Deals and People September 2, 2014

MassMutual Names Head of Retirement Plan Investments

September 2, 2014 (PLANSPONSOR.com) - MassMutual has named Aruna Hobbs as head of institutional investments for retirement plans.
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The firm says Hobbs’ hiring is part of a strategy to more aggressively promote its mutual funds and stable value investments to retirement plan sponsors and their financial advisers. In the new role, Hobbs takes on responsibility for providing strategic oversight for the growth of MassMutual’s family of mutual funds and stable value investments available through retirement plans and defined contribution investment-only (DCIO) channels.

In addition to overseeing the stable value unit, Hobbs also takes charge of a newly created team of seven sales and service representatives tasked with promoting MassMutual’s mutual funds to recordkeeping and DCIO clients. Hobbs reports to Brian Haendiges, senior vice president of investment services for MassMutual’s retirement services business, and will be located in Boston.

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The firm says it hopes to leverage Hobbs’ industry leadership experience and her expertise in stable value, which it calls a critical investment category for retirement plans. Haendiges says current market conditions make stable value particularly attractive as investors continue to seek safety, especially those retirement savers approaching age 65.

Hobbs comes to MassMutual after serving as managing director and head of stable value for New York Life Investments. Previously, she held a series of executive positions in the institutional unit of Aegon Americas and Transamerica. She has an master’s of science degree in economics from Oklahoma State University, as well as a master’s degree in international trade from the Indian Institute of Foreign Trade, in India. She also holds bachelor’s of arts from St. Xavier, in India.

According to the firm, MassMutual currently offers the MassMutual RetireSmart Funds, the Premier Funds, and the Select Funds, totaling 56 mutual funds in a broad range of asset classes, as well as a variety of stable value options. Last month, MassMutual created an institutional share class (Class I) for all Premier and Select funds and reduced fees from between nine and 20 basis points for the 16 MassMutual RetireSmart Target Date Funds.

More information about MassMutual’s Retirement Services Division, as well as the firm’s stable value offerings, is available by calling MassMutual at 1-800-874-2502, option 4.

Compliance September 2, 2014

PBGC Takes Over Plan of Los Angeles Nonprofit

September 2, 2014 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) will pay retirement benefits for workers covered by a plan sponsored by the Los Angeles Urban League Inc.
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The Los Angeles Urban League is a local chapter of the National Urban League, a non-profit civil rights organization. The chapter ran a Head Start program, which provided early education for pre-kindergarten students, and the PBGC is stepping in because the organization is unable to fund the plan that covers Head Start employees.

The Defined Benefit Pension Plan of Los Angeles Urban League Head Start State Pre-school will end as of August 31, 2014. Employees and retirees who are participants in the Head Start plan will continue to receive benefits from the Los Angeles Urban League until PBGC assumes responsibility.

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The agency estimates that as of May 2013, the plan is 45% funded, with $5.6 million in assets to pay $12.5 million in benefits liabilities. The agency will cover $6.7 million of the $6.8 million shortfall.

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