How to nominate a beneficiary for your superannuation
Super benefits are paid as a lump sum to one or more eligible people you nominate. A nomination could include:
- your spouse
- your children (including your partner's children)
- someone who’ll be financially dependent on you when you pass away
- someone you’re in an interdependent relationship with when you pass away
- your legal personal representative.
When you choose someone to receive your super benefit, you can make your nomination either binding or non-binding.
If you haven’t nominated a beneficiary, we decide who receives your benefit. This could include your dependants and/or your legal personal representative. Your legal personal representative in this case is the executor or administrator of your estate. Our choice might not be your first preference, however, so keeping your beneficiary nomination up to date is essential.
Types of beneficiary nominations
How to nominate a beneficiary for your pension
The type of pension you have can determine how you choose a beneficiary, so nominating someone involves first learning how beneficiary rules apply to you.
Flexi Pension beneficiaries
Like super benefits, Flexi Pension benefits can be paid as a lump sum to a beneficiary by making a binding or non-binding nomination. But unlike super benefits, you also have the option of making a reversionary nomination to provide your beneficiary with regular income payments. These payments continue until the balance falls below $10,000. We then pay out the remaining balance as a lump sum.
Except for Beneficiary Income Stream members, all UniSuper Flexi Pension members have the option of choosing one person to be a reversionary beneficiary. In the event your nomination isn’t valid when you pass away – if you separate from a spouse, for example – we’ll decide who receives your benefit as a lump sum.
You can nominate:
- your spouse
- your child (if they’re under 25 and financially dependent on you, or have a disability according to the Disability Services Act 1986)
- someone who’ll be financially dependent on you
- someone you’re in an interdependent relationship with.
To nominate a reversionary beneficiary for your Flexi Pension, complete and return the reversionary beneficiary form.
Beneficiaries for other UniSuper pensions
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Defined Benefit Indexed Pension
- If you have a spouse, they’ll automatically receive 62.5% of your pension as a regular payment for life.
- If you have dependent children and/or children with a disability, they will also generally receive a portion of your pension.
- For more information, refer to the Defined Benefit Indexed Pension PDS (PDF 1.86 MB).
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Joint Life Lifetime Income account
- By nominating your spouse when you open your pension, they can receive your income payments as a reversionary pension when you die.
- Your nomination is binding and can’t be changed.
- Your nomination won’t receive payments if they’re no longer a valid beneficiary when you pass away.
- If you and your spouse both pass away within the guarantee period, we’ll pay a residual lump sum amount to your or your spouse’s legal representative.
- For more information, refer to the Lifetime Income PDS (PDF, 3.3 MB).
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Single Life Lifetime Income account
- If you pass away within the guarantee period, we’ll pay a residual lump sum amount to your legal personal representative.
- The residual amount paid as a death benefit lump sum is generally received tax-free if paid to a beneficiary who is your dependant for tax purposes.
- This includes where the benefit is paid to your legal personal representative and a dependant has benefited or may be expected to benefit from the payment.
- For more information, refer to the Lifetime Income PDS (PDF, 3.3 MB).
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Term Allocated Pension
- Binding and non-binding nominations you make can be updated at any time.
- If you made a reversionary nomination when you opened your account, your nomination is binding and can’t be changed.
- Your reversionary nomination won’t receive payments if they aren’t a valid beneficiary when you pass away.
- Income payments for reversionary beneficiaries will continue until the balance reaches zero.
What to consider when nominating a beneficiary
Multiple beneficiaries
- If you choose multiple beneficiaries, you must allocate 100% of your benefits or your nominations will be considered invalid.
- For example, if you nominate three people, one beneficiary may receive 34% of your benefit and the other two may receive 33% each.
Interdependent relationships
- An interdependent relationship could include two people living together who can demonstrate mutual emotional support and some degree of financial and domestic support.
- An interdependent relationship typically does not include friends, housemates, or when someone is paid to provide domestic support or personal care to another person.
Children
- Children can include adopted children and can be of any age. Their age determines how they receive your benefit.
- Financially dependent children between 18 and 25 can choose to receive your benefit as regular payments rather than a lump sum. If there is still a benefit in your account when they turn 25, they’ll receive the rest as a lump sum.
- If your child is permanently disabled, they can keep receiving regular payments until your benefit runs out.
- For children under 18, your benefit is paid into a trust account managed by a trustee until your child turns 18.
Legal representatives
- If you nominate your legal personal representative, your super or pension benefit forms part of your estate and is distributed according to the terms of your Will.
- If you don’t have a Will, your benefit is distributed according to the intestacy laws of your state or territory.
Get expert advice on beneficiary nominations
Nominating a beneficiary can be a challenging process. If you’d like some support with the basics, get in touch with one of our super consultants. It’s a free service included with your membership, so you won’t have to pay any costs out of pocket. They can provide more information on things like:
- how beneficiaries work
- who you can nominate
- when you might change your nomination
Need help with a beneficiary nomination?
Call
1800 331 685
8.30am to 6.00pm (Melbourne time)
Monday to Friday
+61 3 8831 7901 from outside Australia
The information is of a general nature and doesn't consider your personal circumstances. Before making decisions, you should consider the PDS and TMD on our website, and whether the information is appropriate for your circumstances otherwise seek financial advice.