Magnify your market opportunities not your efforts.

Transcription

1 A Solution for Third Party Administrators (TPAs) Magnify your market opportunities not your efforts. For plans up to $5 million in assets Edward Jones Needs-based Retirement Strategies FOR TPA USE ONLY. NOT FOR USE WITH THE PUBLIC.

2 Smaller businesses and organizations are the fastestgrowing segment of the defined contribution market, representing over $650 billion in assets. Of that amount, an estimated $50.2 billion is in motion as sponsors search for new providers to service their plans.* With MassMutual s solution for retirement plans up to $5 million in assets, you can hone in on this opportunity to grow your business. *Retirement Research Inc., April 2015

3 Take a closer look at your market opportunity MassMutual s solution for plans up to $5 million in assets We know that as a third party administrator, you are always looking for ways to build upon the success of your business. We ve packed our program for plans up to $5 million in assets with all the features you and your clients have come to expect, while streamlining management for your customers. Highlights Streamlined product design and sales process for easier prospecting Pricing: Transparent known up front Banded automatic price reduction as plan assets grow to help retain clients Industry-leading flexibility Service models Third Party Administrator (unbundled) Local service through a TPA Flexibility Bundled Registered Mutual Fund investment platform, with broad selection of investment options No proprietary investment requirements Choose from multiple investment menus based on MassMutual s investment platform Multiple target date options from different investment families Stable value options available Plan types 401(k) and 403(b) Access to Fiduciary Assure (see back cover for disclosures) MassMutual s commitment to the Third Party Administrator (TPA) business model is extremely important as it continues to represent more than half of our total plans. In an industry where TPAs have many choices, the MassMutual difference sets us apart. Come take a closer look at our solution for plans up to $5 million in assets. 1

4 Focus on service A robust retirement plan for your clients an easy-to-handle package for you At MassMutual, we believe everyone deserves a high-quality retirement plan. That is why we re offering a robust program that combines innovative and attractive features for your clients, while keeping things simple for you. Plan sponsor services MassMutual s Investment Program * Our investment program comprises more than 200 investment options, including over 50 MassMutual Funds, which span a broad spectrum of investment types and styles. Investments are managed by some of the most well-regarded institutional, retail and boutique investment managers from across the industry. In addition, you may choose from any option within each menu with no proprietary investment requirements. MassMutual s Third-Party Certification Mesirow Financial one of the nation s leading financial services firms, specializing in quantitative analysis, fundamental analysis and macroeconomic research has independently certified the soundness of MassMutual s investment identification, screening and monitoring processes. Fiduciary Assure Fiduciary Assure helps you and your plan sponsor clients manage the responsibilities associated with investment selection and monitoring. With this service, Mesirow Financial explicitly assumes fiduciary responsibility for any and all plan investments that are on the Mesirow Financial Elite List.** Transition Services A dedicated MassMutual professional will work with your clients to make switching from previous providers or setting up new plans as efficient as possible. Recordkeeping/Administration MassMutual s robust recordkeeping system accurately and efficiently tracks plan(s) and participant accounts. Our system architecture and real-time updates provide quick and efficient benefit processing, financial integrity and on-demand access to information. Total Retirement Center (TRC) website The TRC provides timely access to information sponsors need and quick administration of the day-to-day plan processing. The TRC allows sponsors to easily access plan reports, process loans and requests for hardship withdrawals, monitor plan investments and efficiently administer the plan in a variety of ways. 2 * MassMutual Funds is a marketing designation referring to the MassMutual Premier Funds and MassMutual Select Funds; it is not the legal name for these two fund families or the underlying mutual funds offered. ** The specific instances in which a party may be entitled to indemnity are set forth in detail in the agreement between the plan sponsor and Mesirow Financial, and nothing herein is intended to modify that agreement.

5 Driving Participant Action Consumer Preference Innovation Action Messages Account Statement Participant Action Behavioral Finance Personal Interactions 24 / 7 Access Data Analytics Participant services We know participants aren t thinking about retirement every day. So we think about it for them. Our strategy seeks to understand participants as individuals and reach them with actionable information they need via the medium through which they are most likely to be receptive to the message. There are a number of ways MassMutual is able to reach out to participants and encourage them to make good decisions on their way to retirement. What s New? allowing the participants to choose the area that best fits their interest as it relates to retirement. Participant Information Call Center Our highly trained customer service representatives are available Monday through Friday, 8 a.m. to 9 p.m. ET. Access to multilingual services is available as well. Participant Statements Participants will receive highly personalized statements with the information they need to track their progress toward their retirement goals. Statements are also available via the MassMutual RetireSmart website. Ongoing Education and Communication MassMutual s ongoing participant communication and education program is targeted, effective and simple. Using our behavioral economic approach to education, the program is designed to help participants take the action they need to be retirement ready. MassMutual RetireSMART Participant Website Our participant website offers a range of tools and access to important account information while also allowing participants to perform a variety of transactions when it is convenient for them. We also offer an automated voice response system for information and certain transactions. The MassMutual RetireSmart website may be used as a resource for participants looking to expand their knowledge and understanding of retirement topics, and how retirement fits into their overall financial picture. The website includes an interactive format and is organized into three sections Where Should I Be?, Calculators and 3

