Our Value Proposition to Financial Professionals

Transcription

1 RETIREMENT SERVICES Our Value Proposition to Financial Professionals PRODUCER USE ONLY NOT FOR CLIENT DISTRIBUTION INVEST INSURE RETIRE

2 The of Our Value Proposition We believe in the value financial professionals provide to plan sponsors, and to us. As a provider with nearly 60 years in the retirement industry, we want to employ our knowledge and resources to help you grow your business. MassMutual s unique blend of personalized service, manager-of-managers investment program, comprehensive communications, and innovative technology built on a foundation of integrity work together to provide you with solutions you need, when you need them. In an increasingly complex world, MassMutual helps simplify the management of retirement programs through our proactive approach. Offering financial strength and expertise in total retirement services, MassMutual is prepared to work with you to meet your clients challenges and to help participants achieve their retirement goals. MassMutual provides comprehensive services and constant oversight to retirement plan types of all sizes, including defined benefit, 401(k), 403(b), governmental 457(b), Taft-Hartley, and non-qualified deferred compensation plans. Enhance Your Value With a Total Retirement Solution Offering your clients a defined contribution, defined benefit and non-qualified deferred compensation plan integrated platform helps you to serve them better and provide value-added consultative services in areas like investment portfolio strategy and plan design. MassMutual s integrated solutions benefit you by providing your client: Administrative efficiencies Streamlined and consistent plan reporting A total retirement approach to participant communications, including one call center, a combined defined benefit and defined contribution statement, and an integrated Web site Greater appreciation by participants of their total benefit and integrated retirement planning The needs of each financial professional are different. We ve designed our products and services so we can provide flexible solutions to you. Working with MassMutual, you are able to customize your level of involvement and know that your clients are in good hands. We know your time is valuable. The information provided in this booklet will give you an overview of our products and services, but most importantly, it helps you to answer the question, How can MassMutual help me grow my business and exceed my clients expectations?

3 INTEGRITY This virtue has been the foundation of MassMutual s business practices since Massachusetts Mutual Life Insurance Company was founded more than 150 years ago. MassMutual holds its employees to the highest ethical and fiduciary standards, and supports legislative and regulatory efforts to implement policies that protect investors. We are proud of our reputation as a forward-thinking company that remains true to its conservative nature. This helps us to continue on our path of outstanding performance and financial strength. At a Glance: MASSMUTUAL FINANCIAL GROUP More than $350 billion in assets under management 1 Ranked 83rd among the Fortune Ranked 3rd among Fortune s most admired companies in America 3 Financial Strength ratings 4 among the highest in any industry: AAA rating from Standard & Poor s Corporation (Extremely Strong) A++ rating from A.M. Best Company (Superior) Aa1 rating from Moody s Investors Services Inc. (Excellent) AAA rating from Fitch (Exceptionally Strong). MASSMUTUAL RETIREMENT SERVICES Nearly 60 years serving retirement plans $30.6 billion in assets under management as of 12/31/2004 More than 965,000 participants and 4,600 clients MassMutual s financial strength and expertise are evidence of our commitment to clients and the services we provide. With the continued consolidation of retirement services providers, your clients need products and services they can trust to withstand change in the marketplace. Our financial ratings 4 set us apart from many of our competitors. Offer your clients a solution from a company they can rely on. Integrity. In today s business environment, it matters more than ever. 1 Assets under management as of March 31, Assets under management include assets and certain external investment funds managed by our subsidiaries. 2 Fortune Magazine, April Fortune Magazine, March Ratings are for Massachusetts Mutual Life Insurance Company as of 7/01/05 and are subject to change. 1

