Classifications

• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
  • G06Q40/08—Insurance

Definitions

• the present invention relates to benefit plans. Specific exemplary embodiments discussed relate to business methods for the design, implementation, and administration of nonqualified benefit plans.
• This invention relates generally to systems and methods for the design, implementation, and administration of compensation/benefit plans, and, more particularly, relates to systems and methods to enable the customized on-line design, implementation, and administration of nonqualified benefit plans.
• compensation and benefit are used interchangeably in this document and are intended to be construed broadly.
• Corporations compensate employees in a variety of ways, the simplest being cash payment. More complex compensation packages include, for example, medical coverage, day care, deferred compensation, and matching. Compensation plans may be generally categorized as nonqualified and qualified.
• a Nonqualified Benefit Plan is, generally, a selective benefit plan per U.S. Department of Labor Section 29 CFR 2530.201-2(b) and is subject to Title I of the Employee Retirement Income Security Act of 1974 (ERISA).
• Section 29 CFR 2530.201-2(b) states it is "A plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees.” While subject to Title I of ERISA, plans that meet the definition of Section 29 CFR 2530.201-2(b) are not subject to the reporting requirements of a "funded" employee benefit plan. In addition, income to the employee and tax deductions for the employer are both generally deferred until the benefits are actually paid.
• a qualified plan for example, a 401(k) plan
• 401(k) plan is one that meets certain requirements imposed by the Internal Revenue Code. These requirements include minimum coverage and nondiscrimination requirements prohibiting an employer from providing benefits for some employees to the exclusion of others, and limitations on the amount of benefits. There is also a flat annual limit (currently $10,500) on 401(k) plan elective deferrals. In return for compliance with these requirements, certain tax incentives are provided.
• nonqualified plans In nonqualified plans, however, the company's assets informally fund the plan. That is, a plan sponsor may acquire certain assets to hedge against the future obligations of a nonqualified plan. As mentioned above, a nonqualified plan must remain unfunded in order to avoid ERISA funded plan reporting requirements.
• Nonqualified benefit plan design is limited only by the creativity of the plan designer.
• clients have indicated they want programs that are simple to explain, easy to understand, and seamless to administer, the absence of tools to easily design and clearly articulate the plan and demonstrate the administration can actually be a detriment to nonqualified plan sales.
• Agents often present plan designs that appear more complicated than is actually necessary. A prospective client may end up not buying any plan because the sales process is made overly complicated.
• the traditional implementation process in which individual plan documents must be prepared and customized for each participant, serves to hamper nonqualified benefit plan participation in the emerging and middle market.
• the traditional legal process in which individually drafted legal agreements are prepared by outside counsel, often delays the implementation and enrollment process. It is also excessively expensive. The typical fee is $2,750-$3,000 for the first participant and $275-$500 for subsequent participants. If the plan has two compensation components, the document cost doubles. Hence, individual documents may cost over $1,000 per participant for a 5-life plan. This expense can be prohibitive to companies in the emerging and middle market, which often have relatively few potential participants.
• the present invention is realized in a system and method that enables the online customized design, implementation, and administration of nonqualified benefit plans.
• the System makes the act of purchasing, implementing, and administering a nonqualified plan simpler, faster, and less expensive.
• plan design complexity down to a number of simple program alternatives.
• plan types might include, for example, alternatives such as the following: Deferred Compensation Plan (Def Comp) —
• Def Comp Deferred Compensation Plan
• the employer enters into an agreement with the employee to permit the employee to defer a certain portion of their compensation until retirement.
• Deferred Compensation Plan with Employer Match (Def Comp Match) — A Deferred Compensation Plan with Employer Match functions in essentially the same manner as a standard Deferred Compensation Plan. In a Deferred Compensation Plan with Employer Match, however, the employer agrees to contribute an amount in addition to the compensation that the employee chooses to defer.
• DC SERP Defined Contribution
• the employer enters into an agreement with the employee, agreeing to make contributions to an account for the employee's retirement.
• the contributions to the plan are a set amount defined by the employer.
• DB SERP Defined Benefit
• the System provides an online plan design navigator that guides the user through almost every feature of plan design, dramatically simplifying the sales and selection process and making the product easier to understand for both the planner and the client.
