Pension Plan - Single Life Annuity (Divorced)

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Pension Plan - Single Life Annuity (Divorced) rick wintomac 06-29-2008  Re: Pension Plan - Single Life Annuity (Divorced) joetaxpayer 06-29-2008  Re: Pension Plan - Single Life Annuity (Divorced) Cal 06-30-2008  Re: Pension Plan - Single Life Annuity (Divorced) Elizabeth Richa... 06-30-2008
Posted by rick wintomac on June 29, 2008, 8:45 pm I have a traditional (Defined Benefit) pension plan. As I am divorced, my former spouse is entitled to her share through the date of separation. My pension benefit will be a single life annuity, and I will have the option of receiving the monthly benefit starting at normal retirement for the plan, or at an earlier date. 1. Does the commencement of the benefits for the former spouse coincide with the date that I elect, or is it a fixed date, such as my normal retirement age? 2. If the former spouse predeceases the plan participant, does that affect the payments to the plan participant? Or does the former spouse's benefit merely cease and stay in the plan? Thanks much. -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by joetaxpayer on June 29, 2008, 9:03 pm rick wintomac wrote: > I have a traditional (Defined Benefit) pension plan. As I am > divorced, my former spouse is entitled to her share through the date > of separation. > > My pension benefit will be a single life annuity, and I will have the > option of receiving the monthly benefit starting at normal retirement > for the plan, or at an earlier date. > > 1. Does the commencement of the benefits for the former spouse > coincide with the date that I elect, or is it a fixed date, such as my > normal retirement age? > > 2. If the former spouse predeceases the plan participant, does that > affect the payments to the plan participant? Or does the former > spouse's benefit merely cease and stay in the plan? Was there any court ordered QDRO or anything like that at the time of the divorce? Her share through date of separation? I can understand the intent of that sentence but who, exactly, was tasked with doing the math? I think this can be handled one of a number of ways, but you should have paperwork that compels you to one specific method. Joe www.blog.joetaxpayer.com -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Cal on June 30, 2008, 5:03 am >I have a traditional (Defined Benefit) pension plan. As I am > divorced, my former spouse is entitled to her share through the date > of separation. Her share of what? The amount that was contributed? Certainly not a share of the Annuity Benfit, since it is as you state "a Single Life Annuity" > > My pension benefit will be a single life annuity, and I will have the > option of receiving the monthly benefit starting at normal retirement > for the plan, or at an earlier date. > Single life Annuity GENERALLY means that payments will be made to the ANNUITANT as long as HE is alive..... > 1. Does the commencement of the benefits for the former spouse > coincide with the date that I elect, or is it a fixed date, such as my > normal retirement age? One would have to see BOTH the Contract and the Divorce Decree ! ! ! ! ! > > 2. If the former spouse predeceases the plan participant, does that > affect the payments to the plan participant? Or does the former > spouse's benefit merely cease and stay in the plan? At this point one can not determine theose supposed Spouse Payments. Cal Lester CLU -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Elizabeth Richardson on June 30, 2008, 3:42 pm > > 1. Does the commencement of the benefits for the former spouse > coincide with the date that I elect, or is it a fixed date, such as my > normal retirement age? > > 2. If the former spouse predeceases the plan participant, does that > affect the payments to the plan participant? Or does the former > spouse's benefit merely cease and stay in the plan? > Undoubtedly, the answers to these questions depend on the terms specified by your company. You need to contact your HR department for clarification. Elizabeth Richardson -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. 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