Facts Regarding the Termination of Your Career Contract

Transcription

1 Facts Regarding the Terminatin f Yur Career Cntract Cntents Disclaimer... 1 Events that Trigger Career Cntract Terminatin... 2 Benefits Impact... 2 Health and Welfare Benefit Optins... 2 Retirement Benefit Optins... 5 Unemplyment... 7 Cmmissins Impact... 7 Indebtedness... 8 Cmpany Prperty... 8 New Business and Service t MassMutual Plicyhlders... 9 Errrs and Omissins (E&O) Cverage fr Career Agents... 9 Cntacts Disclaimer This dcument is nt intended t prvide legal, tax, r financial advice but is prvided t assist yu by highlighting items yu may wish t cnsider r act upn fllwing the terminatin f yur cntract. It is nt all-inclusive, nr is it intended t apply t each agent s unique circumstances. The infrmatin presented here is intended as general infrmatin, but the prvisins f the cntract, benefit plans, grup plicy, etc., are the final authrity. Benefits are determined by the terms f the plans in effect at the time yu becme eligible fr the benefits. Refer t apprpriate Summary Plan Descriptins (SPDs) and Summaries f Material Mdificatin (SMMs) fr detailed infrmatin n available benefits. SPDs and SMMs are available n FieldNet My Practice Benefits Summary Plan Descriptins & Imprtant Inf. Yu may als request a cpy f SPDs and SMMs by cntacting MassMutual Advisr Operatins. MassMutual reserves the right t mdify, revke, change, suspend r terminate any ne r all plans, prgrams, plicies, 2017 Massachusetts Mutual Life Insurance Cmpany (MassMutual), Springfield, MA All rights reserved. OS Page 1 f 11

2 benefits r services described in this dcument r the underlying plan dcuments at any time and frm time t time, with r withut ntice. In the event f a discrepancy between descriptins in this dcument and infrmatin in relevant benefit plan dcuments, the plan dcuments will gvern. Receipt f this material des nt imply yur eligibility fr any ne r all f the plans and prgrams described. All infrmatin described in this dcument is current as f the January 2018 publicatin date. Events that Trigger Career Cntract Terminatin Circumstances that trigger the terminatin f an agent s career cntract include, but are nt limited t, the fllwing: The career agent des nt satisfy the minimum prductin requirement The career agent vluntarily terminates his r her cntract; this includes retirement The career agent signs anther type f cntract, including a brker, agent emeritus r retired brker cntract (executin f these cntracts autmatically terminates a career cntract) The general agent r general manager terminates the cntract The agency vice president (r ther such persn verseeing the agency) terminates the cntract, nly when there is n general manager r n general agent The career agent dies Benefits Impact Health and Welfare Benefit Optins Medical, Dental and Visin Cverage, Health Savings Accunt (HSA) and Health Care and Dependent Care Flexible Spending Accunts (FSAs) If yu are enrlled in medical, dental, visin and/r a health care r dependent care flexible spending accunt at the time f cntract terminatin, yur cverage will end n the day yur cntract terminates. COBRA Cntinuatin Cverage The Cnslidated Omnibus Budget Recnciliatin Act (COBRA) f 1986 prvides fr cntinuatin f grup health cverage that therwise might be terminated due t certain events, including cntract terminatin. Yu and yur dependents may elect t cntinue yur medical, dental, visin, Agent Assistance Plan ( AAP ) and, in sme Facts Regarding the Terminatin f Yur Agent Cntract Page 2 f 11

