Program for alternative funding of employee and retiree benefits

Abstract

An investment program for funding benefits by maintaining assets in the investment program that includes an employer owned trust account and at least one life, disability, health or annuity contract (including a terminal annuity) obtained directly or indirectly from a partially or wholly owned or non-owned captive insurance company. The insurance contract is purchased with assets from the trust account and the partially or wholly owned or non-owned captive insurance company is a least partially, wholly or non-owned by the employer. When paying or reimbursing benefits, the employer or the trust may pay the benefit and if the employer pays the benefit, the trust may reimburse the employer.

What is claimed is: 
     
         1 . A computer implemented method for funding benefits, said computer implemented method comprising:
 electronically accepting, by a computer, inputs related to specific employer information;   electronically determining, by a computer, an amount of funding to provide to an employer owned trust account;   electronically calculating, by a computer, what portion of said funding to use to purchase an annuity contract;   electronically determining, by a computer, whether to purchase said annuity contract from a third party insurance company or a partially or wholly owned or non-owned captive insurance company; and   electronically determining, by a computer, what portion of said annuity contract should be reinsured by said partially or wholly owned or non-owned captive insurance company if said at least one life, disability, health or annuity contract is purchased from said third party insurance company.   
     
     
         2 . The computer implemented method of  claim 1 , wherein said annuity contract is purchased from said third party life insurance company. 
     
     
         3 . The computer implemented method of  claim 1 , further comprising, estimating benefit amounts to be paid or reimbursed by said employer or said trust or said annuity contracts. 
     
     
         4 . The computer implemented method of  claim 1 , further comprising, determining what vehicles said at least one of said trust and said partially or wholly owned or non-owned captive insurance company invests assets in to generate additional assets. 
     
     
         5 . The computer implemented method of  claim 1 , further comprising determining said partially or wholly owned or non-owned captive insurance company invests assets in securities of said employer. 
     
     
         6 . The computer implemented method of  claim 5 , wherein said securities is short term commercial paper of said employer. 
     
     
         7 . The computer implemented method of  claim 1 , further comprising, determining whether said partially or wholly owned or non-owned captive insurance company should be partially owned by said employer or wholly owned by said employer. 
     
     
         8 . The computer implemented method of  claim 1 , further comprising, configuring said annuity contract to maximize a cash value of said annuity contract for a predetermined period of time, or to optimize at least one of a premium or a liability in accordance with an employer's needs. 
     
     
         9 . A computer implemented method for funding benefits and administering a pension plan termination, said computer implemented method comprising:
 electronically accepting, by a computer, inputs related to specific employer information;   electronically determining, by a computer, an amount of funding to provide to an employer owned trust account;   electronically calculating, by a computer, what portion of said funding to use to purchase at least one annuity contract;   electronically determining, by a computer, whether to purchase said at least one annuity contract from a third party insurance company or a partially or wholly owned or non-owned captive insurance company; and   electronically determining, by a computer, what portion of said at least one annuity contract should be reinsured by said partially or wholly owned or non-owned captive insurance company if said at least one annuity contract is purchased from said third party insurance company.   
     
     
         10 . The computer implemented method of  claim 9 , wherein said at least one annuity contract is purchased from said third party life insurance company. 
     
     
         11 . The computer implemented method of  claim 9 , further comprising, estimating benefit amounts to be paid or reimbursed by said employer or said trust or said at least one annuity contract. 
     
     
         12 . The computer implemented method of  claim 9 , further comprising, determining what commercially available vehicles said at least one of said trust and said partially or wholly owned or non-owned captive insurance company invests assets in to generate additional assets. 
     
     
         13 . The computer implemented method of  claim 9 , further comprising determining that said partially or wholly owned or non-owned captive insurance company invests assets in securities of said employer. 
     
     
         14 . The computer implemented method of  claim 13 , wherein said securities is short term commercial paper of said employer. 
     
     
         15 . The computer implemented method of  claim 9 , further comprising, determine whether said partially or wholly owned or non-owned captive insurance company should be partially owned by said employer or wholly owned by said employer. 
     
     
         16 . The computer implemented method of  claim 9 , further comprising, configuring said at least one annuity contract for a predetermined period of time, or to optimize at least one of a premium or a liability in accordance with an employer's needs. 
     
     
         17 . A system for funding benefits, said system comprising:
 a benefits provider configured to communicate with at least one of an employer owned trust account or employee owned trust account, a third party insurance company, and a captive insurance company;   wherein said benefits provider is configured to perform at least the following:
 provide funding to said trust account, said amount of funding having been determined by said benefits provider or a third party; 
 instruct said trust account as to what portion of said funding to use to purchase an annuity contract, said portion being determined by said benefits provider or said third party; 
 instructing said trust account as to whether to purchase said annuity contract from said third party insurance company or said captive insurance company; and 
 instructing said trust account as to what portion of said annuity contract should be reinsured by said captive insurance company if said at least one life insurance contract or non-cancelable accident and health insurance contract is purchased from said third party insurance company. 
   
     
     
         18 . A device for managing an annuity contract, comprising:
 an annuity management module for determining a minimum level of funding required to maintain the annuity contact by communicating with an employer and a trust associated with said employer.