Pension Seizure Limits 2024: Updated Rules

Understanding Pension Seizure: Protecting Income from Creditors

Pension seizure is a legal tool that allows creditors to withhold a portion of a pension check to recover outstanding debts.
This process initiates a debt repayment plan where money is taken directly from the pension before it reaches the retiree.

Commonly referred to as third-party seizure, this procedure acknowledges the creditor’s right to satisfy their claims by targeting assets not currently in the debtor’s possession but held by a third party, known as the “third-party garnishee.”

Non-Seizable Pensions and Limits in 2024

Notably, not all pensions are subject to seizure.
Only pension benefits can be seized, excluding welfare benefits such as disability pensions, accompaniment allowances, and social security benefits.
However, survivor’s pensions can be seized.

When it comes to pension seizure limits in 2024, a minimum livable amount needs to be safeguarded.
As of January 1, 2024, the non-seizable threshold for a pension is €1,068.82, calculated as twice the social security benefit.

Dealing with Multiple Creditors

In cases with multiple creditors, the seizure limit increases.
When two or more creditors are involved, up to 40% of the excess amount beyond the 1.5 times the social security benefit can be seized.

Seizing Pension from Banking Accounts

Seizure of pension payments credited to the debtor’s bank account before the enforcement date follows a different calculation.
A fifth of the amount exceeding three times the social security benefit, which is €1,603.23 in 2024, can be seized initially.

Seizure by the Revenue Agency

The Revenue Agency can also initiate pension seizure to settle tax debts.
The seizure percentage varies based on the pension amount: 1/10 for up to €2,500, 1/7 for €2,500-€5,000, and 1/5 for over €5,000.

Defense Strategies

Seek legal advice if faced with a potential pension seizure.
Opposing the execution order, with legal counsel, remains the primary defense against seizure attempts.
Beware of dubious strategies that could escalate legal troubles.