MMC Benefits Handbook
Plan Benefit Formula for Benefit Accrued on or after January 1, 2006
Your Marsh & McLennan Companies Retirement Plan benefit accrued on or after January 1, 2006 and before January 1, 2017 is determined using a formula based on your Eligible Monthly Pay and the Plan's benefit accrual percentage, which varies depending on your length of Benefit Service. The formula to determine your annual benefit is as follows:
+PLUS (if applicable)
  • For each month of Benefit Service beyond 360 months (30 years): 1.0% multiplied by your Eligible Monthly Pay;
-MINUS
  • For the first 420 months (35 years) of Benefit Service: 0.4% multiplied by your monthly Covered Compensation (or your Eligible Monthly Pay, if less).
All your months of Benefit Service, including your Benefit Service accrued prior to January 1, 2006 (if any) is included to determine whether your benefit accrual percentage is at the 1.6% level or the 1.0% level.
The monthly benefit payable in the form of a single life annuity for your lifetime will be one-twelfth of the annual amount determined by aggregating the monthly accruals attributable to all of your months of Benefit Service on and after January 1, 2006 but before January 1, 2017.
See "What Pay Counts" for more information about Eligible Monthly Pay.
Example – Alberto, a participant whose benefit has been entirely accrued on or after January 1, 2006
Alberto was born on January 1, 1982, was hired by the Company on February 1, 2013, and terminates employment with the Company on April 30, 2018.
  • Alberto has 63 months (5 years and 3 months) of Vesting Service as of April 30, 2018. Therefore, he is vested in his accrued retirement benefit.
  • Alberto has 47 months (3 years and 11 months) of Benefit Service as of April 30, 2018 due to the discontinuation of benefit accruals starting January 1, 2017. For this reason his Eligible Monthly Pay, Months of Benefit Service and Covered Compensation (Monthly) are deemed to be "N'/A" beginning January 1, 2017.
  • Alberto's Eligible Monthly Pay (below) from February 2013 through December 31, 2016 and months of Vesting Service from February 2013 through April 2018 are as follows:
Time Period
Eligible
Monthly Pay
Months of
Vesting
Service
Months of
Benefit
Service
Covered Compensation (Monthly)
 
2/1/2013 – 12/31/2013
$9,500.00
11
11
$9,475
1/1/2014 – 3/31/2014
$9,500.00
3
3
$9,750
4/1/2014 – 12/31/2014
$9,700.00
9
9
$9,750
1/1/2015-3/31/2015
$9,700.00
3
3
$9,875
4/1/2015-12/31/2015
$9,900.00
9
9
$9,875
1/1/2016-3/31/2016
$10,200.00
3
3
$9,875
4/1/2016-12/31/2016
N/A
9
9
$9,875
1/1/2017-3/31/2017
N/A
3
0
N/A
4/1/2017-12/31/2017
N/A
9
0
N/A
1/1/2018-3/31/2018
N/A
3
0
N/A
4/1/2018-4/30/2018
N/A
1
0
N/A
Benefit Earned on or after January 1, 2006:
For the 2/1/2013 to 12/31/2013 time period:
Monthly Covered Compensation is less than Eligible Monthly Pay, resulting in Covered Compensation being used in the offset portion of the formula.
The benefit earned for the period is:
1.6% times $9,500/month times 11 months = $1,672.00
Minus
0.4% times $9,475.00/month times 11 months = $416.90
Equals $1,255.10 accrual for the period
 
For the 1/1/2014 to 3/31/2014 time period:
Eligible Monthly Pay is less than monthly Covered Compensation, resulting in Eligible Monthly Pay being used in the offset portion of the formula.
The benefit earned for the period is:
1.6% times $9,500/month times 3 months = $456.00
Minus
0.4% times $9,500/month times 3 months = $114.00
Equals $342.00 accrual for the period
 
For the 4/1/2014 to 12/31/2014 time period:
Eligible Monthly Pay is less than monthly Covered Compensation, resulting in Eligible Monthly Pay being used in the offset portion of the formula.
The benefit earned for the period is:
1.6% times $9,700/month times 3 months = $465.60
Minus
0.4% times $9,700/month times 3 months = $116.40
Equals $349.20 accrual for the period
For the 4/1/2015 to 12/31/2015 time period:
Monthly Covered Compensation is less than Eligible Monthly Pay, resulting in Covered Compensation being used in the offset portion of the formula.
The benefit earned for the period is:
1.6% times $9,900/month times 9 months = $1,425.60
Minus
0.4% times $9,875/month times 9 months = $355.50
Equals $1,070.10 accrual for the period
For the 1/1/2016 to 3/31/2016 time period:
Monthly Covered Compensation is less than Eligible Monthly Pay, resulting in Covered Compensation being used in the offset portion of the formula.
The benefit earned for the period is:
1.6% times $9,900/month times 3 months = $475.20
Minus
0.4% times $9,875/month times 3 months = $118.50
Equals $356.70 accrual for the period
For the 1/1/2016 to 3/31/2016 time period:
Monthly Covered Compensation is less than Eligible Monthly Pay, resulting in Covered Compensation being used in the offset portion of the formula.
The benefit earned for the period is:
1.6% times $9,900/month times 3 months = $475.20
Minus
0.4% times $9,875/month times 3 months = $118.50
Equals $356.70 accrual for the period
 
For the 1/1/2017 to 4/30/2018 time period:
The plan is frozen and no more accruals take place.
Total accrual for the entire period is $5,534.00 ($1,255.10 + $342.00 + $1,047.60 + $349.20 + $1,070.10 + $356.70 + $1,113.30 = $5,534.00
Accrued Retirement benefit from Marsh & McLennan Companies Retirement Plan:
$5,534.00 per year ($461.17 per month), assuming for this example that payment begins upon attainment of age 65 in the form of a single life annuity