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Cancellation of Membership
Membership of the pension bonus scheme is cancelled when:
- the claim for bonus is determined,
- the member starts to receive a designated pension at any time after the person's special date of eligibility,
- the member does not make a proper claim for bonus when they claim a designated pension, or
- the member requests the Commission in writing to cancel their membership.
The pension bonus scheme closed to new entrants on 20 September 2009. Existing members can continue in the scheme under the rules that existed prior to 20 September 2009. The pension bonus scheme provided an incentive for older Australians to remain in the workforce and defer receipt of income support pension. The incentive was a bonus, payable if all eligibility criteria and rules were satisfied.
The pension bonus was a once-only, tax-free lump sum payable to a person who, on reaching their special date of eligibility, voluntarily deferred retirement for at least one year and registered as a member of the scheme. The pension bonus was claimed at the same time as claiming pension and is calculated using the annual rate of basic pension payable at grant, multiplied by the bonus periods accrued.
Designated pension is defined in section 45TA VEA and relates to the pension bonus scheme. Designated pension means:
- age service pension, or
- partner service pension, or
Designated pension under the Social Security Act 1991 means age pension
Special date of eligibility is defined in section 45TB VEA and relates to the pension bonus scheme. A person's special date of eligibility for:
- age service pension is the first day on which a person becomes eligible for an age service pension,
- partner service pension is the first day occurring on or after the person reaches pension age and is eligible for a partner service pension,
- income support supplement is the day the person
- reaches [glossary:qualifying age:DEF/Qualifying Age], or
- becomes eligible for income support supplement if this is after the person has reached qualifying age.