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What is a qualified domestic relations order (QDRO), and how can it be used to divide stock options and restricted stock in divorce settlements? - sanapidyqel.web.fc2.com

For many years, pensions were a reward for long and faithful service, at the discretion of the employer, and not guaranteed or funded. InCongress passed the Employee Income Retirement Security Act ERISAwhich subjected pensions to government regulation.

In particular, a company's contributions to a plan, and the earnings on those contributions, became tax-free under ERISA as long as the plan maintains tax-favorable status. The two primary types of pensions are defined contribution and defied benefit plans.

Under a defined benefit planthe pension is defined by a formula and usually payable as a monthly annuity until the participant's death. In a defined contribution planthe individual's pension is in the form of an individual account balance.

A common type of defined contribution plan is a k. Under such a plan, employees may defer compensation, and the employer makes a contribution to the plan on the employee's behalf. These contributions are excluded from the employee's gross income in the year they are made and are not subject to taxation until distributed to the employee, usually at normal retirement age.

If the employee terminates before normal retirement age, he or she may take the distribution as early as the plan's earliest retirement age. However, the distribution is subject to a 10 percent penalty, as well as taxes, if taken before age 55, unless the employee is disabled as defined in Internal Revenue Code IRC 72 m 7.

There are two main classes of pension plans, those subject to ERISA and those that are not subject to ERISA. Generally speaking, all private pension plans are subject to ERISA. These are corporate and multi-employer union pension plans. Government plans federal, state, and local are not subject to ERISA.

Quasi-governmental plans, such as state public school teachers' plans, are also not subject to ERISA. Under immediate offset a present value is determined for the pension and the nonemployee spouse receives offsetting assets of comparable value e. The present value of a pension is the lump sum, which if invested at the assumed interest rate used in the calculation called the discount ratewould be sufficient to pay the required monthly pension.

The present value concept is based on the time value of money. This is the essence of a present value calculation. The calculation determines what an individual would pay today for the guarantee of a certain payment in the future. A pension is a promise or contract by the employer with the employee to pay a specified monthly benefit beginning at early or normal retirement age.

In order to determine the present value, one has to discount the future payments for interest - e. The pension expert has to select an appropriate interest rate. Also, the expert has to factor in the anticipated mortality of the employee. Pension benefits are normally paid for the lifetime of the employee.

Therefore, the employee's mortality determines how many years of pension payments he will receive. Finally, the expert has to determine the marital or community component of the pension benefit, which is the portion acquired during the marriage.

This is done by the use of the marital coverture fractionwhich is explained in further detail in What follows is an example of a present value calculation by a pension expert in a divorce case. The interest and mortality factors are combined into an annuity factor item number 2 in Exhibit The accrued monthly benefit multiplied by 12x is multiplied by the annuity factor for interest and mortality and that amount is multiplied by the coverture fraction to determine the marital or community present value.

Very often defined benefit plans have no contribution. The nonemployee spouse is awarded a piece of the employee's pension when that pension becomes payable, hence the word "deferred.

Some ERISA defined contribution plans have been amended to allow the distribution immediately instead of waiting until the employee's earliest retirement age. Defined contribution plans allow for the transfer of a lump sum from the employee's plan interest to the other spouse's IRA referred to as an IRA rollover or a cash payment to the other spouse, since the pension is in the form of an individual account balance.

Some defined benefit plans also allow for the transfer of a lump sum to the nonemployee spouse. A deferred distribution or lump sum transfer is usually accomplished by a qualified domestic relations order QDRO. The word "qualified" refers to a plan being qualified under ERISA.

Therefore, strictly speaking, the term "QDRO" refers to ERISA plans only. However, non-ERISA plans, such as the federal Civil Service Retirement System, recognize court orders similar to a QDRO that attach a component of a member's pension for the benefit of a former spouse. The Retirement Equity Act of REA created rights for the former spouse.

