System, apparatus, and method for implementing a retirement plan for a cooperative and members thereof

• US 20030093303A1
• Filed: 07/24/2002
• Published: 05/15/2003
• Est. Priority Date: 07/24/2001
• Status: Abandoned Application

• Current Assignee: MANG Advisors LLC
• Original Assignee: MANG Advisors LLC
• Inventors: Pooler, Dana A.
• Application Number:
  US10/205,123
• Publication Number:
  US 20030093303A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for providing a retirement savings plan for members of a cooperative. The method includes receiving produce from a member of the cooperative. A revenue based on the produce received from the member. An elected deferral based on the revenue may be established by the member. A matching contribution based on the elected deferral may be distributed to an escrow account associated with the member, where a vesting schedule may be applied to the matching contribution in the escrow account. In a profitable year for the member, the elected deferral and vested matching contribution may be applied to a qualified plan. Otherwise, the elected deferral and vested matching contribution may be applied to a non-qualified plan. In one embodiment, the cooperative is a dairy cooperative and the member is a producer of dairy products, such as milk.

Claims

1. A method for providing a retirement savings plan for members of a cooperative, said method comprising:

receiving product from a member of the cooperative;

setting an elected deferral to be withheld by the cooperative for the member;

withholding the elected deferral from revenue generated by the product received from the member;

determining profitability of the member for the current year; and

based on the profitability of the member for the current year, contributing the elected deferral to a qualified plan associated with the member.

2. The method according to claim 1, further comprising:

determining a matching contribution based on the elected deferral; and

applying the matching contribution to an escrow account associated with the member.

3. The method according to claim 2, further comprising establishing a vesting schedule for the matching contribution applied to the escrow account.

4. The method according to claim 3, wherein said establishing of the vesting schedule is performed by the cooperative.

5. The method according to claim 1, wherein said determining profitability of the member is based on the tax code.

6. The method according to claim 1, wherein said setting the elected deferral includes setting a percentage value.

7. The method according to claim 1, wherein the product is milk.

8. The method according to claim 1, wherein the cooperative is a dairy cooperative.

9. The method according to claim 1, wherein said withholding is performed automatically.

10. A method for providing a retirement savings plan for members of a dairy cooperative, said method comprising:

receiving produce from a member of the cooperative;

determining a revenue based on the produce received from the member;

determining a matching contribution based on the determined revenue; and

distributing the matching contribution to an escrow account associated with the member.

11. The method according to claim 10, wherein said determining the matching contribution includes computing a percentage of the determined revenue.

12. The method according to claim 10, wherein the produce is milk.

13. The method according to claim 10, further comprising forming a vesting schedule by which the escrow account is to maintain the matching contribution.

14. The method according to claim 13, wherein the vesting schedule is predetermined by the cooperative.

15. The method according to claim 10, further comprising distributing the revenue to at least one of the following:

the member and a general holding account.

16. A system for providing a retirement savings plan for members of a dairy cooperative, said system comprising:

means for receiving produce from a member of the cooperative;

means for determining a revenue based on the produce received from the member;

means for determining a matching contribution based on the determined revenue; and

means for distributing the matching contribution to an escrow account associated with the member.

17. A method for providing a retirement savings plan by a financial institution for a member of a cooperative, said method comprising:

establishing at least one account for the member of the cooperative, at least one account including a qualified account;

receiving elected deferral matching revenue based on production revenue of the member; and

applying the elected deferral to a qualified plan based on profitability of the member for the current year.

18. The method according to claim 17, further comprising:

receiving the elected deferral; and

applying the elected deferral to a general holding account for the member of the cooperative.

19. The method according to claim 17, wherein the cooperative is a dairy cooperative.

20. The method according to claim 17, further comprising receiving a matched contribution from the cooperative, the matched contribution being based on the elected deferral of the member.

21. The method according to claim 17, further comprising providing a plurality of investment options for the elected deferral.

22. The method according to claim 21, wherein the investment options include at least one of the following:

non-qualified programs, non-qualified investment options, operational equipment, and qualified plan options.

23. A system for providing a retirement savings plan by a financial institution for a member of a cooperative, said system comprising:

means for establishing at least one account for the member of the cooperative, at least one account including a qualified account;

means for receiving elected deferral matching revenue based on production revenue of the member; and

means for applying the elected deferral to a qualified plan based on profitability of the member for the current year.

