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MassMutual Settles Excessive Fee Lawsuit

"The settlement agreement ... allows for two settlement classes to be approved: [1] the Monetary Relief Class and [2] the Structural Changes Class. The Monetary Relief Class covers current and past retirements plan customers of MassMutual, while the Structural Changes Class covers current and future retirement plan customers of MassMutual.... [T]he lawsuit brought by MassMutual's own employees is not affected by this lawsuit[.]" [Goldenstar, Inc. v. MassMutual Life Ins. Co., No. 11-cv-30235-MGM (D. Mass., settlement agreements part 1 and part 2 filed Oct. 31, 2014)]

MassMutual Is Found to Be a Fiduciary in ERISA Suit by Proposed Class of Customer Plans

"After conducting an extensive analysis of both old and recent case law on the functional fiduciary tests under ERISA 3(21)(i) and (iii) ... [the court] found that MassMutual was a functional fiduciary because it controlled its own compensation ... [but] found that MassMutual was not a fiduciary with respect to the change of or potential changing of investments in the [Separate Investment Accounts] ... [T]hese decisions seem to be based on a combination of which circuit the lawsuit is brought in and the specific practices of each insurance company in how they are setting up and operating their separate account investments as part of the group annuity contracts offered." [Golden Star v. MassMutual Life Insurance Co., No. 3:11-30235-PBS (D. Mass. May 20, 2014)]

MassMutual Faces Four ERISA Breach Counts in Retirement Lawsuit

"The plaintiff alleges plan fiduciaries breached their duties under ERISA by using the MassMutual Group Annuity Contract to offer investment options to participants. The plaintiff's excessive fee claims are centered on the Group Annuity Contract, an annuity that guarantees a fixed rate of return for participants." [Lalonde v. Massachusetts Mutual Life Ins. Co., No. 22-30147 (D. Mass. complaint filed Nov. 9, 2022)]

MassMutual Workplace Financial Wellness Study (PDF)

16 data-rich presentation slides. "Eight in ten plan sponsors believe their employees are struggling financially, and often in ways that are not addressed by their current benefits offering.... Plan sponsors are aware of such challenges because they hear their employees talking about them, they see lower retirement plan participation than they would like to see, their employees are taking on second jobs, or taking loans from their retirement plans. Nearly six in ten plan sponsors believe their employees are looking to them, their employer, for support."

MassMutual Provides a Vision for Open MEPs (If They Become Reality)

"[MassMutual] has been managing multiple-employer plans for enterprises linked by associations, franchises, or Professional Employer Organizations since 1989, with more than 4,000 adopting employers and $4 billion in assets under management. Assuming that the legislation eventually passes, [MassMutual] urges employers and plan advisors to consider these issues when evaluating an Open MEP: [1] Selecting the plan design.... [2] Deciding on hands-on vs. hands-off plan administration.... [3] Choosing limited vs. customized investment menu.... [4] Determining fiduciary oversight."

MassMutual Settles 401(k) Fee Lawsuit for $31M

"The lawsuit ... alleged that MassMutual and its top executives 'larded' the company's retirement plan with 'excessive fees' and 'unreasonably priced, proprietary investment options' in violation of their fiduciary duties under [ERISA].... In addition to a $30.9 million settlement payment, MassMutual also agreed to keep the plan's annual record-keeping fees no higher than $35 per participant for the next four years. The agreement includes a four-year ban on calculating record-keeping fees as a percentage of plan assets."

MassMutual Sued Over Stable Value Fund Fees

"A 401(k) plan participant has filed suit against Massachusetts Mutual Life Insurance Company, alleging the firm collects tens of millions of dollars annually in undisclosed compensation due to the way it values the crediting rate for stable value funds offered to 401(a) and 403(b) retirement plans.... The lawsuit says MassMutual has the sole and exclusive discretion to determine the crediting rate for a given crediting period. MassMutual sets the crediting rate well below its internal rate of return (IRR) on the invested capital it holds in the SVAs, creating a substantial profit for itself, according to the complaint."

2015 MassMutual Generations@work Study Research Results (PDF)

13 pages. "The most desirable employer-provided benefit is vacation days, ahead of key financial benefits like better 401(k) matches or no healthcare premiums.... Men are more likely to say they think it's easy to manage their finances and claim to be less distracted by their finances than women are. Men also have a stronger preference for financial benefits than women do, while women have a stronger preference for lifestyle benefits ... What benefits Americans say are most important to them varies widely by gender, generation and ethnicity."

MassMutual Is Functional Fiduciary But Ability to Remove Funds Doesn't Confer Status

"The court's ruling ... directly touched on the issue left open by [the opinion of the Seventh Circuit in Leimkuehler v. American United Life Ins. Co.] and taken up by the DOL amicus brief -- namely, whether the power to substitute funds in an investment lineup causes a record keeper to be an ERISA Section 3(21)(A)(iii) fiduciary for purposes of a challenge to its receipt of revenue-sharing payments. Appearing to disagree with the DOL, the [federal district court in Massachusetts] answered that question in the negative. However, the court emphasized that its conclusion was based partly on the fact that MassMutual never exercised this discretion." [Golden Star v. MassMutual Life Insurance, No. 3:11-30235-PBS (D. Mass. May 20, 2014)]

MassMutual Finds Younger Participants the Majority

"Generation X and Generation Y account for 55% of the participants in defined contribution (DC) plans administered by MassMutual. Only 41% of participants were Baby Boomers, according to third-quarter data; however, Boomers still control the most assets (61%). Gen X and Gen Y hold 31% of DC plan assets on MassMutual's platform."