REA is the federal statute that created the QDRO. REA also created rights for a current spouse that did not exist under ERISA. Under REA, a married employee must choose a joint and survivor annuity at retirement so that, in the case of the death of the participant, the surviving spouse will receive no less than 50 percent of the monthly payment or annuity paid while the participant was alive.

REA also states that under a QDRO, the former spouse known as the alternate payee shall be treated as a surviving spouse for both pre-retirement and postretirement death benefits, regarding the portion of the pension that is divided under the QDRO. Since a current spouse must be provided a death benefit, a former spouse also has the right to a death benefit under a QDRO, so that benefits continue after the death of the participant. In fact, as discussed in In this way, the death of the participant after retirement has no effect on the alternate payee's benefits.

This type of division of pension benefits is often referred to as a "separate interest benefit. Divorce counsel must decide whether the immediate offset or deferred distribution QDRO approach is the best for his or her client in each case.

The initial consideration is what liquid assets or cash are available to the spouses. If the employee spouse lacks the initial resources to buyout the nonemployee spouse's interest in his pension with offsetting assets, a QDRO will usually be necessary.

Whether the choice is immediate offset or deferred distribution, counsel needs to obtain the following documents and information regarding the employee's pension:. The nonemployee spouse receives a lump sum payment either as an outright cash payment or a rollover into his or her IRA. The nonemployee spouse receives a specific dollar amount that he or she can reinvest.

Counsel should consider interest on the lump sum amount if payment is not received in a timely fashion. Does the lump sum consist of cash or securities? If securities, pick high tax basis securities to minimize future taxes, pick undervalued stock and securities purchased with plan contributions which have already been taxed.

For immediate offset, present value purposes, a pension's present value may double if the actuary uses the employee's early retirement age rather than normal retirement age. Since the benefit at early retirement is payable over many more years than the benefit at normal retirement, the monthly benefit must be reduced to compensate.

However, this reduction is often less than the reduction needed to keep the present value the same. This is called a subsidized reduction. Thus, the present value using early retirement age can be much greater than the present value assuming normal retirement. In addition, there may be special early retirement enhancements that further lessen the reduction. In any given year, about 10 to 15 percent of large companies offer early retirement incentives.

Typically, the percentage is higher in recession years and lower in "boom" full employment years. As part of an early retirement incentive, there may be a special early retirement enhancement. Typically, this is accomplished by adding 5 or 10 years to the employee's actual age, making the employee mathematically closer to the normal retirement age. The legislative history of REA indicates that an early retirement subsidy may be shared by the alternate payee, if taken by the participant.

Reported case decisions from New York 2 and California 3 have found that the alternate payee should share in early retirement subsidies. This reasoning follows IRC P 4 A iiwhich states that QDRO benefits are payable to the alternate payee before the participant retires, at the participant's earliest retirement age, without taking into account any early retirement subsidy if the participant has not yet retired.

In the New York case, Olivo, the court found that special early retirement supplements that did not exist at the time of the divorce were not marital property. However, the enhancement to the basic pension was found to be marital property.

Many state courts have struggled with whether these subsidies are or are not marital property. Lehman, SOCal. For a detailed discussion of the case law across the country, see Feder, R. Many non-ERISA plans provide cost of living adjustments or COLAs.

ERISA plans are not as generous as government plans, and rarely have COLAs. Chapter 19 on Fortune company pensions will illustrate just how much more generous the federal Civil Service Retirement System CSRS is in comparison to Fortune company plans.

Even without the COLA, the CSRS pension has a much higher present value. Sometimes, COLAs are given in ERISA plans on an ad hoc basis, but not every year. Non-ERISA plans that have annual COLAs base the COLA on the consumer price index.

If the actuary includes the COLA in his or her present value calculation for immediate offset purposes, this leads to a much higher present value. Some states allow for the COLA to be included in the pension valuation, 6 while other states do not?

Even if the COLA is included, no one knows what inflation will be many years from now, and a competent pension valuator will illustrate a range of COLAs. The employee's attorney should strongly resist including the COLA as a benefit that is too speculative to include in the pension calculation. This issue could be resolved by a QDRO or QDRO type order that gives the alternate payee a pro-rata share of the COLA, if any. The CSRS and military pensions are not qualified under ERISA and do not use QDROs.

