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HomeMy WebLinkAboutDeferred Comp Plan/Hartford ELIZABETH A. NEVILLE TOWN CLERK REGISTRAR OF VITAl. STATISTICS MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER FREEDOM OF INFORMATION OFFICER Town Hall, 53095 Main Road P.O. Box 1179 Southold, New York 11971 Fax (631) 765-6145 Telephone 1631) 765-1800 southoldtown.northfork.net OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 119 OF 2005 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON MARCH 15, 2005: WHEREAS the Town of Southold has entered into a Deferred Compensation Plan group variable annuity contract issued by Hartford Life Insurance Company; and WHEREAS in May 2003, Hartford Life Insurance Company armonnced changes to products and services provided under said variable annuity contract; and WHEREAS Hartford Life Insurance Company did transfer the Town of Southold's Deferred Compensation Plan assets into a separate account that included those products and services announced in May 2003 without the Town of Southold's written consent; and WHERAS the Town Board of the Town of Southold has determined that said products and services announced in May 2003 and contained in the current Hartford Life Insurance Company variable annuity contract are desirable and beneficial to participants of the Toxvn of Southold's Deferred Compensation Plan; now, therefore be it RESOLVED that the Toxvn Board of the Town of Southold hereby elects to continue to fund the Town of Southold's Deferred Compensation Plan with the Plan's current Hartford Life Insurance Company variable annuity contract and directs Supervisor Joshua Horton to execute an election form certifying said election. Elizabeth A. Neville Southold Town Clerk ELECTION FORM TTHE TFORD PLAN: TOWN OF SOUTHOLD Group Number: 30013 I certify that I am the Trustee/Plan Sponsor of the above listed Deferred Compensation Plan. As an authorized Plan fiduciary, I elect to: [Select One] [~Continue to fund my Deferred Compensation Plan with the Plan's current Hartford Life group variable annuity contract (the "Existing Contract"). [] Transfer the greater of my Deferred Compensation Plan's Contract Value or the Plan's aggregate purchase payments (less withdrawals) plus interest, back to the Hartford Life group variable annuity contract (the "Old Contract") that the Plan owned immediately before it was issued the Existing Contract. I understand that the transfer will occur on a date mutually agreed upon between the Plan and Hartford Life Insurance company. electionAS an author/zedabove. Plan fiduciary, I direct Hartf~# / Lifec.,, Insurance,,~ ,~/~ Company. to honor my I Name (olease print) Sign '~- ~.~ Dar Please r rn this form to: ! Gary Hogard, AVP Hartford Life Insurance Company Retirement Plans Services, C3W 200 Hopmeadow Street Simsbury, CT 06089 G334R0 Before the Annuity Before the Annuity Commencement Date: Commencement Date: · Death prior to age 65: · Death pdor to age 65: Greater of (a) the termination Greater of (a) the termination value of the participant's value of the participant's account as of the day we account as of the day we receive due proof of death or receive due proof of death or (b) 100% of the total (b) 100% of the total contributions made to the contributions made to the participant's account less pdor participant's account less pdor partial surrenders, partial surrenders. Minimum Death Benefit · Death on or after age 65: · Death on or after age 65: Beneficiary will receive the Beneficiary will receive the termination value of the termination value of the participant account as of the participant account as of the date we receive due proof of date we receive due proof of death, death. On or after the Annuity On or after the Annuity Commencement Date: We will Commencement Date: We will continue to make payments to the continue to make payments to the beneficiary under any of the available beneficiary under any of the available annuity payout options, annuity payout options. Contract Suspension Not Applicable Not Applicable Provision Prospectus Deliver,/ Yes No Company & Separate Account Financial Available upon request. Available upon request. Information Reasonableness Representation with respect to Separate Yes No Account Charges filed with SEC Fund Company Annual Reports sent to contract Yes No owner Reports Available to Contract Owner: Investment Option Yes Yes Summary, Investment Option Performance Report, and Investment Option Fee Schedule G339R0 February 18, 2005 Town Of Southold Benefits Manager Po Box 1179 53095 Main Road Southold NY 11971 Re: Plan Number: 30013 