How to track a Defined Pension Plan Benefit?
I need some help in sorting out my dilemma. My part-time job (used to be my full time job), has a defined pension benefit plan. I have contributed $18k into this plan in 29 years from now, I have a guaranteed 60% life pension (for me and my spouse) that is valued at paying $4.7k/year during retirement. (The value will continue to go up as long as I keep working there).
I would like to track this as part of my net worth but I have no clue on how to do this. The work pension plan company will not provide me with a commuted dollar value (they say this is only provided after you have quit or died). Should I just track my contributions or not track it at all? I feel that it is worth something but I have no clue on how to track it.
I'm tracking my other pension as it is a defined contribution plan and I look up it's current market value daily.
What would you recommend?
Thank you for your help!
Hi, Navy Blue Storm
I used my annual tax slips to get the actual amount of previous contributions, both mine and my employer's. I created two tracking accounts (one for my contributions and one for my employers) and entered values for past years, then I created a recurring monthly transaction for the ongoing contributions. There was no way for me to figure out a valuation for the growth within the pension plan and how that might affect my actual credit balance, so I didn't bother. This provided me with a low-ball estimate of the amounts I might be in a position to transfer to alternative retirement plans if I left my employer for another, which I was considering at the time I decided to do this. That possible change in employment and having to decide what to do with my pension dollars was my original reason for wanting to get some sort of valuation.
Hope this helps.