Beneficiary nominations after the Mercer Super Trust transfer
In early 2024, we contacted you and your clients to outline changes to the trustee and superannuation arrangements for Protection Plans (formerly BT, Westpac and St.George) policies.
On 1 April 2024, the trustee for BT Protection Plans insurance cover changed to Mercer Superannuation (Australia) Limited (MSAL), and the superannuation fund transferred to the Mercer Super Trust as part of a Successor Fund Transfer.
While your clients’ insurance cover, premiums and policy terms were unchanged, the transfer introduced some differences in how beneficiary nominations are managed.
Here’s what you need to know
We identified that some of your clients do not have a beneficiary listed under their policy. We have contacted these clients to remind them to review their policy and nominate a beneficiary and have provided them with a Non-Lapsing Beneficiary form.
Review and update beneficiary nominations
The link to the Non-Lapsing Beneficiary form is below to support your client conversations. The completed form can be sent via post or email:
- Post:
TAL Life
GPO Box 5467
Sydney NSW 2001 -
Email: PPpolicySupport@tal.com.au
Summary of beneficiary differences
We have provided your clients with the below summary outlining the key differences between pre- and post-transfer beneficiary rules.
Summary of the different types of beneficiary nominations and how they are applied at MSAL in accordance with the governing rules of the Fund.
No beneficiary nominated
Governed by BTFM
Where no beneficiary is nominated:
- The benefit shall be paid to your Legal Personal Representative (LPR).
- Should the LPR not be identified within 90 days, the trustee shall pay the benefit to your dependents or in accordance with the relevant law.
Governed by MSAL
Where no beneficiary is nominated:
- The trustee of the Mercer Super Trust can decide at its discretion to pay your super to any of your dependents and/or your LPR in any proportion, with no obligation to pay the LPR first.
Non-lapsing binding beneficiary nominations
Governed by BTFM
Where one beneficiary is nominated and the nomination is invalid:
- “No Beneficiary Nominated” will apply
Where multiple beneficiaries are nominated, they are considered invalid if:
- The nomination is unclear (e.g. illegible or the nominated proportions do not total 100%).
- BTFM has actual knowledge that you did not understand the consequences when making the nomination.
- The form is not signed or dated, or the signature was not properly witnessed.
- One or more nominated beneficiaries has died.
- One or more nominated beneficiaries is no longer your dependent at the date of death.
A nomination is invalid if after making the nomination:
- You marry.
- You divorce.
- You commence or cease co‑habitation with a person of either sex.
- A nominated beneficiary dies.
- A nominated beneficiary is no longer your dependent at the date of death.
Governed by MSAL
Where no beneficiary is nominated:
- The trustee of the Mercer Super Trust can decide in its discretion to pay your super to any of your dependents and/or your LPR in any proportion, with no obligation to pay the LPR first.
A nomination will be invalid if:
- The nomination is signed and witnessed improperly;
- The nomination is unclear, ambiguous or ineligible;
One or more nominated beneficiaries are not, at the time of your death, either a dependent under superannuation law or your legal personal representative;
- The non-lapsing nomination is revoked;
- A new non-lapsing nomination is provided;
A nomination is invalid if after making the nomination, the Trustee has knowledge that since giving the trustee the non-lapsing nomination, you:
- married;
- entered into a de facto or like relationship with a person of either gender;
- separated on a permanent basis from your spouse or partner; or
- had a child with a person other than your spouse or partner.
If you have questions about how beneficiary nominations are applied under the Mercer Super Trust, your BDM can help.