Abstract:
An employee benefit administration system and transform method for creating a defined contribution health care benefit. The system comprising: a Dual-Purpose Profit Sharing Plan; means for processing employee records for each of a plurality of employees, and for manipulating employee demographic data, personal data, employment data, payroll data, enrollment data, transaction data with employer plan data to account for plan activity over a predetermined time and to report compliance with relevant IRS Tax Code provisions; and means for storing the employee records and the manipulated data. The transform method implementing a definite predetermined formula to administer a payment mechanism that is a dual purpose profit sharing plan and at least one additional payment mechanism where such definite predetermined formula: calculates an allocation of contributions; calculates at least one disbursement of accumulated funds upon at least one predetermined event; and calculates distributions from at least one additional payment mechanism.

Description:
CROSS-REFERENCE TO RELATED APPLICATION 
       [0001]    This application is a continuation of Ser. No. 13/344,960 filed on Jan. 6, 2012, which is a continuation of Ser. No. 12/363,773 filed on Feb. 1, 2009 now U.S. Pat. No. 8,275,638 issuing on Sep. 25, 2012, which is a continuation in part of Ser. No. 10/359,348 filed Feb. 5, 2003 which claims benefit of provisional application 60/404,106 filed Aug. 16, 2002, now U.S. Pat. No. 7,739,131 issuing on Jun. 15, 2010, and such Ser. No. 12/363,773 further claims the benefit of U.S. Provisional Patent Application Ser. No. 61/025,707 filed Feb. 1, 2008. Further, this application is a continuation of Ser. No. 12/787,393 filed on May 25, 2010, which is a division of the aforesaid Ser. No. 10/359,348 filed Feb. 5, 2003 now U.S. Pat. No. 7,739,131 issuing on Jun. 15, 2010. And still further, this application is continuation of Ser. No. 13/609,017 filed Sep. 10, 2012, which is a reissue of Ser. No. 11/969,377 filed Jan. 4, 2008 now U.S. Pat. No. 7,797,175 issuing on Sep. 14, 2010, which is a continuation in part of the aforesaid Ser. No. 10/359,348 filed Feb. 5, 2003 now U.S. Pat. No. 7,739,131 issuing on Jun. 15, 2010 and such Ser. No. 11/969,377 further claims the benefit of U.S. Provisional Patent Application Ser. No. 60/884,228 filed Jan. 10, 2007. The disclosures of the foregoing applications are hereby incorporated herein by reference. 
     
