Method of enhancing value of pension system assets

Abstract

A program product, a system, and method for a trustee and a pension system, one embodiment of a program product consistent with the invention comprises program code for generating or receiving a plurality of files or a reference or references to a plurality of files that form an life insurance settlement pool, wherein the insureds in the pool are not beneficiaries of that pension system; program code for issuing payment instructions and/or payment instruments to maintain each of a plurality of the life insurance settlement contracts; program code for registering in an electronic database an ownership interest for the pension system in the life insurance settlement pool and/or in each insurance settlement contract in the life insurance settlement pool; program code for electronically determining or having determined a proportionate share of the life insurance settlement pool; program code for paying out or having paid out proceeds from the insurance policies in accordance with a predetermined priority of distribution; program code for electronically generating or having generated an actuarial value of the life insurance settlement pool or an undivided interest therefore or an undivided interest in each of the life insurance settlement contracts in the pool on a periodic or other basis; and program code for communicating the actuarial value to at least one pension system that owns an undivided interest in the life insurance settlement pool.

1 . A program product for servicing a trustee for a public pension system, comprising:
 a set of computer readable media, wherein set means at least one, having computer readable program code, to be executed by a computer, embodied in the computer-readable media, the computer readable program code comprising:   program code configured to cause a computer to generate or receive a plurality of files or a reference or references to a plurality of files that form a life insurance settlement pool, wherein each file includes information on a life insurance settlement contract that either (a) provides a plurality of periodic payments during the life of an insured or (b) provides a single death benefit on the life of an insured, but in either case, the insured is not a beneficiary of the public pension system, and was selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit;   program code configured to cause a computer to authorize or issue payment instructions and/or payment instruments to maintain each of a plurality of the life insurance settlement contracts in the life insurance settlement pool in effect;   program code configured to cause a computer to register or have registered in an electronic database an ownership interest for the public pension system in the life insurance settlement pool and/or in each insurance settlement contract in the life insurance settlement pool;   program code configured to cause a computer to electronically determine or have electronically determined a proportionate share of the life insurance settlement pool based on an amount of value provided by the public pension system for an investment in the life insurance settlement pool and on total assets in the life insurance settlement pool at the time of purchase;   program code configured to cause a computer to pay out or authorize pay out of proceeds from the insurance settlement contracts;   program code configured to cause a computer to electronically generate or have electronically generated an actuarial present value of the life insurance settlement pool or an actuarial present value for an undivided interest held by the public pension system in the life insurance settlement pool, and/or an actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool on a periodic or other basis wherein the actuarial present value is calculated using a method to increase a value of the ownership interest in each of a plurality of the acquired current, in-force life insurance settlement contracts at each calculation period as a probability of death of a respective insured associated with a respective one of the life insurance settlement contracts increases and the death of the respective insured has not occurred; and   program code configured to cause a computer to initiate communication of the actuarial present value of the life insurance settlement pool or the actuarial present value for the undivided interest held by the public pension system in the life insurance settlement pool and/or the actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool to at least one public pension system that owns an undivided interest in the life insurance settlement pool.   
   
   
       2 . The program product as defined in  claim 1 , wherein the communication operation comprises program code configured to cause a computer to communicate the respective actuarial present value of the respective undivided interest in the life insurance settlement pool to each of a plurality of public pension systems holding respective undivided interests in the life insurance settlement pool. 
   
   
       3 . The program product as defined in  claim 1 , wherein the communication operation comprises computer code configured to cause a computer to generate and send a customized communication to each of a plurality of different public pension systems based on the respective actuarial present value of the undivided interest of the particular public pension system in the life insurance settlement pool and/or in each of the life insurance settlement contracts in the life insurance settlement pool held by that public pension system. 
   
   
       4 . The program product as defined in  claim 1 , further comprising program code configured to cause a computer to calculate a UAL (unfunded actuarial accrued liability) amortization for at least one public pension system based at least in part on the actuarial present value for an undivided interest held by the public pension system in the life insurance settlement pool; and
 program code configured to cause a computer to generate a communication based in part on the UAL amortization to a public pension system governing board.   
   
