Pension change will end dependant-limit anomaly

Even regulatory black holes may disappear when citizens complain of unjust practices long enough

Even regulatory black holes may disappear when citizens complain of unjust practices long enough. In May, Family Money highlighted an anomaly in the old-age contributory pension (OACP) adult dependant allowance brought to our attention by Mr and Mrs G, readers from north Dublin.

Mr G had been getting the OACP, which included an allowance for his wife, since July 1996. When his wife's pension from a private employer was increased to £63.14 (€80.17) per week, the Department of Social, Community and Family Affairs discontinued her allowance because it exceeded the £60 weekly limit in force since October 1995.

This meant the couple lost £52.50 per week leaving them with just £78.10 as his wife was not entitled to State pension benefits for another seven years. The matter had been taken up with their TD, Mr Richard Bruton, who was dismayed to discover that "if someone on unemployment benefit has a working wife they can earn up to £90 without affecting the adult dependant allowance".

This concession, called tapering, was introduced to encourage welfare recipients to re-enter the workforce and applied only to unemployment benefit, unemployment assistance, disability benefit, disability allowance, preretirement allowance, injury benefit and unemployment supplement.

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Last week, Mr G wrote to say: "You will be pleased to hear that the Department of Social Welfare has introduced `tapering' and I shall again be in receipt of the OACP allowance for my wife from April."

Mr G may have to wait a bit longer because this concession - which allows a spouse to earn up to £70 per week and still retain the full adult allowance - will not be extended to OACP qualified adult allowances until October 2000.