What is a reversionary beneficiary?
A reversionary beneficiary is a nominated beneficiary applied during the application process of the pension account that dictates who will continue to receive a tax effective income stream payment (called a ‘Reversionary Pension’) in the event of a pension member’s passing.
You can nominate your spouse (including a de facto spouse) as a reversionary beneficiary. In some instances, you can also nominate your child as a reversionary beneficiary. More details on who you can nominate can be found on page 9 of the pension PDS.
Once your pension account in the Future Super Pension Plan has commenced, your reversionary beneficiary nomination cannot be changed, except in very limited circumstances (such as the death of the nominated spouse or on divorce or separation).
If your reversionary beneficiary does not survive you, the remaining balance of your pension account will be paid out at the discretion of the Trustee, taking into account any nomination of beneficiaries you made prior to your death.