Page 35 - NovDefComp

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
Defined Benefit and Defined Contribution Recordkeeping

Investment Service Operations System

Pricing

Control Objective 1
Controls provide reasonable assurance that pricing related information is recorded completely
and accurately.

Controls Specified by MassMutual Testing Performed by KPMG LLP and Results of Tests
Investment Operations
1.1 Prior to calculating daily unit Inspected the "Prepare for Nightly Pricing- Monitor" and
values, Unival performs edit checks of the "Set Valuation Date" Tasks in TreX and the “Table
underlying tables within the application Compare” report for a selection of dates and determined
to the previous day’s tables and that investment operations associates reviewed the
reports. Investment operations reported changes and when applicable resolved any
associates review the reported unanticipated changes.
changes as evidenced on the Table Observed an investment operations associate change the
Compare report and resolve any
unanticipated changes. The review is description of a fund and calculate the daily unit values
using Unival and determined that Unival generated an
evidenced by documentation uploaded
into the Set Valuation Date Task and error message indicating that table changes required
investigation.
management approval of the Prepare
for Nightly Pricing- Monitor Task in No Exceptions Noted.
TreX. (DB & DC)

1.2 During the import of prices, an For a selection of records from the import files with different
automated comparison is made to prices determined that the automated comparison accurately
price data already in the Unival system. flagged the difference on the report. For a selection of
If a conflict with the price data exists, records from the import files with same prices determined
the item is flagged on the Conflict that the automated comparison did not flag the difference on
Report for investment operations the report.
associates to indicate which price Inspected the "Conflict Report" and the "Final Analysis
should be used. Investment operations
associates check the prices to other Reviewer" Tasks in TreX and the “Unival Conflict” report
sources such as Fund Company price for a selection of dates and determined that an investment
operation associate reviewed and followed up on
sheets (if available) or website sources conflicting prices and that an independent team member
to determine which price should be
kept. Backup data is retained as reviewed the decisions taken.
evidence of the price decision. A No Exceptions Noted.
review of the decision is conducted by
an independent team member. The
review is evidenced by documentation
uploaded into the Conflict Report Task
and the subsequent Quality Review
notes in the QC step of the Analysis
After Prices Received- Reviewer in
TreX. (DB & DC)

MassMutual Defined Benefit and Defined Control Objectives, Related Controls and Test of
Contribution Investment Service Operations Operation Effectiveness
System
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