24. The system according to claim 23, further comprising:

means for receiving the elected deferral; and

means for applying the elected deferral to a general holding account for the member of the cooperative.

25. The system according to claim 23, further comprising means for receiving a matched contribution from the cooperative, the matched contribution being based on the elected deferral of the member.

26. A system for providing a savings plan for members of a cooperative, said system comprising:

a computing system including a processor coupled to a storage unit having a database stored thereon, the database including (i) an identifier indicative of a member and (ii) data associated with the members the data being representative of a matching contribution based on revenue produced by the member of the cooperative.

27. The system according to claim 26, wherein the database further includes data indicative of a vesting schedule for vesting the matching contribution for the member of the cooperative.

28. The system according to claim 26, wherein the database further includes data indicative of at least one of qualified and non-qualified investments of the member.

29. The system according to claim 26, wherein the database further includes data indicative of an amount of product delivered by the member to the cooperative.

30. The system according to claim 26, wherein the processor is operable to compute the matching contribution for the member.

31. A method for providing a retirement savings plan to members of a cooperative, said method comprising:

establishing an elected deferral based on revenue produced by production of a product by a member of the cooperative;

determining a matching contribution based on the elected deferral; and

providing for at least one of the elected deferral and matching contribution to be applied to a qualified plan based on profitability of the member for a current year.

32. The method according to claim 31, further comprising applying the matching contribution to an escrow account.

33. The method according to claim 31, further comprising applying the matching contribution to a general holding account.

34. The method according to claim 31, further comprising establishing a vesting schedule for the matching contribution.

35. The method according to claim 31, further comprising vesting a percentage of the matching contribution over a predetermined time duration.

36. The method according to claim 31, wherein said determining of the matching contribution includes computing a percentage of the revenue produced from the production of the product by the member.

37. The method according to claim 31, wherein the matching contribution is a percentage of the elected deferral.

38. The method according to claim 31, wherein said providing includes establishing a financial relationship with a financial institution to manage the qualified plan.

39. A system for providing a retirement savings plan to members of a cooperative, said method comprising:

means for establishing an elected deferral based on revenue produced by production of a product by a member of the cooperative;

means for determining a matching contribution based on the elected deferral; and

means for providing for at least one of the elected deferral and matching contribution to be applied to a qualified plan based on profitability of the member for a current year.

40. The system according to claim 39, further comprising means for applying the matching contribution to an escrow account.

41. The system according to claim 39, further comprising means for applying the matching contribution to a general holding account.

42. The system according to claim 39, further comprising means for establishing a vesting schedule for the matching contribution.

43. A method for allocating a portion of revenue produced from a business operated by a member of a syndicate as a member contribution, said method comprising:

depositing the member contribution in a general holding account for a year in which the business is not profitable;

computing a percentage of the member contribution in an escrow account as a matched contribution made by the syndicate on behalf of the member for the year in which the business is not profitable; and

transferring at least a portion of the balance from at least one of the general holding account and the escrow account to a qualified account for a year in which the business is profitable and in an amount less than the profit for that year.

44. The method according to claim 43, wherein the syndicate is a cooperative.

45. The method according to claim 44, wherein the cooperative is a dairy cooperative.

46. The method according to claim 43, wherein the business is a dairy farm.

47. The method according to claim 43, wherein said depositing of the member contribution in a general holding account is performed each year the business is not profitable.

48. The method according to claim 43, further comprising depositing the matched contribution into the escrow account for each year in which the business is not profitable.

49. The method according to claim 43, further comprising receiving a request from the member for said transferring of at least a portion of the balance of the general holding account for a profitable year.

50. The method according to claim 43, further comprising applying a vesting schedule to the contributions deposited to the escrow account.

51. A system for allocating a portion of revenue produced from a business operated by a member of a syndicate as a member contribution, said system comprising:

means for depositing the member contribution in a general holding account for a year in which the business is not profitable;

means for computing a percentage of the member contribution in an escrow account as a matched contribution made by the syndicate on behalf of the member for the year in which the business is not profitable; and

means for transferring at least a portion of the balance from at least one of the general holding account and the escrow account to a qualified account for a year in which the business is profitable and in an amount less than the profit for that year.

52. The system according to claim 51, further comprising means for receiving a request from the member for said transferring of at least a portion of the balance of the general holding account for a profitable year.

53. The method according to claim 51, further comprising means for applying a vesting schedule to the contributions deposited to the escrow account.