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DIRECTIONS FOR COMPLETING THE FORM These directions are given following the fill-in-the-blanks from left to right and from top to bottom. DATE: Indicate the date you are completing the form. CLIENT'S NAME: For attorneys only - please indicate your client's name. If you are not an attorney and are making the request on your own behalf leave this space blank. COUNTY: Indicate the name of the county in which the divorce is taking place. ATTORNEY'S NAME: This is the name of the person requesting the appraisal and the person to whom the completed report will be sent. If you are not an attorney and are making the request on your own behalf indicate your name. MAILING ADDRESS, CITY, STATE, ZIP: This is the address of the person requesting the appraisal and the address to which the completed report will be sent. TELEPHONE: This is the telephone number of the person requesting the appraisal. This is the number at which you would like to be contacted if the pension analyst has any questions regarding your request. For individuals, please indicate if you are submitting a work or home number. In either case, the analyst will be discreet. FAX: This is the fax number of the person requesting the appraisal. This is the number at which you would like to receive faxes regarding your request. If you don't have a fax number or would prefer not to receive any faxes leave this space blank. E-MAIL: This is the e-mail address of the person requesting the appraisal. This is the address at which you would like to receive e-mails regarding your request. If you don't have an e-mail or would prefer not to receive any e-mails leave this space blank. METHOD OF VALUATION: As with any process, there are several different methods that may be used to calculate a present value. Appraisals done by each method we offer have been accepted by the courts. The major differences between the methods we use is in the interest rate that is employed to discount the monthly benefit to present value and the table that is used to determine how long a person will receive their retirement benefit. The impact that these differences have varies. The process however, is the same. Present Value is determined as follows: Interest rate assumption and it's impact: Interest rates and present value have an inverse relationship. A higher interest rate will yield a lower present value and vice versa. However, there is no rule of thumb that the interest rate under one method or another is higher or lower than that of another method. The GATT Method incorporates the 30-Year Treasury Bond rate in effect for the month of the Valuation Date (see Valuation Date below). For our purposes, this interest rate is updated monthly. The PBGC Method utilizes the interest rates set forth by the Pension Benefit Guarantee Corporation. The PBGC is the government entity that insures private pension plans (similar to the way the FDIC insures your savings account at the bank). The PBGC publishes interest rates monthly. Tables and their impact: The 1994 Group Annuity Mortality Tables do not measure life expectancy. Rather, they chart the probability that a person will live from one year to the next. Each table begins with a population of 10,000,000 (men or women; the tables are gender specific). As the population ages, the number of people remaining alive for each subsequent year is charted thus generating a probability factor that an individual will still be living with each passing year. VALUATION DATE: The valuation date is the date from which the interest rate used in determining present value is drawn, thereby establishing value as of that date. The valuation date represents the point in time when the pension is being appraised (valued). The Present Value of the monthly benefit the pensionholder (employee) will receive is very sensitive to this date because it affects and determines the following: 1. The age of the pensionholder. 2. The time remaining until benefits commence (unless already retired). 3. The interest rate(s) to be used to calculate the value. 4. The future estimated lifetime of the pensionholder. The laws for each State vary regarding the Valuation Date. Be sure to use the appropriate date for your state.
REQUIRED INFORMATION ABOUT PENSIONHOLDER NAME: This is the name of the person to whom the pension belongs. SEX: This is the gender of the person to whom the pension belongs. DATE OF BIRTH: This is the birth date of the person to whom the pension belongs. Day, month and year should be indicated. DATE OF MARRIAGE: This is the date the parties were married. Day, month and year should be indicated. DATE OF CLASSIFICATION (DATE MARRIAGE ENDED): The Date the Marriage Ended (Also known as Cut-off Date or Date of Classification) represents the point in time when laws of each state consider that the parties can no longer acquire marital property. After this date any property acquired by each individual is considered his or hers. The Present Value of the monthly benefit the pensionholder (employee) will receive is very sensitive to this date because it affects and determines the following: 1. The portion of the monthly benefit earned during the marriage. 2. The Present Value of the monthly benefit earned during the marriage. The laws for each State vary regarding the Marriage End Date. Be sure to use the appropriate date for your state.
