When a pension is marital property, subject to division, a decision has to be made: should we present value the pension and offset it in Equitable Distribution or should we divide the future monthly income stream at retirement via a QDRO?
If the choice is to present value the pension, a Pension Valuation must be done. A "PV" is a mathematical calculation that takes into consideration the monthly benefit amount earned up to the date of separation and the marital portion of the pension, i.e. what portion of the pension was earned during the marriage? Basically, the calculation determines how much money is needed at the date of separation to fund the pension at the Participant's earliest retirement date with full benefits, for the remainder of his life.
Our associates can help you determine which is the best choice for you. Helping you with this important decision and performing Pension Valuation calculations are a service of J. Bouma & Associates.