4 PEOPLE Employing the right people is vital to the success of any business. At MassMutual, our people form the roots of our retirement programs. Our associates appreciate how important you are to the sales process, and are committed to serving you so you can better serve your clients. Personalized service is the key to every product and service MassMutual offers, and like you, we have the experience and expertise to deliver better plan services to sponsors and participants. MANAGING DIRECTORS 5 Our Managing Directors are experts in the retirement industry and in MassMutual retirement products and services, spanning the 401(k), not-for-profit, defined benefit, Taft-Hartley and non-qualified market segments. They actively reach out to you with periodic updates about MassMutual and provide perspectives on industry happenings. Ready to respond to you at any time, think of them as an important resource to help you build your business. THE TRANSITION TEAM MassMutual offers an industry-leading, efficient conversion process managed by experienced professionals who focus on every detail of the transition. They understand the value you bring to the table, and will keep you as informed of the process as you want to be. You don t have to get involved in the time-consuming administrative tasks that go along with the conversion process. MassMutual s dedicated conversion team is trained in all aspects of plan administration. The assigned transition manager plans, installs and facilitates a smooth transfer from the prior record keeper, keeping both you and your client updated during weekly conference calls. Set apart from other providers in the industry, MassMutual s cutting-edge infrastructure allows for a seamless conversion period. We were the first in the industry to complete a zero blackout conversion and strive to limit the blackout period on every plan we convert to no more than 24 hours. Timely delivery of information decreases the number of questions you could get from the sponsor regarding a process that is in our hands. RELATIONSHIP MANAGERS MassMutual s relationship managers understand the retirement business inside and out. As the go-to people for virtually all of your needs, they are committed to serving you and your clients. Dedicated relationship managers can provide you with comprehensive details about your client, and work in coordination with you to assess plan health and provide effective and efficient solutions to recognized challenges e.g., a communications program targeted to increase low participation rates. Relationship Managers take the time to continuously monitor their clients plans and provide proactive strategic planning. A Relationship Manager participates on every technology or services enhancement project to help ensure the needs of you and your clients are met. The insight they provide is crucial to the success of new initiatives. COMMUNICATION SPECIALISTS We understand that many financial professionals conduct enrollment and investment education meetings for their client s participants. MassMutual can assist you or facilitate the process by providing a dedicated, seasoned staff of communication specialists that you can tap into when necessary. If you are requested to be in two places at 5 Managing directors are registered representatives of MML Investors Services, Inc., 1295 State Street, Springfield, MA

5 The of Uncompromising Service once, or would like to take advantage of our services, our communication specialists will be happy to step in and meet with participants to deliver our revolutionary participant education programs. They are also available to teamteach with you, providing extra support to your clients. Again, the level of involvement is up to you just know we are there if you need us. MASSMUTUAL ERISA ADVISORY SERVICES SM It is a challenging time in the financial services industry, where the regulatory landscape is evolving constantly. Plan sponsors have the leading role in maintaining their company s ERISA-qualified retirement plan. We monitor the marketplace, and do our homework, so we can provide you and your clients with comprehensive, yet understandable information on ERISA, tax and plan testing issues as well as other regulatory issues. We have materials to help you offer consultation on this topic. We offer a Fiduciary Review Kit, which contains tools such as a 404(c) compliance guide and checklist, comparison charts, calendars, and more. We take it one step further. As plan fiduciaries, sponsors need to understand their roles and liabilities and we take this to heart. You benefit from a dedicated consultant, assigned to your client s service team, to help ensure 404(c) compliance and help with plan design. This person is on hand to answer your questions and provide assistance around regulatory issues. CLIENT ADVISORY COMMITTEE When it comes to input about our retirement products and services, we want to make sure we hear it right from the source the plan sponsors. Back in 2004, we implemented the Client Advisory Committee (CAC), which consists of plan sponsors from both large and small markets in various industries. Members of the CAC are asked to provide feedback, as well as help MassMutual assess their current and future plan administration and service needs. We want you to know that we won t lose sight of our commitment to enhancing our retirement solutions for you. Using this input, MassMutual s product and services continue to evolve above and beyond their current states. Account Managers and Customer Service Representatives You can spend time focusing on growing your business because our knowledgeable customer service representatives handle the daily operations of your clients. These associates strive to exceed the expectations of you, your clients and their participants every day. Each client is assigned an account manager to oversee the plan and answer administrative questions. Our customer service representatives in our call center are available to answer participants questions from 8 a.m. to 8 p.m EST reducing the workload of your clients. 3

