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HomeMy WebLinkAboutChange Notice 03/01/2013 Change Notice Dated March 1, 2013 To your Disclosure Statement Reasonable Contract or Arrangement under ERISA Section 408(b)(2) Dated as of May 1, 2012 For all Hartford Life Insurance Company RPG Group Annuity Contract or Funding Agreement Retirement Services Programs This Change Notice updates and supplements your plan's Disclosure Statement following the January 1, 2013 acquisition of The Hartford's Retirement Plans Group ("RPG") by Massachusetts Mutual Life Insurance Company ("MassMutual"). The changes to your Disclosure Statement described below are effective as of January 1,2013. The following is added as a new term under the Section of your Disclosure Statement titled "Terms Used in this Disclosure Statement": "MassMutual" means Massachusetts Mutual Life Insurance Company and its affiliates. MassMutual provides all of the services under the Contract and the Administrative Services Agreement in Hartford's name as Hartford's attorney-in-fact. The following is added to your Disclosure Statement to describe MassMutual's role with respect to your plan's packaged retirement services program: Role of MassMutual MassMutual acquired The Hartford's RPG business effective January 1, 2013. In connection with the acquisition, Hartford appointed MassMutual to provide all of administrative services necessary to support the Contracts. In this role, MassMutual receives all charges, fees and compensation - both direct and indirect - described in this Disclosure Statement as payable to Hartford for the services provided to your plan under the packaged retirement services programs. Additionally, MassMutual and its affiliates are responsible for marketing and selling the retirement plan services programs and for paying sales commissions and other compensation to Financial Intermediaries for sales and marketing activities related to the retirement plan services programs. The first paragraph under the "Description of Services" Section of your Disclosure Statement is deleted and replaced with the following: Services Provided by MassMutual: Your Contract and Administrative Services Agreement are with Hartford. Hartford has appointed MassMutual as its exclusive agent to provide all of the services under the Contract and the Administrative Services Agreement in Hartford's name as Hartford's attorney-in-fact. In Hartford's name, MassMutual provides non-fiduciary services under our packaged retirement services program that are described in the Section of the Installation Booklet titled "Recordkeeping and Administrative Services" and in your Administrative Services Agreement. For full service defined contribution plan programs, these services include recordkeeping services related to plan administration and accounting for plan, participant and beneficiary transactions (e.g., enrollment, payroll deductions and contributions, participant loans, withdrawals and distributions), the maintenance of plan and participant and beneficiary accounts, records and statements. For defined benefit plan and investment only service programs, these services include plan-level recordkeeping services related to accounting for plan, participant and beneficiary transactions (e.g., contributions, withdrawals and distributions) in connection with the Contract, and the maintenance of plan-level accounts, records and statements in connection with the Contract. For all programs, these services also include offering the Investment Option Menus. Please read the Administrative Services Agreement for more information about these services. The Section of your Disclosure Statement titled "Compensation to Our Affiliates" is deleted and replaced with the following: Compensation and Proprietary Fund Families: Some of the Funds on the Investment Option Menus are Funds from The Hartford's proprietary family of mutual funds (The Hartford Mutual Funds and Hartford HLS Funds). These proprietary mutual funds have contracts for services with companies that are affiliated with The Hartford. The Hartford affiliated companies that provide these services, and are compensated in connection with those services, are listed below. For more information about the proprietary mutual funds, see the Fund prospectus. Hartford Affiliate Services Compensation Hartford Investment Principal Underwriter to The Hartford As Principal Underwriter Financial Services, LLC Mutual Funds paid by the Fund in the form of dealer concessions Hartford Administrative Transfer Agent to The Hartford Mutual Paid by the Fund in the Services Company Funds and Hartford HLS Funds form of fees for services HL Investment Advisors, Investment Manager to Hartford HLS Paid by the Fund in the LLC Funds and The Hartford Mutual Funds form of investment advisory fees based on assets under management Hartford Securities Principal Underwriter to Hartford HLS Paid by the Fund in the Distribution Company, Inc. Funds form of dealer concessions In addition, some of the Funds on the Investment Option Menus are Funds from the Oppenheimer family of mutual funds, which are affiliated with MassMutual (The Oppenheimer Funds). These affiliated mutual funds have contracts for services with companies that are affiliated with MassMutual. The MassMutual affiliated companies that provide these services, and are compensated in connection with those services, are listed below. For more information about these affiliated mutual funds, see the Fund prospectus. MassMutual Affiliate Services Compensation OppenheimerFunds Principal Underwriter to The As Principal Underwriter Distributor, Inc. Oppenheimer Funds paid by the Fund in the form of dealer concessions 2 CFI Global Asset Transfer Agent to The Oppenheimer Paid by the Fund in the Management, Inc. Funds form of fees for services Shareholder Services, Inc. Sub-Transfer Agent to The Paid by the Transfer (doing business as Oppenheimer Funds Agent in the form of fees OppenheimerFunds for services Services) CFI Global Asset Investment Adviser to The Oppenheimer Paid by the Fund in the Management, Inc. Funds form of investment advisory fees based on assets under management OppenheimerFunds, Inc. Sub-Adviser to The Oppenheimer Funds Paid by the Investment Adviser in the form of investment advisory fees based on assets under management" (recommend using prospectus language instead) The Section of your Disclosure Statement titled "Compensation to Other Companies" is deleted and replaced with the following: Compensation to Other Companies: MassMutual: MassMutual has been appointed to provide all administrative services necessary to support the Contracts. In this role, MassMutual receives all charges, fees and compensation - both direct and indirect - described in this Disclosure Statement as payable to Hartford for the services provided to your plan under the packaged retirement services programs. Sub-contractors: MassMutual engages certain third parties (listed below) that provide certain optional services in connection with our retirement services program: Sub-contractor Service Charles Schwab & Co., Inc. Mesirow Financial Morningstar Reliance Trust Company Self-directed brokerage account option Fiduciary Assure® Momingstar Advice Directed Trustee Services MassMutual pays compensation to Mesirow Financial, Morningstar and Reliance Trust Company, as described under "Other Compensation MassMutual Pays to Third Parties" Section of this Disclosure Statement. Financial Intermediaries: MassMutual compensates insurance firms and broker-dealers to sell our programs. That compensation is discussed in the Section of this Disclosure Statement titled "Compensation MassMutual Pays to Financial Intermediaries". All references to "Hartford" in the Sections of your Disclosure Statement concerning sales commissions, additional compensation or other payments that we make to Financial Intermediaries and third party administrators are deleted and replaced with "MassMutual".