Benefits Handbook

In general, any distribution you receive is taxable to you as ordinary income based on the value of the Marsh & McLennan Companies shares and cash distributed to you and is subject to applicable federal and state withholding. Marsh McLennan receives a tax deduction at that time corresponding to the amount of income you receive.

If all of your account is in notional shares of Marsh & McLennan Companies stock, shares will be withheld from the distribution to cover any applicable tax withholding liability on the payment and the remaining shares will be deposited in a book-entry account with the Company's transfer agent. If your account is deemed invested in notional investment options other than Marsh & McLennan Companies Stock Units, you will be sent a check for the amount of your balance less any applicable tax withholding. If your account is deemed invested in both notional shares of Marsh & McLennan Companies stock and other available notional investment options, taxes will be withheld first from the other available notional investment options to cover the taxes on the entire distribution (including the value of the portion distributed in Marsh & McLennan Companies stock). If there is not enough cash to cover the full tax withholding obligation, then the number of shares of Marsh & McLennan Companies stock will be reduced to cover the balance.

Because the Plan is not a tax qualified plan, the special tax rules applicable to tax qualified plans (such as the 10% tax on early distributions, rollovers, exclusion of net unrealized appreciation of Company stock, special lump sum, and capital gains treatment) do not apply.

This tax information is based on present tax laws and is not intended to be a complete description of the tax consequences of participation or personalized tax advice. You may want to consult with a tax professional.