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So, the big question.
What will your family, or those you most want to protect do if you can no longer work due to terminal illness or death?
Nominating one, or a number of beneficiaries
There are two types of death benefit nomination options available to all smartMonday members:
Binding death benefit nomination - This type of nomination stays in force for a three-year period and should something happen to you, if the nomination is valid
Non-binding death benefit nomination - This type of nomination provides a guide for the Trustee when deciding who should receive the balance of your superannuation account (including an insurance benefit, if applicable). The Trustee has ultimate discretion on who receives the benefit and how much each beneficiary receives. A non-binding nomination does not have an expiry date and therefore, does not need to be renewed.
There is also a third type of nomination that is only available to pension account holders:
A reversionary death benefit nomination - This type of nomination allows you to nominate your spouse, in the event of your death, to receive your pension balance as a continuing income stream rather than be forced to take it as a lump sum.
You can only have one type of nomination in each superannuation account and a beneficiary nomination is valid only for the account in which it was made.
Don’t forget, it’s important to review your death benefit nomination regularly. Circumstances can change, and you’ll want to make sure your super savings are paid to the right people in your life.
Generally, without a binding death benefit nomination in place, a trustee of a fund must follow trust deed rules when deciding to whom to pay benefits. In making its decision the trustee will be guided by any non-binding nomination you may have in place plus a number of other factors including your relationship with each of your dependents, their level of dependency or inter-dependency on you, the provisions of your Will, etc. But, the final decision may not always result in the distribution of your superannuation benefit in a manner expected by your dependants.
A valid
To help ensure a binding death benefit nomination remains valid, it should be renewed every three years or whenever there is a change in the nominating individual’s relationship circumstances, whichever occurs first.
To make a binding death benefit nomination;
complete and send us a Binding death benefit nomination form.
A non-binding death benefit nomination will provide the fund trustee with an indication of how you would like your death benefit to be distributed. While the trustee will take your nomination into consideration they will also need to consider any fund rules that may apply (such as ensuring all verified beneficiaries are treated fairly), instructions you may have left in a Will, as well as fully assess any claims made by dependants and other relatives.
Simply login to the self service portal to make a non-binding death benefit nomination.
If you're a pension account holder, you also have the option of selecting a reversionary beneficiary. This means that your beneficiary will receive your pension payments in the event of your death.
Please note, there are a couple of specific conditions that apply to reversionary nominations:
A reversionary nomination must be made at the time you establish your pension account. It is part of the pension account application process.
Beneficiaries are limited to your spouse or de-facto
Making a reversionary beneficiary nomination may affect your and your spouse’s Centrelink entitlements and may have tax implications. Please consult with your financial adviser prior to choosing this option.
