Patent ID: 7761369

Claim:
A method for identifying and administering a deferred award plan for the benefit of an employee, said method comprising the steps of: identifying from human resource data files at least one employee of an employer in said deferred award plan and storing employee related information on a memory device of a computer system; retrieving financial data related to a deferred compensation plan and to an employee welfare benefit plan corresponding to said identified employee; computing a fair value of benefits associated with said deferred compensation plan; establishing an asset in compliance with Financial Standards Board (FASB) or International Accounting Standards Board (IASB) rules based on said fair value of benefits, wherein the asset is accounted for in the books of the company; purchasing an individual or group life insurance policy having a predetermined benefit, said individual or group life insurance policy having a premium a first portion of which is associated with said deferred compensation plan and a second portion of which is associated with said employee welfare benefit plan, wherein said asset is used to fund said premium; and receiving, via the computer system, data indicative of an amount of funds that said employee intends to borrow from funds accumulated in said individual or group life insurance policy, determining, in the computer system, whether the amount of funds exceeds an amount of funds available, wherein the amount of funds available is restricted by a limit set forth in an endorsement, said limit reflecting a level of compensation according to said deferred compensation plan.