    
     COPYRIGHT NOTICE 
       [0002]    This 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 or records of the U.S. Patent and Trademark Office, but otherwise reserves all copyright rights whatsoever. 
       FIELD OF THE INVENTION 
       [0003]    The technical field is computers and data processing systems. Depending on the implementation, there is apparatus, method for using and method for making, and corresponding products produced thereby, as well as data structures, computer-readable media tangibly embodying program instructions, manufactures, and necessary intermediates of the foregoing, each pertaining to digital aspects of wide area network communications. Embodiments can have utility in such areas as employee retiree income and health benefit plans, defined benefit pension plans containing a retiree health account in tandem with a Dual-Purpose Profit Sharing benefit plan (DPPSP) to employees, and the like. 
       SUMMARY OF INVENTION 
       [0004]    In the description herein, various aspects of embodiments have been described. For purposes of explanation, specific numbers, systems and configurations were set forth in order to provide a thorough understanding of the embodiments. However, it is apparent to one skilled in the art having the benefit of this disclosure that the embodiments may be practiced without the specific details. In other instances, well-known features were omitted or simplified in order not to obscure the embodiments. 
         [0005]    For purposes of this document, the combined defined contribution and defined benefit plan that is an embodiment will be known as the AURA SM  Plan (with the stand-alone defined contribution plan being known as a Navigator Plan™) and is a continued expansion of the plan outlined in the pending patent filing (U.S. patent application Ser. No. 10/359,348 filed Feb. 5, 2003). Possible applications of this invention and the AURA™ Plan would be for retiree health care, prescription drug needs, medical claims under workers&#39; compensation, pre-funding active employees&#39; health care needs, funding Part B, Part C, and Part D Medicare premiums, pre-funding injury and sickness benefits, and the like. 
         [0006]    According to an embodiment, there can be a method of using an apparatus, the method including the steps of: controlling a computer system comprising a digital computer processor to process input data into output data, the processor in communication with an input device to receive the input data and to an output device to output the output data, said processor programmed so as to facilitate managing a dual purpose profit sharing plan cooperating with a pension plan wherein said managing includes: specifying a limit to money contributed to the dual purpose profit sharing plan to one of: a level amount that would be contributed over an employee&#39;s working life time to fund their retiree health pension plan benefits, a level percentage of the employee&#39;s salary, or a percentage of the employer cost to fund the employer&#39;s cost of funding the retiree medical benefits; receiving, as some of said input data: amounts of money to be contributed to the dual purpose profit sharing plan; and monitory the to be contributed amounts so as to determine whether to signal that the one of the limits is exceeded; and if the one of the limits is exceeded, issuing one or more signals, and if one of the limits is not exceeded, not issuing a signal. 
         [0007]    According to an embodiment, there can be a method to managing further including the steps of: specifying a limit so that contributions made for pension plan retiree health benefits are less than a specified percentage of contributions made to provide pension plan retirement income benefits; receiving further, as some of said input data: a percentage factor that is the aggregate contribution limit across all employees for which contributions to provide retiree health benefits are to be related to the aggregate plan contributions for all benefits for all employees, the aggregate amount, for all employees, of money contributed to the dual purpose profit sharing plan; and monitory the pension plan retiree health benefits and contributions for pension plan retirement income benefits so as to determine whether to signal that the limit is exceeded; if the limit is exceeded, issuing one or more signals; and if the limit is not exceeded, not issuing one or more signals. 
         [0008]    Another embodiment, is a method of using an apparatus, the method including the steps of: controlling a computer system comprising a digital computer processor to process input data into output data, the processor in communication with an input device to receive the input data and to an output device to output the output data, processor programmed to facilitate the manipulation of health data to compute actuarially equivalent contributions to a retirement health benefit plan and wherein said facilitating includes: receiving as some of said input data: health data; determining one or more health expectation factors; and using at least some of the one or more health expectation factors to compute one or more actuarially equivalent contributions to a retirement health benefit plan. 
         [0009]    According to a further embodiment, there can be a computer-implemented system for managing a dual purpose profit sharing plan cooperating with a pension plan wherein said system comprises: a computer-to-computer communication apparatus to send information to and receive information from a computer system used to manage a dual purpose profit sharing plan cooperating with a pension plan; a processor attached to the communication apparatus, the processor including: means for receiving contributions amounts of money to be contributed to the dual purpose profit sharing plan; means for specifying a limit to money contributed to the dual purpose profit sharing plan to one of: a level amount that would be contributed over an employee&#39;s working life time to fund their retiree health pension plan benefits, a level percentage of the employee&#39;s salary, or a percentage of the employer cost to fund the employer&#39;s cost of funding the retiree medical benefits; means for calculating the limit; means for comparing the contribution amounts of money to be contributed to the dual purpose profit sharing plan against the specified limit; means for transmitting a one or more signals if the to be contributed amount exceeds the specified limit; and means for transmitting an one or more signals if the to be contributed amount does not exceed the specified limit. 
         [0010]    According to a further embodiment, the computer-aided system further comprises: means for specifying a limit so that aggregate contributions made for all employees for pension plan retiree health benefits are less than a specified percentage of contributions made for all employees to provide pension plan retirement income benefits; means for calculating the limit; means for comparing the aggregate contribution amounts for all employees against the specified limit; means for transmitting a one or more signals if the to be contributed amounts does not exceed the specified limit; means for calculating acceptable contribution amounts for each employee such that the specified limit is met for all employees when the acceptable contributions are contributed; and means for transmitting one or more signals if the to be aggregate contributed amounts exceed the specified limit. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0011]    The discussed embodiment of the present invention is best understood from the following detailed description when read in connection with the accompanying drawings. It is emphasized that, according to common practice, the various features of the drawing are not to scale. On the contrary, the dimensions of the various features are arbitrarily expanded or reduced for clarity. 
           [0012]      FIG. 1  is an illustration of an exemplary embodiment of the present invention; 
           [0013]      FIG. 2  is an illustration of an exemplary embodiment; 
           [0014]      FIG. 3  is an illustration of an exemplary embodiment; 
           [0015]      FIG. 4  is an illustration of an exemplary embodiment; 
           [0016]      FIG. 5  is an illustration of an exemplary embodiment; 
           [0017]      FIG. 6  is an illustration of an exemplary embodiment; 
           [0018]      FIG. 7  is an illustration of an exemplary embodiment; 
           [0019]      FIG. 8A  is an illustration of an exemplary embodiment; 
           [0020]      FIG. 8B  is an illustration of an exemplary embodiment; 
           [0021]      FIG. 9  is an illustration of an exemplary embodiment. 
       
    
    
