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Started By
Message
re: Pat Summitt leaves all ‘tangible personal property’ to son Tyler in will
Posted on 8/25/16 at 4:04 pm to slackster
Posted on 8/25/16 at 4:04 pm to slackster
quote:
It is fairly common in the public sector in my experience. People are freaking out about her son getting the money for his lifetime, but the odds are it wasn't any more expensive to the state than Pat's single life option when it was initiated.
$14,500/month is a ton of money, but it is still $80k less per year than what Pat's single life option would have paid out. That kind of thing adds up quickly in a NPV calculation. Threads like this bring out the people who suck at math.
All that.
quote:
slackster
Wait, frick you
1
Posted on 8/25/16 at 4:24 pm to slackster
quote:
It is fairly common in the public sector in my experience. People are freaking out about her son getting the money for his lifetime, but the odds are it wasn't any more expensive to the state than Pat's single life option when it was initiated. $14,500/month is a ton of money, but it is still $80k less per year than what Pat's single life option would have paid out. That kind of thing adds up quickly in a NPV calculation. Threads like this bring out the people who suck at math.
The people who suck at math work for the states and have committed to pay pensions they can never afford. States owe trillions of dollars they won't be able to afford.
Posted on 8/25/16 at 4:48 pm to The Torch
Has that baby been born?
Posted on 8/25/16 at 4:56 pm to TechDawg2007
I know Summit didn't make the rules but tell me in what situation this seems reasonable. Benefits should end with the death of the primary. Ridiculous a state has to foot the bill for this.
Posted on 8/25/16 at 5:03 pm to slinger1317
$14,460 / 3 = $4,820
Posted on 8/25/16 at 5:28 pm to slinger1317
quote:
I know Summit didn't make the rules but tell me in what situation this seems reasonable. Benefits should end with the death of the primary. Ridiculous a state has to foot the bill for this.
If you want to take issue with her son getting the money for life, should also take issue with Pat getting $253k/year if she chose a single life option. The actuarial cost of both pensions are essentially the same. That is my point in this thread. Her son getting that much money over that many years is just as "bad" as Pat getting her money over just her life when the annuity began. Pat dying 4 years later doesn't change the cost at issue.
Posted on 8/25/16 at 5:29 pm to LNCHBOX
quote:
LNCHBOX
8/25/2016. The first day you were on the right side of an argument.
Posted on 8/25/16 at 5:36 pm to LNCHBOX
quote:
And since I've actually met the woman and married into family of hers, I'll trust my opinion more than yours.
LOL sure ya did..
Posted on 8/25/16 at 5:37 pm to slackster
quote:
However, when you apply even a 4% discount rate you get a present value of $4,005,215 for Pat's life and a PV of $3,855,575 for Tyler's life.
Except you didn't factor in the cost of living adjustment. I don't know what the COLA is but that 4% discount is likely not even close to the actual discount rate
What is more important that isn't discussed is that there is an absolutely massive reduction in taxation by choosing this plan. Assuming this plan's payments are actuarial equivalent, the actual in your pocket benefits for the Summits are ridiculously higher
quote:
The actuarial cost of both pensions are essentially the same.
Only if the rate change is based on the mortality tables of the beneficiary and not a generic beneficiary assumptions.
Source: Actuary
This post was edited on 8/25/16 at 5:42 pm
Posted on 8/25/16 at 5:54 pm to GenesChin
quote:
Source: Actuary
Sweet. I know I made some assumptions but people just automatically see money for life to a 22 year old and lose their shite. As you're well aware it is entirely plausible that this was the just as cost effective to the state as the single life payout, if not cheaper.
The COLA is probably state approved which means it essentially never happens, but even if it's based on CPI or something like that, it hasn't been expensive lately.
What discount rate would you suggest on an annuity from 2012?
Posted on 8/25/16 at 5:58 pm to GenesChin
quote:
Only if the rate change is based on the mortality tables of the beneficiary and not a generic beneficiary assumptions.
Well yeah, I'd hope they would be. In my experience they are as they verify DOB of the bene when they issue the quote at retirement.
Posted on 8/25/16 at 6:02 pm to VOLhalla
quote:
And to think, all you have to do to get that kind of pension is become the all-time winningest coach in NCAA history.
Man, I guess Geno is going to be able to designate 8 beneficiaries with that resume.
Posted on 8/25/16 at 6:04 pm to slinger1317
quote:
Benefits should end with the death of the primary. Ridiculous a state has to foot the bill for this.
I think it is very reasonable to pass along benefits to a spouse or MINOR child. Perhaps even child under the age of 25.
But not for life.
Posted on 8/25/16 at 6:08 pm to Sid in Lakeshore
quote:
I think it is very reasonable to pass along benefits to a spouse or MINOR child. Perhaps even child under the age of 25.
But not for life.
As long as it's priced accordingly I couldn't care less. If the state gave her a $4MM cash payout from her pension instead and she left it to her son it would essentially be the same thing and no one would bat an eye.
Posted on 8/25/16 at 6:39 pm to TypoKnig
Good financial vehicle for child support and alimony.
Posted on 8/25/16 at 6:45 pm to PairofDucks
Tyler's father owns a bank, so nobody was going to be putting up a Go Fund Me page for him under any circumstances.
Posted on 8/25/16 at 7:07 pm to VOLhalla
quote:
And to think, all you have to do to get that kind of pension is become the all-time winningest coach in NCAA history.
Now compare that to the winningest coach in college football. How much do you think Joe Paterno's wife has received in pension payments since he died?
$13,450,000 including a lump sum payment of just over $10 million.
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