Note 8. Exempt
Party-in-Interest
Transactions
Certain plan investments are in funds
managed by the Trustee and certain subsidiaries of the Company. Fees paid by the Plan for trustee, custodial and investment management services amounted to $56 for the year ended December 31, 2018. The group annuity contract issued by a
subsidiary of the Company was terminated in June 2018 and there were no fees paid by the Plan to the subsidiary in 2018. In addition, certain Plan investments include shares of mutual funds that are advised and distributed by a subsidiary and shares
of Hartford Stock. At December 31, 2018 and 2017, the fair value of mutual funds held by the Plan was $869,341 and $672,361, respectively. At December 31, 2018 and 2017, the Plan held 3,882,431 shares and 4,190,646 shares of Hartford Stock
with a cost basis of $130,077 and $139,664, respectively. The shares of Hartford Stock had a fair value of $172,574 and $235,850 at December 31, 2018 and 2017, respectively. During the year ended December 31, 2018, the Plan recorded
dividend income from Hartford Stock and The Hartfords mutual funds of $10,430.
Note 9. Plan Amendments and Other Changes
Effective January 1, 2018, the definition of Service was revised to give credit for employment with Aetna, Inc. to former Aetna employees who became
Company employees on January 1, 2018 as a result of the Companys acquisition of Aetnas group life and disability business. In addition, if these former Aetna employees do not make a proper enrollment election, they will be
automatically enrolled in the Plan 90 days after January 1, 2018 to make
before-tax
contributions equal to 6% of eligible compensation.
Effective January 1, 2018, a provision was added to the Plan to reduce the administrative burden of filing for benefits in cases where the beneficiary is
unable to care for their affairs due to illness or accident, or is a minor or has died.
Effective December 1, 2018, the definition of Service was
revised to give credit for employment with
Y-Risk
to former
Y-Risk
employees who became Hartford employees on December 1, 2018 as a result of the
Y-Risk
transaction. In addition, if these former
Y-Risk
employees did not make a proper enrollment election, they were automatically enrolled in the Plan as of January 7,
2019 (or as soon as practicable thereafter).
Effective January 1, 2019, the Plan was amended so that (a) a member is no longer required to
obtain a plan loan before requesting a hardship withdrawal; (b) member contributions will no longer be suspended after receipt of a hardship withdrawal; and (c) earnings on
before-tax
contributions
will be included as part of a hardship withdrawal.
Effective May 23, 2019, the definition of Service was revised to give credit for employment with
Navigators to former Navigators employees who became Hartford employees on May 23, 2019 as a result of the Navigators transaction. In addition, if these former Navigators employees do not make a proper enrollment election, they will be
automatically enrolled in the Plan as of the later of (a) the first payroll period (or as soon as practicable thereafter) in which his or her 90
th
day of active employment occurs after
May 23, 2019 or (b) the first payroll period (or as soon as practicable thereafter) after the end of the
30-day
automatic enrollment notice period.
Effective May 23, 2019, the definition of Eligible Employee was amended by adding the following to the list of Ineligible
Persons: (a) a person who is a nonresident alien and who receives no earned income (within the meaning of Code Section 911(d)(2)) from the Company or its affiliate which constitutes income from sources within the United States (within
the meaning of Code Section 861(a)(3)); and (b) a person who is a U.S. citizen working in a foreign country for the Company or its affiliate who is not on the U.S. payroll of Hartford Fire.
Effective July 1, 2019, the Plan was amended to (a) increase the maximum member contribution from 30% of eligible pay to 50%; and (b) allow
partial loan prepayments.
Note 10. Subsequent Events
Management has evaluated events subsequent to December 31, 2018, through the date the financial statements were issued, noting there are no subsequent
events requiring adjustment or disclosure in the financial statements.
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