   
       5 . The program product as defined in  claim 1 , further comprising program code configured to electronically communicate a set of criteria to an insurance settlement contract selection agent for selection of life insurance settlement contracts for the life insurance settlement pool. 
   
   
       6 . The program product as defined in  claim 1 , further comprising:
 program code configured to cause a computer to receive an average weighted life expectancy for the life insurance settlement pool;   program code configured to cause a computer to compare the average weighted life expectancy to actual mortality data for the insureds on the life insurance settlement contracts in the life insurance settlement pool; and   program code configured to cause a computer to initiate communication of information on results of the comparison to a program for setting a price for the undivided interest in a secondary market for the insurance settlement contract pool.   
   
   
       7 . The program product as defined in  claim 1 , wherein a plurality of the life insurance settlement contracts are life insurance settlement contracts that provide a single death benefit on the life of an insured. 
   
   
       8 . The program product as defined in  claim 1 , wherein the predetermined limit is that the remaining life expectancy of the insured under the life insurance settlement contract is no more than 20 years. 
   
   
       9 . The program product as defined in  claim 1 , wherein the predetermined limit is that the remaining life expectancy of the insured under the life insurance settlement contract is no more than 15 years. 
   
   
       10 . The program product as defined in  claim 1 , further comprising
 program code configured to cause a computer to access a database of electronic files for life insurance settlement contracts;
 program code configured to cause a computer to electronically select a plurality of the life insurance settlement contracts as the life insurance settlement contracts for the life insurance settlement contract pool based on the predetermined limit. 
   
   
   
       11 . The program product as defined in  claim 1 , wherein the program code is configured so that the actuarial present value that is generated for each of a plurality of the life insurance settlement contracts, comprises a sum of amounts calculated for every out year through a final year of an actuarial table appropriate to a respective insured associated with a respective life insurance settlement contract, wherein each amount calculated for every out year comprises a present value, at an interest rate, of a product of a probability that the insured for the life insurance settlement contract will die during such year multiplied by a death benefit. 
   
   
       12 . A program product comprising:
 a set of computer readable media, wherein set means at least one, having computer readable program code, to be executed by a computer, embodied therein, the computer readable program code comprising:   program code for a public pension system configured to cause a computer to facilitate authorization of an investment of one or more public pension system assets to obtain an undivided interest in a life insurance settlement pool that comprises a plurality of life insurance settlement contracts, wherein each insurance settlement contract either (a) provides a plurality of periodic payments during the life of an insured or (b) provides a single death benefit on the life of an insured, but in either case, the insured is not a beneficiary of the public pension system, and was selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit;   program code configured to cause a computer to receive registration information that references the life insurance settlement pool and/or each insurance settlement contract in the life insurance settlement pool;   program code configured to cause a computer to receive an actuarial present value of the life insurance settlement pool, or an actuarial present value of an undivided interest held by the public pension system in the life insurance settlement pool, or an actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool, on a periodic or other basis, wherein the actuarial present value is calculated using a method to increase a value of the ownership interest in each of a plurality of the acquired current, in-force life insurance settlement contracts at each calculation period as a probability of death of a respective insured associated with a respective one of the life insurance settlement contracts increases and the death of the respective insured has not occurred;   program code configured to cause a computer to calculate electronically or have calculated electronically a UAL (unfunded actuarial accrued liability) based in part on the actuarial present value of the life insurance settlement pool, or the actuarial present value of the undivided interest held by the public pension system in the life insurance settlement pool, or a sum of the actuarial present values of the undivided interests held by the public pension system in the life insurance settlement contracts in the life insurance settlement pool;   program code configured to cause a computer to calculate electronically or have calculated electronically a UAL amortization based at least in part on the UAL; and   program code configured to cause a computer to initiate communication or have communicated a report or a network reference to the report to a third party that includes data based at least in part on the UAL amortization.   
   
