Patent ID: 6275807
Filing Date: 2001-08-14
Classification: G06Q

Abstract:
A method for determining a progression of payments from a variable annuity comprising the steps of:computing a first actuarial present value of said annuity assuming a first pricing interest rate, i.sub.1, assumed at a time, t.sub.1 ;computing a second actuarial present value of said annuity at a subsequent time t.sub.2 assuming a second pricing interest rate, i.sub.2 ;computing an interest adjustment factor, S, by dividing said first actuarial present value by said second actuarial present value;determining an actual investment rate of return, r, of said annuity during a time interval from time t.sub.1 to time t.sub.2 ;computing an investment performance factor, R, based on said actual investment rate of return, r;determining a subsequent payment, b.sub.2, by forming the product of a prior payment, b.sub.1, with the product of said interest adjustment factor, S, and said investment performance factor, R; anddistributing said subsequent payment to an annuitant.