The QDRO equivalent for CSRS is called a Court Order Available for Processing COAP. The military order is called a Military Court Order MCO. Under REA, ERISA plans allow the alternate payee to commence benefits as early as the participant's earliest retirement age even if the participant is not actually receiving pension benefits yet and has not retired This guarantees that the alternate payee's benefit under a QDRO will have the same value as an immediate offset, at least under certain conditions.

Essentially, the QDRO "purchases" an annuity for the alternate payee. The purchase price is the cash payment under the immediate offset approach that he or she is foregoing, in return for getting the QDRO award. However, non-ERISA plans are not governed by REA. Thus, the alternate payee must wait until the participant commences benefits in order to receive his or her benefits. If the participant delays retirement, his or her own retirement benefit will increase, due to increasing service and salary, but the alternate payee's present value will be decreased, due to delay in payment.

Thus, the DRO and the immediate offset approach will not be equivalent. The value of the "purchased" annuity will be less than the "purchase price," or the cash payment under the immediate offset approach. The alternate payee loses value every year the participant delays retirement. In California, this issue has been settled by that state's Supreme Court in the case of Cornejo v.

Thus, the alternate payee could not commence benefits until the participant retired. The Supreme Court of California found that if the participant delays retirement, the alternate payee must receive an immediate cash payment equal to the present value of his or her award as of the participant's normal retirement age. Many states do not have case law covering this situation.

This issue may be addressed in the QDRO or Cara trading forex order, and will be discussed in detail in Chapter 17 on the CSRS system. However, unless this issue is addressed, the best strategy for the nonemployee spouse is to obtain an immediate offset.

The caveat is that the COLA may not be included in an immediate offset, depending on the case law of the particular state. Thus, if the case law of the state includes a COLA in an immediate offset, or if the plan has no COLA e.

Whether ERISA or non-ERISA, the QDRO or DRO must state whether the alternate payee receives a portion of the benefit accrued as of a certain cut-off date or as of the participant's retirement date. The cutoff date is the point in time when the marriage ended, after which the nonemployee spouse has no further claim on assets earned by the employee. The cut-off date varies from jurisdiction to jurisdiction. In Pennsylvania, Oregon, and Maryland, the cut-off date is the date of marital separation.

In New Jersey, it is the date the divorce complaint is filed of record. In New York, it is the date of service of the divorce complaint. In Florida, the yorkie terrier puppies for sale in illinois date is the date of the final judgment of 10 minute define binary options strategy. In California and Colorado, the cut-off date is the date of divorce.

The cut-off buy stocks netflix is the date when the employee's pension benefits are stopped for purposes of calculating the other spouse's marital or community benefit.

Benefits accrued after the cut-off date are excluded from any distribution to the alternate payee. However, there is a second step in determining the marital component of the pension in addition to the cut-off date for the accrued benefit.

This step is called the marital coverture fraction. This fraction is used to insure that the alternate payee's claim is limited to the portion of the pension benefit acquired during the years of the marriage and excludes nonmarital years, such as years of service prior to marriage. The numerator in the fraction is the years of marital service. Marital service is service from the later of the date of euro exchange rate date wise or date of marriage, to the cut-off date.

If the cut-off date benefit is used, the denominator is total service up to the cut-off date. If the retirement date benefit is used, the denominator is total years of service. With the same numerators, the coverture fraction at retirement date is smaller than at the separation date, because the denominator is larger using a retirement date. Some states are vague about using the cut-off date or retirement date. Other states, such as Pennsylvania, 11 Florida, 12 and Maryland, 13 use the cut-off benefit.

In Virginia, the use of the cut-off benefit s& p 500 stock futures chart of separation in Virginia is statutory. In New Jersey, the cut-off date benefit is used in present value calculations, while the retirement date benefit is used in QDROs. Most states that use the retirement date in QDROs use the current accrued benefit in pension valuations. Typically, states using the cut-off date benefit in pension valuations use the cut-off date benefit in QDROs.

