The Creveling MacLennan Company
Frequently Asked Questions
What is a 'Pension'?
A pension is a promise of future payments ("defined benefit") usually payable over a lifetime. In contrast, a 401(k) plan does not promise any future payments, instead, the benefit is the account balance value, which can vary over time.
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What is an 'Actuary'?
In the most general sense, an actuary is a professional that specializes in the analysis of future contingent events. For example, a pension involves future contingent events, since the receipt of payments is normally conditioned on the pensioner surviving to receive the payment. Actuaries usually have an educational background in mathematics, and undergo years of additional study and examinations to become members of the actuarial profession. Actuaries must adhere to rigorous Actuarial Standards of Practice.
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Why hire an Actuary?
As mentioned above, because a pension involves promised future payments, an actuary is required to value a pension using actuarial methodology. Only actuaries are trained specifically to value pensions. Use of non-actuarial methods to value pensions can give inaccurate results. Non-actuarial methods are prohibited by actuarial standards of practice. In addition to using correct methodology, actuaries are trained to set appropriate assumptions for the purpose at hand.
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What information is needed for a pension appraisal?
The data needed to complete an appraisal varies greatly depending on the pension plan. Our standard of practice is normally to ask for benefit statements and any other related documents or information you have. We will review the documents and information we receive and request any additional information that is needed. All appraisals require a date of birth, date of marriage, and cutoff date for the marital interest.
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How do I send my information to you?
Any method that is convenient for our client is acceptable (email, fax, regular mail, or text).
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My spouse has hired an expert. Should I hire my own expert?
Yes. You should not assume your spouse's expert is unbiased and has your interest in mind. Some experts act as advocates for the party that hired them, and may use assumptions and methods favorable to their client.
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If a pension is being divided, do we need a valuation?
Not always, but often you do. The answer is a bit technical. Generally, "separate interest" divisions do not require an appraisal if the marital pension is equally divided. However, "shared interest" divisions do generally require actuarial analysis to accomplish an equal division of the marital pension. Pensions that are in payout status, and federal and military pensions, all require "shared interest" divisions. And, if you are not equally dividing the marital pension, then an appraisal is required to equalize assets of each spouse, regardless of whether the division is a shared interest or separate interest (such as when one party is awarded the family home in exchange for a smaller pension award).
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Do you have experience with Oregon PERS?
Yes, we have extensive experience with Oregon PERS. We have completed hundreds of Oregon PERS appraisals. The Creveling MacLennan Company has also provided litigation support for high-profile lawsuits involving public employee unions and the State of Oregon.
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Do you do out-of-state pension appraisals?
Yes, we routinely do appraisals for Washington and California state pension systems. We also have experience with many other state systems.
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What other kinds of pensions do you value?
We have extensive experience with union plans, FERS, CSRS, military pensions, and innumerable private pension plans.
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What is the turnaround time?
Our normal turnaround time is 1-2 weeks. However, we can usually accommodate special deadlines.
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Do you do rush projects?
Yes we offer rush service for an additional fee.
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What is the cost of an appraisal?
Because we do not take a "cookie cutter" approach to pension appraisal, a fee is quoted when we know the scope of the work. However, most appraisals are in the $360-$480 fee range.
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How do we pay you?
Our invoice will have a PayPal link for online payment with a credit card. We also accept checks. We generally require payment in advance.
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Do you also prepare QDRO's?
No, we do not prepare QDRO's. We recommend using the services of an experienced QDRO attorney to prepare QDRO's.
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