From 1 October 2021, SuperStream Rollovers version 3 is introducing changes to Death Benefit rollovers. These are different depending on whether the rollover is for a dependent adult or child beneficiary.
A dependent child beneficiary is a child of the member who is either:
- under 18 years old
- between 18 and 25 years old and was financially dependent on the deceased
- living with a permanent disability.
When you are undertaking a death benefit rollover, you must:
- process the rollover electronically using the SuperStream Rollover message
- where the dependent beneficiary is a child, as soon as practicable, complete the Death benefit rollover statement (DBRS) and send this to the receiving fund, and
- for dependent adult and child beneficiaries, give a DBRS or a statement with the same information as the DBRS to the dependant beneficiary, within 30 days of the rollover payment.
For example, a dependent child recipient wants to roll their death benefit income stream to Fund B:
- Fund B sends an Initiate Rollover Request (IRR) via SuperStream to the transferring fund.
- Fund A responds with a Rollover Transaction Request (RTR) message via SuperStream, with the appropriate death benefit tax code and the 'recipient age category' set to 'C'.
- Fund B will know (due to the recipient age category value of C) they will also get a DBRS outside of SuperStream.
If the rollover is a death benefit and the recipient is a dependent child, this is a 'child death benefit rollover' and therefore the receiving fund will need to check the recipient's date of birth in relation to the associated cashing obligations.
See also:
- SMSF - How-to-report-contributions-that-you-roll-over
- SMSF - SuperStream rollovers and release authorities for SMSFs
- Rollover Standard v3.0External Link
- Rollover benefits statement and Death benefit rollover statement information and instructions for transactions from 1 July 2017