   
       13 . The program product as defined in  claim 12 , wherein the remaining life expectancy of each of the insureds in the life insurance settlement pool, when determined at least immediately after the acquisition, is such that (i) the total value of the public pension system assets, inclusive of the life insurance settlement pool, determined immediately after the acquisition of the life insurance settlement pool, is greater than (ii) the total value of the public pension system assets, exclusive of the life insurance settlement pool and inclusive of the one or more public pension system assets used for the investment just prior to the investment, the respective total values of (i) and (ii) being determined at the same point in time and in accordance with a same actuarially sound valuation method, so that the actuarial present value of the life insurance settlement pool assets will grow in value over time, thereby offsetting at least some of the fluctuations in the UAL for the public pension system. 
   
   
       14 . The program product according to  claim 12 , wherein the actuarial present value that is received, individually, or in composite for the life insurance settlement pool, for each of a plurality of the life insurance settlement contracts, comprises a sum of amounts calculated for every out year through a final year of an actuarial table appropriate to a respective insured associated with a respective life insurance settlement contract, wherein each amount calculated for every out year comprises a present value, at an interest rate, of a product of a probability that the insured for the life insurance settlement contract will die during such year multiplied by a death benefit. 
   
   
       15 . A system for servicing a public pension system, comprising:
 one or more computers configured to generate or receive a plurality of files or a reference or references to a plurality of files that form a life insurance settlement pool, wherein each file includes information on a life insurance settlement contract that either (a) provides a plurality of periodic payments during the life of an insured or (b) provides a single death benefit on the life of an insured, but in either case, the insured is not a beneficiary of the public pension system, and was selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit;   one or more computers configured to authorize or issue payment instructions and/or payment instruments to maintain each of a plurality of the life insurance settlement contracts in the life insurance settlement pool in effect;   one or more computers configured to register or have registered in an electronic database an ownership interest for the public pension system in the life insurance settlement pool and/or in each insurance settlement contract in the life insurance settlement pool;   one or more computers configured to electronically determine or have electronically determined a proportionate share of the life insurance settlement pool based on an amount of value provided by the public pension system for an investment in the life insurance settlement pool and on total assets in the life insurance settlement pool at the time of purchase;   one or more computers configured to pay out or authorize pay out of proceeds from the insurance settlement contracts;   one or more computers configured to electronically generate or have electronically generated an actuarial present value of the life insurance settlement pool or an actuarial present value for an undivided interest held by the public pension system in the life insurance settlement pool, and/or an actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool on a periodic or other basis, wherein the actuarial present value is calculated using a method to increase a value of the ownership interest in each of a plurality of the acquired current, in-force life insurance settlement contracts at each calculation period as a probability of death of a respective insured associated with a respective one of the life insurance settlement contracts increases and the death of the respective insured has not occurred; and   one or more computers configured to initiate communication of the actuarial present value of the life insurance settlement pool or the actuarial present value for the undivided interest held by the public pension system in the life insurance settlement pool and/or the actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool to at least one public pension system that owns an undivided interest in the life insurance settlement pool.   
   
   
       16 . The system as defined in  claim 15 , further comprising one or more computers configured to communicate the respective actuarial present value of the respective undivided interest in the life insurance settlement pool to each of a plurality of public pension systems holding respective undivided interests in the life insurance settlement pool. 
   
   
       17 . The system as defined in  claim 15 , further comprising one or more computers configured to generate and send a customized communication to each of a plurality of different public pension systems based on the respective actuarial present value of the undivided interest of the particular public pension system in the life insurance settlement pool and/or in each of the life insurance settlement contracts in the life insurance settlement pool held by that public pension system. 
   
   
       18 . The system as defined in  claim 15 , further comprising one or more computers configured to calculate or have calculated a UAL (unfunded actuarial accrued liability) amortization for at least one public pension system based at least on part on the actuarial present value for an undivided interest held by the public pension system in the life insurance settlement pool; and
 one or more computers configured to generate a communication based in part on the UAL amortization to a public pension system governing board.   
   
   
       19 . The system as defined in  claim 15 , further comprising one or more computers configured to electronically communicate a set of criteria to an insurance settlement contract selection agent for selection of life insurance settlement contracts for the life insurance settlement pool. 
   
