AUTOMATED SYSTEM FOR MANAGING A NON-QUALIFIED DEFERRED COMPENSATION PLAN
First Claim
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.
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Accused Products
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.
79 Citations
25 Claims
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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:
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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. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
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25. A computer readable media for controlling a computer to perform the steps of:
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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.
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Specification