     DETAILED DESCRIPTION 
       [0022]    The exemplary embodiment descriptions outlined herein may be converted to program code by those knowledgeable in the art and executed on a computer or a network of computers to administer an employer-sponsored benefits program providing retirement, health, and accident benefits. Health and accident benefits may include, but are not limited to, medical (including medical benefits payable under COBRA or workers&#39; compensation), dental, vision, pharmacy benefits, long-term care, mental health, and life insurance. The health benefits include any item defined as deductible under tax law rules and may be provided either directly or indirectly (through insurance) by an employer as part of a tax qualified reimbursement plan. For purposes of an embodiment of the present invention, health and accident benefits will also be called incidental or ancillary benefits as applicable—consistent with Internal Revenue Service usage. Retirement benefits may be provided through a tax qualified employer-sponsored profit sharing plan. The combined plan will preferably be established as a Dual Purpose Profit Sharing Plan (DPPSP). Note: When the term “reimbursement plan” is used within this specification it includes any direct or indirect plan of reimbursement—direct includes self-insured employer-provided or union-provided plans and indirect includes insurance purchased from a third-party (including either a private or a public entity). While such U.S. Tax rules may change in the future, such changes would not diminish the importance of the claims in the suggested embodiment of this invention, nor alter the method and system covered by such claims. 
         [0023]    In addition to the DPPSP, a pension plan will be provided by the employer (or union)—such pension plan to include provisions to offer tax qualified retiree health benefits in addition to retirement benefits. 
         [0024]    Using this embodiment to calculate contributions to a DPPSP in order to insure subsequent contributions to the pension plan for income and health benefits are appropriate creates a retirement income and health care program. Such retirement income and health care program is considered an exemplary method. 
         [0025]    Embodiments may be implemented in hardware or software, or a combination of both. However, embodiments may be implemented as computer programs executing on programmable systems comprising at least one processor, a data storage system (including volatile and non-volatile memory and/or storage elements), at least one input device, and at least one output device. Program code may be applied to input data to perform the functions described herein and generate output information. The output information may be applied to one or more output devices, in known fashion. For purposes of this application, a processing system embodying the playback device components includes any system that has a processor or processors, or the like, such as, for example, a digital signal processor (DSP), a microcontroller, an application specific integrated circuit (ASIC), or a microprocessor. 
         [0026]    The programs may be implemented in a high level procedural or object oriented programming language to communicate with a processing system. The programs may also be implemented in assembly or machine language, if desired. In fact, the invention is not limited in scope to any particular programming language. In any case, the language may be a compiled or interpreted language. 
         [0027]    The programs may be stored on a storage media or device (e.g., hard disk drive, floppy disk drive, read only memory (ROM), CD-ROM device, flash memory device, digital versatile disk (DVD), or other storage device) readable by a general or special purpose programmable processing system, for configuring and operating the processing system when the storage media or device is read by the processing system to perform the procedures described herein. Embodiments of the invention may also be considered to be implemented as a machine-readable storage medium, configured for use with a processing system, where the storage medium so configured causes the processing system to operate in a specific and predefined manner to perform the functions described herein. 
         [0028]    As used herein, the term “computer” generally refers to hardware or hardware in combination with one or more program(s), such as can be implemented in software. Computer aspects can be implemented on general purpose computers or specialized devices, and can operate electrically, optically, or in any other fashion. A computer as used herein can be viewed as at least one computer having all functionality or as multiple computers with functionality separated to collectively cooperate to bring about the functionality, and in some embodiments (depending on context herein) computer systems can overlap. As used herein, the term “computer” generally refers to hardware or hardware in combination with one or more program(s), such as can be implemented in software. Computer aspects can be implemented on general purpose computers or specialized devices, and can operate electrically, optically, or in any other fashion. A computer as used herein can be viewed as at least one computer having all functionality or as multiple computers with functionality separated to collectively cooperate to bring about the functionality, and in some embodiments (depending on context herein) computer systems can overlap. Logic flow can represent signal processing, such as digital data processing, communication, or as evident from the context hereinafter. Logic flow can be implemented in discrete circuits, programmed computer, or the equivalent. Computer-readable media, as used herein can comprise at least one of a RAM, a ROM, A disk, an ASIC, and a PROM. 
         [0029]    Referring to  FIG. 1 , a flowchart illustrating an exemplary embodiment of the present invention. As shown in  FIG. 1 , at Step  100 , the employer starts the process and establishes two benefit plans, at Step  105 , to create the AURA™ Plan:
       1. a Dual-Purpose Profit Sharing Plan (DPPSP) having at least one health (and/or life) and accident account; and   2. a defined benefit pension plan having a retiree health account       
 