• the Case Design will specify certain plan design parameters (for example, corporate and individual tax brackets, assumed mortality age, accounting method, and so on).
• the Case Design will function as a reusable template for generating and implementing multiple nonqualified benefit plans, each of which can be easily tailored to particular circumstances and needs.
• the System can provide the Case Design with recommended plan parameters based on input provided by the plan designer. It will allow the user to create and store multiple Case Designs online for each plan type customized for different scenarios.
• the System can allow the plan designer to create a "financial model," based on information entered during plan design, projecting the plan assets and liabilities for all plan years.
• the model summarizes funding scenarios of the plan with, for example, insurance products and/or taxable accumulation vehicles.
• the plan designer may also create customized plan presentation materials and documents for any of their designed plans.
• the plan designer may customize the grouping of participants within a plan by creating logical groupings of plan participants ("census groups") defined according to certain common attributes (such as the same age, vesting schedule, retirement age, benefit amount, or other common attribute).
• Each plan may contain more than one customized group of participants, and a participant within a plan might have membership in more than one customized group of participants associated with the same plan.
• the System allows the plan designer to create and maintain a repository of customized groupings of plan participants.
• the System simplifies the nonqualified plan implementation process.
• the System allows a plan sponsor to transfer the Case Design data to the online implementation process, thereby reducing the implementation time.
• the plan sponsor needs to specify only the implementation specific data (for example, plan effective date, allocation change frequency, and who will have viewing privileges), and may also modify any of the plan data recorded during the Case Design phase.
• the plan sponsor may also track the status of the plan online as it is being implemented.
• the System will facilitate the plan sponsor's access to optional legal services for the plan via an electronic connection to the company's law firm partner, and may utilize executable documents generated electronically through the System to accommodate the plan, thereby curtailing excessive legal costs.
• the System may also facilitate the plan sponsor's access, for example, to optional tax and accounting services via an electronic connection to the company's partners.
• the System can offer administrative services for the plan to the plan sponsor, alleviating the excessive cost of administering nonqualified benefit plans for companies with few plan participants.
• the System can facilitate access to information provided by financial institution partners on, for example, the various financial products that can be used to informally fund a plan, and may enable the plan sponsor to purchase any of the financial products available from distribution channel partners (that is, organizations of agents or a business entity in the business of distributing financial products) connected with the System.
• distribution channel partners that is, organizations of agents or a business entity in the business of distributing financial products
• the System can enable participants to view the performance of their accounts and the associated plan indices online (typically, mutual funds or fixed rate products are utilized as the "indices" for employee or employer contributions to participant accounts in, for example, a Defined Contribution or Deferred Compensation plan).
• the System enables the plan sponsor and planner affiliated with the plan, for example, to view the performance of a plan, individual participant accounts within the plan, and associated plan indices online.
• the plan sponsor can view the performance and information of any of the financial products available from the distribution channel partners.
• the System may provide an area for a distribution channel partner, for example, to list their financial products. It provides the necessary tools to maintain the information, track the product activity, and summarize competitors' products.
• the System will provide tools for an Auditor of a client corporation to audit the plans associated with the corporation.
• the life insurance policy underwriter may receive and review the policy application from a sponsor through the system. They may also use the system to notify the sponsor regarding the status of the policy.
• the System will provide a "Messaging Service,” which will allow users to communicate with other users of the system based on, for example, their Role in the system, the type of the user determining the list of potential recipients. For example, a participant may send a message to other participants associated with the same plan.
• Fig. 1 is a flow chart illustrating an exemplary method for constructing a Case Design for a nonqualified benefit plan.
• Fig. 2 is a flow chart illustrating an exemplary method for implementing a nonqualified benefit plan.
• Fig. 3 is a flow chart illustrating an exemplary method for logging into the system.
• Fig. 4 is a flow chart illustrating an exemplary method for requesting a user account from the system.
• Fig. 5 is a flow chart illustrating an exemplary method for creating a user account within the system.
• Fig. 6 is a flow chart illustrating an exemplary method for online viewing of the implementation status of a nonqualified benefit plan.
• Fig. 7 is a flow chart illustrating an exemplary method for viewing nonqualified benefit plan reports.
• Fig. 8 is a flow chart illustrating an exemplary method for viewing reports on life insurance policies that may be used to informally fund nonqualified benefit plans.
