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AUTOMATED ELECTRICAL FINANCIAL OR BUSINESS PRACTICE OR MANAGEMENT ARRANGEMENT |
Computer-aided method, machine, and products produced thereby, for illustrating a replacement of a benefit plan that is viable at one location but not viable at the location of the replacement6411939
Abstract
A method implemented with a machine, the machine, and method for using the machine, and products produced thereby, the method including a digital electrical computer having a processor programmed for electrically processing input data into output data, the computer electrically connected to an input device and to an output device, for illustrating a replacement of a benefit plan. The method the includes the steps of: entering information defining a benefit plan that is viable at one location but not viable at the replacement plan location, to convert the information into a portion of the input data that is electrically conveyed to the digital electrical computer for processing; engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement of the benefit plan, the replacement being viable at a location for the replacement; and generating an illustration of the replacement at the output device.
Claims
I claim:
1. A method implemented with a machine comprising a digital electrical computer having a processor programmed for electrically processing input data into output data, the computer electrically connected to an input device and to an output device, for illustrating a replacement of a benefit plan, the method including the steps of:
entering information defining a benefit plan that is viable at one location but not viable at a replacement plan location, to convert the information into a portion of the input data that is electrically conveyed to the digital electrical computer for processing;
engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement of the benefit plan, the replacement being viable at the replacement plan location; and
generating an illustration of the replacement at the output device.
2. The method of claim 1, further including the step of computer-assisted administering of the replacement in accordance with the illustration.
3. The method of claim 2, further including the step of computer-assisted accounting of payments for the replacement in accordance with the administrating.
4. The method of claim 3, further including providing Internet-based computerized banking service in response to data communicated over the Internet to a banking service computer, the data confirming an identity for a participant receiving the replacement.
5. The method of claim 3, further including providing Internet-based computerized investment service in response to data communicated over the Internet to an investment service computer, the data confirming an identity for a participant receiving the replacement.
6. The method of claim 3, further including providing Internet-based computerized financial planning service in response to data communicated over the Internet to a financial planning service computer, the data confirming an identity for a participant receiving the replacement.
7. The method of claim 3, further including providing Internet-based computerized relocation service in response to data communicated over the Internet to a relocation service computer, the data confirming an identity for a participant receiving the replacement.
8. The method of claim 3, further including providing Internet-based computerized estate planning service in response to data communicated over the Internet to an estate planning service computer, the data confirming an identity for a participant receiving the replacement.
9. The method of claim 3, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
10. The method of claim 2, further including the step of computer-assisted trust accounting for the replacement in accordance with the administrating.
11. The method of claim 10, wherein the step of computer-assisted trust accounting for the replacement in accordance with the administrating includes the step of computer-assisted trust accounting for an unfunded deferred tax plan trust.
12. The method of claim 11, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
13. The method of claim 10, wherein the step of computer-assisted trust accounting for the replacement in accordance with the administrating includes the step of computer-assisted trust accounting for a funded current tax, immediate-vesting plan trust.
14. The method of claim 13, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
15. The method of claim 10, wherein the step of computer-assisted trust accounting for the replacement in accordance with the administrating includes the step of computer-assisted trust accounting for a funded deferred tax, deferred-vesting plan trust.
16. The method of claim 15, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
17. The method of claim 10, wherein the step of computer-assisted trust accounting for the replacement in accordance with the administrating includes the step of computer-assisted trust accounting for a funded 83(b) election, deferred tax deferred-vesting plan trust.
18. The method of claim 17, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
19. The method of claim 10, wherein the step of computer-assisted trust accounting for the replacement in accordance with the administrating includes the step of computer-assisted trust accounting for a plurality of trusts for plans from at least two of the group: unfunded deferred tax plan; funded current tax, immediate-vesting; funded 83(b) election, deferred tax, deferred-vesting plan trust; and funded deferred tax, deferred-vesting.
20. The method of claim 19, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
21. The method of claim 10, further including the step of computer-assisted policy administration for funding for the replacement in accordance with the trust accounting.
22. The method of claim 21, further including the step of computer-assisted calculating of net asset accumulation of the funding for the replacement for reporting and in accordance with the policy administration.
23. The method of claim 22 further including the step of computer-assisted reinsurance administration for the policy in accordance with the policy administration.
24. The method of claim 23, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
25. The method of claim 1, further including the step of computer-assisted calculating of investment performance for the asset accumulation of the funding for the replacement for reporting and in accordance with the policy administration.
26. The method of claim 25, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
27. The method of claim 5, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
28. The method of claim 21, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
29. The method of claim 10, wherein the step of computer-assisted trust accounting for the replacement in accordance with the administrating includes accounting for a trust investment.
30. The method of claim 29, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
31. The method of claim 10, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
32. The method of claim 2, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
33. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a cost-reduction sharing replacement for the benefit plan.
34. The method of claim 33, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
35. The method of claim 34, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
36. The method of claim 33, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
37. The method of claim 36, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
38. The method of claim 33, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
39. The method of claim 38, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
40. The method of claim 33, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
41. The method of claim 40, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
42. The method of claim 33, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
43. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a synthetic 401 (k) plan as the replacement for the benefit plan.
44. The method of claim 43, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
45. The method of claim 44, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
46. The method of claim 43, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
47. The method of claim 46, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
48. The method of claim 43, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
49. The method of claim 48, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
50. The method of claim 43, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
51. The method of claim 50, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
52. The method of claim 43, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
53. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a stock option substitute as the replacement for the benefit plan.
54. The method of claim 53, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
55. The method of claim 54, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
56. The method of claim 53, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
57. The method of claim 56, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
58. The method of claim 53, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
59. The method of claim 58, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
60. The method of claim 53, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
61. The method of claim 60, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
62. The method of claim 53, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
63. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a pension gap supplement as the replacement for the benefit plan.
64. The method of claim 63, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
65. The method of claim 64, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
66. The method of claim 63, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
67. The method of claim 66, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
68. The method of claim 63, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
69. The method of claim 68, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
70. The method of claim 63, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer or the processing of the input data into the outout data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
71. The method of claim 70, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
72. The method of claim 63, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
73. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a voluntary contribution as the replacement for the benefit plan.
74. The method of claim 73, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
75. The method of claim 74, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
76. The method of claim 73, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
77. The method of claim 76, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
78. The method of claim 73, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
79. The method of claim 78, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
80. The method of claim 73, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
81. The method of claim 80, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
82. The method of claim 73, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
83. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for an employer supplemental contribution as the replacement for the benefit plan.
84. The method of claim 83, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
85. The method of claim 84, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
86. The method of claim 83, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
87. The method of claim 86, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
88. The method of claim 83, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
89. The method of claim 88, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
90. The method of claim 83, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
91. The method of claim 90, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
92. The method of claim 83, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
93. The method of claim 1, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a plan covering at least one of health, life, and disability as the replacement for the benefit plan.
94. The method of claim 93 wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan.
95. The method of claim 94, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
96. The method of claim 93, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for an incentive plan as the benefit plan.
97. The method of claim 96, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
98. The method of claim 93, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a participation plan as the benefit plan.
99. The method of claim 98, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
100. The method of claim 93, wherein the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan, the replacement being viable at the replacement plan location, includes engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for the replacement for a retirement plan as the benefit plan.
101. The method of claim 100, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
102. The method of claim 93, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
103. The method of claim 1, wherein the processing is carried out with funding for the replacement plan including a life insurance policy optionally compliant with United States regulations.
104. The method of claim 103, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
105. The method of claim 1, wherein the processing is carried out with funding for the replacement plan including life insurance with a dial-in death benefit.
