US5590037A
Expired / Lapsed
US
⏱️ 0.0 years remaining
Digital computer system and methods for computing a financial projection and an illustration of a prefunding program for an employee benefit
Assignee: Hartford Fire Insurance Co
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Filing: 1993-09-17
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Granted: 1996-12-31
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Expires: 2013-09-17
Abstract
Abstract In a system and methods for using a data processing system including a programmed electrical digital computer having a processor electrically connected to an input device and to an output device, generating financial projections and an illustration of an employee benefit program. The digital computer performs the steps of processing input data, including a financial forecast for a life insurance contract and further including a financial forecast for an employee benefit, to generate processed data including an illustration representing the life insurance contract encumbered by an indenture agreement as a means of prefunding for future employee benefits. The digital computer is programmed to provide financial analytical data, incorporating the requirements of a Financial Accounting Standards Board standard, such as Statement 87, 106, 112, or the like, for use in evaluating the use of life insurance as an investment in connection with an indenture plan for prefunding benefit liabilities.
Inventors
- 👤 Raymond B. Ryan
- 👤 Noah F. Gans
Bibliographic Details
Application Number
—
Jurisdiction
US
Data Source
google_patents
Last Synchronized
2026-11-05 20:58
CPC Classifications
G; G06; G06Q; G06Q40/00; G06Q40/02; G06Q40/08; G06Q40/10; G06Q40/12
Claims Analysis
Total Claims: 45
Claim 1
Independent Claim
179 words
A method implemented on a machine comprising an electrical digital computer having a processor programmed to electrically process input data into output data, the digital computer being electrically connected to a keyboard and to a printer, the method comprising the steps of: entering a first forecast of an employee benefit at the keyboard to convert the entered first forecast into a portion of the input data that is electrically conveyed to the digital electrical computer to electrically process; entering a second forecast of a segregated and restricted investment subject to an indenture agreement at the keyboard to convert the entered second forecast into an other portion of the input data that is electrically conveyed to the digital computer to electrically process; engaging the digital computer to process the input data add to generate the output data that is electrically conveyed to the printer, the output data representing an illustration of the segregated and restricted investment subject to an indenture agreement providing prefunding for the employee benefit; and printing said illustration at the printer from the electrically conveyed output data.
Claim 2
Independent Claim
179 words
A method implemented on a machine comprising an electrical digital computer having a processor programmed to electrically process input data into output data, the digital computer being electrically connected to a keyboard and to a printer, the method comprising the steps of: entering a first forecast of an employee benefit at the keyboard to convert the entered first forecast into a portion of the input data that is electrically conveyed to the digital electrical computer to electrically process; entering a second forecast of a segregated and restricted investment subject to an indenture agreement at the keyboard to convert the entered second forecast into an other portion of the input data that is electrically conveyed to the digital computer to electrically process; engaging the digital computer to process the input data add to generate the output data that is electrically conveyed to the printer, the output data representing an illustration of the segregated and restricted investment subject to an indenture agreement providing prefunding for the employee benefit; and printing said illustration at the printer from the electrically conveyed output data.
Claim 3
Dependent Claim
19 words
The method of claim 1, wherein said steps are carried out with said investment including a life insurance contract.
Claim 4
Dependent Claim
62 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute the prefunding as applied to accrued liabilities and expense charges pursuant to a Financial Accounting Standards Board accounting standard, the computed prefunding being a portion of the output data.
Claim 5
Dependent Claim
76 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute the prefunding as applied to accrued liabilities and expense charges in accordance with Employers' Accounting for Postemployment Benefits accounting standards prescribed in Financial Accounting Standards Board Statement of Financial Accounting Standard Number 112, the computed prefunding being a portion of the output data.
Claim 6
Dependent Claim
79 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute the prefunding as applied to accrued liabilities and expense charges in accordance with Employers' Accounting for Postretirement Benefits Other Than Pensions accounting standards prescribed in Financial Accounting Standards Board Statement of Financial Accounting Standards Number 106, the computed prefunding being a portion of the output data.
Claim 7
Dependent Claim
66 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute the prefunding as applied to accrued liabilities and expense charges in accordance with Employers' Accounting for Pensions accounting standards as prescribed in Financial Accounting Standards Board Statement of Financial Accounting Standard Number 87.
