Jennifer age 40 has recently been diagnosed with a terminal

Jennifer, age 40, has recently been diagnosed with a terminal illness and given less than 24 months to live. Jennifer provides a terminal medical certificate to her superannuation fund to have access to her superannuation benefits. However, after 26 months Jennifer is still fighting her terminal illness and wants to take her family on a holiday using all of her superannuation benefits. What must Jennifer now do to have access to all of her superannuation funds?

a. Jennifer should contact the Department of Human Services. As Jennifer has survived the period in the terminal medical certificate, her full superannuation benefits revert to preserved benefits and cannot be released unless the Department of Human Services provides a release authority.

b. Jennifer\'s superannuation benefits at the time she originally satisfies the terminal medical condition of release would be unrestricted non-preserved, but she must provide the trustees with a further medical condition certificate to make any subsequent preserved benefits unrestricted nonpreserved.

c. Jennifers\'s superannuation benefits at the time she originally satisfied the terminal medical condition of release would be unrestricted non-preserved, but any subsequent benefits would be preserved benefits and not accessible until she receives a disability benefit from the Department of Health Services.

d. Jennifer need take no futher action, because she has satisfied the terminal medical condition of release; therefore all her benefits remain unrestricted non-preserved until her death. As a result, Jennifer has full access to all of her superannuation benefits.

Solution

Terminal illness refers to an illness or injury that would likely result in death within 24 months which was earlier 12 months.Jennifer need take no futher action, because she has satisfied the terminal medical condition of release; therefore all her benefits remain unrestricted non-preserved until her death. As a result, Jennifer has full access to all of her superannuation benefits. However Jennifer will have to pay tax on her withdrawal except where she obtains again a certificate of her illness.