Qualification and assessment of Pension Bonus Bereavement Payment 065-07030050

Item

Description

1

Marital status not changed

If a customer's marital status does not change during the period:

• PBBP = annual notional Age pension rate x 0.094 x number of years deferred x number of years deferred

2

Marital status changed

If a customer's marital status changed during the period:

• PBBP = 0.094 x number of years deferred x (annual notional single Age pension rate x number of single years + annual notional member of a couple Age pension rate x number of years as a member of a couple)

Note: in calculating the notional Age pension rate, the income test excludes PBBP employment income received by the couple at the time the Pension Bonus Scheme (PBS) member died.

Scenario

Description

1

Hans - registered accruing member of the PBS who works 960 hours per annum

Hans has been a registered member of the PBS since 1 April 2006. Hans works 20 hours per week and has 4 weeks recreation leave each year. Hans' partner Shae, is under age Pension age and also in paid employment.

Hans accrued one full bonus year (1 April 2006 - 31 March 2007).

Between 1 April 2007 and 1 March 2008 Hans worked 960 hours. Hans intended to be on recreation leave from 2 March 2008 until 10 April 2008 and then return to work.

On 5 April 2008 Hans passed away.

In calculating the notional Age Pension rate and Pension Bonus amount for Hans, the recreation leave payment will be disregarded. Shae's PBBP employment income will also be disregarded.

Two Pension Bonus years will be paid because Hans had met the work test for 2 years and had deferred claiming Age Pension for 2 years.

2

Marc - registered accruing member of the PBS who works 960 hours per annum

Marc has been a registered member of the PBS since 1 July 2005. Marc works 960 hours per annum.

After accruing 3.5 bonus years, Marc dies.

Marc's partner Helen has 26 weeks from Marc's date of death to claim PBBP. If qualified and payable, Helen will be paid for 3.5 bonus years.

Like Pension Bonus, the amount of PBBP payable is based on the number of bonus years accrued, the pension multiple and the notional rate of Age Pension if it had been granted.

For PBBP purposes the notional rate of Age Pension is the amount that would have been paid under the joint income and assets test but the PBBP employment income is exempt. The date of the notional assessment assumes that a claim for Age Pension had been made immediately before the member died. The member of a couple rate calculator is used.

Note: Helen does not work but is a member of the PBS and has accrued bonus periods based on Marc's work. Helen may also be entitled to a Pension Bonus Payment (PBP).

3

Aaron - a registered accruing member of the PBS who works 960 hours per annum

Aaron has been a registered member of the PBS since 1 January 2006. Aaron works 1680 hours per annum.

After being an accruing member of the scheme for 2 years and 30 weeks Aaron passes away.

Aaron's partner, Eliza, is also a member of the PBS and meets the work test requirements.

Eliza, has 26 weeks from Aaron's death to claim PBBP.

If qualified and payable, Eliza will be paid for a 2 years and 30 weeks bonus period.

Like Pension Bonus, the amount of PBBP payable is based on the number of bonus years accrued, the pension multiple and the notional rate of Age Pension if it had been granted.

For PBBP purposes a notional rate of Age Pension is the amount that would have been paid under the joint income and assets test but excluding PBBP employment income for both members of the couple. The date of the notional assessment assumes that a claim for Age Pension had been made immediately before the member died. The member of a couple rate calculator is used.