Claim 8
Dependent Claim
73 words
The method of claim 2, further comprising the step of: entering book expense, accrued book liability, premium for insurance, death benefit, and year-end cash value for the insurance at the keyboard so as to convert the book expense, accrued book liability, premium for insurance, death benefit, and year-end cash value for the insurance into a further portion of the input data that is electrically conveyed to the digital electrical computer to electrically process.
Claim 9
Dependent Claim
25 words
The method of claim 7, wherein: the output data and the printed illustration both include a savings per share amount computed from the input data.
Claim 10
Dependent Claim
26 words
The method of claim 7, wherein: the output data and the printed illustration both include an internal rate of return amount computed from the input data.
Claim 11
Dependent Claim
27 words
The method of claim 7, wherein: the output data and the printed illustration both include a savings per share amount computed from the input data with borrowing.
Claim 12
Dependent Claim
24 words
The method of claim 7, wherein: the output data and the printed illustration both include a liability offset amount computed from the input data.
Claim 13
Dependent Claim
28 words
The method of claim 7, wherein: the output data and the illustration both include after tax cash flow, earnings, and balance sheet amounts computed from the input data.
Claim 14
Dependent Claim
72 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute NBL t =BL t -MVA t , wherein NBL represents annual net book liability, BL represents accrued book liability, MVA represents a market related value of assets or similar book value of assets, and t represents a time period.
Claim 15
Dependent Claim
62 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute PL t =IBT t +TB t , wherein PL represents profit and loss effect, IBT represents income before taxes, TB represents tax benefit and t represents a time period.
Claim 16
Dependent Claim
49 words
The method of claim 14, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute EPS t =PL t /*SO, wherein EPS represents earnings per share and *SO represents shares outstanding.
Claim 17
Dependent Claim
84 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute CFI t =CO t +TS t +AMTE t +AMTAS t , wherein CFI represents after-tax cash flow with insurance, CO represents corporate before-tax cash outlay, TS represents tax savings, AMTE represents alternative minimum tax rate effect, AMTAS represents an alternative minimum tax rate amortization schedule, and t represents a time period.
Claim 18
Dependent Claim
65 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute ##EQU10## wherein CV represents year-end cash value of the life insurance contract, II represents incremental investment, III represents internal rate of return, r represents a rate, and t represents a time period.
Claim 19
Dependent Claim
62 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute SB.sub.t =PLB.sub.t -ATFE.sub.t, wherein SB represents savings with borrowing, PLB represents profit and loss with plan and borrowing, ATFE represents after-tax Statement 106 expense, and t represents the year.
Claim 20
Dependent Claim
51 words
The method of claim 2, wherein: the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute SPSB t =SB t /*SO, wherein SPSB represents savings per share with borrowing and *SO represents shares outstanding.
Claim 21
Independent Claim
24 words
The method of any one of claims 1 or 2-19, wherein said steps are carried out with said investment being restricted to spendthrift settlement.
Claim 22
Independent Claim
40 words
The method of any one of claims 1 or 2-19, wherein said steps are carried out for payment of death benefits pursuant to the life insurance contract limited to an amount equal to a paid obligation of the employee benefit.
Claim 23
Dependent Claim
37 words
The method of claim 2, wherein said steps are carried out for death proceeds payable to a corporation owner of said insurance contract, but limited to Other Postretirement Employee Benefit pay-as-you-go costs incurred during a time period.
Claim 24
Dependent Claim
80 words
The method of claim 22, wherein said steps are carried out for death benefits and any other withdrawals and distributions from the insurance contract in the time period as not exceeding the Other Postretirement Employee Benefit pay-as-you-go costs during the same time period, with any excess amount retained by a carrier and paid out in accordance with a spendthrift insurance settlement clause so that payments from the insurance contract can only be applied toward the Other Postretirement Employee Benefit costs.
Claim 25
Dependent Claim
51 words
The method of claim 22, wherein said steps are carried out for the indenture agreement requiring that the indenture agreement shall terminate in the event that Other Postretirement Employee Benefit liability is completely settled, the employee benefit is terminated by the corporation, or government assumes the responsibility for paying the benefits.