         [0032]    At Step  110 , at the end of each time period (a pay period, for example, but may be monthly, semi-annually, annually, or other appropriate period), the contributions are made and processed (contributions for health benefits are illustrated in detail in  FIGS. 2 ,  3 ,  4 ,  5 ,  6 , and  7 ) using a computerized system to assure that contributions to the DPPSP Health (and/or life) sub-account meet requirements and meet the limits of a pension plan (Health (and/or life) sub-accounts are considered non-retirement sub-accounts in the Flowcharts). At Step  115 , at the time the employee vests in their income and health funds or terminates employment (voluntarily, involuntarily, or retires) DPPSP funds will transfer either automatically or through an employee&#39;s election to the pension plan to provide retiree income and health benefits (subject to DPPSP and pension plan document provisions, illustrated in detail in  FIGS. 8A and 8B ). Transfers to provide retiree income benefits will be only from the retirement subaccounts of the DPPSP and transfers to the pension plan retiree health account will be from a DPPSP incidental health (and/or life) benefit subaccount. 
         [0033]      FIG. 2 , a flowchart illustrating how the rules of an exemplary method and system of the present invention are applied is implemented by using a computer that is implemented with program code to perform the calculations at Steps  215 ,  220 ,  230 ,  245 , and  250  and retrieves data from databases shown as Steps  200  and  205  and one holding detailed plan provisions at Step  210 . Step  200  (employee&#39;s master record), Step  205  (profit sharing and pension plan parameter database), and Step  210  (profit sharing and pension plan document provisions), provide information that are available to be used in Step  215 , Step  220 , and Step  230  (at Step  230 , the information is provided to Medical Benefit Providers at Step  225  and/or Financial Institutions at Step  227 ). The employee&#39;s master record may include, but is not limited to, demographic, personal, employment, payroll, employee-specific plan data. At Step  215 , the level future dollar health contribution limit for each employee is actuarially determined by following the method and system outlined in  FIG. 3 . 
         [0034]    Referring to  FIG. 3 , a flowchart illustrating an exemplary embodiment for calculating the level annual dollar amount to fund the retiree health benefits under the pension plan for the current employee (Level Dollar Method). The  FIG. 3  process is implemented on a computer using computer code to calculate the level annual dollar amount for the current employee and for all employees covered by the dual purpose profit sharing plan and eligible to participate in the pension plan. After starting at Step  300 , at Step  301 , calculate the current employee&#39;s retiree health benefits which are payable under the pension plan either automatically or would be payable under the pension plan should the employee elect to contribute to the pension plan on their election date. 
         [0035]    At Step  310 , calculate the present value of the current employee&#39;s future retiree health benefits (PVFHB) payable under the pension plan as of the valuation date (determined in Step  301 ). The present value calculation can include the discounted effects of expected mortality (Step  302 ) and interest (Step  303 ), using methodologies commonly used by and familiar to actuaries or those trained in the art. Such present value calculation may also include the discounted effects of health expectancy (Step  304 ), health risk adjuster (Step  305 ), withdrawals (Step  306 ), retirements at various ages (Step  307 ), and other pertinent factors (Step  308 ) as determined by the user, also using methodologies commonly used by and familiar to actuaries or those trained in the art. Step  304  and Step  305 , where used, are important additions offered by this invention to the calculation of DPPSP incidental health (and/or life) subaccount contributions; not used today for profit sharing contributions, actuaries have been increasingly learning and developing the concepts of measuring a person&#39;s health expectancy (the period of a person&#39;s lifetime that is expected to be spent in relatively good health) and health risk adjusters which are used by the Centers for Medicare and Medicaid Services to adjust Medicare/Medicaid premiums payable to payors to provide actuarially equivalent rates to account for differences in a particular payor&#39;s population health risk profile. Health risk adjusters and associated predictive models are currently offered by D2Hawkeye, DxCG, Ingenix, among others. Refer to  FIG. 9 , for an embodiment of actuarial equivalence. 
         [0036]    At Step  315 , calculate an annuity factor (XCAF). The annuity factor is calculated such that a value of $1 is payable annually for each year between the valuation date and the projected retirement date or dates. For any partial years, between the valuation date and the retirement date or dates, the amount will be a prorated portion of $1 equal to the period of time for such partial year. The annuity factor can include the discounted effects of expected mortality (Step  302 ) and interest (Step  303 ) and exclude the effect of compensation, using methodologies commonly used by and familiar to actuaries or those trained in the art. Such annuity factor may also include the discounted effects of health expectancy (Step  304 ), health risk adjuster (Step  305 ), withdrawals (Step  306 ), retirements at various ages (Step  307 ), and other pertinent factors (Step  308 ) as determined by the user, also using methodologies commonly used by and familiar to actuaries or those trained in the art. At Step  320 , the PVFHB is divided by the XCAF to calculate the level annual dollar amount to be contributed either by or on behalf of the current employee for the current period to the DPPSP health (and/or life) subaccount. 
         [0037]    At Step  220 , the level future percentage of compensation dollar health contribution limit for each employee is actuarially determined by following the method and system outlined in  FIG. 4 . 
         [0038]    Referring to  FIG. 4 , a flowchart illustrating an exemplary embodiment for calculating the current dollar amount to fund the retiree health benefits under the pension plan as a level percentage of compensation for the current employee (Level Compensation Percentage Method). The  FIG. 4  process is implemented on a computer using computer code to calculate the current dollar amount as a level percentage of compensation for the current employee and for all employees covered by the dual purpose profit sharing plan and eligible to participate in the pension plan. After starting at Step  400 , at Step  410 , calculate the current employee&#39;s retiree health benefits which are payable under the pension plan either automatically or would be payable under the pension plan should the employee elect to contribute to the pension plan on their election date. 
         [0039]    At Step  411 , calculate the present value of the current employee&#39;s future retiree health benefits (PVFHB) payable under the pension plan as of the valuation date (determined in Step  410 ). The present value calculation can include the discounted effects of expected mortality (Step  412 ) and interest (Step  413 ), using methodologies commonly used by and familiar to actuaries or those trained in the art. Such present value calculation may also include the discounted effects of health expectancy (Step  414 ), health risk adjuster (Step  415 ), withdrawals (Step  416 ), retirements at various ages (Step  417 ), and other pertinent factors (Step  418 ) as determined by the user, also using methodologies commonly used by and familiar to actuaries or those trained in the art. Step  414  and Step  415 , where used, are important additions offered by this invention to the calculation of DPPSP incidental health (and/or life) subaccount contributions; not used today for profit sharing contributions, actuaries have been increasingly learning and developing the concepts of measuring a person&#39;s health expectancy (the period of a person&#39;s lifetime that is expected to be spent in relatively good health) and health risk adjusters which are used by the Centers for Medicare and Medicaid Services to adjust Medicare/Medicaid premiums payable to payors to provide actuarially equivalent rates to account for differences in a particular payor&#39;s population health risk profile. Health risk adjusters and associated predictive models are currently offered by D2Hawkeye, DxCG, Ingenix, among others. Refer to  FIG. 9 , for an embodiment of actuarial equivalence. 
