METHOD AND APPARATUS FOR PROVIDING RETIREMENT INCOME BENEFITS

• US 20120233092A1
• Filed: 05/24/2012
• Published: 09/13/2012
• Est. Priority Date: 09/25/1998
• Status: Active Grant

• Current Assignee: Denis G. Schwartz, Jason H. Rickard, Jeffrey K. Dellinger, Stephen H. Lewis
• Original Assignee: Denis G. Schwartz, Jason H. Rickard, Jeffrey K. Dellinger, Stephen H. Lewis
• Inventors: Dellinger, Jeffrey K., Lewis, Stephen H., Schwartz, Denis G., Rickard, Jason H.
• Granted Patent: US 8,484,055 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

A computerized method and system for administering an unannuitized annuity plan having a guaranteed minimum withdrawal payment feature associated with a systematic withdrawal program includes the steps of and system for storing data, determining an amount of a maximum guaranteed withdrawal payment for a prescribed period (e.g., one year), periodically determining the account value, monitoring for an unscheduled withdrawal made under the plan and adjusting the amount of the maximum guaranteed withdrawal payment in response to the unscheduled withdrawal. Guaranteed withdrawal payments are periodically made to the account owner so long as withdrawals do not exceed the maximum guaranteed amount for the period, or the account value is greater than the payment.

Claims

1. A data processing method for administering an unannuitized annuity account having a systematic withdrawal program associated with a guaranteed payment feature, comprising the steps of:

a. storing data in the computer relating to the annuity account, including data relating to an account value, a predetermined maximum withdrawal percentage rate and a guaranteed withdrawal payment;

b. periodically determining a maximum guaranteed withdrawal payment amount for a prescribed period using the computer;

c. periodically determining the account value using the computer;

d. monitoring, with the computer, the account value and any withdrawal payments made to an account owner;

e. periodically comparing, using the computer, withdrawal payments with the maximum guaranteed withdrawal payment amount to identify withdrawal payments in excess of the maximum guaranteed withdrawal payment amount; and

f. periodically making guaranteed withdrawal payments with the aid of the computer so long as;

1) withdrawal payments for the prescribed period do not exceed the maximum guaranteed withdrawal payment amount, or

2) the account value is greater than the guaranteed withdrawal payment.

2. The method of claim 1, wherein the amount of the maximum guaranteed withdrawal payment is determined by the following formula:

MAX GWP=Account Value_θ

×

WD Rate

Where;

MAX GWP Payment=dollar amount of the maximum guaranteed withdrawal payment

Account Value_θ

=initial account value or account value as periodically determined at a subsequent time

WD Rate=predetermined maximum withdrawal % rate established as part of the annuity plan.

3. The method of claim 1, wherein the account value is periodically determined by the following formula:

Account Value_t+1=Max[(Account Value_t−

Withdrawal),0]×

(1+i)

Where;

Account Value_t+t=account value at time t+1

Account Value_t=account value at time t

Withdrawal=dollar amount of the guaranteed withdrawal payment at time t

i=net fund performance during period t to t+1.

4. The method of claim 1, wherein the maximum guaranteed withdrawal payment is adjusted in response to an unscheduled withdrawal according to the following formula:

MAX GWP′

=MAX GWP×

(1−

USWithdrawal_t/Account Value_t)

Where;

MAX GWP′

=maximum guaranteed withdrawal payment after an adjustment for an unscheduled withdrawal

MAX GWP=maximum guaranteed withdrawal payment prior to an adjustment for an unscheduled withdrawal

US Withdrawal_t=unscheduled withdrawal in excess of maximum guaranteed withdrawal payment amount made at time t

Account Value_t=account value at time t, prior to the unscheduled withdrawal.

5. The method of claim 1, further comprising the additional step of creating a master record for the annuity account, and wherein said storing steps include storing data on said master record.

6. The method of claim 5, wherein the step of creating a master record comprises the steps of providing an input screen having fields for entry of data relating to the owner, the type of annuity plan, relevant dates and amounts, and data relating to interest and mortality guarantees, entering data in the fields, and checking the data for validity and completeness.

7. The method of claim 6, further comprising the additional steps of displaying the master record for visual checking by an operator, and storing the master record if the data is deemed to be satisfactory.

8. The method of claim 1, further comprising the additional step of generating a report, and forwarding the report to the owner.

9. The method of claim 1, further comprising the additional steps of generating at least one report, and storing data in at least one of an accounting file for use in preparing process and accounting records, a valuation file for use in establishing reserves, a payment center file for use in preparing benefit checks and reports for the owner, and a customer service file for use in preparing screens for use by customer service personnel.

10. The method of claim 1, wherein the prescribed period is one year.

11. The method of claim 1, wherein the annuity account is a variable annuity account.