NAME OF PENSION PLAN: This is the name of the pension plan of which the participant is a member. E.g., ABC Company, Inc. Retirement Plan or XYZ Company, Inc. Management Pension Plan. It is not the person's job description (e.g. postal worker) or the name of the company (e.g. Lucent Technologies, Inc.) although the name of the company is usually incorporated in the name of the plan. DATE EMPLOYMENT STARTED: This is the date the employee began participation in the pension plan. It may be the date the employee started employment. However, some companies can require a waiting period or allow the employee to start participation at the employee's discretion. The Present Value of the monthly benefit the pensionholder (employee) will receive is very sensitive to this date because it affects and determines the following: 1. The amount of the monthly benefit the pensionholder will receive. 2. The portion of the monthly benefit earned during the marriage. NORMAL RETIREMENT AGE: The Normal Retirement Age represents the point in time (as defined by the pension plan) when the pensionholder (employee) can stop working and start receiving normal retirement benefits. The Present Value of the monthly benefit the pensionholder (employee) will receive is very sensitive to retirement age because it affects and determines the following: 1. The time remaining until benefits commence (unless already retired). 2. The future estimated lifetime of the pensionholder. The laws for each State vary regarding the Normal Retirement Age to be used for valuing pensions for divorce purposes. Some states use the (1) Earliest Age the employee can retire and receive unreduced benefits while other states assume it is (2) the employee-spouse's age on the earliest date the employee-spouse can retire with a normal retirement and a full pension assuming the employee-spouse continues employment.
If Applicable: TERMINATION DATE: The date that the pensionholder terminated employment, if applicable. Day, month and year should be indicated. If the employee is still working leave this space blank. RETIREMENT DATE: The date that the pensionholder retired, if applicable. Day, month and year should be indicated. If the employee has not yet retired leave this space blank. If the employee has retired: Was a survivor benefit selected? A survivor benefit is a monthly benefit payable to the spouse of a retiree upon the death of the retiree. Typically, for an employee who is married at retirement, a survivor benefit option is automatically elected unless the non-employee spouse relinquishes his/her right to the survivor benefit. (This usually requires the non-employee spouse to sign a document saying that they understand that they are giving up their right to a survivor benefit). A survivor benefit has a value as a marital asset and can be appraised just as the employee's retirement benefit. Is the pensionholder receiving Disability Benefits? Yes No The answer to this question helps us determine the appropriate mortality tables to use. The receipt of disability benefits indicates that the pensionholder is considered "disabled" by the Plan. The table used to determine how long he/she will receive pension benefits reflects that circumstance. Being considered "disabled" by the Plan may not necessarily mean that the pensionholder is completely incapacitated. It typically means that the person can no longer do the job he/she was doing prior to becoming disabled. He/she may, however, be employable in another capacity with another company. If yes, are Social Security Disability Benefits being paid? Yes No The answer to this question helps us determine the appropriate mortality tables to use. The receipt of Social Security Disability Benefits generally indicates that the pensionholder is incapacitated to the extent that he/she is unemployable in any capacity. The mortality table used to determine how long he/she will receive pension benefits reflects that circumstance.
The accrued (or earned) monthly pension benefit is the amount that would be paid to the employee as a monthly pension benefit based upon the years of service rendered by the employee as of the accrual date payable when the employee reaches retirement. In other words, assuming the employee terminated his/her employment as of the accrual date, the accrued monthly benefit is the amount that would be paid as a pension when the employee retires. Most plans have the ability to calculate this amount as of any accrual date requested. Further, in many cases, employees are given annual benefit statements that illustrate their accrued monthly pension benefit as of December 31 of the given year. If you have written documentation from the Plan indicating the accrued benefit please include a copy with your request. IS THE EMPLOYEE ELIGIBLE FOR POST-RETIREMENT COST-OF-LIVING INCREASES? If the answer is yes, what has been the average historical percentage increase per year. If you answer YES and do not indicate the percentage, we will assume a rate equal to 60% of the increase in the Consumer Price Index for the year prior to the Date of Valuation. A cost-of-living adjustment is an incremental increase in an individual's monthly retirement benefit, granted to keep the retiree's benefits in line with inflation. This should not be confused with a cost-of-living adjustment (a raise) granted to an employee before retirement. When employed in a present value analysis, a COLA lowers the interest rate assumption(s). Interest rates and present value have an inverse relationship. Therefore, a lower interest rate results in a higher present value. WILL THE EMPLOYEE RECEIVE SOCIAL SECURITY FOR THE YEARS OF PLAN PARTICIPATION? Most people who work for a private company pay into Social Security and will therefore be entitled to receive Social Security benefits when they retire. If this is the case in your circumstance choose YES. However, some government employees do not pay into Social Security and will therefore not be entitled to receive Social Security benefits when they retire unless they have worked in other jobs and paid into