MMC Benefits Handbook
Mercer US Phased Retirement Program
Terms of the Mercer US Phased Retirement Program
If you become eligible for the Mercer US Phased Retirement Program (PRP), you have the option to voluntarily elect to receive your Accrued Benefit for a period of up to 24 months while continuing to work. Depending on your circumstances and continuing eligibility, your participation may require changing to a PRP Reduced Work Schedule after which you are expected to fully retire, or it may simply allow you to collect your benefits under the Marsh & McLennan Companies Retirement Plan for 24 months while working your current schedule, which you can continue after payments are suspended.
Eligible participants have the flexibility to choose when to start phased retirement—as of any Benefit Commencement Date from September 1, 2022 to August 1, 2024. The latest date you can request a Benefits Package for the final August 1, 2024 Benefit Commencement Date in the PRP is July 1, 2024 at 6:00 pm Eastern Time. If you are eligible for the PRP, but do not fulfill the participation requirements, your monthly benefit will commence pursuant to the standard provisions of the Marsh & McLennan Companies Retirement Plan. See "When Benefits Commence" for details.
PRP Resources Page
Any participant who is expected to be able to meet the PRP eligibility requirements (see "Eligibility to Participate in the PRP") can find out more information about the program by visiting the PRP Resources page on Colleague Connect. In fact, the PRP Resources page has been accessible beginning in late May of 2022 to any participants who have not yet met all participation criteria (e.g., attaining age 62), provided that they eventually will be able to satisfy the requirements by the latest Benefit Commencement Date under the program, i.e., August 1, 2024). The PRP Resources page grants access to the Phased Retirement Program ("PRP") Employee Brochure, which includes answers to many frequently asked questions, as well as other useful information. Go to Phased Retirement Program Resources.
Terms to Know
Throughout this subsection of the Benefits Handbook describing the PRP, are terms that define its key features. Familiarizing yourself with these terms will allow for easier understanding of the program. Other capitalized terms are defined at the beginning of the section of the Benefits Handbook describing the Retirement Plan as a whole and in the "Glossary" .
Acknowledgement Form—The electronic form you must e-sign under the procedures described in the Phased Retirement Program ("PRP") Employee Brochure, which is available on the PRP Resources page (see above).
Benefit Commencement Date—The first day of the month in which your Retirement Plan benefits are scheduled to begin.
Company—Marsh & McLennan Companies, Inc., and its direct and indirect subsidiaries.
Full-Time Retirement—For the purposes of the PRP, you are considered to be in Full-Time Retirement when you terminate employment from the Company.
Highly Compensated Employee (HCE)—You are considered an HCE by the Internal Revenue Service (IRS) if, for the preceding year, you received total compensation from Mercer or any Marsh McLennan-controlled group company of more than a threshold set by the IRS and periodically adjusted for inflation (e.g., $130,000 for 2021 and $135,000 for 2022). Your total compensation includes your base salary, incentive pay such as the Incentive Compensation Plan (ICP) award and any other payments you have received from Mercer or Marsh McLennan. You can check your compensation for this purpose by referencing the amount shown in box 5 of your W-2 for the appropriate year. For purposes of the PRP rules, your HCE status will be determined as of the date you submit your completed Acknowledgement Form. For example, if you submit this form in 2022, you need to determine if your compensation for 2021 exceeded $130,000. Similarly, if you submit this form in 2023, you need to determine if your compensation for 2022 exceeded $135,000.
Normal Retirement Benefit—Your Retirement Plan benefit payable as a single life annuity on your normal retirement date, which is the first day of the month on or after the date you reach age 65.
Phased Retirement End Date—The date your participation in the PRP ends because any of the following has occurred: (1) you completed the maximum 24 months in the program (or such lesser period as you have elected as your PRP Benefit Period inclusive of any approved extensions), (2) you terminated employment during the PRP Benefit Period or (3) you became ineligible for the PRP prior to completing your PRP Benefit Period.
Phased Retirement Start Date—The date you commence your Retirement Plan benefits as a participant in the PRP. Your Phased Retirement Start Date can be the first of any month beginning September 1, 2022 (or, if later, the date you first become eligible), but not later than August 1, 2024.
PRP Benefit Period—The period of up to 24 months of Retirement Plan payments that starts with your Benefit Commencement Date. If you are required to work a PRP Reduced Work Schedule, your agreed-upon PRP Benefit Period may be less than 24 months.
PRP Reduced Work Schedule—A schedule to work at least 40% (normally scheduled for at least 16 hours per week) and no more than 60% (normally scheduled for no more than 24 hours per week) of a Full-Time Employee schedule in order to participate in the PRP.
Eligibility to Participate in the PRP
You are eligible to enter the PRP if, at any time during the period starting September 1, 2022, and ending August 1, 2024, you meet all of the following criteria:
All of the above requirements apply for the duration of your PRP participation, except that you will remain eligible if you transfer from Mercer to another US Marsh McLennan company after your Phased Retirement Start Date.