3 cases, Health Care FSA cverage, in effect immediately prir t the date yur cntract terminates if the cverage ends due t yur cntract terminatin. Yu and yur dependents will nt be eligible fr COBRA if (a) yur career cntract terminates due t grss miscnduct, as defined by MassMutual; r (b) yur cverage ends due t failure t timely pay benefits debt. Yu will nt be eligible t elect COBRA fr yur Health Care FSA if yur reimbursements t date exceeded yur accunt balance n the date yur cntract terminates. If yu r yur cvered dependents are eligible fr COBRA, a COBRA ntice will be sent by MassMutual s COBRA administratr, Benefit Cncepts, Inc., a divisin f WageWrks, within 14 days f the date MassMutual receives ntice f yur cntract terminatin. Yu must cmplete the COBRA electin frm and return it t Benefit Cncepts within 60 days f receipt. Yu have an additinal 45 days frm the date f yur COBRA electin t make the first premium payment, which must include all mnthly premium payments retractive t the date yur regular grup cverage ended. The premium fr cntinued medical, dental, visin r AAP cverage is the full, unsubsidized cst f such cverage, plus a tw percent administrative fee. The premium fr COBRA cverage fr the Health Care FSA is equal t yur previusly elected mnthly cntributin amunt, plus a tw percent administrative fee. All COBRA premiums/cntributins are made n an after-tax basis. Payment f claims made under COBRA cntinuatin cverage will nt begin until Benefit Cncepts receives the COBRA electin frm and the required premium payment. COBRA cverage fr medical, dental, visin r AAP cverage is generally available fr 18 mnths (extensins may apply). COBRA cverage fr the Health Care FSA is generally nly available thrugh the end f the calendar year in which yur cntract terminates. Fr infrmatin abut COBRA, refer t the applicable summary plan descriptin r cntact Benefit Cncepts at Health Savings Accunt If yu had a Cigna Chice Fund health savings accunt thrugh HSA Bank while active, nce yur cntract terminates, yur HSA will cnvert t an individual accunt. As the accunt hlder, yu will becme respnsible fr the accunt s mnthly maintenance fees. If desired, yu may transfer yur accunt t the savings institutin f yur chice. Cntact HSA Bank fr infrmatin abut yur transfer ptins. Health Care FSA If yu d nt elect COBRA cntinuatin cverage, yu may cntinue t file claims fr the reimbursement f eligible expenses that were incurred befre yur cntract terminated until 1) yur balance is exhausted, r 2) until March 31 f the year fllwing yur cntract terminatin date, whichever ccurs first. Expenses incurred after the terminatin f yur career cntract are nt eligible fr reimbursement. Reimbursements cannt exceed any remaining Health Care FSA balance, if any. Facts Regarding the Terminatin f Yur Agent Cntract Page 3 f 11

4 Dependent Care FSA Yu may cntinue t file claims fr the reimbursement f eligible expenses that were incurred while yu were a participant until 1) yur balance is exhausted, r 2) until March 31 f the year fllwing yur cntract terminatin date, whichever ccurs first. Expenses incurred after the terminatin f yur career cntract are nt eligible fr reimbursement. Reimbursements cannt exceed any remaining Dependent Care FSA balance, if any. Life and Disability Grup Term Life (GTL) and Dependent Life Insurance Cnversin Optin Yur basic GTL, any supplemental GTL and any dependent life cverage ends immediately upn cntract terminatin. Yu may cnvert yur GTL insurance, including supplemental GTL, and/r dependent life insurance cverage, t an individual whle life plicy. Yu must cmplete the Ntice f Right f Cnversin Frm and prvide the first premium payment within 31 days f yur cntract terminatin. T cnvert GTL and/r dependent life insurance t a whle life plicy: 1. AgentBenefitQuestins@MassMutual.cm r call MassMutual Advisr Operatins at , Ext , and request a Ntice f Right f Cnversin Frm. 2. Call Anthem Life at t cmplete cnversin and arrange fr premium payment. 3. Steps 1 and 2 must be cmpleted within 31 days f yur cntract terminatin. Grup Variable Universal Life Plan fr Tp Prducers (GVUL) Yur cverage under the GVUL Plan ends n March 31 fllwing the date yur career cntract terminates. Cverage under the GVUL Plan is prtable. Yu can cntinue GVUL cverage by paying the entire premium. Yu can als chse t cntinue nly a prtin f the cverage, r let it lapse. Cntact MassMutual Wrkplace Slutins at fr mre infrmatin abut cntinuing GVUL. Grup Disability Cverage Grup disability cverage (including shrt- and lng-term disability) ends immediately upn terminatin f yur cntract. Grup disability cverage cannt be cnverted int an individual plicy. Facts Regarding the Terminatin f Yur Agent Cntract Page 4 f 11

