AUSTRALIA - The Superannuation Complaints Tribunal (SCT) has called for clearer guidance and information regarding death benefits and how they are handled.
Due to the complex nature of death benefits, it is often possible that more than one party may have a legitimate claim to dependency. The SCT took the view that it was most suitable to look for the moral or legal right of the claimants to seek financial support in retirement had the superannuation scheme member not died.
The SCT said there was a lack of understanding among members and legal advisers about the operation of superannuation death benefits. In particular, the SCT underlined the interaction between superannuation and wills and the legal distinction between nominating preferred beneficiaries and binding death nominations.
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