MMC Benefits Handbook
409A Survivor Benefit if You Die after Termination of Employment but before Commencing a 409A BEP Benefit
This sub-section describes the survivor benefit that will pay to an Eligible Survivor if you die after you terminate employment and before commencing your 409A BEP Benefit.
If you accrued a Grandfathered BEP Benefit and you are married to an eligible opposite-sex spouse when you die, different rules apply to the Grandfathered portion of your BEP Benefit portion of your BEP benefit. See "Grandfathered Survivor Benefits" for details.
The BEP does not pay a benefit upon your death if you do not have a vested 409A BEP Benefit or you do not have an eligible survivor.
If you die after you terminate employment and before commencing a 409A BEP Benefit, your Eligible Survivor will receive the designated survivor's portion of your vested 409A BEP Benefit calculated as if you had terminated employment and incurred a separation from service on your date of death and elected the 50% contingent annuity option. The monthly benefit will be reduced using the early retirement factors provided under the Retirement Plan. See "Early Commencement: If You Commence Before Age 65" in the Marsh & McLennan Companies Retirement Plan section. The survivor benefit will commence at the later of:
- The calendar month following the month you would have attained age 55, or
- The calendar month following the month of your death.
The first payment will be made to your Eligible Survivor at the later of
- The end of the month following the month you would have attained age 55, or
- 90 days following notification of your death.
Subsequent monthly payments are made to your Eligible Survivor at the end of each month. In no event will your Eligible Survivor be allowed to designate, directly, or indirectly, the taxable year of payment.
409A Small Benefit Rule for a Survivor Benefit
If you separate from service due to death, the survivor benefit payable to an Eligible Survivor, if any, will be evaluated under the small benefit rule as of the first of the month following the calendar month in which you die. See "Small Benefit Payment Rule for Grandfathered BEP Benefit."