Generate Pension Report Create Account Log In How It Works Online Demo Sample Report Download Pension Form Print Pension Form QDRO Request Forms FREE Download Book Basics of Pensions In Depth Analysis Special Issues Actuarial Standards Sample Authorizations Pension FAQs QDRO FAQs Glossary Join Our Mailing List About Our Company About Our Analysts Contact Us Phone Consultations Our Fee Schedule Testimony Your Privacy Security Terms of Use Customer Support	Deferred Offset Awards In some cases, the Court or the parties have settled upon a Deferred Offset Award. This is a combination of an Immediate Offset and Deferred Distribution. The award is based upon an immediate offset, but is paid in installments. For example, the present value of the pensionholder's retirement benefit was $20,000. The spouse is awarded 50% or $10,000. However, in an attempt to preserve some of the cash assets in the possession of the pensionholder, a payment plan is set up for payment to the spouse of his/her share of the pension. However, this type of award possesses some problems. Present value provides the current lump sum value of the benefits. If benefits are going to be paid in the future, the present value is no longer relevant, and should not be used as the basis of an award. Is $10,000 in cash payable right now equal in value to $100 per month for the next 100 months? No. Fashioning an award using the present value in this manner substantially short changes the spouse. To avoid this problem and stay within the confines of a Deferred Offset Award the court can implement an interest factor. Instead of paying the spouse $100 per month for the next 100 months to payoff a $10,000 obligation, the pensionholder can pay $138 per month for the next 100 months. This increase in the installment payment accounts for 8% interest per year on the amounts owed to the spouse. Another problem with this type of award is that the parties are limited by the amount of liquid funds available to the pensionholder. If it is decided that the pensionholder is to pay $5,000 now and another $5,000 in 3 months to the spouse, in order for this to be feasible, the pensionholder has to have these funds available. In order to avoid these issues, it may be easier to choose either the Immediate Offset or Deferred Distribution Method, instead of trying to implement parts of both principles. Return to In Depth Analysis

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