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Pension Deferred May Affect Bonus
Which pension is being deferred may affect bonus
It is possible for a person to be registered for deferral of two pensions at the same time, eg age pension and service pension. However, only one pension bonus can be claimed. As different age criteria apply, service pension bonus periods accrued before age pension age cannot be used for age pension bonus purposes.
Fred has deferred both service pension and age pension. If he claims age pension and bonus, periods accrued prior to Fred reaching age pension age cannot be included in the bonus calculation.
An age pension is a means tested income support payment paid by Centrelink or DVA on behalf of the Department of Families, Housing, Community Services and Indigenous Affairs. The majority of age pensions are paid through Centrelink. However, eligible veterans who have an accepted disability or receive a Disability Compensation Payment from DVA, but do not have qualifying service, may be paid their age pension by DVA. Their partner may also receive their age pension from DVA, if eligible.
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
Age Pension Age refers to pension age as defined under the Social Security Act 1991, that is, pension age for people other than veterans.