Social Security (Pension Bonus Scheme– Non-accruing Members) Declaration (No. 1) 1998

Overview

The Social Security (Pension Bonus Scheme—Non-accruing Members) Declaration (No. 1) 1998 was made under subsection 92Q(1) of the Social Security Act 1991 by David Marcus Rosalky, Secretary to the Department of Social Security, to address certain gaps in pension entitlements for specific categories of non-accruing members within the pension bonus scheme. This legislative instrument aims to ensure that certain individuals who are temporarily unable to accrue pension benefits due to particular circumstances are still provided with a measure of pension security. The declaration identifies and defines the kinds of non-accruing members and specifies the periods for which these individuals are considered non-accruing members, thereby aiming to provide a policy objective of maintaining pension entitlements for those in exceptional situations. This instrument was enacted by the Commonwealth of Australia and came into effect upon its gazette.

Scope and Application

The Social Security (Pension Bonus Scheme—Non-accruing Members) Declaration (No. 1) 1998 applies to members of the pension bonus scheme who fall into specific categories, thereby determining their eligibility for non-accruing status. This includes members participating in the Community Development Employment Program, those in gaol or undergoing psychiatric confinement, members on extended sick leave, and surviving members of a couple undergoing bereavement who are unable to pass the work test. The Declaration specifies the duration for which each category of member is considered non-accruing, with limits of up to 26 weeks for members on extended sick leave and up to 13 weeks for surviving members undergoing bereavement. This legislation operates within the framework of the Social Security Act 1991 and is applicable nationally across Australia. It does not introduce any exclusions, exemptions, or thresholds beyond those defined within the Act itself. The scope and application of the Declaration can be extended or modified through subordinate instruments as necessary.

Key Provisions

The main operative sections of this Declaration define the circumstances under which a member of the pension bonus scheme may be classified as a non-accruing member. Specifically, section 4 of the Declaration identifies various categories of members who do not accrue pension benefits. These include participants in the Community Development Employment Program (section 4(a)), individuals in gaol (section 4(b)), those undergoing psychiatric confinement due to charges (section 4(c)), members not participating in the workforce whose partners are working and intend to register for the pension bonus scheme (section 4(d)), members on sick leave for four weeks or more (section 4(e)), and surviving members of a couple undergoing bereavement who cannot pass the work test (section 4(f)). The obligations and requirements imposed by this Act on the relevant parties are primarily informational and administrative. The Secretary to the Department of Social Security must ensure that members fitting the criteria outlined in section 4 are correctly identified as non-accruing members. This involves monitoring and verifying the circumstances of each member and applying the specified durations during which they cease to accrue pension benefits, as detailed in sections 5(1), 5(2), and 5(3). There are no specific offences, penalties, or civil/criminal consequences outlined in the text for breaches of this Declaration. The text primarily focuses on defining the categories and durations for non-accruing members without addressing enforcement mechanisms or sanctions for non-compliance. Therefore, while the Declaration sets clear parameters for identifying non-accruing members, it does not specify any punitive measures for failing to adhere to these provisions.