Social Security for the required number of quarters. When a person participates in a plan where they don't pay into Social Security and will therefore not be entitled to receive Social Security for their years of participation in that particular plan, part of their pension benefit may be considered to be in lieu of Social Security. Since, according to Federal Statute, Social Security is not divisible in divorce, it can be argued that benefits received in lieu of Social Security are also not divisible. To accommodate those cases we can provide a Social Security Offset calculation. In this calculation we determine how much the participant would have been eligible to receive had they paid into Social Security while a member of this plan. This amount is subtracted from the present value of the pension benefit effectively reducing the value for equitable distribution (i.e. the amount to be divided). Be aware however, that case law supporting this argument does not exist in every state. If no case law exists in your state the point may have to be argued in front of a judge if opposing counsel refuses to accept the premise. If the answer to this questions is NO in your particular circumstance and you would like us to perform the Social Security Offset calculation check the box at the bottom of the form and be aware that there is an additional charge of $70.00 (total cost of the report is $205.00). Also, forward to us a history of earnings for each year of plan participation. IS THE EMPLOYEE FULLY VESTED? Vesting refers to the non-forfeitable right to receive a pension benefit. Different companies have different vesting schedules, or the rate at which an employee earns the right to receive a full benefit at the normal retirement age. Five years of employment is a typical vesting requirement. However, companies may require 10 or more years of service before the employee is fully vested. This information is usually obtainable from the Summary Plan Description or a Plan Representative. Additionally, an employee may earn a partial right to their pension over the vesting period with each successive year of service (e.g., 20% the first year, 40% the second year, etc. until 100% vesting is achieved in the fifth year). Or, they may not be 100% vested until completion of the all the required years. This type of vesting is called cliff vesting. Until the member reaches the cliff (e.g. five years), he/she has no vested interest in the pension benefit. If the employee in this circumstance is not fully vested indicate the number of years of service the pension plan requires for vesting and the vesting schedule. We will make an appropriate reduction to the present value to account for the possibility that the employee may not earn a non-forfeitable right to receive a pension benefit. I have enclosed my check payable to Pension Appraisers, Inc. for $175.00 The fee to have a pension appraised is $175.00. Check this box if you are paying by check. Card Number The fee to have a pension appraised is $175.00. Check this box if you are paying by credit card and be sure to enter your card number in the boxes. Include the expiration date and sign in the space marked Signature. ADDITIONAL SERVICES Multiple valuations: You may wish to receive more than one valuation for the same person in the same plan. For example, if the parties cannot agree on the date the marriage ended you may want to use two different dates to see the results of each. Or, you may wish to have the same pension valued by two different methods. Each additional appraisal for the same person in the same plan is $125.00. Indicate the method or date for the second appraisal. The $125.00 fee does not apply to valuing two pensions for two different people or to valuing two different pensions for the same person. E.g., if husband and wife both have pensions the fee is $350.00 total to value both ($175.00 per appraisal). Or, if husband has a pension from ABC Company and a second pension from XYZ Company the fee is $350.00 total to value both ($175.00 per appraisal). SOCIAL SECURITY OFFSET REPORTS Some government employees do not pay into Social Security and will therefore not be entitled to receive Social Security benefits when they retire unless they have worked in other jobs and paid into Social Security for the required number of quarters. When a person participates in a plan where they don't pay into Social Security and will therefore not be entitled to receive Social Security for their years of participation in that particular plan, part of their pension benefit may be considered to be in lieu of Social Security. Since, according to Federal Statute, Social Security is not divisible in divorce, it can be argued that benefits received in lieu of Social Security are also not divisible. To accommodate those cases we can provide a Social Security Offset calculation. In this calculation we determine the amount of the Social Security benefit that the participant would have been eligible to receive had they paid into Social Security while a member of this plan. This amount is subtracted from the present value of the pension benefit effectively reducing the value for equitable distribution (i.e. the amount to be divided). Be aware however, that case law supporting this argument does not exist in every state. If no case law exists in your state the point may have to be argued in front of a judge if opposing counsel refuses to accept the premise. If you would like us to perform the Social Security Offset calculation check this box. There is an additional charge of $125.00 (total cost of the report is $300.00). Also, forward to us a history of earnings for each year of plan participation. SAME DAY SERVICE If you require expedited service we will, upon receipt of the information, complete the report and return the appraisal via fax. For requests received early in the day the report will be returned before 5:00 PM. For requests received late in the day the report will be returned the following business morning. 
Return to Request Forms
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