TOWN OF SOUTHOLD Dear Plan Sponsor: We are writing to provide you with important information and choices concerning your Deferred Compensation Plan's group vadable annuity contract issued by Hartford Life Insurance Company ("Hartford Life"). In May 2003, we wrote you announcing changes to our products and services that we provide to your Deferred Compensation Plan. Those changes included: Issuing you a new, unregistered group variable annuity contract. Transferring your Plan's assets to a single, different Hartford Life Insurance Company separate account that is unregistered. Moving to a more flexible record keeping system enhancing our service and reporting capabilities. Increasing the investment options available to your participants. The addition of Morningstar ClearFuture, an independent and objective on-line investment research, education and guidance service. Enhancing our toll-free customer service line to provide participants easier access to account information. Expanding our reporting capabilities to you and your participants via our interactive web site, HartfordOnline. A new, updated Administrative Services Agreement detailing our service commitments. An internal review of our records has indicated that the transfer of your Plan's assets to a different separate account may have been made without your affirmative written direction. Because you may not have given your affirmative written direction we are offedng you two choices: Affirm in writing your consent to continue to fund your Deferred Compensation Plan with the Plan's current Hartford Life group vadable annuity contract. We call this your "Existing Contract", or V519R0 Direct us to transfer the greater of your Plan's Contract Value or the Plan's aggregate purchase payments (less withdrawals) plus interest from the Existing Contract back to the Hartford Life group vafiablg annuity contract that the Plan owned immediately before we issued the Existing Contrad! to thl~ Plan. We call this the "Old Contract". The transfer of your Plan's assets to a different separate account represents an important change and we want to ensure that you have a full and fair opportunity to choose the right investment vehicle for your Plan. We have enclosed an Election Form that can be used to confirm your decision to keep your Existing Contract or to direct us to transfer your Plan's Existing Contract Value back to the old contract. If you elect to transfer back to your Old Contract, we will contact you to schedule a mutually agreed upon date for the transfer. Please complete, sign and date the Election Form and return it to us at the following address: Gary Hogard, AVP Hartford Life Insurance Company Retirement Plans Services, C3W 200 Hopmeadow Street Simsbury, CT 06089 This offer expires on April 19, 2005, 60 days after the date of this letter. If you do not return the Election Form within 60 days of the date of this letter, we will consider you to have elected to keep your Existing Contract and to have rejected the alternative offer to transfer back to your Plan's Old Contract. In order to help you make this decision, we have included some Questions and Answers about this offer in Exhibit A attached to this letter. We have also included a summary of the important differences between the Plan's Existing Contract and the Old Contract. This summary can be found at Exhibit B attached to this letter. We have also included disclosure materials for your Existing Contract and Separate Account and a prospectus and disclosure materials for the Old Contract and Separate Accounts. Please contact Gregory Frey, your plan manager at (877) 695-3706 with any questions or concerns you may have about this communication or the enclosed materials. At Hartford Life, we are committed to providing you supedor service and appreciate the opportunity to serve you and your participants. Sincerely, Gary Hogard, AVP Retirement Plan Services Hartford Life Enclosures HV1009 FundFacts13 47 EXHIBIT A Questions and Answers about this Offer Q: Why is Hartford Life making this offer? A: We are making this offer to you because we believe that the transfer of your Plan's Contract Value from the Plan's Old Contract to its Existing Contract may have occurred without your affirmative written direction. This offer is intended to ensure that you have a full and fair opportunity to choose the right investment vehicle for your Plan. Q: What are the Plan's choices under this offer? A: We are offedng you, as the Plan fiduciary, the following choices. You may: Continue to fund your Deferred Compensation Plan with the Existing Contract, or Direct us