If you die
If you die and there is money remaining in your TransPension account, you can choose for that money to be paid to your:
- Surviving spouse (option 1), or
- Surviving dependant (option 2).
This money is also known as a death benefit. When you fill in your Membership application, you can choose how you want your death benefit to be paid to your beneficieries (the people who will get your investment).
The Membership application allows for one dependant to be nominated. However, if you would like to nominate more than one dependant under this option, you may put this in writing and send it to TransPension along with your Membership application.
Option 1
This is where your Account Based Pension or Transition to Retirement Pension reverts to and continues to be paid to your nominated surviving spouse on your death (known as a reversionary pension). Your spouse retains the right to draw down any unused money as a lump sum. If you select this option, the Trustee will continue to pay the income stream to your spouse unless it is unable to do so (eg your spouse dies before you). In this case, your benefit will be paid to your surviving dependants or estate after taking into account any nomination of preferred dependants you may have made.
Option 2
You can nominate who you would like your benefit to be paid to. The nominated person must be your dependant (who can be your spouse). The Trustee will take into account your nominated dependant’s wishes as to whether to pay your benefit as a lump sum or income stream. However, the Trustee has the final decision on who receives your benefit and how it is paid. The Trustee will take your nomination into account when paying your benefit.
You can change your dependant beneficiaries at any time using TransPension's Change member details form. Click here to download and print a copy.
Other information
An income stream can only be paid to your spouse or dependant. In the case of a child, it cannot commence to be paid to a child over 18 years unless they are financially dependent on you (in which case, an income stream can be paid up to age 25) or the child suffers a disability of a kind described in subsection 8(1) of the Disability Services Act 1996 (in which case, there is no age limit).
If you do not make a nomination under Options 1 or 2, the Trustee will pay the balance of your benefit to your surviving dependants or your estate. Generally, your beneficiaries can only be your dependants (eg. spouse, child or other who is wholly or partially financially dependent person, or another person with whom you have an interdependent relationship).
It is important for you to know that, when you nominate your beneficiaries, it is only a guide for the Trustee to use in distributing the balance of your benefit. By law, the Trustee has the final say on who gets the payment.
Tax
The taxation of death benefits will vary depending on who receives the death benefit. See TransPension's Product Disclosure Statement for more details
More information
Read the Death benefits section of TransPension's Product Disclosure Statement.