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  • Credits to your transfer balance account

    The amount of the credit to your transfer balance account and the time when the credit arises in your account depends on:

    • when you started receiving the death benefit income stream, and
    • whether the death benefit income stream is reversionary or non-reversionary.

    On this page:

    Reversionary death benefit income streams

    If you are a beneficiary of a reversionary death benefit income stream, you automatically become entitled to the income stream on the death of the original member. The date of death of the original member is when the income stream first becomes payable to you.

    If you become entitled to a reversionary death benefit income stream before 1 July 2017, the credit in your transfer balance account arises on 1 July 2017 or 12 months after the death of the original member – whichever is the later. This means:

    • if the member died prior to 1 July 2016, the credit in your transfer balance account arises on 1 July 2017
    • if the member died between 1 July 2016 and 30 June 2017, the credit in your transfer balance account arises 12 months after the date of the member’s death.

    In both cases, the amount of the credit is equal to the value of the income stream at the end of 30 June 2017.

    If you become entitled to a reversionary death benefit income stream on or after 1 July 2017, the credit in your transfer balance account arises 12 months after the date of the member’s death. The amount of the credit is equal to the value of the income stream as at the date of the member’s death.

    Non-reversionary death benefit income streams

    If you are a beneficiary of a non-reversionary death benefit income stream, you are not automatically entitled to the income stream on the death of the original member. You become entitled when you start being paid the death benefit income stream.

    The value of non-reversionary death benefit income streams may also include any:

    • investment earnings that accrued to the deceased member's interest between the date of death and the date you become entitled to the income stream
    • other amounts the super provider has decided to pay as a death benefit income stream.

    If you are entitled to a non-reversionary death benefit income stream before 1 July 2017, the credit in your transfer balance account arises on 1 July 2017. The amount of the credit is equal to the value of your income stream at the end of 30 June 2017.

    If you become entitled to a non-reversionary death benefit income stream on or after 1 July 2017, the credit arises on the day you become entitled to the income stream. The amount of the credit is the value of the income stream on that day.

    Scenarios to assist you further are contained in the guidance note New transfer balance cap – death benefit income streams.

      Last modified: 27 Mar 2018QC 54352