Beneficiary nomination

Why make one?

A reversionary beneficiary nomination binds CSC to pay your Standard retirement income stream or Transition to retirement account balance when you die to the single dependant you nominate. Choosing this option:

• provides certainty about who will receive your CSCri income stream account balance
• overrules any previous nominations of any type
• does not expire
• means it’s the only nomination possible—you can’t have a reversionary nomination as well as a binding or non-binding nomination.

How we’ll pay your benefit

We’ll pay your income stream to your nominated dependant until your account balance reaches zero. While your dependant is receiving the income stream, they will have the authority to manage the account, for example switch investment options, change the annual payment amount and make lump sum withdrawals.

Note that if an income stream is payable to a child over 18 who is:

• disabled, we will pay the income stream until the account balance reaches zero
• not disabled but who is a financial dependant, we will pay this only until the child turns 25, at which time we will pay them a lump sum for the remaining account balance. (Otherwise the income stream stops at age 18.)

How to make reversionary beneficiary nomination

When you apply for a CSCri account and complete the CSCri Application, there is a section for nominating your reversionary beneficiary (if applicable). You can also complete and return a Beneficiary Nomination Form.

Why make one?

A valid binding beneficiary nomination generally binds CSC to pay your CSCri income stream account balance when you die to the binding beneficiaries you nominate.

Choosing this option:

• provides certainty about who will receive your CSCri income stream account balance
• overrules any previous non-binding or binding nominations, of any type—but not a reversionary nomination.

How we’ll pay your benefit

We’ll pay your income stream account balance to the beneficiary/beneficiaries you nominated as a lump sum—unless it’s unlawful to do this under super law—for example, if the beneficiary you nominated doesn’t meet the requirements listed under Who can I nominate as a beneficiary?

How to make a valid binding beneficiary nomination

Complete the Beneficiary Nomination Form and return the form to us.

Note, under super law, strict rules apply to binding beneficiary nominations. For your nomination to be valid you must:

• nominate your dependant or your legal personal representative
• record the proportion of the benefit payable to each person in whole numbers and make sure all proportions add up to 100%
• date and sign the nomination in the presence of two witnesses who are both over 18 and not listed as beneficiaries in the nomination
• make sure the ‘Witness declaration’ section of the form is completed by each witness, confirming that you signed and dated the nomination before them
• keep the nomination up to date by reviewing it every three years and amending if you need to.

Failing to meet these conditions means the form you send us will be considered invalid, so we’ll treat your nomination as non-binding. If you die, we’ll make a decision about who receives your benefit and how to divide it.

Did you know? Invalid or expired binding death benefit nominations are treated as non-binding nominations for decision-making purposes.

How to renew your binding beneficiary nomination

Binding nominations are valid for three years from the date they are originally signed, subsequently confirmed or amended, and we’ll help you keep it up to date by sending you a reminder three months before it’s due to expire.

You can renew an existing binding nomination without completing a new form, as long as the renewal is received within 3 years. You can do this by logging in to your online services account and completing the renewal declaration to confirm and extend your current beneficiary nomination.

Why make one?

A non-binding (preferred) beneficiary nomination guides us in paying your CSCri income stream account balance to the person or people you’d prefer your benefit to go to when you die. This type of nomination is not binding on CSC.

Choosing this option:

• gives you a say in who you’d prefer your benefit to go to, but lets us manage the process under super law to consider first who it has to go to
• is fuss-free—a non-binding nomination doesn’t expire.

How we’ll pay your benefit

If you die, we may at our discretion pay your CSCri account balance to:

• one or more dependants and/or
• your legal personal representative, or
• if we cannot find a dependant or your legal personal representative, to any individual we decide.

In exercising our discretion, we usually consider any application made by your spouse, your child or a person in an interdependency relationship with you or any other person who considers they have a claim.

We may also take account of any beneficiaries nominated in an expired or invalid binding nomination, or in your will. We may use other available avenues to identify potential recipients too. This means, we may:

• ask your employer for help in identifying family members
• contact your family and/or solicitor to identify possible beneficiaries
• advertise in newspapers for potential claimants where we can’t identify your family members.

How to make a non-binding beneficiary nomination

Login to CSCri member service online and click the My Details tab to make or change a non-binding nomination.  Or complete the Beneficiary Nomination Form and return the form to us.

You can renew (binding), change or cancel your beneficiary nominations at any time by completing and returning the Beneficiary Nomination Form.

If you’re not sure who you’ve nominated, or to check that any beneficiary changes you’ve asked for have gone through, log in to CSCri member service online and go to My Details > Beneficiaries. 

We are generally required to pay your benefit in accordance with the valid binding nomination form we receive from you, but there are exceptions to this.

We may not be required to pay a death benefit in accordance with a binding nomination if we are:

• subject to a court order (such as a Family Court of Australia order) preventing payment of the benefit, or
• aware you are subject to a court order that prohibits or restricts you from giving a binding nomination or requires you to amend or revoke such a nomination.

We are not required to pay your benefit in accordance with your non-binding nomination, but we use this as a guide to paying your benefit after your death.

CSC may make a decision about paying your super benefit, notify all potential beneficiaries of the decision, and provide them with 28 days to object. This process is called ‘Claim Staking’, and is used in certain circumstances only.

Claim staking is the process where when a superannuation consumer dies the trustee provides information to identified potential beneficiaries about how the trustee proposes to distribute the death benefit. The potential beneficiaries are then able to object to the proposed distribution.

If there are no objections received from potential beneficiaries within 28 days of them being notified, the death benefit will be paid according to CSC’s decision. If an objection is received within the 28-day claim-staking period, the decision will need to be reconsidered by CSC.

Please note, no benefit will be paid to any party during the Claim Staking process.

Based on the information provided, CSC may or may not change its original decision regarding the distribution of the Death benefit.

If the complainant(s) does not agree with the final decision, they may be able to take their complaint to the Australian Financial Complaints Authority within the 28 days from the date they receive written notification of the final decision. If no Claim Staking is conducted (for example, in the event that the entire benefit is to be paid to your estate) the Death benefit will be paid as soon as possible after CSC’s decision is reached.