Page 11 - NovDefComp
P. 11
Massachusetts Mutual Life Insurance Company
Defined Benefit and Defined Contribution Recordkeeping
Investment Service Operations System
®
System and Organization Controls (SOC 1 ) Report
Applicable to Defined Contribution and Defined Benefit
Recordkeeping Operations for the period
October 1, 2019 through September 30, 2020
Table of Contents
SECTION I – INDEPENDENT SERVICE AUDITOR’S REPORT PROVIDED BY KPMG LLP...................1
SECTION II – MASSMUTUAL’S MANAGEMENT ASSERTION.................................................................5
MASSMUTUAL’S ASSERTION ........................................................................................................................6
SECTION III- DESCRIPTION OF THE DEFINED BENEFIT AND DEFINED CONTRIBUTION
INVESTMENT SERVICE OPERATIONS SYSTEM .....................................................................................8
DESCRIPTION OF THE DEFINED BENEFIT AND DEFINED CONTRIBUTION INVESTMENT SERVICE OPERATIONS
SYSTEM......................................................................................................................................................9
Scope of the Report ..............................................................................................................................9
Background .........................................................................................................................................10
Complementary Subservice Organization Controls (CSOCs) ............................................................11
INTERNAL CONTROL ELEMENTS .................................................................................................................13
Control Environment ...........................................................................................................................13
Risk Assessment.................................................................................................................................14
Control Activities .................................................................................................................................15
Monitoring............................................................................................................................................15
Information and Communication .........................................................................................................16
Other Considerations ..........................................................................................................................16
Changes in the Control Environment ..................................................................................................16
INFORMATION PROCESSING .......................................................................................................................17
Investment Service Operations System Overview..............................................................................17
DESCRIPTION OF OPERATIONS...................................................................................................................18
Background .........................................................................................................................................18
Investment Options ...................................................................................................................18
Control Objectives, Related Controls, and Tests of Operating Effectiveness ....................................21
SECTION IV- MASSMUTUAL’S CONTROL OBJECTIVES AND RELATED CONTROLS, AND KPMG
LLP’S TESTS OF CONTROLS AND RESULTS OF TESTS OF OPERATING EFFECTIVENESS .........22
Completeness and Accuracy of Information .......................................................................................23
PRICING....................................................................................................................................................24
INVESTMENT RELATED DATA RECONCILIATION............................................................................................28
SECTION V- OTHER INFORMATION PROVIDED BY MASSMUTUAL...................................................31
BUSINESS CONTINUITY PLANNING ..............................................................................................................32
