HomeMy WebLinkAboutMINUTES - 01181994 - 1.6 (3) ,-• 1 .6 0
TO: BOARD OF SUPERVISORS sE--L--
,,�_. �F Contra
FROM: Eileen K. Bitten, Acting Director of Personnel Costa
s
County
DATE: January 18, 1994
SUBJECT: Deferred Compensation Contracts
SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Authorize the Board Chairperson, on behalf of County and Special Districts participating in
the County Deferred Compensation Plan, to,execute renewal of Contracts No. GA-50002,
Fixed Income Contract and GS-60002, Variable Accounts Contract and the Administrative
Services Agreement with The Hartford for the period of January 1, 1994 through December
31, 1998.
FINANCIAL MTACT
There should be no fiscal impact to the County. Participants in the Deferred Compensation
Plan will have minimum guaranteed rates for the General Account as follows:
Contributions Minimum Floor Guarantee Current Rates (1)
1. For contributions
made prior to 1-1-94 6.00% 6.35%
2. For contributions
made on/after 1-1-94 6.00% 6.28% (2)
(1) "Current Rate" means ITT Hartford can adjust these rates upward or downward
as market conditions warrant, but never below the floor minimum.
(2) This rate is guaranteed for the first quarter of 1994 and will be adjusted
quarterly thereafter. This rate is eight basis points higher than what is
received by other Hartford clients with similar contracts.
CONTINUED ON ATTACHMENT: x YES SIGNATURE: cC
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON ( APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CONTACT: Jean F. Soares, 6-1727
cig
cc: County Counsel ATTESTED ( T
County Administrator PHIL BA HELOR,CLERI OF THE BOARD OF
Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR
Personnel (Benefits Division)
Risk Management
BY. '� `�,�1 D� ,DEPUTY
M382 (10/88)
,
BACKGROUND:
The current group contract expired December 31, 1993. The Deferred Compensation
Advisory Committee, which advises the CAO and is composed of three members each from
labor and management, negotiated with The Hartford several provisions for a renewal
contract. The Committee also receives advice from the Auditor-Controller, Treasurer-Tax
Collector, and Retirement Board Administration. Staff is provided by the Benefits Division.
The recommended provisions are as follows:
1. _ The guaranteed rates for the General Account described under the financial impact
section above.
2. Reduce the annual administrative fee from $10.00 to $5.00, retroactive to July 1, 1993.
The Hartford will adjust all affected participant accounts accordingly.
3. Eliminate the remaining $5.00 administrative fee effective January 1, 1995.
4. Enhance the General Account interest rate by either four or five basis points effective
January 1, 1995 for each of the remaining four years of the contract.
Contra Costa County Standard Form 1/87
RENEWAL CONTRACT
(Purchase of Services) Number GC-60002
Fund/Org #
Account #
Other #
1. Identification of Renewal Contract.
Department: Personnel
Subject: Deferred Compensation
2. Parties. The County of Contra Costa, California (County), for its Department named above, and the
following named Contractor mutually agree and promise as follows:
Contractor: Hartford Life Insurance Company
Capacity: Corporation Taxpayer ID # OG- 0474(44
Address: Hartford Plaza
Hartford, Connecticut 06115
3. Term. The effective date of this Renewal Contract is January 1, 1994 and it terminates
December 31, 1998 unless sooner terminated as provided in the Prior Contract identified
below.
4. Prior Contract. By this Renewal Contract the parties agree to continue the Prior Contract hereby
being renewed,the provisions of which are incorporated herein,subject to the provisions of Sections
3 and 6 hereof.
Prior Contract Number: GC-60002 Term: Fr: January 1, 1991 To: December 31, 1993
5. General and Special Conditions. This Renewal Contract is subject to the General Conditions and
Special Conditions (if any) of the Prior Contract.
6. Amendment Specifications. This Renewal Contract is subject to the Amendment Specifications
attached hereto, which are incorporated herein by reference, and which control over any conflicting
provisions of the Prior Contract, or any amendments thereto.
7. Signatures. These signatures attest the parties' agreement hereto:
COUNTY OF CONTRA COSTA, CALIFORNIA
BOARD OF SU VISORS ATTEST: Phil Batchelor, Clerk of the Board of the Board
of Supervisors and County Administrator
By
Ch irman/Designee ��— D uty
CONTRACTOR
gyBy
Vice President Assistant Secretary
(Designate business capacity A) (Designate business capacity B)
Note to Contractor: For corporations (profit or nonprofit), the contract must be signed by two officers. Signature A must be that
of the president or vice-president and Signature B must be that of the secretary or assistant secretary (Civil Code Section 1190.1
and Corporations Code Section 313). All signatures must be acknowledged as set forth on page two.
