Splitting Pension Through Divorce

In a divorce situation, an area that can easily be overlooked is the valuation and distribution of pension assets and benefits. It’s highly recommended that divorcing couples split pension funds in order to give both parties full control of their share portions.

Present Value Services and QDRO Services

At Hildi Incorporated, our actuaries can help you and your clients through all the technical and mathematical issues of dividing a pension and other benefits upon marital dissolution.

Present Value Services

At Hildi Incorporated, the actuaries can help in the following areas:

  • Traditional actuarial present value reports for defined benefit pension plans
  • Expert testimony
  • Guidance on choosing to offset assets vs. drafting a QDRO
  • Review of opposing counsel’s present value calculations
  • Present value of Retiree Health Care Benefits

Fee Schedule for Actuarial Present Value Services

Prepayment is required before any present value calculations or other actuarial work can be prepared and released.

Traditional Present Value Report

  • This present value measures the normal retirement benefit. This is usually the age at which benefits are not reduced or subsidized. This value should answer the question, “What is the value of this pension today?” The items that must be provided for this calculation are the accrued normal retirement benefit on the applicable valuation date, and other demographic information such as birth date, date of marriage etc.
  • Government Plans may require an additional charge. Governmental calculations usually involve some additional work due to features such as a Post Retirement Cost of Living Increase.
  • If benefit amounts for early retirement ages are included with the data, we will include up to one early retirement age present value at no additional charge. Many times there are "early retirement subsidies" in a pension which should be valued.

Special Actuarial Projects and Expert Testimony

  • Special calculations, out of scope work, and expert testimony is available on an hourly fee basis. A retainer will be required for expert testimony work.

These rates are subject to change.

QDRO Services

At Hildi Incorporated, the actuaries can help in the following areas:

  • Drafting custom QDROs
  • Technical Pension Plan review of a proposed QDRO
  • Review of opposing counsel’s draft QDROs
  • Technical Pension Plan review of a proposed Governmental DRO
  • QDRO strategies (separate vs. shared interest)
  • Expert testimony
  • Audit of old QDRO files to look for potential problems

A retainer is required before any initiation of QDRO consulting or drafting. The remaining fees need to be paid before the final QDRO can be released.

Contact Information

11800 Singletree Lane
Suite 305
Minneapolis, MN 55344

Phone: 952.934.5554
Fax: 952.934.3027
e-mail: contactus@hildiinc.com