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
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OMNI Retirement Manager Auth.Agr. Rev 11/13
MORNINGSTAR