What should the commuted value of her pension

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Reference no: EM133326868

Case: Jane is considering leaving her job and pension at age 65 and has 23 years in the defined benefit pension plan which provides a retirement income based on 2% per year of service and the average best five years of income. Her best average five years earnings were $49,000. The pension plan assumes life expectancy is age 92 and the rate of return on 1.5%. What should the commuted value of her pension be if she wanted to transfer the funds into a LIRA? (The present value of the promised income stream).

Reference no: EM133326868

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