Your Plan Review MassMutual @work for you · MassMutual @work for you J A N U A R Y 2 4 , 2 0 1 8...

Your Plan Review MassMutual @work for you

J A N U A R Y 2 4 , 2 0 1 8

For Advisor and Plan Sponsor use only. Not for use with Plan Participants. RS-41492-01

City of Hartford 457 Deferred Compensation Plan.

Current Period: January 1, 2017 – December 31, 2017

Prior Period: January 1, 2016 – December 31, 2016

2

Top-performing

10 years in a row 2008-2017

Award-winning participant call

centers3

A strong mutual company

1 Ratings apply to Massachusetts Mutual Life Insurance Company and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company. Ratings are as of 4/3/2017 and are subject to

change.

2 Dividends are not guaranteed.

3 ContactCenterWorld top-performing call center 10 years in a row (2008-2017).

and breadth of products & services

for a wide variety of markets demonstrating proven success

3M participants

Among the highest financial Strength ratings of any company1

A.M. Best A++

Fitch Ratings AA+

Moody’s Investors Service Aa2

Standard & Poor’s AA+

and continued innovation.

Client perspectives

“always positive”

“superior service”

“incredibly

responsive”

“passion for service”

94% Client

retention

businesses unions nonprofit

organizations

government

entities

professional

and multiple

employer

The MassMutual difference

85+

110+

80+

with the right,

experienced people

165+ years

70+ years servicing

retirement plans

MassMutual has paid dividends2

to eligible participating policy

owners every year since 1869.

sales associates

client-facing service

professionals

onsite retirement

education specialists

ViabilitySM PlanSMARTSM

Analysis MapMyBenefitsSM BeneClick!SM

RS-41492-01 For Advisor and Plan Sponsor use only. Not for use with Plan Participants.

3

Today’s environment

▶ 401(k) plans last year: $6B default “leakage”3

▶ 72% non-retired Boomers expect to delay retirement4

▶ Roughly 35 million Boomers under prepared5

1 “Kaiser/HRET Survey of Employer Sponsored Benefits from 2006 thru 2016”. www.nytimes.com/2016/09/15/business/health-insurance-analysis-kaiser.html

2 2015 MassMutual Employee Benefits Security Study. https://www.massmutual.com/~/media/files/MM-EE-Benefits-Security-Study-Report.pdf

3 Leakage from loans taken by plan participants that were not repaid. “A holistic approach to retirement planning”, http://www.fa-mag.com/news/sponsored-content--mass-

mutual-september-2016-28721.html?section=205, November 9, 2016

4 http://www.aarp.org/about-aarp/press-center/info-08-2012/AARP-SURVEY-NEW-ANXIETY-INDEX-REVEALS-ECONOMIC-ISSUES-FACING-DRIVING-VOTERS-50-

IN-2012-ELECTIONS.html

5 https://www.myirionline.org/docs/default-source/research/boomer-expectations-for-retirement-2016.pdf

Shifting roles1 Big impacts

Yesterday – Employer as benefits funder

Today – Employer as benefits facilitator

Funding Employer’s

share Employee’s

share

A funded liability for benefits

Health Protection Retirement

Potential liability of a financially

unprepared workforce

4/10 Not sure if they have enough money for retirement2

Risk

Employer’s

share Employee’s

share


https://www.massmutual.com/~/media/files/MM-EE-Benefits-Security-Study-Report.pdf











http://www.fa-mag.com/news/sponsored-content--mass-mutual-september-2016-28721.html?section=205















M A S S M U T U A L @ W O R K

Continued innovation

Retirement outcomes

Performance

Service


Service@work



6

Our relationship @work

Overview Accomplishments Retirement Readiness

Total Plan Assets

XX/XX/XX

1983

$118

MIL

LIO

N

1624

1 PLA

N(s

)

401(k), 403(b),

401(a)

25 # Investments

Available

Relationship established with

MassMutual

# Account Balances

Goals and challenges

▶ Plan Design Goal

▶ Administration

Goal

▶ Investment Goal

▶ Fees & Structure

Goal

▶ Challenge –

What does the

ER want to

improve i.e. data

transmission

1. Plan Design Highlight changes made

to design i.e. auto enroll,

deferral increase,

re-evaluated salary

deferral default.

