C16/2002 PENSION BONUS SCHEME - DETERMINING WHETHER A PERSON CLAIMING PENSION HAS REGISTERED FOR THE PENSION BONUS SCHEME OR IS ELIGIBLE FOR A PENSION BONUS

Purpose

The purpose of this Departmental Instruction is to remind DVA staff that when a person claims service or age pension or income support supplement or is enquiring about doing so, care must be taken to ascertain whether they are registered for the Pension Bonus Scheme (PBS) or could register and have their registration backdated.

Background

Recently there have been a number of cases where a person who is registered for the PBS has claimed and been granted pension without being invited to claim their bonus.

In some of these cases, the problem has arisen because the person has claimed partner service pension on the veteran's claim form.  It is understood that, although there are separate claim forms for veterans and partners to claim service pension, a single claim form is being accepted covering both the veteran and the partner.  Whilst the form asks the veteran whether s/he is registered for the PBS, it does not ask the same question of the partner.  The result is that in such cases pension is often being granted to the partner, without ascertaining whether s/he is eligible for a bonus.

In some other cases, pension is being granted without seeking a PBS application form, even though the pension claim form clearly states that the person is registered for the Scheme with either Centrelink or DVA.

Because under the legislation a person cannot be granted the bonus once they are in receipt of pension, such persons are being disadvantaged and a number of cases have been accepted for payment under the defective administration guidelines.

Form amendment

As part of the Review of Income Support Claim and Review Forms currently being undertaken, the service pension claim form is to be amended to ask the partner whether s/he is registered for the PBS with DVA or Centrelink.  In the meantime, would you please ensure that appropriate questions are asked of any claimant or prospective claimant who is over pension age to ascertain whether they might be eligible for a bonus, or might be well advised not to proceed with the pension claim in order to be eligible for or maximise a bonus at some time in the future.

Amendment to CLIK

The Claims Chapter in CLIK is also being amended to reflect this instruction.

Other amendments to CLIK relating to PBS

The following amendments are also being made to the PBS CLIK Chapters:

• corrections to “Factors that affect the calculation of a Bonus” in Section 7 in respect of calculating a bonus where the person's marital status has changed during their overall qualifying period or where they have become a war widow(er) during that period; and

• an addition to “Work requirements of the pension bonus scheme” in Section 5, specifying that if a person is undertaking aid work funded by the Australian Government, the hours worked overseas can be counted as gainful work carried on in Australia for the purpose of the work test.