HomeMy WebLinkAboutHartford Life Insurance Co Southold Town Board -Letter Board Meeting of July 16, 2013
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RESOLUTION 2013-549 Item # 5.21
'°~,~'"~a ADOPTED DOC ID: 8966
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2013-549 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
JULY 16, 2013:
RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs
Supervisor Scott A. Russell to execute a Letter Aereement to memorialize the aereement
between Hartford Life Insurance Company, active throueh Massachusetts Life Insurance
Company as its Administrator, and the Town of Southold, to extend the eroup variable
annuity contract and eroup fixed annuity contract issued by Hartford Life to the Deferred
Compensation Plan for Employees of the Town of Southold throueh Aueust 10, 2014, all in
accordance with the approval of the Town Attorneyj.'~~,
Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [UNANIMOUS]
MOVER: Louisa P. Evans, Justice
SECONDER: Christopher Talbot, Councilman
AYES: Dinizio Jr, Ruland, Doherty, Talbot, Evans, Russell
Generated July 17, 2013 Page 30
MassMutual
FINANCIAL GROUP•
June 21, 2013
Mr. John Cushman
Town of Southold
P.O. Box 1179
53095 Main Road
Southold, NY 11971
RE: Town of Southold Defen•ed Compensation Plan; 1 Yeaz Extension of Hartford Life Group
Variable Annuity Contract and Croup Fixed Annuity Contract through August 10, 2014
Dear Mr. John Cushman:
The purpose of this Letter Agreement is to memorialize the agreement between Hartford Life
Insurance Company ("Hartford Life'), acting through Massachusetts Life Insurance Company
("MassMutual") as its Administrator, and the Town of Southold ("Town of Southold") to
extend the group variable annuity contract and the group fixed annuity contract (Contract No.
GC - 30073, Form HL -16925 and HL-16926 (NY) dated August 12, 2008 and hereinafter
collectively referred to as the "Contract"), issued by Hartford Life to the Deferred
Compensation Plan for Employees of the Town of Southold (the "Plan"). MassMutual has
acquired The Hartford's Retirement Plans Group (RPG) effective January 1, 2013. MassMutual
has no affiliation, and Hartford Retirement Services, LLC and the RI'G business no longer have
any corporate or ownership affiliation, with The Hartford Financial Services Group or any of
its subsidiazies (Hartford). The Contract is issued by Hartford Life, and pursuant to the sales
transaction, MassMutual has been appointed by HLIC to provide all administrative services
necessary to support the Contract.
The original term of the Contract expires on August 11, 2013 (at the end of the 5-year initial
term). MassMutual, on behalf of Hartford Life, and the Town of Southold have agreed to
extend the Contract through August 10, 2014, by exercising the parties' right to mutually
exercise the first of two one-year extensions, in accordance with the terms of the Contract.
MassMutual, in its role as Administrator for Hartford Life, and the Town of Southold have
agreed that the extension of thc Contract through August 10, 2014 will be subject to the
following terms and conditions (ix., including certain modifications of the original Contract
provisions):
1. The parties have agreed to exercise the first option to extend the Contract for an additional
year, and the Contract will now mature on August 10, 2014.
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2. The credited interest rate of 4% per annum currently being paid on amounts held in the
General Account will continue through September 30, 2013. Prom October 1, 2013 through
March 31, 2014, the credited interest rate on all assets in the General Account will be 3% per
annum.
3. The guaranteed minimum interest rate under the Contract, currently 4°h, will be reduced to
1 % effective August 11, 20]3 in accordance with the attached contract endorsement; provided,
however, prior to October 1, 2013, in no event will the interest rate credited be reduced below
thc 4% interest rate and in no event will the interest rate credited be reduced below the 3%
interest rate prior to April 1, 2014, referenced in item #2.
4. Beginning April 1, 2014 and continuing through August 10, 2014, the interest rate credited
on contributions received after March 31, 2014 shall not be less than the new contract
guaranteed minimum interest rate of 1°k; provided, however, that interest will be continue to
be credited at 3% per annum through December 31, 2014 on all amounts held in the General
Account as of Mazch 31, 2014.
5. The annual mortality risk and administrative charges will be adjusted from 0.25% to 0.00%
as soon as administratively possible.
We look forwazd to our continued relationship with the Town of Southold and the Plan. Please
indicate your acceptance of the foregoing by signing below and returning a copy to the
undersigned.
Sincerely,
HARTFORD LIFE INSURANCE COMPANY,
BY: MASSACHUSETTS LIFE INSURANCE COMPANY, AS ADMINISTRATOR
Eric Wietsma
Senior Vice President, Investment Services
MassMutual Retirement Services
The foregoing is agreed to and accepted by the Town of Southold, as Plan Sponsor, as of this
17th day of July . 2013.
Name. Scott Russell
Title: Suaervisor