What is a mortality table appraisal?
This approach is based upon the use of Mortality Tables. Present Value is determined as follows: (Four Step Process) (1.) Calculate the amount of the monthly pension benefit if it were assumed that the Pension Holder was at retirement age with a fully vested pension based upon compensation and plan provisions as of the Date the Marriage Ended. (2.) Mortality Tables and the application of an appropriate interest rate are utilized to determine present value. (3.) The present value is reduced if the plan is not vested. (4.) If a portion of the pension was earned outside the marriage, a coverture fraction is applied. From an actuarial standpoint, the use of mortality tables is preferable to the use of life expectancy tables. However, case law in some states dictates the use of Life Expectancy Tables.