New Jersey savage model 111 stock for sale an exception. Suppose the case law in a given jurisdiction holds that the nonemployee spouse is entitled to 50 percent of the benefit accrued during the marriage. The spread of islam trade routes for the nonemployee spouse is to argue that the retirement date benefit should be used, and that the use of the coverture fraction "separates out" the marital component.

The nonemployee spouse should further argue that use of the benefit as of the date of divorce or other cut-off date does not protect the nonemployee spouse from inflation. The best forex broker for swing trading system for the employee spouse is to argue that the increase in the benefit from the cut-off date until the retirement date is due to salary increases in addition to inflation, contributions to the plan and promotions, all due to post-marriage efforts of the employee spouse.

Thus, the employee spouse will argue for use of the cut-off date benefit. In general, the retirement date benefit, multiplied by the coverture fraction at retirement, is greater than the cut-off date benefit, multiplied by the coverture fraction at the cut-off date.

This is because the coverture fraction decreases as a function of time only, while the benefit increases as a function of time and salary in defined benefit plans, plus contributions, and earnings on those contributions in a defined contribution plan. Hoyt, 53 Ohio St. A QDRO needs to forex trading dvds when benefits start and stop.

In an ERISA plan, benefits may start at the participant's earliest retirement date, whether or not the participant has retired. Counsel should be aware that there will be an actuarial reduction for use of the early retirement date for the alternate payee. Benefits may start no later than the date of the participant's actual retirement. Theoretically, a separate interest QDRO could allow the alternate payee to commence benefits after the forex charts co uk. However, almost all plans require that the alternate payee commence benefits no later than best uk penny shares to buy now participant.

The QDRO should specify what happens in the case of the death of the participant, before and after retirement. The QDRO should specify what happens in the case of the death of the alternate payee, both before and after the alternate payee's benefits commence. In each case, the death of the alternate payee may be before or after the death of the participant Divorce counsel should take these contingencies into account Note that the answers will depend on whether the plan is an ERISA or non-ERISA plan, a separate interest or shared interest, and the specific agreement between the parties.

Different pension plans provide different answers to forecast euro rand exchange rate questions, but divorce counsel should address each of these issues in any QDRO or QDRO-type order.

Depending on the characteristics and provisions in a particular pension plan with respect to all of the factors discussed above, the employee and nonemployee spouse may be better or worse off with an immediate offset best way to make money on aqworlds deferred distribution approach.

Counsel should consider various valuation strategies to maximize the client's position. For example, if the nonemployee spouse needs upfront cash as part of his or her property distribution and there are no available early retirement enhancements or subsidies in the plan, then immediate offset is the best approach because the nonemployee spouse receives the cash he or she needs without losing early retirement enhancements with a deferred distribution.

If the pension plan will allow the employee to delay retirement indefinitely, as does the federal Civil Service Retirement System, then an immediate offset approach may be better for the alternate payee so he or she is not subject to that delay.

An alternative is to draft the QDRO type order to remove the financial incentive for the participant to delay retirement by increasing the benefit to the alternate payee for each year that the participant delays.

The present value of the alternate payee's benefit remains the same, and the participant no longer profits by his or her delay. A specific explanation and illustration of this approach can be found in Chapter With respect to early retirement subsidies, the alternate payee's counsel should negotiate for the inclusion of a provision 30 seconds binary options strategy xposed auto trader the alternate payee receives a pro-rata share of that subsidy.

Obviously, the participant's counsel should object. Much depends on the case law in the particular jurisdiction. However, if the jurisdiction's case law allows the alternate payee to receive a share of the subsidy, it would be a mistake for divorce counsel to fail to include such a provision in the QDRO.

The same analysis applies with respect to How is stock market regulated. If a jurisdiction allows the alternate payee's participation in the COLA in the QDRO, then divorce counsel should include such a provision in the QDRO.

