2015 Selected Financial Data
($ in millions)
|General Account Assets||8,280.9||8,218.6||0.8|
|Separate Account Assets||9,590.6||9,579.4||0.1|
|Total Surplus (including Asset Valuation Reserve)||1,112.4||1,080.2||3.0|
A.M. Best (as of December 2015) A+ (Superior)
Standard & Poor's® (as of December 2015) AA- (Very Strong)
Fitch (as of December 2015) AA- (Very Strong)
While these ratings do not apply to the safety or investment performance of the Separate Account investment funds available under Mutual of America’s products, they do reflect the Company’s ability to fulfill its General Account obligations, which include its obligations under the Interest Account, annuity purchase rate guarantees and annuity benefit payouts, as well as life insurance and disability income payments. Third party ratings are subject to change.
“A.M. Best, Standard & Poor’s® and Fitch Ratings are independent rating agencies. Standard & Poor’s® and S&P® are trademarks of Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc.”
Letter from Thomas J. Moran
“I was entrusted with a legacy conceived and nurtured by those who came before me. It is a legacy of caring.”Thomas J. Moran, Chairman of the Board
At the Mutual of America Board of Directors’ meeting on March 3, 2016, I asked the Board to formally accept my decision to retire. After 40 years of service and 21 years as President and Chief Executive Officer, I made a decision that it was time for me to move into the next phase of my life. As a young man when I began my career with Mutual of America, I never expected that I would be here for so many years. But I have loved every day. I have loved this Company, our employees and everything we stand for.
When I was appointed CEO, I was entrusted with a legacy conceived and nurtured by those who came before me. It is a legacy of caring. Perhaps the legacy is attributable to the reason we were formed: to provide retirement plan services to nonprofit professionals, who dedicate their lives caring for those most in need, so they can retire with dignity. Working together, we have been faithful stewards of that legacy. We have been able to greatly expand the number of people we serve and significantly enhance the services we provide them.
Our sense of caring is also reflected in our philanthropic endeavors. Our employees have a passion for making a difference in the world that has inspired me and has had a profound influence on the person I am today.
I am grateful to each of you for all that you do.
At the March 3rd meeting, I also recommended, and the Board approved, the appointment of John R. Greed as the Company’s new CEO. As you can imagine, my decision to retire was made with very mixed emotions. I could not have made this decision without knowing that I am leaving the Company in the capable hands of John Greed and a leadership team that, like John, is second to none in terms of their professional skills, their ethics and their commitment to our customers.
I first met John more than 20 years ago when he worked for one of the large accounting firms. I knew immediately that Mutual of America could benefit from his experience. It didn’t take me long to approach John and ask if he would consider working at Mutual of America. John agreed because his father was sick at the time, and he sought more time to be with his family. That’s the kind of person John is: he cares! He is meticulous and professional, and he puts people first—precisely the traits that reflect Mutual of America’s values.
Over the past 20 years, John has demonstrated his commitment to those values. John and I have worked closely together over the last few years preparing for my retirement. I am confident that under John’s leadership the sense of caring that defines Mutual of America will flourish.
Mutual of America is uniquely committed to fostering individual growth, helping its employees develop to their fullest capacities so they may work together to help others. I am forever grateful to my predecessor, Bill Flynn, for the mentoring I received from him over the years. He taught me that Mutual of America not only values its employees’ professional skills, but also values who they are as people.
Twenty-one years ago, Mutual of America’s Board of Directors put their trust in me by providing me the opportunity to lead this great Company. I have endeavored every day to reward the confidence they have placed in me through my service. John and I are very similar in the sense of caring we share for our customers and our employees, but I know that his leadership style will be different from mine. That is both necessary and good, for he will face new challenges in a changing world. There is no question in my mind that he possesses the intellect, professional ability and character to meet those challenges and lead this Company forward, maintaining our financial strength and stability and our dedication to the individuals we serve and our employees.
Thomas J. Moran
Chairman of the Board
Letter from John R. Greed
“I have assumed the leadership of a Company that has been brilliantly managed and is well positioned for continued success going forward.”John R. Greed, President and Chief Executive Officer
Since being appointed President of Mutual of America in March 2015, I have spent a considerable amount of time traveling the country to meet with our Regional Office representatives and our clients. The feedback I received reaffirmed what I have always known distinguishes Mutual of America from its competitors: namely, our ongoing commitment to providing on-site, personal service to employers and individuals saving for retirement. The availability, dedication and expertise of our employees, when combined with our enhanced technology for plan administration and our prudent, long-term investment policies, are the reasons why clients not only choose us, but stay with us for decades.