106. The method of claim 105, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
107. The method of claim 1, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
108. A computer-based system for illustrating a replacement of a benefit plan that is available at one location but not viable at a location for the replacement, the system comprising:
a memory device storing input data defining a benefit plan that is viable at one location but not viable at a location for a replacement of the benefit plan;
a computer-to-computer communication device for obtaining at least some of the input data in the memory device from at least one other computer located remote from said memory device;
an input device for obtaining at least some of the input data in the memory device;
a processor coupled to the memory device, the processor programmed to control the computer-to-computer communication device and the input device in the respective obtaining and processing the input data into output data corresponding to characteristics for the replacement of the benefit plan; and
a printing device for generating an illustration of the replacement in response to respective control of the processor.
109. The system of claim 3 wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a replacement administering computer programmed to control administering of the replacement in accordance with the illustration; and
said additional documentation includes a reporting of said administering.
110. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a plan sponsor accounting computer programmed to control accounting of payments for the replacement in accordance with the illustration; and
said additional documentation includes a reporting of said accounting payments.
111. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a trust accounting computer programmed to control the trust accounting for the replacement in accordance with the illustration; and
said additional documentation includes a reporting of said trust accounting.
112. The system of claim 111, wherein the trust accounting computer is programmed to control the trust accounting for an unfunded deferred tax plan trust.
113. The system of claim 111, wherein the trust accounting computer is programmed to control the trust accounting for a funded current tax immediate-vesting plan trust.
114. The system of claim 111, wherein the trust accounting computer is programmed to control the trust accounting for a funded deferred tax deferred-vesting plan trust.
115. The system of claim 111, wherein the trust accounting computer is programmed to control the trust accounting for a funded 83(b) election, deferred tax deferred-vesting plan trust.
116. The system of claim 111, wherein the trust accounting computer is programmed to control the trust accounting for a plurality of trusts for plans from at least two of the group consisting of an unfunded deferred tax plan, a funded current tax immediate-vesting, a funded 83(b) election and deferred tax deferred-vesting plan trust, and a funded deferred tax deferred-vesting plan.
117. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a life insurance policy administering computer programmed to compute the policy values, net of all expenses and charges, for fiduciary accounting in accordance with the illustration; and
said additional documentation includes a reporting of the policy values, net of all expenses and charges.
118. The system of claim 117, wherein the life insurance policy administering computer is respectively programmed to compute a determination of the transfer of risk liability between a carrier of the policy and a reinsurer in accordance with the illustration; and
said additional documentation includes a reporting of the determination.
119. The system of claim 118, wherein the life insurance policy administering computer is respectively programmed to compute a net asset value of investments held by at least one money manager, the net asset value for use in determining the policy values for life insurance policy administration, in accordance with the illustration.
120. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes an assets value calculating computer respectively programmed to determine a net asset value of investments held by at least one money manager, the net asset value used in determining the policy values for life insurance policy administration, in accordance with the illustration; and
said additional documentation includes a reporting of the net asset value.
121. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a trust funds investment manager computer respectively programmed to track custody, current market value, and allocation of assets held by at least one money manager in accordance with the illustration; and
said additional documentation includes a reporting of the custody, current market value, and allocation of assets.
122. A The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a banking services computer respectively programmed to control at least one member of the group consisting of cash management, lending, letters of credit, personal financial statement preparation, for a participant in the replacement; and
said additional documentation includes a reporting of the at least one member of the group.
123. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a investment services computer respectively programmed to control at least one member of the group consisting of asset allocation, fixed-ingome investment management, equity investment management, tax-efficient investment management, Guaranteed Return Income Plan, investment performance reporting, and investment manager selection services, for a participant in the replacement; and
said additional documentation includes a reporting of the at least one member of the group.
124. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a relocation services computer respectively programmed to control at least one member from the group consisting of real estate brokerage support, education/school location, language support, local area familiarization, buying services, and moving services, for a participant in the replacement; and
said additional documentation includes a reporting of the at least one member of the group.
125. The system of claim 111, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes an estate planning computer respectively programmed to control at least one member from the group consisting of current estate analysis, host country jurisdictional analysis, current will review, current trust review, multi-jurisdictional estate planning, legal referral service, trust services, and estate settlement services, for a participant in the replacement; and
said additional documentation includes a reporting of the at least one member of the group.
126. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes at least one sub-trust illustration computer respectively programmed to control accounting for an unfunded sub-trust and for administering of the replacement plan funding assets in accordance with the illustration; and
said additional documentation includes a reporting of the accounting for the unfunded sub-trust and the administering of the replacement plan funding assets.
127. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes at least one sub-trust illustration computer respectively programmed to control accounting for a participant-owned sub-trust and for administering of the replacement plan funding assets in accordance with the illustration; and
said additional documentation includes a reporting of the accounting for the participant-owned sub-trust and the administering of the replacement plan funding assets.
128. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes at least one sub-trust illustration computer respectively programmed to control accounting for a funded vesting sub-trust and for administering of the replacement plan funding assets in accordance with the illustration; and
said additional documentation includes a reporting of the accounting for the funded vesting sub-trust and the administering of the replacement plan funding assets.
129. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes at least one sub-trust illustration computer respectively programmed to control accounting for a funded, currently taxable, vesting sub-trust and for administering of the replacement plan funding assets in accordance with the illustration; and
said additional documentation includes a reporting of the accounting for the currently taxable, vesting and the administering of the replacement plan funding assets.
130. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a marketing computer respectively programmed to generate marketing proposals from pre-entered text combined with later-computed data inserted therein, in accordance with the illustration.
131. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a reinsurance computer respectively programmed to determine a net liability transferred from a carrier to a reinsurance company in sharing risk of a policy or group of policies in accordance with the administering, and in response to entering data reflecting a portion of premium transferred from the carrier to the reinsurance company, a portion of a benefit transferred from the reinsurance company back to the carrier, and a portion of an expense allowance transferred from the reinsurance company back to the carrier; and
said additional documentation includes a reporting of the net liability transferred from a carrier to a reinsurance company.
132. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes an off-shore payroll accounting computer respectively programmed to control payroll accounting in accordance with the illustration; and
said additional documentation includes a reporting of the payroll accounting.
133. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a plurality of replacement plan participant's computers respectively programmed to communicate data over the Internet to obtain replacement plan participant reports and asset allocation data for the participant's liability accounts in accordance with the illustration; and
said additional documentation includes a reporting of the reports and asset allocation data.
134. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a consultant's computer respectively programmed to generate, as the additional documentation, a comparative study showing equivalent benefits for the consultant's client in response to input data identifying a plan to be illustrated for potential replacement.
135. The system of claim 134, wherein the at least one other computer includes a compliance computer respectively programmed for generating accounting and tax data, which is input data to said consultant's computer for further processing to enable said consultant's computer to generate said comparative study.
136. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a consultant's computer respectively programmed for generating, as the additional documentation, a compliance report for due diligence analysis of the replacement plan in accordance with the illustration.
137. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a case study and sensitivity computer respectively programmed for generating, as the additional documentation, a plurality of documents collectively showing ramifications of at least one from the group consisting of a change in performance, an analytic assumption, and a target for the replacement in accordance with the illustration.
138. The system of claim 109, wherein:
said at least one other computer respectively includes a memory device storing additional input data corresponding to said benefit plan, a computer-to-computer communication device, an input device for obtaining the additional input data, and a processor programmed to control the at least one other computer, and a printing device for generating additional documentation at a location proximate to said at least one other computer;
the at least one other computer includes a revenue accounting computer respectively programmed for computing at least one of the fees from the group consisting of participation fees, plan administration fees, co-trustee fees, insurance policy fees, reinsurance participation fees, investment management trailer fees, and Internet usage fees in accordance with the illustration; and
said additional documentation includes a reporting of calculations for the fee, in accordance with said illustration.