• Fig. 9 is a flow chart illustrating an exemplary method for accessing specific financial product information.
• Fig. 10 is a flow chart illustrating an exemplary method for consolidating the non-qualified plan design, implementation, and administration process into a centralized online application.
• Fig. 4 depicts an exemplary method 400 for requesting a user account from the system
• Fig. 5 illustrates an exemplary method 500 for creating a user account.
• the user account creation system allows for several distinct types of user accounts. Each user account type is intended to accommodate the needs of a specific category of potential user. For example, an employer who is sponsoring a non-qualified benefit plan would utilize a Plan Sponsor account (STEP 510), while an individual employee participating in a nonqualified benefit plan would utilize a Participant account. An insurance agent who wishes to use the system to design a nonqualified benefit plan for a client, for example, would utilize an Agent account (STEP 512).
• Each user account type would be associated with different roles within the system; that is, they would have specific privileges and capabilities. Roles might include, for example, such categories as “plan designer,” “plan administrator,” or “account creator.” Someone with a Plan Sponsor account or an Agent account, for example, would be associated with the "plan designer” role, and would be able to use the system to design a nonqualified benefit plan online. A user with a Participant account would not be associated with the "plan designer” role, and would not be able to design an account.
• an account creator must have an account of their own, as well as permission to create user accounts, in order to create a user account.
• the type of user account created can depend upon the role of the account creator. (STEP 410) This will allow, for example, Plan Sponsors to generate accounts for the employees participating in their nonqualified benefit plans (STEP 412), or, for example, Agents to create accounts for the Plan Sponsors that they are designing nonqualified benefit plans for (STEPS 414-416).
• the system will function as the account creator (STEP 514).
• the system will set the user classification list to Participant (STEP 516).
• the system will create a new user account for a Plan Sponsor with the username as the Plan Sponsor's email and a system-generated password (STEP 518). It also assigns default Plan Sponsor role(s), and associates the Plan Sponsor with Agent's specified distribution channel (that is, the organization of agents or business entity in the business of distributing financial products with which the Agent is affiliated).
• the system will create a new user account for an Agent (STEP 520), using the Agent's email address as the user name and providing a system-generated password. It also assigns default Agent role(s), and associates the Agent with a distribution channel.
• the system will display a list of roles to which the account can be assigned (STEP 522).
• the System Gatekeeper selects the role(s) for the account.
• the system will create a new user account with the account owner's email as the username and a system-generated password. It also assigns the specified role(s) to the account ' owner.
• the system will prompt the user to enter the desired User ID and password (STEP 524).
• the system will set the user classification list to Plan Sponsor.
• the system will determine the role of the account creator and set the user classification list accordingly.
• the system may prompt the user to provide user account information (STEP 526).
• the information requested can be tailored according to the type of user account being created. This will allow, for example, a Plan Sponsor to enter registration information (such as age or date of birth, salary, hire date, etc.) for the employees participating in the nonqualified benefit plan being designed, or, for example, an Agent to enter the associated distribution channel for a newly created Plan Sponsor account.
• the system will display information (STEP 530) such as the email address, username, and password for the newly created account, and prompt the account creator to indicate whether the system should notify the account owner that a new account has been created (STEP 528). If the account creator chooses to use the "Messaging Service," outlined below, the system can send a notification to the account owner (STEP 532) along with the user name and password.
• Fig. 3 represents an exemplary login process 300.
• Exemplary login and security steps are represented by STEPS 310-328 (STEP 330).
• STEPS 310-328 STEPS 310-328
• the system will present a series of editable fields in which the user will specify detailed registration data, which the system will then record (STEPS 332-336, 338-346).
• the detailed registration information may be provided in another way (for example, by completing an offline detailed registration form, or through downloading a detailed registration form in PDF or XLS format).
• the detailed registration data that is required can be determined according to specific user type.
• User type may include such categories as Plan sponsor (for example, the employer sponsoring the plan), Agent (for example, an insurance agent designing and selling a plan), or Participant (for example, an employee participating in a plan). See Appendix A for a description of some potential user types and their associated roles within the system.
