New MassMutual Pension Funding Scorecard Helps Sponsors Track Investment Performance

For defined benefit plan sponsors and retirement plan advisors who are concerned about the impact of market volatility on the funded status of their pension plans, MassMutual has a new Pension Funding Scorecard to help them more effectively evaluate portfolio performance.

MassMutual’s Pension Funding Scorecard provides a quarter-by-quarter performance comparison for a liability-driven investing (LDI) portfolio vs. a traditional 60% equity/40% fixed income portfolio against the MassMutual Pension Liability Index (MMPLI). The MMPLI is based on aggregating data from defined benefit plans on MassMutual’s Retirement Services platform.

In addition, MassMutual’s Pension Funding Scorecard provides historical returns to help retirement plan advisors, plan administrators and chief financial officers make informed decisions about pension funding approaches.

“We are seeing a clear trend among pension plan decision-makers to take a closer look at pension funding volatility. LDI can provide a more predictable approach to managing pension plan assets and liabilities,” says Marc Condon, assistant vice president and actuary, MassMutual’s Retirement Services Division. “The Pension Funding Scorecard provides a detailed picture of how well LDI portfolios have tracked pension liabilities compared to traditional 60/40 portfolios.”