Two Financial Center

60 South Street

Boston, MA 02111


Report of Independent Registered Public Accounting Firm


The Board of Directors of Massachusetts Mutual Life Insurance Company and Contract Owners of Massachusetts Mutual Variable Annuity Fund 1:


Opinion on the Financial Statements


We have audited the accompanying statement of assets and liabilities of Massachusetts Mutual Variable Annuity Fund 1, comprised of the MML Equity Division (the “Separate Account”), as of December 31, 2022, the related statements of operations and changes in net assets for each of the years in the two-year period then ended, and the related notes including the financial highlights in Note 8 for each of the years or periods in the five-year period then ended (collectively, the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Separate Account as of December 31, 2022, and the results of its operations and changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.


Basis for Opinion


These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.


We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the underlying mutual fund or its transfer agent. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.




We have served as the MassMutual’s Separate Accounts’ auditor since 2004.


Boston, Massachusetts

March 8, 2023


 KPMG LLP, a Delaware limited liability partnership and a member firm of the
KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.


Massachusetts Mutual Variable Annuity Fund 1



December 31, 2022


  Number of shares   75,747
  Identified cost $ 1,989,639
  Value $ 2,027,084
Receivable from Massachusetts Mutual Life Insurance Company   15
    Total assets   2,027,099
Payable to Massachusetts Mutual Life Insurance Company   -
    Total liabilities   -
NET ASSETS $ 2,027,099
Net Assets:    
Accumulation units - value $ 1,870,079
Contracts in payout (annuitization) period   157,020
    Net assets $ 2,027,099
Outstanding units    
  Contract owners   28,105
  Fund 1 $ 72.13


See Notes to Financial Statements.



Massachusetts Mutual Variable Annuity Fund 1



For The Years Ended December 31, 2022 and 2021


        2022     2021
Investment Income          
Dividends $ 32,775   $ 34,641
Mortality and expense risk fees   14,945     15,288
Net investment income (loss)   17,830     19,353
Net realized and unrealized gain (loss) on investments          
  Realized gain (loss) on sale of fund shares   11,360     54,661
  Realized gain distribution   219,081     -
  Realized gain (loss)   230,441     54,661
  Change in net unrealized appreciation/depreciation of investments   (370,882)     447,144
Net gain (loss) on investments   (140,441)     501,805
Net increase (decrease) in net assets resulting from operations   (122,611)     521,158
Capital transactions:          
  Transfers due to death benefits   -     (80,163)
  Transfers due to withdrawal of funds   (69,164)     (91,164)
  Transfers due to net charge (credit) to annuitant mortality fluctuation   18,129     17,563
  Transfers due to annuity benefit payments   (28,365)     (29,579)
  Transfers due to expense guarantee adjustment   3,134     2,666
Net increase (decrease) in net assets resulting from capital transactions   (76,266)     (180,677)
Total increase (decrease)   (198,877)     340,481
NET ASSETS, at beginning of the year   2,225,976     1,885,495
NET ASSETS, at end of the year $ 2,027,099   $ 2,225,976


See Notes to Financial Statements.



Massachusetts Mutual Variable Annuity Fund 1


Notes To Financial Statements




Massachusetts Mutual Variable Annuity Fund 1 (the “Separate Account”) is a separate investment account of Massachusetts Mutual Life Insurance Company (“MassMutual”) established on April 24, 1968. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940 (“the 1940 Act”).


The assets and liabilities of the Separate Account are clearly identified and distinguished from MassMutual’s other assets and liabilities. The Separate Account’s assets are not chargeable with liabilities arising from any other MassMutual business.


    As of December 31, 2022, the Separate Account consisted of the following division which was invested in the corresponding mutual fund:
      The division listed in the first column
    Division invests in the fund in this column
    MML Equity Division MML Equity Fund1
    1 MML Investment Advisers, LLC is the investment adviser to this Fund.




The following is a summary of significant accounting policies followed by the Separate Account in preparation of the financial statements in conformity with generally accepted accounting principles. Separate Account Massachusetts Mutual Variable Annuity Fund 1 follows the accounting and reporting guidance in FASB Accounting Standards Codification 946.


A.Investment Valuation

Investments in the underlying fund held by the MML Equity division are carried at fair value which is based on the closing net asset value of the underlying funds, which value their investment securities at fair value.


B.Accounting for Investments

Investment transactions are accounted for on a trade-date basis and identified cost is the basis followed in determining the cost of investments sold for financial statement purposes. Dividend income and gains from realized gain distributions are recorded on the ex-distribution date and they are generally reinvested in the underlying investment funds.


C.Federal Income Taxes

MassMutual is taxed under federal law as a life insurance company under the provisions of the 1986 Internal Revenue Code, as amended. Under existing federal law, no taxes are payable on net investment income and net realized capital gains attributable to contracts, which depend on the Separate Account’s investment performance. Accordingly, no provision for federal income tax has been made. MassMutual may, however, make such a charge in the future if an unanticipated change of the current law results in a company tax liability attributable to the Separate Account.


