If a person was dependent on the deceased member at the date of death, the trustees are obliged to consider the dependant’s needs vis-à-vis all other dependents. Whether a person is a nominee is an objective, legal question.
While employer contributions would be tax deductible as an expense incurred in producing income, the same cannot be said about employee contributions.
The principles of good governance prescribe that trustees must manage their fund’s risks. It entails their identification, rating regarding probability and impact and any action the trustees will take to manage the risks.