2. Employee Engagement A multi-media approach

with targeted messaging

that informs and inspires recipients to take action

to help them get one

step closer to retiring on

their own terms.

3. Investments Quarterly investment

analysis.

4. Plan Health

Measurement Conducted plan analysis

to measure number of

employees prepared to

retire with 75%

replacement income at

age 67.

Average deferral rate*

Average

participation rate*

Active Employees

prepared to retire**

Total assets

XX.XX%

XX%

XX%

$XXX MILLION

AS OF

XX.XX%

XX%

XX%

$XXX MILLION

AS OF

XX 20XX XX 20XX

By keeping a steady focus on

retirement readiness, plan design,

and education over the last

several years, many employees

are now on a better track for

replacing income at retirement.

The Plan health results reflect that

continual improvement.

*Participation and deferral rates are based upon plan data provided to MassMutual. The participation rate calculation is based on eligible participants with salary deferral

contributions in the past 12 months / total eligible employees (active and eligible not participating).

** Percent of participants who are on target to retire by age 67 and replace at least 75% of income during retirement. See PlanSmartsm Analysis for assumptions.

Service


7

*The expenses shown reflect expenses deducted from plan assets. Expenses billed directly to the plan sponsor or expenses related to the expense ratio of investments under the plan are not reflected.

The Contribution data displays the combined dollar value of Contributions & Loan Repayments, if applicable.

12/31/2016 12/31/2017 Plan Trend

Total Plan Assets $106,483,965 $118,865,841 ▲ 12%

Total Outstanding Loan Balances $3,129,381 $3,082,026 ▼ 2%

Participant Contributions

Participant $8,064,433 $7,897,017 ▼ 2%

Rollover $336,749 $208,024 ▼ 38%

Distributions

Withdrawals ($967,488) ($920,678) ▼ 5%

Terminations ($7,386,513) ($8,235,486) ▲ 11%

Loans ($1,838,954) ($1,861,034) ▲ 1%

Expenses* ($12,290) ($12,945) ▲ 5%

Investment Income $5,704,271 $14,989,145 ▲ 163%

Notes

Executive Summary

Plan Statistics


8

12/31/2016 12/31/2017 Plan Trend

Total Participants 1,634 1,624 ▼ 0%

Participation Rates: Average Percentage

Deferral Rates: Average Percentage

Average Account Balance $65,168 $73,193 ▲ 12%

Average Number of Investments 4.7 5.2 ▲ 11%

Number of Outstanding Loans 499 536 ▲ 7%

Percent of Participants With a Loan 22% 22% ◄ ► 0%

Average Loan Balance $6,271 $5,750 ▼ 8%

Total Calls to 800# 1,606 579 ▼ 64%

Total Visits to Website 16,052 16,787 ▲ 5%

Notes

Executive Summary

Participant Activity


9

*Service is administered at a subscription level. **CustomChoice Strategiessm use the existing investment options in the plan to create customized target retirement date and lifestyle model portfolios.

Executive Summary Making it easier to administer your plan

Participant Services Plan Sponsor Services

MassMutual Services Service Elected? MassMutual Services Service Elected?

