Category Archives: Pension Valuation Issues

When the spouses have sufficient assets, the offset method – trading the pension in exchange for, say, a mutual fund – may be more advantageous than a QDRO and a share of the participant’s pension; however, the participant cannot force … Continue reading →

A veteran’s disability pension cannot be divided in a divorce because it is not considered a marital asset. In fact, Federal law expressly prohibits state courts from dividing a veteran’s disability pension as part of the divorce decree, so a … Continue reading →

A number of common mistakes can happen when valuing defined benefit and defined contribution plans – including partial offsets and tax consequences. What’s wrong with using a present value of a defined benefit plan in a marital settlement agreement?  In … Continue reading →

When the spouses have sufficient assets, the offset method – trading the pension in exchange for, say, a mutual fund – may be more advantageous than a QDRO and a share of the participant’s pension; however, the participant cannot force … Continue reading →

In New York and other jurisdictions, the so-called Majauskas Formula determines the division of a defined pension in a divorce. When Plan participation pre-dates the marriage, this common method employs what is called the Majauskas formula, which takes it name … Continue reading →

A pension may be worth more or is more complicated than the amount that appears on the annual statement. A present value calculation will determine the proper value upon retirement. This is the true value. The present value calculation is … Continue reading →

The three main ways of dividing pension assets are offsetting, earmarking and sharing. Each of these has merits and pitfalls. Offsetting Offsetting means that one partner’s pension is traded off against the other’s assets accumulated from the marriage, such as … Continue reading →

When a defined benefit plan (DB plan) is terminated, the rights created by a QDRO are assumed in part as obligations of the Pension Benefit Guaranty Corporation (PBGC), which becomes trustee of the plan. PBGC is a federal agency that … Continue reading →

More than twice as many men as woman have pension plans, and the benefits for men are generally much larger than those for woman who have very often been in and out of the workforce rearing children. Women, therefore, find … Continue reading →