Yes, I have two homes. However that would consume a considerable amount of the equity to provide an asset that while valuable in the future is not of any help to me now (the pension I mean). If I have to do this using an offset would I have to provide for the full amount. So lets say the pension would provide £48,000 per year from the time I reached 58, that would mean it's current value using interest rates and mortality tables might be £600,000 ( the amount required now to fund £48,000 per year at that rate ) Would I owe her £600,000 from my equity. Honestly that doesn't seem fair to me as that gives her everything now while I would struggle to pay for anything.
I don't know. It's a UK notion and I can't get exactly what a CETV is from the pension provider in the US but...
1) The 401k which is not really a pension but is only removable at age 59 (I'm 49, and my wife is 42) is $250,000 US dollars. So half of that is $125k. What is the CETV of that. I guess it's $250,000 since is is cash, but yet I can't take it out without penalty so it is not worth $250k in reality right now.
2) My pension is three components a) an HR-10 which is worth $187k right now b) a guaranteed benefit portion which is worth just $28k and c) the part the firm wouldn't split even if I had a QDRO because it's a deferred $344k
It's a deferred benefit plan. Here is what it says "You have earned a Deferred Vested Benefit of $91,958 per year payable at age 58, which is comprised of the Firm -paid portion plus the funding sources in the section below. The settlement of the Firm-paid portion is payable upon withdrawal from the Firm.
Present Value of the Firm-paid portion is $344,775"
So she would be entitled to half of $344,775 as far as I can tell.
"plus the funding sources in the section below" means the HR-10 I've already mentioned + the guaranteed amount that I've also already mentioned.
Here is the exact quote from my pension summary...
Defined Benefit Plan - Annual amount payable at age 58, based on service to 6/30/2014
HR-10 Plan $187,819, Estimated Firm Account (p) $28,020"
16 years for both. Length of the marriage, length of the pensions.