A bill to allow more dependents to benefit from the Contributory Pension Fund was passed with all-party support yesterday in the Senate.

The Contributory Pension Fund Amendment Act 2008 scrapped the rule stipulating widows must have been married for three years or more when their husband dies to qualify for their husband's pension pay-outs.

If the couple have children, the period for which a widow's allowance is paid will be extended until the youngest child reaches 18 or beyond, rather than 16. Introducing the bill, Attorney General Kim Wilson said this was because many youngsters are in formal education and training programmes well beyond age 18 so the period during which a widow's pension is paid can stretch until the child is 26 if they are in full-time studies.

Government also scrapped rules requiring people to be incapacitated from employment for a whole year before being entitled to receive benefits.

"The existing provision for a 52-week period is punitive and an unnecessary barrier to receiving a much-needed benefit," said Sen. Wilson. She also complained about employers who deducted contributions from their employees' pay cheques but kept the cash.

Government is chasing some 5,541 delinquent employers or self-employed people owing $15 million in pension contributions which are more than three months in arrears.

The fine for breaking the law will also rise from $250 to $1,000 with the Department of Social Insurance being handed more powers to enforce the provisions and improve debt collection.

The Department, which has four inspectors and a compliance officer, is also looking at forming a dedicated debt recovery section.

Opposition Sen. Jeanne Atherden said despite the gravity and scale of the problem, she could not recall a conviction of an employer for withholding pension cash.

She added: "Until you get someone convicted other people will still want to balance money, they will rob Peter to pay Paul."

Sen. Wilson explained the fine would apply to each offence of not paying over contributions which employees had given them. "It could be huge," she said.

Independent Sen. Carol Anne Bassett said employers should be forced to give written confirmation that pension contributions have been paid over.