         [0040]    At Step  420 , calculate an annuity factor (NCAF). The annuity factor is calculated such that a value of $1 is payable annually for the current year and with the $1 adjusted each year between the valuation date and the projected retirement date or dates to account for changes in assumed compensation (Step  419 ). For any partial years, between the valuation date and the retirement date or dates, the amount will be a prorated portion of compensation adjusted $1, such proration equal to the period of time for such partial year. In addition to the effect of compensation, the annuity factor can include the discounted effects of expected mortality (Step  412 ) and interest (Step  413 ), using methodologies commonly used by and familiar to actuaries or those trained in the art. Such annuity factor may also include the discounted effects of health expectancy (Step  414 ), health risk adjuster (Step  415 ), withdrawals (Step  416 ), retirements at various ages (Step  417 ), and other pertinent factors (Step  418 ) as determined by the user, also using methodologies commonly used by and familiar to actuaries or those trained in the art. At Step  425 , the PVFHB is divided by the NCAF to calculate the level percentage of compensation which is then applied to the employee&#39;s current compensation (Step  430 ) at Step  435  to calculate the level percentage of compensation dollar amount to be contributed either by or on behalf of the current employee for the current period to the DPPSP health (and/or life) subaccount. 
         [0041]    At Step  230 , a predetermined percentage [e.g., 10%] of the cost to completely fund or purchase medical benefits for the employees retiree health benefits is determined by following the method and system outlined in  FIG. 5 . 
         [0042]    Referring to  FIG. 5 , a flowchart illustrating an exemplary embodiment for calculating a percentage [e.g., 10%] of the cost to completely fund or purchase medical benefits for all employees and allocating such cost to fund the retiree benefits under the pension plan for the current employee (Percentage Cost Method). The  FIG. 5  process at Step  561 , Step  570 , Step  585 , and Step  590  is implemented on a computer using computer code to calculate the current contribution to be made by or on behalf of the employee and, in turn, for all employees covered by the dual purpose profit sharing plan and eligible to participate in the pension plan. After starting at Step  560 , at Step  561 , calculate the current employee&#39;s retiree health benefits which are payable under the pension plan either automatically or would be payable under the pension plan should the employee elect to contribute to the pension plan on their election date. 
         [0043]    At Step  570 , calculate the present value of the current employee&#39;s future retiree health benefits (PVFHB) payable under the pension plan as of the valuation date (determined in Step  561 ). The present value calculation can include the discounted effects of expected mortality (Step  562 ) and interest (Step  563 ), using methodologies commonly used by and familiar to actuaries or those trained in the art. Such present value calculation may also include the discounted effects of health expectancy (Step  564 ), health risk adjuster (Step  565 ), withdrawals (Step  566 ), retirements at various ages (Step  567 ), and other pertinent factors (Step  568 ) as determined by the user, also using methodologies commonly used by and familiar to actuaries or those trained in the art. Step  564  and Step  565 , where used, is an important addition offered by this invention to the calculation of DPPSP incidental health (and/or life) subaccount contributions; not used today for profit sharing contributions, actuaries have been increasingly learning and developing the concepts of measuring a person&#39;s health expectancy (the period of a person&#39;s lifetime that is expected to be spent in relatively good health) and health risk adjusters which are used by the Centers for Medicare and Medicaid Services to adjust Medicare/Medicaid premiums payable to payors to provide actuarially equivalent rates to account for differences in a particular payor&#39;s population health risk profile. Health risk adjusters and associated predictive models are currently offered by D2Hawkeye, DxCG, Ingenix, among others. Refer to  FIG. 9 , for an embodiment of actuarial equivalence. 
         [0044]    At Step  572 , the employer begins an evaluation process to select an approach to either insure or fund the pension plan&#39;s retiree health benefits. At Step  576 , the employer acquires financial funding quotes from financial institutions (Step  574 ) to provide the retiree health benefits. At Step  578 , the employer acquires insurance quotes from medical benefit providers or insurers (Step  577 ) to provide the retiree health benefits. At Step  579 , the employer makes a decision as to whether to use the financial funding quote or insurance quote as an input into the calculation for the contribution to the DPPSP health (and/or life) subaccount. 
         [0045]    At Step  580 , the selected financial funding quote or insurance quote is reviewed to determine whether the financial funding quote or insurance quote was developed and offered by the financial institution or medical benefit provider at the individual or at the unallocated group level. Where the aggregate financial funding quote or insurance quote has been presented by the financial institution or medical benefit provider so that the proportion of the financial funding quote or insurance quote attributed to the current employee is readily identifiable, then proceed to Step  590 . If the aggregate financial funding quote or insurance quote is not at the individual or allocated group level, then proceed to Step  585 . At Step  585 , the financial funding quote or insurance quote is allocated to the individual employee level by allocating the aggregate financial funding quote or insurance quote in the same proportion that the current employee&#39;s present value of future health benefits (Step  570 ) has to the aggregate present value of future health benefits for all employees. At Step  590 , the current employee&#39;s portion of the aggregate financial funding quote or insurance quote (from Step  580  or Step  585 ) is multiplied by a percentage [e.g., 10%] to calculate the dollar amount to be contributed either by or on behalf of the current employee for the current period to the DPPSP health (and/or life) subaccount. 
         [0046]    At Step  235 , using employer income, tax, budget, planning, and aggregate information from Step  215 , Step  220 , and Step  230  the employer selects which limit to use for all employees (Level Dollar Method, Step  215 ; Level Compensation Percentage Method, Step  220 ; or Percentage Cost Method, Step  230 ). The calculated current period amount for each employee is drawn from Step  320 , Step  435 , or Step  590  using the selected method. Then at Step  240 , the profit sharing limits and tests outlined in U.S. patent application Ser. No. 10/359,348 filed Feb. 5, 2003 (these tests are not claimed as part of this invention) are applied. 