139. A machine for illustrating a replacement of a benefit plan that is available at one location but not viable at a location for the replacement, the system comprising:
"a memory divice storing input data defining a benefit plan that is viable at one location but not viable at a location for a replacement of the benefit plan;"
an input device for obtaining at least some of the input data in the memory device;
means for processing input electronic signals into output electronic signals, said input data corresponding to characteristics of a benefit plan that is viable at one location but not viable at another location, and said output data corresponding to characteristics for the replacement of the benefit plan;
a printing device for generating an illustration of the replacement in response to respective control of the processor.
140. The machine of claim 139, further including:
means for computer-assisted administering of the replacement in accordance with the illustration.
141. A computer-based system for illustrating a replacement of a benefit plan that is available at one location but not viable at a location for the replacement, the system comprising:
"a memory device storing input data defining a benefit plan that is viable at one location but not viable at a location for a replacement of the benefit plan;"
a computer-to-computer communication device for obtaining at least some of input data in the memory device from at least one other computer located remote from said memory device;
an input device for obtaining at least some of the input data in the memory device;
means for controlling the computer-to-computer communication device and the input device in obtaining and in processing the input data into output data corresponding to characteristics for the replacement of the benefit plan; and
a printing device for generating an illustration of the replacement in response to respective control of the processor.
142. The machine of claim 141, further including: means of computer-assisted administering of the replacement in accordance with the illustration.
143. The method of claim 142, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
144. A machine-implemented method for illustrating a replacement of a benefit plan, the method including the steps of:
entering information defining a benefit plan that is viable at one location but not viable at an employment location, to convert the information into a portion of the input data electrically conveyed to a programmed processor in a digital electrical computer;
processing of the input data into output data corresponding to characteristics for a replacement of the benefit plan, the replacement being viable at the employment location; and
generating an illustration of the replacement at the output device.
145. The method of claim 144, wherein the processing is carried out with funding for the replacement plan including life insurance; and further including the steps of:
entering insured-identifying data; and
separately entering replacement plan participant-identifying data, wherein the insured-identifying data is not necessarily identical to the participant-identifying data.
146. The method of claim 145, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
147. The method of claim 144, further including the step of computer-assisted administering of the replacement in real time.
148. The method of claim 147, further including the step linking the digital computer to another digital electrical computer by a computer-to-computer communications device to implement the replacement by multi-computer cooperative data processing in accordance with the illustration.
149. The method of claim 148, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
150. The method of claim 147, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
151. The method of claim 144, further including the step linking the digital computer to another digital electrical computer by a computer-to-computer communications device to implement the replacement by multi-computer cooperative data processing in accordance with the illustration.
152. The method of claim 151, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
153. The method of claim 144, wherein the processing is carried out with funding for the replacement plan including a life insurance policy optionally compliant with United States regulations.
154. The method of claim 153, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of:
providing an Internet communication accessible to computers of respective participants in the replacement.
155. The method of claim 144, wherein the processing is carried out with funding for the replacement plan including life insurance with a dial-in death benefit.
156. The method of claim 155, wherein:
the step of generating is carried out with the replacement being a replacement effective in more than one nation; and
further including the step of;
providing an Internet communication accessible to computers of respective participants in the replacement.
Description
I. BACKGROUND OF THE INVENTION
A. Copyright Notice
This patent document contains material that is subject to copyright protection. The copyright owner has no objection to a statutory fair use of this material, as it appears in the files of the files or records of the U.S. Patent and Trademark Office, but otherwise reserves all copyright rights whatsoever.
B. Technical Field of the Invention
The present invention is in the field of digital electrical machines and methods for making and using the same, data structures, necessary intermediates, and products produced thereby. More particularly, the present invention is directed to a digital electrical apparatus and method for data processing and data management having particular utility in the field of employee benefits, insurance, and compensation, especially in a business or financial transaction data processing system. Still more particularly, the present invention pertains to automated or partially automated (as by machine) activities in financial, business practice, management, or cost/price determination. Even more particularly, the present invention pertains to a machine comprising a digital electrical computer having a processor programmed for electrically processing input data into output data, the computer electrically connected to an input device and to an output device, for illustrating a replacement of a benefit plan.
II. BACKGROUND OF THE INVENTION
The genesis of this invention originates in what the inventor believes is a need to provide fair and equal compensation to the global work force. And given the morass of national laws, it has been a challenge to provide equivalent benefits to employees, executives, and self-employed individuals located anywhere in the world. Typically, U.S. multi-national employers (MNEs) will offer their domestic employees both "qualified" and "non-qualified" benefits. Qualified benefits usually include one or more retirement plans, designed as either defined benefit plans (such as pensions) or defined contribution plans (such as the 401 (k)). Non-qualified plans are generally available only to executives and include both defined benefit plans, such as Supplemental Executive Retirement Plans (SERPs), defined contribution plans, such as Deferred Compensation Plans, incentive plans, such as Incentive Stock Option Grants, and risk-transfer plans, such as Executive Life Insurance Plans (ELIPS).
For those employees outside the U.S., whether they are U.S. citizens on a foreign assignment (expatriates), foreign nationals on assignment in the U.S. (inpatriates), third-country nationals (TCNs), or foreign nationals in their home country (locals), cannot be offered the same benefit plans for economic and tax reasons. Therefore, an inequity in benefits is created between the international employees, both U.S. and foreign, and their U.S.-based peers. Often, the disgruntled international employees openly express their discontent and the MNE's human resource (HR) department is under pressure to provide an equivalent benefit. Prior to this invention, there was no efficient uniform means for providing equivalent benefits, and most MNEs would ignore the demands for equivalent benefits or increase cash compensation as a partial offset.
Many MNEs do not allow their U.S. expatriates to participate in the employer's 401 (k) plan, because the deferral of income is recognized as income in the majority of foreign jurisdictions. This means that the employee is taxed on income not received, and the MNE will usually gross up the employees' compensation to cover the additional foreign income tax, under the MNE's tax equalization program. Those MNEs that do allow their employees to participate in the 401 (k) retirement plan incur added globalization costs.
In addition, when foreign national employees are assigned to work in countries other than their home country (TCNs) the home country pensions are frozen and the employee may or may not be eligible to participate in the pension plans of the host country where assigned. Consequently, the TCN employee may retire with a pension that is less than the pension of a colleague who never left the home country. Prior to this invention, there was not uniform means for providing "pension gap" funding created by these situations.
The cost of maintaining a global workforce is significant. Generally, an employee in the U.S. with an annual salary of $100,000 may cost the MNE over $500,000 annually while on an overseas assignment, because of incentives, allowances and tax gross-ups that are usually paid. Local nationals and TCNs may be somewhat less expensive, based on their negotiated compensation packages. To alleviate the cost of globalization, the international HR departments are continually pressured to find ways to cut cost. At the same time, the international employees are trying to ensure that cost cutting does not affect their pocketbooks. Prior to this invention, there was no uniform means for reducing employee cost without reducing the employee's compensation package.
