Method and apparatus for providing retirement income benefits

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.

What is claimed is: 
     
         1 . A computerized method for administering an unannuitized variable annuity plan having a guaranteed minimum payment feature associated with a systematic withdrawal program, and for periodically determining an amount of a scheduled payment to be made by an administrator of the plan to an owner under the plan, the method comprising:
 a) using a computer, storing data relating to a variable annuity account of the owner, including data relating to an account value of the account of the owner, a withdrawal rate, and a period of benefit payments;   b) using the computer, determining an amount of the scheduled payment;   c) using the computer, periodically determining the account value associated with the plan and making the scheduled payment to the owner from funds in the account of the owner;   d) using the computer, monitoring for an unscheduled withdrawal from the account of the owner made under the plan and adjusting the amount of the scheduled payment in response to said unscheduled withdrawal; and   e) periodically paying the scheduled payment to the owner for the period of benefit payments, even if the account value is insufficient to make the scheduled payment, wherein scheduled payments made after the account value is insufficient are made from funds in an account of the administrator, and can be made without the aid of the computer.   
     
     
         2 . The method of  claim 1 , wherein the amount of the scheduled withdrawal payment is determined by the following formula:
   Scheduled Payment=Account Value o ×WD Rate
   Where: Scheduled Payment=dollar amount of the scheduled payment   Account Value o =initial account value or account value as periodically determined at a subsequent time   WD Rate=predetermined % 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+i =account value at time t+1   Account Value r =account value at time t   Withdrawal=dollar amount of the scheduled payment at time t   i=net fund performance during period t to t+1.   
     
     
         4 . The method of  claim 1 , wherein the scheduled payment is adjusted in response to an unscheduled withdrawal from the account of the owner according to the following formula:
   Scheduled Payment′=Scheduled Payment×(1−USWithdrawal t /Account Value t )
   Where: Scheduled Payment′=scheduled payment after an adjustment for an unscheduled withdrawal   Scheduled Payment=scheduled payment prior to an adjustment for an unscheduled withdrawal   USWithdrawal t =unscheduled withdrawal made at time t   Account Value t =account value at time t, prior to the unscheduled withdrawal from the account of the owner.   
     
     
         5 . The method of  claim 1 , further comprising creating a master record for the variable annuity account of the owner, and wherein the storing steps include storing data on the master record. 
     
     
         6 . The method of  claim 5 , wherein creating a master record comprises:
 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 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 generating a report, and forwarding the report to the owner. 
     
     
         9 . The method of  claim 1 , further comprising:
 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 period of benefit payments is a lifetime period. 
     
     
         11 . A computerized method for administering an unannuitized variable annuity plan having a guaranteed minimum payment feature associated with a systematic withdrawal program, and for periodically determining amounts of scheduled payments to be made by an administrator of the plan to an owner under the plan, the method comprising:
 a) using a computer:
 1) storing data relating to a variable annuity account of the owner, including data relating to an account value of the account of the owner, a withdrawal rate, and a period of benefit payments; 
 2) determining an amount of the scheduled payments; 
 3) periodically determining the account value associated with the plan and making a scheduled payment to the owner from funds in the account of the owner; 
 4) monitoring for an unscheduled withdrawal from the account of the owner made under the plan and adjusting the amount of the scheduled payments in response to said unscheduled withdrawal; and 
 5) periodically comparing the account value of the account of the owner to the amount of the scheduled payments to the owner and determining whether the funds in the account of the owner are insufficient to make the scheduled payments; and 
   b) if the funds in the account of the owner are insufficient to make the scheduled payments to the owner, setting the account value to zero and making the scheduled payments to the owner from funds in an account of the administrator, with or without the aid of the computer, for the period of benefit payments.   
     
     
         12 . The computer method of  claim 11 , wherein the period of benefit payments is a lifetime period. 
     
     
         13 . A computerized method for administering an unannuitized variable annuity plan having a guaranteed minimum payment feature associated with a systematic withdrawal program, and for periodically determining amounts of scheduled payments to be made by an administrator of the plan to an owner under the plan, the method comprising:
 a) using a computer:
 1) storing data relating to a variable annuity account of the owner, including data relating to an account value of the account of the owner, a withdrawal rate, and a period of benefit payments; 
 2) determining an amount of the scheduled payments; 
 3) periodically determining the account value associated with the plan and making a scheduled payment to the owner from funds in the account of the owner; 
 4) monitoring for an unscheduled withdrawal from the account of the owner made under the plan and adjusting the amount of the scheduled payments in response to said unscheduled withdrawal; and 
 5) periodically comparing the account value of the account of the owner to the amount of the scheduled payments to the owner and determining whether the funds in the account of the owner are insufficient to make the scheduled payments; and 
   b) if the funds in the account of the owner are insufficient to make the scheduled payments, continuing to make the scheduled payments to the owner from funds in an account of the administrator, with or without the aid of the computer, for the period of benefit payments.   
     
     
         14 . The computer method of  claim 13 , wherein the period of benefit payments is a lifetime period. 
     
     
         15 . A computerized method for administering an unannuitized variable annuity plan having a guaranteed minimum payment feature associated with a systematic withdrawal program, and for periodically determining an amount of a scheduled payment to be made to the owner under the plan, comprising the steps of:
 a) using a computer, storing data relating to a variable annuity account, including data relating to an account value, a withdrawal rate, and a period of benefit payments;   b) using the computer, determining an amount of the scheduled payment;   c) using the computer, periodically determining the account value associated with the plan and making the scheduled payment by withdrawing that amount from the account value;   d) using the computer, monitoring for an unscheduled withdrawal made under the plan and adjusting the amount of the scheduled payment in response to said unscheduled withdrawal; and   e) periodically paying the scheduled payment to the owner for the period of benefit payments, even if the account value is below the amount of the scheduled payment before all payments have been made, wherein scheduled payments made after the account value is below the amount of the scheduled payment can be made without the aid of the computer.