MassMutual making it easier for small businesses to offer 401(k) plans to help employees save for retirement

Two Aviator solutions now offer small businesses simplified investment choices, reduced pricing and built-in fiduciary support

SPRINGFIELD, Mass., Oct. 10, 2018 – As Congress and the White House look for ways to help workers at small businesses save for retirement, Massachusetts Mutual Life Insurance Co. (MassMutual) is making it easier and more affordable for small businesses to offer 401(k) plans.

MassMutual has enhanced its Aviator 401(k) retirement savings plan for small businesses, with up to $15 million in retirement assets, offering simplified investment lineups, affordable pricing and fiduciary support services. There are now two Aviator programs for small businesses to choose from, depending upon the level of administrative and fiduciary support they prefer.

“While most Americans who work for large employers enjoy access to 401(k) retirement savings plans, those who are employed by small businesses often lack the same opportunity to achieve financial security in retirement,” said Tina Wilson, Head of MassMutual’s Investment Solutions Innovation. “MassMutual continues to enhance and improve its retirement programs for small businesses to make them more affordable, easier to implement and administer, and provide many of the same features offered by larger plans.”

The U.S. Bureau of Labor Statistics reports that 91 percent of workers employed by companies with 500 workers or more have access to retirement benefits, nearly twice as many as employees who work for small companies with fewer than 100 workers1. Slightly more than half of employees of small businesses (52 percent) have access to retirement benefits.

Meanwhile, 57.9 million working Americans or 47.8 percent of the private workforce are employed by small businesses with fewer than 500 employees, according to the Small Business Administration (SBA)2. While MassMutual defines small-business retirement plans as having fewer than $15 million in assets, the SBA defines small businesses as firms with fewer than 500 employees. MassMutual’s enhanced retirement plans for small businesses are designed to help those workers save for a secure retirement.

A new version of Aviator, Aviator Pro, is now available for businesses that seek more comprehensive administrative support. The program offers simplified fee and investment lineups, and fiduciary 3(16) and 3(38) services to guide and help protect plan sponsors with administrative and investment duties respectively.

“Many small businesses don’t have benefits departments so administering a 401(k) plan can be a challenge,” Wilson said. “Aviator Pro is designed as a turnkey solution with guardrails designed to help small businesses avoid making costly administrative or investment mistakes.”

Meanwhile, MassMutual has introduced a series of enhancements to its original Aviator 401(k) program to enable small businesses to help employees prepare for retirement:

• Reduced pricing, including new break points for fees as assets accumulate within the plan;
• The introduction of new target date fund families in the MassMutual Select T. Rowe Price Retirement Funds, Legg Mason Total Advantage Funds and IndexSelect;
• Additional zero-revenue investments, including more than 500 options from more than 60 investment managers;
• Streamlined installation and administration with several automated services available, including enhanced automatic enrollment and automatic escalation services; and
• Introduction of automated employee engagement campaigns that use sophisticated targeting and behavior science techniques.

“Preparing for a secure, comfortable retirement can be challenging if you work for a small business,” Wilson said. “MassMutual is enhancing its small-business retirement plan offerings to help as many workers save for retirement as possible.”