EMPLOYER Fiduciary Assure - MassMutual .EMPLOYER Fiduciary Assure Offering your plan robust...

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Transcript of EMPLOYER Fiduciary Assure - MassMutual .EMPLOYER Fiduciary Assure Offering your plan robust...

  • E M P LOY E R

    Fiduciary AssureOffering your plan robust co-fiduciary support for investment selection and monitoring

    FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

  • FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

    In your hands: Investment option recommendations A sample Investment Policy Statement Quarterly monitoring of

    investment options Quarterly Market Commentary

    At your back: Shared fiduciary liability relating to

    investment selection

    Youre looking out for employees. Whos looking out for you?You want your employees to succeed, not only at work but also in preparing for their retirement. You provide them with the resources and tools they need, while you make available to them a group of diversified investments. Its a job that comes with great responsibility and sometimes, liability. All the positive things you do can be undone with even the simplest misunderstanding of your fiduciary responsibility.

    But dont worry. MassMutuals Fiduciary Assure program, powered by Envestnet Retirement Solutions, LLC (ERS) is here to support you. By providing investment recommendations that are compliant with ERISA Section 404(c), the Fiduciary Assure service may help insulate you against legal claims that can result from offering inadequate or inappropriate investments.

    What is my fiduciary responsibility? If youre not sure, youre not alone. Its one of the most complex and misunderstood parts of administering a retirement plan. And not every plan sponsor has the time and resources to stay on top of it all. Among your responsibilities as plan fiduciary is investment selection. In simplest terms, if you select investments for a plan or hire someone to do it for you, you have fiduciary responsibilities.

    Fiduciary Assure At a Glance

    40%O F S P O N S O R S

    S AY T H E Y A R E N T A F I D U C I A R Y

    O R A R E N T S U R E

    20%A R E N T S U R E I F

    T H E I R A D V I S E R I S A F I D U C I A R Y

    In simplest terms, if you select investments for a plan or hire someone to do it for you, you have fiduciary responsibilities.

    MassMutual proprietary plan sponsor survey conducted by Greenwald & Associates, 9/8/2015.

  • 1FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

    How it Works

    Fiduciary Assure gives you objective guidance from Envestnet Retirement Solutions, LLC (ERS) an independent third party when making investment selections for your plan. You dont have to be an investment expert. You dont have to shoulder all the responsibility yourself for investment selection. Working with a financial professional, you can select the program that best suits your plans needs.

    1 Approved List A broad range of investment options in four core diverse asset classes appropriate for retirement investing: Cash Equivalent, Domestic Bond, Domestic Equity, and Foreign Equity. You must choose at least one option from each asset class to build your plan lineup.

    2 Select List Fiduciary Assure selects from the Approved List for you, creating a subset that you can conveniently pick to serve as your plans investment lineup.

    3 An additional 2 bps. may be charged for new custom priced plans or plans with assets greater than $5 million. Existing plans may be subject to a pricing review.

    C H O O S E Y O U R O P T I O N SFiduciary Assure 3(21)

    ERS offers non-discretionary fiduciary support.

    Fiduciary Assure 3(38) ERS acts with discretion as an

    investment manager.

    Plan set-up

    During the initial investment selection process, ERS provides investment recommendations that are compliant with ERISA Section 404(c).

    Plan sponsor develops the investment lineup ensuring that at least one ERS Approved List1 fund from each core asset class is included. Plan sponsors may also choose the ERS Select List2, a pre-selected plan investment lineup.

    ERS or plan sponsor develops the investment lineup ensuring that at least one ERS Approved List1 fund from each core asset class is included. Plan sponsors may also choose the ERS Select List2, a pre-selected plan investment lineup.

    Asset class requirement

    Line-up must include one Approved List fund in each of four core asset classes: cash equivalent, domestic bond, domestic equity, and foreign equity.

    Investment policy statement

    As part of the service, Fiduciary Assure provides a sample Investment Policy Statement to demonstrate that the plan is monitored from an objective point of reference.

