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Ask Peter Scott

July 4th, 2016

Question 1:

I have just retired and my wife and I are applying for the Age Pension, we also intend to draw a pension form First Super. In reviewing the application I noticed we have several payment options available if I should die after commencing the Pension. Could you please explain how these options work?


First Super offers Allocated Pension members 2 options:

  1. The Reversionary Beneficiary Option; and
  2. The Lump Sum Option

If you nominate your spouse as the ‘Reversionary Beneficiary’, on your death, your spouse would continue to be paid the pension from your account.

Your spouse, as Reversionary Beneficiary, has the same rights that you had with the account, including:

  • Choose to be paid a lump sum
  • Set their own level of payment within the limits imposed by law; and
  • Set their own investment strategy

If you choose the ‘Lump Sum Option’, you can nominate one or more people to receive your lump sum. When making the nomination you can choose a Binding or Non-Binding Death benefit nomination.

A Binding Nomination of Beneficiary: Allows you to provide a written instruction who you wish to receive the balance of your Pension Account in the event of your death. The Trustee is legally bound to follow your instruction, provided it is legally valid and the person(s) nominated qualify for payment under the law when the benefit is paid. A Binding Death Benefit Nomination needs to be renewed every 3 years.

A Non-binding Nomination of Beneficiary: Allows you to nominate the people you would prefer to receive the balance of your Pension Account in the event of your death. It will be taken into account when making a payment, but The Trustees must ultimately decide who should receive your Death Benefit  according to law.

You should seek the appropriate advice before making your nomination.

Question 2:

I am an Australian Resident taxpayer and I plan to live and work overseas for the next few years, I have 2 questions:

  1. Can I continue to make contributions to my First Super account while I am overseas?; and
  2. Can I access my First Super benefits while living overseas?


If you become a ‘Non-resident’ for tax purposes, you can continue to make contributions to your First Super account provided you meet the current superannuation contribution payment guidelines:

There are prescribed rules and limits to the amount of contributions you can make to your super each financial year.

Non-concessional super contributions (after-tax) limit for 2016/17 Financial Year

Under 65 as at 1 July:
$180,000 p.a. or $540,000 over a 3 year period.

Aged 65 and under 75 as at 1 July:
$180,000* a year (subject to the work test)

*To meet the work test requirements a person must be gainfully employed i.e. employed or self-employed for at least 40 hours within 30 consecutive days in the financial year the contributions are made.

First Super allows Non-resident members to contribute to their account. To make a contribution, please complete the Contribution Form. The form sets out how you can transfer the contribution into your account.


2. A First Super Non-resident member can access their account if they meet the appropriate ‘Condition of Release’ requirements at the time they claim, e.g. Retirement Transition to Retirement, Permanent Incapacity.

Please contact First Super on 1300 360 988 if you wish to make a claim on your account.

You need to remember that some benefits may be subject to Tax at the time you claim and as a non-resident, tax issues may arise in your country of residence.

This article was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as Trustee of the First Super superannuation fund (ABN 56 286 625 181). It does not consider your personal circumstances and may not be relied on as investment advice. Content was accurate at the date of issue, but may subsequently change. You should contact us on 1300 360 988 for updated information and to obtain a copy of the product Disclosure Statement.