Becoming Ineligible for the PRP
If at any time during the PRP Benefit Period you no longer meet the eligibility requirements, your participation and payment of your Retirement Plan benefit will be suspended. Examples of becoming ineligible include:
  • You are required to work the PRP Reduced Work Schedule, and you change from that schedule to one that does not comply with the requirements.
  • You change your residence to outside the US.
  • You are no longer classified as a regular employee of any Marsh McLennan-controlled group company.
  • You transition to Full-Time Retirement, in which case, your Retirement Plan benefits will continue to be paid, but you will no longer be considered a participant in the PRP.
Duration of the PRP Benefit Period
If you are not required to move to a PRP Reduced Work Schedule, your PRP Benefit Period is 24 months. Your participation in the PRP ends when you reach the end of this 24-month period, you terminate employment, or you become ineligible for the PRP, whichever occurs first. This is referred to as your Phased Retirement End Date.
If you are required to move to a PRP Reduced Work Schedule, you will need to choose your PRP Benefit Period from 1 to 24 months, in whole month intervals only. Your participation in the PRP ends when you reach the end of your agreed-upon PRP Benefit Period inclusive of any approved extensions (up to 24 months), you terminate employment, or you become ineligible for the PRP, whichever occurs first. This is referred to as your Phased Retirement End Date. If you need to extend your PRP Benefit Period, you may request an extension, at least 30 days in advance of your Phased Retirement End Date on file, pursuant to procedures described in the Phased Retirement Program ("PRP") Employee Brochure, which is available on the PRP Resources page.
In all cases, your Phased Retirement End Date may not be later than the latest permissible Benefit Commencement Date of August 1, 2024.
Participants Subject to the PRP Reduced Work Schedule Requirements
The PRP imposes certain restrictions that apply to participants who are required to change to a PRP Reduced Work Schedule, depending upon the amount of their Normal Retirement Benefits and whether they are considered HCEs. The PRP Resources page on Colleague Connect describes the procedures for changing to a PRP Reduced Work Schedule.
If Your Normal Retirement Benefit Is Equal to $800 per Month or Less AND You Are Not Considered an HCE
If Your Normal Retirement Benefit Is Greater than $800 per Month OR You Are Considered an HCE
If you have a Normal Retirement Benefit equal to $800 per month or less and you are not an HCE, you may receive your Retirement Plan benefit while you continue working your current work schedule without any reduction in work hours. In other words, you are not required to move to a PRP Reduced Work Schedule. This means you can receive your Retirement Plan benefits in addition to your normal pay. If you want to move to a part-time schedule, you may request to do so.
If you have a Normal Retirement Benefit greater than $800 per month or you are an HCE, you must move to a PRP Reduced Work Schedule as a condition to participating in the program. The PRP Reduced Work Schedule requires that you work at least 40% (normally scheduled for at least 16 hours per week) and no more than 60% (normally scheduled for no more than 24 hours per week) of a Full-Time Employee work schedule.
Note: For purposes of the PRP, HCE status will be determined as of the date you submit your completed Acknowledgement Form (see Item 1), and a change in your circumstances related to HCE status after this determination, generally, has no impact on your PRP rights.
Limit on Number of PRP Participants on PRP Reduced Work Schedule
The PRP is being offered to all colleagues who will meet the eligibility criteria during the period from September 1, 2022 through August 1, 2024. Neither the Marsh & McLennan Companies Retirement Plan nor Marsh McLennan or Mercer will exercise any discretion in selecting participants who may elect to commence benefits under the PRP.
However, to meet certain business objectives during the PRP, the number of colleagues who would be required to move to a PRP Reduced Work Schedule in order to participate in the PRP will be limited to 100 individuals throughout the two-year PRP offering based on the process below. When the limit is reached, the PRP will no longer be available to colleagues who would be required to move to the PRP Reduced Work Schedule. The program administrator will communicate to eligible colleagues if and when this limit has been reached. There is no limit applicable to PRP participants who are not required to move to a PRP Reduced Work Schedule.
A spot is considered "taken" and counts toward the limit once both of the following take place:
1. A status change is successfully completed (including all required approvals) in Workday to change an individual's work status and pay as of a specified date.
In Workday, "completed" means all the steps necessary to execute a work schedule change in the Workday system have been marked "complete," including the receipt of all required approvals and receipt of a signed Acknowledgment Form. To understand the procedures for changing to a PRP Reduced Work Schedule, go to the PRP Resources page on Colleague Connect.
2. HR Services, on behalf of the Retirement Plan Administrator, receives a completed PRP Benefits Package that is considered in good order.
If you are returning your completed forms by mail, the date of actual receipt by HR Services will be affected by how long a piece of physical mail takes to travel to HR Services. Postmark date will not be substituted for "receipt" date. If you are returning your completed forms by uploading via the Retirement Calculator, the receipt date will be the date and time your documents are successfully uploaded. To confirm receipt, please call HR Services. Moreover, the date of receipt will apply for this purpose only if the materials received are ultimately determined to be in good order.