AMENDMENT SPECIFICATIONS
ENDORSEMENT TO GROUP CONTRACT GC-60002
The following endorsements are made part of the above referenced contract as issued
to CONTRA COSTA COUNTY. The conditions and provisions of this contract apply
except as amended herein.
1.The ENDORSEMENT Section on Page 4a of the Contract is hereby amended by
adding the following to the first paragraph:
"Effective July 1, 1993, any remaining Protected Assets may be transferred
from one investment account to another such account under this contract or
to the fixed income contract without loss of the protected status."
2. Effective July 1, 1993, the Annual Policy Fee as stated in the ENDORSEMENT
Section of Page 4a is hereby amended to read "55.00" where "510.00" now
appears.
3. Effective January 1, 1995, the remaining $5.00 Annual Policy Fee shall be
eliminated.
Initial
C ntractor) (County)
ACKNOWLEDGEMENT
State of� a ACKNOWLEDGEMENT (By Corporation,
Partnership, or Individual)
County.of
The person(s) signing above for Contractor, personally known to me in the individual or business
capacity(ies) stated, or proved to me on the basis of satisfactory evidence to be the stated
individual or the representative(s) of the partnership or corporation named above in the
capacity(ies) stated, personally appeared before me today and acknowledged that he/she/they
executed it, and acknowledged to me that the partnership named above executed it or acknowledged
to me that the corporation named above executed it pursuant to its bylaws or a resolution of its
board of directors.
Dated: Anr"
[Notarial Seal]
zj
No rty Public/
-2- I
Contra Costa County Standard Form 1/87
RENEWAL CONTRACT
(Purchase of Services) Number GA-50002
Fund/Org #
Account #
Other #
1. Identification of Renewal Contract.
Department: Personnel
Subject: . Deferred Compensation Pian
2. Parties. The County of Contra Costa, California (County), for its Department named above, and the
following named Contractor mutually agree and promise as follows:
Contractor: Hartford. Life Insurance Company
Capacity: Corporation Taxpayer ID #_-06 -0,974/49'
Address: Hartford Plaza
Hartford, Connecticut 06115
3. Term. The effective date of this Renewal Contract is janiiary 1 , 1994 and it terminates
December 31, 1998 unless sooner terminated as provided in the Prior Contract identified
below.
4. Prior Contract. By this Renewal Contract the parties agree to continue the Prior Contract hereby
being renewed,the provisions of which are incorporated herein,subject to the provisions of Sections
3 and 6 hereof.
Prior Contract Number: GA-50002 Term: Fr: January 1, 1991 To: December 31, 1993
5. General and Special Conditions. This Renewal Contract is subject to the General Conditions and
Special Conditions (if any) of the Prior Contract.
6. Amendment Specifications. This Renewal Contract is subject to the Amendment Specifications
attached hereto, which are incorporated herein by reference, and which control over any conflicting
provisions of the Prior Contract, or any amendments thereto.
7. Signatures. These signatures attest the parties' agreement hereto:
COUNTY OF CONTRA COSTA, CALIFORNIA
BOARD OF VISORS ATTEST: Phil Batchelor, Clerk of the Board of the Board
of Supervisors and County Administrator
By
Ch firman/Designee Dep6ty
CONTRACTOR
y By
Vice President Assistant Secretary
(Designate business capacity A) (Designate business capacity B)
Note to Contractor: For corporations (profit or nonprofit), the contract must be signed by two officers. Signature A must be that
of the president or vice-president and Signature 8 must be that of the secretary or assistant secretary (Civil Code Section 1190.1
and Corporations Code Section 313)• All signatures must be acknowledged as set forth on page two.
AMENDMENT SPECIFICATIONS
GROUP ANNUITY CONTRACT GA-50002
The aforementioned Group Annuity Contract is hereby amended as follows:
1. Part 2, DEFINITIONS, is hereby amended by adding the following to the
definition of PROTECTED ASSETS:
"Effective July 1, 1993, any remaining Protected Assets may be transferred
from this contract to the Companion Variable Annuity Contract without loss of
the protected status."
2. Part 5, WITHDRAWALS FROM IMMEDIATE PARTICIPATION FUND, Section F.
CHARGE FOR EXPENSES, is hereby amended effective July 1, 1993 to read
"$5.00" where "$10.00" now appears.
3. Eliminate the remaining $5.00 administrative fee effective January 1, 1995.
4. The minimum guaranteed rates for the Immediate Participation Fund as provided
in Part 3 of Contract No. GA-50002 for the year 1994 shall be as follows:
Minimum
Contributions Floor Guarantee Current Rates (1)
For Contributions
Made Prior To 1-1-94 6.00% 6.35%
For Contributions
Made On/After 1-1-94 6.00% 6.28% (2)
(1) "Current Rate" means ITT Hartford can adjust these rates upward or
downward as market conditions warrant, but never below the floor
minimum.