Our personalized service allows us to help our customers understand their retirement plan and their investment choices. This is critically important when financial markets are volatile, as they have been recently. Emotional responses to movements in the markets can negatively impact long-term success in saving for retirement. Our on-site education and personal consultations are especially important for those just starting their careers, such as Millennials, who may face significant barriers to saving. For them, our automatic enrollment and automatic escalation features have proven to be a tremendous benefit by enrolling them right away and increasing their contribution deferral rates automatically over time.
Our dedication to service highlights one of Mutual of America’s greatest strengths: our employees. Caring isn’t a quality we can mandate; it comes from within. Mutual of America’s employees strive to do their utmost for our clients. Mutual of America was founded in 1945 for the sole purpose of addressing the needs of employees of nonprofit organizations who had no retirement plan benefits. Our more than 70 years of serving these organizations and their employees has had a profound effect on us and has greatly influenced our Company’s culture of caring, giving back and being a responsible corporate citizen.
In my new capacity as President and Chief Executive Officer, I am in a very fortunate position, and that is because I have had the good fortune to follow Tom Moran. Tom has served as Chief Executive Officer for the past 21 years, and during this past year, he celebrated 40 years of service to Mutual of America. Given this extraordinary and remarkable commitment, there can be no doubt that his engaging personality and personal imprint have greatly contributed to the Company’s tremendous success over more than two decades. Key to that success is the caring corporate culture that he has built, which focuses on truly making a difference in the lives of our customers, our employees and in the communities in which they live and work. His generosity in helping others inspires everyone who knows him.
What this means is that I have assumed the leadership of a Company that has been brilliantly managed, has experienced significant growth, while at the same time further enhancing its financial strength, and most importantly, is well positioned for continued success going forward. This enables me to devote all of my efforts toward the future and helping the Company continue to develop and grow by meeting the retirement savings needs of our clients in what is likely to be an even more challenging and competitive environment going forward.
February 9, 2016
John R. Greed
President and Chief Executive Officer
Millennials Reshape Retirement Thinking
are Millennials (adults age 18 to 34)2 — the fastest-growing and most diverse workforce in the U.S. today. Through their sheer numbers and unique challenges and opportunities, Millennials are driving social and economic change and reshaping traditional ways of thinking about work, life and future possibilities.
Millennials are the first generation that has not had to adapt to the Internet, mobile technology and social media — they’ve grown up with it. They go online to work, shop, connect with friends and manage their finances. Avid online researchers, they’re accustomed to getting answers to their questions at any time at the touch of a screen.
The amount of information one can find online about investing, finance and saving for retirement seems virtually limitless. For all the convenience involved, however, having access to so much information can be confusing and overwhelming, especially in the face of contradictory information.
Our website, mutualofamerica.com, is designed to provide a single, reliable source of information for individuals who want to learn more about their retirement plan and saving for retirement. It is one part of our comprehensive approach to education, which takes into account personal preferences in the ways people access information.
Individuals can use our website to learn about investing, the savings options and investment funds available to them, the tax advantages of making contributions to their retirement plan and other retirement products as well as their future income needs. In addition to timely articles and reports published by Mutual of America, mutualofamerica.com provides carefully selected articles about finance and the economy. A suite of online calculators allows individuals to consider various savings strategies—showing how much they may need to save as well as the impact on their paychecks—to meet their income needs in retirement.
Personal account information is available to our customers on a secure website, including plan and account-value details, personal rate of return, recent financial transactions, quarterly statements and fee disclosure information. Transfers and allocation changes can be made easily through our mobile website for individuals who are never without their smartphones or other mobile devices.
Our website also offers customers a chance to learn about Mutual of America’s history and mission, read reports by independent rating agencies assessing the Company’s financial strength, and watch videos of current clients. To complement the website, we recently launched a YouTube channel that showcases the Mutual of America Foundation’s innovative Community Partnership Award winners. Our website is one of the many ways our customers experience what it means to be connected to a company with a long history of financial strength, prudent management and a commitment to making a positive difference in the communities where we live and work.
