Troyan, A Legendary Actuarial Consulting Firm, For Pension Evaluations.

Court Admissible Reports Per Your Jurisdiction at an affordable cost.

We specialize in retirement plan analysis for divorce & economic loss matters

court admitted pension experts, available to testify nationwide.

Pension evaluations prepared for lawyers, mediators, & non-attorney litigants.

We guarantee your qdro gets approved!

headquarters of troyan, inc. Home of accucalc & accuqdro software

Pension Evaluation Lawyer Services Downloads Fee Schedule Pay Online Online Order Form
Pension Evaluation
Basic Pension Principles
Cases
Community Property
Dividing Marital or Community Property
Divorce & Retirement FAQs
Equitable Distribution
Experience with Your Plan
Pension Evaluation Issues
Pensions
Retirement Terms
Social Security Offsets
State Pension Evaluation Alerts
State Pension Evaluation Classification
State Specific Information
State Retirement Plans and Divorce Information
State Listing of Statuses Disallowing Personal Identities In QDROs
State Analysis of IRA Exemptions
Collection Laws and Exemptions by State
Tax Treatment in Pension Evaluation
Distribution from Qualified Plans
Webutation
Click here to learn more about pension evaluations
Get a pension evaluation in less than 1 week Click here to read and print our company forms

What Is The Rate Of Interest Used To Value A Pension In Divorce?

Q. Kim C., of Alabama wants to know: What is the rate of interest used to value a pension in divorce?

A. Brett, from the QDRO Department of Pension Evaluators®at Troyan, Inc.®replies: "U.S. Government bond rates are ideal for valuing pension plans in divorce, because they are the only rates that are guaranteed to span over long periods of time. Actuarial Standard of Practice states that, unless another assumption is clearly warranted by the facts and circumstances, an interest rate for valuing retirement plan benefits in domestic relations actions should be a low-risk rate of investment return.

Various pension experts suggest the 30-year or 20-year U.S. Treasury Bond Constant Maturity Rate for the month of the valuation date. There is an inverse relationship between interest rates and present values. A lower interest rate results in a higher present value and a higher interest rate results in a lower present value. Between October 2008 and December 2008, the 20-year U.S. Treasury Bond constant maturity rates slid to the extent that a pension valuation in December would result in a valuation that was 60 percent greater than the same valuation would have shown in October.

So, while DC plan accounts such as 401(k) plans are plummeting in value, calculated values for pension plans are rising. Troyan now has updated its ACCUCALC software for advanced 401(k) tracing reports."

Brett Disdale

Lead QDRO Consultant

DISCLAIMER: Any legal information on this blog has been prepared by Troyan from informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Note that sending an e-mail to Troyan does not create an attorney-client relationship, and none will be formed unless there is an agreement between the firm and the individual.

Comments

No Comments Posted
Visitor Security About Us Resources Contact Us
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.