With a limit on the number of PRP participants who move to the PRP Reduced Work Schedule, if you are in this group and wish to participate, it is recommended that you not wait until the deadline to elect. For more information on your role in completing these steps and the earliest and latest dates you can request a PRP Benefits Package based on your Benefit Commencement Date, see "Commencing Your PRP Retirement Plan Benefits" and the Phased Retirement Program ("PRP") Employee Brochure available by going to the PRP Resources page on Colleague Connect.
The chart below summarizes the impact of the restrictions on participants required to change to a PRP Reduced Work Schedule:
Normal Retirement Benefit and HCE Status
Work Schedule During PRP Participation
Participant Limit
Retirement After PRP
Normal Retirement Benefit is not greater than $800 per month and you are not an HCE.
You can keep your current work schedule—There is no requirement to change to a PRP Reduced Work Schedule, but you may elect to do so.
There is no limit on the number of PRP participants.
There is no expectation about when you will enter Full-Time Retirement.
Normal Retirement Benefit is greater than $800 per month or you are an HCE.
You must change to a PRP Reduced Work Schedule—This is at least 40% (normally scheduled for at least 16 hours per week) and no more than 60% (normally scheduled for no more than 24 hours per week) of a Full-Time Employee work schedule.
Up to 100 participants who are required to change to a PRP Reduced Work Schedule may enter the PRP.
It is expected that you will enter Full-Time Retirement at the end of your agreed-upon PRP Benefit Period. This period may be 1 to 24 months (whole months only).
Commencing Your PRP Retirement Plan Benefits
If you elect to participate in the PRP, you will receive your vested Plan benefit beginning on your Phased Retirement Start Date. You can choose from the available annuity options for receiving your benefit, which will be described in your PRP Benefits Package. Your Retirement Plan benefits are generally paid at the beginning of each month over your lifetime, or over the joint lifetimes of you and your spouse or other designated beneficiary.
If you are under age 65 when payments begin, your monthly Normal Retirement Benefit may be reduced for early payment. Your monthly benefit amount will also depend on whether the option you choose provides for survivor benefits that continue to a spouse or another designated beneficiary after your death, your age and the age of your beneficiary, if applicable.
Please see "When Benefits Commence" of this section of the Benefits Handbook for more detailed information about the reductions for early retirement and your available annuity options under the Retirement Plan. With many factors to consider when deciding when to begin payments and choosing an optional benefit payment form, you are encouraged to speak with a tax or financial advisor before electing a payment form. For Retirement Plan-specific questions, call HR Services at +1 866 374 2662 (select option 1, then option 3, then option 1).
To start benefits under the PRP, go to the PRP Resources page on Colleague Connect for access to the Phased Retirement Program ("PRP") Employee Brochure, which describes detailed procedures. Below is a brief summary:
  • request a PRP benefits package no more than 90 days and no less than 30 days, in advance of your desired Benefit Commencement Date by calling HR Services at +1 866 374 2662 (select option 1, then option 3, then option 1),*
  • follow the procedures for changing to a PRP Reduced Work Schedule, if required,
  • submit your Acknowledgement Form,
  • return all required documentation in good order during the election period specified in the election package.
* As a PRP participant, you cannot use the online benefit commencement process available through "MyPlans Connect."
Keep in mind that the payment option you choose for your Retirement Plan payments during the PRP will be the payment option you receive when you enter Full-Time Retirement. You will not have an opportunity to change your payment option when you transition to Full-Time Retirement.
How PRP Participation Impacts Hours, Workload, Pay and Benefits
As noted, certain participants are required to change to a PRP Reduced Work Schedule in order to join the PRP, but others may elect to reduce their work schedule. If you retain your current schedule, your PRP participation has no impact on your pay or benefits. If you move to the PRP Reduced Work Schedule, your base salary will be adjusted accordingly, which could impact your benefits under other plans, such as the 401(k) plans, the Supplemental Savings & Investment Plan (SSIP), the Employee Stock Purchase Plan (ESPP), and certain welfare plans with benefits tied to your base salary (or such other defined forms of compensation that are relevant under the applicable terms of each plan).
If you are required to work the PRP Reduced Work Schedule, you are expected to retire at the end of the agreed-upon PRP Benefit Period (inclusive of any approved extensions, but no longer than 24 months total under any circumstances), which will be considered a voluntary termination. If you wish to continue working but are unable to find an alternative role, the voluntary termination stands. You will not be eligible for severance, including if the Company involuntarily terminates your employment as a result.
For more information regarding how your PRP participation could impact your other plan benefits, visit the PRP Resources page on Colleague Connect for access to the Phased Retirement Program ("PRP") Employee Brochure. You may also review the relevant sections of this Benefits Handbook that describe other plans. If you have questions about the impact on your benefits, please call HR Services at +1 866 374 2662 (select option 2, or stay on the line, then option 1).