Overview

The actuarial treatment of calculations for divorce is in a state of flux.  The Actuarial Standards Board has recently revised Standard #34, “Actuarial Practice Concerning Retirement Plan Benefits in Domestic Relations Actions,” 16 years after its original publication.  The most important revision is the prohibition of calculating a life expectancy, then using an arbitrary discount rate to generate the “discounted value” of the principal’s annuity.  The practice of looking up a life expectancy first is a common method used by accountants and economists who have no clue how mortality tables function.  They do not have comparable Standards of Practice to rely on when performing what is, in essence, an actuarial calculation.  The calculation of a present value with life contingencies (that is, mortality in this case), has always been in the domain of the actuary.  We now have a Standard of Practice to codify how this calculation should be performed.  Family attorneys are encouraged to read this Standard to learn how actuaries properly calculate the marital asset of a defined benefit plan benefit.

QILDROs for General Assembly Retirement System (GARS)

In the case of a principal who has worked for GARS, the normal form of benefit is an unreduced joint and 66-2/3% survivor annuity.  In the case of divorce, both principal and alternate payee are awarded a portion of the benefit.  Not only is the Trust of the GARS not penalized by such a division, it actually turns a profit to the extent of not having to pay the promised amount of the survivor annuity.

We have assisted in the calculation of the reduction in protected benefit to the alternate payee.  Turning to a life insurance product to replicate such protection can be six times more expensive than an agreed upon valuation produced by our skilled staff.

Visit our https://www.qildro-qdro.com website for more information.