HESTA follows Cbus on death benefit nomination changes

HESTA has introduced an option for members to make a non-lapsing binding death benefit nomination.

Recently, Cbus also rolled out changes to fund's death benefit nominations, where it offered new non-lapsing binding death benefit nominations allowing members to make them online, effective October 16.

This follows research by Super Consumers Australia (SCA) which found at least 15.5 million Australians may not have a binding death benefit nomination. The Your Say on Super survey showed two-thirds of Australians have not been contacted by their super fund over the past year encouraging them to make a binding death benefit nomination.

"You can only nominate your dependants, your legal personal representative (usually the executor or administrator of your estate), or both. As long as your nomination remains valid, we must pay your benefit according to your nomination," HESTA said.

"Your nomination stays in place until you change it. In circumstances specified by the trustee, such as your nominated beneficiary dying before you, your nomination will not be binding on the trustee."

HESTA added members can make or update non-lapsing binding nominations online, and if the member already has a lapsing binding nomination in place, they will need to cancel it first.

Along with the new option, HESTA continues to offer lapsing binding death benefit nominations, which must be renewed every three years, and non-binding beneficiary nominations.

This is in contrast to Cbus, which will no longer offer non-binding death benefit nominations and removed non-binding nominations listed on member accounts from August 7.

Last October, Cbus agreed to pay $23.5 million to settle the matter brought against it by ASIC in relation to delayed death benefit payments to members. Some members were impacted by delays to death and Total and Permanent Disability (TPD) claims processing, having to wait more than 90 days.