Richard Fry, “Millennials surpass Gen Xers as the largest generation in U.S. labor force,” Pew Research Center, Washington D.C., May 11, 2015, http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/
“US Adults Spend 5.5 Hours with Video Content Each Day”, eMarketer, April 16, 2015, http://www.emarketer.com/Article/US-Adults-Spend-55-Hours-with-Video-Content-Each-Day/1012362
making them the best-educated generation of young adults in American history.4 But earning a degree doesn’t mean they’re financially astute. Financial literacy among Millennials is generally low.5 With so many individuals responsible for making their own investment decisions for retirement, their financial knowledge can have a critical impact on their future financial security.
Mutual of America
Mutual of America’s national network of local, salaried representatives provides invaluable on-site education and one-on-one meetings for individuals of every age and income level. The retirement education programs and individual consultations our Participant Account Representatives (PARs) offer focus on various aspects of a person’s finances, helping individuals effectively manage their paychecks and prioritize their financial goals, including saving for retirement.
PARs educate our customers about how their retirement plan works, the importance of asset allocation and the savings options and investment funds we offer, helping our customers understand the many opportunities for long-term savings available to them. One-on-one meetings with a PAR can increase individuals’ financial knowledge and help them develop an appropriate and manageable retirement savings strategy. Whether it’s increasing their retirement savings deferral rate, reallocating their assets to remain consistent with their investment objectives or considering one of Mutual of America’s individual products to supplement their retirement plan savings, our PARs provide our customers with the information they need to make such decisions with confidence.
The one-on-one meetings we offer are especially important for Millennials. Despite the digital world they are accustomed to navigating, when it comes to investing, they value and seek personal interaction and conversation. Those who saw their family hit hard in the financial crisis of 2008–09 may be especially concerned about financial security and welcome learning what they can do to achieve it in the context of their personal circumstances, goals and tolerance for risk.
PARs are available to meet with our customers regardless of the amount of assets they have with us, and not just when they enroll in a plan. Over time, as their personal goals and economic circumstances change, our customers can continue to call on our representatives to help them understand the investment choices appropriate to their age and time horizon to retirement. The fact that our representatives do not work on commission provides an important element of trust.
In addition to knowing how much to save to achieve retirement readiness, individuals need access to an appropriate savings and investment platform—one that can be easily understood and is diverse enough to accommodate participants of varying ages, investment sophistication and tolerance for risk. Mutual of America offers a broad but focused range of quality, competitively priced investment funds. The funds are managed by 10 different investment management companies, affording our customers access to the expertise of some of the industry’s largest and best-recognized investment managers.
The Council of Economic Advisers, “15 Economic Facts about Millennials,” October 2014, https://www.whitehouse.gov/sites/default/files/docs/millennials_report.pdf
Annamaria Lusardi and Carlo de Bassa Scheresberg, “Gen Y Personal Finances:A Crisis of Confidence and Capability,” Filene Research Institute Publication #326, May 2014, http://gflec.org/wp-content/uploads/2015/01/a738b9_b453bb8368e248f1bc546bb257ad0d2e.pdf
“Millennials, Younger Americans Continue to Show More Anxiety About Common Financial Planning Issues than Older Generations,” LIMRA Press Release, April 7, 2014, based on 2014 Insurance Barometer Study from LIMRA and Life Happens, http://www.limra.com/Posts/PR/News_Releases/Millennials,_Younger_Americans_Continue_to_Show_More_Anxiety_About_Common_Financial_Planning_Issues_than_Older_Generations.aspx
Millennials are carrying the highest student-loan debt of any American generation on record. Over two-thirds of recent bachelor’s degree recipients have outstanding student loans, with an average debt of more than $35,000.7
St. Petersburg, FL
However hard employers and plan providers try to get individuals to save more through targeted education, nothing is more effective than doing it for them: that is, automatically enrolling them at the start of their careers and automatically increasing their savings rate.
Automatic enrollment plan features can make a critical difference to Millennials at retirement. With 30+ years of investing ahead of them, time is on their side, particularly when it comes to the benefits of compounding and weathering market volatility.
No question, Millennials face steep challenges: their median annual income in 2015 ranged from $18,000 in Montana to $43,000 in the District of Columbia.8 But this generation may have more financial discipline than generally perceived. The Millennials we’ve interviewed are focused on living frugally to pay down debt and save for the future. In the face of competing financial demands, however, they may put off contributing until they feel better able to afford it—a day that may not come for years and may come at a great cost: delaying contributing for even a few years can have a profound effect on the money available to them later in life.
