Unclaimed benefits for deceased members
When you're notified of the death of a member of your super fund, you should make all reasonable efforts to contact the beneficiaries. This is in accordance with the governing rules of the fund and the law.
Whether some or all the member's money becomes unclaimed depends on the circumstances.
An amount payable in respect of a member is taken to be unclaimed super money (USM) when all the following apply:
- The member has died.
- You determine that, under the governing rules of the fund or by operation of law, a benefit (other than a pension or annuity) is immediately payable in respect of the member.
- You have not received an amount in respect of the member (and, in the case of a defined benefits super scheme, no benefit has accrued for the member) within the last 2 years.
- After making reasonable attempts to contact and after a reasonable period has passed, you're unable to ensure the benefit will be received by the person who is entitled to receive the benefit.
For example, if all beneficiaries have been identified, but some cannot be contacted despite reasonable attempts (or you're unable to ensure the benefit will be received by the identified individual), the entitlements for those will be unclaimed money.
Information required after reporting
If we are contacted by a potential beneficiary of a deceased estate, we will contact you. This is regardless of whether money is paid to us as unclaimed money, a lost member account, an inactive-low balance account or superannuation of former temporary residents.
We need to establish whether you were either:
- the holder of the money at the time of the member’s death
- under a binding obligation to pay the member's benefit to a specific or nominated person.
This information is necessary to help us determine claims to the money.
Example: no amounts received for over 2 years
ABC super fund receives confirmation a member has died. They determine a benefit is immediately payable in respect of the member.
There have been no amounts received for over 2 years. Over a reasonable period of time, they make extensive efforts to identify and contact potential beneficiaries.
They determine that 3 beneficiaries are entitled to claim a death benefit – Brian, Gertrude and Ali – but can only locate Brian.
They have satisfied themselves of Brian's entitlement, so his determined share of the money can be paid to him as a death benefit.
The fund is unable to locate or contact Gertrude or Ali, so their share of the money becomes unclaimed money.
End of example
Example: amounts received shortly before the member's death
TUV fund receives notification that a member, Angelique, has died. Angelique's employer sends a contribution shortly before her death.
Over a period of 18 months following Angelique's death, TUV fund make extensive efforts to identify and contact potential beneficiaries. Their efforts are unsuccessful.
Angelique's money is not unclaimed. Although she is deceased and the fund has made reasonable efforts over a reasonable period to identify and contact the people entitled, the money is not unclaimed. This is because it has been less than 2 years since a contribution was made to Angelique's account.
End of example