The Association of Superannuation Funds of Australia (ASFA) has released a new fact sheet designed to help guide people through the process of nominating a beneficiary for their superannuation death benefit.
ASFA CEO Ms Pauline Vamos says many people do not think about what might happen to their super when they die.
“Many people do not realise that their superannuation is treated differently to their other assets when they die. However, often it will be one of the biggest assets they are able to pass on. Being specific about their wishes and providing the right information to their fund is therefore crucially important.
“We know that these sorts of conversations can be confusing, and it's difficult to know where to start. This is why we have produced a fact sheet to give people basic information about the different types of beneficiaries they can nominate, and the processes for making them.”
The fact sheet is available for consumers to access on the independent Super Guru website – www.superguru.com.au – a source of information, tools and tips for all things super.
ASFA has also released a Best Practice Paper, available exclusively to its members, on managing death benefit claims.
“Death is an emotional time for members and their families. Handling claims in a consistent manner, and with sensitivity, can help ease the complexities of this process, and improve what is generally a somewhat difficult experience for fund members.”
“The majority of the time, claims are paid in a timely manner. Many claims can be made online, and help is available through your fund and they rarely require legal input. Most of the time, involving lawyers can drive up the costs and complexity of the process unnecessarily.
The Best Practice Paper covers a range of topics including: the payment of death benefit lump sums and income streams, and the tax treatment of each; dealing with binding and non-binding nominations; and determining the eligibility of dependents and the allocation of benefits between them.
“These two resources can work in tandem to deliver the most streamlined and effective processes for funds and fund members,” Ms Vamos concluded.
To download a copy of the fact sheet, click here.
To inquire about the Best Practice Paper ‘Managing death benefit claims’, click here.
For further information, please contact:
Lisa Chikarovski: Manager – Consumer Strategy, Media and Public Affairs, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia's superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.