The COLA should be less objectionable because that is an increase to the pension benefit that is awarded across puzzle pirates how to make money board to all employees based on an inflation index and has nothing to do with the specific work efforts of the employee after divorce.

This may not be the case with early retirement incentives or enhancements. For example, the employee may need to reach a threshold number of years of service to earn an early retirement subsidy.

If the employee has worked, for example, 17 years through the date of separation and does not earn the early retirement subsidy until he works three additional post-separation years, should the nonemployee spouse benefit from that early retirement subsidy which was earned, in part, with post-separation service?

The nonemployee's counsel should argue that 17 out bitcoin binary options brokers the 20 years of service were earned during the marriage and the employee could not have earned the subsidy without those 17 marital years.

Often, it is not clear whether the subsidy was earned with marital or post-marital years of service. What if the company announces an early retirement subsidy in the year following the divorce and the subsidy is awarded without regard to years of service?

The employee spouse will argue the benefit did not exist at the time of the divorce and the nonemployee spouse should receive no portion of that subsidy.

The nonemployee spouse will argue that the subsidy is not being granted because of any work effort by turnkey websites that make money employee during or after the marriage, but that this is an across-the-board increase in pension benefits.

Since stockland hervey bay opening hours is receiving a percentage of the pension benefits under the existing QDRO, she should receive the same percentage of the qdro stock options enhanced benefit.

These are some of the more difficult valuation strategies that can arise analyzer binary options online trading a divorce case.

The facts and circumstances of each case must be carefully scrutinized in light of the existing legal precedent in the jurisdiction. There is not always a simple answer or solution for each case. That is why many pension disputes have been litigated to the trading hours boxing day epping plaza highest courts.

These considerations and decisions are summarized in the flow charts in Exhibit A ERISA plans and Exhibit B Non-ERISA plans. Subsequent chapters address the specifics of a variety of specialized pension plans, such as Fortune company plans e. The fundamental concept in calculating a present value of future payments is the concept of discounting. In order to understand discounting, first consider interview with successful forex traders concept of compounding.

The future value of the CD at maturity is given qdro stock options. Thus, discounting without mortality is simply the inverse process of compounding.

Instead of a lump sum, consider discounting a five-year annuity of compounding. This is called a five-year certain only annuity. This is because the first dollar is received now, so there is no discounting. The second dollar payment has one year of discounting at 6 percent interest. The third dollar payment has two years of discounting, and the last payment has four years of discounting.

After discounting each installment, the present values are then added up. Mathematically, this is expressed as follows:.

This is a commonsense result. However, in the annuity, only the last payment is discounted four years. The average amount of discounting is two years, with two payments discounted less than two years, and two payments discounted more than two years. Then the present value would be:.

Please note that this approximation is not used in real actuarial calculations but merely used here as an illustration to provide some commonsense, intuitive feel for the calculations. Since the life expectancy of a male age 65 is 17 years, the annuity now is for 17 years, not five.

This is called a 17 year certain only annuity. In actuality, the annuity is payable over the annuitant's lifetime.

This is called a single life annuity. The annuity does not go 17 years and then stop. An accurate calculation, performed by an actuary, will account for the probability of mortality in each and every year from now age 65 until age where the mortality table ends. However, life expectancy is a starting point. The present value of this annuity is given by:. Thus, the present value using life expectancy is as follows:. As mentioned previously, life expectancy is not a method used by actuaries.

The reason is that the most likely outcome for a male age 65 is to live 17 years. It means that with percent probability, the individual will live 17 years, then die. But the individual may die tomorrow, or live to be Since the probability of anyone living past the age of is minute, the table ends at age The only way to account for each possible outcome is to use probability of mortality, for each and every year from 65 until However, each year's payment is discounted with interest and mortality.

Thus, using life expectancy, the lust year's payment is not discounted. While there is no discounting for interestthere is discounting for mortality, since the individual may die within the first year.

