Assignment
GSA Information Sheet
A 2025 Guide to Members on the Subject of Assignment
One area of the superannuation scheme that is often misunderstood is the subject of assignment. The purpose of this document is to provide a summary of the ins-and-outs of the Assignment process.
Section 91B of the Government Superannuation Act allows for a member of the Government Superannuation Fund (GSF) to “surrender” up to half of their retiring allowance (annuity) to another person (or persons, providing the assigned total does not exceed 50% of the total allowance). The member surrendering a portion of their retiring allowance is referred to as the “assignor’”, and the person(s) receiving the surrendered portion is referred to as the “assignee”. In this information sheet the title “member” is used throughout in preference to “assignor”.
The Act makes no distinction as to who the assignee may be or whether any relationship must exist between the member and the assignee. In other words, up to half of an annuitant’s retiring allowance may be surrendered to any person(s).
Although the member may surrender up to half of their allowance, the amount that is received by the assignee is actuarially calculated based on their life expectancy. If the assignee is younger than the member the amount payable will be less than half of what the member is currently receiving in actual dollar terms. If the assignee is older, the payments may be more. These calculations are done to ensure that the total payments made over the lifetimes of the member and assignee do not significantly increase the long term liability of the fund.
How it works.
A member wishing to set up an assignment must complete form GS91B, which is available online and from Datacom. All applications to set up an assignment are subject to the following overarching provision:
A member must be alive at the specified effective date and alive when the assignment in writing is delivered to the Datacom. These terms are explained as follows:
• Alive when delivered - the election can be emailed or posted. If it was posted and the member dies after it has been posted, but before it has been delivered, it will be considered on a case-by-case basis. If it is evident through postage mark that it was posted prior to the member’s death then it will be accepted.
• Alive at specified date - the specified date is the date that the member has elected from which the assignment would take effect. This does not have to be the next allowance payment date.
• It can be the date that the member signed the election. If a member chooses a specified date as the date the election is signed, then they were obviously alive at the specified date. The assignment will be paid on the next scheduled payment date.
• If the member elects a specified date in the future, then they must be alive at that future date.
• If the member elects the next pension payment date as their specified date, then they must be alive at that next pension payment date.[1]
• No payment is made until the first payday after the election to surrender.
• An assignment is irrevocable and it cannot be changed once the first payment is made. Assignments can only be made to an individual person. They cannot be made into a Trust. The assignment is subject to the annual Cost of Living Adjustment.
Provisions in the event of death.
The provisions relating to death are simple, but often misunderstood.
• The assignment lasts for the lifetime of the assignee. It is not affected by the death of the member and nor is it transferable on the death of the assignee.
• Should the member die before the assignee the usual provisions apply, in that half of the member’s residual retiring allowance will be paid to a surviving spouse or partner. Any assigned portion is not included in this calculation.
• If the assignee is the member’s spouse or partner, which is often the case, they will continue to receive their assignment and, on the death of the member, they will also receive an additional half of the residual retiring allowance previously retained by the member. However, if the assignee dies before the member, the assignment payments cease completely, and the member’s retiring allowance is not increased.
• In the circumstances where the member’s spouse or partner is not the assignee, they have no claim on the assigned portion of the retiring allowance on the death of the member.
Examples.
Here are two possible scenarios. For simplicity, these examples assume that the assignee is the spouse or partner of the member.
• Example 1: A member may decide to assign half of their retiring allowance to a spouse or partner. Should the assignee die before the member, their half ceases to be paid. The member retains their half of the total retiring allowance and has no claims on the previously assigned portion. Should the member die first, the assignee will continue to receive the half previously assigned and they will also receive half of the residual retiring allowance that the member was receiving. In other words, the spouse or partner will end up with around three quarters of the total allowance (actuarially calculated) until they die.
• Example 2: A member may decide to assign one third of their retiring allowance to a spouse or partner, leaving the member with two thirds. Should the spouse or partner die before the member, their one third ceases to be paid. The member retains two thirds of the retiring allowance. Should the member die first, the spouse or partner will continue to receive the one third previously assigned and they will also receive half of the the member’s residual retiring allowance (which is two thirds of the original retiring allowance) leaving them with around two thirds of the original allowance. In this example, regardless of whoever dies first, the survivor will receive roughly two thirds of the original retiring allowance.
Those are just two examples that involve assignment to a spouse or partner. Because a member can assign up to half of their retiring allowance to any person(s), the possibilities are numerous and the outcomes will vary accordingly. It should also be noted that any assignment made will be to a specific individual. Any subsequent change in relationships will not change the assignment.
Other Arrangements
Some confusion occasionally arises when comparing assignments with other arrangements made, such as agreements under the relationship/matrimonial property legislation. Normally, these arrangements cease on the death of one or other party to the arrangement. These alternative arrangements can be very different from the provisions of the Superannuation Act, but in themselves they do not affect the provisions of the Act.
Advice
The GSA does not provide individual advice on assignment, because circumstances differ. Any member contemplating setting up an assignment is encouraged to seek independent financial advice.
Any decision made under the assignment provisions cannot be reversed.
[1] Previously the GSA has been of the understanding that regardless of when an election to surrender is signed, and regardless of the chosen effective date, the member must be alive on the next payday for the assignment to take effect. The GSA sought clarification of this in April 2025 and it is now clear that as long as it can be shown that the assignor was actually alive on the effective date, but subsequently dies before the first payment can be made, the assignment will still be honoured.