What is the net present value of a pension transfer and why is it important when evaluating a transfer?

What is the net present value of a pension transfer and why is it important when evaluating a transfer?

• A. The amount of money required today to secure future pension benefits.
• B. The guaranteed payout available at retirement regardless of transfer value.
• C. The difference between future benefits and current transfer value, ignoring costs.
• D. The present value of future benefits net of costs; crucial for comparing to current transfer value.

Answer: (D)