Patent ID: 8429052

Claim:
The computer-implemented method for use with a computer of the type used to administer an employer-sponsored, defined contribution retirement plan having participant account balances, comprising the steps of: providing options to a plan participant to elect a lifetime payout funded by at least a portion of the participant's account balance, said options including an option to elect lifetime payments paid through the plan, and an option to elect lifetime payments paid through a Plan Distributed Annuity (“PDA”); providing funding and administration of benefit payments under the lifetime payout outside of an annuity contract during a first specified period; and using the computer: inputting a lifetime payout election by a participant, said election including either said election for lifetime payments paid through the plan, or for lifetime payments paid through the PDA; for each plan participant electing a lifetime payout, importing and storing participant data from the plan, said data including data representative of said portion of the participant's account balance funding the lifetime payout; creating and storing a lifetime payout record for said participant; using said portion of the participant's account balance, computing an amount of a periodic benefit payment under the elected lifetime payout; and if a PDA is elected by the plan participant or administrator: generating an instruction to withdraw said portion of the participant's account balance to purchase a PDA; and generating an instruction to modify the participant's payout record to reflect purchase of the PDA; and if a PDA is not elected: establishing an account within the plan for paying periodic distributions to the participant in response to the election of a lifetime payout; periodically retrieving the plan participant's lifetime payout record from storage; generating an instruction to pay the lifetime payout benefit payment from the account established within the plan; and recording the payment in the participant's lifetime payout record and re-storing said record.