Patent ID: 7885834

Claim:
A data processing system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value representing an amount of funds subject to investment control by a contract owner and benefit payments, said system comprising: a storage device; a processor coupled to the storage device, the storage device storing modules utilized by the processor for predetermining a series of payout periods, wherein the number of years of each payout period is greater than one year, for predetermining a maximum total withdrawal percent for each payout period, and for calculating the amount of the benefit payment withdrawal for each given year within a given payout period by receiving an instruction from a relevant life that provides a withdrawal percent to use for each given year, the amount of the benefit payment withdrawals decreasing the contract value and thereby reducing the amount of funds subject to investment control by a contract owner; and wherein the sum of the withdrawal percents from each given year within the payout period is equal to or less than the predetermined maximum total withdrawal percent that is allowed for withdrawal for the given payout period without reduction of the payment base value.