AUTOMATED SYSTEM FOR MANAGING A NON-QUALIFIED DEFERRED COMPENSATION PLAN

• US 20020013751A1
• Filed: 10/18/1999
• Published: 01/31/2002
• Est. Priority Date: 09/08/1995
• Status: Abandoned Application

• Current Assignee: Andrea Marie Facciani, Bill Meier, Gerald Facciani, Jean-Philippe Khodara, Mark Gilje, Seth Koppes
• Original Assignee: Andrea Marie Facciani, Bill Meier, Gerald Facciani, Jean-Philippe Khodara, Mark Gilje, Seth Koppes
• Inventors: KOPPES, SETH, GILJE, MARK, MEIER, BILL, KHODARA, JEAN-PHILIPPE, FACCIANI, GERALD, FACCIANI, ANDREA MARIE
• Application Number:
  US09/421,321
• Publication Number:
  US 20020013751A1
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

An automated system for managing the assets and liabilities of Non-Qualified Deferred Compensation (NQDC) plans. This system uses information from money managers, insurance and annuity carriers, plan sponsors and plan participants to track and report the assets and liabilities of NQDC plans on a daily basis. NQDC plans have typically been defined benefit (DB) plans where funding, if any, occurred on a very informal basis. Due to previous systems limitations of insurance carriers, plan sponsors did not have on-line access to the value of their investments or the value of the liabilities of the plan. Furthermore, plan participants did not have on-line access to information about their plan. The present system, in addition to handling DB plans, also manages defined contribution (DC) plans, and allows participants to have immediate access to the value of their benefit. The system interfaces with fund managers and insurance and annuity carriers via modem links and with plan sponsors and participants via modem, fax or automated voice response units. The system calculates the value of the liabilities of the plan, the value of the assets of the plan and produces a report comparing the status of each on a daily basis. The system reviews the balance and levels that the sponsor has provided and determines whether changes in asset allocation are required. If changes are required, the system either provides the relevant information to the plan sponsor or directly to the asset manager, whether it be a mutual fund, insurance policy, or annuity that needs adjustment. The system also projects asset and liabilities into the future, further providing relevant information to the plan sponsor on a near real-time basis.

Claims

1. A computer system for managing a Non-Qualified Deferred Compensation (NQDC) plan on behalf of a plan sponsor, the NQDC plan being offered to a plan participant by the plan sponsor, the computer system comprising:

storage means for storing information about an asset group specified by the plan sponsor, the asset group comprising liabilities for investments made by the plan participant, assets held by the plan sponsor to cover the liabilities and a benchmark indicating an assigned correlation threshold between the assets and the liabilities;

first communication means for receiving updated values corresponding to the assets and liabilities;

computing means for computing an updated value of the assets and an updated value of the liabilities;

determining means for reading the benchmark from the storage means and determining if the updated value of the assets and the updated value of the liabilities are within the benchmark; and

notification means for notifying the plan sponsor that there is an asset imbalance if the determining means determines that the updated value of the assets and the updated value of the liabilities are not within the benchmark.

2. The computer system of claim 1, further comprising:

second communication means for receiving requests from the plan participant and providing information to the plan participant on at least one of the updated value of the liability of the plan sponsor to the plan participant, a current allocation of investments made by the plan participant and a performance history of investments provided by the plan sponsor.

3. The computer system of claim 1, further comprising:

second communication means for receiving requests from the plan sponsor and providing information to the plan sponsor on at least one of the updated value of the liability of the plan sponsor to the plan participant, the updated value of the assets held by the plan sponsor and if the updated value of the assets and the updated value of liabilities of the asset group are within the benchmark.

4. The computer system of claim 1, further comprising:

second communication means for receiving requests from the plan participant to change an investment made by the plan participant.

5. The computer system of claim 4, further comprising:

third communication means for sending a confirmation of the investment change requested by the plan participant.

6. The computer system of claim 5, wherein the third communication means is a facsimile device.

7. The computer system of claim 1, wherein the first communication means is a modem which connects to at least one of a commercial information provider and an insurance company.

8. The computer system of claim 1, wherein the first communication means for receiving updated values corresponding to the assets comprises communication means for receiving at least one of a per unit stock price or a per unit mutual fund price.

9. The computer system of claim 1, wherein the first communication means for receiving updated values corresponding to the assets comprises communication means for receiving an annuity cash value.

10. The computer system of claim 1, wherein the first communication means for receiving updated values corresponding to the assets comprises communication means for receiving an insurance policy cash value.

11. The computer system of claim 1, wherein the first communication means for receiving updated values corresponding to the liabilities comprises communication means for receiving per unit values of hypothetical funds offered by the plan sponsor as part of the asset group.

12. The computer system of claim 1, wherein the first communication means for receiving updated values corresponding to the liabilities comprises communication means for receiving probabilities of at least one of retiring early, reaching retirement age, leaving a plan before early retirement and dying at each age before 65.

13. The computer system of claim 1, wherein the notification means is a facsimile device.

14. The computer system of claim 1, wherein the notification means is a modem which sends a notification to a remote plan sponsor computer terminal.

15. The computer system of claim 1, wherein the storage means is a computer database.

16. The computer system of claim 2, wherein the second communication means comprises an automated voice response unit.

17. The computer system of claim 3, wherein the second communication means comprises an automated voice response unit.

18. The computer system of claim 2, wherein the second communication means comprises:

a modem; and

means for retrieving information corresponding to the received request from the storage means.

19. The computer system of claim 3, wherein the second communication means comprises:

a modem; and

means for retrieving information corresponding to the received request from the storage means.

20. The computer system of claim 1, wherein the computing means computes assets and liabilities for a Defined Contribution plan.

21. The computer system of claim 1, wherein the computer means computes assets and liabilities for a Defined Benefit plan.

22. The computer system of claim 1, wherein the benchmark indicated an assigned correlation threshold between the assets and the liabilities is a percentage.

23. The computer system of claim 1, wherein the benchmark indicating an assigned correlation threshold between the assets and the liabilities is an absolute dollar amount.

24. The computer system of claim 1, further comprising:

second communication means for receiving census information used to estimate future assets and liabilities of an asset group.

25. A computer readable media for controlling a computer to perform the steps of:

storing information about an asset group specified by a plan sponsor, the asset group comprising liabilities for investments made by a plan participant, assets held by the plan sponsor to cover the liabilities and a benchmark indicating an assigned correlation threshold between the assets and the liabilities;

receiving updated values corresponding to the assets and liabilities;

computing an updated value of the assets and an updated value of the liabilities;

reading the benchmark stored in the storing step;

determining if the updated value of the assets and the updated value of the liabilities are within the benchmark; and

notifying the plan sponsor that there is an asset imbalance if the determining step determines that the updated value of the assets and the updated value of the liabilities are not within the benchmark.