6 INVESTMENTS As a seasoned investment professional, you may have your own investment selection process that works. Know that if you want assistance, our investment professionals are here to team up with you. You are challenged with providing an investment program that helps sponsors fulfill their fiduciary obligations while allowing plan participants to pursue their retirement goals. For these reasons, we offer the MassMutual Investment Program, which features investment options anchored by the sub-advised MassMutual Funds 6 along with a carefully selected array of additional retail investment options. MASSMUTUAL PREMIER FUNDS AND MASSMUTUAL SELECT FUNDS The MassMutual Funds are the cornerstone of our investment line-up and comprise two families: MassMutual Premier Funds and MassMutual Select Funds. MassMutual affiliates Babson Capital Management and OppenheimerFunds serve as portfolio managers for the MassMutual Premier Funds. Unaffiliated asset managers, including boutique, institutional and well-known names from across the industry, handle portfolio management responsibilities for the MassMutual Select Funds. These investment options feature a sub-advised structure in which MassMutual serves as the overall investment advisor, with these specialized investment companies handling the day-to-day management of the assets. These funds span the broad spectrum of asset classes and investment styles. MassMutual offers two approaches to investing in the MassMutual Funds: a group annuity contract or a registered platform. The registered product offers direct access to mutual funds, while the group annuity product offers separate investment accounts that invest in many of the same mutual funds offered through the registered product. THE POWER OF THE SUB-ADVISED STRUCTURE MassMutual s sub-advised platform offers some important features that other structures may be unable to provide. The following is a list of the benefits of a sub-advised structure: MassMutual has the flexibility to seek out the best available managers from throughout the investment management universes. We select sub-advisors based on our own carefully developed, meticulous selection process. We have direct access to portfolio managers, which allows us to oversee their holdings and management activity and provide reporting for you and your clients. Our investment options are retirement-focused and only available to MassMutual retirement plans and accounts. Because of this, they may not be as vulnerable to the cash flow fluctuations that often affect funds that include non-retirement account assets. By controlling access to these options, we can monitor market timing and redemptions more effectively. We can replace management firms seamlessly, when necessary, with virtually no disruption to the sponsor or participant. Our due diligence process provides constant and consistent oversight of the investment subadvisors we select. Plus, we provide fiduciary indemnification on our MassMutual Funds a benefit to you and your clients. While our sub-advised process grants us access to more resources than most retail complexes, it also enables us to share this information with you. We hear information first-hand and provide custom reporting that can help you conduct your reviews for those clients who rely on your investment due diligence process. 6 MassMutual Funds is a marketing designation for the MassMutual Premier Funds and MassMutual Select Funds and is not the legal name for these two fund families or the underlying mutual funds offered. 4

7 MassMutual asks tough, thought-provoking questions on behalf of their clients they leave no stone unturned. Peter Hable, Portfolio Co-Manager, Select Strategic Balanced (Salomon/Western Asset) MASSMUTUAL S DUE DILIGENCE PROCESS When it comes to the MassMutual Funds, MassMutual adds value to the sub-advised approach by bringing an exceptionally rigorous due diligence process to bear on the sub-advisors we hire to manage our investment options. Our line-up includes some of the most wellregarded managers in the business managers who have historically put up a track record of success in their chosen discipline and have proven to us they should be part of our line-up. Past performance is not a guarantee of future results. Therefore, we rely on a forward-looking process that focuses on the future rather than just on past performance to ensure the retirement plan s investment portfolio is positioned to take advantage of all market opportunities. We monitor our managers on a daily, monthly, quarterly and yearly basis using a wide range of metrics according to strict quantitative and qualitative standards. We keep you informed with regular reports based on constant analysis. MASSMUTUAL AN INVESTMENT FIDUCIARY With the MassMutual Funds, we can help you and your clients fulfill fiduciary roles by putting our due diligence capabilities to work for your benefit. We take responsibility for the initial selection, ongoing monitoring and retention or replacement of the sub-advisors to the MassMutual Funds. We back this up in writing by providing indemnification for losses resulting in the event we fail to perform this role as promised. In addition, we offer assistance in developing a sound and consistent Investment Policy Statement. You and your clients can rely on our integrity and expertise. A TEAM OF EXPERIENCED INVESTMENT PROFESSIONALS Our expert team of Chartered Financial Analyst Charterholders and candidates for this designation are the heart of our due diligence process. They analyze, select and monitor the investment managers for the program and have the expertise and awareness to understand goals, objectives and fiduciary responsibilities. They have the knowledge and tools to assess portfolio manager performance and management activities. The work this team does provides an additional layer of oversight to help you help plan sponsors meet their fiduciary obligations. Lifestyle Investment Options MassMutual offers different lifestyle investment strategies. The MassMutual Select Destination Retirement Series provides participants professional investment management and monitoring as well as diversification all in one investment. Based on a target retirement date, the most important feature is a professionally managed, automatic roll down process that seamlessly invests more conservatively as retirement nears. Other Lifestyle Asset Allocation Strategies are available that invest in some combination of stocks, bonds and money market securities. These include balanced, risk-focused and retirement-date-focused options. A Defined Benefit to You Our Asset/Liability Management Service leverages our expertise in analyzing defined benefit liabilities and uses the capital market assumptions from a leading expert in asset allocation. Using this information, we can provide you and your clients with an investment solution designed to increase the probability of generating an optimal rate of return at a manageable level of risk. We can work together to develop and refine an appropriate asset allocation strategy to meet the plan s future funding liabilities. Additionally, we offer the benefit of ongoing guidance through MassMutual s Discretionary Asset Management Service, which provides you with information and analysis to strengthen your position as being actively involved in developing, monitoring and adjusting the asset allocation based on changing economic and market conditions. I feel like I am taking a final exam 4 times a year. Mark Seferovich, Portfolio Manager Select Small Cap Growth (Waddell and Reed) 5

