Closure of the Pension Bonus Scheme
The Pension Bonus Scheme (PBS) will be closed to new entrants from 20 September 2009 (unless the entrant reaches 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.
Frequently asked questions
I am already registered in the Pension Bonus Scheme and meeting work requirements by working at least 960 hours each year. Do I have to do anything?
No, members of the Pension Bonus Scheme can remain in the scheme while they continue to meet the work requirements.
I am registered in the Pension Bonus Scheme. My partner is working and was going to join when they qualified for Age Pension. However they won’t qualify for Age Pension before 20 September 2009. Do I have to do anything?
If you are meeting the work requirements of at least 960 hours work each year you can continue to remain in the Pension Bonus Scheme. Generally, you will now be required to claim your Pension Bonus within 13 weeks of when you cease to meet the work requirements. If you are not meeting the work requirements you will generally be required to claim your Pension Bonus within 13 weeks of 20 September 2009.
The changes to the Pension Bonus Scheme mean that you can no longer continue to defer claiming your Pension Bonus because your working partner who is not in the PBS continues to work. If you have a working partner who is not in the PBS you may wish to talk to a Centrelink Financial Information Service Officer to see if your plans are affected by the changes.
I was going to register for the Pension Bonus Scheme in a month's time, when I turn 65. Can I still do that?
If you will meet the qualifications for Age Pension before 20 September 2009 you can still register for the Pension Bonus Scheme. You should register as soon as possible.
Would it be better for me to leave the Pension Bonus Scheme now and go on the pension?
The closure of the Pension Bonus Scheme makes no difference to that decision, but the changes to the means test may influence your decision. You may benefit by talking to a financial adviser about your options. Alternatively, you can talk to a Centrelink Financial Information Services Officer.
When does this closure of the Pension Bonus Scheme happen?
The change in the law took place on 29 June 2009. The change means that the Pension Bonus Scheme is closed to those who do not qualify for Age Pension before 20 September 2009. Those who registered before 29 June 2009 may remain in the scheme.
I just heard about this Pension Bonus Scheme and I am over age pension age and working. What should I do?
If you meet the requirements of the scheme, you may still be able to register. You should contact Centrelink to register as soon as possible. You must be a registered member of the Pension Bonus Scheme to be able to claim a Pension Bonus Payment when you eventually claim your Age Pension.
Why is the Pension Bonus Scheme being closed to new entrants?
The Government decided that pension means test changes for earnings would be a more effective way of encouraging people over age pension age to keep working, but wanted to ensure that people already in the scheme could continue to accrue a pension bonus if they wished.
Who can I talk to about these changes?
If you want to talk to someone about how these changes may affect you, call the Centrelink Seniors line on 13 2300.