• corporate-specific plan parameters for example, company tax bracket or company structure
• corporate-specific plan parameters can be recorded as part of the Plan Sponsor detailed registration. These corporate-specific plan parameters can then be provided as default values when the Plan Sponsor performs a Case Design (see below), thus simplifying the Case Design process.
• Table 1 For example, the information in Table 1 might be required of all users of the system. TABLE 1
• Company Structure - The company can be classified, for example, as Sole proprietorship, C corporation, S corporation, Partnership, Limited liability corporation or Not-for-profit.
• the additional information in Table 4 might be required.
• the fields labeled "read only" would contain information provided by the Participant's Plan Sponsor during the creation of the Participant account.
• Fig. 1 depicts a process 100 through which the Case Design System allows a Plan Sponsor to design a nonqualified benefit plan online. Before a plan's implementation, that plan is referred to as a "case.”
• a Case Design consists of a set of plan parameters that have not yet been implemented as an actual nonqualified benefit plan.
• the plan sponsor on accessing the Case Design System the plan sponsor will be presented with a list of their previously designed cases (if any have been designed) and given the option to modify their design (STEPS 110-116). The Plan Sponsor will also have the option to create a new Case Design.
• the system will display a list of the plan types available in the system — for example, Deferred Compensation, Deferred Compensation with Employer Match, Defined Contribution, or Defined Benefit — with accompanying plan type descriptions for each one (STEP 118).
• the Plan Sponsor will be prompted to select a plan type and to attach a "Case Name" to the plan type for future retrieval (STEPS 120-126).
• plan parameters might include information such as the following in
• Accounting method - Can be, for example, either FASB 87 or APB12
• the corporate data for the Plan Sponsor that has been recorded during the user registration process may also be displayed as default information where appropriate, and the Plan Sponsor can be prompted to modify or confirm this data (STEPS 128-130).
• the required plan parameter fields displayed can be customized according to plan type. For example, in the case of Defined Contribution, Deferred Compensation, and Defined Benefit plans, the following additional information in Table 7 might be requested.
• the system will record the plan parameter data entered by the user (STEP 132).
• the system can then present the user with a list of available "census groups" (if any have already been created by the user) and the option to create a new customized grouping of plan participants (STEPS 134-136).
• Pre-retirement Death Benefit type- options might include, for example, none, Endorsement Split Dollar, or Death Benefit Only.
• Additional information can be displayed appropriate to each plan type. For example, if the plan is Defined Contribution, additional fields might include those in Table 9.
• the user may modify the "census group” parameters (STEP 142). If the user chooses to create a new customized grouping of plan participants, the system can present the user with a form in which to enter the new customized group parameters, tailored to the plan type. When the user confirms the data, the system can record the "census group” data as part of the case data (STEP 144).
• each case or plan can have multiple customized groupings of participants associated with it, each with their own parameters.
• a participant within the plan can have membership in more than one customized participant group associated with the same plan.
• the system will display a form listing the participant registration data and some plan specific data (STEP 146).
• This data may include information such as in Table 12.
• Contribution This might be expressed as a fixed amount or as a percent of salary. This field would be relevant only in the case of a Defined Contribution plan.
• the system will also give the user options to, for example, remove a participant from the plan, edit a participant's information, or add a new participant to the plan (STEPS 148, 150-154).
• the system will record the participant information as part of the case data (STEP 156).
• the user can create and store multiple Case Designs for each plan type, each Case Design tailored to specific scenarios. The plan designer can than draw on any of these Case Designs when implementing a particular nonqualified benefit plan, alleviating the need to go through the Case Design process for each nonqualified benefit plan designed.
• the user is given the option of generating a "financial model" in order to prototype the Case Design and informal funding vehicles (STEP 158).
• a "financial model” that calculates and displays potential future plan liability and potential future value of informal funding vehicles for all plan years.
• the "financial model” will summarize, for example, scenarios of funding the plan with insurance products and/or funding the plan with taxable accumulation vehicles.
• the system may also generate sales presentation material consisting of a description of the plan type, composite "financial model,” individual participant “financial model,” and information related to the plan sponsor and participant (STEP 162).
• the system can also present a summarization of the plan attributes (STEP 160).