(2) This rate is guaranteed for the first quarter of 1994 and will be adjusted
quarterly thereafter.
5. Effective January 1, 1995, the Immediate Participation Fund interest rate will
be enhanced by either four (4) or five (5) basis points for each of the remaining
years of the contract.
Initial
( ontractor) (Countyl
ACKNOWLEDGEMENT
State of -G1R"er"la ACKNOWLEDGEMENT (By Corporation,
Partnership, or Individual)
County of 14-,A
The person(s) signing above for Contractor, personally known to me in the individual or business
capacity(ies) stated, or proved to me on the basis of satisfactory evidence to be the stated
individual or the representative(s) of the partnership or corporation named above in the
capacity(ies) stated, personally appeared before me today and acknowledged that he/she/they
executed it, and acknowledged to me that the partnership named above executed it or acknowledged
to me that the corporation named above executed it pursuant to its bylaws or a resolution of its
board of directors.
Dated: (j q
[Notarial Seal]
ota y Publicy
At Q
-2- U
ADMINISTRATIVE SERVICES AGREEMENT
1.0 The Agreement
1.1 This Administrative Services Agreement (ASA) is made and entered
into by and between the Contra Costa County and Hartford Life
Insurance Company, a Connecticut corporation, and its affiliates
(referred to herein as "Hartford") . This ASA is separate and
distinct from the Annuity Contract entered into between the same
parties described in subsection 2.1.3.
1.2 The intent of this agreement is to facilitate the administration
of the Contra Costa County Deferred Compensation Plan as it
pertains to accounting for deferrals, the disbursement of funds,
withholding of taxes and the proper reporting to participants,
annuitants, and governmental agencies.
1.3 The services rendered by Hartford pursuant to this agreement
shall be performed without cost to the Contract Owner.
2.0 Definitions
2.1 Unless this agreement expressly provides otherwise, the
following definitions shall apply herein.
2.1.1 "Contract Owner" means the Contra Costa County.
2.1.2 "Participant" means an employee of the Contract Owner
electing to participate in the Deferred Compensation Plan
and former employees for whom an account under The Plan and
Annuity Contract is maintained.
2.1.3 "Annuity Contract" means the Group Annuity Contract(s)
between the Contract Owner and Hartford. This Annuity
Contract is separate and distinct from the ASA described in
subsection 1.1.
2.1.4 "Plan" means the Contract Owner's Deferred Compensation
Plan.
3.0 Term
3.1 This agreement shall become effective immediately upon execution
by both parties and shall remain in force until terminated by
either party as provided herein.
y Page (1)
4.0 Relationship of the Parties
4.1 Hartford shall perform its obligations hereunder as agent for
the Contract Owner and only in accordance with instructions
received from those persons authorized to act on behalf of the
Contract Owner as specified to Hartford in writing.
4.2 The Contract Owner shall not supervise or direct Hartford other
than as expressly provided in this agreement.
5.0 Services to be Performed
5.1 The Contract Owner shall notify Hartford in writing of the
Participants entitled to receive disbursements under the terms
of the Plan.
5.2 Hartford shall issue the disbursements to the Participants in
accordance with the provisions of the Annuity Contract and the
Plan.
5.3 Disbursements shall be made from the account maintained under
the Annuity Contract in accordance with the terms of the Annuity
Contract and the Plan to the extent funds are available.
5.4 Hartford shall compute and deduct from the disbursements all
appropriate Federal and State income taxes required by law to be
withheld from Plan distributions by the Contract Owner in
accordance with Federal and State law, ordinance or regulation
governing tax withholding reporting. A detailed report
regarding such withheld taxes will be forwarded by Hartford to
the applicable taxing authority, with a copy to the Contract
Owner, within the time frame prescribed by law.
5.5 Hartford shall furnish annually to all participants receiving
payment or benefits from the Plan the tax reporting form(s)
required by the applicable taxing authority within the time
frame prescribed by law.
5.6 Utilizing Hartford's tax identification number, withheld taxes
will be remitted to the appropriate Federal and State taxing
authority.
6.0 Financial Management System
6.1 Hartford shall establish and maintain a financial management
system for the purposes of this agreement in accordance with
generally accepted accounting practices and procedures
including, for each disbursement:
1
Page (2)
6.1.1 A record of all notifications from the Contract Owner concerning
participants who are to receive disbursements under this
agreement.
6.1.2 Statements of gross disbursements under the agreement.
6.1.3 Statements of all Federal and State income taxes withheld under
this agreement.
6.1.4 Records of all income taxation reports filed with the Federal and
State governments on behalf of the Contract Owner.
7.0 Financial Reporting and Audits
7.1 Hartford shall furnish directly to the Participants a statement
of the gross disbursement under the agreement which includes the
amount of Federal and State taxes withheld and the net amount
paid with each disbursement to a Participant.