         [0047]    At Step  245 , any special non-traditional limits are applied. As a special non-traditional limit example see  FIG. 6  for a description of a method and system for calculating the pension subordination limitation test. The pension subordination limitation test shown in  FIG. 6  is a useful feature of this invention. 
         [0048]    Referring to  FIG. 6 , a flowchart illustrating an exemplary embodiment for calculating a pension subordination test—an example of a special non-traditional limit process. The  FIG. 6  process is implemented on a computer using computer code to calculate various factors to determine and limit the contribution made by or on behalf of the current employee for the current period to the DPPSP health (and/or life) subaccount. The computer code includes programming to calculate the result for Step  615 , Step  620 , Step  625 , Step  630 , and Step  640 . 
         [0049]    After starting at Step  600 , proceed to Step  615 . At Step  615 , from previous plan financial information (Step  610 ) aggregate all retirement contributions made, including the current period contribution to be made, to the dual purpose profit sharing plan available to provide retirement income benefits regardless of source (include both employer and employee contributions, yet exclude any contributions made to an incidental health (and/or life) benefit subaccount or used to provide any life insurance protection). Such contributions to be valued as of the original contribution date and do not include any investment gains or losses that may have been generated since the contributions were first made to the profit sharing plan. For purposes of this patent, these contributions added for all employees are to be called Aggregate Retirement Contributions. The contributions are pulled from a master database (Step  610 ) which includes plan contributions made for employees. When adding the contributions, contributions may be selected either from all retirement income contributions made since the initial establishment of the profit sharing plan, from all retirement income contributions made since the initial establishment of the profit sharing plan as a dual purpose plan, or from all retirement income contributions made since the “date of establishment” of adding retiree health benefits to the pension plan. The “date of establishment” defined as the later of the adoption date of the plan amendment adding the retiree health account or the effective date of the plan amendment. For purposes of this exemplary embodiment of the present invention, contributions include all contributions made since the initial establishment of the profit sharing plan. 
         [0050]    At Step  620 , from previous plan financial information (Step  610 ) aggregate all health contributions made, including the current period contribution to be made, to the DPPSP to pay for incidental health (and/or life) benefits regardless of source (include both employer and employee contributions, also include any contributions used to provide any life insurance protection). Such contributions to be valued as of the original contribution date and do not include any investment gains or losses that may have been generated since the contributions were first made to the profit sharing plan. For purposes of this patent, these contributions are to be called Aggregate Health Contributions. The contributions are pulled from a master database (Step  610 ) which includes plan contributions made for employees. When adding the health contributions, contributions may be selected either from all health contributions (including those used to provide any life insurance protection) made since the initial establishment of the profit sharing plan, from all health contributions (including those used to provide any life insurance protection) made since the initial establishment of the profit sharing plan as a dual purpose plan, or from all health contributions (including those used to provide any life insurance protection) made since the “date of establishment” of adding retiree health benefits to the pension plan. The “date of establishment” defined as the later of the adoption date of the plan amendment adding the retiree health account or the effective date of the plan amendment. For purposes of this exemplary embodiment of the present invention, health contributions include all contributions made to the incidental health (and/or life) subaccount and all contributions used to provide any life insurance protection for all employees since the initial establishment of the profit sharing plan. 
         [0051]    At Step  625 , calculate the Aggregate Health Contribution Limit. Such limit is calculated by multiplying the Aggregate Retirement Contributions (the result of Step  615 ) across all employees by the tax qualified subordination rate [e.g., 25%] divided by the quantity of one minus the subordination rate [e.g., 25% or 0.25]. Under current tax regulations the subordination factor is [e.g., ⅓]. The result is the Aggregate Health Contribution Limit. 
         [0052]    At Step  630 , the sum of Aggregate Health Contributions across all employees are checked against the Aggregate Health Contribution Limit. If the sum of Aggregate Health Contributions across all employees are less than the Aggregate Health Contribution Limit (Step  635 ), then the current period health contributions are acceptable. If the Aggregate Health Contributions are more than the Aggregate Health Contribution Limit (Step  640 ), then the limits are exceeded and leads to Step  250  from Step  245 . 
         [0053]    At Step  250 , the current period health contributions are reduced using the method and system shown in  FIG. 7 , which are finalized and used to contribute to the DPPSP incidental health (and/or life) subaccount at Step  255 . At Step  260 , the contributions to the DPPSP incidental health (and/or life) subaccount may be placed into a life insurance contract, such contribution to a life insurance contract where the life insurance contract is valued at other than the cash value using life settlement techniques familiar to actuaries or those trained in the art and where the life insurance has one or more of the cash value and the death benefit (net of cash value) owned either directly or indirectly by one or more parties as a split dollar contract are considered exemplary aspects of this invention. 
         [0054]    Referring to  FIG. 7 , a flowchart illustrating an exemplary embodiment for adjusting each employee&#39;s current period health contribution to meet the special non-traditional limit shown in  FIG. 6 . The  FIG. 7  process is implemented on a computer using computer code to calculate various factors to adjust the health contribution made by or on behalf of the current employee for the current period to the DPPSP health (and/or life) subaccount, so that the health contribution meets the pension subordination limitation test. The computer code includes programming to calculate the result for Step  715  and Step  720 , using information from Step  705  (calculated in Step  620 ) and Step  710  (calculated in Step  725 ). 
         [0055]    After starting at Step  700 , using inputs from Step  705  and Step  710 , at Step  715 , the system calculates the subordination correction factor. The subordination correction factor is a fraction whose numerator equals the Aggregate Health Contribution Limit (AHCL) less the quantity of Aggregate Health Contributions (AHC) less the sum of all current period health contributions and all current period contributions used to provide any life insurance protection for all employees (CurHlth) and whose denominator equals the sum of all current period health contributions and all current period contributions used to provide any life insurance protection for all employees (CurHlth). Or as a formula: 
         [0000]    
       
