Can an ABP be reversionary?

Yes, an ABP can be reversionary (although it does not have to be).  This means that the pension continues to be paid after the death of the primary pensioner to another person (i.e., a reversionary pensioner). According to the ATO, where an ABP is reversionary, the Trustee generally should not have any discretion to determine the persons to whom the death benefit is to be paid or the manner of payment.

If an ABP is to be reversionary, it should ideally be documented as such before it is commenced.  If permitted under the trust deed, an ABP can subsequently be made reversionary after it has commenced to be paid (see below). A reversionary ABP may override any current or future binding or non-binding death benefit nomination subject to the trust deed.