WILL MARRIAGE BAR PENSION PENALTY EVER BE REMOVED?
Q
My wife lost out on pension entitlements because she had to give up work under the ‘marriage bar’ in the 1970s. Given the fuss about this issue, will something be done about it in the future?
A
In the aftermath of the Budget, Paschal Donohoe condemned the marriage bar – which prevented women in the civil service from working after they married – as ‘bonkers’. But while expressing sympathy to those affected by the bar, which ended in 1973, the Finance Minister wriggled out of giving a commitment to compensate affected women.
The issue is being studied in a review of women’s pay and access to pensions, which is due to make recommendations this year – although these are not due for implementation until 2020. A key issue being examined is the 2012 ruling that we need an onerous 48week-a-year average of PRSI contributions over our working lives if we’re to qualify for a full pension. This not only penalises women who gave up work but anyone who had even a part-time job when they were young. Any gaps in PRSI coverage thereafter could cost you dearly.
Q
We are a family of four now that our second child has come along. Our total income is just €30,000 a year. Do we qualify for Family Income Supplement (FIS) now it has been increased?
A
Yes, you should. Here are the new limits for FIS, which is now known as the Working Family Payment. The weekly limits have been increased by a tenner for families with one to three children.
Q
My only income is a contributory pension and a small private one. How much will the Christmas bonus be for me? Will it include the fiver increase and when will it be paid?
A
You’ll get 85% of your current State pension of €238.30 (presuming it’s a full one). That’s €202.55, which will be paid in December. The fiver increase will apply next March 26, bringing your total pension to €243.30.
Q
I have a full-time job in a shop for which I earned the princely sum of €18,500 last year. Will the increase in the minimum wage take me into a higher USC band?
A
The lowest rate of Universal Social Charge is being cut from 2.5% to 2%. The ceiling for this is also being increased from €18,772 to €19,373. This was done to ensure that workers on the new minimum wage of €9.55 an hour (from January) do not pay higher rates if they work up to 39 hours a week.
Q
Do I have to be eligible for the living alone allowance to get the €2.50 a week telephone allowance announced in the Budget?
A
Yes, the telephone support allowance will benefit over 124,000 peole who receive the living alone allowance and are eligible for the fuel allowance. The fuel allowance has also been extended to 27 weeks into the first week of April next.
Q
Our joint income as two pensioners is €55,000. Do we still qualify for USC relief on our pensions?
A
The USC relief for medical card holders is being extended for a further two years. Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum USC rate of 2%.