         
           
             
               Subordination 
                
               
                   
               
                
               Correction 
                
               
                   
               
                
               Factor 
             
             = 
             
               
                 AHCL 
                 - 
                 
                   ( 
                   
                     AHC 
                     - 
                     CurHlth 
                   
                   ) 
                 
               
               CurHlth 
             
           
         
       
     
         [0056]    At Step  720 , multiply the current employee&#39;s unadjusted current period health contribution and any current period amounts used to provide any life insurance protection by the subordination correction factor and reduce the result by any current period amounts used to provide any life insurance protection. If the result is less than zero, then the current period health contribution amounts for other employees can be reduced further so that the current period health contribution for the current employee is equal to zero. 
         [0057]    Referring to  FIG. 8A , a flowchart illustrating an exemplary embodiment for making contributions from the DPPSP into the pension plan, so that the contributions to the retiree health account are certain to be subordinate to the retirement income contributions. The  FIG. 8A  process is implemented on a computer using computer code to calculate the contributions from the DPPSP into the pension plan, so that contributions to the health account are subordinate to the retirement income contributions. The computer code includes programming to calculate the result for Step  815 . 
         [0058]    Starting at Step  800 , proceed to Step  805 . At a plan document defined time when the employee vests in DPPSP subaccount contributions, terminates, or retires, the employee either automatically or is provided an option to elect to contribute to the pension plan. At Step  810 , some portion or all of the funds in the DPPSP retirement subaccount(s) are used either automatically or through an election to purchase a retirement income annuity (such annuity may be provided directly by the employer&#39;s pension plan or as a favorable feature of this invention from an annuity provider (such as an insurance company). When purchasing the annuity as one exemplary embodiment of this invention the contributions used to purchase the annuity, when used to calculate the Aggregate Retirement Pension Plan Contributions, are to be valued as of the original contribution date to the DPPSP and do not include any investment gains or losses that may have been generated since the contributions were first made to the profit sharing plan. Note that like the process shown in  FIG. 6 , when adding the contributions, contributions may be selected either from all retirement income contributions made since the initial establishment of the profit sharing plan, from all retirement income contributions made since the initial establishment of the profit sharing plan as a dual purpose plan, or from all retirement income contributions made since the “date of establishment” of adding retiree health benefits to the pension plan. For purposes of this patent, these contributions when added for all employees are to be called Aggregate Retirement Pension Plan Contributions. 
         [0059]    As another exemplary embodiment of this invention the Aggregate Retirement Pension Plan Contributions may be valued at the actual dollar value of the DPPSP retirement subaccount(s) when the funds are used to purchase the annuity (this dollar value includes any investment gains or losses that may have been generated since the contributions were first made to the DPPSP)—the DPPSP and/or pension plan documents will define how the Aggregate Retirement Pension Plan Contributions are to be calculated. 
         [0060]    At Step  815 , a portion or all of the funds in the DPPSP incidental health (and/or life) subaccount(s) are put into a retiree health account to provide retiree health benefits. As one exemplary embodiment of this invention the health contributions put into a retiree health account are to be valued as of the original contribution date to the DPPSP and do not include any investment gains or losses that may have been generated since the contributions were first made to the profit sharing plan. Note that like the process shown in  FIG. 6 , when adding the health contributions, contributions may be selected for a time period that is either from all health contributions (including those used to provide any life insurance protection) made since the initial establishment of the profit sharing plan, from all health contributions (including those used to provide any life insurance protection) made since the initial establishment of the profit sharing plan as a dual purpose plan, or from all health contributions (including those used to provide any life insurance protection) made since the “date of establishment” of adding retiree health benefits to the pension plan. The selected time period utilized should be the same as the selection utilized to calculate the Aggregate Retirement Pension Plan Contributions in Step  810 . For purposes of this patent, these contributions added for all employees are to be called Aggregate Retirement Pension Plan Health Contributions. 
         [0061]    As another exemplary embodiment of this invention the Aggregate Retirement Pension Plan Health Contributions may be valued at the actual dollar value of the DPPSP retirement subaccount(s) when the funds are put into the retiree health account (this dollar value includes any investment gains or losses that may have been generated since the contributions were first made to the DPPSP)—the DPPSP and/or pension plan documents will define how the Aggregate Retirement Pension Plan Health Contributions are to be calculated and the process should be consistent with that used for Aggregate Retirement Pension Plan Contributions. 
         [0062]    At Step  820 , at the earlier of the employee&#39;s employment termination or their retirement, any DPPSP incidental health (and/or life) subaccount funds remaining after the contribution has been made to the pension plan health account are used to purchase a non-cash value medical insurance policy, long-term care policy, or MEDVAN policy. Each of these policies can not allow for any cash to be returned to the employee/retiree even as return of premium (other than to reimburse qualified medical expenses). 
         [0063]    As an alternative embodiment of this invention, See  FIG. 8B , the funds that exist in the employee&#39;s incidental health (and/or life) subaccount (Step  835 ), when the employee vests in DPPSP subaccount contributions, terminates, or retires, are directly transferred into a pension plan retiree health account. Should this alternative embodiment be selected, then a Minimum Aggregate Retirement Pension Plan Contribution is calculated. Such Minimum Aggregate Retirement Pension Plan Contribution (Step  840 ) equals a multiple [e.g., 3, derived from the inverse of the subordination factor] of the sum of the health contributions made to the DPPSP incidental health (and/or life) account (Step  835 ), supplemented by any additional employer or employee funds (if desired), that are transferred into the pension plan retiree health account and the sum of any contributions utilized to provide incidental life benefits through the DPPSP. Using DPPSP retirement contributions (Step  845 ) supplemented with additional employer (Step  850 ) and/or employee (Step  852 ) contributions an amount equal to the Minimum Aggregate Retirement Pension Plan Contribution will then be placed in the pension plan to provide or purchase a retirement income annuity (Step  855 ). 
         [0064]    Referring to  FIG. 9 , an additional embodiment, one or more of an employee&#39;s health claims history (Step  900 ), prescription drug information (Step  905 ), personal health history (Step  910 ), personal health assessment, and biometric data (Step  920 ), are used as input to a processor (Step  925 ) to determine one or more of the employee&#39;s health expectancy (Step  930 ) and a health risk adjuster (Step  935 ) as an interim step(s) to calculating the actuarially equivalent contribution to be made for the employee (Step  940 ). 
       SPECIFIED EMBODIMENT 
       [0065]    One possible specified embodiment of this invention would be a AURA™ Plan (also known as the Navigator Plan™) where an employer establishes two plans:
       1) a Dual-Purpose Profit Sharing Plan (DPPSP) having at least one health (and/or life) and accident account; and   2) a defined benefit pension plan having a retiree health account       
 