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The third year's payment is multiplied by the probability of living two additional years, and discounted with two years' interest. This goes on until age The present values are then added up, as in the life expectancy example. The procedure just described is given mathematically as follows:. Note that there is a significant difference between the life expectancy result and the correct result using probability of mortality. Life expectancy is a simplistic method used by non-actuaries, such as accountants, in valuing pensions, and is not accurate.

Now consider the most common case, in which the individual has not yet retired. First, consider the life expectancy case. At age 50, the life expectancy is 29 years, as opposed to 17 years at age Thus, in this computation, the pension only goes for 14 years, not that is, from age 65 to age The present value at age 65 for an individual age 50, versus the present value at age 65 for an individual age 65, is a confusing concept necessitated by the use of life expectancy, which is a mathematically unsophisticated technique.

This cumbersome step is not needed using probability of mortality. Note that equation 9 has the same form as the calculation in equation Of course, as noted previously, this result is not accurate anyway, but it is the correct result, given the use of life expectancy. The last step is to calculate the present value for a male age 50, payable at age 65, using probability of mortality. As in the life expectancy case, this is discounted with 15 years interest, at 6 percent. However, in addition, it is necessary to multiply by the probability of the individual actually living from age 50 until age Thus, the present value is given as follows:.

Collecting terms and "plugging in" the probability of living from age 50 to age 65, the present value at age 50 is given by:. Note that at age 65, the use of life expectancy overestimated the value of the pension. At age 50, the use of life expectancy underestimated the value of the pension. Again, this is one more flaw with the use of life expectancy.

The last term, 3. This is called the annuity factor: Now look at Exhibitshowing this result as a pension valuation report. Within the following chapters on federal, military, and Fortune company pensions there will be several such sample reports.

Pension Valuations QDROs Employment Group Pension Expertise Expert Testimony Wage Loss Legal Language Consulting Stock Options Personalized Actuarial Consulting Speaker and CLE Presenter Mark K. Pension Valuation Tutorial By: Altschuler This publication is designed to provide accurate and authoritative information in regard to the subject matter covered.

From a Declaration of Principles jointly adopted by a committee of the American Bar Association and a Committee of Publishers and Associations Reprinted with permission.

Table of Contents March 5, PREPARED FOR: Feder, Attorney At Law NAME OF EMPLOYEE: Life Annuity Calculations in accordance with generally accepted actuarial standards Interest rate: GAM Table The interest and mortality factors are combined into an annuity factor item number 2 in Exhibit Back to Table of Contents Portion of ultimate benefit earned as of certain date.

Former spouse awarded a component of a participant's pension under a QDRO. Cost of Living Adjustment; yearly increase in a pension benefit, tied to the consumer price index. Common in government plans, but very rare in private pension plans. Fractional portion of benefit attributable to marriage. Sometimes defined as length of time from date of marriage or date employment commenced if after date of marriage to date of marital separation divided by total years of employment through the current date.

The point in time after which the nonemployee spouse has no claim on the additional pension benefits earned by the employee. Varies from jurisdiction to jurisdiction. Defined benefit pension plan, formula benefit, no individual accounts. Defined contribution plan, all individual accounts, no specific benefit. Delayed payment of pension to divorced spouse, usually pursuant to a QDRO.

Retirement with a reduced pension before normal retirement. Retirement before normal retirement age, when the pension in unreduced, slightly reduced, or a bonus is added to the pension. Employee Retirement Income Security Act; Act of Congress subjecting private pension plans to federal regulation, establishing tax-free status in plans that conform to ERISA.

Approach whereby pension's present value is determined and offset against other asset given to nonemployee spouse e. Age to receive full, unreduced pension. Pension Benefit Guaranty Corporation; insures most DB plans. Qualified domestic relations order for plan to pay divorced spouse. Retirement Equity Act; Act of Congress that amended ERISA, providing for QDROs exception to the anti-alienation rule in ERISA.

Computation date base for present value, usually current date.

Present worth of a future pension, or present account balance. Obtain authorization from the plan participant early in the case, in order to obtain needed information directly from the plan administrator. A copy of the plan booklet, known as the summary plan description, or SPD. Any supplements containing plan amendments, known as summary of material modifications, or SMM.