8 COMMUNICATIONS Our revolutionary communication programs are designed to generate awareness and a call to action for both participants and the sponsors. These programs are also designed to accommodate you, depending on the level of involvement you desire. You determine how and when to be involved in the development and execution of a participant communications strategy. Direct mail, electronic and face-to-face communications (including communication and investment meetings) can be used to introduce MassMutual and promote the benefits of saving for retirement. You can conduct all meetings or MassMutual can assist with these sessions. We can work closely with you as a key expert to determine the most appropriate strategy to design effective communications campaigns. The relationship manager and seasoned communication professionals coordinate implementation and ongoing strategies with your input and direction. PARTICIPANT COMMUNICATIONS THAT MAKE YOU A PROBLEM SOLVER People are inundated with information so it s important that our communications speak to participants in a meaningful way. We knew the traditional, off-the-shelf method of communicating with participants about the importance of retirement planning was not effective enough, and sponsors wanted more help. Enter our behavioral approach to participant communications. THE BEHAVIORAL APPROACH At MassMutual, we continue to look for ways to help participants effectively reach their retirement goals. Lumping employees together based on their age or job title can be ineffective because these demographics do not necessarily correlate to how employees feel about saving and investing. People act differently based on experience (vast or limited; positive or negative). This reaction is the emotional component of investing and can range from confident to apprehensive, cutting across demographic clusters of income, education, age and gender. By targeting behavior, our materials reach out to participants in a way that s comfortable and consistent with their personal approach and prepares them for the future. We believe providing investing solutions according to a person s comfort level will help prepare employees to enroll and allocate contributions appropriately. How does this relate to you? A healthier plan means a happier client. PREPARED USA SM Preparing for retirement can be viewed as an interruption and a daunting task for some employees. We ve built our behavioral approach around the theme Prepared USA, which portrays preparation as a destination where an employee can find comfort, confidence and the peace of mind that comes with taking positive steps toward preparing for retirement. Our behavioral approach offers the following solutions at different levels of interest and expertise, and enables participants to pick the path to Prepared USA that s right for them: I know the way to Prepared USA is for employees who like investing. We offer research and fact gathering and direct them to investment options from which to choose. I d like a map to Prepared USA is for employees who want guidance when choosing retirement plan investments. We offer guidance from Morningstar Associates, a risk quiz and custom portfolios built from the investments in their plan. Show me the way to Prepared USA is for employees who have little to no experience in investing they want experts to show them the way quickly and easily. These employees can be directed to appropriate asset allocation investment solutions available in their plan. 6

9 The of Information CAMPAIGN MANAGEMENT You and your MassMutual representative can initiate campaigns targeted to different actions, (e.g. transition, enrollment, deferrals, investments, etc.). These campaigns are supported by sophisticated campaign management software that enables MassMutual relationship managers to examine plan data for trends; automate distribution of materials and messages; and provide you and your clients with detailed measurement of participant activity and campaign results. Relationship and account managers can work directly with you to take a look at this information and recommend an aggressive campaign to help employees take positive steps toward planning for retirement. We can track the success metrics of each campaign and work with you to make necessary adjustments for even more success in the future. This makes you a problem solver to your clients. E4 ELECTRONIC ENHANCED ENROLLMENT EXPERIENCE We are empowered by the behavioral approach to reach participants. We ve taken this energy to another level and developed e4, a wireless enrollment program and an innovative extension of Prepared USA SṂ e4 is a fun, intuitive, and simple experience for participants empowering them to take action and save for retirement during enrollment meetings. Using state of the art technology, e4 creates a wireless network in the classroom. Each participant will receive a pocket PC loaded with his or her personalized plan data to use during the meeting. The MassMutual communication specialists will have a special handheld device, along with an easy to follow presentation, to walk participants through the investment education and enrollment processes while being able to react in real time to action taken by participants. Your sponsors benefit because their participants can enroll at the meeting, alleviating paperwork and questions. During our pilot e4 meetings, enrollment rates have been as high as 80%. PARTICIPANT INFORMATION SERVICES By calling our FLASH sm toll-free telephone line, available in English and Spanish, participants can quickly access automated information or speak with a knowledgeable customer service representative in our Participant Information Center. Multi-lingual support is available. Using The Journey SM, MassMutual s award-winning participant Web site, participants can access comprehensive information about their retirement plan and account, 24 hours a day, seven days a week. Sponsor Communications A Package of Solutions for Your Clients We offer materials for you to provide your clients about MassMutual s products and services. Our highly creative communication professionals have made it easy for you through the development of a strategic selling system creating materials that bring to life our various product lines and services. The system is designed for you to strategically select brochures and flyers around the individual areas you d like to highlight and package them in a folder for your sponsor. 7

