Patent ID: 8719133

Claim:
A computer-implemented method of administering an annuity account comprising: determining, at an account administration computing device comprising a processor and memory, a base interest rate, said base interest rate being applied to the value of the account for an initial predefined period; determining, by the processor, a base referenced rate of interest as of an initial date; for a subsequent predefined period after the initial date: (A) determining, by at the processor, a current referenced rate of interest as of a second date; (B) determining, by the processor, a total interest rate that will be applied to the value of the account during the subsequent predefined period, wherein: (i) if the current referenced rate of interest is less than or equal to the base referenced rate of interest, the total interest rate will be equal to the base interest rate; and (ii) if the current referenced rate of interest is greater than the base referenced rate of interest, the total interest rate will be as much as the base interest rate and an interest enhancement; and applying, at the processor, the total interest rate for the subsequent predefined period to the value of the account during the predefined period.