• Participant Imputed Income (calculated only when the case contains a pre retirement life insurance benefit to the participants)
• Participant After-tax Cost (calculated only when the case contains a pre retirement life insurance benefit to the participants)
• the System will determine whether the Case is associated with any insurance carrier-specific illustration engine. If the Case is associated with a particular insurance carrier illustration engine, the System will invoke that illustration engine. The system will capture the data in Table 17 from the illustration engine.
• the System determines that the Case is not associated with an insurance carrier specific illustration engine, the System will use a generic illustration engine to calculate the values in Table 18 for all plan years.
• the System will then generate the financial model package. It may contain sections such as the described below.
• This section contains the following information. In the case of a census group level assumption, the information will be listed for each group.
• Vesting Schedule This information would only be displayed for Defined Contribution and Deferred Compensation with Employer Match Plans. Vesting Schedule is applicable only to Employer contributions.
• Life Insurance Benefit - It can be a Pre-Retirement life insurance benefit or a death benefit option benefit.
• death benefit option benefit the beneficiary of the participant has to pay the taxes and the company can deduct the amount from the company earnings.
• Pre-Retirement life insurance benefit the payments are non-taxable and the company cannot deduct the payment amount from the company earnings. This is displayed for each participant.
• Taxable Accumulation Vehicle (TAV) rate This is the corporation's total after tax cash flow resulting from the plan and its informal funding.
• Chart-Plan Summary and Informal Funding Summary This section contains a Graphical representation of data in Table 42 over life of the plan.
• Plan Implementation Fig. 2 provides an illustration of an exemplary method 200 for performing the online implementation of a nonqualified benefit plan.
• the Plan Implementation System greatly simplifies the process of implementing a nonqualified benefit plan.
• plan sponsor accesses the Plan Implementation System online the system will provide the plan sponsor the option of creating a new Case Design (as explained above) or of implementing one of the existing Case Designs associated with the plan sponsor (STEPS 210-214).
• the system will utilize the already-recorded design data in the implementation process.
• the plan sponsor will need to specify only the implementation-specific data.
• the implementation-specific data may be tailored according to the plan type of the plan being implemented. This implementation specific data may include information such as in Table 43.
• Deferral amount indicator - This field will indicate whether the deferral amount includes only salary or both salary and bonus. This field would be applicable, for example, to Deferred Compensation plans.
• this field can is specified as a percentage. This field is applicable, for example, to Defined benefit plans
• Agent Viewable By default, the agent has read-only access to the implemented plan.
• the plan sponsor may, however, specify that the agent not have read-only access to the implemented plan.
• Allocation change frequency This field indicates how often allocations to funds can be changed.
• the value can be set to default, for example, to "daily".
• the user may also change the frequency, for example, to one of the following values:
• the allocation frequency will be the same for current allocations and future contributions as well as employer and employee funds. This field is applicable, for example, to Defined Contribution and Deferred Compensation plan with Match
• the plan sponsor may also be given the opportunity to modify the existing plan data, recorded during the Case Design phase (as explained above) (STEPS 218- 222).
• the system will display a list of those Case Designs associated with the plan sponsor and prompt the user to select a Case Design to implement (STEPS 214-216).
• the system will check whether the plan sponsor has previously signed the client engagement letter with the Company (STEP 224). If the user has not previously signed the client engagement letter with the Company, they can be prompted to choose whether or not they want to use the Company's plan administration services (STEP 226-228).
• the user may implement the plan without first having chosen to use the Company's plan administration services.
• the system will display the Client Engagement Letter and, in the preferred embodiment, prompt the user to execute the letter with an electronic signature.
• the user may print the engagement letter and return a signed copy to the Company.
• the system will display the design parameters associated with the selected case (STEP 218).
• the user will be given the option to modify the Case Design parameters before implementing the plan (STEP 220).
• the system will check the plan type of the case to be implemented (STEP 230). For certain plan types, the system can prompt the user for further information.
• plan sponsor can be prompted to select the "plan indices" (that is, the financial products that will be made available to plan participants. (STEP 232) These might be, for example, mutual funds or fixed-rate products). These plan indices can be selected for each of the "census groups" affiliated with the plan (STEP 234).
• the system may display a message to the user explaining the default allocation change frequencies for current and future contributions and for the employer match, and will prompt the user to indicate whether they want to customize the allocation frequencies for the selected group (STEP 236). If the participants in the "census group" are allowed to change allocations and employer match, the user will be provided the opportunity to specify the allocation change frequency for current and future allocations and employer match (STEPS 238-246).