D.Contract Charges

See Note 8B for charges associated with the contracts.



Notes To Financial Statements (Continued)



The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.


F.Annuitant Mortality Fluctuation

The Separate Account contributes to an Annuitant Mortality Fluctuation Fund (AMFF) reserve maintained by MassMutual as required by regulatory authorities to provide for mortality losses incurred. The AMFF reserve is adjusted quarterly for mortality losses and gains and its proportionate share of changes in value. Transfers to or from MassMutual are then made quarterly to adjust the AMFF reserve which is held in the Separate Account. Net transfers from MassMutual to the Separate Account totaled $18,129 and $17,563 for the years ended December 31, 2022 and 2021, respectively. The AMFF reserve is subject to a maximum of 3% of the Separate Account’s annuity reserves. Any mortality losses in excess of this reserve will be borne by MassMutual. The AMFF reserve is not available to owners of the contracts except to the extent necessary to cover mortality losses under the contracts.


G.Annuity Reserves

Annuity reserves are developed by using accepted actuarial methods and are computed using either the 71 IAM or 83 IAM table.




The Separate Account defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Separate Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Separate Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs. Investments in mutual funds are valued at the mutual fund’s closing net asset value per share on the day of valuation.


Valuation Inputs: Various inputs are used to determine the value of the Separate Account’s investments. These inputs are summarized in the three broad levels listed below:


Level 1 – quoted prices in active markets for identical securities
Level 2 – observable inputs other than Level 1 quoted prices (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds and credit risk)
Level 3 – unobservable inputs


The investments of the Separate Account are measured at fair value. All the investments are categorized as Level 1 as of December 31, 2022. There have been no transfers between levels for the year ended December 31, 2022.




Receivable from/Payable to MassMutual

Certain fees such as mortality and expense risk fees are charges paid between the general investment account (the “General Account”) and the Separate Account. The General Account is not registered as an investment company under the 1940 Act.



Notes To Financial Statements (Continued)

  The cost of purchases and proceeds from sales of investments for each of the years or periods in the two-year period ended December 31, 2022 were as follows:


    2022     2021
Cost of purchases   $ 262,240   $  45,255
Proceeds from sales     (101,602)      (206,550)


  The changes in outstanding units for each of the years or periods in the two-year period ended December 31, 2022 were as follows:


  2022   2021
Units purchased 252   255
Units withdrawn (1,407)   (3,086)
Net increase (decrease) (1,155)   (2,830)


  A. A summary of units outstanding, unit values, net assets, investment income ratios, expense ratios (excluding expenses of the underlying funds) and total return ratios for each of the years or periods in the five-year period ended December 31, 2022 follows:


    At December 31,   For the Years Ended December 31,  
        Net Assets   Income     Expense     Total  
    Units   Unit Value   Amount   Ratio1     Ratio2     Return3  
MML Equity Division                                
  2022 28,105   $ 72.13   $ 2,027,099   1.60 %   0.73 %   (5.19) %
  2021 29,259     76.08     2,225,976   1.65     0.73     29.48  
  2020 32,090     58.76     1,885,495   2.33     0.73     2.41  
  2019 33,510     57.37     1,922,580   2.04     0.73     25.17  
  2018 43,070     45.83     1,974,107   1.78     0.73     (10.53)  


  1The investment income ratios represent the dividends, excluding distributions of capital gains, received by the division from the underlying mutual fund, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests.
  2The expense ratios represent the annualized policy expense of the divisions of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction of unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund have been excluded.
  3The total returns are for the periods indicated, including changes in the value of the underlying fund, and the expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units.


Notes To Financial Statements (Continued)


B.The Separate Account is assessed a mortality and expense risk charge. MassMutual will make deductions, for all contract years, equal on an annual basis, to 0.73% of the average daily net assets for mortality and expense risks undertaken by MassMutual. This charge is assessed through a reduction in unit values for all contracts contained within the Separate Account. A one time front-end charge is also made for sales and administrative charges. The charge ranges from 8.75% for single purchase payment and 9% for periodic purchase payments. This charge is assessed through a reduction in the number of units purchased.




MassMutual will reimburse the Separate Account for any per share expenses of MML Equity Fund attributable to shares of MML Equity Fund held by the Separate Account other than (1) the annual investment management fee payable to MassMutual by MML Equity Fund, (2) brokerage commissions and other capital items payable in connection with the purchase or sale of MML Equity Fund’s investments and (3) interest on account of any borrowings by MML Equity Fund. The Separate Account was reimbursed $3,134 and $2,666 in each of the years ended December 31, 2022 and 2021, respectively.




The Separate Account’s management has reviewed events occurring through March 8, 2023, the date the financial statements were issued, and no subsequent events occurred requiring accrual or disclosure.