Nominating beneficiaries

In the event of your death, UniSuper is required by law to pay the remaining balance of your pension account (if any) to one or more of your dependants and/or your legal personal representative.

To provide greater certainty about what takes place on your death, you can:

1. Choose a reversionary beneficiary*
2. Make a binding death nomination, or
3. Nominate a preferred beneficiary.

You can also choose to do nothing and leave it up to the Trustee. The most appropriate nomination will depend on your personal circumstances.

As there may be taxation, Centrelink and other implications to consider when nominating your beneficiaries, we strongly recommend you seek financial advice before making your nomination.

*Flexi Pension members and Term Allocated Pension members only

Reversionary beneficiary nomination

Reversionary beneficiary nominations are available for Flexi Pension and Term Allocated Pension members.

If you would like the balance of your account based pension to continue to be paid to one of your eligible dependants after your death (as a pension rather than a lump sum), you can nominate one of your dependants as your reversionary beneficiary.  This provides both you and your nominated reversionary beneficiary with the certainty of receiving an ongoing income stream.

Eligible dependants to receive a reversionary pension include:

• a spouse (including de facto)
• a child under 18
• a financial dependant (at the time of your death), or
• an interdependent (both at the time of nomination and at the time of your death).

Your nominated reversionary beneficiary must be an eligible dependant at the date of your death. If this is not the case then the Trustee will use its discretion as to who will receive your death benefit. Additional restrictions apply to eligible financial dependants aged between 18 and 25 years.

If you choose a reversionary beneficiary to receive your pension:

• your entire death benefit will be paid as a pension to your reversionary beneficiary
• you cannot apportion your death benefit between your reversionary beneficiary and other dependants
• any binding death benefit nomination previously made will no longer apply to your pension account
• any preferred (non-binding) beneficiary nomination will no longer apply to your pension account

Please refer to the Reversionary beneficiary nomination fact sheet and the Your guide to pensions product disclosure statement for more information.

How do I make or update a reversionary beneficiary nomination?

To make a reversionary beneficiary nomination, complete and return the relevant section of your pension application form.

Term Allocated Pension members choosing to nominate a reversionary beneficiary, must do so at the commencement of their pension and are unable to update their nomination.

Flexi pension members can update their reversionary beneficiary nomination at any time by completing and returning the Adding or removing a reversionary beneficiary form.
 

Binding death benefit nomination

A binding death benefit nomination is a written direction to the Trustee that sets out the dependants and/or legal personal representative that you want to receive your benefit in the event of your death and the proportions payable to each beneficiary. If your nomination is valid and in effect at the date of your death the Trustee must pay your benefit in accordance with the nomination.

There are certain conditions that must be met for your binding death benefit nomination to be considered valid and in effect. Please refer to the Binding death benefit nomination fact sheet for more information.

A valid binding death benefit nomination:

• Remains in effect for three years from the date it was first signed, last amended or confirmed
• Does not take effect until it has been received and accepted by the Trustee
• Cannot be made on an account where a reversionary beneficiary nomination is in effect
• Will override any preferred beneficiary nomination that you may have previously made
• Will no longer bind the Trustee if it expires or becomes invalid for any reason however, the Trustee will take it into account when deciding how to pay your death benefit.

If you have more than one UniSuper account (for example, if you have a super account and a Flexi Pension account) and have a valid binding death benefit nomination in effect, the binding death benefit nomination will apply to both accounts unless you have nominated a reversionary beneficiary to receive your Flexi Pension upon your death. If so, the binding death benefit nomination will only apply to your super account.

If you are a Defined Benefit Division member who joined the Fund prior to 1 January 1990, making a binding death benefit nomination may have implications for the payment options available to your beneficiaries in the event of your death.

How do I make or update a binding death benefit nomination?

To make a binding death benefit nomination complete and return a Binding death benefit nomination form.

If you have made a binding death benefit nomination and wish to continue to bind the Trustee to pay your benefit to your nominated dependants and/or legal personal representative, you will need to reconfirm the nomination before it expires. You can do this by giving the Trustee a written notice, signed and dated by you, to that effect. It is your responsibility to ensure the nomination is confirmed before it expires.