The time required to administer an international workforce is also excessive. It is estimated through surveys, conducted by Organization Resource Counselors, Inc. in New York, that each international employee demands over 60 hours of administrative time per year. This time is spent administering compensation and benefit issues for the various jurisdictions in which the MNE may be operating. If an MNE is operating in 200 countries globally, there are 200 different sets of labor and tax laws that the international HR department has to consider when making even the smallest change to the compensation and benefits program. The implementation of a global plan, such as an incentive stock option program, presents significant administrative time requirements and expense to sort the tax and legal impact associated with its implementation. Prior to this invention, there was not a single-source, cross-border solution for implementing benefit plans.
Recruitment for foreign assignments is also difficult. Historically, employees have been financially enticed to accept a foreign assignment. In recent history, career development requires international experience, and the HR departments would like to change the employee's motivation for accepting an assignment from a financial incentive to a career incentive. However, due to downsizing and mergers, most employees are not convinced that career enhancement opportunities actually result from overseas assignments. In many cases, the international employee has had no career position to return to upon repatriation. Therefore, it is difficult to gain employee acceptance of any cost cutting program in favor of career enhancement. Today, employees are focused on "what's in it for me." Prior to this invention, there was no uniform means for keeping the employee "whole," while reducing the cost to the MNE.
To further complicate the situation, MNEs have to continually deal with changing tax laws in the U.S., as well as the other jurisdictions in which they may do business. Compliance with changing tax laws and host country social programs is extremely challenging. Consequently, many MNEs find themselves out of compliance in one or more jurisdictions. Prior to this invention, there was no uniform means for providing benefits in a stable tax environment that would be applicable across jurisdictional borders.
Currently, only a few MNEs have addressed these issues to any great extent. In doing so, there have been programs designed for each specific type of international employee and each host country in which they work. Consequently, some MNEs may have as many a 100 different benefit plans for their global workforce. The administrative burden is overwhelming. Prior to this invention, there was no uniform means for providing a single-source benefit program that could provide multi-jurisdictional benefits.
The intent of this invention is to provide equivalent benefits. It is important to understand that equivalent benefits means "equitable" benefits, but does not have to be the "same" benefits. To further explain, foreign employees do not need to participate in a U.S. 401 (k) plan, as long as the distribution from their replacement plan provides the same economic benefit as their U.S. peers.
To design a multi-jurisdictional replacement benefit plan is largely dependent on the tax laws of the host jurisdiction within which the benefitted employee is the taxed entity. Generally, foreign jurisdictions are either common law or civil law entities. Civil law is based on the court's interpretation of the law as written, whereas each court decision adds to the body of law in a common law system. In either system, individual taxable income is based on any one or more of the following factors:
1. Tax residency
2. Remittance of income into the country
3. Economic benefit enjoyed by the individual
4. Benefits-in-kind
5. Constructive receipt of the income
6. Income effectively connected with the country (foreign sourcing)
7. Income for services provided in the country.
Traditional devices, such as the 401 (k), deferred compensation and split-dollar executive life insurance plans, depend on special provisions in the U.S. tax law, which do not exist in foreign jurisdictions. Whereas an U.S. employee is allowed to elect to defer income not yet received without being in constructive receipt of the income, foreign jurisdictions consider the right to defer the same as constructive receipt and tax a deferral as income. Likewise, premiums paid on behalf of the employee for a split-dollar program (ELIP) may be taxed as benefits in kind. Although elective deferred compensation plans may be recognized by a few foreign jurisdictions, they generally require a more severe risk of forfeiture than acceptable in U.S. plans.
In addition, any items of compensation attached to the international employee become subject to foreign social insurance costs, which in most cases are materially significant. So, it is also important to attempt to reclassify any replacement benefits as non-income, as well as non-taxable.
In general, employee benefits can be classified in three ways--(1) risk-shifting plans, such as life, health and disability insurance, (2) accumulation plans, such as retirement plans, and (3) income deferral plans, such as non-qualified deferred compensation. Prior to this invention, compensation techniques, such as assignment-completion bonuses, were the predominant tax avoidance strategy employed by consultants. However, these bonuses are being viewed by foreign tax entities as compensation related to services provided in the host country and subject to tax through the application of both "attribution" and "look-back" rules. To provide replacement benefits utilizes risk-shifting and accumulation strategies, since the employee's right to defer income is considered constructive receipt by most foreign jurisdictions and therefore, subject to tax.
The number of companies globalizing is increasing. Yet, the systems for supporting an international workforce are generally not adequate and sometimes obsolete. There is a limited number of consulting firms able to provide advice to MNEs and even less time to perform the myriad of functions necessary to support a global workforce. There are tremendous pressures to reduce costs, while at the same time improve performance. Consequently, the development and providing of state-of-the-art global benefits programs have been given a higher priority than ever before.
Meanwhile, MNEs are seeking the ability to provide equitable cross-border benefits to their global employees, and therefore, consultants are anxiously seeking providers who can supply global benefit solutions. Yet, to date, no one has dedicated the time and resources to developing the complex structures needed to provide global benefit plans. Prior to this invention, products and support programs for global benefit plans did not exist.
While there do exist a few providers who offer global health plans and group life, health and disability insurance plans, there are no providers of replacement benefits. In addition, there are considerable efforts being made to introduce defined contribution plans into Europe. Legislative changes are slow, especially in those countries where the social insurance programs are the strongest. Europe and the Far East are seeking an easy-to-implement defined contribution solution. Prior to this invention, there was no plan that could meet their needs.
Self-Employed Individuals and Consultants. The need for replacement benefits is not limited to employees and executives of multi-national corporations. In the global workplace, an increasing number of individuals are working as consultants or starting their own companies. Prior to this invention, there was no single source for these individuals to obtain the benefit plans they needed.
Individual Financial Services. Since replacement benefit plans are financial by nature, they affect every aspect of an individual's financial affairs. Therefore, prior to the present invention, replacement benefits have not been integrated with other financial services that might be needed by the plan participant. The services that this is invention integrates include, but are not limited to, banking services, investment services, financial planning services, estate planning services, relocation services, and other such services.
Assumption of Benefit Liability. In accounting for benefit plans, the benefits owed to the plan participant's are considered liabilities on the company's balance sheet, and the annual increase in the benefit liability has a negative impact on the company's earnings statement for the period in which the increase occurs. Consequently, the company's benefit plans can have an unfavorable impact on the financial welfare of a company independent of sales, production and/or operations. Company management would like to be able to be able to completely out-source the benefit liabilities to relieve the company of the financial impact, as well as the administrative burden of providing services that are outside of the company's business. Until this invention, there was no means for the assumption of the benefit liability.
III. SUMMARY OF THE INVENTION
A. Objects
Thus, an object of the invention for which a patent is sought is overcoming some or all of the drawbacks indicated herein by digital electrical computerized means or at least partially by machine.
It is a more particular object of the present invention to provide an apparatus and method for using a digital electrical computer system to process digital electrical signals to illustrate a replacement of a benefit plan.
It is a more particular object of the present invention to provide an apparatus and method for using a digital electrical computer system to process digital electrical signals to illustrate a benefit plan that is viable at one location but not viable at the replacement plan location.
It is a more particular object of the present invention to provide an apparatus and method for using a digital electrical computer system to process the input data into the output data, the output data corresponding to characteristics for a replacement of the benefit plan that is viable at the replacement plan location.
It is still another object of the present invention to provide an apparatus and method for using at least one, and preferably a plurality, of digital electrical computer systems to process digital electrical signals in support and implementation of the replacement plan, especially including computerized or computer-aided generation of all documentation involved in illustrating, supporting, and implementing the replacement plan.
It is yet another object of the present invention to provide an apparatus and method for using at least one, and preferably a plurality, of digital electrical computer systems to process digital electrical signals in an electronic community of related services (as discussed hereinafter) distinguished by virtue of the replacement plan or participation therein.
