What type of pension requires an actuarial valuation?
An actuarial valuation is required for a pension that has accrued under a Defined Benefit plan in order to calculate the capitalized value of the pension entitlements at the date of separation. An actuarial valuation is not required for a pension that has accrued under a Defined Contribution plan. Under that type of plan, the value of the participant’s pension at any time should be equal to the sum of employee and employer contributions with investment earnings. The difference between the values of the funds at marriage and at separation is subject to division. We recommend that you contact the plan administrator or GML if you are uncertain about the type of pension plan to which the member spouse belongs.