    Monitoring and reporting

    ERS monitors your plan and reports back how your investments are doing. Your quarterly report includes: An updated Approved List with the current investment options Market Commentary on the previous quarter ERSs unique S.C.O.R.E. Model, which evaluates your plan investments according to

    style, cost, organization, risk, and execution

    Ongoing maintenance

    Plan sponsor is responsible for making ongoing investment line-up changes in order to maintain core asset class requirements.

    ERS will direct MassMutual to adjust the investment lineup as needed in order to meet core asset class requirements. The plan sponsor would also have the ability to consult with ERS on proposed investment changes, prior to execution.

    Cost Included in standard new plan pricing.3

  • 2FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

    Standing behind youAs a plan sponsor, you retain overall fiduciary liability for your plan. But through Fiduciary Assure, Envestnet | Retirement Solutions acts as an investment co-fiduciary for investments on its Approved List. ERS will perform its independent duties to the plan, and fulfill the plan obligations with respect to investment option monitoring in compliance with ERISA. This agreement helps mitigate the investment option selection and monitoring risks assumed under ERISA.5

    Meet Envestnet | Retirement Solutions Envestnet | Retirement Solutions, LLC (ERS) is an SEC-registered investment adviser and is the fiduciary provider for the MassMutual Fiduciary Assure program.

    ERS is a majority-owned subsidiary of Envestnet, Inc. (NYSE: ENV). ERS and Envestnet, Inc. are not affiliated with MassMutual or any of its subsidiaries.

    Competitive advantageAdditionally, MassMutuals flexible 3(38) Fiduciary Assure program stands out when compared to the industry standard, as shown below.

    4 An additional 2 bps. may be charged for new custom priced plans or plans with assets greater than $5 million. Existing plans may be subject to a pricing review.

    5 The specific legal protection offered by ERS is governed by the agreement between ERS and the plan sponsor. Nothing stated in this brochure is intended to modify such agreement.

    MassMutual 3(38) program Industry standard 3(38) program

    FlexibilityPlan lineup created from a broad array of ERS Approved List/Select List funds, offering added flexibility and smoother plan conversions.

    Plan lineup limited to a narrow, predetermined list.

    Cost3(38) program is included in standard new business pricing.4

    3(38) programs are assessed an additional fee ranging from 2 bps. to 6 bps.

  • 3

    Making it easyFiduciary Assure is entirely online, which means you can access your plans information whenever you need it. As plan sponsor, youll have a custom webpage at the ERS site where youll find all your documentation, reports, commentary, and more. You can also visit the site to learn more about ERS and to e-sign your sponsor agreement.

    Were proud to offer you Fiduciary Assure as part of our commitment to help you meet your fiduciary responsibilities.

    To learn more, visit www.envestnetrs.com/fiduciaryassure.

    3FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

  • 4FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

    Services, Fees and Compensation under the Fiduciary Assure Program

    Fiduciary Assure Program: Fiduciary Assure is an investment advisory service supported by Envestnet Retirement Solutions, LLC (ERS), an investment adviser registered with the SEC under the Investment Advisers Act of 1940. We have a contract with ERS under which ERS provides services for the Fiduciary Assure program. ERS is not affiliated with us or any of our affiliates.

    The Fiduciary Assure service is available under our retirement services program to you as plan sponsor, to help you select the investment options for your plan. When you participate in the Fiduciary Assure Program, ERS will be an investment adviser to your plan with respect to the investment option selection and monitoring services it provides to your plan under the terms of its Advisory Services Agreement with you. There are two types of Fiduciary Assure services:

    Non-Discretionary Fiduciary Services (also called the 3(21) Services). If you elect to participate in the 3(21) Fiduciary Assure service, ERS will cross-reference your plans investment option information with ERSs proprietary methodology on at least a quarterly basis, in accordance with the terms of ERSs Advisory Services Agreement with you, in order to determine the appropri-ateness of your plans investment options. ERS will also provide you with a quarterly electronic communication confirming that the plan investment option review resulted in either (1) a recommendation to maintain your existing plan investment options, or

    (2) a report that contains a recommendation to replace one or more of your plan investment options with an alternative investment option. ERS will acknowledge that it is acting as a fiduciary under Section 3(21)(A)(ii) of ERISA with respect to your plan if you elect this service, provided that certain minimum criteria specified in the Advisory Services Agreement are met.

    Discretionary Fiduciary