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10.
Wife disability pensioner. APW couple
It is assumed that the wife in the APW couple becomes a disability pensioner while
the husband continues to work (APW income level). The wife has a formel working
record earning ½ APW income. She is eligible for Incapacity Benefit. She will
receive 62.45 GBP/week plus the age supplement of 6.60 GBP/week (assumed age
is 35 years), in total 69.05 GBP/week or 3,591 GBP a year.
The gross compensation percentage for the wife is 3,591 / 8,350 x 100 = 43.0. The
disposable income of the couple will be 3,591 GBP for the wife and 12,775 GBP for
the husband, in total 16,366 GBP.
The decrease in disposable income compared to the situation without diability is
19,681 - 16,366 = 3,315 GBP or 16.8 per cent.
11.
Pensioner with maximum period of former occupation. Single APW
Retirement at ’usual’ age, here 65 years
The public pension consists of 3 components:
a) A ’flat rate’ pension of 62.45 GBP a week.
b) A ’graduated pension’, based upon a savings arrangement in existence from 1961
to 1975. The pension for a typical worker in manufacturing was 5.56 GBP a
week in April 1997. (Information from the Department of Social Security).
c) A SERPS pension introduced in 1978. According to estimates from the Depart-
ment of Social Security, SERPS for the APW was 62.23 GBP a week, in 1997.
The pension after the maximum period of former occupation is: (Serps and graduated
pensions are estimates)
Week
Year
GBP
GBP
Flat rate
62.45
3,247.40
Graduated pension
5.56
289.12
Serps pension
62.23
3,235.96
Total
130.24
6,772.48
The disposable income for the APW-pensioner is 6,462 GBP.
The net compensation percentage is 6,462 / 12,500 x 100 = 51.7.
The decrease in disposable income is 48.3 per cent by retirement.