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...this service provides an independent appraisal of the lump sum value of your pension plan benefit.  Also, you may be wondering whether you should take a lump sum or an annuity.  Our service provides present value comparisons between optional forms of benefits, as well as many other considerations you may not be aware of.  In addition, the interest rates used to determine your lump sum change at least annually, but often quarterly or even monthly.  We can assist you in determining the impact changes in interest rates will have on your lump sum.

• Note: Beginning in 2008, pension plans are allowed to begin phasing-in (over 5 years) reductions in your lump sum benefit of up to 65%. 
• Also, if your plan is underfunded, you may not be able to receive your lump sum immediately.

• Except for small amounts, a lump sum distribution cannot be paid without the consent of the participant, and if married, the spouse.
• Minimum actuarial present value factors determined using the "applicable interest rate" and the "applicable mortality table" must be used to convert the monthly retirement annuity to a lump sum payment.
• The subsidy in an early retirement benefit (e.g. unreduced early retirement at 30 years of service) is not required to be included in the value of the lump sum option.
• The relative value of a lump sum distribution to a subsidized early retirement annuity must be disclosed if the subsidy is not included in the lump sum.
• If the value of a subsidy is (has been) included by a plan in the lump sum present value option, it cannot be removed from the pension benefit already accrued.
• Many other laws and regulations (which may not be specifically identified in the plan provisions) must be followed.

You may be thinking of electing a lump sum distribution from your defined benefit pension plan instead of monthly annuity payments.  The conversion of the monthly benefit to the lump sum present value within a defined benefit plan is often not as simple as taking a present value factor from an actuarial table and applying it to the annuity.  Since this form of payment immediately distributes all future benefits, it is important that your calculation be correct.  As time passes subsequent to your lump sum payment, it may be difficult to get corrections made.  Contact us now!

You will receive consultation and a Pension Benefit Evaluation Report which will detail the results of the Actuary's review.