   
       20 . The system as defined in  claim 15 , further comprising:
 one or more computers configured to receive an average weighted life expectancy for the life insurance settlement pool;   one or more computers configured to compare the average weighted life expectancy to actual mortality data for the insureds on the life insurance settlement contracts in the life insurance settlement pool; and   one or more computers configured to initiate communication of information on results of the comparison to a program for setting a price for the undivided interest in a secondary market for the insurance settlement contract pool.   
   
   
       21 . The system as defined in  claim 15 , wherein a plurality of the life insurance settlement contracts are life insurance settlement contracts that provide a single death benefit on the life of an insured. 
   
   
       22 . The system as defined in  claim 15 , wherein the predetermined limit is that the remaining life expectancy of the insured under the life insurance settlement contract is no more than 20 years. 
   
   
       23 . The system as defined in  claim 15 , wherein the predetermined limit is that the remaining life expectancy of the insured under the life insurance settlement contract is no more than 15 years. 
   
   
       24 . The system as defined in  claim 15 , further comprising
 one or more computers configured to access a database of electronic files for life insurance settlement contracts;   one or more computers configured to electronically select a plurality of the life insurance settlement contracts as the life insurance settlement contracts for the life insurance settlement contract pool based on the predetermined limit.   
   
   
       25 . The system as defined in  claim 15 , wherein the one or more computers are configured to generate or have generated the actuarial present value for each of a plurality of the life insurance settlement contracts, so that it comprises a sum of amounts calculated for every out year through a final year of an actuarial table appropriate to a respective insured associated with a respective life insurance settlement contract, wherein each amount calculated for every out year comprises a present value, at an interest rate, of a product of a probability that the insured for the life insurance settlement contract will die during such year multiplied by a death benefit. 
   
   
       26 . A system comprising:
 one or more computers configured to facilitate authorization of investment of one or more public pension system assets to obtain an undivided interest in a life insurance settlement pool that comprises a plurality of life insurance settlement contracts, wherein each insurance settlement contract either (a) provides a plurality of periodic payments during the life of an insured or (b) provides a single death benefit on the life of an insured, but in either case, the insured is not a beneficiary of the public pension system, and was selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit;   one or more computers configured to receive registration information that references the life insurance settlement pool and/or each insurance settlement contract in the life insurance settlement pool;   one or more computers configured to receive an actuarial present value of the life insurance settlement pool, or an actuarial present value of an undivided interest held by the public pension system in the life insurance settlement pool, or an actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool, on a periodic or other basis, wherein the actuarial present value is calculated using a method to increase a value of the ownership interest in each of a plurality of the acquired current, in-force life insurance settlement contracts at each calculation period as a probability of death of a respective insured associated with a respective one of the life insurance settlement contracts increases and the death of the respective insured has not occurred;   one or more computers configured to calculate electronically or have calculated electronically a UAL (unfunded actuarial accrued liability) based in part on the actuarial present value of the life insurance settlement pool, or the actuarial present value of the undivided interest held by the public pension system in the life insurance settlement pool, or a sum of the actuarial present values of the undivided interests held by the public pension system in the life insurance settlement contracts in the life insurance settlement pool;   one or more computers configured to calculate electronically or have calculated electronically a UAL amortization based at least in part on the UAL; and   one or more computers configured to communicate or have communicated a report or a network reference to the report to a third party that includes data based at least in part on the UAL amortization.   
   
   
       27 . The system as defined in  claim 26 , wherein the remaining life expectancy of each of the insureds in the life insurance settlement pool, when determined at least immediately after the acquisition, is such that (i) the total value of the public pension system assets, inclusive of the life insurance settlement pool, determined immediately after the acquisition of the life insurance settlement pool, is greater than (ii) the total value of the public pension system assets, exclusive of the life insurance settlement pool and inclusive of the one or more public pension system assets used for the investment just prior to the investment, the respective total values of (i) and (ii) being determined at the same point in time and in accordance with a same actuarially sound valuation method, so that the actuarial present value of the life insurance settlement pool assets will grow in value over time, thereby offsetting at least some of the fluctuations in the UAL for the public pension system. 
   