6 See why we re a provider of choice Industry Awards and Recognition We re a FORTUNE 100 company 1 with many awards including: First mutual company in the life insurance industry category to be named a World s Most Ethical Company (2014) 2 41 PLANSPONSOR best-in-class honors two years in a row (that s 82 awards from ) ContactCenterWorld top performing call center 7 years in a row ( ) 1 FORTUNE Magazine, May Ethisphere Institute, an independent center of research promoting best practices in corporate ethics and governance, March 2015 * 2013 DCP Advisor Satisfaction Survey Build your business on a strong foundation MassMutual has been around for 160 years with over 60 years experience in the retirement industry. Third Party Administrators put their trust in MassMutual because we are: Strong MassMutual is uniquely positioned to succeed in the retirement plan business, and historically we have remained strong during changing market conditions. Our rare combination of mutual governance, financial strength and commitment to the Retirement Services business makes us a compelling provider of choice. Intermediary Centric We take the role of the financial intermediary seriously. The knowledge and expertise the intermediary brings to a retirement plan helps ensure a good fit between MassMutual and the plan sponsor benefiting all parties. We believe so strongly in the importance of the intermediary s role that we won t quote business where there is no intermediary involvement. MassMutual s Retirement Services Division ranked #1 in seven key categories important to intermediary satisfaction.* Participant Focused We are passionate about participant retirement success. Using intelligent analytics, we strive to move participants beyond education to action with our unique approaches to behavioral communications and targeted marketing campaigns. Experienced MassMutual has one of the most experienced teams in the retirement industry. We understand the complexities of the industry and its trends, and we apply that knowledge to our product, service and technology strategies. Longer employee tenure results in continuity of knowledge and service. Flexible and Responsive Our industry leading flexibility (e.g., multiple service models, broad investment selection, choice of plan types) provide sponsors and financial intermediaries with truly needs-based retirement solutions. Our people have a passion for service and are responsive to client needs. Innovative MassMutual is at the forefront of innovation in the retirement services industry. We take an innovative approach and apply new technology to all areas of our business. From product development to customer service, we provide clients with the latest tools and plan offerings available. 4

7 Magnify your opportunity with MassMutual Step 1 Choose investment menu TPA Asset Band Tier 1 Tier 2 Tier 3 $250,000 $500, % 0.95% 0.70% $500,000 $750, % 0.55% 0.30% $750,000 $1,000, % 0.40% 0.15% $1,000,000 $2,000, % 0.05% -0.20% $2,000,000 $3,000, % -0.05% -0.30% $3,000,000 $5,000,0000* 0.10% -0.10% -0.35% *Custom pricing available for plans >$5 million Step 2 Adjustment for average participant balance (+/-) Average Participant Balance Asset Charge Adjustment <$10, % >$10,000 $25, % >$25,000 $40, % >$40,000 $75, % >$75,000 $110, % >$110,000 $145, % >$145, % Note: Adjustment is for average participant balance at time of transition Step 3 Determine commission schedule option Option 1st Year Gross Contributions Years 2+ Gross Contributions Trail Year 1 Trail Years 2+ Cost # % 0.50% 0.55% # % 0.25% 0.30% # % 0.25% 0.25% #4 0.10% 0.10% 0.10% #5 0.15% 0.15% 0.15% #6 0.20% 0.20% 0.20% #7 0.25% 0.25% 0.25% #8 0.30% 0.30% 0.30% #9 0.35% 0.35% 0.35% # % 0.40% 0.40% # % 0.50% 0.50% # % 0.75% 0.75% # % 1.00% 1.00% 1 Option #1, #2, #3 are not allowed under $1 million. Quality product, simple administration and competitive pricing Easy, three-step pricing process MassMutual s three-step pricing process for plans up to $5 million in assets is designed to help you make informed decisions quickly freeing you to focus on other things to grow your business. With minimal plan information assets, participants, service model, investment menu and desired compensation you can instantly receive pricing for your specific opportunity. The three-step process reflects the target revenue** MassMutual needs for sponsor recordkeeping and other services. Pricing is transparent throughout the entire process. Step 1 + Step 2 + Step 3 = Total Asset Charge Take the next step contact MassMutual s Sales Support Team at , option 4 for more information. ** Each investment tier assumes a certain average revenue (0.35% 0.80%) from the investments in the plan. Adding the assumed revenue to Step 1 and Step 2 will provide you the target revenue for each scenario. 5

8 Fiduciary Assure In order to obtain the Elite Lists and other benefits of the services described above, you must enter into an investment advisory agreement with Mesirow Financial Investment Management Inc. Mesirow Financial Investment Management Inc. is not affiliated with Massachusetts Mutual Life Insurance Company or its affiliates. By making Mesirow Financial s services available to you, MassMutual does not intend to recommend or endorse Mesirow Financial s services. Fees applicable to Mesirow Financial s services and MassMutual s administration of Mesirow Financial s services are set forth in the Mesirow Financial investment advisory agreement and in MassMutual s administrative services agreement. The Mesirow Financial Investment Strategies Group is a division of Mesirow Financial Investment Management Inc. (MFIM). MFIM is only responsible for the selection of the investment options on this list. The investment options list provided herein is for informational purposes only and should not be construed as a recommendation to purchase or sell any particular security or investment vehicle(s) offered by MFIM or affiliates of MFIM. Any information provided by MFIM to MassMutual has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions expressed are subject to change without notice. Other affiliates of MFIM may receive fees for selling or advising on the purchase or sale of products mentioned herein. Additionally, affiliates of MFIM may also receive fees paid by manufacturers or distributors of said products in connection to other professional services provided by the applicable affiliate of MFIM. The sale or advice provided is in no way related or contingent upon the payment received for these other services. It should not be assumed that any recommendations incorporated herein will be profitable or will equal past performance. MFIM does not provide legal or tax advice. MFIM is an SEC-registered investment advisor. Advisory Fees are described in MFIM s Part II of the Form ADV. Mesirow Financial refers to Mesirow Financial Holdings Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial name and logo are registered service marks of Mesirow Financial Holdings Inc. 2014, Mesirow Financial Holdings Inc. All rights reserved. FOR TPA USE ONLY. NOT FOR USE WITH THE PUBLIC Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) [of which Retirement Services is a division] and its affiliated companies and sales representatives. RS C: