System and method for providing a financial instrument with a periodic step-up feature

• US 8,396,774 B2
• Filed: 02/06/2007
• Issued: 03/12/2013
• Est. Priority Date: 02/06/2007
• Status: Active Grant

• Current Assignee: GM Global Technology Operations Incorporated (Motors Liquidation Co. GUC Trust), Prudential Insurance Company of America (Prudential Financial Incorporated)
• Original Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Inventors: Herschler, Jacob M., Kane, Daniel O., Kuperstock, N. David, O'Donnell, Robert Francis, Putterman, Steven Lee, Runestad, Dain Eric, Schwartz, Robert J., Berardis, Nicholas Jr., Grucza, John L., Guido, Michael Albert, Dunn, J. Scott
• Primary Examiner(s): Kyle, Charles
• Assistant Examiner(s): POLLOCK, GREGORY A
• Application Number:
  US11/671,679
• Publication Number:
  US 20080189220A1
• Time in Patent Office: 2,226 Days
• Field of Search: 705/35, 705/36.R, 705/36.T, 705/37
• US Class Current: 705/36.R
• 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

Abstract

One embodiment of the invention is a method for providing a financial instrument including determining a current account balance for a financial account and on a first periodic basis: determining a specified percentage of the value of the financial account, determine the greater of a particular limit and the highest value of the financial account multiplied by the specified percentage on a second periodic basis, and in response to a determination that the highest value of the financial account multiplied by the specified percentage on the second periodic basis is greater than the particular limit, stepping-up the particular limit to equal the highest value of the financial account multiplied by the specified percentage on the second periodic basis.

Claims

1. A data processing system, comprising:

one or more processors; and

one or more memory devices communicatively coupled to the one or more processors storing;

data representing an annuity account, the annuity account comprising;

an account balance that varies over time; and

one or more investments selected from a plurality of selectable investments;

data representing the account balance of the annuity account as determined on a recurring first periodic basis within a recurring second periodic basis, where the recurring first periodic basis has a periodic interval of at least seven days, wherein the recurring second periodic basis is longer than the recurring first periodic basis;

data representing a particular limit;

data representing a step-up value; and

logic configured, when executed by the one or more processors, to;

calculate one or more fees for;

a first guarantee entitling a beneficiary to monetary transfers from the annuity account for a duration of time extending for at least the life of a designated party, wherein each monetary transfer is either due to a withdrawal from the annuity account or due to benefit payments made to the beneficiary from the annuity account, and wherein the benefit payments vary in amount if the withdrawals from the annuity account exceed the particular limit; and

a second guarantee that on the recurring second periodic basis the particular limit will be stepped-up to equal the step-up value if the step-up value is greater than the particular limit; and

wherein one or more of the first and second guarantees comprise a definition of the particular limit and a definition of a specified percentage;

repeatedly store on the recurring first periodic basis the account balance of the annuity account;

repeatedly determine on the recurring second periodic basis the step-up value by multiplying factors together, the factors comprising;

the defined specified percentage; and

the highest of the stored account balances of the annuity account as stored on the recurring first periodic basis within the recurring second periodic basis;

repeatedly determine on the recurring second periodic basis the greater of the particular limit and the step-up value;

in response to a determination that the step-up value is greater than the particular limit, step up the particular limit in part by modifying the data representing the particular limit to a value indicative of the determined step-up value; and

process one or more of the monetary transfers to the beneficiary.

2. The data processing system of claim 1, wherein the defined specified percentage is a fixed percentage between four percent and six percent.

3. The data processing system of claim 1, wherein the recurring first periodic basis is quarterly and the recurring second periodic basis is yearly.

4. The data processing system of claim 1, wherein the beneficiary comprises the designated party.

5. The data processing system of claim 1, wherein the defined specified percentage is variable.

6. The data processing system of claim 1, wherein the defined specified percentage varies based on the age of the designated party.

7. A data processing system, comprising:

one or more processors; and

one or more memory devices communicatively coupled to the one or more processors storing;

data representing an annuity account, the annuity account comprising;

an account balance that varies over time; and

one or more investments selected from a plurality of selectable investments;

data representing the account balance of the annuity account as determined on a recurring first periodic basis within a recurring second periodic basis, where the recurring first periodic basis has a periodic interval of at least seven days, wherein the recurring second periodic basis is longer than the recurring first periodic basis;

data representing a particular limit; and

logic configured, when executed by the one or more processors, to;

calculate one or more fees for;

a first guarantee entitling a beneficiary to a monetary transfer from the annuity account, wherein the monetary transfer is either due to a withdrawal from the annuity account or due to a benefit payment made to the beneficiary from the annuity account, and wherein the value of the monetary transfer is limited by the particular limit; and

a second guarantee that on the recurring second periodic basis the particular limit will be stepped-up to equal a step-up value if the step-up value is greater than the particular limit; and

wherein one or more of the first and second guarantees comprise a definition of the particular limit and a definition of a specified percentage;

repeatedly store on the recurring first periodic basis the account balance of the annuity account;

repeatedly determine on the recurring second periodic basis the step-up value by multiplying factors together, the factors comprising;

the defined specified percentage; and

the highest of the stored account balances of the annuity account as stored on the recurring first periodic basis within the recurring second periodic basis;

repeatedly determine on the recurring second periodic basis the greater of the particular limit and the step-up value;

in response to a determination that the step-up value is greater than the particular limit, step up the particular limit in part by modifying the data representing the particular limit to a value indicative of the determined step-up value; and

process the monetary transfer to the beneficiary.