• plan sponsor For each plan participant within the selected "census group" who has an existing user account, the plan sponsor will be prompted to create a plan participant account (STEPS 250-252). The plan sponsor will also be given the opportunity to create user accounts for plan participants, which will in turn allow the plan sponsor to create a participant account for the participant (STEPS 250, 254).
• the system will present the plan sponsor with an online form in which to enter required participant data. Certain additional participant data may be required depending on the plan type. If the plan type is Deferred Compensation, for example, the plan sponsor will be prompted to specify the participant's maximum allowable contribution to the plan (STEPS 256-258). In one embodiment, for all plan types, the plan sponsor will be prompted to specify whether disability payout is to be offered to participants in the plan (STEP 260). When the user enters and confirms the participant data, a participant account will be created and the participant will be added to the plan.
• the user is given the option of using the legal services of the Company's law firm partner(s), access to which is facilitated via an electronic link to the law firm partner(s) (STEP 262). If the user decides not to access legal services provided by the Company's law firm partner(s), the system will inform the user that they will need to provide the Company with their legal documents in order to proceed with plan implementation (STEP 264).
• the system will generate executable documents necessary for the implementation of the plan, which may include such documents as a participant overview, Department of Labor letter, and participation letter agreement (STEPS 268- 274). Certain plan documents will be generated for particular plan types (STEPS 278- 284). If the user has decided to access the legal services of the Company's law firm partner(s), the system will generate a legal plan document in addition to the other plan documents (STEPS 268-272, 276-284). In the preferred embodiment, the system will give the user the option of either downloading the plan documents as PDFs or having the plan documents emailed to them.
• Fig. 6 demonstrates a preferred method 600 for viewing the implementation status of a benefit plan online.
• plan sponsor or any user with viewing privileges for the plan, will have the ability to view plan implementation status for all plans associated with the user (STEP 610).
• view plan implementation status the system will display a list of those plans associated with the user that are in the implementation process (STEPS 612-614).
• the system may also provide an option to implement a new plan.
• the user selects an individual plan the system will display the status of the various documents required for the implementation of that plan (STEPS 616-618).
• the system may provide a link to view the implementation status of each individual plan participant as well (STEPS 620-622).
• the form may also contain the sections in Table 45. Each section might have an enumeration of all applicable statuses and (if applicable) the status completion date. The data would be provided to the viewer for informational purposes only and cannot be modified. TABLE 45
• Participant Asset allocation form - applicable statuses are 'Prepared' and 'Sent' Participant beneficiary form - applicable statuses are 'Prepared' and 'Sent'
• Participant deferral election form - applicable statuses are 'Prepared' and 'Sent'
• Participant agreement letter - applicable statuses are 'Prepared', and 'Sent'
• Participant overview material - applicable statuses are 'Prepared', 'Sent' and 'Approved'
• a separate interface would allow an internal user of the system to update the implementation status for each of the above sections for each plan under implementation. Messaging
• the Messaging System allows users of the system to easily communicate with other users of the system.
• the system allows users who have an active user account and have completed the detailed user registration to send secure encrypted messages to other users of the system.
• the system can record information such as the date/time, subject, and body of the message as part of the audit trail.
• the range of potential recipients of the email can be determined according to the user's role in the system, as outlined below.
• the Table 46 lists various potential user account types and their potential message recipients. It will be understood that this list is intended simply as an example of the possible range of user account types and recipients.
• Plan Sponsor can send a message to all participants in a specified plan
• Distribution Channel Gatekeeper can send a message to all users within the Distribution Channel
• Gatekeeper can send a message to all active users
• the user will also be able to view unread and previously read messages addressed to the user, and will be able to reply to or delete received messages.
• the Account Management System will allow plan participants to view the performance of their participant accounts and the plan indices (for example, mutual funds or fixed-rate financial products) associated with those accounts.
• the system will be able to generate a participant statement detailing all account transactions recorded by the system for a date or date range specified by the user. In one 15 embodiment, this participant statement can be displayed online.
• the information displayed in the participant statement can be determined according to plan type.
• an exemplary embodiment of the participant statement might adhere to the following format.
