MMC Benefits Handbook
Accrued Benefit Credited Both Before and After January 1, 2006
If you had periods of eligible service both before and after January 1, 2006, your Marsh & McLennan Companies Retirement Plan benefit will consist of two parts: a benefit accrued as of December 31, 2005 and a benefit accrued on or after January 1, 2006 and before January 1, 2017. The benefit accrued as of December 31, 2005 will be calculated under the prior Marsh & McLennan Companies Retirement Plan formula and will be based solely on your Benefit Service and your Final Average Salary as of that date. The benefit accrued on or after January 1, 2006 and before January 1, 2017 will be calculated under the Marsh & McLennan Companies Retirement Plan formula as of December 31, 2016 and will be based on your Eligible Monthly Pay and the Plan's benefit accrual percentage for each month that you work. Please note that participants who met certain age and service criteria on December 31, 2005 may be eligible for a transition benefit, which may increase your benefit accrued as of December 31, 2005. See "Transition Benefit" for details.
Example
Geraldine, a participant whose benefit was accrued both before and after January 1, 2006
Geraldine was born on January 1, 1955, was hired by the Company on July 1, 1999, and she terminates employment with the Company on November 30, 2017.
  • Geraldine has 221 months (18 years and 5 months) of Vesting Service as of November 30, 2017. Therefore, she is vested in her accrued retirement benefit.
  • Geraldine has only 210 months (17 years and 6 months) of Benefit Service as of November 30, 2017 due to the discontinuation of benefit accruals beginning January 1, 2017. For this reason her Eligible Monthly Pay, Months of Benefit Service and Covered Compensation (Monthly) are deemed to be "N/A" beginning January 1, 2017. Geraldine's Eligible Monthly Salary during the period from 7/1/1999 through 12/31/2005 was as follows:
Time Period
Number
of Months
Eligible
Monthly Salary
Total Pay
in Period
7/1/1999 – 3/31/2001
21
$5,000.00
$105,000
4/1/2001 – 3/31/2003
24
$5,416.67
$130,000
4/1/2003 – 3/31/2005
24
$5,833.33
$140,000
4/1/2005 – 12/31/2005
9
$6,250.00
$56,250
Total for 60-month period from 1/1/2001 – 12/31/2005
   
$341,250
Geraldine's annual Covered Compensation for 2005 was $78,228. Her Final Average Salary prior to January 1, 2006 is the average over the previous consecutive 60 months (5 years): $341,250 / 5 = $68,250. Geraldine has 78 months (6.5 years) of Benefit Service prior to January 1, 2006.
  • Geraldine's Eligible Monthly Pay (below) from January 2006 through December 31, 2016 and months of Vesting Service from January 2006 through November 2017 are as follows:
Time Period
Eligible
Monthly Pay
Months of
Vesting
Service
Months of
Benefit
Service
Covered Compensation (Monthly)
1/1/2006 – 12/31/2006
$6,250.00
12
12
$6,689
1/1/2007 – 12/31/2007
$6,250.00
12
12
$6,815
1/1/2008 – 3/31/2008
$6,250.00
3
3
$6,975
4/1/2008 – 12/31/2008
$6,666.67
9
9
$6,975
1/1/2009 – 12/31/2009
$6,666.67
12
12
$7,135
1/1/2010 – 3/31/2010
$6,666.67
3
3
$7,135
4/1/2010 – 12/31/2010
$7,083.33
9
9
$7,135
1/1/2011 – 3/31/2011
$7,083.33
3
3
$7,135
4/1/2011 – 12/31/2011
$7,295.83
9
9
$7,135
1/1/2012 – 3/31/2012
$7,295.83
3
3
$7,222
4/1/2012 – 12/31/2012
$7,514.70
9
9
$7,222
1/1/2013 – 3/31/2013
$7,514.70
3
3
$7,307
4/1/2013 – 12/31/2013
$7,740.15
9
9
$7,307
1/1/2014 – 3/31/2014
$7,740.15
3
3
$7,378
4/1/2014 – 12/31/2014
$7,972.35
9
9
$7,378
1/1/2015 – 3/31/2015
$7,972.35
3
3
$7,407
4/1/2015 – 12/31/2015
$8,211.52
9
9
$7,407
1/1/2016 – 3/31/2016
$8,211.52
3
3
$7,407
4/1/2016 – 11/30/2016
$8,457.87
9
9
$7,407
1/1/2017 – 3/31/2017
NA
3
0
NA
4/1/2017 – 11/30/2017
NA
8
0
NA
Benefit earned before January 1, 2006:
1.6% times Final Average Salary ($68,250) times 6.5 years = $7,098.00
Minus
0.4% of the lesser of Final Average Salary ($68,250) or Covered Compensation as of 12/31/2005 ($78,228) times 6.5 years = $1,774.50
$7,098.00 minus $1,774.50 equals $5,323.50 – Geraldine's benefit accrual for the time period 7/1/1999 to 12/31/2005
Benefit earned on or after January 1, 2006:
For the 1/1/2006 to 3/31/2008 time period:
Minus
0.4% times $6,250.00/month times 27 months (2 years and 3 months)  = $675
Equals $2,025.00 accrual for the period Minus
0.4% times $6,250.00/month times 27 months (2 years and 3 months)  = $675
Equals $2,025.00 accrual for the period
 
