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Reversionary pensions

Section: 14.13

A pensioner may commence a pension as a reversionary pension. Where a pension will continue to a reversionary pensioner upon the death of the primary beneficiary, there is no need for the primary beneficiary to make a binding death benefit nomination.

For members who pass away on or after 1 July 2007 the reversionary beneficiary must be a SIS dependant of the deceased, subject to the new restrictions for pensions paid to adult children (see sections 14.5 and 14.8).

From 1 July 2017, the compulsory cashing rules in respect of pensions and annuities include a requirement that death benefit income streams be in the retirement phase. This means that a reversionary nomination will not be valid if the income stream, once transferred to the reversionary beneficiary, would not be in the retirement phase.  information.

Last modified: Thursday, January 11, 2018