7.2 Hartford shall furnish to the Contract Owner:
7.2.1 A report containing a statement of each and every disbursement
made under this agreement which includes the amount of Federal
and State taxes withheld pursuant to subsection 5.4.
7.2.2 A payment/transaction confirmation including pertinent financial
data relating to the transaction.
7.2.3 A quarterly Statement of Account for each Participant reflecting
a summary of appropriate financial data which will be prepared
and mailed to the Contract Owner and to each Participant.
7.2.4 At the discretion of the Contract Owner, an annual and
semi-annual report for Hartford Separate Accounts for
distribution.
7.2.5 Such other reports as the Contract Owner may reasonably require
or as are required under the Annuity Contract.
8.0 Records Management
8.1 Except as otherwise provided herein, Hartford shall retain all
financial records and supporting documents, correspondence and
other written materials pertaining to the Annuity Contract, Plan
and any Federal and State income taxes withholding for three
years following the date of termination. Hartford may retain
such records and documents on microfilm.
" � Page (3)
8.2 If any audit by or on behalf of the Contract Owner has begun but
has not been completed at the end of the three-year period or if
audit findings have not been resolved at the end of the
three-year period, Hartford shall retain the records described in
subsection 8.1 until audit findings are resolved.
8.3 If, for any reason, Hartford ceases operations prior to the
expiration of records retention period required by this section,
all records as described in subsection 8.1 shall upon request of
the Contract Owner be made available to the Contract Owner.
8.4 If Hartford fails to reasonably protect records from fire, theft,
damage, deterioration or any other type of loss during the
required period of retention, the Contract Owner has the right to
make duplicate copies of all records in danger of being lost,
destroyed or damaged.
8.5 Upon reasonable written request and during normal business hours,
the Agent shall allow the Contract Owner full and complete access
to all records required to be retained by Hartford.
8.6 The Contract Owner shall have the right upon reasonable notice,
in writing exercised directly or through its independent
auditors, to examine and audit Hartford's records to determine
Hartford's compliance with the terms and conditions herein.
9.0 Termination
9.1 This agreement may be terminated without any further liability of
either party for any obligation maturing subsequent to the date
of such termination, upon 60 days written notice to the other
party.
9.2 Within 90 days of termination of this agreement the agent shall
deliver to the Contract Owner any reports required by this
Agreement, which have not already been provided.
10.0 Nondiscrimination
10.1 Hartford agrees to comply with nondiscrimination and affirmative
action requirements applicable to Hartford due to its status as a
contractor under this agreement.
11.0 Nonwaiver
11.1 The failure of the Contract Owner or Hartford at any time to
enforce a provision of this agreement shall in no way constitute
a waiver of the provision, nor in any way affect the validity of
this agreement or any part hereof, or the right of the Contract
Owner or Hartford thereafter to enforce each and every provision
hereof.
Page (4)
12.0 Assignments
12.1 Any attempted assignment of this agreement or any part of it
without the written consent of the other party shall be void
provided, however, Hartford may assign its rights and obligations
under this Agreement to an affiliate without the written consent
of the Contract Owner.
13.0 Amendment
13.1 The parties may amend this agreement only by written agreement
and approved by the President, Vice President or an Assistant
Vice President of Hartford Life Insurance Company and an
authorized person for the Contract Owner.
14.0 Notices
14.1 Any notice provided for herein shall be in writing and shall be
deemed to have been given when received by
14.1.1 United States mail addressed as follows:
Contract Owner: Contra Costa County
Attn: Joseph J. Tonda
51 Pine St. , 3rd Floor
Martinez, CA 9 553
Agent: Assistant Vice President
Asset Management Services
Hartford Life Insurance Company
P. 0. Box 2999
Hartford, CT 06104-2999
14.1.2 Personal delivery addressed as follows:
Assistant Vice President
Asset Management Services
Hartford Life Insurance Company
200 Hopmeadow Street
Weatogue, CT 06089
14.1.3 To such other persons at such other addresses which the
Contract Owner or Agent may from time to time designate in
writing.
1 Page (5)
15.0 Jurisdiction: Choice of Law
15.1 The Law of the State of California shall govern the rights and
obligations of the parties under this agreement.
16.0 Integration
16.1 This instrument and any written appendices and amendments hereto
embody the entire agreement of the parties. There are no
promises, terms, conditions, or obligations other than those
contained herein, and this agreement shall supersede all previous
communications, representations or agreements, either oral or
written, between the parties hereto with respect to this
agreement.
IN WITNESS WHEREOF, the Parties hereto have caused this agreement
to be signed and effective July 1, 1993.
By Date
HARTFORD LIFE INSURANCE COMPANY
B // 0Ca— Date
Frank C. Lord, Assistant Vice President
ASSET MANAGEMENT SERVICES
Page (6)