B. Summary
To meet these and other objects apparent from this document as a whole, the inventor herein has made a first innovation in the field of compensation and particularly in benefits that has created a need for a second innovation in the field of computer science, the latter being the subject of this patent application. The invention for which a patent is sought in overcoming some or all of the drawbacks indicated herein is an apparatus (machine), method of making the machine and products produced thereby, method of using the machine, article of manufacture, necessary intermediates including data structures, collectively referenced herein as the method. The method is implemented with a machine comprising a digital electrical computer having a processor programmed for electrically processing input data into output data, the computer electrically connected to an input device and to an output device, for illustrating a replacement of a benefit plan. Preferably, the method is carried out including the steps of: entering information defining a benefit plan that is viable at one location but not viable at the location of the replacement plan, to convert the information into a portion of the input data that is electrically conveyed to the digital electrical computer for processing; engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement of the benefit plan that is viable at the replacement plan's location; and generating an illustration of the replacement at the output device. The foregoing can be carried out further including the step of computer-assisted administering of the replacement in accordance with the illustration and/or further including the step of computer-assisted accounting of payments for the replacement in accordance with the administrating and/or further including the step of computer-assisted trust accounting for the replacement in accordance with the administrating.
In any of the foregoing, the step of computer-assisted trust accounting for the replacement in accordance with the administrating can include the step of computer-assisted trust accounting for an unfunded deferred tax plan trust, and/or can include the step of computer-assisted trust accounting for a funded current tax immediate-vesting plan trust, and/or can include the step of computer-assisted trust accounting for a funded deferred tax deferred-vesting plan trust, and/or can include the step of computer-assisted trust accounting for a funded 83(b) election, deferred tax deferred-vesting plan trust, and/or can include the step of computer-assisted trust accounting for a plurality of trusts for plans from at least two of the group: unfunded deferred tax plan; funded current tax immediate-vesting; funded 83(b) election, deferred tax deferred-vesting plan trust; and funded deferred tax deferred-vesting.
Similarly, any variant of the foregoing can further include the step of computer-assisted policy administration for funding for the replacement in accordance with the trust accounting, and/or computer-assisted calculating of net asset accumulation of the funding for the replacement for reporting and in accordance with the policy administration, and/or computer-assisted reinsurance administration for the policy in accordance with the policy administration, and/or computer-assisted reinsurance administration for the policy in accordance with the policy administration.
Likewise, in any variation of the foregoing, the step of engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a replacement for the benefit plan that is viable at the replacement plan's location, can include engaging the digital electrical computer for the processing of the input data into the output data, the output data corresponding to characteristics for a cost-reduction-profit sharing replacement for the benefit plan, corresponding to characteristics for a synthetic defined contribution plan as the replacement for the benefit plan, corresponding to characteristics for a stock option substitute as the replacement for the benefit plan, corresponding to characteristics for a pension gap supplement as the replacement for the benefit plan, corresponding to characteristics for a voluntary contribution as the replacement for the benefit plan, corresponding to characteristics for an employer supplemental contribution as the replacement for the benefit plan, corresponding to characteristics for a plan covering at least one of health, life, and disability as the replacement for the benefit plan, corresponding to characteristics for the replacement for a retirement plan as the benefit plan, corresponding to characteristics for the replacement for a deferred compensation plan as the benefit plan, characteristics for the replacement for an incentive plan as the benefit plan, and/or characteristics for the replacement for a retirement plan as the benefit plan.
Moreover, in the foregoing variants, the step of computer-assisted trust accounting for the replacement in accordance with the administrating can include accounting for a trust investment, accounting for a loan secured by non-trust funds, and/or accounting for interim distributions of trust funds.
Additionally, any such variants can be carried out as further including providing Internet-based computerized banking services in response to data communicated over the Internet to a banking service computer, the data confirming an identity for an employee receiving the replacement.
It is especially preferred that any of the foregoing be carried out by further including providing Internet-based computerized investment service in response to data communicated over the Internet to an investment service computer, the data confirming an identity for an employee receiving the replacement, further including providing Internet-based computerized financial planning service in response to data communicated over the Internet to a financial planning service computer, the data confirming an identity for an employee receiving the replacement, further including providing Internet-based computerized relocation service in response to data communicated over the Internet to a relocation service computer, the data confirming an identity for an employee receiving the replacement, further including providing Internet-based computerized estate planning service in response to data communicated over the Internet to an estate planning service computer, the data confirming an identity for an employee receiving the replacement.
III. BRIEF DESCRIPTION OF THE DRAWINGS
FIG. 1 is a representation of a computer system, particularly illustrating suitable hardware for the present invention;
FIG. 2 is an overview of the present invention, particularly illustrating cooperation of elements of the present invention;
FIG. 3 is a logic flow diagram for the illustrating an overview for the present invention;
FIG. 4 is a diagram of a benefit plan menu for the present invention;
FIG. 5 is a logic flow diagram for valuing a benefit plan that is in place until maturity;
FIG. 6 is a logic flow diagram for valuing a benefit plan that is not continuously in place until maturity;
FIG. 7 is a diagram of a replacement plan menu for the present invention;
FIG. 8 is a logic flow diagram of generating replacement plan characteristics;
FIG. 9 is a overview logic flow diagram for administering the replacement plan;
FIG. 10 is a logic flow diagram of the replacement plan participant's transactions affecting the replacement plan administering;
FIG. 11 is a logic flow diagram of the replacement plan sponsor's transactions affecting the replacement plan administering;
FIG. 12 is a logic flow diagram of the replacement plan funding transactions affecting the replacement plan administering;
FIG. 13 is a logic flow diagram of inputting the participant's data into the replacement plan administering;
FIG. 14 is a diagram of an output report menu for the replacement plan administering;
FIG. 15 is a logic flow diagram for accounting for the replacement plan by the plan sponsor;
FIG. 16 is a logic flow diagram for the system used to market the replacement plan;
FIG. 17 is a logic flow diagram for providing additional services to the replacement plan participants via the Internet and other electronic and non-electronic networks;
FIG. 18 is a logic flow diagram for a consultant's computer system used to provide replacement plan consulting to plan sponsor's and participants;
FIG. 19 is a logic flow diagram for managing investment funds of the replacement plan by independent money managers and/or investment sub-advisers;
FIG. 20 is a logic flow diagram for valuing the assets held in the investment accounts;
FIG. 21 is an overview logic flow diagram for the administering of a life insurance policy for use in a replacement plan;
FIG. 22 is a logic flow diagram for valuing the life insurance policy for administering purposes;
FIG. 23 is a logic flow diagram for valuing the life insurance policy's Deferred Acquisition Costs (DAC) receivable account for administering purposes;
FIG. 24 is a logic flow diagram valuing the life insurance policy's Mortality Reserve for administering purposes;
FIG. 25 is a logic flow diagram for valuing the life Net Premium for life insurance administering purposes;
FIG. 26 is a logic flow diagram for valuing the life insurance policy's Cost of Insurance (COI) for administering purposes;
FIG. 27 is a logic flow diagram for valuing the life insurance policy's Mortality and Expense Risk (M&E) charge for administering purposes;
FIG. 28 is a logic flow diagram for valuing the life insurance policy's Investment Management (IM) fees for administering purposes;
FIG. 29 is a logic flow diagram for valuing the investment income used in determining the life insurance policy value for administering purposes;
FIG. 30 is a logic flow diagram for valuing the net liability transferred from the life insurance carrier to the reinsurance facility for administering purposes;
FIG. 31 is a logic flow diagram for the payment of life insurance death claims for administering purposes;
FIG. 32 is a overview logic flow diagram for the accounting of the benefits master trust for the administering of the replacement plan funding assets;
FIG. 33 is a logic flow diagram for administering the accounting for the unfunded sub-trust for the administering of the replacement plan funding assets;
FIG. 34 is a logic flow diagram for administering the accounting for the funded, participant owned sub-trust for the administering of the replacement plan funding assets;
FIG. 35 is a logic flow diagram for administering the accounting for the funded vesting sub-trust for the administering of the replacement plan funding assets;
FIG. 36 is a logic flow diagram for administering the accounting for the funded, currently taxable, vesting sub-trust for the administering of the replacement plan funding assets;
FIG. 37 is a logic flow diagram for accounting for the revenue generated from the replacement plan.
