Patent ID: 8290849

Claim:
A method for administering, by at least one programmed computer, a plan sponsor's hedging, periodically reset, of at least a portion of the plan sponsor's liability related to at least one notional investment made available by the plan sponsor of at least one nonqualified deferred compensation plan, using at least one notional instrument that comprises at least one total return swap, the method comprising: a) periodically receiving, electronically, from at least one source, at least the following data: i) the at least portion of the plan sponsor's liability related to an initial notional investment or at least portion of a subsequent notional investment of the at least one plan notional investment of the at least one nonqualified deferred compensation plan of the plan sponsor, wherein the at least one plan notional investment is to be hedged and wherein at least one plan participant in the at least one nonqualified deferred compensation plan is notionally invested in the at least one plan notional investment, or ii) at least one current amount hedged in at least one swap reference fund of the at least one total return swap; b) calculating, by the at least one programmed computer, at least a portion of a required swap notional principal amount in order to hedge at least a portion of the at least one nonqualified deferred compensation plan liability, based at least in part on: i) determining an amount of the plan sponsor's liability related to the at least one plan notional investment to be hedged with at least one swap referenced fund, and ii) where necessary, converting at least one plan notional investment into at least one swap referenced fund that is not a plan notional investment; c) calculating, by the at least one programmed computer, based at least in part on the at least portion of the required swap notional principal amount, the following: i) at least one adjustment showing the at least one swap notional principal amount for the at least one swap reference fund of the at least one total return swap, and ii) at least one amount required to be bought or sold in order to modify the at least one total return swap to hedge the liability of the plan sponsor in the at least portion of the at least one nonqualified deferred compensation plan of the plan sponsor; and providing the at least one adjustment to a swap provider.