Initial contact to claim Pension Bonus Payment (PBP) 065-01010030

The Pension Bonus Scheme closed to new registrations from 1 July 2014.

However, existing members may remain in the scheme and claim their bonus in due course, in line with existing arrangements.

A person can only claim the bonus if they registered in the scheme before 1 July 2014 and has not received an income support payment (except Carer Payment or Carer Service Pension) since first qualifying for Age Pension. Once registered, they must be an accruing member who meets the work test requirements, or a non-accruing member. A minimum period of 1 year must be accrued up to a maximum of 5 years to claim the PBP. A person can work for more than 5 years and remain a member of PBS as long as they continue to meet the work test (or be non-accruing).

PBP will be calculated on the last 5 full bonus years accrued. Work after age 75 years (age 70 years under the Department of Veterans' Affairs scheme) cannot contribute to the PBP. A post-75 member of the scheme must continue to meet the work test or be in a non-accruing period. Only accruing membership can be counted toward a member’s bonus. Note: a post-75 PBS member in a disposal preclusion period must meet the work test. Periods of deferment prior to 1 July 1998 do not count.

When PBS members no longer meet the criteria to be considered accruing or non-accruing, their claim period begins.

The claim period is generally 13 weeks from when the member ceases to be accruing or non-accruing, although there can be an exception when the last bonus period is a part year period. Since 1 January 2008, there is a new provision to accept late claims for PBP made after 13 weeks if special circumstances exist, for example due to their illness or a family member's illness.

A registered member of the PBS must claim PBP at the same time they claim Age Pension.

There are 3 possible claim scenarios, depending on whether the member's last bonus period was a:

• Full year
• If a registered member of the PBS has both deferred claiming Age Pension for 1 year and worked 960 hours in that year, 1 full year bonus period has been accrued. The 960 hours can be worked at any time during the member's full year bonus period
• If a member has accrued 1 or more full bonus periods and does not return to work, Age Pension and PBP must be claimed within 13 weeks after the end of the last full bonus period unless special circumstances exist
• Part year
• When a member has accrued 1 or more full bonus periods and only works a part year in the last bonus period, the part year period can count if the work test is met
• To be paid for the entire deferment period, including the part year period, the claim for Age Pension and PBP must be lodged within 13 weeks of ceasing to meet the work test. Claims made after 13 weeks if special circumstances exist may be accepted, but the part year is forfeited. When special circumstances exist there is some discretion to accept a late claim and if accepted the part year accrued still cannot be counted in the overall deferment period. Only full bonus periods can be counted
• The date the member ceased to meet the work test for the part-year may be closely estimated using the work record table in the Pension Bonus Scheme work record form on the department’s website. The Resources page contains a link
• Non-accruing period
• If the member does not return to work after a non-accruing period, Age Pension and the PBP must be claimed within 13 weeks of the end of the non-accruing period. The member can only be paid a bonus calculated on the number of years and days accrued before the commencement of the final non-accruing period.

A minimum period of 1 year must be accrued up to a maximum of 5 years to claim the PBP.

A person can work for more than 5 years and remain a member of PBS as long as they continue to meet the work test (or be non-accruing). PBP will be calculated on the last 5 full bonus years accrued.

Work after age 75 years (age 70 years under the Department of Veterans' Affairs scheme) cannot contribute to the PBP. A post-75 member of the scheme must continue to meet the work test or be in a non-accruing period. Note: a post-75 PBS member in a disposal preclusion period must meet the work test.

Periods of deferment prior to 1 July 1998 do not count.

There are 2 types of non-accruing periods.

• No discretion allowed - the non-accruing period must be applied. These periods include:
• receipt of compensation payments Note: in special circumstances, compensation payments can be treated as not having been received under section 1184K(1) of the Social Security Act 1991 and the person's membership is therefore assessed as accruing. For example when a member is receiving periodic compensation as a 'top up' to their employment income and they are otherwise meeting the work test.
• receipt of Carer Payment
• assessment of excess deprivation
• the member participated in the CDEP
• the member is in prisonl
• the member in psychiatric confinement due to a criminal offence
• Discretion allowed - the non-accruing period must only be applied if the member would otherwise fail the work test. These include periods when they are:
• Unable to meet the work test because of a major disaster on or after 24 August 2006 as defined in section 23 of the Social Security Act 1991. A maximum period of 13 weeks can be applied
• Unable to meet the work test on or after 1 March 2006 because of Cyclone Larry. A maximum period of 13 weeks can be applied
• Absent from work due to illness for 4 weeks up to a maximum of 26 weeks before 1 January 2008
• Absent from work on any work related leave, paid or unpaid, including sick leave up to 26 weeks on or after 1 January 2008 (no minimum)
• In a bereavement period because their partner died (maximum period of 13 weeks)

For a full explanation of non-accruing periods, see the References page for a link to the Guide to Social Security Law, 3.4.7.50.

Services Australia can accept PBP claims lodged up to 2 years after Age Pension was granted if the failure to claim PBP at the time was due in part to administrative error.

The following criteria must be met:

• The person was a registered member of the scheme for more than 12 months
• Administrative error played a part in the person not claiming PBP when they claimed Age Pension (for example the person's registration in the scheme was not noticed when indexing the claim or the PBP section was not completed)
• The claim for Age Pension must have been lodged within 13 weeks of the PBS member failing the work test or within 13 weeks after a period of non-accruing membership ends unless there were other circumstances as outlined in the Guide to Social Security Law 3.4.7.80 under the headings 'Discretion to accept late claims' and 'Reasons to accept late claims' that would have allowed late lodgement of PBS claim
• The claim for PBP must be lodged within 2 years of the claim for Age Pension

The Service Officer must recommend to the claimant that they contact a Financial Information Service (FIS) Officer before they lodge their claim for PBP and Age Pension.

Maximising a member's entitlement to PBP may depend on various factors. The Resources page contains an example where the date a member finishes work may not be the same as the date their bonus period ends. A claimant may disadvantage themselves by lodging a claim too early or too late.

A FIS contact will determine the best time for the claimant to lodge their Age Pension and PBP claim taking into consideration their individual circumstances.

The following documents must be provided when a claim for PBP is lodged. A claimant may need 1 or both of the following:

• their evidentiary certificates, if applicable
• work records of all work performed to show they have met the work test if the claimant does not have any evidentiary certificates or for any periods not covered by the evidentiary certificates

Detailed enquiries from a financial planner or organisation involving complex issues of entitlement comparisons or 'what if' scenarios should be referred to the local Financial Information Service (FIS) Officer.

Claimants who are granted Age Pension and PBP at a reduced rate on or after 1 January 2008 can be paid a bonus top-up if their pension rate increases within 13 weeks after the start day (date of grant), and the increase was due to a reduction in their assessed income or assets.

Top-ups are designed to help people who claim Age Pension and their Bonus before their finances are settled. Top-ups are not a second bonus, it is a recalculation of the original bonus amount.