IV. DETAILED DESCRIPTION OF THE DRAWINGS
FIG. 1 shows, in block diagram form, the computer-based elements that can be utilized to implement the present invention. The present invention involves computer system 1, which encompasses processor circuitry 3 in a digital electrical computer 2. For flexibility, it is preferable to have the processor circuitry 3 formed by means of a computer program programming programmable circuitry, i.e., programming the computer (microprocessor, such as one of the Pentium series). The programming can be carried out with a computer program (or programs) 4, which for flexibility should be in the form of software stored in an external memory 5, such as a diskette, hard disk, virtual disk, or the like form of an article of manufacture. (The virtual disk is actually an extended internal memory 5 that may assist in speeding up computing.) A diskette approach is optional, but it does provide a useful facility for inputting or storing data structures that are a product produced by the host software, as well as for inputting a software embodiment of the present invention. Of course, storing the computer programs 4 in a software medium is optional because the same result can be obtained by replacing the computer programs in a software medium with a hardware storage device, e.g., by burning the computer programs 4 into a ROM to form a specific hardware embodiment, using conventional techniques to convert software into an ASIC or FPGA, etc., as would be understood by one having a modicum of skill in the arts of computer science and electrical engineering. (It is well known in the art of computer science that it is a trivial technical exercise to go from hardware to software or vice versa. See, for example, James R. Goodman, Todd E. Marlette, and Peter K. Trzyna, "The Alappat Standard for Determining That Programmed Computers are Patentable Subject Matter," J.P.T.O.S. October 1994, Volume 76, No. 10, pages 771-786, and James R. Goodman, Todd E. Marlette, and Peter K. Trzyna, "Toward a Fact-based Standard for Determining Whether Programmed Computers are Patentable Subject Matter," J.P.T.O.S. May 1995, Vol. 77, No. 5, pages 353-367, both of which are incorporated by reference.) In this regard, it should also be noted that "input" can include inputting data for processing by the computer program 4 or inputting via a portion of the computer program 4 code itself. Likewise, computer system 1 contemplates implementations in one or a plurality of computers, which could be in a distributed network or even unconnected but operated to carry out the invention as a whole.
An internal memory 6 works in cooperation with the external memory 5. An input device 7 could be a keyboard or equivalent means for a user to input the data discussed below. A visual display unit 8 can be employed for a visual representation, and a printing device 9 can be employed for producing hard copy documentation output 10. Note that output electrical data corresponding to output 10 can also be stored to memory 5.
For such an embodiment, the following specification should operate satisfactorily: an IBM or compatible PC (type XT or upwards) computer with a Pentium 2 or higher processor, having at least 20 Meg of memory (RAM). The environment/operating system could be MS-DOS/PC-DOS (or equivalent) version 3.0 or later. A numeric (math) co-processor is also advantageous in speeding up computing times, as is an extended memory. Alternatively, a Windows implementation could be used. The input device 7 can be any ANSI standard terminal, and the visual display unit 8 can be a Trinatron color monitor.
Still other alternatives include optionally using a network 18, such as a telecommunications, Internet, or intranet network, in facilitating other computers 11 to cooperate. Such cooperation can also involve communicating by a computer-to-computer communications device (e.g., a modem). However, a mini-computer or a mainframe system, or the like could be employed. With such larger scale approaches, the external memory 5 could be a tape or a CD ROM for data retrieval. A VAX or MicroVAX system running VMS 5.0 or later is an acceptable approach.
As indicated above, an embodiment could also be carried out in hardware, though this is not recommended as it is an inflexible approach. Accordingly, a hardware implementation is described here for exemplary purposes. Of course it is well known that a computer program can be stored in hardware by many approaches, not the least of which is burning it into a ROM. More sophisticated than burning a ROM, but also entirely conventional, is to use techniques to translate the computer program 6 into an ASIC or a chip that will carry out the invention in an equivalent manner, and if fact with equivalent circuitry to that formed by programming programmable computer circuitry. It is all just digital electrical circuitry processing digital electrical signals, transforming them to output different electrical signals.
The present invention can best be implemented by utilizing a database 13 of files (or an equivalent, e.g., records, a relational database, etc.) pertaining to insurance documentation data for processing as discussed herein. In FIG. 1, a dotted line between database 13 and computer program 4 is to illustrate that the computer program 4 code can be used to convey data to database 13, though this is not a particularly flexible approach. In any case, such data can be obtained from data input at the input device 7, which converts the respective input data into respective electrical signals for handling by the digital electrical computer 2, and processor 3, including storing the respective digital electrical signals in the memories 5 and 6. Output electrical data, in the form of digital electrical signals, is generated by the processor 3 processing the input electrical data in a manner specified by the executable computer program 4 to generate (at printing device 9) documentation 10, including such documents as insurance and illustration documentation, forms corresponding to the benefits, and the like.
There can be five basic types of file or data stored in the external memory 5:
1. The main program file (i.e., computer program 4).
2. Local files 14 (files specific to a particular user and not available to other users). These include files describing the configuration of the user's preferred output format, private dictionary files, input and output files generated by the user, etc.
3. Data files 15 local to a user, which in a single computer system, can include the main database file.
4. User utilities 16, which assist in customizing reference files and in the creation of private dictionaries.
5. Reference files 17, which are accessible to all users (e.g., users of other computers 18) and include the standard (or "public") dictionary files, files containing the menus, error and information messages and prompts.
Of course, if the invention is carried out with one computer and used by one user, reference files 17 are kept along with local files 14. In any case, a user should have access to the files that include a machine-readable version of the above-referenced documentation 10.
The programmed processor circuitry 3 uses the electronic contents of Database 13, including files 14-17, which represent some or all of the data input by the user to produce output data in a digital electrical form of a string of bits which correspond to processed data. The processor circuitry 3 carries out its operations by using at least one "filter", which can be characterized as an analysis or process restricted by a precise definition implemented by the processor circuitry 3. Elements of the definition can be characterized by at least one logical operator or operand to indicate the precise definition or process to be carried out, e.g., whether the union or intersection of two elements or the complement of an element is required. The term "filter" is also applied to the process of applying this definition to change, create, or generate, or exclude data other than that defined from subsequent processing.
This invention can also be implemented by utilizing at least one pointer to insert a computed piece of data or text into other text and formatted to produce the above-referenced documentation 10. Alternatively, a plurality of pointers can be logically linked so that the output electrical data can be inserted in a plurality of locations in the aforementioned documentation 10. The computer program 4 controlling the digital electrical computer 2 checks for the pointer(s) to ascertain whether any electrical output data should be inserted in generating the documentation 10. This is preferable to an approach of doing the computing described in the subsequent figures.
