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12.
Pensioner without former occupation. ‘Single APW’
‘Retirement’ at ‘usual’ age, here 60 years
The pensioner (here assumed to be a woman) receives minimum pension which is
110,418 ATS in 1997. This income is means tested against other income (in a couple
also against the income of the spouse), so it has the characteristics of social assis-
tance. The minimum pension will not be taxed (tax liability is less than tax credits)
and there are no social contributions. Disposable income is 110,418 ATS, the same
as the gross pension.
The ‘net compensation percentage’ (relative to the APW)is 110,418 / 214,260 × 100
= 51.5.
The ‘decrease’ in disposable income, relative to that of the APW, is 48.5 per cent by
this kind of retirement.
13.
Pensioners with maximum period of former occupation. APW-couple
The two pensioners have the same age, the wife retired in 1992 at the age of 60
years, the husband in 1997 at the age of 65 years.
It is assumed that both spouses have gained pension rights for 40 years each. The
husband is ‘identical’ to the pensioner in case 8, i.e. he has a pension of 212,400
ATS in 1997. The wife retired in 1992. Her pension was then 72 per cent of the ½
APW income in 1991, i.e. 0.72 x 120,879 = 87,033 ATS. This pension is indexed to
1997 level by a factor of 1,121, resulting in a pension of 97,564 ATS.

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The disposable income for the pensioner couple is 309,964 ATS in pension minus
32,092 ATS in personal tax and social contributions, in total 277,872 ATS.
The net compensation percentage is 277,872/335,791 x 100 = 82.8.
The decrease in disposable income compared to the APW-couple is 17.2 per cent.
‘Standard’ income events in connection with children