Patent ID: 8204767

Claim:
A computerized method for administering a benefit plan using a computer having a storage element, said plan having a feature that provides a stream of systematic withdrawal payments during a liquidity period and annuity payments under an annuity payout option to be paid to an owner under the plan if the owner is living when the systematic withdrawal payments cease, and having an account value during the liquidity period which includes a first portion for funding payments during the liquidity period and a second portion for funding payments during an annuity period, comprising the steps of: a) storing data relating to the benefit plan in the storage element, including data relating to at least one of the account value, an AIR, where AIR is one of an assumed investment rate and an interest rate, systematic withdrawal and annuity payments, the liquidity period, the annuity period, and the annuity payout option; b) during the liquidity period, using the computer to periodically perform the steps of: 1. determining a single special annuity factor based on the AIR for the liquidity period and the AIR and mortality rate for the annuity period; 2. determining an amount of a payment using the special annuity factor and said first and second portions of the account value, and paying said amount to the owner; 3. determining the account value; and 4. monitoring the account value for unscheduled payments made under the benefit plan and making corresponding adjustments to future payments; c) at the end of the liquidity period, determining the account value to be used to determine the initial annuity payment in the annuity period; and d) during the annuity period, using the computer to periodically perform the steps of: 1. determining an amount of an annuity payment; and 2. periodically paying the annuity payment to the owner.