MassMutual announced Tuesday that it had launched a pension funding scorecard that allowed its defined-benefit plan sponsors and advisors to compare the quarter-by-quarter performance of a liability-driven investing portfolio with a traditional 60% equity/40% fixed income portfolio. Both portfolios are compared with the MassMutual Pension Liability Index, which is based on aggregating data from defined-benefit plans on MassMutual’s Retirement Services platform.
“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,” Marc Condon, assistant vice president and actuary for MassMutual’s Retirement Services Division, said in a statement. “The Pension Funding Scorecard provides a detailed picture of how well LDI portfolios have tracked pension liabilities compared to traditional 60/40 portfolios.”
In addition to historical returns, the scorecard will also provide definitions of common terms and answers to frequently asked questions about liability-driven investing.