Pension Beneficiary Options
Payment of death benefits
If you die while you are a member of the NSF Super Pension Division, the Trustee is required to pay your death benefit, equal to your withdrawal balance (less any taxes, fees or costs applicable at the time of payment) to your beneficiaries, as a lump sum or pension.
Beneficiary nomination options
You can make either a non-binding or a reversionary beneficiary nomination:
| |
Non-binding nomination |
Reversionary nomination |
What does it
mean? |
This type of nomination will guide the
Trustee as to your wishes, however, the
Trustee makes the final decision as to
whom the benefit will be paid. The
Trustee is guided by superannuation
legislation and must ensure your
benefit is paid to your dependants. The
Trustee will take into consideration
your circumstances and the
circumstances of your potential
beneficiaries at the time of your death |
A reversionary beneficiary will
continue to receive your
pension if you die (although the
pension income may need to
be adjusted based on their
age).
In most cases, your
reversionary beneficiary can
elect to cash the pension in for
a lump sum benefit
|
How many
beneficiaries
can I choose? |
You can nominate as many
beneficiaries as you wish |
You can only choose one
reversionary beneficiary |
Who can I
nominate as a
beneficiary? |
When nominating your beneficiary,
please ensure that you nominate a
dependant* beneficiary. The Trustee of
NSF Super can only consider a
non-dependant where there is no
dependant(s) or estate |
Your nomination must be a
spouse or a child.
A child reversionary beneficiary
must be under age 18, or aged
between 18 and 25 and
financially dependent on you
(pension must be taken as a
lump sum when they reach age
25) or disabled
|
Can I change
my nomination? |
You can change your nomination at
any time by completing a Member
Change of Details form |
You are not able to change a
reversionary beneficiary
nomination, as it can only be
made at the time you apply to
commence a pension |
Nominating beneficiaries
To advise the Trustee of your preferred nomination, please complete the relevant section in the Pension Division Application Form which can be found at the back of the PDS.
You can change your non-binding nomination at any time by completing a Change of Details form.
If, at the time of your death, you did not nominate a beneficiary or your nomination is invalid, the Trustee will look for eligible beneficiaries to receive your death benefit.
Taxes that might apply for beneficiaries
Tax payable on death benefits depends on individual circumstances. We recommend that you seek licensed financial advice about how tax would apply to you and your beneficiaries.
Death benefits paid to dependants* are tax-free. If paid to a non-dependant, the taxable component of the lump sum benefit is taxed at 15% plus Medicare Levy.
Any death benefits paid to your spouse, former spouse or child (of any age) may additionally include an anti-detriment payment. An anti-detriment payment broadly represents a refund of the 15% contributions tax paid by the deceased member during their lifetime.
*Under the Superannuation Industry (Supervision) Act 1993, a dependant is defined as:
• The member's spouse including de facto and same-sex spouse (but excluding a previous spouse);
• Any children of the member including adopted, step, ex-nuptial and adult children; and
• Any other person with whom the person has an interdependency relationship.
Under superannuation law, two persons are considered to have an interdependency relationship if:
a) They have a close personal relationship; and
b) They live together; and
c) One or each of them provides the other with financial support; and
d) One or each of them provides the other with domestic support and personal care.
Note that the requirements for an interdependency relationship may be met if the requirement in a) above is met but the other requirements are not met due to one or both of the persons suffering from a physical, intellectual or psychiatric disability.