When the sum of all payments made to the original pension member and the member's beneficiaries is less than the total withdrawal benefit, the difference is paid to the deceased member's estate.

Under the scheme rules, a minimum benefit calculation is required if:

  • there was no spouse or de facto partner and/or children eligible to receive a pension from the scheme, or
  • a member's spouse or de facto partner commutes their entire pension, or
  • a child or student cease to receive a pension because of their age, and no spouse or de facto pension is being paid.

In these situations, State Super must calculate a minimum benefit based on all payments already made (including lump sum and pension payments) and measured against the member's lump sum withdrawal benefit. The withdrawal benefit is the benefit that would have been payable to the member on their resignation from employment and is calculated when they exit from the scheme.

For more information, contact Customer Service on 1300 652 113.