S Superannuation
Susan Taylor, Communications Adviser Super SA
Separating? What about super? Y
our super might not be the first thing that comes to mind after you make the decision to separate. While you can’t access your super, it is still important to know the facts and what impact action, or inaction, might have down the track. You should consider whether you still want your estranged spouse to be the recipient of your super and insurance (should anything happen to you). In the event of your death, your Triple S super account balance, including any insurance, will be paid to your spouse, or de facto spouse. If you don’t have a legal or de facto spouse at the time of your death, your entitlement will be paid to your estate and distributed according to your will. You can, however, make a choice. As a Triple S member, you can nominate what is known as your legal personal representative (LPR) to receive your super. He or she will distribute it in accordance with your will. This is a legally binding death benefit nomination, valid for three years. So, if you die, your super, plus any insurance entitlement, will be paid to your estate and distributed according to your will, and not automatically paid to your spouse. It is therefore important that your will is up to date and reflects your wishes. If you get married or divorced, or your circumstances change in some other way, you should update your will accordingly. 32
Police Journal
Nominating your legal personal representative is not the same as nominating a beneficiary. The rules do not allow you to nominate specific beneficiaries.
Family law and property settlements Super is considered an asset and might form part of any property settlement on separation or divorce. If you have permanently separated or divorced, family law legislation allows you to split and share your super with your former partner in the same way as other property. It is up to both of you to agree on splitting your super or how it is to be shared. Splitting can be done via a superannuation agreement or by a court order. Once a property settlement occurs, your former spouse would no longer be entitled to receive your super benefit on death.
An example John was a police officer for eight years and married for 10 when he and his wife, Karen, decided to separate. They didn’t divorce or enter into a property settlement under the Family Law Act. John, a Triple S member, began a new relationship with Christina and they had been living together for five years when John suddenly died.
In the event of your death, your Triple S super account balance, including any insurance, will be paid to your spouse, or de facto spouse.
John’s super entitlement is worth $200,000 and, even though he had a will, he never nominated a legal personal representative with Super SA. This meant that Karen was still recognized as John’s legal spouse and was entitled to part of his Triple S super. Christina was also to receive an entitlement as his de facto spouse. Had John not wanted any of his benefit to be paid to Karen, he could have: • Divorced Karen. • Entered into a family law agreement. • Nominated a legal personal representative.
Get advice Making a binding death-benefit nomination to appoint an LPR is an important decision and can have serious repercussions. You should speak to your financial planner or lawyer if you’re unsure or have questions. • See the Triple S fact sheet (Beneficiaries and your super entitlement) on the Super SA website. • For a full definition of spouse, refer to the online glossary at supersa.sa.gov.au.
The information in this article is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Super SA recommends that before making any decisions about Triple S, you consider the appropriateness of this information in the context of your own objectives, financial situation and needs, read the Product Disclosure Statement (PDS) and seek financial advice from a licensed financial adviser in relation to your financial position and requirements.
