System for enhanced management of pension-backed credit

• US 5,206,803 A
• Filed: 03/15/1991
• Issued: 04/27/1993
• Est. Priority Date: 03/15/1991
• Status: Expired due to Term

• Current Assignee: Francis M. Vitagliano, Franco Modigliani
• Original Assignee: Francis M. Vitagliano, Franco Modigliani
• Inventors: Modigliani, Franco, Vitagliano, Francis M.
• Primary Examiner(s): Envall, Jr., Roy N.
• Assistant Examiner(s): BODENDORF, ANDREW
• Application Number:
  US07/670,060
• Time in Patent Office: 774 Days
• Field of Search: 364/401, 364/408, 364/DIG. 1, 364/DIG. 2
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A data processing pension plan monitor is directed specifically to the management and controlled access of pension-backed credit. This system permits pension plan participants to establish a line of credit (LOC), based on their vested interest in a sponsored pension plan. This LOC is thereafter systematically applied to a plurality of accounts, each permitted selected credit card and/or check writing privileges.

The present invention balances credit access with long term pension requirements. The charges associated with the credit accessed are paid back to the pensioner, thereby retaining certain tax deferred privileges while permitting access to the accumulated funds.

Claims

1. In combination in a system for the management of a plurality of pension-backed credit accounts comprising:

a deposit and/or withdrawal input means for receiving select deposit and withdrawal transaction activity associated with a particular plan account;

memory means for storing current vested pension account data associated with a plurality of individual pension plan participants;

data processing means for receiving said deposit and withdrawal transaction activity, in conjunction with memory access means for retrieving current vested pension account data and responsive thereto for determining a level of Available Capital associated with a pension-backed credit account, approval of a requested withdrawal, if any; and

account update means for adjusting a line of credit value stored in conjunction with said pension-backed credit account wherein said vested pension account data includes periodic contributions and disbursements from a pension account and said data processing means determines a level of vested interest therein pursuant to corresponding years of service for the plan participant.

2. The system of claim 1, wherein said line of credit value is implemented as a valuation of secured credit permitting distributed charges in the form of credit card or check transactions in support of consumer purchases.

3. The system of claim 1, wherein repayment of said distributed charges is made directly to said pension-backed credit account by said plan participant and said repay-ment updates said line of credit value.