MMC Benefits Handbook
The period of time each year designated by Marsh & McLennan Companies, Inc. when you may generally enroll in plans and make changes to your benefit elections, if allowed by the Plan.
Average Market Price
The average market price is the fair market value (that is, the average of the high and low prices) of the stock on the New York Stock Exchange composite tape on that particular day. If no sale of shares occurred on such date, then the fair market value will be the average of the high and low prices of the stock on the next preceding day on which sales were made on the New York Stock Exchange.
A payment by Marsh & McLennan Companies, Inc. out of earnings, to Marsh & McLennan Companies, Inc.'s shareholders.
Eligible Base Pay
For Marsh & McLennan Companies, Inc. employees (other than Marsh & McLennan Agency (MMA)):
Eligible base pay is your base pay rate excluding overtime, bonuses, incentive pay, commissions, long term disability pay or other forms of additional compensation.
For MMA employees:
Eligible base pay is your base pay (regular earnings and/or producer salary) and your regular draw against commissions. Eligible base pay does NOT include overtime, bonuses, incentive pay, commissions, long term disability pay and other extra compensation.
W-9 Form (Request for the taxpayer identification number (TIN) and certification) is the standard form published by the Internal Revenue Service (IRS), used by payers to request TIN information.
W-8BEN (certificate of foreign status) is the standard form published by the Internal Revenue Service (IRS) used by payers to request information regarding US non-citizen status.
The excess of sales price over purchase price.
Internal Revenue Code Limit
- Under current Internal Revenue Code (IRC) rules, you may buy up to $25,000 worth of shares during a plan year, based on the undiscounted fair market value of the shares at the start of the plan year
- Shares of Marsh & McLennan Companies, Inc. common stock are purchased at the end of each calendar quarter; while there is no separate per-quarter limit, there is a plan year limit on the number of shares that can be purchased.
- If you reach the maximum number of shares, the balance you accumulated (contributions and interest accrued) that exceeded the amount actually needed to purchase shares at the end of that quarter will be refunded to you in the next available pay cycle.
- If you have purchased the maximum number of shares before the last quarter of the plan year, you may not contribute in any remaining periods.
How the IRC limit applies to you
Suppose the undiscounted share price in effect at the start of the 2019-2020 plan year is $80. Under the IRS rule, the maximum number of shares that you can buy for the plan year is 312.50 ($25,000 ÷ $80 = 312.50) (your purchased shares can be whole and fractional shares). Let's assume that you purchase 150 shares after the first purchase period. This leaves you with 162.50 shares to purchase in subsequent purchase periods. At the end of the second purchase period, you purchase 150 shares. This leaves you with 12.50 shares to purchase in subsequent periods. At the end of the third purchase period, you purchase 12.50 shares and reach the maximum share limit, as illustrated below
* This example for illustrative purposes only. The Plan allows for fractional shares, so this example assumes a maximum share limit for the Plan year of 312.50 shares.
As you can see, you would reach the maximum share limit of 312.50 during the third purchase period. Your balance would purchase the remaining 12.50 shares at the discounted purchase price as of June 28. Any remaining cash balance would be refunded in your July 15 paycheck and your contribution rate automatically would be reduced to 0%. You would not contribute in the fourth purchase period because you have already reached the maximum share limit for the Plan year. Provided you remain eligible, your contributions would resume at the start of the next Plan year, beginning in October.
Long Term Disability
A medical condition that lasts for an extended period of time, usually more than six months, and makes you unable to perform your job. Please see the Long Term Disability sections(s) of the Benefits Handbook for more information about Long Term Disability.
The deficit of sales price over purchase price.
Short Term Disability
A medical condition that lasts for a period of time, usually less than six months, and makes you unable to perform your job. Please see the Short Term Disability section of the Benefits Handbook for more information about Short Term Disability.
Vesting service generally includes the years of service based on your regular or temporary employment with the Company. Vesting service may also include:
- service with companies in the Marsh & McLennan Companies, Inc. controlled group that are not participating in the Plan;
- credit for service if you were initially hired by the Company or MMA as a leased employee and you subsequently become a regular or temporary employee; and
- credit for pre-acquisition service for certain purposes under the Plan, as determined by the Company acting through its representative for employees of acquired businesses.
Vesting service is used to determine when you are eligible for the Plan.