Page 47 - NovDefComp

Massachusetts Mutual Life Insurance Company
Defined Benefit and Defined Contribution
Recordkeeping Operations System

®
System and Organization Controls (SOC 1 ) Report
Applicable to Proprietary Recordkeeping (PRS), Case Accounting
(CAS), and Participant Accounting (PAS) Systems 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
RECORDKEEPING OPERATIONS SYSTEM.............................................................................................. 8
DESCRIPTION OF THE DEFINED BENEFIT AND DEFINED CONTRIBUTION RECORDKEEPING OPERATIONS
SYSTEM......................................................................................................................................................9
Scope of the Report ..............................................................................................................................9
Background .........................................................................................................................................10
Complementary Subservice Organization Controls (CSOCs) ............................................................11
INTERNAL CONTROL ELEMENTS .................................................................................................................14
Control Environment ...........................................................................................................................14
Risk Assessment.................................................................................................................................15
Control Activities .................................................................................................................................16
Monitoring............................................................................................................................................16
Information and Communication .........................................................................................................17
Other Considerations ..........................................................................................................................17
Changes in the Control Environment ..................................................................................................17
INFORMATION PROCESSING .......................................................................................................................18
PRS, PAS, CAS DB and DC Recordkeeping Systems Overview.......................................................18
DESCRIPTION OF OPERATIONS...................................................................................................................20
Defined Contribution and Defined Benefit Plan Installation ................................................................20
DC Plan Installation and Conversions ......................................................................................20
DB Plan Installation and Conversions.......................................................................................20
Defined Contribution and Defined Benefit Participant and Plan Administration and Maintenance ....21
DC Participant and Plan Administration and Maintenance.......................................................21
DB Participant and Plan Administration and Maintenance .......................................................22
Defined Contribution Administrative Expenses...................................................................................23
DC Administrative Expenses.....................................................................................................23
Defined Contribution and Defined Benefit Value Rates......................................................................23
Defined Contribution and Defined Benefit Distributions and Payments .............................................24
Defined Contribution Distributions and Payments ..............................................................................24
DC Distributions and Payments to Plans and Participants (including Loan Payments) ...........24
Defined Benefit Distributions, Retirements, and Payments ................................................................26
DB Retirement Initiations and Payments to Participants ..........................................................26
DB Plan Distributions ................................................................................................................26
Defined Contribution and Defined Benefit Contributions and Collections ..........................................27
DC Contributions and Collections from Plans and Participants................................................27
DB Contributions .......................................................................................................................28