Patent ID: 7801792

Claim:
A data processing system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value, and a step-up provision, said system comprising: a storage device; a processor coupled to the storage device, the storage device storing modules utilized by the processor, for determining if a step-up in the present payment base value is applicable; and if the step-up is applicable, for determining a step-up, wherein the step-up is not more than a predetermined percentage of the present payment base value, and wherein the step-up is greater than zero, increasing the present payment base value by the step-up; and further for multiplying, the increased payment base value by a withdrawal percent to determine a benefit payment amount available for withdrawal without reducing the present payment base value; wherein the step up is applicable if the present contract value is greater than the previously highest attained contract value as determined at periodic time intervals.