[The Auditors Institute Ltd]

Hello SP

Thanks for the question.

I agree with you that when a fund member passes away, that their death is a compulsory cashing event.

Ordinarily, where the beneficiary is the surviving spouse (a dependent)  we would expect to see a lump sum payment or the commencement of a death benefits income stream (pension) as soon as practicable after the fund member’s death.

It is possible to make an interim lump sum and a final lump sum, effectively two lump sums for the one dependent – as contemplated by SIS Regulation 6.21(2)(a)(ii) – or a single lump sum (as per Regulation 6.21(2)(a)(i)).

However, it seems that the SIS Regulations do not contemplate more than two lump sum death benefit payments for the one dependent.

Best regards

The Auditors Institute