Your binding death benefit nomination can be amended or revoked at any time before it expires by advising the Trustee. 

To amend your binding death benefit nomination, complete a new Binding death benefit nomination form and provide it to the Trustee.

To revoke your binding death benefit nomination you must give the Trustee a written notice, which must meet certain conditions. Please refer to the Binding death benefit nomination fact sheet for more information.

Preferred beneficiary nomination

A preferred beneficiary nomination allows you to nominate who you would prefer your benefit be paid to in the event of your death. This nomination is not binding on the Trustee. You can nominate one or more of your dependants and/or legal personal representative.

In the event of your death, the Trustee must pay your benefit to your dependants and/or legal personal representative, in proportions determined by the Trustee. However, the Trustee will take your nomination into account when determining who will receive your benefit.

A preferred beneficiary nomination remains in place until it is amended or replaced, or until you make a valid binding death benefit nomination.

How do I make or update a preferred beneficiary nomination?

To make your preferred beneficiary nomination, either: 

• complete the relevant section of your Membership application form
• login to MemberOnline, the secure member only website; or
• complete and return a Change of details form 

You can update your preferred beneficiary nomination at any time via MemberOnline or by completing and returning the Change of details form relevant to you.

What if I don’t make a nomination?

If you have not nominated any beneficiaries, in the event of your death, the Trustee must pay the remaining balance of your benefit to one or more of your dependants and/or legal personal representative in proportions determined by the Trustee.

If you do not have any dependants or a legal personal representative at the date of your death, the Trustee will pay your benefit to any other person it determines as required by superannuation law.

Who is a dependant?

Regardless of which type of nomination you choose, the Trust Deed and superannuation law specify who your death benefit can be paid to. A death benefit can be paid to one or more of your dependants or your legal personal representative.

Your dependants include:

• your spouse (including legal or de facto spouse of same sex or opposite sex)
• your children or the children of your spouse (regardless of age)
• any person who was in an interdependency relationship with you at the date of your death
• any other persons (irrespective of age) who in the opinion of the Trustee, are or were in any way financially dependent on you at the date of your death.

The definition of spouse for a UniSuper member means:

• a person to whom you are legally married
• a person, whether of the same sex or a different sex, with whom you are in a relationship that is registered under an Australian State or Territory law, and
• a person, whether of the same sex or a different sex, with whom you are not legally married but who lives with you on a genuine domestic basis as a couple.

A child in relation to a UniSuper member or the member’s spouse includes a child, adopted child, foster child, ward or child within the meaning of the Family Law legislation.

What is an interdependency relationship?

An interdependency relationship may exist between two people (whether or not related by family), if they live together in a close personal relationship, and one or each of them provide the other with financial support, domestic support and personal care. For more information about what constitutes an interdependency relationship, please refer to the Your guide to pensions product disclosure statement.

Before any benefit can be paid to a person with whom you had an interdependency relationship, the Trustee requires a statutory declaration  that sets out the nature of your interdependency relationship. You can make this statutory declaration at the same time that you make your nomination, or it can be made by the person with whom you had an interdependency relationship after your death. 

Your legal personal representative

Your legal personal representative is the executor of your will or the administrator of your estate if you die without a will. If you nominate your legal personal representative, your benefit will form part of your estate and will be distributed in accordance with your will (if you have one), or in accordance with the laws that govern people who die without a will. 

It’s important to keep your nomination up-to-date

Regardless of the type of nomination you choose, it is important that you keep your nomination up to date. This is especially important if your circumstances change, for example, if you get married, change partner, have a child, or if someone you have nominated as a beneficiary dies or ceases to be a dependant.

Anti-detriment payments

UniSuper may also pay an additional amount referred to as an anti-detriment payment , in addition to the lump sum death benefit arising from a Flexi Pension. Please refer to the Your guide to pensions product disclosure statement for further information about when an anti-detriment payment may be paid.