8. The data processing system of claim 7, wherein:

the defined specified percentage is a fixed percentage between ninety-five percent and one hundred percent; and

the monetary transfer comprises either a one-time withdrawal or a one-time benefit payment.

9. The data processing system of claim 7, wherein the recurring first periodic basis is quarterly and the recurring second periodic basis is yearly.

10. The data processing system of claim 7, wherein the logic is further configured, when executed by the one or more processors, to process a selection of the one or more investments selected from the plurality of selectable investments.

11. The data processing system of claim 7, wherein the defined specified percentage varies based on the age of the beneficiary.

12. A method for managing an annuity account having an account balance that varies over time and having one or more investments selected from a plurality of selectable investments, the method comprising:

by one or more processors of a data processing system, calculating one or more fees for;

a first guarantee entitling a beneficiary to monetary transfers from the annuity account for a duration of time extending for at least the life of a designated party, wherein each monetary transfer is either due to a withdrawal from the annuity account or due to benefit payments made to the beneficiary from the annuity account, and wherein the benefit payments vary in amount if the withdrawals from the annuity account exceed a particular limit; and

a second guarantee that on a recurring second periodic basis the particular limit will be stepped-up to equal a step-up value if the step-up value is greater than the particular limit; and

wherein one or more of the first and second guarantees comprise a definition of the particular limit and a definition of a specified percentage;

storing in memory communicatively coupled to the one or more processors of the data processing system;

data representing the annuity account;

data representing the account balance of the annuity account as determined on a recurring first periodic basis within the recurring second periodic basis, where the recurring first periodic basis has a periodic interval of at least seven days, wherein the recurring second periodic basis is longer than the recurring first periodic basis; and

data representing the particular limit;

by the data processing system, repeatedly storing on the recurring first periodic basis the account balance of the annuity account;

by the data processing system, repeatedly determining on the recurring second periodic basis the step-up value by multiplying factors together, the factors comprising;

the defined specified percentage; and

the highest of the stored account balances of the annuity account as stored on the recurring first periodic basis within the recurring second periodic basis;

by the data processing system, repeatedly determining on the recurring second periodic basis the greater of the particular limit and the step-up limit; and

in response to a determination by the data processing system that the step-up limit is greater than the particular limit, by the data processing system, stepping up the particular limit in part by modifying the data representing the particular limit to a value indicative of the determined step-up value;

by the data processing system, processing one or more of the monetary transfers to the beneficiary.

13. The method of claim 12, wherein the defined specified percentage is a fixed percentage between four and six percent.

14. The method of claim 12, wherein the recurring first periodic basis is quarterly and the recurring second periodic basis is yearly.

15. The method of claim 12, wherein the beneficiary comprises the designated party.

16. The method of claim 12, wherein the defined specified percentage is a variable percentage.

17. The method of claim 12, wherein the defined specified percentage varies based on the age of the designated party.

18. A method for managing an annuity account having an account balance that varies over time and having one or more investments selected from a plurality of selectable investments, the method comprising:

by one or more processors of data processing system, calculating one or more fees for;

a first guarantee entitling a beneficiary to a monetary transfer from the annuity account, wherein the monetary transfer is either due to a withdrawal from the annuity account or due to a benefit payment made to the beneficiary from the annuity account, and wherein the value of the monetary transfer is limited by a particular limit; and

a second guarantee that on a recurring first periodic basis the particular limit will be stepped-up to equal a step-up value if the step-up value is greater than the particular limit; and

wherein one or more of the first and second guarantees comprise a definition of the particular limit and a definition of the specified percentage;

storing communicatively coupled to the one or more processors in memory of the data processing system;

data representing the annuity account;

data representing the account balance of the annuity account as determined on a recurring first periodic basis within the recurring second periodic basis, where the recurring first periodic basis has a periodic interval of at least seven days, wherein the recurring second periodic basis is longer than the recurring first periodic basis; and

data representing the particular limit;

by the data processing system, repeatedly storing on the recurring second periodic basis the account balance of the annuity account;

by the data processing system, repeatedly determining on the recurring second periodic basis the step-up value by multiplying factors together, the factors comprising;

the defined specified percentage; and

the highest of the stored account balances of the annuity account as stored on the recurring first periodic basis within the recurring second periodic basis;

by the data processing system, repeatedly determining on the recurring second periodic basis the greater of the particular limit and the step-up limit;

in response to a determination by the data processing system that the step-up limit is greater than the particular limit, stepping up the particular limit, by the data processing system, in part by modifying the data representing the articular limit to a value indicative of the determined step-up value; and

by the data processing system, processing the monetary transfer to the beneficiary.

19. The method of claim 18, wherein:

the defined specified percentage is a fixed percentage between ninety-five percent and one hundred percent; and

the monetary transfer comprises either a one-time withdrawal or a one-time benefit payment.

20. The method of claim 18, wherein the monetary transfer comprises a periodic benefit payment for a term of years.

21. The method of claim 18, wherein the recurring first periodic basis is quarterly and the recurring second periodic basis is yearly.

22. The method of claim 18, further comprising processing selections of the one or more investments selected from the plurality of selectable investments, the selections processed using the data processing system.

23. The method of claim 18, wherein the defined specified percentage varies based on the age of the beneficiary.