I need to calculate the “fair market value” of my pension for a Domestic Relations Affadavit (in the divorce process, unfortunately).
Info I do have: the amount of my monthly payments starting at age 65 if I quit work now. These are given in 5 ways though… (1) if I had a “single life annuity,” (2) 33 1/3% joint and survivor annuity, (3) 50% joint and survivor annuity, (4) 66 2/3% joint and survivor annuity, (5) 100% joint and survivor annuity. (I have no idea what all these options mean.)
Thanks so much for any help… or pointing me to any good resource for calculating this !
Regards,
DDDDDarsh
March 5, 2010 at 5:25 pm
i dunno
Swu20
March 5, 2010 at 6:09 pm
There are many variables you must factor in, such as: if you will be married when your benefits kick in. You are 46 now, but you have to worry whether or not the pension is even still around in 20 yrs! Many companies are opting out of pensions and enrolling employees in defined contribution accounts (aka: 401(k).) Below is a brief on pension/life insurance payments, you can probably receive information within yahoo finance though:
a single life annuity = monthly payments made to you, but stops once you die.
join and 100% survivor = monthly payments are reduced by a significant amount as defined in your plan, and upon your death, your spouse will receive 100% of the monthly payment (like you would normally receive if you were alive.)
You can also probably choose a lump sum payment at a discount though.
Kimberly S
March 5, 2010 at 6:49 pm
Google future value calculators and you’ll find many websites that will help you.