For the sake of brevity, it should be understood that the foregoing detailed depiction of items 2-18 in FIG. 1 are also representative of the details of other computers 11 mentioned herein, including Replacement Plan Administering Computer 20, Accounting Computer 22, Master Trust Accounting Computer 24, Life Insurance Policy Administering Computer 26, Assets Value Calculating Computer 28, Trust Funds Investment Manager Computer 30, Banking Services Computer 32, Investment Services Computer 34, Relocation Services Computer 38, Estate Planning Services Computer 40, Other Services Computer(s) 41, administrating computers for sub-trusts 42-49, Marketing Computer 50, Reinsurance Company Computer 60, Off-shore Payroll Accounting Computer 62, Participant's Computer 68, Consultant's Computer 64, Compliance Computer 66, Case Study and Sensitivity Computer 70, Revenue Accounting Computer 72, etc. as set forth hereinafter and illustrated in FIG. 2. Each of other computers 11 can have analogous components to those encompassed in items 2-18 in FIG. 1, and that the other computers 11 can communicate via the computer-to-computer communication device 12, such as a modem, and the network 18, such as the Internet, or telephone or the like, connecting the computer's respective input devices.
More particularly in FIG. 2, a representation of the overall functioning system for the invention is illustrated. The logic for System 1 can involve at least two alternative approaches. Either the logic is initiated by a consultant acting on behalf of a plan sponsor or by the plan sponsor directly. The System 1 works equally well under both approaches.
Considering the first alternative, the process begins with input from the via Consultant's Computer 64, which may be used in supporting and automating the consulting services related to this invention. The input data can include a request for a comparative study for providing equivalent benefits for the consultant's client. The Consultant's Computer 64 can identify the plans(s) to be illustrated and replaced. The necessary plan sponsor and participants' data can also be transmitted or otherwise communicated.
The Consultant's Computer 64 receives data from a Compliance Computer 66, which may provide accounting, legal and/or tax information, possibly from a database or network, for the United States and the various foreign jurisdictions in which their clients can desire replacement plans. The compliance information is used by the consultant to perform due diligence on the replacement plan illustrated by this invention.
The Central Computer 2 uses the data input from the Consultant's Computer 64 to prepare the comparative illustration of the current and replacement plans, which can be transmitted to a Marketing Computer 50, for the preparation of a marketing presentation for use by the consultant. The consultant may also prepare case studies or sensitivity analyses (a plurality of documents collectively showing the ramifications of a change in performance, an analytic assumption, or a target for the replacement) for clients inputting the illustrations provided into the Case Study and Sensitivity Computer 70. The Central Computer 2 can also provide new illustrations for those studies and analyses through the Marketing Computer 50.
When a Plan Sponsor initiates the process directly, the U.S. Plan Sponsor Computer 22, requests the comparative analysis and provides the needed data. The comparative illustrations are sent to the Marketing Computer 50, and packaged for transmission to the plan sponsor through the Central Computer 2. The Marketing Computer 50 provides case study and sensitivity analysis.
The Plan Sponsor may be an off-shore employer, which is related to a domestic employer, or totally independent, such as a non-U.S. company. The off-shore plan sponsor may transmit data to the Central Computer 2 from its Payroll Accounting Computer 62 with the same results as previously described for the consultant and domestic plan sponsors.
Once the plan sponsor accepts the replacement plan, data is transmitted from the Central Computer 2, the Marketing Computer 50, and the consultant's Computer 64, to the Replacement Plan Administering Computer 20. The Replacement Plan Administering Computer 20 prepares participant enrollment kits and the plan sponsor administrative guide, as well as providing on-going plan administration. As part of the administering, the Replacement Plan Administering Computer 20 also tracks benefit liabilities and issues benefit payment checks directly to either the plan participant or to the plan sponsor for further distribution to the plan participant.
The Replacement Plan Administering Computer 20, transfers data to the Master Trust Accounting Computer 26, which matches the benefit liabilities against the plan assets held in trust. The Master Trust Accounting Computer 26 is used to administer the trust document supporting the replacement plan and authorizes benefit payments, which can also include premature distributions of assets through trigger devices, secured loans, and/or interim distributions. The Replacement Plan Administering Computer 20, identifies the event and initiates the payment through transmissions to the Master Trust Accounting Computer 24, which verifies the event and authorizes the Replacement Plan Administering Computer 20 to make the payment.
The Master Trust Accounting Computer 24 accounts for the co-mingled assets of four or more sub-trusts that support specific replacement plans. The Master Trust Accounting Computer 24 can support multiple sub-trusts, based on plan specifics. Sub-Trust A is an administering computer 42 for an unfunded, deferred tax trust with substantial risk of forfeiture. Sub-Trust B is an administering computer 44 for a funded, taxable trust owned by the participant with a pay-out schedule. Sub-Trust C is an administering computer 46 for a funded, tax deferred, stand-alone trust with a predetermined vesting schedule. Sub-Trust D is an administering computer 48 for a funded, taxable, stand-alone trust with a predetermined vesting schedule. Other computers for sub-trusts are illustrated by Block 49, may be added as needed.
If life insurance is used by the trustee as a trust investment, the Life Insurance Policy Administering Computer 26 provides the trustee with the policy values, net of all expenses and charges, for fiduciary accounting. The Life Insurance Policy Administering Computer 26 transfers data to the Reinsurance Company Computer 60, for the determination of the transfer of risk liability between the carrier and the reinsurer. The Life Insurance Policy Administering Computer 60 also provides life insurance illustrations to the Central Computer 2 for the preparation of the comparative illustrations.
The Life Insurance Policy Administering Computer 26, receives data from the Assets Value Calculating Computer 28, which determines the net asset value of the actual investments held by the money managers. The net asset value is used in determining the policy values needed for life insurance policy administration.
The trust assets are actually held and managed by investment managers around the world. The Trust Funds Investment Manager Computer 30 tracks the custody, current market values and allocation of the assets actually held by the managers. That data is transferred electronically to the Assets Value Calculating Computer 28.
The Central Digital Computer 2 also passes data to financial services providers' computers at the direction of participants. The financial services providers may be accessed via the network 12, including the Internet, Intranet, telecommunications, facsimile, letter or any other such possible means. The services include those corresponding to Banking Services Computer 32, Investment Services Computer 34, Financial Planning Services Computer 36, Relocation Services Computer 38, Estate Planning Services Computer 40, and other such services Computer 41 as need evolves.
The computer system 1 is designed to also provide data to and receive data from the replacement plan participants through their own personal Participant's Computers 68, via the Network 12. Access is limited by a gateway to the supplemental financial services, the replacement plan participant reports, the input of participant transactions, and asset allocation for the participant's liability account only.
Representative samples of the system's output documents are shown in Specimens 1 to 12, beginning with Specimen 1 below. Being only a representation of the actual documents that can be produced, the final output reports may be different in form, but similar in substance.
Turning now to FIG. 3, the central digital Computer 2 is used to generate comparative illustrations analyzing the replacement plan characteristics in comparison with the forfeited benefits not available or viable in the replacement plan's location. As described in FIG. 2, the process is initiated by either the consultant or the plan sponsor. In Block 115, the source of the data input is selected. If a consultant is selected, plan sponsor's data, Block 116, is provided by the appropriate Plan Sponsor Computer 22 and/or 62 to the Consultant's Computer 64, which in turn will provide the data, Block 117, to the Central Computer 2. Likewise, if the consultant is not selected, the plan sponsor's data, Block 118, is provided by the Plan Sponsor Computer 22 and/or 62, which will provide the data directly to the Central Computer 2.
As requested by the consultant or the plan sponsor, the first input item is the current benefit plan information 100, which is selected from the menu in FIG. 4. The selection would typically be a plan that may not be extended to foreign employees, such as non-qualified deferred compensation, or a plan that is not tax effective overseas, such as a 401 (k) retirement plan.
