MMC Benefits Handbook
The SRP at a Glance
Plan Feature
Highlights
Eligibility
  • No employee will participate in the SRP unless they are a part of a select group of management or highly compensated employees. Generally, you may be eligible for a SRP benefit if your eligible annual pay is in excess of $150,000.
How the Plan Works
  • The SRP formula uses your Eligible Monthly Pay, the SRP's benefit accrual percentage, your Social Security Primary Insurance Amount, your accrued benefit under the Benefit Equalization Plan, if any, and your accrued benefit under the McLennan Companies Retirement Plan. There are no accruals under the SRP after the first 25 years of service.
  • Because benefit accruals were discontinued effective December 31, 2016 under both the Retirement Plan and the SRP, you cannot accrue any additional benefits under the SRP on or after January 1, 2017.
  • See "How the SRP Works" for details.
When You Become Vested
  • You will have a vested accrued benefit after completing 60 months (5 years) of vesting service or if you have attained age 65, provided you have completed at least one year of vesting service and are employed by a company in Marsh & McLennan Companies' World-wide Controlled Group.
Time and Form of Payment Under Section 409A
Section 409A governs the time and form of payment of non-qualified retirement plans such as the SRP. Generally, a SRP benefit that was accrued or vested after 2004 or a SRP benefit that is paid in a form of payment first made available under the plan after October 3, 2004 is subject to Section 409A (409A SRP Benefit). The following distribution rules apply to your 409A SRP Benefit:
You must incur a Separation from Service in order to commence a vested 409A SRP Benefit. See "Separation from Service."
Separation from Service due to a reduction in hours or extended leave of absence:
Separation from Service Due to a Disability:
  • If you incur a Separation from Service due to a disability, the 409A SRP Benefit will commence in the calendar month following the later of the month in which you (i) separate from service or (ii) attain age 65. See "Separation from Service Due to Disability."
Separation from Service Due to Death:
  • If you die before attaining age 50, while actively employed and before your vested 409A SRP Benefit commences, your 409A Survivor Benefit will commence to an eligible surviving Spouse or Domestic Partner in the month following the month in which you would have attained age 55.
  • If you die on or after attaining age 50, while actively employed and before your vested 409 SRP Benefit commences, your 409A Survivor Benefit will commence to your eligible surviving Spouse or Domestic Partner in the month following your date of death. See "409A Survivor Benefit If You Die While Actively Employed."
  • If you die after terminating employment and before your vested 409A SRP Benefit has commenced, your 409A Survivor Benefit will commence to your eligible surviving Spouse or Domestic Partner in the month following the later of your date of death or the date you would have attained age 55. See "409A Survivor Benefit if You Die after Termination of Employment but before Commencing a 409A SRP Benefit."
Payment Options
  • If your vested 409A SRP Benefit is deemed to be a small benefit under the SRP's small benefit rule for 409A SRP Benefits, it will be paid in a single sum.
  • A vested 409A SRP Benefit that is not deemed to be a small benefit is paid as a monthly annuity. You select the annuity payment form you want at the time your benefit "first" commences. See "How Benefits Are Paid" and "Payment Form Options" for details.
Taxes on 409A Payments
  • A 409A SRP Benefit is subject to federal, Social Security, and federal, state and local taxes, as applicable.
  • If the IRS were to determine that a payment made to you from the SRP or another non-qualified arrangement aggregated with the SRP under Section 409A aggregation rules, is not compliant with Section 409A, you could be subject to immediate taxation, interest charges and a 20% tax penalty on all aggregated unpaid non-qualified plan benefits subject to Section 409A.
  • See "How 409A SRP Benefit is Taxed" for details.
Grandfathered Benefits Subject to Prior Rules
  • The Company chose to grandfather a SRP benefit that was accrued and vested prior to January 1, 2005, provided it is paid according to a plan term that was in effect on October 3, 2004. Grandfathered SRP benefits are not subject to IRC 409A's rules governing the time and form of payment. However they are subject to the tax rules that were in effect prior to the implementation of IRC 409A.
