Sentences with phrase «commuted value of the plan»
If the source of funds is a DB plan, the plan's actuaries will calculate the commuted value of the plan — that is, the amount that is equivalent to the present value of the pension payments you could have elected to wait and receive in the future.
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Many retirees face the choice of taking monthly payments from their employer's pension plan or transferring the commuted value into an investment account.
(3) The commuted value of a member's early retirement pension must be not less than the commuted value of the member's pension benefit under the pension plan.
The surrender value can be either used to buy a deferred annuity plan form the company or 1 / 3rd of the value can be commuted and the rest has to be used to buy annuity.