Patent ID: 7769607

Claim:
A method which comprises: investing at least a portion of one or more assets of a pension plan so as to acquire an ownership interest in a selected plurality of current, in-force life settlement contracts sold by owners of the current, in-force life settlement contracts, wherein each of the plurality of current, in-force life settlement contracts is characterized in that it either (a) provides a plurality of periodic payments during a life of an insured or (b) provides a single death benefit on the life of the insured, and is selected so that the insured is not a beneficiary of the pension plan, and is selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit; calculating, by a computing apparatus, periodically for each of a plurality of the respective life settlement contracts, an actuarial present value for every out year through a final year of an actuarial table appropriate to a respective insured of the respective life settlement contract, with parameters for the calculating comprising: a probability that the respective insured will die during such year, an interest rate, and a death benefit for the respective life settlement contract; summing, by the computing apparatus, the actuarial present value for every out year through the final year of the actuarial table appropriate to the respective insured, to obtain an actuarial present value for the respective life settlement contract; determining, by the computing apparatus, a total value of pension plan assets, including the actuarial present value of the plurality of life settlement contracts, with the total value of the pension plan assets inclusive of the ownership interest in the selected plurality of current, in-force life settlement contracts so acquired converting a value of the assets of the pension plan used to acquire the ownership interest in the selected plurality of current, in-force life settlement contracts into an actuarial present value of the ownership interest in the selected plurality of current, in-force life settlement contracts; calculating, by the computing apparatus, a difference between the total value of the pension plan assets and liabilities of the pension plan to obtain an unfunded actuarial accrued liability; and maintaining enforceability of the selected plurality of current, in-force life settlement contracts and processing death benefits arising from the life settlement contracts.