Unlike your other assets, your super is not automatically covered by your Will, unless you make the necessary arrangements with your super fund beforehand. This is why it’s important to know the options available to you to ensure your super is distributed according to your wishes. 

The type of nomination you make determines how we will distribute your death benefit to your dependants and/or your estate in accordance with the superannuation fund rules. If there is no beneficiary nomination at the date of your death, it usually takes longer to determine who should receive your benefit. 

Types of beneficiary nominations:

The type of nomination you choose could give you greater control over how your death benefit is distributed: 

  • Binding 
  • Non-binding 
  • Reversionary  beneficiary (RetireAccess members only).

 

Binding nomination

A binding death benefit nomination (BDBN) is legally binding on the Fund (providing your nomination is valid at the time of your death). This means we must pay your death benefit to the person(s) you have nominated in the proportions you decide and that cannot be contested. As the Fund does not have to wait for probate, it also means the death benefit will be paid out more quickly. 

BDBN’s automatically expire every three years. To ensure BDBNs are up to date, we’ll write to you before yours expires so you can update it to make it binding for another three years.  

If your circumstances change like marriage, having a child or divorce you can update your nomination at any time - you do not need to wait until it's due to expire. We recommend you do so to avoid your death benefit being paid to the wrong person(s). 

How to make a binding nomination:

Nominate a binding beneficiary

 

Non-binding nomination

A non-binding nomination lets us know who you prefer to receive your death benefit however it is not legally binding on the Fund. This means your nomination acts as a guide for us, but it can be broken if it doesn’t meet super/tax laws or is contested by family, or the Fund looks at the circumstances which exist at the time you die and thinks a different distribution is more appropriate. 

When the Fund is notified of your death, we must investigate who your dependants are, the extent they relied on you financially at the time of your death, and other relevant considerations. As a result, your death benefit may be paid to those the Fund considers to be financially dependent on you and, in some cases, this may not be the person(s) you have nominated. The Fund will use its discretion when deciding how to distribute your death benefit to your dependants and/or to your estate in a fair and reasonable way.  

A non-binding nomination doesn’t expire and is easy to update.  

How to make a non-binding nomination: 

Nominate a non-binding beneficiary online

 

Reversionary beneficiary nomination

(TelstraSuper RetireAccess members only)

A reversionary beneficiary nomination can only be made at the commencement of a TelstraSuper RetireAccess account. You may only nominate one reversionary for each RetireAccess product and the person nominated must be an eligible dependant at the date of your death.

For more information click here

Compare beneficiary options

  Binding  Non-binding

Reversionary 

(RetireAccess accounts only) 
Is the nomination binding?  Yes, provided the nomination is valid at the date of death  No  Yes, provided the nominated person is an eligible dependant at the date of your death 
When can a nomination be made?  Anytime Anytime Only at the opening of a RetireAccess account providing there are no funds invested in Direct Access 
Can the nomination be made via SuperOnline?  No, complete Beneficiary Nomination form  

Must be witnessed by two adult witnesses who are not nominated as beneficiaries 		 Yes
  • Yes, for Retirement & TTR income streams
  • No, for the Lifetime pension 
Does the nomination expire?

Yes, after three years and we'll remind you to renew it. 

You can renew your nomination via SuperOnline before the expiry date provided you do not wish to make changes to your nomination

 No  No 
Can the nomination be changed or updated anytime? 

Yes, complete a Beneficiary Nomination form

Yes, via SuperOnline or complete a Beneficiary Nomination form

 No 
Can my attorney, appointed under a Power of Attorney (POA) revoke, change or update my nomination? Only if your POA includes an express power to do so. They can renew an existing nomination Yes  No 
Who can be nominated?  One or more dependants or your estate   One or more dependants or your estate 

One dependant only for each RetireAccess product 

  • For Retirement & TTR income streams, your spouse or children (certain restrictions regarding nominating children apply)
  • For the Lifetime pension, your spouse only 

  • Who can I nominate as a beneficiary?
    • A dependant – these include your spouse, children, people who are depended financially on you and your legal personal representative. Refer to the FAQ ‘Who is a dependant?’ for more information.
    • Your legal personal representative - the executor of your estate as stated in your Will or the administrator of your deceased estate. 
  • Who is a dependant?
    • a spouse – including de facto and same-sex spouses
    • children of any age – including adopted and step-children
    • interdependency relationship – someone you live with and have a close personal relationship with where one or both of you provides the other with financial and domestic support and personal care. 
    • other financial dependants – someone who relies on you wholly or partially for necessary financial support for their everyday living.  That is, you provide ongoing support as money, or other support such as food, clothing, transport, education, or accommodation costs. It doesn’t include loans or one-off gifts from you.
  • When should I review my nomination?

    In general, you should review your beneficiary nominations if any significant life event occurs such as:

    • getting married  
    • having children
    • getting divorced or separated
    • death of a beneficiary or your legal personal representative
    • every 3 years for binding nominations
  • How to update a nomination

    You can complete a new Nomination of Beneficiaries form at any time to update your binding or non-binding nomination. The most recent nomination you make will override and automatically cancel your previous nomination. 

    If you update an existing binding nomination, it will expire in three years from the date you update it unless you make further changes or cancel your binding nomination. 

  • How to cancel a nomination

    To have the Fund decide who receives your benefit in the event of your death, you can revoke your nomination altogether. To do this, simply complete a new Nomination of Beneficiaries form and specify you wish to revoke your current binding nomination.  

  • Where to check your nominated beneficiaries

    It's important that you review your beneficiary details regularly, to make sure your nominations are up to date with your current wishes, and anyone nominated is still a dependant or financially dependent on you. You can check your current nominated beneficiaries on: 

  • What happens if my binding nomination lapses
    If your binding nomination has lapsed it will automatically change to a non-binding nomination which means the decision lies with the Fund. 
  • What happens if my nomination is invalid at the date of my death?

    Your entire nomination becomes invalid, if at the time of death: 

    • one or more beneficiary(s) nominated, or the member's Legal personal representative is deceased
    • one or more beneficiary(s) nominated is no longer a dependant
    • the person you nominated is no longer your Legal personal representative 

    Once a nomination is invalid or unable to be followed, we will determine any benefit payable to your dependants and/or legal personal representative in accordance with superannuation law and what is fair and reasonable at the time.

  • If you don’t nominate a beneficiary

    If there is no beneficiary nomination at the date of your death, it will take longer to decide who to pay your death benefit to, and it will most likely go to one or more of your dependants. If you have no dependants, it’s normally paid to your estate.  

  • Will my beneficiary(s) pay tax?

    Depending on who your death benefit is paid to – and how they receive the money – they may have to pay tax. Generally, proportions of death benefits paid to your spouse and minor children will be tax free. 

    For further details contact your financial adviser and/or visit the Australian Tax Office (ATO) website. 

Need help with your beneficiaries

At TelstraSuper we're here to help you build a secure financial future. TelstraSuper Financial Planning has a team of phone-based advisers who can provide you with general advice and factual information about nomination of beneficiaries.

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