Claim 26
Dependent Claim
51 words
The method of claim 22, wherein said steps are carried out such that income from at least one insurance contract and excess amounts are recorded for book accounting purposes using an expected long term rate of return pursuant to paragraph 57 of the Financial Accounting Standards Board Accounting Standard No. 106.
Claim 27
Dependent Claim
32 words
The method of claim 22, wherein said the second forecast includes a periodic series of death benefits, cash surrender values, partial policy surrenders, and after-tax cash surrender values of the insurance contract.
Claim 28
Dependent Claim
23 words
The method of claim 2, wherein the steps are carried out for the life insurance contract being an individual variable life insurance contract.
Claim 29
Dependent Claim
23 words
The method of claim 2, wherein the steps are carried out for the life insurance contract being a group variable life insurance contract.
Claim 30
Dependent Claim
41 words
The method of claim 2, further comprising the step of computing with said digital computer a tax on the investment income from excess amounts retained by the carrier and which income and tax is included in a net periodic expense computation.
Claim 31
Dependent Claim
63 words
The method of claim 2, further comprising a step of computing with said digital computer a book tax accrual by treating death proceeds paid and cash value increases pursuant to the insurance contract as income included in a net periodic expense computation, but the death proceeds and cash value growth from the insurance contract being exempt from taxation for book tax accounting purposes.
Claim 32
Dependent Claim
49 words
The method of claim 2, further comprising a step of computing with said digital computer a difference for book tax accounting purposes measured by comparing Other Postretirement Employee Benefit pay-as-you-go costs to Statement 106, accrued Other Postretirement Employee Benefit cost for service, interest, and amortization of a transition obligation.
Claim 33
Dependent Claim
70 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on predefined assumptions, and wherein said assumptions include census data, and wherein said first forecast includes values representing active employees, retirees, percentage of retirees with dependent coverage, and census type used in said step of processing.
Claim 34
Dependent Claim
149 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include termination rates, disability rates, retirement rates, and mortality rates, wherein said termination rates represent rates at which members of an employee population subject to the employee benefit leave a company providing the employee benefit prior to retirement, turnover, termination, and other reasons not relating to disability or retirement, and wherein said disability rates represent rates at which segments of the employee population become disabled and are no longer able to work, and wherein said retirement rates represent rates at which the employee population retires, by age group, and wherein said mortality rates represent a number of deaths per 1,000 lives, by the age group for the employee population.
Claim 35
Dependent Claim
46 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include a medical cost inflation rate.
Claim 36
Dependent Claim
92 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include a medical cost discount rate and a pre-tax corporate borrowing rate are displayed, wherein said medical cost discount rate is used in the first forecast of Other Postretirement Employee Benefits liability, and wherein said pre-tax corporate borrowing rate represents a rate at which a corporation providing the employee benefit can borrow.
Claim 37
Dependent Claim
130 words
The method of claim 35, wherein the step of engaging the digital computer to process input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute in response to a selection entered at the keyboard, the selection being made from an option selectable to recognize the Other Postretirement Employee Benefits costs immediately such that the transition obligation is written off in one year, or to delay recognition of Other Postretirement Employee Benefit costs such that the transition obligation is amortized on a straight-line basis over an average remaining service period of those covered by the employee benefit, except where the average remaining service period is less than 20 years, in which case the option is also selectable to recognize a 20 year amortization period.
Claim 38
Dependent Claim
69 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include a Taxable Trust tax rate, a corporate tax rate, an earnings rate in said insurance contract, and an earnings rate for amounts not held in an insurance contract.
Claim 39
Dependent Claim
47 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include an amount of death benefits reinvested.
Claim 40
Dependent Claim
58 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include average pre-65 and average post-65 health care costs for an employee population covered by said employee benefit.
Claim 41
Dependent Claim
52 words
The method of claim 2, wherein the step of engaging the digital computer to process the input data that is electrically conveyed to the digital computer includes engaging the digital computer to compute based on assumptions, and wherein said assumptions include an amortization period of the Other Postretirement Employee Benefits transition obligation.