The next process step in Block 102 is to value the benefit plan if held to maturity and uninterrupted. This analysis assumes that the individual is a participant in the selected plan and that particpation will continue until the benefit plan matures and distributions made. If the individual is not a current participant, the analysis is prepared as if the individual is a particpant. For example, a new employee being hired to work in Europe may not have the opportunity to participate in the U.S. benefit plans, but wants an equivalent plan while employed overseas. Therefore, the illustration is generated as if the employee is a participant.
In Block 104, the current plan is recalculated illustrating the effect of not being able to particpate for a period of time, such as an employee on an overseas assignment for three years. As in Block 102, if the individual is not a current participant, the analysis is prepared as if the individual is a particpant, for the same reasons.
In Block 106, the selected plan variance is calculated between the illustrations of the plan held to maturity and the interrupted plan. That variance represents the lost benefit value experienced by the individual as a participant or would-be participant. For example, if an individual was unable to participate in the company's 401 (k) retirement plan for the three years while overseas, the value of the plan would be reduced by three years of contributions plus the lost earnings on those contributions.
In Block 108, the replacement plan that is best suited to provide the benefit equivalent to the value of the benefit being lost is selected from the replacement plan menu in FIG. 7. These plans are designed to provide an equivalent or improved economic benefit to the participant when compared to the plan being replaced.
In Block 110, the Central Computer generates the characteristics of the replacement plan on a current and prospective basis. This analysis is based on the same assumptions as the current plans for parity.
In Block 112, an illustration is generated that compares the illustrations generated in Blocks 102, 104, 106, and 112. This illustration may be presented as a side-by-side illustration or other format, as required. The purpose of this illustration is to quantify the ability of the replacement plan to meet or exceed the variance identified in Block 106. The ability of the replacement plan to provide equivalent value to the participant is a dominant goal of this invention.
Specimen 1 is a representative sample of a Participant Summary Illustration for a Replacement Plan for a U.S. 401 (k) retirement plan. The Participant Summary Illustration is supported by several schedules that provide the analysis necessary to generate the Summary Illustration. For a Replacement Plan with multiple participants, each participant's illustration is aggregated to generate Plan Sponsor Illustration, which includes the supporting schedules and a Plan Sponsor Summary Illustration. The supporting schedules can include the financial impact on the plan sponsor's cash flow, earnings statement, and balance sheet, as well as one or more life insurance illustrations. Various schedules can also be combined on one schedule, such the Participant and Plan Sponsor Summary Illustrations can be combined into one schedule, if preferred.
In Specimen 1, the participant assumptions used are on the first page and the summary illustration is on the second page. The supporting schedules are not included in this specimen, since they follow standard industry formats and can be derived from review of the Summary Illustration. The assumptions used include a 45 year old participant, with a $100,000.00 current 401 (k) balance, making a regular $10,000.00 annual contribution, and earning an overall 10% rate-of-return on the account. At the beginning of 1999, the participant will be assigned to a foreign assignment for five years, without the ability to continue to participate in the plan sponsor's 401 (k) plan, since the plan is not favorably taxed in the foreign jurisdiction. Therefore, the plan sponsor has implemented a Replacement Plan to assist the participant in maintaining an equivalent benefit. To implement the Replacement Plan, the participant has negotiated a remuneration package that includes a Replacement Plan Benefit of $50,000.00, plus earnings, which will be distributed when vested in 20 years. Since the participant has no access to the funds (constructive receipt) until the benefit vests, the benefits will not be taxed to the participant until distributed in 20 years. The plan sponsor will use this invention to fund the promised Replacement Plan benefit using a specially designed, no-load life insurance product as the investment vehicle.
The sample Summary Illustration in Specimen 1 is a typical side-by-side comparison of the ability of the Replacement plan to generate equivalent benefits. Section A illustrates the participant's account balance and retirement income benefit if the plan could be continued uninterrupted by the foreign assignment. Section B illustrates the effects of the five-year lapse of participation on the account balance and retirement income benefit. Section C illustrates the account balance and retirement income benefit of the Replacement Plan. The illustration shows the effect of combining the benefits in Section B with the Replacement Plan benefits in Section C and compares the combined Net Income to the Net Income in Section A. As Specimen 1 illustrates, the participant's position is improved.
In Block 114, the illustration is analyzed for meeting the objectives, and if further analysis is required, the process is repeated until the output illustration is satisfactory, or until all of the desired plan options are illustrated. Likewise, if the reillustration is for sensitivity analysis, required by the consultant and/or plan sponsor, additional input of the sensitivity parameters is entered into Block 100 from the Marketing Computer 50 in Block 470, FIG. 16.
Moving to FIG. 4, the Benefit Plan Menu, Block 120, is used by the operator to select the current benefit plan to be compared and replaced. The menu is expandable and can include specific employer plans, as well as generic or model plans. For example, a particular plan sponsor may want to use the specific features of the company's non-qualified deferred compensation plans, rather than a generic model that is programed into the computer. The plan sponsor's plan(s) is downloaded into the Central Computer 2.
In Block 122, the Retirement Plans selection includes various tax-qualified plans within the main selection, including, but not limited to, Defined Benefit plans, such as pension plans, and Defined Contribution plans, such as money purchase plans, profit-sharing plans and the 401 (k) profit-sharing plan. Also included are excess plans and restoration plans. Retirement plans can also include other types of empolyer-sponsored savings plans, such as Simplified Employer Plan (SEP), as well as individual retirement plans, such as Individual Retirement Accounts and Keogh plans. This menu selection also includes retirement plans of non-U.S. companies in foreign jurisdictions.
In Block 124, the Deferred Compensation Plans selection includes non-qualified deferred compensation plans of all types and variations, which are generally classified as defined contribution plans. As such, in most of these types of plans, a defined amount, expressed in percentages or pecuniary terms, is forgone (deferred) from remuneration by the participant. The deferred amount is accounted for by the plan sponsor as a liability and is credited with earnings, in accordance with the plan design. The liability is recorded on the plan sponsor's balance sheet, and the earnings credited to the account are charged against the earnings of the plan sponsor. This menu selection also includes deferred compensation plans of non-U.S. companies in foreign jurisdictions.
In Block 126, the Incentive Plans selection includes all forms of incentive plans, including bonus plans, short-term and long-term incentive plans, and management incentive plans. The various forms of stock incentive plans are also part of this menu selection. Incentive stock plans include qualified and non-qualified stock option grants, stock appreciation rights (SARs), phathom stock plans, and other forms of stock incentive plans. This menu selection also includes stock participation plans of non-U.S. companies in foreign jurisdictions.
In Block 128, the Social Insurance Plans selection includes all forms of government sponsored social insurance programs. For the U.S., this menu selection includes Social Security and its related programs of retirement, death, disability and medical insurance coverages. For foreign jurisdictions, this menu selection includes the government-sponsored programs specific to the jurisdiction.
In Block 130, the menu selection non-qualified defined benefit plans, such as a Supplemental Executive Retirement Plan (SERP), which pays an executive a supplemental retirement income at retirement. This menu selection also includes other forms of salary continuation plans and management supplemental retirement benefit plans. In addition, this menu selection includes non-qualified defined benefit plans of non-U.S. companies in foreign jurisdictions.
In Block 132, the menu selection allows for expansion to include other types of benefit plans that might be found in the U.S. and foreign jurisdictons.
Turning now to FIG. 5, the illustration for the current benefit plan active until maturity is form |
