An improved pension benefits system for enrolledemployees (el, e2, e3...) of subscriber employers (el, e2,e3...) including a master trust institution (10) and a lifeinsurer institution (12). The master trust institution (10)computes and receives each subscriber employer's periodicpayment (cl, c2, c3...) thereinto based primarily upon thatemployer's number of current employees (el, e2, e3...),their ages and monthly earnings; purchases and retains alife insurance policy from the life insurance institution(12) covering each enrolled employee (el, e2, e3...);invests in available securities to generate interest income;provides specific accurate future projections of periodicbenefits (18) for retirement, death, or disability; receivesall life insurance policy proceeds upon the death of eachenrolled employee (el, e2, e3...); and distributes allperiodic payable benefits (18). Funding a significantportion of payable periodic benefits (18) by life insurancepolicy proceeds retained within the master trust institution(10) is one truly unique feature of this system; lifeinsurance having prescribed amounts of whole life andprogressive one-year term dividend rider components is yetanother. The level of benefits (18) begins to increaseyearly, preferably at a fixed rate simple, from the date ofenrollment of each employee (el, e2, e3...), to help deferthe effects of inflation on future purchasing power offuture payable benefits.
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