5 Retirement Benefit Optins If yur career cntract terminates (vluntarily r invluntarily) and yu d nt therwise cntinue yur relatinship with MassMutual (by signing a new r different cntract r by becming a MassMutual emplyee) yu may be eligible fr distributins frm MassMutual s retirement plans. If yu have a separatin frm service with MassMutual and yu receive a vluntary qualified retirement plan distributin r receive a distributin frm a nnqualified plan nt subject t Sectin 409A f the Internal Revenue Cde ( IRC ), yu cannt be recntracted as a career agent by MassMutual fr at least six mnths frm yur career cntract terminatin date. If yu receive a distributin frm an IRC Sectin 409A-gverned nnqualified retirement plan, yu cannt cntract in any capacity fr at least ne year. If yu have n separatin frm service because yu signed anther cntract (e.g., brker r agent emeritus) fllwing terminatin f yur career cntract, then yu cannt receive a nnqualified distributin frm a nnqualified plan subject t 409A until yu terminate all cntracts and meet the applicable plan s distributin requirements. MassMutual Pensin Plan If yu have at least three years f service at the time yur cntract terminates, yu are vested in yur benefit under the MassMutual Pensin Plan and will be entitled t a distributin at the time permitted under the terms f the plan. If yu have less than three years f service at the time yur cntract terminates, yu are nt vested in yur benefit under the Plan and yu will frfeit yur right t that benefit unless yu resume participatin in the plan within five years f yur cntract terminatin and then meet the plan s vesting requirements. If, upn terminatin f yur career cntract fr any reasn, including retirement, the present value f yur vested accrued pensin benefit is $1,000 r less, yu must receive a distributin. This distributin may be in either the frm f: a lump sum (Nte: if yu separate frm service befre age 55 and receive a lump-sum distributin befre age 59½, yu may be subject t a 10 percent federal tax penalty fr early distributin), r a rllver int an individual retirement accunt (IRA) r an emplyer s qualified retirement plan. If yu d nt make an electin within 60 days frm ntificatin f yur ptins, yur benefit will be autmatically distributed t yu as a lump sum. If the present value f yur vested accrued pensin benefit is greater than $1,000 yu will nt be required t receive a mandatry distributin and will receive infrmatin frm MassMutual U.S., Wrkplace Slutins abut the ptins available t yu. Fr mre infrmatin, cntact a MassMutual U.S., Wrkplace Slutins custmer service representative tll-free at , 8 a.m. t 8 p.m. ET n business days. Chse Facts Regarding the Terminatin f Yur Agent Cntract Page 5 f 11

6 the MassMutual Pensin Plan frm the list f plans and then pt t speak t a custmer service representative. MassMutual Thrift (401(k)) Plan If yu are at least partially vested in yur plan accunt upn yur cntract terminatin, and have a separatin frm service as defined in the plan, yu will be eligible t receive a distributin f the vested prtin f yur plan accunt. After terminatin, yu cannt make additinal cntributins t the plan and yu cannt take any new lans. If yu have an utstanding balance n any existing lans, they will be due and payable within 60 days f yur cntract terminatin date. After 60 days, any unpaid utstanding lan amunts will be defaulted, and will be cnsidered a distributin t yu, subject t taxatin and, depending n yur age, early withdrawal penalties. Yur cntributins t the plan are always fully vested. MassMutual cntributins, if any, becme vested ver time as indicated n the chart, at right. If yu are nt vested at the time yur career cntract terminates, yu frfeit yur right t the unvested prtin f yur plan benefit, unless yu subsequently resume participatin in the plan and meet the plan s vesting requirements. If yu have a life insurance plicy paid fr thrugh the Thrift Plan, yu must surrender the plicy r have wnership f the plicy transferred t yu at the time yur cntract terminates. Fr mre infrmatin, cntact MassMutual Wrkplace Slutins tll-free at , weekdays between 8 a.m. and 8 p.m. ET. If upn terminatin f yur career cntract fr any reasn including retirement, yur vested plan accunt balance is $1,000 r less, yu must receive a distributin. This distributin may be in either the frm f: COMPLETED YEARS OF SERVICE VESTED PERCENTAGE a lump sum (Nte: if yu separate frm service befre age 55 and receive a lump-sum distributin befre age 59½, yu may be subject t a 10 percent federal tax penalty fr early distributin) r a rllver int an individual retirement accunt (IRA) r an emplyer s qualified retirement plan. If yu d nt make an electin within 60 days frm ntificatin f yur ptins, yur benefit will be autmatically distributed t yu as a lump sum. If yur vested accunt balance is greater than $1,000, yu will nt be required t receive a mandatry distributin and yu will receive infrmatin frm MassMutual Wrkplace Slutins abut the ptins available t yu. Fr mre infrmatin, cntact MassMutual Wrkplace Slutins tll-free at , weekdays between 8 a.m. and 8 p.m. ET. Facts Regarding the Terminatin f Yur Agent Cntract Page 6 f 11

