How to Calculate Child Pension
The amount of pension left to a child will be determined by a parent's previous employer and the retirement program they invested in. Typically, a parent will receive a yearly statement that specifies how much a child dependent would be left if the parent were to pass away. As time goes on, and the longer the parent is employed at that business, the higher their pension will be in the long run. In most cases, once the parent passes away, the child or children listed as beneficiaries of their pension will receive a percentage of that pension.
Other People Are Reading
Instructions
-
-
1
Consult with your employer about your pension plan. In some cases, especially with a large corporation, a portion of your pension may be eligible for your child(ren) should you pass away. However, in some cases--as is with the military--a pension can only be passed to a child if they are under 18, or in school under age 23, and incapable of self-support.
-
2
Determine your monthly pension amount. If you are already retired and receiving a pension, you will already know this amount. If you are still working, consult your pension profile with your employer to determine what your monthly pension would be should you retire or stop working at any given point.
-
-
3
Multiply the percentage of pension that your child will be eligible to receive by your total monthly amount. For instance, if you get $1,000 a month from your pension, and your child is eligible to receive 50 percent of that, then she would get $500 a month.
-
4
Have a family member notify your former employer or pension plan disbursement agent of your death. This should be done as soon as possible to avoid mix-ups in payment, and to be sure checks are not issued in your name. Instead, the beneficiary will need to file paperwork with the office, and a death certificate may be required.
-
1
Tips & Warnings
Pensions can be garnished for back taxes or child support. However, there is a limitation on how much can be garnished from each check, so be sure to check with a tax adviser or lawyer regarding such issues.
References
- Photo Credit child image by Byron Moore from Fotolia.com
