Binding death benefit nomination and payment of lump sum death benefit
196U Binding death benefit nomination and payment of lump sum death benefit
In this regulation —
Term Allocated Pension (Lump Sum) Member means a Term Allocated Pension Member who has selected a lump sum death benefit.
If a Term Allocated Pension (Lump Sum) Member dies while there is still an amount in the Member’s term allocated pension account, the Board must pay a benefit (the Member’s death benefit) of an amount equal to the balance of the account in accordance with this regulation.
A Term Allocated Pension (Lump Sum) Member may at any time give the Board a notice (a binding death benefit nomination) that —
directs the Board to pay the whole of any death benefit that may become payable in respect of the Member to —
a permitted nominee of the Member specified in the notice; or
2 or more permitted nominees of the Member specified in the notice, in percentages specified in the notice (the aggregate of which must equal 100%);
and
includes a statement that the nomination is to remain in force —
indefinitely; or
for the period approved by the Board under regulation 246C(2) at the time the nomination is given.
A binding death benefit nomination given by a Term Allocated Pension (Lump Sum) Member comes into force when it is received by the Board and remains in force until any of the following occurs —
the Board receives a notice given by the Member revoking the binding death benefit nomination;
the Board receives a subsequent binding death benefit nomination given by the Member;
the Member ceases to be a Term Allocated Pension Member;
for a nomination that includes a statement referred to in subregulation (3)(b)(ii) — the period referred to in that subregulation expires.
If a binding death benefit nomination is in force in respect of a Term Allocated Pension (Lump Sum) Member when the Member dies, the Board must pay the Member’s death benefit in accordance with the nomination unless any person specified in the nomination as a person to whom all or any percentage of the death benefit is to be paid —
cannot be found after the Board has made reasonable enquiries; or
is not a permitted nominee of the Member at the time of the Member’s death.
If no binding death benefit nomination is in force in respect of a Term Allocated Pension (Lump Sum) Member when the Member dies, or subregulation (5)(a) or (b) applies, the Board must pay the Member’s death benefit to the executor of the Member’s will or administrator of the Member’s estate.
[Regulation 196U inserted: SL 2021/49 r. 11.]
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