You can decide what happens to your account when you pass away by nominating a beneficiary. The type of beneficiary you choose will determine what they can do with your account when you die.
You may nominate:
- Reversionary beneficiary
- Binding beneficiary/ies, or
- Preferred beneficiary/ies.
You may wish to consider nominating a beneficiary when you apply for an Income Stream account.
If you nominate a reversionary beneficiary, your usual payments will revert to the nominated person when you die. A reversionary beneficiary has much the same rights as the member. Among other things they can:
- Close the income stream and be paid as a lump sum
- Set their own level of payment within the limits imposed by law, and
- Set their own investment strategy
* Please note that there may be tax and/or Centrelink implications for a reversionary beneficiary. Please seek financial advice to see how this might impact you.
A binding nomination is legally binding which means that upon your death, your benefit will be paid to the people you want to receive it, as long as your nomination is valid. Nominate your binding beneficiaries today by completing the Nomination of beneficiaries form.
These are people whom you would prefer to receive your death benefit should you die. The Trustee will take your preference into account when making a payment but will ultimately decide who should receive your death benefit according to superannuation law. You can easily nominate preferred beneficiary/ies via MemberOnline.
Who can I nominate as a beneficiary?
Under super law, you can nominate your spouse, child or someone who is financially dependent on you as your beneficiary.
For full details of who qualifies as a beneficiary please read the PDS - Income Streams.
If you don’t nominate a beneficiary
If there is no beneficiary nomination on your account or if the person you nominate as your beneficiary does not qualify to receive payments under the law, the Trustee will pay the balance of your account to your estate or dependants or a combination as determined by the Trustee according to superannuation law.
For detailed information regarding nominating beneficiaries please read the PDS - Income Streams.
Talk to someone in the know
Speak to a financial planner* for tax implications, superannuation law regarding death benefits or understanding how income stream beneficiary nominations work. Call 1800 675 839 or book an appointment today!
*Financial Planners employed by Prime Super are authorised representatives of PGW Financial Service Pty Ltd (PGW) ABN 15 123 835 441, AFSL 384713. PGW is responsible for personal financial advice provided by their authorised representatives.