System and Method for Imbedding a Defined Benefit in a Defined Contribution Plan

Abstract

A system and method comprises a defined contribution module for periodically receiving contributions and for accumulating value over a period of time by investing at least one of the contributions, the accumulated value being capable of: (1) being withdrawn at any time and reinvested, and (2) being paid out after a predetermined period of time; and wherein select investment options comprises investment products and at least one designated defined benefit investment option module for: (1) receiving at least one investment payment from the defined contribution module, the investment payment comprising at least one of the contributions and/or the accumulated value, (2) for paying out a guaranteed minimum income payment for life, after the predetermined period of time, based on a retirement income formula, and (3) increasing the income payment for life for excess performance over the formula.

What is claimed is: 
     
         1 - 54 . (canceled) 
     
     
         55 . A computer processing system that provides a user with a defined benefit, based on a retirement income factor that indicates the guaranteed minimum periodic income that the user will receive regardless of how long the user lives and the potential for an increase in the periodic income based on excess investment performance, over the retirement income factor, of designated defined benefit investment options, the system comprising:
 a computer processor that receives a contribution and accumulates value over a period of time by investing the contribution or any portion(s) thereof in any number of select investment option(s), and
 the accumulated value, or any portion(s) thereof, being capable of at least one selected from the group consisting of:
 (a) being withdrawn at any time, and 
 (b) being paid out after a predetermined period of time; and 
 
 the computer processor constituted by a tangibly embodied programmed computer processor, within the computer processing system, which communicates with the user via a network; and 
   wherein the selected investment options comprise any number of investment products and at least one designated defined benefit investment option module for:
 receiving at least one investment payment from the computer processor, the investment payment comprising at least one of the contribution and/or the accumulated value, or any portion(s) thereof, 
 paying out a guaranteed minimum income payment after the accumulation period of time, the guaranteed minimum income payment being based on the retirement income factor, and 
 increasing the income payment for life for excess performance over the retirement income factor of the designated defined benefit investment option. 
   
     
     
         56 . The computer processing system of  claim 55  wherein the defined benefit is within a contribution plan. 
     
     
         57 . The computer processing system of  claim 55  the computer processor periodically receives the contribution. 
     
     
         58 . The computer processing system of  claim 55  wherein the retirement income factor is based on at least one of a savings commencement date, payout plan selected, product features and expenses, economic cycle, participant's age, gender, retirement date, and marital status. 
     
     
         59 . The computer processing system of  claim 55  wherein the defined contribution plan comprises a qualified or non-qualified plan and a variable annuity investment product. 
     
     
         60 . The computer processing system of  claim 55  wherein the select investment options further comprises at least one mutual fund. 
     
     
         61 . The computer processing system of  claim 55  wherein the select investment options further comprises at least one other financial product. 
     
     
         62 . The computer processing system of  claim 55  wherein paying out accumulated value after a period of time comprises at least one of a lump sum payment, periodic payments and annuity payouts. 
     
     
         63 . The computer processing system of  claim 55  wherein the payment of the guaranteed minimum income payment after a predetermined period of time is further conditioned on a predetermined pattern of continued contributions. 
     
     
         64 . The computer processing system of  claim 55  wherein the investment payment to the designated defined benefit investment option is determined. 
     
     
         65 . The computer processing system of  claim 55  wherein the guaranteed minimum income payment to the designated defined benefit investment option comprises the product of the at least one investment payment, or any portion(s) thereof, and the retirement income factor. 
     
     
         66 . The computer processing system of  claim 55  wherein the guaranteed minimum income payment comprises a formula of the accumulated value, or any portion(s) thereof, and an associated retirement income factor. 
     
     
         67 . The computer processing system of  claim 55  wherein the reinvestment of the guaranteed minimum income payment is determined by the participant. 
     
     
         68 . A computer processing system that provides a user with a defined benefit, based on a retirement income factor that indicates the guaranteed minimum periodic income that the user will receive regardless of how long the user lives and the potential for an increase in the periodic income based on excess investment performance over the retirement income factor of designated defined benefit investment options, the system comprising:
 a computer processor that receives a contribution and accumulates value over a period of time by investing the contribution in any number of select investment options, the accumulated value, or any portion(s) thereof, being capable of at least one selected from the group consisting of:
 (a) being withdrawn at any time, and 
 (a) being paid out after a predetermined period of time; and 
   the computer processor constituted by a tangibly embodied programmed computer processor, within the computer processing system, which communicates with the user via a network; and   wherein the selected investment options comprise any number of investment products and at least one designated defined benefit investment option module for:
 receiving at least one investment payment from the defined contribution module, the investment payment comprising at least one of the contribution and/or the accumulated value, or any portion(s) thereof, 
 for paying out a guaranteed minimum income payment after the accumulation period of time, the guaranteed minimum income payment being based on the retirement income factor, and 
 increasing the income payment for life for excess performance over the retirement income factor of the designated defined benefit investment option. 
   
     
     
         69 . The computer processing system of  claim 68  wherein the defined benefit is within a contribution plan. 
     
     
         70 . The computer processing system of  claim 68  the computer processor periodically receives the contribution.