to transfer the greater of your Plan's Contract Value or the Plan's aggregate purchase payments (less withdrawals) plus interest from the Existing Contract back to the Old Contract. Q: What will the Plan receive if I choose to transfer the Plan's Existing Contract Value back to the Old Contract? A: We will transfer the greater of your Plan's Existing Contract Value or the Plan's aggregate purchase payments (less withdrawals) plus interest back to the Old Contract. The transferred amount from your Existing Contract will not be less than your total premium payments, including transfers made to the Existing Contract, less withdrawals and surrenders that you and your Participants have taken from the Existing Contract, plus interest at a reasonable rate determined by us. Q: When does this offer expire? A: This offer expires on April 19, 2005, 60 days after the date of this letter. Q: How does the Plan accept the offer? A: You should complete, sign and date the Election Form enclosed with this letter and return it to us. The Election Form can be used to confirm your decision to keep your Existing Contract or to direct us to transfer your Plan's Existing Contract Value back to the Old Contract. You should send your Election Form to us at the following address: Gary Hogard, AVP Hartford Life Insurance Company Retirement Plans Services, C3W 200 Hopmeadow Street Simsbury, CT 06089 Q: What happens if the Plan doesn't return the Election Form? A: If you don't return the Election Form before the expiration date, we will consider you to have elected to keep your Existing Contract and to have rejected the alternative offer to transfer back to your Plan's Old Contract, Q: What happens if the Plan affirmatively rejects or fails to accept this offer before the expiration date? A: If you affirmatively reject or fail to accept this offer, we will consider you to have elected to continue to fund your Deferred Compensation Plan with the Existing Contract. Q: What do you mean when you say the new group vadable annuity contract and the different separate account are "unregistered"? A: We say that the new group variable annuity contract issued to your Plan (the "Existing Contract") is "unregistered" because, as is typical of many group vadable annuity contracts issued in connection w~th Deferred Compensation Plans sponsored by governmental entities, the Existing Contract is not registered as a security with the Securities and Exchange Commission ("SEC"). Similarly, the separate account for the Existing Contract is not registered with the SEC as an investment company. Because the Existing Contract and its separate account are not registered with the SEC, we do not prepare or deliver a prospectus for the Existing Contract or its separate account. Who can help answer my questions? A: You can call your plan manager or our customer service line at (877) 695-3706 with any questions about this offer. EXHIBIT B Summary of Differences between Old Contract and Existing Contract Contract Feature Old Contract Existin~l Contract Contract Owner Transaction Expenses Sales Load imposed on NoNe ' None Purchases (as a percentage of premium payments) Transfer Fee $0 $0 Contingent Deferred Sales 0% 0% Charge G340RO Annual Maintenance Fee $0 $0 Total Separate Account Annual 1.25% 1.25% Expenses (Mortality and Expense Risk and Administrative Charge) during the annuitization phase Total Separate Account Annual 0.75% to 0.90% 0.75% to 0.90% Expenses (Mortality and Expense Risk and Administrative Charge) during the accumulation phase Maximum Total Annual Fund 1.67% 1.89% Operating Expenses (as of Fund Year-Ended before May 1, 2004) Minimum Total Annual Fund 0.44% 0.44% Operating Expenses (as of Fund Year-Ended before May 1,2004) Other Contract Feature,= & Provisions 28 50 Number of Investment Choices Minimum Guaranteed Interest 4% 4% Rate of the General Account Daily pricing of sub-accounts Yes Yes Pdcing and Crediting of Initial Within two business days after the Within two business days after the Contributions application is made complete, application is made complete. Pricing and Crediting of Priced on the date Hartford Life Pdced on the date Hartford Life Subsequent Contributions receives the contribution, receives the contribution. Ability to transfer or re-allocate Contract Values within the Yes Yes contract Surrenders Within seven days. Within seven days, Lump Sum Lump Sum Annuity Payout Option Annuity Payout Option Payout Provisions · Period Certain Installment · Period Certain Installment Payment of 36 to 60 months Payment of 36 to 60 months Partial Withdrawals Partial W~thdrawals G338R0