Death benefit claim

This fact sheet provides basic information on the process involved in making a claim for a death benefit following the death of a fund member.

What is the death benefit?

A death benefit is generally made up of two parts as follows:

1. Superannuation Account Balance – The member’s account balance made up of personal contributions (if any), employer contributions, and accumulated earnings, less fees and taxes.
2. Life Insurance – The insured amount (if any) that the member held at the date of death. Limitations may apply where a death is deemed to be due to a self-inflicted act. Further details can be found in the Insurance Guide.

Who can be paid a death benefit?

The Trustee is bound by the provisions of the Superannuation (Industry) Supervision Act 1993 and Superannuation (Industry) Supervision Regulations 1994 and the Fund’s Trust Deed when determining who can be paid a death benefit.

The order in which the Trustee will consider entitlement to payment is:

1. Dependant (as defined in the Act) – which includes:
   • The spouse of the deceased, either by marriage or de facto spouse of either sex,
   • Any natural, adopted or step-child of the deceased,
   • Any person who was in an “interdependency” relationship at the time of the member’s death,
   • Any other person who in the opinion of the Trustee was wholly or partially financially dependent upon the deceased at the date of death.
2. Legal Personal Representative (LPR); who will normally be the Executor of the member’s estate (either appointed as the executor in the member’s will, or by the Courts where the person has been named as the administrator in Letters of Administration).

It should be noted that a LPR has equal standing with regard to consideration as a dependant (e.g. the Trustee may split the payment between dependant(s) and the LPR, although it is unusual to do so).

3. Non-Dependants; any applicant who did not satisfy 1) or 2) above is a non-dependant. Under the Trust Deed, only if the Trustee is unable to identify any Dependants or any LPR, they may make payment to one or more Non-Dependants. It should be noted that payment to non-dependants is only possible where there are no Dependants or LPR, the benefit cannot be shared between a Non-Dependant and a Dependant or LPR.

How to claim a death benefit?

In order to fulfil its duty to decide who should be paid a death benefit, and to claim the Life Insurance (if any), the Trustee must gather certain information about the late member, their dependants and potential beneficiaries. The information required includes, but is not limited to:

• A correctly completed and signed death benefit claim form identifying all potential claimants. This form may be requested by calling 1800 808 614 or via email at service@ausfoodsuper.com.au
• A certified copy* of the member’s Death Certificate, plus any additional reports if applicable (e.g. Coroner’s Report). The Certificate should include the cause of death; otherwise it will be necessary to obtain some other form of official documentation that provides that information. The Death Certificate must be in English. Where the Certificate is not in English the beneficiary is responsible for arranging for a certified translated version in English.
• A certified copy* of the member’s Birth Certificate or other evidence of age,
• A certified copy* of the member’s Marriage Certificate if applicable,
• A certified copy* of any documentation confirming a member’s divorce or separation if applicable,
• A certified copy* of Birth Certificates for any children for whom a claim has been received,
• Any Statutory Declarations received from or in relation to any claimant or potential beneficiary,
• Any correspondence from a claimant, potential beneficiary or any person on behalf of a claimant or beneficiary.

*  A certified copy is a copy of an original document that an authorised person (e.g. Justice of the Peace) has certified as being a true copy of the original. For details of who might be qualified to make this certification please refer to the Australian Food Super fact sheet “Statutory Declaration and Certified Copy”.

Why does the Trustee have to gather this information?

In addition to determining who should receive the death benefit, any insurance cover is subject to the terms and conditions set out in the insurance policy, so the Trustee must prove to the insurer that the late member was entitled to the insurance by providing information including proof of age, proof of death, evidence that the member was eligible for cover and that the level of cover provided is correct.

Benefits are not payable where death is deemed to be as a result of a self-inflicted act within 13 months of cover commencing/increasing/reinstating/recommencing. Therefore it is important that the Death Certificate shows the cause of death. Where no cause of death is shown, it will be necessary to obtain a copy of the Coroner’s Report, results of any Inquest, or documentation of some form of formal enquiry that provides a conclusion regarding the circumstances of the member’s death. In order to avoid any unnecessary delays, where a beneficiary acknowledges in writing that a member’s death was self-inflicted, we can refer the matter to the insurer without waiting for confirmation of the cause of death (i.e. a Death Certificate without cause of death).

Nominating who receives your death benefit

Your super does not automatically form part of your estate or get distributed according to your Will.

If you die while you are an Australian Food Super member, your death benefit will generally consist of your account balance and any insured death benefit payable through your account.

You can tell us who you would like to receive your death benefit by making either a preferred beneficiary nomination or a binding death benefit nomination.

Preferred beneficiary nomination

A preferred beneficiary nomination, sometimes called a non-binding nomination, tells the Trustee who you would prefer to receive your death benefit.

The nomination is not binding on the Trustee. The Trustee will consider your nomination, your personal circumstances, the Fund’s Trust Deed and superannuation law when deciding who should receive your benefit and in what proportions.

You can make or update a preferred beneficiary nomination through MemberAccess or by completing the relevant form.

Binding death benefit nomination

A valid binding death benefit nomination directs the Trustee to pay your death benefit to the eligible beneficiaries you have nominated and in the proportions you have specified.

For your nomination to be valid:

• each nominated beneficiary must be eligible under superannuation law
• the percentages allocated must total 100%
• the nomination must be completed using the required form
• it must be properly signed, dated and witnessed
• it must be received and accepted by Australian Food Super, and
• it must remain valid at the time of your death.