Zurich urges superannuation reform
Wednesday, 19 November 2008 12:40pm
Zurich Financial Services is calling the government to review superannuation legislation after a report found non-dependants could potentially miss out on death benefits.
The firm's Death and taxes are certain - super still confounds whitepaper found complex superannuation legislation is causing retirement and estate planning problems for certain beneficiary groups.
The report found people that aren't the member's spouse or child may not receive the member's death benefit.
"The unfairness lies in the treatment of non-dependant who are subject to taxation, whereas those paid to certain dependants are not, and that income streams cannot be paid to non-dependants," said Dimitri Diamantes, Zurich technical services manager.
"Adult children, for example, even if they fit into one of the categories, are not entitled to receive the death benefit as an income, however, a financially dependant nephew could."
The report identified several other issues in superannuation which Diamantes said need the government to review.
"It is preferable to have a coherent superannuation policy rather than one which treats people differently, whether directly or through effectively denying benefits to those who do not have access to high quality advice," he said.
Michael Hobbs