If the plan is defined benefit, a benefit statement showing the benefit accrued as of a certain date, payable at normal retirement. The date may be the cutoff date in the jurisdiction, or the current date, depending upon case law in the jurisdiction.

The issue of cutoff date versus current date will be explained in detail later in this Introduction. In certain cases, such as employee termination, the benefit statement showing the benefit payable at early retirement may be appropriate. If the employee has actually taken early retirement, the early retirement statement is needed. If the plan is defined contribution, the account statements from the cutoff date to the valuation date.

These statements are used to calculate the earnings on the account. If the hire date is before the marriage, the account statement as of the date of marriage is needed.

I will be receiving monies from a QDRO executed pursuant to my divorce. I would like to take a portion of the money as a distribution to pay for a new home. What are the tax implications of doing this?

In some jurisdictions, all the statements during the marriage are needed. If warranted by the size or complexity of the plan, it may be advisable to obtain the formal plan documentwhich may run anywhere from a few pages to over pages. This is usually needed to prepare a thorough QDRO. Every private defined benefit pension plan, and most non-ERISA plans, have an actuarial valuation report for the plan. This report lists the aggregate assets and liabilities of the plan, and may list the participants with their accrued and projected pension benefits and their individual present values, as viewed by the plan's actuary.

However, an individual's present value in the report may not be appropriate for property distribution purposes. The plan's actuary may have used a set of composite actuarial assumptions for the plan in total but not for anyone individual.

The plan may prepare a present value calculation for an employee under the assumption of plan termination. Divorce counsel may want to use this value. However, the plan's assumptions may not be appropriate for calculating the marital value of the pension. The benefit used is unlikely to be the benefit accrued at the cutoff date, nor will a coverture fraction be applied. Account statements showing any loan balancesthe dates and amounts of the loans taken out, and the dates and amounts of any repayments.

Any standard form QDRO prepared by the employer. However, be advised that many standard QDROs may not meet a client's needs. A well-informed pension consultant can usually tailor a QDRO for a client and secure its approval, so long as the QDRO does not require a plan amendment. Any company booklets with respect to employee benefits and QDROS. Early retirement incentives; Cost of living adjustments COLAs ; Retirement age; Marital coverture fraction; Benefit commencements and terminations; and 6.

Offsets to the accrued benefit. New Jersey, Hayden v. What happens if the alternate payee dies before the participant and before he retires and begins receiving his benefits? Are the alternate payee's benefits forfeited and do the benefits revert back to the participant? If the alternate payee dies first before the participant retires, but she has begun receiving benefits, can she leave her benefits to her beneficiary upon her death?

If the participant dies rust, the alternate payee receives benefits, and then dies, can she leave her benefits to her beneficiaries upon her death? The future value of the CD at maturity is given by: Mathematically, this is expressed as follows: Then the present value would be: The present value of this annuity is given by: Thus, the present value using life expectancy is as follows: The procedure just described is given mathematically as follows: Note that equation 9 has the same form as the calculation in equation 1: Thus, the present value is given as follows: EXHIBIT Sample Pension Valuation Report DATE: GAM Back to Table of Contents Reprinted with permission.

PAC provides pension valuations, QDROs and actuarial reports for divorce attorneys and marriage dissolution mediators nationwide. Our Philadelphia offices are located in the suburb of Elkins Park, Pennsylvania, from where we serve the needs of legal professionals nationally, including east coast states such as New York, New Jersey, Virginia, North Carolina, Florida, Washington, D.

Our Florida office located in Coral Gables, FL serves Florida family attorneys. Pension Valuations QDROs Employment Group Pension Expertise Expert Testimony Wage Loss Legal Language Consulting Stock Options Personalized Actuarial Consulting Speaker and CLE Presenter.

BOX Elkins Park, PA Ponce de Leon Blvd. Altschuler President Email Us. EXHIBIT Types of Pension Plans. Pension Plan Defined Benefit. Marital portion contingent on jurisdictional cut-off date.