Ask Experts Questions for FREE Help !
Ask
    TKH329's Avatar
    TKH329 Posts: 10, Reputation: 1
    New Member
    		  
    #1

    Jul 15, 2014, 10:57 AM
    Valuing a Firefighter's pension
    My ex and I are in the process of a divorce. He has a State Funded Defined Benefit Pension Plan. He will be able to retire in 8 years at age 50 with full benefits. We have been married for 18 years.

    During settlement talks today, my ex's attorney produced a letter from the Pension Plan stating the value of his plan is $13,500. It also stated that at retirement, monthly payment amounts would be approximately $500 per month. My understanding is that when a pension plan is valued, they look at the retirement age and life expectancy among other factors. I have been willing to trade out my interest in his pension plan in exchange for some real estate (approximately $20,000 equity for each of us). Today, they wanted me to accept an offset of $6,800 to the equity of the house. I am fairly certain that his pension plan is going to value at more than this. Am I correct in these assumptions?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jul 15, 2014, 11:21 AM
    A Defined Benefit pension plan is valued at its present value, which may be very low. One cannot count on a person living to collect their pension so generally its not value at future value. I believe, in a divorce, one can only expect a share of present value.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #3

    Jul 16, 2014, 03:09 AM
    you may of course, make that argument in court. Just because "his" attorney says it has a certain value, why do you suppose to believe him. This is where your attoreny presents their value and an agreement is tried to be reached.
    TKH329's Avatar
    TKH329 Posts: 10, Reputation: 1
    New Member
    		  
    #4

    Jul 22, 2014, 09:53 AM
    The value that they presented in our meeting was his contributions to date. That is not the "value" of his plan. We have made our offer. I have let him know that if he does not accept it, I will have his plan valued. From the research I have done (with the help of some people who are not actuaries but are qualified enough to value the plan), taking into consideration discount mortality rates and interest rates, the value should be around $92,000.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Firefighter exercise building [ 1 Answers ]

I was asked to build a building 10' x 12' and 20' in height. I was wondering about it tipping over. What can I do to make sure it is solid?

Plot was a man who was a firefighter whose wife died and he set woods on fire [ 1 Answers ]

Man was a firefighter whose wife was pregnant by an affair and he tried to get back at the woman who killed his wife. He set woods on fire

If you change your pension into a disability pension does that become marital asset? [ 5 Answers ]

Married 4 years husband became disabled changed his pension into a disability pension am I entitled to the pension? I read that once you change your regular pension while married into a disability pension it becomes a marital asset. We are in the process of getting a divorce, I received a letter...

Firefighter, bunker gear [ 1 Answers ]

Why do firefighters use a two piece suit? I have seen firefighters get burns on there back due to the jacket cominng up while working at a fire. I think a one piece suit would be much safer and more quick to put on.

View more questions Search