For the 4/1/2008 to 3/31/2010 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 $6,666.67/month times 24 months (2 years) = $2,560.00
Minus
0.4% times $6,666.67/month times 24 months (2 years) = $640.00
Equals $1,920.00 accrual for the period
For the 4/1/2010 to 3/31/2011 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 $7,083.33/month times 12 months (1 year) = $1,360.00
Minus
0.4% times $7,083.33/month times 12 months (1 year) = $340.00
Equals $1,020.00 accrual for the period
For the 4/1/2011 to 12/31/2011 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 $7,295.83/month times 9 months = $1,050.60
Minus
0.4% times $7,135.00 /month times 9 months = $256.86
Equals $793.74 accrual for the period
For the 1/1/2012 to 3/31/2012 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 $7,295.83/month times 3 months = $350.20
Minus
0.4% times $7,222.00 /month times 3 months = $86.66
Equals $263.54 accrual for the period
For the 4/1/2012 to 12/31/2012 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 $7,514.70/month times 9 months = $1,082.12
Minus
0.4% times $7,222.00 /month times 9 months = $259.99
Equals $822.13 accrual for the period
For the 1/1/2013 to 3/31/2013 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 $7,514.70/month times 3 months = $360.71
Minus
0.4% times $7,307.00 /month times 3 months = $87.68
Equals $273.03 accrual for the period
For the 4/1/2013 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 $7,740.15/month times 9 months = $1,114.58
Minus
0.4% times $7,307.00 /month times 9 months = $263.05
Equals $851.53 accrual for the period
For the 1/1/2014 to 3/31/2014 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 $7,740.15/month times 3 months = $371.53
Minus
0.4% times $7,378.00 /month times 3 months = $88.54
Equals $282.99 accrual for the period
For the 4/1/2014 to 12/31/2014 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 $7,972.35 /month times 9 months = $1,148.02
Minus
0.4% times $7,378.00 /month times 9 months = $265.61
Equals $882.41 accrual for the period
For the 1/1/2015 to 3/31/2015 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 $7,972.35 /month times 3 months = $382.67
Minus
0.4% times $7,407.00 /month times 3 months = $88.88
Equals $293.79 accrual for the period
For the 4/1/2015 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 $8,211.52/month times 12 months (1 year) = $1,576.61
Minus
0.4% times $7,407.00 /month times 12 months (1 year) = $355.54
Equals $1,221.08 accrual for the period
 
For the 4/1/2016 to 12/31/2016 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 $8,457.87/month times 9 months = $1,217.93
Minus
0.4% times $7,407.00 /month times 9 months = $266.65
Equals $951.28 accrual for the period
For the 1/1/2017 to 11/30/2017 time period:
The plan is frozen and no more accruals take place.
Total accrual for the entire period is $11,600.52 ($2,025.00 + $1,920.00 + $1,020.00 + $793.74 + $263.54 + $822.13 + $273.03 + $851.53 + $282.99 + $882.41 + $293.79 + $1,221.08 + $951.28 = $11,600.52)
Accrued Retirement benefit from Marsh & McLennan Companies Retirement Plan:
$16,924.02 ($5,323.50 plus $11,600.52) per year, or $1,410.33 per month, assuming for this example that payment begins once Geraldine attains age 65 in the form of a single life annuity