Where a contributing member dies before attaining age 58, the death benefit will comprise:
- the balance in the contributor's personal account
- the employer-financed benefit, which is 2.5%^ of the higher of the final salary or the final average salary for each accrued benefit point
- the SANCS basic benefit, which is calculated as either:
- 3% of the final salary for each year of service from 1 April 1988, if the member is under 55 at the date of death
- 3% of the final average salary for each year of service from 1 April 1988, if the member is over 55 at the date of death
- any balance in the contributor's Additional Employer Contribution (AEC) account
- any balance in the contributor's Commonwealth Government co-contributions account and LISTO amount
- the Additional Benefit, which is 4% of the final salary for each prospective benefit point to age 58 (if the member is covered for the Additional Benefit).
Where a contributing member dies after reaching the early retirement age (generally age 58, but 55 for SPSSF and some other members of earlier schemes), the Additional Benefit is not payable, and the employer-financed benefit is based on final average salary only.
For further information about the death benefit, refer to SASS Fact Sheet 8: Death benefit.
To find out how to calculate a death benefit, refer to the following death benefit example.
Benefit payment options
If a member dies, the member's eligible spouse, de facto partner or legal representative must complete SASS Form 405: Application for payment of a benefit upon the death of a SASS member.
^ Approximately 2.12% after the reduction for the tax on employer contributions payable by the Fund since 1 July 1988. Employer-financed benefits attributed to membership prior to 1 July 1988 do not attract contributions tax. This tax may not be payable where a death benefit is paid to a dependent.
When a deferred member dies
In the event of a deferred member's death, the deferred lump sum benefit would be payable to the member's spouse (including a de facto spouse) or, if there is no eligible spouse, to the member's estate. Refer to SASS Fact Sheet 8: Death benefit for further information.