11. Your death benefit

A death benefit provides an important financial safety-net for your family.

• How the death benefit works
• Who receives the benefit?
• What your dependants will need to do in the event of your death
• What happens next?

How the death benefit works

Should you die whilst you are a member of the Russell SuperSolution Master Trust (Russell SuperSolution), a lump sum benefit will be paid. The lump sum is normally equal to your leaving service benefit plus, if you are eligible, an insured component. You should read your Product Disclosure Statement (PDS) for specific details about how your death benefit is calculated and whether you qualify for an insured amount.

If you die whilst a member of Russell SuperSolution, your account balance will be transferred to the Australian Cash investment option as soon as we receive a certified copy of your death certificate, and any applicable fees will continue to be deducted until your benefit is paid.

Who receives the benefit?

The Trustee of Russell SuperSolution makes the final decision on who will receive your death benefit. Superannuation law seeks to ensure that it is paid to people with whom you have a close personal relationship or who are financially dependent on you. You should nominate who you would prefer your benefit to be paid to in the event of your death. You may make either a binding or preferred nomination¹.

The Trustee will consider your nomination before paying out the money, so it’s important to keep it up-to-date, and to pay attention to who qualifies as a dependant. It’s a good idea to review your nomination whenever your circumstances change, e.g. through marriage, divorce or if you have a child.

If you have made a binding nomination which is valid when you die, the Trustee must pay your benefit as you have instructed. If you have a preferred nomination the Trustee may use their discretion in paying your benefit and may not distribute it as you have nominated.

¹You can read more about nominating a beneficiary in our ‘Nominating your beneficiary(s)’ fact sheet.

What your dependant(s) will need to do in the event of your death

Claiming a benefit is a three step process. Your dependants or legal representative will need to correspond with Russell SuperSolution.

Step 1: Contact us
Your dependant(s)/legal representative should first call our Helpline on 1800 555 667 and advise us of your death. Russell SuperSolution will then issue your dependant(s)/legal representative with a letter outlining what they need to do to begin the death benefit claim process.

Whilst your dependant(s)/legal representative are waiting to receive this letter, they can begin collecting the information for steps 2 and 3.

Step 2: Collate relevant documents
To assist the Trustee in making its decision, your dependant(s)/legal representative will need to provide certified² copies of the following documents:

• Death certificate
• Birth certificate of the deceased
• Marriage certificate for current spouse (if applicable)
• Birth certificates for all children of the deceased (if applicable)
• Last Will and Testament (if applicable)
• Name and postal address of all potential dependants
• Letters of Administration or a Grant of Probate if the benefit or part of the benefit is payable to the deceased member’s estate

Note that additional information may be required to help assess merit of the claim and distribution of the benefit.

²Certified means that an authorised person (such as a Justice of Peace) has sighted the original and copy, and provided written certification on the copy that it is a true copy of the original.

Step 3: Find someone to fill in a Statutory Declaration
We will issue your dependant(s)/legal representative with a Statutory Declaration with the initial letter. A close family friend or close work colleague, who has known you for a period of over five years, will need to fill in a Statutory Declaration form confirming your family circumstances.

What happens next?

Once all the required documentation has been received, the relevant details will be forwarded to the insurer in order to facilitate payment of any insured component. At the same time, the Trustee will conduct any necessary investigations regarding your dependants. The Trustee will consider the distribution of the benefit when these investigations are complete.

The claims process can be complex depending on the circumstances. Your dependant(s)/legal representative should note that the claim process can sometimes take several months before any benefit is paid. The Trustee will of course try to process the claim as soon as possible.

Trustee’s decision
Once the decision is made, the Trustee will write to all involved parties to inform them:

• the date the decision was made
• the percentage of payout to each eligible dependant

If there is a valid binding nomination
The death benefit will be paid as you had instructed as soon as both the insurer and Trustee have considered the claim. Minimal documentation will still need to be provided to the Trustee before payment is made.

If there is a preferred nomination, no nomination or an expired or invalid³ binding nomination
The Trustee may make a decision, notify all potential beneficiaries of the decision, and provide them with 28 days to object. This process is called ‘Claim Staking’. Claim Staking is used in certain circumstances only. If there are no objections received from the potential beneficiaries within 28 days of receipt of the letter regarding the distribution, the death benefit is paid according to the Trustee’s decision. If an objection is received within the 28 day period, the decision will need to be reconsidered by the Trustee. Please note that no benefit will be paid to any party whilst the Trustee is undertaking the Claim Staking process.

Based on the information provided, the Trustee may or may not change its original decision regarding the distribution of the death benefit. If any party does not agree with the final decision, they may be able to take their complaint to the Superannuation Complaints Tribunal.

If no Claim Staking is conducted the death benefit will be paid as soon as possible after the Trustee’s decision is reached.

³ A nomination is not valid if the person or people nominated do not meet the definition of dependent under superannuation law. You can read more about nominated beneficiaries in our ‘Nominating your beneficiary(s) fact sheet.

Need more information?

Log in to SuperSolution to download a copy of your Product Disclosure Statement (PDS). The PDS covers how your death benefit is calculated. You may also wish to review your beneficiary nomination, and complete a new nomination of beneficiaries form. You can call our Helpline on 1800 555 667 if you have any questions.

Issued by Total Risk Management Pty Ltd ABN 62 008 644 353, AFSL 238790, RSE L0000260, (“TRM”). This document provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. The information has been compiled from sources considered to be reliable, but is not guaranteed. Any examples have been included for demonstrational purposes only and should not be relied upon for the purpose of making an investment decision. Past performance is not a reliable indicator of future performance. An invitation to apply to join the Russell SuperSolution Master Trust is made by TRM in a Product Disclosure Statement (“PDS”).  Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in Russell SuperSolution. The PDS is currently available by phoning 1800 555 667 or by visiting www.russell.com.au. TRM is part of the Russell Investment Group (“Russell”). Russell or its associates, officers or employees may have interests in the financial products referred to in this document by acting in various roles including broker or adviser, and may receive fees, brokerage or commissions for acting in these capacities. In addition, Russell or its associates, officers or employees may buy or sell the financial products as principal or agent.

Website: www.russell.com.au   Helpline: 1800 555 667     Email: yoursupersolution@russellsuper.com