Apparatus and method for creating a retirement medical program through a profit sharing plan and a pension plan retiree health account

Abstract

An employee benefit administration system and transform method for creating a defined contribution health care benefit. The system comprising: a Dual-Purpose Profit Sharing Plan; means for processing employee records for each of a plurality of employees, and for manipulating employee demographic data, personal data, employment data, payroll data, enrollment data, transaction data with employer plan data to account for plan activity over a predetermined time and to report compliance with relevant IRS Tax Code provisions; and means for storing the employee records and the manipulated data. The transform method implementing a definite predetermined formula to administer a payment mechanism that is a dual purpose profit sharing plan and at least one additional payment mechanism where such definite predetermined formula: calculates an allocation of contributions; calculates at least one disbursement of accumulated funds upon at least one predetermined event; and calculates distributions from at least one additional payment mechanism.

What is claimed: 
     
         1 . An employee benefit administration system comprising:
 a Dual-Purpose Profit Sharing Plan (DPPSP);   means for processing employee records for each of a plurality of employees, and for manipulating employee demographic data, personal data, employment data, payroll data, enrollment data, transaction data with employer plan data to account for plan activity over a predetermined time and to report compliance with relevant IRS Tax Code provisions; and   means for storing the employee records and the manipulated data.   
     
     
         2 . A transform method for creating a defined contribution health care benefit by implementing a definite predetermined formula to administer a payment mechanism that is a dual purpose profit sharing plan and at least one additional payment mechanism where such definite predetermined formula:
 calculates an allocation of contributions;   calculates at least one disbursement of accumulated funds upon at least one predetermined event; and   calculates distributions from at least one additional payment mechanism.   
     
     
         3 . The method of  claim 2 , wherein such definite predetermined formula limits contributions to the dual purpose profit sharing plan to 25% of aggregate employer contributions for employees participating for less than five years. 
     
     
         4 . The method of  claim 2 , wherein such definite predetermined formula calculates a subordination limit. 
     
     
         5 . The method of  claim 4 , wherein the subordination limit limits an aggregate disbursement from the dual purpose profit sharing plan. 
     
     
         6 . The method of  claim 5 , wherein the aggregate disbursement funds a retiree health pension plan benefit. 
     
     
         7 . The method of  claim 2 , wherein the dual purpose profit sharing plan receives a distribution from the at least one additional payment mechanism. 
     
     
         8 . The method of  claim 7 , where the at least one additional payment mechanism is not for an employee benefit. 
     
     
         9 . The method of  claim 7 , where the at least one additional payment mechanism provides a government payment. 
     
     
         10 . The method of  claim 7 , wherein the at least one additional payment mechanism provides payment due to sickness or injury, the permanent loss of a body member, or permanent disfigurement. 
     
     
         11 . The method of  claim 7 , wherein the at least one additional payment mechanism provides payment for workers' compensation. 
     
     
         12 . The method of  claim 2 , wherein each of one or more owners of the payment mechanisms own either directly or indirectly at least one life insurance policy as a split dollar contract. 
     
     
         13 . A medium communicated process where such process implements a definite predetermined formula to allocate a value of a life insurance contract owned by one or more parties to support a payment mechanism owned by each party where such definite predetermined formula takes at least one input to calculate:
 a life settlement value and   an ownership allocation for a cash value and a death benefit of such life insurance contract.   
     
     
         14 . The medium communicated process of  claim 13 , where at least one of the owned payment mechanisms is a dual purpose profit sharing plan. 
     
     
         15 . The medium communicated process of  claim 14 , where the at least one of the owned payment mechanisms is not for an employee benefit. 
     
     
         16 . The medium communicated process according to  claim 13 , wherein the definite predetermined formula computes an ownership allocation that is actuarially equivalent. 
     
     
         17 . The medium communicated process according to  claim 13 , wherein the at least one input includes a health risk adjuster. 
     
     
         18 . The medium communicated process according to  claim 13 , wherein the at least one input includes a claim request. 
     
     
         19 . The medium communicated process according to  claim 13 , wherein the at least one input includes a health expectancy. 
     
     
         20 . A method for using an annuity product to create an arrangement offering payments of amounts to employees for personal injuries or sickness, the method comprising the steps of:
 acquiring one of a life annuity or a life insurance contract for a premium;   placing the acquired contract in a trust, such trust to be an insurance company;   calculating a minimum lifetime aggregate medical care reimbursement benefit limit equal to a factor that is at least 500% multiplied by the premium received for the arrangement;   offering a medical reimbursement policy benefit to a beneficiary that is greater than the calculated minimum lifetime aggregate medical care reimbursement benefit limit.