   
       28 . The system as defined in  claim 26 , wherein the actuarial present value that is received, individually, or in composite for the life insurance settlement pool, for each of a plurality of the life insurance settlement contracts, comprises a sum of amounts calculated for every out year through a final year of an actuarial table appropriate to a respective insured associated with a respective life insurance settlement contract, wherein each amount calculated for every out year comprises a present value, at an interest rate, of a product of a probability that the insured for the life insurance settlement contract will die during such year multiplied by a death benefit. 
   
   
       29 . A method for servicing a public pension system, comprising:
 generating, by one or more computers, or receiving a plurality of files or a reference or references to a plurality of files that form a life insurance settlement pool, wherein each file includes information on a life insurance settlement contract that either (a) provides a plurality of periodic payments during the life of an insured or (b) provides a single death benefit on the life of an insured, but in either case, the insured is not a beneficiary of the public pension system, and wherein each file includes information on an insurance settlement contract that was selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit;   issuing payment instructions and/or payment instruments to maintain each of a plurality of the life insurance settlement contracts in the life insurance settlement pool in effect;   registering, or having registered, in a database an ownership interest for the public pension system in the life insurance settlement pool and/or in each insurance settlement contract in the life insurance settlement pool;   determining, by one or more computers, or having determined, by one or more computers, a proportionate share of the life insurance settlement pool based on an amount of value provided by the public pension system for its investment and on total assets in the life insurance settlement pool at the time of purchase;   paying out or authorizing pay out of proceeds from the insurance settlement contracts;   generating, by one or more computers, or having generated, by one or more computers, an actuarial present value of the life insurance settlement pool or an actuarial present value for an undivided interest held by the public pension system in the life insurance settlement pool, and/or an actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool on a periodic or other basis, wherein the actuarial present value is calculated using a method to increase a value of the ownership interest in each of a plurality of the acquired current, in-force life insurance settlement contracts at each calculation period as a probability of death of a respective insured associated with a respective one of the life insurance settlement contracts increases and the death of the respective insured has not occurred; and   communicating, via an electronic network and one or more computers, the actuarial present value of the life insurance settlement pool or the actuarial present value for the undivided interest held by the public pension system in the life insurance settlement pool and/or the actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool to at least one public pension system that owns an undivided interest in the life insurance settlement pool.   
   
   
       30 . The method as defined in  claim 29 , wherein the communication step comprises the respective actuarial present value of the respective undivided interest in the life insurance settlement pool being communicated to each of a plurality of public pension systems holding respective undivided interests in the life insurance settlement pool. 
   
   
       31 . The method as defined in  claim 29 , wherein the communication step comprises generating and sending a customized communication to each of a plurality of different public pension systems based on the respective actuarial present value of the undivided interest of the particular public pension system in the life insurance settlement pool and/or in each of the life insurance settlement contracts in the life insurance settlement pool held by that public pension system. 
   
   
       32 . The method as defined in  claim 29 , further comprising the step of calculating or having calculated a UAL (unfunded actuarial accrued liability) amortization for at least one public pension system based at least in part on the actuarial present value for an undivided interest held by the public pension system in the life insurance settlement pool; and
 generating a communication based in part on the UAL amortization to a public pension system governing board.   
   
   
       33 . The method as defined in  claim 29 , further comprising electronically communicating a set of criteria to an insurance settlement contract selection agent for selection of life insurance settlement contracts for the life insurance settlement pool. 
   
   
       34 . The method as defined in  claim 29 , further comprising:
 receiving an average weighted life expectancy for the life insurance settlement pool;   obtaining information on a comparison of the average weighted life expectancy to actual mortality data for the insureds on the life insurance settlement contracts in the life insurance settlement pool; and   communicating information on results of the comparison to a program for setting a price for the undivided interest in a secondary market for the insurance settlement contract pool.   
   
   
       35 . The method as defined in  claim 29 , wherein a plurality of the life insurance settlement contracts are life insurance settlement contracts that provide a single death benefit on the life of an insured. 
   