Our clients have seen that automatic enrollment not only helps get employees enrolled, but also keeps them contributing. In 2015, over 95% of employees automatically enrolled in our company-sponsored retirement plans opted to stay enrolled. That’s a sure sign that individuals know they should be saving, think it’s important and appreciate automatic features that simplify the decision-making process, such as contributing to a pre-selected, professionally managed qualified default investment alternative. In addition to automatic enrollment, an automatic increase in the amount contributed is extremely effective in fighting inertia and helping participants reach their retirement income targets. Interestingly, according to a recent survey, almost 70% of plan participants think employers should use automatic enrollment at a 6% deferral rate rather than the national average of 3%.9
of employees automatically enrolled in a Mutual of America plan opted to stay enrolled in 2015.
For plan sponsors, automatic enrollment and automatic escalation plan features help ensure that their participants will be retirement ready. As a full-service provider, Mutual of America offers streamlined processing of new hires, salary changes and vesting schedules to help keep the plan compliant with government regulations.
Integrated payroll processing and participant document delivery make for a seamless transition to automatic enrollment and automatic escalation of salary contributions. At a time of tight budgets and cost cutting for many businesses and nonprofit organizations, we strive to keep our fees low while providing critical administrative services.
Jillian Berman, “Class of 2015 has the most student debt in U.S. history,” MarketWatch, May 9, 2015, http://www.marketwatch.com/story/class-of-2015-has-the-most-student-debt-in-us-history-2015-05-08
Andy Kiersz and Kathleen Elkins, “Here’s how much money Millennials are making in each state,” Business Insider, December 6, 2015, http://www.businessinsider.com/millennial-median-wage-map-2015-12
“Who’s in the Driver’s Seat? Participants Just Want to Ride Along,” American Century Investments®, 2015, ® 5), https://ipro.americancentury.com/content/dam/americancentury/ipro/pdfs/brochure/whos-in-the-drivers-seat-participant-research-brochure-retail.pdf
and voluntary giving in 2015, similar to previous years. The Company supports their efforts through generous matching of employee contributions, grants and gifts to hundreds of charitable organizations.
New York, NY
Now in its 20th year, the Mutual of America Community Partnership Award continues to honor the contributions that nonprofit organizations, in partnership with public, private and other social sector organizations, make to society. The Community Partnership National Award winner and recipient of the 2015 Governor Hugh L. Carey Award is Waikiki Health’s PATH Clinic, which collaborates with Salvation Army Family Treatment Services to ensure a greater number of pregnant and parenting women have access to comprehensive medical care while addressing their addiction and social service needs.
This vital collaboration has a measurable impact on birth outcomes for women in Hawaii: in 2014, 97.4% of the babies born under the care of PATH were at or
above the national healthy birth rate average, and 94.7% of infants were full-term pregnancies, a predictor of long-term health advantages.
In addition to the National Award winner, nine other organizations from across the country were recognized through the 2015 Community Partnership Award for their outstanding leadership in applying creative solutions to critical challenges facing our country. Through the Community Partnership Award, Mutual of America is proud to recognize, support and help extend the reach of these vital partnerships. In addition, we continue to support responsible, incisive television journalism through funding for the award-winning Public Broadcasting Service (PBS) programs Religion & Ethics NewsWeekly, PBS NewsHour Weekend and MetroFocus.
When our headquarters received LEED Existing Building or Operations & Maintenance Gold certification in 2012, it was one of only nine buildings in New York City to have earned such status from the U.S. Green Building Council. As part of our company’s long-standing commitment to protect our environment for future generations, our headquarters continues to meet the high standards established by LEED for the design, construction and operation of high-performance green buildings.
We believe that each of us helps build a strong future through countless small actions. Our efforts to create the kind of world where everyone can thrive are reflected in the products we offer, the customer service we provide and our environmental initiatives and continue beyond our organization into communities across the country, laying the groundwork for future generations to prosper.
Derrick Feldman, “The 2015 Millennial Impact Report: Cause, Influence & the Next Generation Workforce,” Achieve, May 2015, http://fi.fudwaca.com/mi/files/2015/07/2015-MillennialImpactReport.pdf
Mutual of America Boards of Directors
- Thomas J. Moran Chairman of the Board Mutual of America New York, New York
- John R. Greed President and Chief Executive Officer Mutual of America New York, New York
- Clifford L. Alexander, Jr. President Alexander & Associates, Inc. New York, New York
- Kimberly Casiano President Kimberly Casiano & Associates Inc. San Juan, Puerto Rico
- William S. Conway Senior Executive Vice President and Chief Operating Officer Mutual of America New York, New York
- Wayne A. I. Frederick, M.D. President Howard University Washington, D.C.
