What happens to your remaining pension balance if you die depends on whether or not you make a binding beneficiary nomination.
If you don’t make a binding beneficiary nomination
If you die your remaining pension balance will be transferred to your spouse. Your spouse will be able to receive regular pension payments or withdraw the amount as a lump sum, in certain circumstances.
If you don't have a spouse, your remaining pension balance will be paid to either your dependants or estate. This means it's important to keep your will up to date to ensure your money is distributed according to your wishes.
If you make a binding beneficiary nomination
If you die the Trustee will distribute your remaining pension balance as per your instructions. However, you can only nominate your estate or people who are dependant on you. Your dependants include your spouse (including de facto), child, a person financially dependent on you (financial dependant), and/or a person you have an interdependency relationship with (interdependent).
Changes to anti detriment payments
From 1 July 2017, government super changes mean ‘anti detriment’ payments are no longer paid. Previously, these payments refunded contribution tax to an eligible beneficiary following a member’s death. If a member passed away before 1 July 2017, and a beneficiary makes a claim before 30 June 2019, they may still be eligible to receive an anti detriment payment when paid as a lump sum.
For more information on this, and other super changes, read our summary or give us a call on 13 MINE (13 64 63).
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