• Table 51 The following values in Table 51 would be listed for each Sub-Account in the selected Participant account grouped by employee and employer contributions. The values displayed could be based on the type of the Plan. The contributions grouped by "employee” would be displayed, for example, only in case of Deferred Compensation plan with/without match. The contributions grouped by "employer” type would be listed, for example, only in case of Defined Contribution plan and Deferred Compensation plan with match. TABLE 51
• the Account Management System will allow a plan participant to change current and future allocations to the various available plan indices (for example, mutual funds or fixed-rate financial products) at any time. If the user chooses to reallocate existing balances, the system can determine that the user currently has allocation requests waiting to take effect on the next reallocation date. In the preferred embodiment, the system will display the allocation amounts in percentage form. It will display information such as the next reallocation date, a link to reallocate funds by whole value amounts, an option to "re-balance" the account, the date when the current percentages took effect, and the date when the new percentages were last modified.
• the system will display all active sub-accounts in the plan, listing information such as current dollar amount allocated to the sub-account, current percentage of employee total amount, new percentage of employee total amount, and any unallocated amount. Additional information may be displayed depending on the plan type. For example, in the event that the participant is associated with a deferred compensation with match plan, the system can display additional information on employer match amounts.
• the system will display the next reallocation date based on the reallocation frequency selected by the plan sponsor during the plan implementation process, the date when the current percentages took effect, and the date when the new percentages were last modified.
• the system will list each active sub-account in the plan, displaying the current percent of total employee contributions, the new percent of total employee contributions (if the user has current reallocations that are yet to take effect, the system will retrieve and display those values).
• the system will display additional information on employer match amounts.
• the system can display the values in editable or non-editable fields.
• whether values are displayed in editable or non-editable fields will depend on what the plan sponsor has chosen when setting the plan implementation parameters.
• the user may modify any of the editable fields.
• the system will save the new allocation amounts.
• the system will allow a plan sponsor to reallocate current and future account allocations for any participants associated with a plan associated with the plan sponsor.
• Fig. 9 illustrates an exemplary method 900 for facilitating access for plan sponsors, agents, and customer service representatives to information provided by the company's financial institution partners on the various financial products that can be used to fund a plan.
• This information might include plan information available on an insurance carrier's site, the product prospectus, information relating to service representatives, and so on. By making this information readily accessible in a central location, the system greatly enhances the ease with which users of the system can maintain and administer their plans.
• the system displays a list of links to product-specific pages on the various carrier web sites (STEPS 912-916).
• the list of links displayed can be determined according to the individual user's role. For example, if a user is associated with a particular distribution channel, the links displayed can be limited to those that have been associated with that distribution channel.
• the system when the user selects one of these links the system will display the requested page in a pop-up window while remaining on the Company web page (STEPS 918-922).
• the user can be transferred directly to the requested page.
• the links displayed when the user chooses to view available product information can transfer the user to product-specific information maintained on the Company's website (STEPS 924- 926).
• the user may also view the performance of available product indices (for example, selected mutual funds or fixed rate products) (STEPS 928-930). These product indices might be broken down, for example, according to categories similar to those in Table 56. TABLE 56
• the system can display the report for a default date (for example, the current date when accessed).
• the system can also allow the user to set an alternate date for the report (STEPS 932-936).
• the system can also, for example, provide the user with a link to view the most recent investment sector report for the selected indices (STEP 938).
• This investment sector report may be provided by a third-party or may be produced and maintained on the Company's website (STEP 940).
• the system will provide an area for the company's financial partners to list their available financial products. Access to this area can be restricted according to the individual users role in the system (for example, access can be limited to plan sponsors, agents and customer service representatives).
• the system will also facilitate access to an independent third party's tool to maintain the information, track the product activity, and summarize competitors' products.
• the system will allow the plan sponsor to purchase any of the financial products available through the financial partners.
• the system will allow that policy underwriter to receive and review the policy application from the sponsor online.
• the policy underwriter can receive and review the policy application via email.
• the policy underwriter will also be able to use the Messaging system to notify the plan sponsor regarding the status of the policy.
• Plan and Policy Reports
• Fig. 7 and 8 present an exemplary methods 700 and 800 for accessing one or several plan and policy reports.
