Super and estate planning
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