Beneficiaries and your super

What happens to your super when you die? 

Your superannuation is likely, or will be one of your largest assets. Therefore, it’s important to consider what will happen to it if you die. Nominating who will receive your super (we call them your ‘beneficiaries’), will help ensure it goes to those who are financially dependent on you. 

It is important to keep your nomination details up to date to reflect any changes in your personal circumstances.

With REI Super you can have three types of beneficiaries.


1. Non-binding (Preferred) nominations

(Available to Super and Pension members)

Non-binding beneficiaries are those you wish to receive your super and any insurance benefit upon your death. A non-binding nomination is not formally binding on the trustee and only acts as a guide for the trustee in deciding how to pay your Death Benefit. 

You can make, change or remove your non-binding beneficiary nomination at any time online in our Member portal or complete the Change your details form.

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2. Binding death beneficiary nominations (BDBN)

(Available to Super and Pension members)

A valid binding beneficiary nomination will ensure your REI Super benefits are paid to the eligible beneficiaries you nominate, as long as they are classified as a dependant or your legal personal representative, and in accordance with legislative requirements.

A binding nomination is valid for three years, unless it is renewed, changed or cancelled earlier – if you do not renew it before the end of the three-year period from last signing, it becomes a non-binding nomination. The Trustee will endeavour to notify you when the binding nomination is due for renewal, however it is your responsibility to ensure your nomination is kept up to date. 

For your binding nomination to be valid

The person(s) you nominate as your beneficiary(ies) must be:

  • Your dependant(s) (see below for the definition of dependant), or 
  • Your legal personal representative – the executor or Administrator of your Estate.
  • You must sign and date the binding nomination form in the presence of two witnesses over the age of 18, who also sign the form. All signatures must be signed on the same date and the witnesses cannot be your beneficiaries.  
  • The total of allocated proportions MUST equal 100%.
  • We must receive the original Binding nomination in the mail and not a photocopy or scanned copy. To put a binding nomination in place: Download the Binding Death Benefit Nomination form. 

3. Reversionary

(Available to Pension members only)

A reversionary beneficiary continues to receive your pension after your death, your pension will be transferred to their name instead of being paid out as a lump sum. You can only nominate one person as a reversionary beneficiary. A reversionary beneficiary cannot be nominated on an existing pension account and can only be established when creating a new pension account. 

Who can you nominate as a beneficiary?

The beneficiar(ies) you nominate must be a ‘dependant’ or your legal personal representative. A dependant includes:

  • Your spouse (legal, de facto a=or same sex partner);
  • Your children (including step, adopted, ex-nuptial);
  • A person who is financially dependent on you,
  • A person whom you have an interdependency relationship with.


What is an interdependency relationship?

Two persons have an interdependent relationship if: 

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

An interdependency relationship may also exist if the two people have a close personal relationship but do not satisfy the other requirements of an interdependency relationship because either or both of them suffer from physical, intellectual or psychiatric disability.

Superannuation is not an estate asset like your other assets such as property, investments and savings. This means that your Will does not automatically cover your superannuation. 


What happens if you don’t nominate your beneficiary(ies) or your binding nomination is invalid?

If you die without making a nomination or your binding nomination is invalid or ineffective when you die, the Trustee will follow relevant laws to decide who receives your money. This may be to either one or more of your dependants or to your legal personal representative. Where this happens, the Trustee will consider your dependants’ circumstances at the time of your death.


Important things to note: It is recommended you seek Tax and or Legal Advice prior to implementing your Binding death beneficiary nominations (BDBN), as there maybe potential adverse tax implications for certain beneficiaries. When a BDBN is in force, the Trustee will have no discretion on beneficiary payments or to act on their behalf in the event of a claim. 

Disclaimer: The information contained on this webpage does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Member should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 October.