Adult Dependant means test for Contributory Pension

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Rua Alp

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I am due to receive my OAP at 66 in May 2018. I submitted the application form to Sligo in Dec 2017. I also claimed for an Adult Dependant. My wife does not have an income and does not qualify for an OAP in her own right. I have 2 Deposit accounts in Joint Names and these were declared with supporting Bank Statements. In total they do not exceed the Means Test threshold of 57,000. At the bottom of the application we selected direct payments to our Current account. This is a Joint Current account.

4 weeks later I received confirmation from Sligo of my full entitlement for my Contributory OAP but they deferred the approval of the Adult Dependant by requiring Bank Statements on the Joint Current account within 21 day or the application would be withdrawn. I gathered the Statements together and forwarded these to them the next day. That was 6 weeks ago.

I am currently in receipt of 2 occupational pensions, since age 65 and they provide a combined annual income of 26,000. They are both paid into the Joint Current account, monthly. As I do not currently exceed the Revenue threshold of 36,000, no income tax is payable but USC is deducted on both pensions.

As the weeks go by waiting for a response from Sligo, my mind wrestles with unpleasant thoughts of my occupational pensions being taken as joint income because they are paid into our Joint account. My local Citizen Information centre was unsure how this would affect the Means Test assessment and suggested that I set up a Single bank account in my name only to receive future income from my occupational pensions.

Has anybody experience of this.
 
We are constantly advised to have all our accounts in joint names but it seems that if you do this it can cause problems such as the case above. Are we to put all our funds in a sole name until you get approved for a pension and then change them back in to joint names?
 
Yes, having funds in Joint accounts is a disadvantage for the Means Test of the Dependants income in this process. When the funds are generated by the Claimant it is better to have these in the Claimants account only but if the funds are generated by the Dependant it is better to have them in Joint account.

My concern was highlighted by an old post on AAM where in a 2011 application the Dependants increase was refused because money transferred into a Joint account by the Claimant was taken a partial income for the benefit of the Dependant. https://www.askaboutmoney.com/threads/qualified-adult-dependant-claim.162591/
 
As luck would have it, I received a reply from Sligo this morning. When I sent them my Current account statements 6 weeks ago I asked that they give me a call on my mobile if they had any further queries. But they did not do this. They prefer the long drawn out method .Having scrutinised all the transactions of my household account, they require that I supply them with “documentation I.e Bank Statements to confirm the origin and purpose “ of 3 items, namely;-

1). A money transfer lodgement of 3,500. This was a loan I gave to someone who had a cash flow problem and they repaid me by a Banking 365 transfer. I can’t ask this person for their Bank statement showing this transaction leaving their account so will just have bluff my way on this.

2). A direct debit to my Credit Union of 200 a month. This is a car loan. My CU account is in my name only. They must think they have found a Joint CU account that was not declared.

3). ATM lodgement of 4,850. This was an accumulation of cash from withdrawals in the deposit accounts which they already have statements.

Just goes to show you the level of scrutinory.
 
While preparing my reply this evening, I noticed that the letter received today (20/02/18) is dated 09/02/18. Letter was issued by a different person and different team to the previous correspondence.
 
Finally received confirmation of full Adult Dependence increase today.
My monthly income into the Joint Current Account from Occupational Pensions was not taken into account .but strangely 50% f the balance on that account was included .
 
Incidentally. If a person has funds in Savings Certs/Savings Bonds are these required to be declared when applying for non contributory means test?
 
All assets must be disclosed, other than the family home. The clue in the phrase “means tested”.
 
Just to remind all that the income, interests or savings in the applicants own name are not taken into account when applying for pension. The situation changes when a dependent is added and the means test is applied to the dependent only.

Any interest, savings or property in her sole name is means tested plus half of any means etc held jointly.
Perhaps those heading towards pension should take a look at how assets are distributed
 
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