Massachusetts Mutual Life Insurance Co. (MassMutual), as part of a broader strategy to expand its share of the defined benefit (DB) pension market, is introducing an analysis tool to help employers gauge the relative health of their pension plans and manage them accordingly.
MassMutual’s PensionSmart Analysis tool is available to pension plan sponsors through financial advisers and consultants who serve the pension recordkeeping, investments and actuarial marketplaces. The PensionSmart Analysis tool provides plan sponsors with a diagnosis or assessment of their plan’s health, including insights on funding levels, administrative efficiencies and expense savings, improved communications to participants and design recommendations. The analysis also examines funding, investment and de-risking strategies to help sponsors make the best long-term decisions about managing their pension plans.
As part of the analysis of pension investments, the PensionSmart Analysis tool can examine different investment “glide path” options to help sponsors achieve specific goals related to funding and liability matching, according to Michael O’Connor, leader of MassMutual’s Defined Benefit Pension unit. MassMutual can also asses and recommend de-risking strategies as more sponsors look to reduce liabilities from pensions.
With the results of the tool’s analysis in hand, MassMutual’s pension experts can then assess the pension plan’s health and make recommendations to the sponsor about appropriate options.
In addition, advisers and consultants can use the PensionSmart Analysis tool to generate a listing of pension plans in their area and determine which plan sponsors might benefit the most from a health analysis. The PensionSmart Analysis tool displays information about the sponsor, type of plan, size of the pension in assets and number of participants, funding level, status and service model.