  • Generally, the Grandfathered SRP Benefit will pay at the same time and in the same form that you elect under the tax-qualified Retirement Plan. See "Grandfathered SRP Benefit" and "Annuities Purchased Prior to 2003."
  • If your Grandfathered SRP Benefit is deemed to be a small benefit under the SRP's Small Benefit Rule for grandfathered SRP benefit, it will be paid in a single sum.
  • Participants might be able to elect to have all or a portion of the Grandfathered SRP Benefit paid in a single sum. See "How Grandfathered SRP Benefits are Paid."
  • If Marsh & McLennan Companies purchased an annuity contract for all or a portion of Grandfathered SRP Benefit accrued prior to 2003, the annuity contract will pay in the same form of annuity payment you elect when you commence your tax-qualified Retirement Plan benefit. You may not elect a single sum payment for this portion of your Grandfathered SRP Benefit. See "Annuities Purchased Prior to 2003."
Grandfathered Survivor Benefit –Death Before Commencement
  • In the event of your death while actively employed and before attaining age 50, a Grandfathered Survivor Benefit, will commence to your eligible surviving opposite-sex Spouse in the month following the month in which you would have attained age 65. However, your eligible surviving opposite-sex Spouse may elect to receive a reduced benefit as early as the month following the month you would have attained age 55. See "Grandfathered Survivor Benefit."
  • In the event of your death while actively employed and after attaining age 50, a Grandfathered Survivor Benefit will commence to your eligible surviving opposite-sex Spouse as soon as administratively practical after your death. See "Grandfathered Survivor Benefit."
  • In the event of your death after termination of employment a Grandfathered Survivor Benefit will commence to your eligible surviving opposite-sex Spouse in the month following the month in which you would have attained age 65. However, your eligible surviving opposite-sex Spouse may elect to receive a reduced benefit as early as the first of the month following the month you would have attained age 55.
  • Your eligible opposite-sex Spouse must apply for the 409A Survivor Benefit following your death. See "409A Survivor Benefit if You Die after Termination of Employment but before Commencing a 409A SRP Benefit."
Taxes on Grandfathered Payments
  • A Grandfathered SRP Benefit is subject to Social Security and federal, state and local taxes, as applicable.
  • The entire FICA tax obligation on the Grandfathered SRP Benefit that is not secured by a purchased annuity will be satisfied at the time when the benefit commences. A single sum distribution sufficient to satisfy the entire FICA tax obligation on your Grandfathered SRP Benefit as well as income tax on the portion of your Grandfathered SRP Benefit distributed to satisfy the FICA obligation is made from your Grandfathered SRP Benefit and remitted to the appropriate tax authorities. No further FICA tax will be due on your Grandfathered SRP Benefit.
  • Payments from the SRP other than payments from purchased annuities are taxed as ordinary income when they are received. Generally, state and local taxes, if any, are withheld based on your state of residency when you receive payment.
  • If all or a portion of your payments are derived from a purchased annuity(ies), the Company paid the taxes on the annuity when it was purchased and therefore a portion of your benefit derived from the purchased annuity is not taxable to you when benefits are paid. You are responsible, for taxes on the portion of your benefit payment that derives from the growth in the value of the annuity contract since it was purchased.
Funding
  • With the exception of any payments that are made from annuities purchased from various insurance companies prior to 2003, benefits under the SRP are paid from the Company's general assets. See "Annuities Purchased Prior to 2003" for details.
Contact Information
Plan Administrator – Supplemental Retirement Plan
c/o Global Benefits Department, 3rd Floor
Marsh & McLennan Companies, Inc.
Waterfront Corporate Center
121 River Street
Hoboken, NJ 07030-5794
This section addresses your SRP benefit. Marsh & McLennan Companies reserves the right to make changes to the operating rules under the SRP as Marsh & McLennan Companies may determine, in its sole discretion, are necessary.