Make sure your super goes to the right people

It’s called nominating a beneficiary, and it’s one of the most important things you can do to look after the people you care about.

Hostplus Service Centre team members share their perspectives on why beneficiary nominations matter, and how they help members feel confident and reassured. 

A beneficiary is the person (or people) you choose to receive your super and/or insurance benefit if you pass away. There are three types of nominations:

Binding nomination: this is a legally binding instruction to Hostplus. As long as it’s valid, your super must be paid to the person or people you’ve nominated. Binding nominations need to be renewed every three years.

Non-binding nomination: this tells us your preference but isn’t legally binding. We’ll consider it, but we have discretion to decide who receives your super.

Reversionary nomination: this is available only when opening a pension account, like a Hostplus Pension. It allows your pension payments to continue to your nominated beneficiary after you pass away.

“Members definitely feel more reassured once they apply a binding nomination,” says Theo, a Hostplus Member Services Officer. “In many cases, they’re simply unaware of what it all means. Once it’s explained, they’re far more comfortable.”

Binding nominations provide certainty. Unlike non-binding nominations, they ensure your super will go to the people you’ve chosen, as long as the nomination is valid.

“I always tell people two facts,” continues Theo. “A binding nomination is a legal document, and it gives you more certainty that what you nominate will  happen.”

Many members have good intentions when nominating a beneficiary, but misunderstandings about eligibility and process can lead to confusion.

Not quite. Super laws require that your beneficiary be one of the following:   

• your spouse or partner
• your child
• someone financially dependent on you
• a person you’re in an interdependent relationship with
• your legal personal representative (e.g. the executor of your will).

You can nominate someone who doesn’t fall into the above categories – like a sibling or a friend – but only if they meet the criteria for an interdependent relationship. Typically, you’d need to live together and provide ongoing support to each other.

Not true. As Sophia, Hostplus ServicePlus Centre Lead, explains, “Members tend to think that by nominating beneficiaries through Member Online, it’s all secure and guaranteed. But unless it’s a valid binding nomination, that’s not the case.”

A valid binding nomination must be made by completing a Binding Death Benefit Nomination form, signed by two witnesses who aren’t named as beneficiaries, and sent to Hostplus or handed in at one of our ServicePlus Centres.

While this process may seem like a hassle, it only needs to be done once every three years. The effort may be worth it to give you peace of mind.

“If there’s a binding nomination, claims can be processed more quickly,” says Sophia. “And it means you have the security of knowing that your benefit will be paid out to those nominated.”

Not necessarily. If you don’t make a nomination, Hostplus will decide who receives your super based on the rules in our Trust Deed and relevant laws. It may not go to the person you intended and can take time.

Sophia says that errors like misspelled or wrong names or incorrect dates of birth can delay or complicate claims or make them invalid. To avoid potential issues:   

• make sure all details are correct 
• clearly state each beneficiary’s share of your benefit and ensure the total adds up to exactly 100%
• renew your binding nomination every three years – we’ll remind you before it expires
• speak to a financial planner or adviser for guidance.

More than 60% of Hostplus members haven’t nominated a beneficiary. If you’re one of them, now’s a great time to act. Reach out to the friendly Hostplus team if you have any questions about making a nomination.

 “When the process is explained properly, most members have no concerns,” says Theo. “It’s always down to the education we can offer.”

• Learn more about beneficiaries and watch our explainer video here.
• Our expert financial planners can help you understand your options and plan for a positive future. Contact us on 1300 303 188, email us, or book a callback today.

You can:

• make a non-binding nomination via Member Online
• make a binding nomination by downloading this form and sending it to us.

When Sarah passed away unexpectedly at 42, her family faced a difficult time. One thing they didn’t have to worry about was her super.

Sarah had made a binding nomination through Hostplus, naming her husband as her beneficiary. Because her nomination was valid and up to date, her super was paid directly to him, quickly and without complications. 

With so much to manage already, having her super sorted meant her family didn’t have to deal with a lengthy claims process or uncertainty about who would receive the benefit. It helped ease the burden during an emotional time.