   
       36 . The method as defined in  claim 29 , wherein the predetermined limit is that the remaining life expectancy of the insured under the life insurance settlement contract is no more than 20 years. 
   
   
       37 . The method as defined in  claim 29 , wherein the predetermined limit is that the remaining life expectancy of the insured under the life insurance settlement contract is no more than 15 years. 
   
   
       38 . The method as defined in  claim 29 , wherein the plurality of files are electronic files. 
   
   
       39 . The method as defined in  claim 29 , further comprising
 accessing a database of electronic files for life insurance settlement contracts;   electronically selecting a plurality of the life insurance settlement contracts as the life insurance settlement contracts for the life insurance settlement contract pool based on the predetermined limit.   
   
   
       40 . The method as defined in  claim 29 , wherein the one or more computers are configured so that actuarial present value that is generated for each of a plurality of the life insurance settlement contracts, comprises a sum of amounts calculated for every out year through a final year of an actuarial table appropriate to a respective insured associated with a respective life insurance settlement contract, wherein each amount calculated for every out year comprises a present value, at an interest rate, of a product of a probability that the insured for the life insurance settlement contract will die during such year multiplied by a death benefit. 
   
   
       41 . A method comprising:
 purchasing, or authorizing purchase, by a public pension fund, to obtain of an undivided interest in a life insurance settlement pool that comprises a plurality of life insurance settlement contracts, wherein each insurance settlement contract either (a) provides a plurality of periodic payments during the life of an insured or (b) provides a single death benefit on the life of an insured, but in either case, the insured is not a beneficiary of the public pension system, and was selected so that a respective remaining life expectancy of each of the respective insureds is within a predetermined limit;   receiving registration information that references the life insurance settlement pool and/or each insurance settlement contract in the life insurance settlement pool;   receiving an electronic file with an actuarial present value of the life insurance settlement pool, or an actuarial present value of an undivided interest held by the public pension system in the life insurance settlement pool, or an actuarial present value of an undivided interest held by the public pension system in each of the life insurance settlement contracts in the life insurance settlement pool, on a periodic or other basis, wherein the actuarial present value is calculated using a method to increase a value of the ownership interest in each of a plurality of the acquired current, in-force life insurance settlement contracts at each calculation period as a probability of death of a respective insured associated with a respective one of the life insurance settlement contracts increases and the death of the respective insured has not occurred;   calculating, by one or more computers, or having calculated, by one or more computers, a UAL (unfunded actuarial accrued liability) based in part on the actuarial present value of the life insurance settlement pool, or the actuarial present value of the undivided interest held by the public pension system in the life insurance settlement pool, or a sum of the actuarial present values of the undivided interests held by the public pension system in the life insurance settlement contracts in the life insurance settlement pool;   calculating, by one or more computers, or having calculated, by one or more computers, a UAL amortization based at least in part on the UAL; and   communicating or having communicated a report or a network reference to the report to a third party that includes data based at least in part on the UAL amortization.   
   
   
       42 . The method as defined in  claim 41 , wherein the remaining life expectancy of each of the insureds in the life insurance settlement pool, when determined at least immediately after the acquisition, is such that (i) the total value of the public pension system assets, inclusive of the life insurance settlement pool, determined immediately after the acquisition of the life insurance settlement pool, is greater than (ii) the total value of the public pension system assets, exclusive of the life insurance settlement pool and inclusive of the one or more public pension system assets used for the investment just prior to the investment, the respective total values of (i) and (ii) being determined at the same point in time and in accordance with a same actuarially sound valuation method, so that the actuarial present value of the life insurance settlement pool assets will grow in value over time, thereby offsetting at least some of the fluctuations in the UAL for the public pension system. 
   
   
       43 . The method according to  claim 41 , wherein the actuarial present value that is received, individually, or in composite for the life insurance settlement pool, for each of a plurality of the life insurance settlement contracts, comprises a sum of amounts calculated for every out year through a final year of an actuarial table appropriate to a respective insured associated with a respective life insurance settlement contract, wherein each amount calculated for every out year comprises a present value, at an interest rate, of a product of a probability that the insured for the life insurance settlement contract will die during such year multiplied by a death benefit.