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Accruing membership of the Pension Bonus Scheme (PBS) 065-07030030

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This document outlines how to maintain membership of the Pension Bonus Scheme (PBS). Once registered, a person must meet the requirements of either a member who is accruing and meeting the work test, or a non-accruing member. This procedure is about accruing membership.

Work test

To meet the work test for a full year bonus period, members of the scheme must engage in gainful work for at least 960 hours during the period. At least 640 of these 960 hours must be worked in Australia. The work test is flexible. The minimum accrual period is 12 months.

Date of commencement

A customer's membership usually commences on their Age Pension age qualification date or the date they lodge the PBS registration form. Customers can only be paid a bonus calculated on the number of years and days deferred during which the customer was accruing and meeting the work test. A period of time during which Age Pension was not claimed but the work test was not met may be a non-accrual period, but these periods are not counted as time during which claiming Age Pension was deferred. For example, a customer may meet the work test for 3 years whilst deferring claiming Age Pension, then not meet the work test during a non-accruing period of 26 weeks, then meet the work test for a further year. Whilst the person has not claimed Age Pension for 4 and a half years they will only be paid a bonus based on 4 years of deferment.

Maintaining membership

To maintain membership of the PBS a member must be either accruing and meeting the work test, or non-accruing. Once a member ceases to meet the requirements of either accruing or non-accruing membership the customer is required to claim the Pension Bonus within certain time limits.

The Resources page contains examples of accruing membership calculation meeting the work test.

Pension Bonus Scheme (PBS)

Calculating a Pension Bonus

Non-accruing membership of the Pension Bonus Scheme (PBS)

Eligibility and assessment of Pension Bonus Payment (PBP)

Eligibility and assessment of Pension Bonus Bereavement Payment