New and improved MassMutual AviatorSM defined contribution product redesigned for employers with less than $15 million in retirement plan assets
(Enfield, CT) – MassMutual Retirement Services, as part of a broader initiative to capture leadership of the small or emerging retirement plan marketplace, is introducing an enhanced 401(k) product designed for employers with less than $15 million in retirement assets.
MassMutual AviatorSM offers an array of features designed to help small businesses provide an effective retirement plan for their employees, including: ease of administration; reduction of fees as assets increase; educational tools and support to help employees save and prepare for retirement; and an expanded selection of highly rated investment options.
“One of MassMutual’s highest priorities is to continually make it easier for small businesses to offer effective retirement plans and help their employees retire on their own terms,” said Bill Silvanic, Senior Vice President for Retirement Products. “Our new Aviator 401(k) product allows small businesses, many of which have fewer than 100 employees, to compete effectively with larger employers in offering a desirable retirement plan.”
The small business or emerging market offers tremendous opportunity. The U.S. General Accountability Office estimated in 2013 that only 14 percent of employers with fewer than 100 employees sponsored a retirement savings plan. That means many workers do not have access to an employer-sponsored retirement savings plan as the U.S. Census Bureau reports that 35 percent of the U.S. workforce is employed by small businesses.
Smaller employers face numerous challenges in offering a retirement plan, the GAO reported, including being overwhelmed by the number of plan options, administrative requirements and fiduciary responsibilities.
Aviator addresses those concerns. Initially available through The Hartford’s Retirement Service Group before it was purchased by MassMutual in 2013, Aviator is being reintroduced with several enhancements, including a new line up of investment options and money managers.
Aviator’s nonproprietary platform of investment options includes some strategies not available from any other recordkeeper, according to Silvanic. The investment choices include the MassMutual’s RetireSMARTSM Funds, Premier Funds, and Select Funds, as well as a variety of stable value options and an expanded lineup of alternative investments. Earlier this year, MassMutual was recognized at the 2014 Lipper U.S. Fund Awards for Best Mixed Assets Small Fund Group, Best Overall Small Fund Group, and Best International Large Cap Core Fund.*
In addition, Aviator includes several features designed to help small businesses provide their employees with an effective, comprehensive retirement savings and preparation program:
• Fiduciary Assure, a co-fiduciary and investment selection service offered through Mesirow Financial®;
• MassMutual Lifetime Income, a unique investment option that allows plan participants to turn their retirement savings into retirement income by purchasing $10 units of monthly income to cover their basic living expenses;
• Model My Goals enables participants to allocate their investments among one of five asset allocation models: conservative, moderate conservative, moderate, moderate aggressive and aggressive;
• RetireSMARTTM retirement planning tools, including a website with a wide array of savings accumulation and income modeling tools; and
• MassMutual’s nationwide network of 80 education specialists who help participants plan for retirement in one-on-one sessions, group meetings and webinars.
“The enhancement of Aviator means MassMutual isn’t satisfied with being a top five provider of retirement plans in the emerging marketplace, we want to be No. 1,” Mr. Silvanic said. “Aviator will help us get there by offering plan sponsors and their employees with an unbeatable combination of administrative ease, quality features, innovative solutions, and effective tools and support.”
For more information about MassMutual’s Retirement Services Division, please contact your financial professional or call MassMutual at 1-800-874-2502, option 4.
* Lipper, a wholly owned subsidiary of Reuters, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyowners consistently since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company’s strong and growing network of financial professionals helps clients make good financial decisions for the long-term.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.
MassMutual’s Retirement Services Division has been serving retirement plans for more than 65 years. It offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately 2.8 million participants.