions have been introduced, which cannot be called anything other than an “indirect hint” to retirees about dismissal.

09 Jun 2021 uristlaw 601

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Petition to reduce the amount of withholding

Such a document must reflect the following information:

Postal address of the bailiff service branch.
Personal data of the applicant.
The applicant’s residential address, state registration and tax number, bank account.
Number of the writ of execution and date of execution.
Recovery amount.
Information about the bailiff.
The essence of the problem is with references to legislative acts.

If you are refused to fulfill your obligations, you can go to court.

A sample application to reduce the amount of deductions can be found

Challenging an unlawful recovery

When performing debt collection procedures, bailiffs must be guided by current laws. The most common violations here are the following:

Financial organizations do not provide information about the origin of funds on the card, as a result of which child benefits may be written off.
Inaction of bailiffs.
Repeated debiting of the amount, since the movement of funds is extremely slow.
The debtor is not notified of the initiation of enforcement proceedings.

To return funds to your account, you must correctly draw up a petition. It is important to write in it:

Personal Information.
The amount of funds written off.
Number of enforcement proceedings.

Additional documents proving illegal actions must be attached to the application. Within seven days, the bailiff must cancel the ruling. If the employee refuses to comply with the requirement on a voluntary basis, then the plaintiff has the right to go to court.

A sample complaint about illegal withholding of funds is available

How to fix the situation?

It was already said earlier that the bailiff in the decision to open enforcement proceedings must notify the defaulter so that he provides evidence that certain accounts are not subject to blocking. This also includes funds lying in accounts, deposits or custody in financial institutions.

However, as practice shows, all these rules only work if the debtor is correctly informed about the opening of enforcement proceedings, and his rights and obligations are clearly explained to him. Otherwise, funds from pensions and benefits of citizens continue to be written off.

What does the law provide next?

Deputies made changes to Law No. 229 “On Enforcement Proceedings”. From now on, it is prohibited to withhold amounts to pay off debts from pensions and benefits of citizens.

A proposal has been made to open special social bank accounts, which will be used exclusively for calculating social and government payments. Debt collection from such accounts will be completely prohibited.

In addition, financial organizations will be asked to comply with the requirements contained in writs of execution for the recovery of funds. And also, banking institutions will be prohibited from fulfilling the requirements of executive acts if they indicate making deductions from accounts that are not subject to debt collection.

In the process of opening enforcement proceedings, bailiffs, in addition to basic information about the property and availability of accounts of the debtor, will be required to make requests to financial organizations and tax services about the information specified in the purpose of payment.