BDBN versus reversionary pension – ever wondered which takes priority between a binding death benefit nomination and a reversionary pension?

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Hi. It’s Tara Lucke here. Now, I had a question come out today about superannuation, binding death benefit nominations, and reversionary pensions and which takes priority. And this comes up all the time. So, I thought I might as well share my answer with everybody.

So, if you have a good current 2018 compliant superannuation fund trust deed for your self-managed super fund, then the deed should set out which takes priority. The general rule of interpretation is that the reversionary pension should take priority but that is subject to what the deed said.

Most deeds will now say the reversionary pension takes priority ahead of the binding death benefit nomination. There’s also an ability to specify in the binding death benefit nomination that it is subject to the reversionary pension and when it comes into effect. Thanks for listening.