What you need to know about beneficiary nominations


Frequently asked questions


What happens if my nomination is invalid or I don’t make a nomination?

  • If your nomination is invalid or you don’t have a nomination, Rest will decide who to pay your Death benefit to from your dependants and legal personal representative (your estate). The decision will take into account your circumstances at the time of your death.

How will my beneficiaries be paid?

  • Your nominated beneficiaries will receive their benefit as a lump sum, unless they are eligible for a pension.  Rest will advise them of their options at the time of payment.
How will my beneficiaries be taxed?
  • A Death benefit will be taxed differently depending on whether it is paid to a dependant, non-dependant or to the deceased estate.  For tax purposes, the definition of dependant is generally the same as the definition used for people you can nominate as a beneficiary under super rules.  It’s also important to know that a child aged 18 or over is only considered dependent if they are financially dependent on you or there is an interdependency relationship.  We suggest you discuss this matter with your financial adviser who can guide you based on your circumstances.

What happens if I nominate my legal personal representative?
  • If Rest decides to pay your money to your legal personal representative, it will be paid as a lump sum to your estate. It will then be distributed according to the terms of your Will or the relevant intestacy legislation that applies to where you lived.
What happens to my nomination if I close my account?
  • If you choose to close or rollover your account the nomination on the original account will be cancelled, unless we advise you otherwise.  This includes any nomination you have on previous super accounts if you open a Rest Pension account and roll the full balance of your super account in.
What does ‘financially dependent’ mean?
  • This means that the person was wholly or partially dependent on you through regular continuous financial contributions from you.  That is, you provided 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.
What is an interdependency relationship?

Generally, two people have an interdependency relationship if:
  • they have a close personal relationship, and
  • they live together, and
  • 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 or care of a type and quality normally provided in a close personal relationship, rather than by a friend or flatmate
  • if the two people have a close personal relationship but do not meet the other criteria listed above because either or both of them suffer from a physical, intellectual or psychiatric disability, or were temporarily living apart.
What are the special conditions for nominating a child as a reversionary beneficiary?
  • If you choose to nominate your child as a reversionary beneficiary, there are restrictions on when and how they receive payments. To be eligible to receive your pension, your child must be under age 18 at the date of your death, or between 18 and 25 and financially dependent on you.
  • Pension payments will be paid up to age 25. After this, the balance will be paid as a lump sum. If the child is disabled however, (as described in the Disability Services Act 1986) they can continue to receive pension payments regardless of age.
  • It’s important to be aware that there may be social security implications if you nominate your child. You should always obtain independent, financial advice before making decisions.
How can deeming rules affect my nomination?
  • How you are impacted by deeming rules will depend on when your pension commenced. If your pension started prior to 1 January 2015 and you were exempt from the deeming rules, your new pension if commenced from 1 January 2015 or after will not be exempt from the deeming rules.
  • You might like to have a chat with a financial adviser if you are considering opening a new Rest Pension account in order to change your reversionary beneficiary.