MMC Benefits Handbook
Paying for Coverage
Who pays for retiree medical coverage?
The Company and eligible retirees share the cost of retiree medical coverage, based on retirees' years of service. The Company determines the cost to be borne by the retiree, and the Company pays the remainder of the cost. Retirees with less than 10 years of vesting service pay the full cost of retiree medical coverage.
Am I eligible for Company-subsidized retiree medical coverage?
You are eligible for Company-subsidized retiree medical coverage (the annual increase in Company contributions for retiree medical coverage will not exceed 5%) if you:
- Are participating in the Retiree Medical Plan as of January 1, 2006;
- Are actively employed by Marsh & McLennan Companies or one of its participating subsidiaries as of December 31, 2005 and had, as of that date, either attained age 45 or completed at least 15 years of vesting service; or
- Certain other employees who, in conjunction with a business reorganization in which the employees would no longer be working for an employer participating in the Retiree Medical Plan, retained eligibility for the Retiree Medical Plan provided that they remain employed within Marsh & McLennan Companies controlled group.
Eligibility for Company-subsidized medical coverage is dependent upon meeting the retiree medical coverage criteria as previously stated in the retiree eligibility section.
How much do I have to pay if I am eligible for Company-subsidized retiree coverage?
The cost of Company-subsidized retiree medical coverage (if you satisfy the eligibility requirements) depends on your age, length of Company service, date of hire and the level of coverage you choose.
The cost of retiree coverage takes into consideration the increased cost in providing coverage for retirees.
The annual increase in Company contributions for retiree medical coverage will not exceed 5%.
* If you are a former Sedgwick employee who retired prior to July 1, 2001 your contributions are equal to that of a retiree with less than 10 years of service.
How much do I have to pay if I am not eligible for Company-subsidized retiree coverage?
If you are not eligible for Company-subsidized retiree medical coverage, you pay the full monthly cost for coverage based on the Marsh & McLennan Companies Retiree Medical Plan's group rates.
The cost of unsubsidized retiree medical coverage depends on the level of coverage you choose.
Can my medical premiums be deducted directly from my bank account?
If you are eligible and elect to enroll for retiree medical coverage, a Benefits Billing Services (BBS) billing record is established for you with Trion, Marsh & McLennan Companies' Retiree Medical Billing Administrator. Once your billing record is established with Trion BBS Billing, an "Automatic Payment (ACH) Request" form is sent to you for automatic payment deduction requests from a US checking, savings or money market account.
What happens if I am eligible for Company-subsidized retiree medical coverage, retire and am later rehired?
If you are eligible for Company-subsidized retiree medical coverage, retire and are later rehired, you will retain your eligibility for the retiree medical coverage, provided you initially retired from a participating Company with at least 10 years of vesting service (meeting the current minimum service requirement for the Company subsidy) and you elected Marsh & McLennan Companies retiree medical coverage when you initially retired and were still covered under the Plan when you were rehired.
If you are eligible for the retiree medical coverage (retire from a participating Company at age 55 or older with at least five years of vesting service or age 65 or older), you will forfeit the retiree medical coverage and will not be eligible for any retiree medical coverage when you retire again from the Company if any of the following occur:
- you leave the Company before you are eligible for retirement
- you do not initially retire from a participating Company
- you leave a participating Company after you are eligible for retirement and either you do not elect retiree medical coverage or you drop the coverage prior to the date of your rehire.