MMC Benefits Handbook
Vesting
Your account is held in trust for your benefit, and your rights depend on whether you have a Vested interest in your account.
If your account is 100% vested, you have the right to receive the full account balance when you satisfy the conditions for withdrawal or distribution (such as termination of employment with the Company and all affiliated employers).
If your account is partially vested, you have the right to receive only the vested portion of the Company contribution account balance when you satisfy the conditions for withdrawal or distribution. For example, if you are 33-1/3% vested and your Company contribution account balance is $100, you have a nonforfeitable right to $33.33.
Vested Interest in Your Contributions
You are always fully vested in the value of your own contributions. This includes the portion of your account attributable to your Roth 401(k), before-tax, traditional after-tax, rollover, catch-up and Roth catch-up contributions (if applicable), as well as any in-plan Roth conversion amounts. You are also fully vested in the portion of your account attributable to any dividends paid in the MMC Stock Fund and in any Special Company Contributions made under the Plan.
Vested Interest in Company Matching and Fixed Company Contributions
The following vesting schedule applies to:
  • your Company matching contributions, if you are an active employee or an employee who terminated employment on or after January 1, 2006 and you have an hour of Vesting Service on or after January 1, 2006; and
  • any fixed Company contributions,
Years of vesting service
Vested percentage
Less than 2
0%
After you complete 2 years of vesting service
33-1/3%
After you complete 3 years of vesting service
66-2/3%
After you complete 4 years of vesting service
100%
For example, if you have three years of vesting service, you have the non-forfeitable right to 66-2/3% of the value of your account attributable to Company contributions.
If you were employed prior to December 31, 2007 with Kroll or Factual Data, you became 100% vested in the Company Matching Contributions in the Marsh & McLennan Companies 401(k) Savings & Investment Plan effective January 1, 2008. If you are a former Kroll or Factual Data employee with no account balance in the Kroll or Factual Data Plan with a termination date later than December 31, 2002 and are rehired on or after January 1, 2008, you shall immediately be 100% vested in the Company Matching Contributions in the Marsh & McLennan Companies 401(k) Savings & Investment Plan.
If you had a vested account balance in the Kroll Plan or Factual Data Plan that was transferred to the Marsh & McLennan Companies 401(k) Savings & Investment Plan effective August 1, 2008 and you are rehired on or after January 1, 2008, you shall immediately be 100% vested in all Company Matching Contributions credited to your account in the Marsh & McLennan Companies 401(k) Savings & Investment Plan.
Regardless of your years of vesting service, you are 100% vested in Company contributions when:
  • you attain age 65 (normal retirement age) while employed by the Company.
  • you are approved for benefits under the Marsh & McLennan Companies Long Term Disability Plan in accordance with that plan's provisions.
  • you die (while employed by the Company).
  • the Plan is terminated in full or there is a partial termination that affects you. (You will be notified if this occurs.)
Employees of Marsh & McLennan Companies hired prior to January 1, 1998 who were vested in Company Matching Contributions under the Plan's provisions as then in effect are always fully vested in Company Matching Contributions*.
Employees of Marsh & McLennan Companies hired on or after July 1, 2002 and who terminated employment with Marsh & McLennan Companies and all affiliates on or before December 31, 2005 are subject to the following vesting schedule for Company Matching Contributions:
Years of vesting service
Vested percentage
Less than 2
0%
After you complete 2 years of vesting service
20%
After you complete 3 years of vesting service
40%
After you complete 4 years of vesting service
67%
After you complete 5 years of vesting service
100%
For example, if you completed three years of vesting service, you have the non-forfeitable right to 40% of the value of your account attributable to Company Matching Contributions.
For employees hired on or after January 1, 1998 and who terminated employment with Marsh & McLennan Companies and all affiliates on or before June 30, 2002, the following vesting schedule applies to Company Matching Contributions:
Years of vesting service
Vested percentage
Less than 3
0%
After you complete 3 years of vesting service
33%
After you complete 4 years of vesting service
67%
After you complete 5 years of vesting service
100%
Employees hired prior to January 1, 1998 who were vested in Company Matching Contributions under the Plan's provisions as then in effect are always fully vested in Company Matching Contributions*.
* Note for former Johnson & Higgins and Sedgwick employees: Employees who were 100% vested in Johnson & Higgins (J&H) Cash Accumulation Plan prior to January 1, 1998 are 100% vested under the Marsh & McLennan Companies 401(k) Savings & Investment Plan as of January 1, 1998. If you were not 100% vested in the Cash Accumulation Plan prior to January 1, 1998, you vest gradually (see the applicable schedule above) based on years of vesting service if (1) you were employed by J&H on March 27, 1997 or (2) your Marsh & McLennan Companies hire date is within 5 years after leaving a J&H company. Former Sedgwick employees who participated in the Sedgwick Savings & Investment Plan were 100% vested in their accounts that were transferred to this Plan.
A participant who transfers from an acquired company may retain the prior plan's vesting schedule in certain circumstances.
When You Are Rehired
If you terminate employment before your Company matching contribution and/or fixed Company contribution accounts are fully vested, the non-vested portion is forfeited if:
  • You receive a distribution of your vested interest, or
  • You are not rehired by the fifth anniversary of your termination date.
Forfeited amounts will be restored to your account (without earnings or losses from the date of forfeiture) if you are reemployed within a five-year period and you repay to the Plan the full value of any distribution that you previously received. This is known as a buyback. Any buyback must generally be made by the earlier of the fifth anniversary of reemployment or the fifth anniversary of your termination date following the distribution.
Upon returning to employment with the Company, you will resume the vesting service you had when your employment terminated. The vesting schedule in place at the time of rehire will be your applicable vesting schedule. If you are rehired within 12 months, you will receive vesting credit for your absence.
Vesting Service
Vesting service is used to determine when you have a vested interest in your account. Most employees are vested after completing four years of vesting service.
What is vesting service?
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 non-participating companies in the Company's controlled group (e.g., a foreign subsidiary).
  • credit for service if you were initially hired by Marsh & McLennan Companies as a leased employee and you subsequently become a regular or temporary employee.
  • the vesting earned for a plan account from a predecessor employer that was merged into this Plan.
  • credit for pre-acquisition service for certain purposes under the Plan, as determined by Marsh & McLennan Companies acting through its representative for employees of acquired businesses whose plans are not merged into this Plan.
How is vesting service used?
Vesting service is used to determine:
  • when you are eligible for company contributions.
  • when you are entitled to a non-forfeitable right to a benefit under the Plan.