Decide Your Beneficiaries
If you die and have a pension account with BUSSQ, any remaining balance will generally be paid to your dependants and/or your legal personal representative. The balance of your account is made up of any money remaining in your account, less outstanding fees and taxes.
Who gets your pension if you die?
The treatment of death benefits can be complex, which is why we recommend you obtain advice on the most effective way to plan your estate. BUSSQ can provide you with advice, see what sort of advice do you need.
Your BUSSQ pension gives you two options to provide for your dependants in the event of your death prior to your BUSSQ pension account running out.
Nominate a reversionary beneficiary
A reversionary pension is a pension that continues to be paid from your pension account to your spouse or other named reversionary beneficiary following your death. A reversionary beneficiary must be a dependant.
You can only nominate a reversionary when you commence your BUSSQ pension. If you want to change your nominated reversionary beneficiary at a later date, you have to cancel the pension related to your nominated reversionary beneficiary and open a new BUSSQ pension account.
A reversionary beneficiary can choose to be paid their pension and be paid a lump sum benefit. If the reversionary beneficiary dies before their BUSSQ pension account runs out, the balance of the account will be paid to the reversionary beneficiary’s preferred beneficiaries or legal personal representative.
Nominate your preferred beneficiaries
You may nominate one or more of your dependants or your legal personal representative as the recipient of your BUSSQ pension account in the event of your death. You can choose the type of nomination that best suits your needs, either:
- A non-binding nomination, or
- A binding nomination.
The most appropriate nomination will depend on your personal circumstances. You should seek advice from a financial adviser if necessary. If you do not make a nomination the Trustee will, in its’ absolute discretion, pay your benefit upon your death to your dependant(s) and/or your legal personal representative.
If you choose to make a non-binding nomination, BUSSQ will use this nomination as a guide, along with other current and relevant information it has, to make a decision about where your benefits will be paid in the event of your death. However, your nomination is not binding on BUSSQ’s Trustee.
This means that you can request that BUSSQ be bound by the nomination you make on your Binding Death Benefit Nomination form when they are paying out your death benefit. Provided your nomination is a valid one, BUSSQ will be obliged to pay any death benefit entitlement to the person or people you have nominated on your form. You can only make a binding nomination to a dependent.
For your binding nomination to be valid, certain conditions must be met – please contact BUSSQ for further information.
From transition to retirement and retirement planning, to superannuation investment options and retirement income stream choices, BUSSQ’s team of pension specialists is here to help. Book in to speak with a BUSSQ Financial Planner today and get your retirement sorted.