MMC Benefits Handbook
How Benefits Are Paid
Distribution Options
If your Vested account balance exceeds $1,000, the following forms are available:
Reason for leaving
Payment forms
Retirement or termination of employment with the Company and all affiliated employers on or after age 55 with five or more years of vesting service
You may elect:
  • distribution of your current balance in Marsh & McLennan Companies stock for investments in the MMC Stock Fund and/or in cash for other investments.
  • distribution of the value of your current balance in a one-time lump sum cash payment.
  • distribution of the value of a specified whole percentage of any MMC Stock Fund balance in Marsh & McLennan Companies stock and simultaneous distribution of the remainder of your MMC Stock Fund and current mutual fund balances in cash.
  • distribution of the value of your after-tax contributions in a one-time lump sum cash payment and simultaneous distribution of the remainder of your current balance in Marsh & McLennan Companies stock for investments in the MMC Stock Fund and cash for other investments.
  • distribution in periodic cash installments.
  • a percentage of your current balance as a one-time lump sum payment and the remainder in installments (cash installments will be suspended if you are rehired).
  • a percentage or specific dollar amount of your current balance.
Installment payments are monthly, quarterly, semi-annual or annual and cannot exceed your life expectancy.
Disability / Termination before age 55 with 5 or more years of vesting service or;
Disability/Termination on or after age 55 with less than 5 years of vesting service
Lump sum is the only permissible distribution form.
  • Lump sum distributions over $1,000 are made in Marsh & McLennan Companies stock for investments in the MMC Stock Fund, unless you elect cash, and cash for other investments.
  • Lump sum distributions up to $1,000 will be made in cash unless you elect distribution in Marsh & McLennan Companies stock for investments in the MMC Stock Fund.
Death
If your account balance is more than $1,000, your Beneficiary may take an immediate distribution or leave the account in the Plan. The maximum period your beneficiary may leave the account in the Plan depends on whether or not your beneficiary is your surviving spouse.
If your beneficiary is your surviving spouse, he or she may:
  • elect a lump sum distribution, which he or she may direct as a rollover into his or her own traditional IRA, Roth IRA or employer's tax-qualified plan, at any time up until the April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2.
  • elect installment distributions over a period of years, not to exceed the life expectancy of your spousal beneficiary, beginning no later than the April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2, which are eligible for direct rollover into your spouse's IRA or employer's tax-qualified plan.
  • elect a lump sum distribution on a percentage of the account balance and installment distributions on the remainder over a period of years, not to exceed your spouse's life expectancy, beginning no later than the April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2 (the immediate payment in cash; installments in cash).
If your beneficiary is not your surviving spouse, he or she may:
  • elect a lump sum distribution, which is eligible for direct rollover into a traditional IRA or Roth IRA, at any time within five years of your death.
  • elect installment distributions, beginning no later than 11 months after the election has been filed and ending within five years of your death.
If your account balance is $1,000 or less, your account balance will be distributed automatically and applicable taxes withheld, unless your beneficiary is eligible for and makes a direct rollover or another distribution election.
If you were already receiving installments before your death, those installment payments will be paid to your beneficiary, unless your beneficiary elects a lump sum distribution.
Participants who previously elected installments may elect a lump sum distribution at any time by submitting a Benefit Distribution Form.