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(SPRINGFIELD, Mass.) - Massachusetts Mutual Life Insurance Company (MassMutual) announced today a new fee schedule for two annuities, and also the re-introduction of its no-CDSC (contingent deferred sales charge) annuity product.
Total Separate Account Charges Reduced for New and Existing Contracts
MassMutual is reducing total separate account charges - mortality and expense (M&E) plus administrative charges - on new and existing MassMutual Transitions SelectSM and MassMutual EvolutionSM flexible-premium deferred variable annuity contracts by 10 basis points to 1.15 and 1.55 percent, respectively.
"We're proud to be a high-quality, cost-conscious provider in today's annuity industry," said John Carlson, vice president, MassMutual. "Reducing total separate account charges by 10 basis points could potentially free up a significant amount in additional accumulated assets for many long-term investors who are preparing to retire. Coupled with our low average fund expense ratio and optional credit features, a MassMutual Transitions Select customer can bring their total annual contract cost to well below two percent. In fact, recent VARDS and Morningstar Datalab information indicates that the total fees for MassMutual Transitions Select (including our current average fund expense) are more than 50 basis points less expensive than an average B-share variable annuity - 1.93 versus 2.47 percent."
GMAB Charge Increased for New Contracts Only
Fees for the optional Guaranteed Minimum Accumulation Benefit (GMAB) features available with new MassMutual Transitions Select and MassMutual Evolution contracts are now increased by 10 basis points to 0.45 and 0.50 percent, respectively. This impacts new business only when the GMAB is elected, beginning Sept. 1. The GMAB sets a minimum floor on future account value and reduces exposure to market volatility.
"Equity exposure provides investors with an opportunity for growth potential; however, certain investors may also value principal protection," said Carlson. "A GMAB can help provide many with needed confidence to remain invested for the long term."
MassMutual Transitions Select is a variable annuity contract that may appeal to investors who have substantial time before retiring, seek to supplement current retirement investments and desire efficient accumulation potential through relatively low total annual costs.
MassMutual Evolution is a variable annuity contract that can help encourage long-term savings, but may appeal to investors who are nearing retirement and want the flexibility to begin receiving income now or in the future.
No-CDSC Annuity Re-introduced
Panorama Passage® is a no-CDSC flexible-premium deferred variable annuity contract with more than 40 investment choices, total separate account annual expenses that currently reduce after 10 years and automatic portfolio rebalancing. This contract is designed for investors who have substantial time before they retire and are seeking to supplement their current efforts to invest more for retirement with liquidity, seek inflation protection through equity market exposure and to convert their accumulated assets into retirement income in the future.
"By re-opening Panorama Passage for new business, our variable annuity product suite can help meet a broader range of client needs," said Carlson. "Panorama Passage may be ideally suited to experienced investors preparing for retirement who place a higher value on liquidity, and are interested in a basic variable annuity."
About MassMutual Financial Group
MassMutual Financial Group is the fleet name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates, with more than 13 million clients and over $395 billion in assets under management at year-end 2005.
Founded in 1851, MassMutual is a mutually owned financial protection, accumulation and income management company headquartered in Springfield, Mass. MassMutual's major affiliates include: OppenheimerFunds, Inc.; Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; MassMutual International LLC; and MML Investors Services, Inc., member FINRA and SiPC (www.finra.org www.sipc.org)
Not FDIC Insured; No bank guarantee; May go down in value.
MassMutual Transitions Select, MassMutual Evolution and Panorama Passage variable annuities are sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of variable annuity contracts and underlying investment choices. For this and other information, obtain the prospectuses for these variable annuities and their underlying investment choices from your registered representative. Please read the prospectuses carefully before investing or sending money.
MassMutual Transitions SelectSM [Policy Form#: TMLS; TMLS (NC)] is a variable annuity contract issued by Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001.
MassMutual EvolutionSM [Policy Form#: TMLS; TMLS (NC)] is a variable annuity contract issued by Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001.
Investors electing the GMAB must invest in a directed allocation model, which diversifies portfolios based on risk tolerance and growth objectives. These models provide investors with the potential to grow retirement portfolios within acceptable risk parameters. If the GMAB is elected, currently contract owners cannot allocate any contract value to the fixed accounts. Any purchase payments made after the second contract year could increase the cost of the GMAB feature without a corresponding increase in the benefit. The GMAB does not in any way guarantee the performance of any of the investment choices available under the contract.
Panorama Passage® (Policy Form#: MUVA94) is a variable annuity contract issued by Massachusetts Mutual Life Insurance Company in New York and by C.M. Life Insurance Company in all other states. C.M. Life Insurance Company, 100 Bright Meadow Boulevard, Enfield, CT 06082, is non-admitted in New York and a subsidiary of Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001.
Guarantees are contingent upon the claims-paying ability of the issuing company.
The investment return and principal value of a variable annuity will fluctuate with market conditions. Accumulation units, when redeemed, may be worth more or less than their original cost.
Liquidated earnings are subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10 percent federal income tax penalty.
Principal Underwriter: MML Distributors, LLC, 1295 State Street, Springfield, MA 01111-0001. Wholly owned subsidiary of Massachusetts Mutual Life Insurance Company.
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