Survivor Benefit Present Value Calculator
This page calculates the present value of survivor benefits of a defined benefit pension. It also calculates the present value of the participant’s pension benefits, including the value of the “pop up” feature, which is paid if the survivor beneficiary dies before the participant. This double calculation costs $75, or you can purchase three of them, to be used within a month, for $150.
Calculating the present value of a pension survivor benefit can be useful for a divorcing couple who a) are locked into, or committed to, maintaining the ex-spouse as the survivor beneficiary and b) would like to use the “immediate offset method” for the pension participant to buy out the ex-spouse and keep all future, life time pension benefit payments for him- or herself.
You can see a sample survivor benefit present value report here. In the example in this report, the present value of the survivor benefit is over 20% of the total present value of the pension. It is this high because a) the beneficiary is female, and females have lower mortality rates at any given age; b) the beneficiary is 4 years younger than the pension participant, and is thus likely to survive him; and c) the beneficiary monthly benefit is 2/3 of the standard monthly benefit, which is more generous than some survivor benefits.
Please report any bugs to me and please pass along suggestions on how to make it more comprehensive or user-friendly: [email protected]
|Age||Year||Basic annual pension payment before any cost of living adjust (COLA), if any||Cost of living adjustment (COLA), if any|
A) To pay with a coupon code:i) Enter your coupon code
ii) Click the blue “APPLY” button
iii) Click the large green button “GIVE ME THE PRESENT VALUE”.
B) If you do not have a coupon code, i) purchase the number of calculations you desire through PayPal, and then ii) click the large green button “GIVE ME THE PRESENT VALUE”:
|Age||Year during which Age starts||Partial Year||Gross Annual Benefit||Dollar value of annual COLA in Gross Annual Benefit||Interest discount rate||Probability of Surviving each year||Present Value of Pop Up||Present Value of Annual Benefit|
|Age of Participant||Age of Beneficiary||Year during which Participant Age starts||Partial Year||Gross Annual Benefit||Dollar value of annual COLA in Gross Annual Benefit||Interest discount rate||Probability that Beneficiary Survives each year||Probability that Participant Dies each year||Present Value of Survivor Beneficiary Annual Benefit|