7 Massachusetts Mutual Life Insurance Cmpany Agent Pensin Plan If upn terminatin f yur career cntract fr any reasn including retirement, the present value f yur accunt balance in the plan is less than r equal t $1,000, yu must receive a distributin. This distributin may be in either the frm f: a lump sum (Nte: if yu separate frm service befre age 55 and receive a lump-sum distributin befre age 59½, yu may be subject t a 10% federal tax penalty fr early distributin) r a rllver int an individual retirement accunt (IRA) r an emplyer s qualified retirement plan. If yu d nt make an electin within 60 days frm ntificatin f yur ptins, yur benefit will autmatically be distributed t yu as a lump sum. If the present value f yur accunt balance in the plan is greater than $1,000, yu are nt required t receive a mandatry distributin and will receive infrmatin frm MassMutual Wrkplace Slutins abut the ptins available t yu. Fr mre infrmatin, cntact MassMutual Wrkplace Slutins tll-free at , weekdays between 8 a.m. and 8 p.m. ET. Nnqualified Plans Distributins frm any nnqualified plan will be made accrding t the terms f the specific plan. Nnqualified payments generally cannt be deferred t a later date. Hwever, in sme cases, yu may nt be eligible t receive an immediate distributin. Fr example, if yu terminate yur career cntract and enter int anther cntract with MassMutual, a legal separatin frm service may nt have ccurred and distributins may be delayed. Unemplyment Independently cntracted sales agents (including statutry emplyees) are nt cvered emplyees fr state unemplyment insurance law purpses. Exceptins may apply fr nn-califrnia-based financed agents and sales managers nly. Cmmissins Impact The Massachusetts Mutual Life Insurance Cmpany Agent Pensin Plan was frzen and clsed t new participants effective February 28, 2001, at which time all active participants became fully vested. Vested Cmmissins: After terminatin (ther than fr retirement), nly vested cmmissins are payable. Vested cmmissins fr this purpse are defined in the Facts Regarding the Terminatin f Yur Agent Cntract Page 7 f 11