- Earle H. Harbison, Jr. Chairman Harbison Corporation St. Louis, Missouri
- Maurine A. Haver Founder and Chief Executive Officer Haver Analytics, Inc. New York, New York
- Frances R. Hesselbein President and Chief Executive Officer The Frances Hesselbein Leadership Institute New York, New York
- Amir Lear Chairman and Chief Executive Officer Mutual of America Capital Management LLC New York, New York
- LaSalle D. Leffall Jr., M.D. Charles R. Drew Professor of Surgery Howard University College of Medicine Washington, D.C.
- Senator Connie Mack Chairman Emeritus Liberty Partners Group Washington, D.C.
Chairman Emeritus H. Lee Moffitt Cancer Center & Research Institute Tampa, Florida
- Robert J. McGuire, Esq. Counsel New York, New York
- Roger B. Porter, Ph.D IBM Professor of Business and Government Harvard University Cambridge, Massachusetts
- Peter J. Powers Chairman and Chief Executive Officer Powers Global Strategies, LLC New York, New York
- General Dennis J. Reimer U.S. Army (Retired)
National Security Consultant Arlington, Virginia
- James J. Roth Senior Executive Vice President and General Counsel Mutual of America New York, New York
- Elie Wiesel Founder The Elie Wiesel Foundation for Humanity;
Nobel Laureat New York, New York
Election of Directors
Mutual of America policyholders and contract holders are entitled to participate in the election of Directors. The election is held each year on a designated working day in April. In 2016 the election of Directors is scheduled for Thursday, April 21, 2016, between 10:00 a.m. and 4:00 p.m., at the Home Office, 320 Park Avenue, New York, NY 10022. At each election, approximately one-third of the Directors are elected for terms of three years.
Each policyholder and contract holder whose policy or contract has been in force for one year prior to the date of election is entitled to one vote per person to be cast in person, by mail or by proxy. Pursuant to Section 4210 of the New York Insurance Law, groups of policyholders or contract holders have the right to nominate one or more independent tickets not less than five months prior to the date of each election. Mail ballots may be obtained by writing to the Corporate Secretary at Mutual of America’s Home Office address, no later than 60 days prior to the date of election.
Mutual of America Capital Management LLC
- Amir Lear Chairman and Chief Executive Officer Mutual of America Capital Management LLC New York, New York
- Theresa A. Bischoff Chief Executive Officer (Past) American Red Cross in Greater New York New York, New York
- Noreen Culhane Executive Vice President (Past) New York Stock Exchange New York, New York
- Nathaniel A. Davis Chairman and Chief Executive Officer K12 Inc. Herndon, Virginia
- Robert C. Golden Executive Vice President of Corporate Operations (Past) Prudential Financial, Inc. Newark, New Jersey
- John E. Haire Chief Executive Officier (Past) Parade Publictions, Inc. New York, New York
- Christopher C. Quick Vice Chairman, Global Wealth and Investment Management (Past) Bank of America New York, New York
- James E. Quinn President (Past) Tiffany & Company New York, New York
- Alfred E. Smith IV Chairman of the Board (Past) Saint Vincent Catholic Medical Centers New York, New York
- John J. Stack Chairman and Chief Executive Officer (Past) Ceska Sporitelna Prague, Czech Republic
Mutual of America Investment Corporation
Mutual of America Institutional Funds, Inc.
- James J. Roth Chairman of the Board, President and Chief Executive Officer Mutual of America Investment Corporation and Mutual of America Institutional Funds, Inc. New York, New York
- Carolyn N. Dolan Founding Principal and Portfolio Manager Samson Capital Advisors LLC New York, New York
- LaSalle D. Leffall III President and Founder LDL Financial, LLC Washington, D.C.
- John W. Sibal President and Chief Executive Officer Eustis Commercial Mortgage Corporation New Orleans, Louisiana
- Margaret M. Smyth Chief Financial Officer U.S. National Grid New York, New York
- Patrick J. Waide, Jr. President (Past) Drucker Foundation New York, New York
- William E. Whiston Chief Financial Officer Archdiocese of New York New York, New York
- Paul Travers Chairman of the Board, President and Chief Executive Officer 320 Park Analytics LLC New York, New York
- Mark C. Alexander Associate Dean for Academics and Professor of Law Seton Hall Univerity Newark, New Jersey
- William P. Hannon Executive Vice President, Enterprise Risk Management, Chief Risk Officer & Business Conduct Officer (Past) The Travelers Companies, Inc. New York, New York