Cruise Controlsm

(Automatic Rebalancing) Yes Demographic Data Transfer No

Retirement Specialist Group (RSG) Yes Eligibility Calculation No

Automatic Enrollment* No Solicit Enrollment No

Deferral Changes Yes Contribution ACH No

Automatic Deferral Increase* No Expense ACH No

Loans Mailed to Homes Yes TRC Termination Notification Yes


Performance@work



11

Plan Balances by Investment

Asset Allocation

Investment Options Balances as of Percentage* Balances as of

12/31/2016 12/31/2017

Guaranteed Interest $44,715,759 41.99% $314,882 $79,421 ($44,725,861) ($654,542) ($341) $270,682 $0 0.00%

SF GIA 61627 $0 0.00% $1,452,782 $650,262 $44,208,496 ($3,775,332) ($4,936) $1,233,668 $43,764,940 36.82%

American Century Infl Adjt Bond Fd $302,777 0.28% $23,904 $5,621 ($9,953) ($13,896) ($56) $9,816 $318,213 0.27%

Drey fus Bond Market Index Fund $603,044 0.57% $28,360 $1,280 $136,618 ($283,198) ($16) $23,504 $509,591 0.43%

Franklin U.S. Gov t Securities Fd $93,240 0.09% $13,714 $2,032 $42,025 ($7,365) ($22) $1,167 $144,791 0.12%

Western Asset Core Bond Fund $590,069 0.55% $66,653 $13,920 $52,165 ($60,739) ($190) $32,967 $694,845 0.58%

Metropolitan West High Yield Bnd Fd $349,957 0.33% $31,430 $6,039 ($399,545) ($9,896) ($52) $22,067 $0 0.00%

Premier High Yield Fund (Barings) $0 0.00% $12,383 $2,181 $507,625 ($10,901) ($34) $4,453 $515,706 0.43%

Closed Vanguard Target Retirem $4,059 0.00% $0 $0 ($2,589) ($1,626) ($14) $171 $0 0.00%

Vanguard Target Retirement 2015 Fd $549,481 0.52% $25,562 $600 $87 ($25,817) ($22) $64,731 $614,622 0.52%

Vanguard Target Retirement 2020 Fd $61,379 0.06% $11,497 $2,513 $11,207 $0 $0 $11,023 $97,620 0.08%

Vanguard Target Retirement 2025 Fd $3,128,113 2.94% $113,318 $70,941 $28,095 ($229,411) ($250) $502,812 $3,613,618 3.04%

Vanguard Target Retirement 2030 Fd $60,494 0.06% $33,624 $3,475 $33,332 ($1,228) ($43) $13,993 $143,647 0.12%

Vanguard Target Retirement 2035 Fd $731,576 0.69% $110,268 $4,864 ($2,360) ($9,040) ($133) $149,509 $984,684 0.83%



Vanguard Target Retirement 2050 Fd $37,644 0.04% $7,068 $6,054 $8,454 $0 $0 $10,607 $69,826 0.06%

Vanguard Target Retirement 2055 Fd $158,817 0.15% $3,390 $21 ($15,553) $0 $0 $30,766 $177,441 0.15%

Plan Activity January 01, 2017 through December 31, 2017

Expenses** Investment

Income

Percentage*Contributions Other Activity Transfers Distributions

*Due to rounding, percentages may not total 100 percent.

**The expenses shown reflect expenses deducted from plan assets. Does not include expenses billed directly to the plan sponsor or expenses related to the expense ratio

of investments under the plan.


12


Asset Allocation


12/31/2016 12/31/2017

Vanguard Target Retirement 2060 Fd $0 0.00% $3,161 $1,005 $142 ($3,352) ($1) $83 $1,039 0.00%

Vanguard Target Retirement Incm Fd $100,178 0.09% $112 $0 $128,380 ($1,388) $0 $9,000 $236,282 0.20%

Hartford Value HLS Fund $2,009,304 1.89% $187,220 $40,849 ($189,000) ($140,327) ($316) $305,467 $2,213,198 1.86%

Inv esco Grow th & Income Fund $2,097,085 1.97% $101,977 $49,401 ($90,334) ($242,833) ($231) $279,710 $2,194,775 1.85%

Hartford Capital Apprec HLS Fd $15,271,333 14.34% $437,819 $160,961 ($17,262,976) ($951,324) ($828) $2,345,014 $0 0.00%

Hartford Core Equity Fund $0 0.00% $138,295 $70,267 $16,672,021 ($667,967) ($498) $1,354,749 $17,566,867 14.78%

