Are you in need of pension valuation services? Then you need to know what the most important things are for you to take into consideration. The fundamentals of pension accounting and funding are impossible to ignore in pension valuation. Therefore, you must be aware of the things you should not compromise on.
Defining Pension Accounting and Pension Funding
Pension funding describes the funds in a pool contributed by both employers and employees for the benefits of the employees’ retirements. These funds are typically invested in providing pension funds for employees upon retirement.
Pension accounting is the annual expense calculation of a pension fund’s assets and liabilities. It also includes the yearly disclosure in the company’s financial statement.
Fundamentals of Pension Funding and Pension Accounting
While pension accounting might seem to the layman like an extension of pension funding, the two operate under different rules. The amount calculated under both follows different rules. Therefore you need to pay attention to this during your pension valuation.
With the right team, calculating your dividends should be a smooth process. However, even the most experienced accountants can make mistakes if they are not familiar with the process of pension valuation. A formula that calculates your years of service and your salary gives you your actuarial valuation. But finding the perfect formulae while considering all extenuating circumstances is essential.
For instance, if you are not yet retired, you cannot know the full monetary value of your pension in case of divorce. Therefore, you have to work with assumptions and inferred figures. While this might seem straightforward, it really is not. It is extremely easy to get the figures mixed up.
Therefore, there is only one way to go — use a leading expert team in pension valuation. The ideal team will be able to discover the exact monetary value of your pension funds before negotiating a settlement with your former spouse.
Taking Government Regulations Into the Equation
Governmental bodies and regulations guide pension funding and pension accounting. The Internal Revenue Code (IRC) is responsible for pension funding regulations. They determine the annual minimum required contribution and the yearly maximum tax-deductible contribution.
Pension accounting is governed by the Financial Accounting Standards Board (FASB). This falls under the generally accepted accounting principles (GAAP) in the U.S. This body is responsible for oversight of companies’ pension accounting.
During your pension fund valuation, the specific regulations governing the calculation of pension funding and pension accounting must not be overlooked. The ideal team will be up to date on information regarding this venture. Therefore, they will be in the best position to cater to your needs.
Our team is filled with top-of-the-line workers that are considered premier experts by the State of California to provide adequate valuation and division of retirement benefits in divorce. We are well versed in the subject matter while remaining adaptable to evolving laws and regulations.
With us in charge of your account, your pension funds valuation is one less thing you will be worrying about. Contact Moon, Schwartz, & Madden for a free consultation today by dialing (925) 258-7100.Pension Valuation