Have you chosen what happens with your super after you’re gone?
A beneficiary is the person who receives your super death benefit. Your super death benefit is made up of your balance in your account plus any insurance payment (if you have insurance through Vision Super). To give you peace of mind that your super death benefit will be paid to your loved ones if you pass away, there are a number of beneficiary options you can choose from. Figuring out which one is right for you and your situation can take some time, but it’s important to know what’s available and make an informed decision.
If you would like to choose what happens to your Vision Income Stream when you pass away, you can elect one of the following options (does not apply to Defined Benefit Lifetime Pensions):
- Make a ‘preferred beneficiary’ nomination (also known as a non-binding nomination)
- Make a ‘binding’ nomination or
- Nominate a reversionary beneficiary.
Preferred beneficiary (non-binding) nominations
Preferred beneficiary nominations (also known as non-binding nominations) allow you to nominate a preferred beneficiary or beneficiaries for the payment of your death benefit as a lump sum. Vision Super will consider your preferred nomination and exercise its discretion to whether to allocate your benefit to the beneficiaries nominated. This preferred nomination is not binding on Vision Super, however, it will be an important consideration when Vision Super determines how to apportion the benefit payable on your death.
Binding death beneficiary nominations can give you certainty about who receives your super if you die. This form of nomination means your beneficiary or beneficiaries will receive your super death benefit. Vision Super must pay your death benefit in accordance with a completed, valid binding nomination to your nominated dependants and/or legal personal representative (the executor of your will) in the proportions you have determined, except in special circumstances such as a court order.
Your binding nomination needs to be updated every three years from the date you signed the form and submitted it to us. If there are any significant changes to your family or personal circumstances, it is important that you update it by completing another form correctly. These changes may include the death of a dependant, the birth of a child or the end of a relationship. It is your responsibility to ensure that you reconfirm your binding nomination before this three-year period ends.
You can revoke your binding nomination in writing or by correctly completing another form.
A reversionary beneficiary nomination allows you to elect that the balance of your Vision Income Stream continues to be paid in the form of pension payments to your nominated revisionary beneficiary when you die. If you nominate a ‘reversionary beneficiary’ that nomination is generally binding on Vision Super and cannot be revoked, except in limited circumstances such as the death of the reversionary beneficiary, or divorce.
Once a reversionary nomination has been revoked you will only have the option of nominating a preferred or binding beneficiary. You can only nominate one person as your reversionary beneficiary and this must be done prior to the commencement of your Vision Income Stream.
Estate law can be complex, and most of us are not experts – so let a qualified financial adviser help you. You can see a Vision Super Financial Planner or another adviser for help. If you’d like an appointment with one of our team, call us on 1300 300 820 Monday to Friday between 8:30am and 5pm and we’ll set you up with a meeting.
We can provide limited financial advice relating to your Vision Super account at no extra cost. Fees will apply in other circumstances; these fees will be discussed with you before any advice is provided.