All the program qualifications are outlined below.
1. Production Incentive Bonus (PIB) with thresholds starting at $5,000 of DI production credits
2. Enhanced Renewal Commissions – thresholds starting at $8,000 of DI production credits
3. Inforce Bonus (IB) – thresholds starting at $30,000 of DI production credits along with $75,000 of DI inforce premium
4. Service Fees in years 11+ - $30,000 of DI inforce premium required
· Based on renewal share of first year premium (not the first year share, example below)
· Ex: FYP $1,000. FYC split 50%/50%, Renewals split 75%/25% between broker A & B
· Production credits: Broker A $750, Broker B $250
· Includes premium for new policies issued and placed that were secured as a broker.
· Excludes any ongoing automatic increases on business sold as a career agent.
· Production Credits DO NOT equal Premium
· Production credits are measured from January 2nd through the last business day of the year.
- Includes: Radius Series, MaxElect Series, RetireGuard, BOE, Buy-Sell, XL series†, Flex† († No longer available for new business)
- Excludes: BOE 9200 (NY, FL), CR 9200 (NY, NJ, FL, MN), DIPR
The Fine Print:
- Premium in-force includes all Disability Income business that is in-force at the beginning of the calendar year.
- These reports are directional only and do not constitute any type of contract or guarantee of commission or income from MassMutual. Please refer to your Mass Mutual contract for terms
- Service fees and bonus payments will be made only while the Contract is in force and all qualifications are met.
DI Compensation Summary
1. First-Year Production Incentive Bonus (PIB)
Paid quarterly in addition to first year commissions. Bonus level is based on your year-to-date Production Credits and the bonus tier achieved. PIB is retroactive to the first dollar of DI production.
$0 - $4,999
$5,000 - $19,999
$20,000 - $29,999
$30,000 - $44,999
2. Enhanced Renewal Commissions
Paid in policy years 2 through 10 depending on the DI Production Credit tier you achieve at year end. Enhanced renewals are paid in addition to standard renewals. Enhanced renewal commission rates in years 2-10 are based on the level of total DI Production Credits produced by a broker in the calendar year in which the policy was reported. Renewals are vested in the first 10 years of coverage. Service fees are not vested.
DI Production Credits
Enhanced Renewal Rate
$0 - $7,999
$8,000 - $14,999
$15,000 - $29,999
3. In-Force Bonus
Paid in January, based on year end business, as a percentage of the collected renewal premium on policies secured as a broker,
and collected during the commission year. It is based upon DI inforce at the beginning of the year and the amount of production
credits earned during the calendar year. Renewal collected premium includes all qualifying disability income insurance-collected premium on policies issued and placed on or after 1/4/99 for MassMutual and secured as a broker. Inforce DI premium includes all
premium inforce at the beginning of the year and secured under any contract.
In-Force DI Premium at beginning of calendar year Threshold/
Percentage of DI renewal collected premium paid
$75,000 - $149,999
$150,000 - $299,999
$0 - $29,999
$30,000 – $39,999
$40,000 - $49,999
4. Service Fees
A 2% service fee is payable for policy years 11+ as long as your total in-force premium is $30,000 or greater. The broker must be an active broker as determined at the beginning of each calendar year. Service fees are not vested.