Nominate a beneficiary
While it’s not the nicest thing to think about, have you considered what happens to the money in your super account when you die? You can tell us where you want your benefit to go by nominating a beneficiary.
Who gets my super when I die?
Because super doesn’t automatically form part of your estate, if you die without nominating a beneficiary LGIAsuper will pay your death benefit in line with Australian Government legislation and the rules in our Trust Deed. This means the outcome could be different to what you had in mind.
If you have a pension account at the time of your death, LGIAsuper will generally pay the balance of your pension as a lump sum to one or more of your dependents, or to your reversionary beneficiary as a pension.
Before we pay a death benefit we will look at whether you have advised us who you would prefer to receive your money. There are 3 ways you can do this.
1. Binding death benefit nomination
A binding death benefit nomination is a legal document which binds LGIAsuper to pay your benefit to your nominated beneficiary (or beneficiaries) provided it is still a valid nomination at the time of your death.
This type of nomination gives you greater certainty over where your money will go. It may be particularly useful if you have a more complex family situation (for example, ex-partner/s or children of current and former relationships).
2. Preferred beneficiary nomination
A preferred beneficiary nomination helps guide us when deciding who to pay your benefit to. Unlike a binding death benefit nomination, LGIAsuper is not legally required to follow your instructions. This is because we are obliged to identify all dependents and pay your benefit according to rules in our Trust Deed and Australian Government legislation.
Making a preferred beneficiary nomination is simple, doesn’t require renewal unless your circumstances change and may suit you if you have a relatively straightforward family situation.
3. Reversionary beneficiary nomination
With a reversionary beneficiary nomination your pension can continue to be paid as a pension to your beneficiary (generally your spouse). Before nominating a reversionary beneficiary it’s a good idea to contact us so we can explain all factors involved with making this type of nomination. For example, your pension payment may affect the reversionary beneficiary’s overall financial position including their tax situation and/or Centrelink benefits.
How do I make a nomination?
To make a preferred or binding death benefit nomination, complete the appropriate form at the back of the Nominating your beneficiary guide.
To make a reversionary beneficiary, you can complete the relevant section on your Pension application form (at the back of our Pension accounts PDS) when you apply to open a Pension account.
If you don’t nominate a reversionary beneficiary and you do not make a binding death benefit nomination, your spouse will be given the option to open their own LGIAsuper Pension account following your death. Your spouse can choose to have your benefit transferred to their account or withdrawn as a lump sum.