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US 7,885,837 B1Granted
Pension Insurance Program Methods and Systems
AssigneePentech, LLC
InventorJohn A. Martin
Life of this patent
Estimating the term…
Abstract
A pension insurance plan system and method protect the outstanding balance of a defined contribution plan loan secured by participant's plan assets, eliminating adverse tax consequences to the plan beneficiary in the event of the death or disability of the participant and ensuring that the full plan account balance passes intact to beneficiary in such event.
Claims33
A computer-implemented method for administering a premium, the method comprising:
- providing a debt mitigation strategy to a plan sponsor or a plan administrator of a retirement plan,
- wherein the plan sponsor or plan administrator amends a plan document to require a debt mitigation strategy as a condition of a plan loan;
- wherein a participant has a retirement account in the retirement plan,
- wherein the participant takes a loan from the assets of the retirement account and the plan loan is collateralized by the remaining assets in the retirement account, and
- wherein the debt mitigation strategy insures a participant's plan loan against non-repayment in the event of occurrence of a risk event subjecting the plan loan to potential default for non-repayment;
- calculating, by a computer, the consideration for the debt coverage based upon the outstanding balance of the plan loan and a state of domicile of the retirement plan issuing the plan loan;
- calculating, by the computer, a repayment schedule for the loan, wherein the repayment schedule reflects the consideration to be charged on a periodic basis to a payroll account of the participant or a participant's retirement account, based upon a choice by the plan sponsor or the plan administrator;
- billing, by a computer, periodically until the plan loan is repaid in full;
- and
- collecting, by a computer, the consideration from the participant and maintaining on a computer a data structure regarding the collection of the consideration for insurance, self insurance, or debt cancellation agreements through the debt mitigation strategy,
- wherein, in the event of a risk event, the assets in the retirement account are preserved for the benefit of a beneficiary of the retirement account for rollover into another tax deferred retirement account or distribution to the beneficiary.
8 more elements
A system for administering a pension plan program, the system comprising:
- means for providing an insurance policy to a plan sponsor for protecting assets in a retirement account of a participant in the pension plan program,
- wherein the pension plan program has a plan, a plan sponsor, a plan administrator, a plan trust, or a trustee,
- wherein the plan, plan sponsor, plan administrator, plan trust, or trustee is a holder of a pension debt coverage insurance policy issued to the plan for the benefit of its insured participants,
- wherein the participant holds a certificate of insurance evidencing coverage under the insurance policy,
- wherein the retirement account assets serve as collateral for a plan loan to the participant, and
- wherein the insurance policy protects against a risk event subjecting the plan loan to potential non-repayment default;
- means for ensuring that the participant secures a policy as a condition to receiving the plan loan from the retirement account;
- means for administering an account for receiving premiums due in connection with the insurance policy;
- and
- means for servicing the plan loan from the retirement account of a pension plan program.
7 more elements
A computer-implemented method for administering a pension plan, the method comprising:
- providing an insurance policy for protecting assets in a retirement account of a plan participant in the pension plan,
- wherein a plan, a plan sponsor, a plan trust, or a trustee is a holder of the insurance policy,
- wherein the retirement account assets serve as collateral for a plan loan from the retirement account to the plan participant, and
- wherein the insurance policy protects against a risk event subjecting the plan loan to potential non-payment default;
- ensuring that the plan participant secures insurance as a condition for the plan loan;
- administering on a computer an account for billing and receiving premiums due in connection with the policy;
- and
- servicing the participant plan loan.
5 more elements
Dependencies are inferred from the claim text.