What is a Child Pension?

A child pension is simply a pension payable from a deceased member’s superannuation interest which is payable to a beneficiary who is under age 18, or aged between 18 and 25 who is financially dependent upon the deceased member or who is permanently incapacitated.  The pension is an account-based pension which, if not exhausted by the time the beneficiary has attained age 25, must (unless the beneficiary is disabled) be commuted and cashed out – that is paid out of the superannuation system.  

Child pensions can also be paid to individuals who have already attained age 25, if they are disabled.  These types of pensions are considered later.

Child pensions can arise by reason of the exercise of a superannuation trustee allocation discretion in relation to a death benefit, by reason of a binding death benefit nomination or by reason of the beneficiary being a reversionary beneficiary of a pension which was previously payable to the deceased member.