10 TECHNOLOGY Managing the retirement savings plan is probably just one of your client s many responsibilities. Therefore, we know that it has to be easy to do business with us. Our technology is a complement to our people because it provides seamless delivery making plan administration effective and easier for your clients. RECORDKEEPING AND ADMINISTRATION From the time participants become eligible, until they retire, MassMutual s proprietary recordkeeping system handles the key administrative events. By eliminating many day-to-day processing tasks and automating functions, you and your clients can focus on other business responsibilities. And, we won t let our technology become obsolete we continually enhance and upgrade our systems to improve services and keep plans in regulatory compliance. TOTAL RETIREMENT CENTER ONLINE TOOLS FOR YOU AND YOUR CLIENTS Timely access to information and transactions are the foundation of superior customer service. Designed for dynamic interactions, MassMutual s plan sponsor Web site, the Total Retirement Center, provides easy access to secure, two-way, electronic information exchange capabilities. This blend of high technology and personalized service allows the administrative staff to focus on strategic plan responsibilities, instead of day-to-day processing. The Total Retirement Center offers exceptional control and the convenience of managing retirement plans from a single Web site. The Total Retirement Center provides: Automated, electronic submission of contributions Easy transfers of demographic and compensation data The latest investment performance information Loan monitoring and administration Financial, participant, loan and other on-demand reports Automated s alerting you and your sponsor of important plan activity Detailed plan information and event summary Industry and compliance updates/alerts. As mentioned above, plan sponsors can easily perform data transfers of demographic and compensation data. This capability interfaces seamlessly with MassMutual s campaign management system. For example, by providing comprehensive employee demographic files, MassMutual s integrated systems can automatically: Calculate participant eligibility; Send out personalized enrollment materials; and Provide personalized action packages when a participant terminates or retires. This technology is available to defined contribution 401(k), 403(b), and governmental 457(b), defined benefit and total retirement services plan sponsors. With permission from your clients, you can have the ability to access all of their plan information on the TRC at your convenience. OUR PARTICIPANT WEB SITE: THE JOURNEY SM Using The Journey SM, MassMutual s award-winning participant Web site, participants can access personalized retirement plan information, execute transactions, review investment performance, initiate automatic rebalancing, model and request a loan, or plan for retirement. 8

11 The of High Tech High Touch On The Journey SM, 401(k), governmental 457(b), 403(b), and Taft-Hartley plan participants can access: statement on demand to view a statement for any period up to one year within the past two years; general information and learn more about retirement and investing using Quick Study calculators and the Morningstar Learning Station; investment performance or the details of investment options, including profiles and analysis prepared by Morningstar Inc.; and guidance and advice tools from Morningstar Associates 7, where participants who need more help in making investment decisions can get personalized recommendations for the most appropriate retirement goal, savings rate, and investment selection. For defined benefit clients, active and terminated vested participants, and retirees have online access to projections. Participants can enter their expected retirement date or retirement age to view monthly benefit projections. With an unlimited number of scenarios available, these modeling tools make the defined benefit plan come alive to participants. MassMutual is a company that is built on a foundation of trust, honor, integrity and an ongoing loyalty to you. We put our people, technology, investments and communications to work so that together, we have the power to prepare sponsors and participants with a comprehensive retirement program. To learn more about how MassMutual can help you grow your business, get in touch with a MassMutual Retirement Services sales associate or call The Journey alleviates work for you and your clients, and keeps participants informed. ONLINE RESOURCES SPECIFICALLY FOR YOU MassMutual has designed a Web site, located at specifically to include information dedicated to financial professionals. You can quickly and easily browse the site to learn about MassMutual s products and services, and download full-color marketing materials, including product guides and sponsor-ready brochures. 7 Morningstar Associates, LLC, is a registered investment adviser and a wholly owned subsidiary of Morningstar, Inc., and is not itself a NASD member firm. 9

12 Investors should consider an investment s objectives, risks, charges and expenses carefully before investing. For this and other information, see a fact sheet or the applicable prospectus available by calling Read it carefully before investing. Massachusetts Mutual Life Insurance Company and affiliates, Springfield, MA Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. MassMutual Financial Group is a marketing designation (or fleet name) for Massachusetts Mutual Life Insurance Company (MassMutual) [of which Retirement Services is a division] and its affiliates. Securities offered through registered representatives of MML Investors Services, Inc., 1295 State Street Springfield, MA RS C: