Where I work they give you the defined pension value for our pensions. Some of the folks above have given good answers. It is based on actuarial tables and value given every month. The best way to get this answer is go to a financial planner and find out what you would have to pay in cash today to get an annuity that would pay X dollars to you for the rest of your life. You have to understand your program well to make sure you are comparing apples to apples as far as the payouts go. Does a survivng spouse get a benefit? Does it pay to the end of your life only? Does it pay out for 30 years and go to your beneficiaries if you die? Your basic assumptions are pretty close based on details. A fixed pension that pays out $3,000 per month would be close to $500K depending on the details. A fixed pension that would pay out $6,000 per month would be worth close to $1M. These are based on age 62. At 72 they would be worth less because of the actuarial table differences.