• the system will enable the user to select the reports they wish to view and, in the preferred embodiment, choose whether to view them online or have them emailed as PDF documents (STEPS 710-716, STEPS 810-816).
• the system will allow a user to view a series of plan and policy reports detailing the performance of a plan, individual participant accounts within a plan, and associated plan indices. Access to this information can be restricted according to user type. For example, access to these reports can be limited to plan sponsors, agents, and customer service representatives.
• the user will be able to specify a date or date range for the desired plan or policy reports, which the system will subsequently generate.
• the user will be able to select from an archive of previously generated plan or policy reports (STEP 714, STEP 814).
• the list of available reports may vary according to plan type.
• the associated plan reports might include a
• the associated plan reports might include a Participant Deferral & Allocation Summary, a Plan summary, and a Participant Statement Summary.
• Potential policy reports might include a Policy Detail Report, a Policy Summary Report, an Aggregate Plan and Policy Allocation Report, a Policy Allocation Report, or others (see Appendix B for samples of potential plan and policy reports). 5 Auditing
• the system will provide on-line tools for an Auditor of a client corporation to audit the plans associated with the client corporation.
• An Auditor user account may be created by a Gatekeeper associated with the client company, and will automatically be affiliated with the client company.
• a System Gatekeeper can also create an Auditor user account and assign a company affiliation to that account.
• An Auditor user account would allow its user to view any plan, product or marketing information in the system affiliated with the client company.
• the Auditor account would not be privileged to modify any part of the system.
• the system will contain Auditor-specific interfaces providing the user with ease of access to plan, product, and marketing information for their affiliated client company.
• Fig. 10 depicts an exemplary method 1000 for consolidating the non-qualified plan design, implementation, and administration process into centralized online
• the process is initiated when a user whose role privileges authorize them to design a Plan logs into the system. (STEP 1010) If the user wishes to design a Plan, the user first selects one of a limited number of Plan Types. (STEP 1012) Depending on the Plan Type selected, the System may
• plan design parameters automatically supply certain plan design parameters and prompt the user to supply additional design information appropriate to the selected plan type.
• additional design information might consist, for example, of corporate and individual tax brackets, assumed mortality age, accounting method, and so on.
• the user may also be able to enter information pertaining to the potential participants in the plan, and, in the
• the system may be able to organize the plan participants into various groupings within the plan according to certain common attributes (such as retirement age, salary, and so on).
• the system will make a generic illustration system available to the user, allowing the user to generate a financial model projecting potential future assets and liabilities of the plan as designed. (STEP 1016)
• the system will provide a link to the illustration systems of various outside companies, allowing the user to utilize those illustration systems to project potential future assets and liabilities of the plan as designed.
• plan design information can then function as a reusable template for generating and implementing multiple nonqualified benefit plans, and in the preferred embodiment may be tailored on implementation to meet specific circumstances and needs.
• the user may do so by selecting a previously designed plan template and initiating the implementation process.
• the system may prompt the user to provide a limited amount of additional, implementation-specific information (for example, plan effective date, allocation change frequency, or other data).
• the user may be given the option to modify data previously provided during the design process. Incorporating information provided by the user during implementation, the System may, in the preferred embodiment, automatically generate executable implementation documents tailored to the plan.
• the System may enable the ongoing on-line administration of the plan according to the parameters specified and recorded during the design and implementation phases.
• the System may, for example, allow plan participants access to view the performance of their individual accounts and associated plan indices on-line, while allowing plan sponsors to view the performance of the plan as a whole, individual participant accounts, and associated plan indices.
• the System may also allow plan sponsors or participants to track the performance of and compare various financial products that might be used to informally fund the plan.
• the System may also, for example, enable the plan sponsor to purchase any of the financial products available from financial institutions connected with the System.
• the System may allow plan sponsor and participants to change the current and future allocations of funds associated with the plan at any time online, and, in certain embodiments, communicate that information with those financial institutions associated with the System.
• STEP 1038 The System may, for example, allow plan participants access to view the performance of their individual accounts and associated plan indices on-line, while allowing plan sponsors to view the performance of the plan as a whole, individual participant accounts, and associated
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• 2001
  • 2001-09-07 WO PCT/US2001/028065 patent/WO2002095647A2/fr active Application Filing

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