8 cmpensatin sectin f yur agent cntract and/r in the Career Agent Cmmissin Schedule and Vesting Prvisin. N further cmmissins n business generated while under a Career Capital Plan will be payable. Nn-Vested Cmmissins: All nn-vested cmmissins cease unless yur cntract is terminated due t yur retirement. If yu retire, yu will cntinue t receive yur nn-vested cmmissins in accrdance with the cmpensatin sectin f yur agent cntract and/r in the Career Agent Cmmissin Schedule and Vesting Prvisin. Annualizatin f Cmmissins: Cmmissin advances n certain mnthly business (annualizatin) cease immediately upn yur terminatin. Unearned cmmissin advances must be repaid within 30 days after yur terminatin. Indebtedness (Applies t nn-financed agents nly) Full settlement f any indebtedness, which culd result frm lans, cmmissin advances, cmmissin charge-backs, E&O charges (see next page), benefit deductins, supply charges, etc., is expected within 30 days after yur cntract terminatin. If yu fail t repay yur indebtedness, MassMutual has the right t apply any r all f yur cmmissins t the indebtedness until it is repaid in full. In this event, yu will receive a semi-mnthly vucher shwing, amng ther things, the cmmissins yu earned, the amunt applied t reduce yur debt, and the current balance f yur indebtedness. Nte: A vucher will nly be generated when there is new activity fr that cmmissin cycle (e.g., cmmissins earned, new charges). If there is any indebtedness balance remaining after 30 days, MassMutual will ntify yu in writing and make an attempt t reslve the indebtedness. Failure t pay any utstanding balance may result in turning the indebtedness ver t a debt cllectin agency fr recvery. Cmpany Prperty Yu must return all Cmpany r agency prperty t the general agent when yur cntract terminates. Examples f prperty t be returned include, but are nt limited t: Rate manuals, Sciety 1851 Series training materials, and ther training materials. Client files maintained in cnnectin with yur business as a MassMutual agent and a MML Investrs Services, LLC (MMLIS) r MSI registered representative (whether in hard cpy r electrnic frm). Nte: The Cmpany has n interest in, r claim t, any recrds yu have fr yur clients with respect t any nn- MassMutual, nn-mmlis r nn-msi business. Yu may retain, at yur expense, a Facts Regarding the Terminatin f Yur Agent Cntract Page 8 f 11

9 cpy f yur existing clients files nly as permitted under applicable federal and state privacy laws and regulatins. Furniture and equipment, paid fr in whle r in part by the Cmpany r general agent, including cmputer and related equipment, cmputer sftware, desks, chairs, file cabinets, calculatrs, and ther similar equipment. Sales materials and statinery. Once yur cntract is terminated, yu may nt represent yurself as a MassMutual agent. Yu may nt use any sales material that refers t the Cmpany and/r the agency and yu may nt use business cards and letterhead bearing MassMutual s r the agency s name. In additin, unless yu retain a brker s cntract and cntinue as a registered representative f MMLIS, yu may nt use business cards and letterhead that reference MMLIS. Even if yu subsequently sign a brker s cntract with the general agent, that cntract des nt authrize yu t present yurself as representing MassMutual. New Business and Service t MassMutual Plicyhlders New Business: If yur general agent wants t cntinue t allw yu t submit new business t the agency, he r she may d s nly after signing an apprpriate cntract with yu. Service t existing MassMutual plicyhlders: It is Cmpany plicy t prvide uninterrupted service t plicyhlders. Upn yur cntract terminatin, every effrt will be made t prmptly assign anther agent t service the newly rphaned plicyhlders. In limited situatins, with the general agent s apprval, yu may cntinue t prvide service t MassMutual plicyhlders. Errrs and Omissins (E&O) Cverage fr Career Agents N acts f the agent after the date f the terminatin f any career cntract are cvered under the Prfessinal Liability Plicy (Errrs & Omissins r E&O) currently in place. Hwever, there is an unlimited discvery perid fr claims made against yu fr the alleged errrs in the sale/servicing f MassMutual prducts if the errr tk place befre yur career cntract terminated. This means that if, fllwing yur cntract terminatin, any claim is made against yu regarding selling r servicing a MassMutual prduct when yu were a MassMutual career cntract agent, and yu have n ther E&O cverage that will respnd, yu will be eligible fr cverage under the MassMutual-spnsred prgram, unless the Cmpany changes carriers r the insurance cntract is amended at a future date and this benefit is lst. As fr any business yu brkered with ther insurers while a MassMutual agent, yu have ne year frm the date yur career cntract terminates (and this perid may als be shrtened if the master plicy terminates r is amended) t make a claim against this plicy. The current carrier als ffers yu the ptin t purchase a tw-year reprting perid, if yur cntract is terminated. Please cntact An Affinity at t request this Facts Regarding the Terminatin f Yur Agent Cntract Page 9 f 11

