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HomeMy WebLinkAboutDeferred Comp Plan RESOLUTION 2014-647 ADOPTED DOC ID: 9995 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2014-647 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JULY 29,2014: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott A. Russell to execute a Letter Agreement to memorialize the agreement between Hartford Life Insurance Company, acting through Massachusetts Life Insurance Company as its Administrator, and the Town of Southold, to extend the group variable annuity contract and group fixed annuity contract issued by Hartford Life to the Deferred Compensation Plan for Employees of the Town of Southold through August 9,2015, and be it further RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott A. Russell to execute an Agreement with Morningstar Retirement Manager to provide online advisory services to plan participants in the Town of Southold Deferred Compensation Plan in the group variable annuity contract issued by Hartford Life Insurance Company and administered by Massachusetts Mutual Life Insurance Company, all agreements subject to the approval of the Town Attorney, 6�"402?� Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Jill Doherty, Councilwoman SECONDER:William P. Ruland, Councilman AYES: Ghosio, Dinizio Jr, Ruland, Doherty, Evans, Russell 4 R ORIGINAL MassMutual FINANCIAL GROUP" June 26,2014 Mr.John Cushman. Town of Southold P.O.Box 1179' 53095 Main road Southold,NY11971 RE: Town.of Southold Deferred Compensation Plan; 1 Year Extension of Hartford Life Group Variable Annuity Contract and Group Fixed Annuity Contract through August 9,2015 (Contract No.GC 30013) Dear Mr.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--30013,Form HL-•16925 and 14L-16926(NY)dated August 12,2008 and hereinafter collectively referred to as the"Contract"),issued by Hartford Life to the Deferred Compensation Plait for Employees of the Town of Southold(the"Plan"). The original term of the Contract expired on August 11,2013(at the end of the 5-year initial term).Prior to that time,the Town of Southold and MassMutual,as agent for Hartford Life, agreed to extend the Contract through August 10,2014 pursuant to the first of two one-year extensions,in accordance with the terms of a Letter Agreement dated June 21,2013. MassMutual,on behalf of Hartford Life, and the Town of Southold,NY have now agreed to further extend the:Contract through August 9,2015 under the second of the two allowable one- year extensions,in accordance with the terms of the Contract,and applicable New York regulations,subject to the modifications outlined in this Letter Agreement.The parties hereby agree that the extension of the Contract through August 9,2015 will be subject to the following terms and conditions(Le.,including certain modifications of the original Contract provisions and the Letter Agreement dated June 21.,2013): 1.The parties have agreed to exercise the second option to extend.the Contract for an additional year,and the Contract will now mature on August 9,2015. 2.The credited interest rate of 3%per annum being paid on amounts that were held in the General Account as of.December 31, 2013 and on contributions made during the first calendar Ma�yllututal Financial Group is a Marketing na nanw£or MassachusLits Mutual Life insurance t ompany(Mass lutual)turd its affiliated companies and sales xpresu.ntatives. Springfield.MA 011 10M (413)713$-841'1 quarter of 2014 will continue through December 31,2014. For contributions made during the second,third and fourth calendar quarters of 2014,the credited interest rate will be 2.501/o per annum from the date of the contribution through December 31.2014.Effective January 1,2015 and continuing through August 9,2015,the credited interest rate will be 2.50%per annum on all amounts held in the General Account. . 3.Effective August 10,2014,MassMutual will provide the Town of Southold with a Plan Expense Reimbursement allowance of$7,000 for the extension period(August 10,2014 through August 9,2015);which credit shall be available to reirnburse the Town of Southold for eligible plan expenses it incurs. The Amendment to the Administrative Services Agreement reflecting the credit for plan expenses will be sent separately for your signature. We look forward 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 t I-L-7f— Eric Wietsma Senior Vice President,Sales and Worksite Education MassMutual Retirement Services The foregoing is agreed to and accepted by Town of Southold,as Plan Sponsor,as of this c) day f (AS 2014 o By: Name: -5'0y>4+ Title: -r co r— ' Morningstar® Retirement Managers' Authorization Agreement Overnight Mail Address: Regular Mail Address: MassMutual MassMutual Retirement Plans Service Center Retirement Plans Service Center Attn:Account Manager Attn:Account Manager 1 Griffin Road North P.O. Box 1583 Windsor, Connecticut 06095-1512 Hartford, CT 06144-1583 Plan Type (check one): 401(a) ❑ 457S 403(b) ❑ Plan Name and Group Number: Town of Southold Deferred