To use a pension or defined-benefit calculator, an individual should carefully and accurately input the requested information into the pension calculator, and then ask the calculator to produce a result. When calculating the value of a pension, the age of the worker, the current dollar amount of the pension, the time of benefit commencement, the life expectancy of the worker and other pieces of information all factor in, Pension Analysis Consultants, Inc. explains.
The purpose of a pension calculator in divorce proceedings is two-fold, according to Pension Benefits, Inc: First, the pension calculator helps determine how much of the pension the working spouse earned during the marriage. Second, the calculator helps determine a present-day or lump-sum value of the pension.
There are multiple ways to value and divide a pension at the time of a divorce. Some calculations value a pension at a fixed dollar amount at the time of divorce. Other calculators say that it is impossible to value the marital portion of a pension until the working person actually collects the pension.
Because pensions are marital property, they are subject to divorce in every state, as of 2015, according to the Women’s Institute for a Secure Retirement. The court can award the marital portion of a pension to a nonearning spouse by directing that the pension fund make payments directly to the spouse, by directing that the earning spouse pay the nonearning spouse each month, or by awarding the nonearning spouse other money or property to offset awarding the entire pension to the earning spouse, according to Voit Economics Group Inc.