Page 94 - NovDefComp

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
Defined Benefit and Defined Contribution

Recordkeeping Operations System

DC and DB Plan Administration: Defined Contribution
and Defined Benefit Value Rates

Control Objective 4
Controls provide reasonable assurance that value rates are recorded completely,
accurately and timely.

Controls Specified by Testing Performed by KPMG LLP and Results of Tests
MassMutual Business
4.1 For DB Participating contracts Inspected the final year end experience interest rate exhibit and
(IP, PF, DA, GA and certain IG supporting documentation evidencing the calculation and
contracts), an Fellow of the Society determined that the Investment Year Method series of rates
of Act (FSA) reviews and approves used by an Analyst were reviewed and signed-off by a Vice
annual experience interest rates President & FSA prior to input into CAS.
calculated using the Investment
Year Method series of rates No Exceptions Noted.
determined by an FSA prior to
input into CAS. The approval and
review is evidenced by sign-off on
the final year end experience
interest rate exhibit. (DB)

4.2 For DB Participating contracts Inspected the interoffice memorandum and screen prints of the
(IP, PF, DA, GA and certain IG annual experience rates in CAS for a selection of contracts and
contracts), an independent team determined that an independent team member had signed-off
member reviews for accuracy the that the entry and comparison had been performed.
annual experience rates entered No Exceptions Noted.
into CAS by an accounting
operations associate. The review
is evidenced by a sign-off on the
screen print of the interest rate in
CAS. (DB)

4.3 For Individually Rated GIA For a selection of contracts inspected the Individually Rated
contracts, the Stable Value Rate & Spread Summary and supporting documentation and
Maintenance (SVM) team lead and sign-offs, including additional approval and review by an FSA,
an FSA reviews and approves and determined that an SVM team lead and FSA reviewed and
each contract’s annual guaranteed approved the contract’s guaranteed crediting rate as well as any
crediting rate, as well as any off off-anniversary changes as determined by a SVM associate prior
anniversary changes, determined to input into PRS and CAS.
by a SVM associate prior to input No Exceptions Noted.
into PRS and CAS, if applicable.
The approval and review is
evidenced by sign-off on the Rate
& Spread Summary or by e-mail.
(DB & DC)

MassMutual Defined Benefit and Defined Control Objectives, Related Controls and Tests of
Contribution Recordkeeping Operations System Operating Effectiveness
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