Importance

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Abstract

An automated system for managing the assets and liabilities of Non-Qualified Deferred Compensation (NQDC) plans. This system uses information from money managers, insurance and annuity carriers, plan sponsors and plan participants to track and report the assets and liabilities of NQDC plans on a daily basis. NQDC plans have typically been defined benefit (DB) plans where funding, if any, occurred on a very informal basis. Due to previous systems limitations of insurance carriers, plan sponsors did not have on-line access to the value of their investments or the value of the liabilities of the plan. Furthermore, plan participants did not have on-line access to information about their plan. The present system, in addition to handling DB plans, also manages defined contribution (DC) plans, and allows participants to have immediate access to the value of their benefit. The system interfaces with fund managers and insurance and annuity carriers via modem links and with plan sponsors and participants via modem, fax or automated voice response units. The system calculates the value of the liabilities of the plan, the value of the assets of the plan and produces a report comparing the status of each on a daily basis. The system reviews the balance and levels that the sponsor has provided and determines whether changes in asset allocation are required. If changes are required, the system either provides the relevant information to the plan sponsor or directly to the asset manager, whether it be a mutual fund, insurance policy, or annuity that needs adjustment. The system also projects asset and liabilities into the future, further providing relevant information to the plan sponsor on a near real-time basis.

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First Claim