Vanguard 500 Index Fund $6,203,746 5.83% $569,781 $138,506 $82,432 ($988,672) ($827) $1,380,076 $7,385,042 6.21%

Alger Capital Appreciation Fund $3,308,686 3.11% $147,128 $59,389 ($33,232) ($323,955) ($300) $1,006,999 $4,164,714 3.50%

T. Row e Price Grow th Stock Fund $4,136,481 3.88% $410,802 $134,424 $748,886 ($523,593) ($625) $1,500,658 $6,407,033 5.39%

Victory Sy camore Est Value Fund $307,842 0.29% $35,853 $5,267 ($90,336) ($4,440) ($25) $45,177 $299,338 0.25%

Vanguard Mid Cap Index Fund $2,071,391 1.95% $241,903 $46,235 $112,682 ($155,289) ($258) $427,801 $2,744,465 2.31%

Vanguard Strategic Equity Fund $551,545 0.52% $37,595 $8,554 ($204,162) ($32,365) ($55) $66,170 $427,282 0.36%

Artisan Mid Cap Fund $4,283,160 4.02% $347,270 $112,982 ($26,695) ($485,506) ($649) $886,302 $5,116,863 4.30%

American Century Small Cap Value Fd $2,749,628 2.58% $126,733 $36,198 ($165,006) ($283,614) ($127) $267,848 $2,731,661 2.30%

JP Morgan Small Cap Equity Fund $614,030 0.58% $52,309 $12,672 ($172,556) ($34,035) ($77) $79,444 $551,787 0.46%

Vanguard Small Cap Index Fund $2,767,206 2.60% $262,041 $58,486 ($307,705) ($212,163) ($387) $446,954 $3,014,433 2.54%

Lord Abbett Dev eloping Grow th Fund $2,516,765 2.36% $265,880 $89,090 $160,045 ($298,828) ($492) $797,816 $3,530,276 2.97%

Franklin Mutual Global Discov ery Fd $2,544,313 2.39% $192,084 $59,963 ($154,474) ($177,069) ($328) $246,955 $2,711,444 2.28%



Income






13


Asset Allocation


12/31/2016 12/31/2017

Hartford Intl Opportunity HLS Fd $1,644,001 1.54% $198,490 $44,574 $18,833 ($126,032) ($302) $433,018 $2,212,582 1.86%

Amer Funds EuroPacific Grow th Fund $1,025,684 0.96% $134,962 $25,042 $418,030 ($80,416) ($169) $345,017 $1,868,151 1.57%

Oppenheimer Dev eloping Markets Fund $646,631 0.61% $117,018 $29,414 $393,678 ($183,951) ($223) $310,018 $1,312,583 1.10%

Total $106,483,962 100% $6,377,129 $2,045,751 ---- ($11,017,199) ($12,945) $14,989,145 $118,865,843 100%



Income






Retirement outcomes@work



15

Balances by Age as of November 30, 2016

Age Under age 30 Age 30-39 Age 40-49 Age 50-59 Age 60 and Over Total

Number of Participants 104 356 396 435 333 1,624

Group Balance $1,130,643 $10,607,387 $30,881,123 $41,356,913 $34,889,777 $118,865,843

Average Account Balance $10,872 $29,796 $77,983 $95,073 $104,774 $73,193

Balances by Age as of December 31, 2017

Asset Category: Total All Ages

Stable Value $226,926 $2,447,903 $6,952,148 $15,957,542 $18,180,420 $43,764,939

Fixed Income $36,612 $148,116 $349,470 $753,942 $895,007 $2,183,147

Asset Allocation/Lifestyle $0 $0 $0 $0 $0 $0

Asset Allocation/Lifecycle $94,139 $580,877 $1,320,466 $1,820,279 $2,649,501 $6,465,262

Large Cap Equity $349,895 $3,568,199 $12,651,779 $13,560,107 $9,801,649 $39,931,629

