Measuring Public Safety Retirement Plan Wealth: Implications forAssessing Economic Loss
Journal of Legal Economics
In the typical loss appraisal in a wrongful death or personal injury case, an addition to the loss is made for foregone retirement benefits. Often, this is done by adding an amount based on the percentage of wage earnings that is based on the employer's contribution (either explicitly or implicitly) to some sort of retirement plan. If the plan is actuarially fair,1 this approach does accurately measure the loss. However, some plans are not actuarially fair or have specific arrangements that make this standard approach invalid. Alternatively, a projection of retirement benefits is made on "with" and "without-injury" bases with the loss measured as the present value of the differences over time.
Lewis, W. Cris, Frank Caliendo, and Tyler J. Bowles. “Measuring Public Safety Retirement Plan Wealth: Implications for Assessing Economic Loss.” Journal of Legal Economics 11(2, Fall 2001):61-80. (Published June 2003)