10 ptin. If yur career cntract terminates due t retirement r ttal disability, yur E&O cverage cntinues as prvided belw. Yu will be billed fr E&O cverage in the mnth in which yur career cntract terminates. All plicies are written n a Claims Made and Reprted Basis, subject t the terms and cnditins cntained in these plicies. Claims decisins are made by the insurance carrier. This dcument des nt guarantee cverage f any particular claim. If yu chse t purchase a new E&O plicy, either frm anther carrier r frm yur state chapter f the Natinal Assciatin f Insurance and Financial Advisrs (NAIFA), and want t prevent any gap in yur E&O prtectin yu must cntact either the new carrier r NAIFA n later than the date yur cntract with MassMutual is terminated. We highly recmmend that yu cnsider this ptin t prtect yurself frm ptential claims. If, when yur career cntract terminates, yu are aware f any situatin which may lead t a claim, send a full, written descriptin f the circumstances t the carrier befre yur cverage/cntract is terminated. Please send yur ntice t Casualty Claims Department, Everest Natinal Insurance C., P.O. Bx 830, 477 Martinsville Rd., Liberty Crner, NJ r t everestnatinalnjclaim@everestre.cm. It is yur respnsibility t submit any ptential claim t the carrier (MassMutual des nt d s) fr cnsideratin. There is n E&O insurance prgram available thrugh MassMutual fr individuals with brker cntracts, except fr thse retired, full-time career agents n special brker cntracts. If yu btain a brker s cntract with MassMutual, yu shuld seek an individual plicy in the prfessinal liability insurance market. As mentined abve, state chapters f NAIFA can assist r NAIFA s insurance brker can be reached at If yu are a brker wh is als a registered representative f MMLIS, yu are cvered under a separate E&O prgram thrugh MMLIS. The MMLIS E&O prgram cvers business sld thrugh MMLIS and MassMutual. The MMLIS E&O prgram als cvers the sale and servicing f utside insurance prducts. The MMLIS prgram has an unlimited reprting perid fr certain types f prducts and nt fr thers. Please refer t the MMLIS E&O Highlights guide fr details. There is n unlimited reprting perid under the MMLIS prgram if yur registratin is terminated fr disciplinary reasns. In additin, a letter will be sent t yu directly by ur third-party administratr, An Affinity, explaining the cverage available n the prgram. If yu have any questins abut enrlling/billing (MMLIS Direct) in this prgram, please call MMLIS Distributin Cntracting Services at , Ext Facts Regarding the Terminatin f Yur Agent Cntract Page 10 f 11

11 Cntacts Subject f Questin Health and Welfare Benefits Cntact MassMutual Advisr Operatins, C State Street, Springfield, MA AgentBenefitQuestins@MassMutual.cm Phne: Phne: , Ext , business days between 8 a.m. and 6 p.m. ET Benefit Questins Qualified Pensin r Thrift Benefits Nnqualified Retirement Benefits COBRA Benefits MassMutual US, Wrkplace Slutins Participant Infrmatin Center (PIC) Website: Phne: , business days between 8 a.m. and 9 p.m. ET Newprt Grup Website: Phne: , 8:30 a.m. 8 p.m. ET Benefit Cncepts, Inc. (a divisin f WageWrks, Inc.): Grup Term Life Insurance Cnversin Call MassMutual Advisr Operatins t request the Ntice f Cnversin Frm within 31days f yur cntract terminatin. After cnversin, Anthem Life: GVUL Cntinuatin MassMutual US, Wrkplace slutins: Health Savings Accunt Cigna: Cntract Terminatin Questins Terminatin f Career Cntract Crprate, Agent Emeritus, Brker Cntracts and Agent Retirement Errrs and Omissins (E&O) Cverage MassMutual Advisr Operatins, C State Street, Springfield, MA Phne: , Ext , business days between 8 a.m. and 6 p.m. ET Lainee Beigel, An Risk Services Nrtheast, Inc. 199 Water Street New Yrk, NY (ptin 2) Telephne: lainee.beigel@an.cm Facts Regarding the Terminatin f Yur Agent Cntract Page 11 f 11