Multi Cap Equity $0 $0 $0 $0 $0 $0

Mid Cap Equity $130,905 $1,269,575 $3,216,542 $2,972,205 $998,721 $8,587,948

Small Cap Equity $116,332 $1,336,693 $3,664,146 $3,674,620 $1,036,365 $9,828,156

Intl/Global Equity $128,494 $1,079,823 $2,223,336 $2,207,499 $1,153,027 $6,792,179

Specialty $47,340 $176,201 $503,237 $410,719 $175,086 $1,312,583

0%

10%

20%

30%

40%

50%

60%

Under age 30 Age 30-39 Age 40-49 Age 50-59 Age 60 & Over


16

Loan Summary

Loan Data

Your Plan Your Plan MassMutual Average Industry Averages

12/31/2016 12/31/2017 12/31/2017

Number of loans allowed 2 2 2.0 1.1*

Average number of loans per participant with loans 1.4 1.5 1.2 Not available

Percentage of participants with loans 21.5% 22.0% 11.0% 14.6%*

Average loan balance $6,271 $5,750 $7,719 $6,216*

Percentage of plan assets loaned 2.9% 2.6% 1.4% 0.7%*

Total number of participants with loans

Total number of outstanding loans

Average account balance of participants with loans

Total value of outstanding loans

Your Plan

536

$55,187

352 357

Your Plan

499

12/31/2016 12/31/2017

Current Loan Interest Rate = 5.50%

$50,631

*Source: PSCA's 58th Annual Survey of PS and 401(k) Plans

$3,129,381 $3,082,026


17

Driving better participant retirement outcomes @work Retirement outcomes @work

We segment our audience into three attitudinal personas to better connect with each individual and drive action. This sophisticated approach to messaging goes beyond age and gender-based communications, and creates a more meaningful and engaging way to communicate with employees based on their financial attitudes.

Aspiring

Not financially sure-footed…yet. Often mid-

career, juggling family and finances. Open to our messaging, but need

guidance.

Assured

Financially confident, often established in their careers,

and most open to our messaging.

Apprehensive

Not financially confident. Often on tight budgets, and need significant guidance to

take small steps towards retirement.


18

Your 2018 RetireSmart targeted campaign

Non-participating employees Participating employees

SIGN-UP

Eligible Non-Participating

(ENP)

SAVE

Active and deferring under 12%

(suppressing those using

automatic deferral increase)

CONSOLIDATE

Less than 5 years,

no existing rollovers

Email Letter Facebook

HO

W?

W

HA

T?

WH

O?

Retirement outcomes @work


19

Website (My Account) Toll Free 800#

Total Visits

Toll Free 800# 579

Call Center 3,588

Website 16,787

Highlights - Retirement Services Call Center

Loans 559

Transaction Performed 282

Withdrawals 234

RSG-Retirement Options 205

Transferred Call 129

Highlights - Website

My Account 4333

Research 136

Balance Summary Balance Transfers

Contributions Account Balance

Enrollments Daily Performance

Investment Selection On-Demand Rebalance

Periodic Rebalance Statement of Account

Loans RSG

Participant Interactions January 01, 2017 through December 31, 2017

8.9%

17.8%

11.1%

17.8%

44.4%

24.0%

2.9%

7.8%

26.4%

2.3%2.3%

19.9%

14.3%


Continued innovation@work



21

Continued innovation @work Continued Innovation

SM SM

Quantifying potential financial

liabilities

Helping employees prioritize limited benefit dollars

Administration of the modern

cafeteria style plan

Delivering a customized, data-driven analysis

to help optimize your plan design

PlanSMART SM


22

Our commitment to you @work

“Our commitment to you and your employees.”

“We’re transforming every

customer experience, everyday.”

Service Performance Retirement

outcomes

Continued

innovation

Continued Innovation


Your Plan Review MassMutual @work for you · MassMutual @work for you J A N U A R Y 2 4 , 2 0 1 8...

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Transcript of Your Plan Review MassMutual @work for you · MassMutual @work for you J A N U A R Y 2 4 , 2 0 1 8...