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What is accruing and non-accruing PBS membership?

Members of the Pension Bonus Scheme (PBS) can go through periods of 'Accruing membership' and 'Non-accruing membership' while still being members of the PBS. However, it is only the periods of 'accruing membership' that count toward your bonus.

Once you are a member of the PBS you can 'accrue' bonus periods until you reach the age of 75, as long as you:

• continue to meet the work test, and
• do not meet any non-accruing membership criteria.

Periods of 'non-accruing membership' cannot be counted towards your bonus. These periods may cancel out any bonus you would otherwise have earned during that period. Some examples include if you:

• give away more than a total of $30 000 in any five year period from five years before you became a member of the PBS and throughout your membership (note that only gifts made after 30 June 2002 are subject to this rule)
• give away more than a total of $10 000 in a single financial year* that you are a member of the PBS or in each (or any) of the five years before you became a member
• receive periodic or lump sum compensation payments
• receive a Carer Payment from Centrelink
• participate in a Community Development Employment Project
• are in prison or in psychiatric confinement because of an offence
• your partner is working, but not yet a member of the PBS (for example, because they have not reached Age Pension age), and you need to use their work to pass the work test
• are on sick leave for a continuous period of at least four weeks and not more than 26 weeks
• your partner dies, and you cannot pass the work test for a period of up to 13 weeks.

*Changes to gifting rules from 1 July 2002 apply to PBS members.

Important: If you are relying on your partner's work to meet the work test, their non-accruing periods may affect your bonus.