Claim 42
Dependent Claim
198 words
An electrical digital computer machine, the apparatus comprising: an electrical digital computer having a processor programmed to electrically process input data into output data, the digital computer being electrically connected to a keyboard and to a printer; wherein said electrical digital computer and said processor are operating pursuant to a program: to enable entering a first forecast of an employee benefit at the keyboard to convert the entered first forecast into a portion of the input data that is electrically conveyed to the digital electrical computer to electrically process; to enable entering a second forecast of a segregated and restricted investment subject to an indenture agreement at the keyboard to convert the entered second forecast into an other portion of the input data that is electrically conveyed to the digital computer to electrically process; and to enable engaging the digital computer to process the input data that is electrically conveyed to the digital computer and generate the output data that is electrically conveyed to the printer, the output data representing an illustration of the segregated and restricted investment subject to an indenture agreement providing prefunding for the employee benefit; and to enable the printer to print said illustration.
Claim 43
Dependent Claim
198 words
An electrical digital computer machine, the apparatus comprising: an electrical digital computer having a processor programmed to electrically process input data into output data, the digital computer being electrically connected to a keyboard and to a printer; wherein said electrical digital computer and said processor are operating pursuant to a program: to enable entering a first forecast of an employee benefit at the keyboard to convert the entered first forecast into a portion of the input data that is electrically conveyed to the digital electrical computer to electrically process; to enable entering a second forecast of a segregated and restricted investment subject to an indenture agreement at the keyboard to convert the entered second forecast into an other portion of the input data that is electrically conveyed to the digital computer to electrically process; and to enable engaging the digital computer to process the input data that is electrically conveyed to the digital computer and generate the output data that is electrically conveyed to the printer, the output data representing an illustration of the segregated and restricted investment subject to an indenture agreement providing prefunding for the employee benefit; and to enable the printer to print said illustration.
Claim 44
Independent Claim
229 words
A method for making a machine comprising an electrical digital computer operating pursuant to a program, the method comprising the steps of: providing a data processing system comprising an electrical digital computer having a processor programmed to electrically process input data representing a first forecast of an employee benefit and a second forecast of a segregated and restricted investment subject to an indenture agreement into output data including an illustration, the digital computer being electrically connected to a keyboard and to a printer, and the processor being programmed such that in response to (1) entering said first forecast of an employee benefit at the keyboard to convert the entered first forecast into a portion of the input data that is electrically conveyed to the digital electrical computer to electrically process; (2) entering said second forecast of a segregated and restricted investment subject to an indenture agreement at the keyboard to convert the entered second forecast into an other portion of the input data that is electrically conveyed to the digital computer to electrically process; and (3) engaging the digital computer to process said electrically conveyed input data and to generate the output data that is electrically conveyed to the printer, the output data representing an illustration of the segregated and restricted investment subject to an indenture agreement providing prefunding for the employee benefit, the printer will print said illustration.
Claim 45
Independent Claim
229 words
A method for making a machine comprising an electrical digital computer operating pursuant to a program, the method comprising the steps of: providing a data processing system comprising an electrical digital computer having a processor programmed to electrically process input data representing a first forecast of an employee benefit and a second forecast of a segregated and restricted investment subject to an indenture agreement into output data including an illustration, the digital computer being electrically connected to a keyboard and to a printer, and the processor being programmed such that in response to (1) entering said first forecast of an employee benefit at the keyboard to convert the entered first forecast into a portion of the input data that is electrically conveyed to the digital electrical computer to electrically process; (2) entering said second forecast of a segregated and restricted investment subject to an indenture agreement at the keyboard to convert the entered second forecast into an other portion of the input data that is electrically conveyed to the digital computer to electrically process; and (3) engaging the digital computer to process said electrically conveyed input data and to generate the output data that is electrically conveyed to the printer, the output data representing an illustration of the segregated and restricted investment subject to an indenture agreement providing prefunding for the employee benefit, the printer will print said illustration.
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USPTO Annuity & Maintenance Windows
| Annuity Stage | Window Opens | Payment Deadline | Surcharge Period Until | Estimated Fee | Status |
|---|---|---|---|---|---|
| 3.5 Years (Year 4) | 1999-12-31 | 2000-07-01 | 2000-12-31 | $2000.00 | Window Closed / Lapsed |
| 7.5 Years (Year 8) | 2003-12-31 | 2004-07-01 | 2004-12-31 | $3760.00 | Window Closed / Lapsed |
| 11.5 Years (Year 12) | 2007-12-31 | 2008-07-01 | 2008-12-31 | $7700.00 | Window Closed / Lapsed |