Qualification and assessment of Pension Bonus Payment (PBP) 065-07030040

The PBS is closed to new registrations from 1 July 2014. Applications to register in the PBS that were lodged or deemed lodged before 1 July 2014 can be processed as usual.

As part of the Government's Secure and Sustainable Pension Reforms, the PBS closed to new entrants who did not qualify for Age Pension before 20 September 2009. Service Officers must not register customers in the PBS unless the customer reached Age Pension qualification before 20 September 2009.

All existing members may remain in the scheme and claim their pensions in due course, in line with existing arrangements, including customers who took advantage of early registration provisions and registered before 29 June 2009, when Royal Assent was given.

To qualify for a Pension Bonus, a customer must satisfy all of the following:

• be a registered member of the scheme
• have accrued at least 1 full 12 month bonus period
• have not already received a pension bonus under either the Social Security or Department of Veterans' Affairs (DVA) schemes
• have not received Age Pension
• since qualifying for Age Pension have not received
• an income support payment from Social Security (other than Carer Payment)
• a DVA Service Pension (other than a Carer Service Pension), or
• a DVA Veteran Payment, or DVA Income Support Supplement (ISS) (other than a Carer ISS)
• be qualified to receive Age Pension without the aid of an international agreement
• claim the Pension Bonus within the required time limit
• at time of claim a person must also lodge a claim for Age Pension (the Pension Bonus claim is in the Age Pension claim form, if Age Pension is rejected, the claim for Pension Bonus is taken to have been withdrawn)

A member must have at least one full year bonus period for a Pension Bonus to be payable. Only the final bonus period can be a part year. Bonus periods must be consecutive, or separated by periods if the customer is a non-accruing member. The normal 12 month bonus period is extended by the length of a non-accruing period.

Discretionary non-accruing periods can extend the normal 12 month bonus period by all or part of the non-accrual period, depending on the length of non-accrual period coded on the Pension Bonus Non-Accrual (PBNA) screen.

During the bonus period, the customer must satisfy the work test. Note: if a person who is registered for the PBS has their ability to meet the work test affected by a major disaster for example, Cyclone Larry, special rules apply.

The amount of PBP is based on:

• the customer's rate of basic Age Pension at the start day (date of grant)
• how long the person has been an accruing member of the scheme, and
• the member's relationship status during the deferment period

For customers with reporting requirements for the first entitlement period this cannot be done until the end of the first entitlement period. An activity will be produced when the reporting requirement has been fulfilled prompting consideration of the Pension Bonus claim.

At least 1 full year bonus period must be accrued. Up to 5 full year bonus periods can be paid.

Customers who are not entitled to basic Age Pension cannot be paid a PBP. Note: if no Pension Bonus is payable due to the customer or partner being paid employment income for longer than one entitlement period (LOP), check whether the Age Pension start date can be changed to pay Age Pension and Pension Bonus from a later date.

If the Age Pension start date cannot be changed and/or the LOP payment is assessed for 13 weeks or more after the start date, refer the case to the retirements helpdesk.

If the customer has applied for their superannuation investment to be exempted from the income and assets tests, it will still be included in the calculations for Age Pension and PBP at grant. If the application is successful, a Pension Bonus top-up may be payable. A top-up will only be payable if the date of effect of the superannuation exemption is no later than the end date of the Pension Bonus top-up period.

If no Pension Bonus was payable due to the initial assessment of a superannuation investment that is later exempted from the Age Pension start day, reconsider the original decision based on the revised income and asset assessment.

The Department of Veterans' Affairs (DVA) has a similar scheme for ex-service people. A customer may be registered with DVA and Services Australia at the same time. However, only one PBP is ever payable. For more information, customers should contact DVA on the correct number for their State.

If a customer disagrees with the granting or value of the pension bonus, the decision may be reviewed.