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MassMutual Adds Retirement Plan Warranties

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Massachusetts Mutual Life Insurance Company will provide extra compliance support for qualifying employers that use its Smart Architecture Investment Program investment options.

MassMutual, Springfield, Mass., says its new Fiduciary Warranty program will help plan fiduciaries respond to the new federal fiduciary responsibility guidelines.

The program will protect fiduciaries from the effects of a “legal judgment that results in damages attributable to a breach in the warranty,” MassMutual says.

The warranty program will help fiduciaries by certifying that a plan offers a broad range of investment alternatives that have been identified, screened and monitored using Employee Retirement Income Security Act fiduciary prudence standards, MassMutual says.

The program also will verify that a plan offers the kinds of balanced and target-date investments that meet proposed U.S. Labor Department requirements for qualified default investment alternatives.

MassMutual also will offer a separate, independent certification program to be run by Mesirow Financial Holdings Inc., Chicago.

Mesirow “will perform an annual evaluation to certify that MassMutual’s investment identification, screening and monitoring processes are consistent with ERISA standards of fiduciary prudence, and that the investments on MassMutual’s platform are suitable for individuals investing for retirement,” MassMutual says.