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Death benefit entitlements vary depending on who the recipient is/will be in the event of your death.
Death of a member in service
Under the rules governing the New Scheme, a lump sum is payable to eligible dependants, the apportionment of which will be made at the discretion of ESSSuper in consideration of all the circumstances prevailing at the date of death. In certain circumstances, eligible children may also be eligible for a child’s pension.
An adult child’s pension may also be available in some circumstances to an adult child (over 18 years of age). “Adult child” refers to adult children who have a disability as described in the Disability Services Act 1986, and wholly or partially rely on the member for financial support.
If there are no dependants, then the minimum benefit payable under the rules of the New Scheme is paid to the Estate.
Single with no eligible dependants?
If you are single and die while in service, before retirement, without leaving an eligible dependant:
| Death benefit (payable to your estate) |
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Total of your contributions and interest (if applicable) |
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A minimum benefit top-up consisting of Superannuation Guarantee (employer component) |
If you have dependants on your date of death
A death benefit lump sum is calculated using your accrued retirement benefit to your date of death plus a prospective lump sum benefit for the period between your date of death and age 60 (age 55 for a prescribed firefighter).
| Death benefit |
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Retirement benefit to your date of death |
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Prospective lump sum benefit for the period between your date of death and age 60 (age 55 for a prescribed firefighter). |
Your final average salary (FAS) and your medical classification will help determine the prospective accrued retirement benefit.
The annual rate of accrual for the prospective accrued retirement benefit between your date of death and your 60th birthday is based on the 3% contribution rate. However, the rate of accrual may be higher for a prescribed firefighter.
If you die after age 60 (age 55 for a prescribed firefighter) but before retirement, ESSSuper must apportion your accrued retirement benefit between your dependants.
A pension is payable to eligible children up to age 18 or if they are full time students, up to age 25.
If a medical classification is applicable, this will have a bearing on your death benefit. Despite a medical classification you will be treated as a Full Benefits medical classification, that is, there will be no reduction to your death benefit if:
- your period of contributory membership exceeds 20 years; or
- you have reached age 60; or
- the reason for your death is not related to your medical classification.
If you have a Limited or Service Benefits medical classification, your death benefit may be reduced.
Who are my eligible dependants?
Generally your eligible dependants are:
- your spouse through marriage;
- a domestic partner who is someone to whom you are not married but with whom, in the opinion of the Board, you were living with at the time of your death as a couple on a genuine domestic basis (irrespective of gender);
- a child/children under age 18 or who is a full-time student up to age 25;
- any other person who in the opinion of the Board was, at the date of death, wholly or partially dependant on the deceased; or who had a legal right to look to the member for financial support; or anyone who was in an ‘interdependent relationship’ with the deceased.
Dependant disabled adult children
The names of any financially dependant disabled adult children (who satisfy the definition of “adult child” in s53(2A) of the State Superannuation Act 1988) can be registered with the Board, who are bound to consider them when determining who the member’s dependants are (please see 'Registering dependants' below). In determining whether a registered person or claimant is an adult child, the Board must consider reports from at least 2 registered medical practitioners appointed by the Board; and any decision made may be subject to regular reviews.
Dependants benefit; if employed part-time
If you are employed on a part-time basis at the date of your death, prospective service to age 60 is calculated by using the average of your service over the last three years to determine your full-time equivalent. Accordingly, if you have been employed on a part-time basis in the three years prior to your death, your eligible dependants benefit may be reduced.
If you have reduced your hours from full-time to part-time due to a medical condition, we may recognise this service as full-time for benefit purposes. If this is the case please contact us on 1300 655 476.
Registering dependants
As a New Scheme member you are welcome to write to ESSSuper naming anyone other than your eligible partner and/or child (who is under 18, or under 25 and a full time student) who you consider to be wholly or partially financially dependant on you, including a disabled adult child. However your nomination is not binding and the distribution of the benefit among your dependants will be made at the discretion of ESSSuper in consideration of all the circumstances prevailing at the date of death.
To be eligible to be considered a dependant, the person must meet the criteria of dependant as required under the governing rules. Where the dependency is of a financial nature, you may wish to provide relevant details of the level of support.
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