Lost retirement benefits relate to employment fringe benefits of employer-funded retirement plan contributions. The employer contribution may be to a defined contribution or a defined benefit retirement plan. The loss of contributions to defined contribution retirement accounts may include two elements of loss. The annual employer contribution that would have been made for the employee’s benefit is lost; an additional loss may include the amounts these contributions would have earned. Defined benefit retirement plans typically provide payments based on average compensation and the number of years worked for the employer. A shortened work life may result in a lower defined benefit retirement payment because the number of years worked is an element of the defined benefit compensation calculation. Calculation of the loss will compare the benefit to be provided with the benefit that would have been provided from retirement through life expectancy. Employee contributions that would have been made during work life reduce this lost benefit.
About The AuthorCharles Amodio is a partner with FAZ Forensics (Ferraro, Amodio & Zarecki CPAs), based in Saratoga Springs, NY. FAZ is a boutique forensic accounting firm committed to supporting the legal community and others in the successful resolution of financial disputes, fraud & financial investigations, economic damage quantification and business valuation matters by delivering valuable forensic accounting expertise and related expert services at an appropriate cost. FAZ is a recognized leader in the forensic accounting profession serving clients in Albany and the Capital Region, Boston, New York City and the surrounding Metropolitan Areas. If you are interested in more information, please contact them at (518) 288-2160.
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