Compensation Plan As Plan Fiduciary, I have elected Morningstar Associates, LLC("Morningstar')to provide online advisory services to plan participants in our MassMutual Life Insurance Company group variable contract. Contracts are issued by Hartford Life Insurance Company. Contracts are administered by Massachusetts Mutual Life Insurance Company. I understand that additional fees may apply if I elect this service. The Morningstar®Retirement Managers"'service is accessed through a secure link on MassMutual retirement plan website. Plan Sponsors will have access to participant usage statistics through the Morningstar Measurement Module. Plan Sponsors can choose between two service options to offer their participants.The box checked below indicates the MorningstarO Retirement Managers"service to be elected. Managed by You (Guidance) is an online service that provides plan participants with access to research, education and general asset allocation recommendations only; it does not provide recommendations of specific investment choices. Managed by You (Guidance)is available to the plan at no additional charge. ❑ Yes, I elect to offer Managed by You(Guidance) to plan participants Managed by You (Advice) is an online investment advisory service that provides participants with both asset allocation and specific investment recommendations, as well as access to comprehensive research and education. This service offering also provides sponsors with additional fiduciary support because Morningstar Associates accepts fiduciary responsibility for the investment recommendations it provides.Additional fees apply if you elect this service. X Yes, I elect to offer Managed by You (Advice)to plan participants Note: If Managed by You(Advice)is selected above, you will need to complete a Morningstar Retirement Manager—Managed by You (Advice) Advisory Agreement. An annual fee equal to $10 per participant is assessed by MassMutual Life as its administrative fee for making the Managed by You (Advice) investment advisory service available. The fee is based on total number of participant accounts regardless of participant usage of the service. I authorize and direct that one-fourth of MassMutual Life's annual administrative fee for the Managed by You (Advice) service elected above be deducted from each participant's account each calendar quarter, or, if elected below, billed to the Plan Sponsor.The administrative fee for this service is subject to change. ❑The Managed by You (Advice)fee will be billed to Plan Sponsor on a quarterly basis Note: Only plans which are entirely"employee directed"are eligible for these services(i.e.,employee directs investments for all money types). In unique instances,certain other plan designs may make the Plan ineligible(e.g.,the Plan restricts the frequency and/or number of investment transactions). Page 1 of 2(incomplete without all pages) OMNI Retirement ManagerAuth.Agr. Rev 11/13 MORNINGSTAR ' Morningstar® Retirement Managers' Authorization Agreement Morningstar Authorizations and Agreement: 1. If I elect Morningstar Retirement Manager, I may terminate that service by giving 30 days advance written notice to MassMutual Life. I understand and agree that, if I terminate the selected service, the annual fees described above will be pro-rated for the number of calendar quarters for which the service was provided including applicable fees through the last day of the quarter in which the service is terminated. 2. Until I provide written notification to the contrary, I authorize MassMutual Life to share with Morningstar all Plan information and Plan Participant personal information on record at MassMutual Life as may be necessary for Morningstar to provide the service. 3. The following applies to Advice only - The following compatibility requirements must be met to utilize the Morningstar Retirement Manager service.A plan has a sufficient set of funds if ALL the following conditions are met: • There is at least one Large Cap Blend investment choice OR There is at least one Large Cap Value investment choice and at least one Large Cap Growth investment choice • There is at least one Core Bond* and one Core Cash** investment choice OR there is at least one Core Stable Value investment choice. *Core Bond is defined by Morningstar as a non-auxiliary U.S. bond category. The categories that are considered Core Bond in Morningstar are: Long Government, Intermediate Government, Short Government, Long-Term Bond, Intermediate-Term Bond, Short-Term Bond, Ultra Short Bond and Multi-sector Bond. **Core Cash is defined by Morningstar as a Money market fund Note:The categories are based on Morningstar! Inc.'s database Authorized Signature: jleodwaA dj(p I 1� 24 (Plan ponsor Authorized Signature) (Date) (Print Name&Title) Town of Southold 030013 (Print Entity/Employer Name) (Print Plan#) Return completed Authorization Agreement to MassMutual via Fax: (877)-526-2531 or(800) 678-8645 Page 2 of 2(incomplete without all pages) OMNI Retirement Manager Auth.Agr. Rev 11/13 MORNINGSTAR