Q&A on Death Benefit Beneficiary Nominations through NQ Super & Pension

Q – Why is it important to make a death benefit beneficiary nomination?

A death benefit beneficiary nomination ensures that your superannuation benefits are paid according to your wishes in the event of your death. It helps avoid potential disputes among family members and can expedite the payment process.

Q – Why is it important in renewing a lapsing death benefit beneficiary nomination?

Renewing a lapsing death benefit beneficiary nomination is crucial to ensure that your superannuation benefits are still paid according to your current wishes. Lapsing nominations expire every three years, and if not renewed, the trustee will decide how to distribute your benefits, which might not align with your intentions.

Q – Why is it important in reviewing and updating the nomination when circumstances change?

Reviewing and updating your beneficiary nomination is important when personal circumstances change, such as marriage, divorce, the birth of a child, or the death of a nominated beneficiary. This ensures that your superannuation benefits will be distributed according to your current wishes and situation.

Q – What types of nominations are offered by NQ Super & Pension and how to make one?

The fund offers binding and non-binding nominations. Binding nominations legally bind the trustee to pay your benefits to your nominated beneficiaries, provided the nomination is valid. Non-binding nominations guide the trustee, but the final decision rests with the trustee. In the case of NQ Pension accounts, a further option is available – a reversionary beneficiary nomination. Reversionary beneficiary nominations allow you to nominate a person to automatically continue receiving your pension payments after your death.

Binding Nominations:

You have the option to make a Binding Nomination using a ‘Binding Nomination of Beneficiary form’ available from www.nqsuper.com.au or www.nqpension.com.au.

Usually, when you make a valid and effective Binding Nomination of Beneficiary, you override the Trustee’s discretion in determining who should receive your superannuation benefits in the event of your death. What this means is that the Trustee must pay the benefits to the beneficiaries specified by you and in the proportions that you specify provided your nomination is valid and in effect at the time of your death.

There are two types of Binding Nominations available:

• Non-lapsing Binding Nomination:

This type of nomination will not expire and will remain valid on your account until you notify us otherwise.

• Lapsing Binding Nomination:

This type of nomination expires three years after the date on which you sign and date the ‘Binding Nomination of Beneficiary Form’.If you do not make another nomination at that time, your binding nomination will no longer be valid and the Trustee will have discretion to decide to whom the benefit is paid.

Non-Binding Nominations:

Your death benefit will be paid to one or more of your dependants and/or legal personal representative in a manner decided by the Trustee. You can tell the Trustee who you would prefer the benefit to go to by completing the ‘Nomination of Beneficiaries form’ available from www.nqsuper.com.au or www.nqpension.com.au. You can change your nomination at any time by informing the Trustee in writing. Please note that your nomination is not binding on the Trustee – the Trustee must determine how the benefit should be paid by considering the circumstances of each potential claimant in accordance with the Trust Deed governing the Fund and applicable legislation.

Q – How can I make a nomination?

1. Obtain the nomination form from the fund’s website or by contacting the fund.
2. Complete the form with your personal details and the details of your nominated beneficiaries.
3. Sign and date the form in the presence of two witnesses who are not beneficiaries.
4. For a binding nomination, post the original to PO Box 3528, Tingalpa DC, QLD 4173. For a Non-binding nomination, this form can be posted to PO Box 3528, Tingalpa DC, QLD 4173 or emailed to info@nqsuper.com.au.

Q – How can I change existing nomination?

If you wish to change an existing nomination you will need to complete another ‘Binding Nomination of Beneficiary form’ available from www.nqsuper.com.au or www.nqpension.com.au. You should refer to section 6 of this form for important information about binding nomination of beneficiaries.

Q – What happens if you nominate a beneficiary who is not a dependant at the time of death or legal personal representative?

It is also important to be aware that if you nominate a beneficiary who is not a dependant at the time of death or legal personal representative, your nomination will be invalid and the Trustee will be required to decide to whom the benefit is paid. There may be other circumstances in which a binding nomination will be invalid or ineffective (for example, a court order).

Q – Who can be a binding nomination?

For a binding nomination to be valid, the people you list in the form must be (at the date of your death):

• your spouse (including de facto and same sex)
• your children (adopted or ex-nuptial of any age)
• financially dependent on you
• an interdependent, or
• your legal personal representative, which means the executor or administrator of your estate.

You can only select one relationship per nomination.

Q – What is a dependant/interdependent?

Nominated beneficiaries may include eligible dependants or a legal personal representative.

In all cases, a dependant is usually your spouse or any child, or any other person who is financially dependent on you or interdependent at the time of your death.

A couple may be regarded as “spouses” to each other where they are legally married, living with each other on a genuine domestic basis in a relationship as a couple or, in certain circumstances, have registered their relationship under State or Territory laws. This means that same sex spouses may qualify as dependants.

A “child” may include a child of the member or of the spouse of the member (including an adopted child, step child or ex-nuptial child or someone who is a child within the meaning of the Family Law Act 1975).

Generally, two people have an interdependency relationship if they satisfy all of the following:

• they have a close personal relationship;
• they live together;
• one or each of them provides the other with financial support; and
• one or each of them provides the other with domestic support and personal care.

In addition, if a close personal relationship exists but the other requirements above are not satisfied because of a physical, intellectual or psychiatric disability (for example, one person lives in a psychiatric institution suffering from a psychiatric disability), then an interdependency relationship may still exist. An interdependency relationship may also exist in other circumstances.

Financial dependency depends on the circumstances of each case. The Trustee will consider relevant circumstances at the relevant time, to assess whether a person qualifies as a dependant of a deceased member.

You may revoke or change your nomination at any time by completing and lodging a new nomination form available from www.nqsuper.com.au or www.nqpension.com.au. Forms are also available from the Fund Administrator.

A person’s situation can change during a year – you might get married, have children, become divorced, or there may be some other change to your domestic situation. When these types of changes do occur, it is important to take the time to review how these changes might be relevant to the dependants you have nominated as your beneficiaries.

Q – what happens if a valid binding death benefit nomination is not in place at the time of member’s death?

If there is no valid binding death benefit nomination, the trustee will use its discretion to decide how to distribute the superannuation benefits, which may delay the payment process and could result in the benefits being distributed in a way that does not align with the member’s wishes.

Q – How do I claim a death benefit?

To commence a death benefit claim:

1. Obtain the death benefit claim form from the fund’s website or by contacting the fund.
2. Complete the form with all necessary details and attach the required documentation (e.g., death certificate, proof of relationship).
3. Submit the completed form and documentation to the fund.

Q – What factors can affect the time taken to process a death claim;

Factors that can affect the processing time include the completeness of the claim form and documentation, the complexity of the member’s financial affairs, the need for additional information or verification, and whether there are any disputes among potential beneficiaries.

Q – Are there any in-built chat functions that can direct a person to relevant information on the website or to call the fund’s contact centre (if you do not have this facility, please let us know);

There are no in-built chat functions at this stage, please refer to the NQ Super website or call the Fund’s contact centre.

Q – What assistance is available for First Nations, culturally and linguistically diverse, and vulnerable people?

Please refer to the First Nations, culturally and linguistically diverse, and vulnerable people Page by clicking on Resources – NQ Super.