         [0068]    Assets for the DPPSP and the defined benefit pension plan are held in the same trust. The employer provides the following benefits to the employee:
       1) The employee may contribute up to 15% of pay to the DPPSP   2) The employer contributes a matching contribution equal to 50% of the employee&#39;s first 6% of pay to the DPPSP to which the employee immediately vests   3) The employer contribution is allocated 100% to the defined benefit pension plan providing the employee with a floor annual retirement income at the employee&#39;s normal retirement age   4) The employer also makes a 1% elective contribution to a DPPSP health (and/or life) subaccount specifically devoted to the payment defined medical expenses [currently defined by §213] incurred and reimbursed during the current year; such contribution to the DPPSP health (and/or life) subaccount is limited to an amount that is subordinate to the defined benefit pension plan contribution—the system described herein performs such calculation and assures that contributions ultimately made to the pension plan retiree health account will be subordinate to the aggregate pension contributions   5) Any amounts remaining in the DPPSP health (and/or life) subaccount at the end of the plan year or at employee termination (if sooner) are transferred to the pension plan&#39;s retiree health account       
 
         [0074]    In sum, appreciation is requested for the range of possibilities flowing from the core teaching herein. More broadly, however, the terms and expressions which have been employed herein are used as terms of teaching and not of limitation, and there is no intention, in the use of such terms and expressions, of excluding equivalents of the features shown and described, or portions thereof, it being recognized that various modifications are possible within the scope of the embodiments contemplated and suggested herein. Further, various embodiments are as described and suggested herein. Although the disclosure herein has been described with reference to specific embodiments, the disclosures are intended to be illustrative and are not intended to be limiting. Various modifications and applications may occur to those skilled in the art without departing from the true spirit and scope defined in the appended claims. Thus, although only a few exemplary embodiments have been described in detail above, those skilled in the art will readily appreciate that many modifications are possible in the exemplary embodiments without materially departing from the novel teachings and advantages herein. Accordingly, all such modifications are intended to be included within the scope defined by claims. Means-plus-function claims are intended to cover the structures described herein as performing the recited function and not only structural equivalents, but also equivalent structures. Thus, although a nail and a screw may not be structural equivalents in that a nail employs a cylindrical surface to secure wooden parts together, whereas a screw employs a helical surface, in the environment fastening wooden parts, a nail and a screw may be equivalent structures.