Benefits Handbook

The Marsh & McLennan Companies Retirement Plan takes into account your Eligible Monthly Pay in determining your Accrued Benefit amount. Eligible Monthly Pay is your monthly pay while employed by a participating company before any reductions for elective contributions. Eligible Monthly Pay does not include regular draw, overtime, bonus, commission, any other extra compensation, or any compensation you defer under the Supplemental Savings & Investment Plan.

However, Eligible Monthly Pay does include before-tax salary reduction amounts that you may contribute to other programs sponsored by Marsh McLennan, such as the Marsh & McLennan Companies 401(k) Savings & Investment Plan or a Flexible Spending Account. If you are eligible to participate in the Supplemental Savings & Investment Plan, see "IRS Limit on Pay" for a discussion of the effect that participation in that plan may have on your US Retirement Program benefits.

If you are paid on a salaried basis, your Eligible Monthly Pay is based upon your annual base salary rate in effect during the month (one-twelfth of your annual base salary rate). If you are paid on an hourly basis, your Eligible Monthly Pay is the base pay you receive from a Marsh McLennan payroll during the month. If you are on an approved disability or military leave, see "Leave of Absence" for information about how your pay is calculated during your leave.

Eligible Monthly Pay may not exceed one-twelfth of the IRS limit on annual compensation in effect at the time your Eligible Monthly Pay, including pay from a participating company, is credited.

Eligible Monthly pay excludes any monthly pay attributable to your employment with the Company after December 31, 2016.

The IRS limits the amount of pay that can be used to determine a benefit under the Plan to $265,000 for 2016. For periods of accrual on or after January 1, 2006, the Plan limits your Eligible Monthly Pay to an amount that is one twelfth of the annual limit. For example, in 2016, the $265,000 annual limit is pro-rated over twelve months, so your maximum monthly earnings that can be taken into account to determine your monthly benefit accrual in 2016 is $22,083.33 ($265,000/12 = $22,083.33). This amount may increase in the future if the IRS announces cost of living adjustments.

See "Additional Information" for the IRS limits on pay in effect for the current and prior years.

The pay that is used in your retirement benefit calculation for service performed on or after January 1, 2006 is based on your Eligible Monthly Pay. You accrue a benefit each month based on your eligible pay in that month.

The amount of your pay that can be used in determining your Eligible Monthly Pay under the Plan is subject to the IRS limit on annual compensation. The annual limit is pro-rated so that your Eligible Monthly Pay cannot exceed one-twelfth of the IRS limit on annual compensation in effect for the applicable calendar year. See "IRS Limit on Pay" for details.

The pay that is used in your retirement benefit calculation for service performed prior to January 1, 2006 is your Final Average Salary. Your Final Average Salary is the highest consecutive-60-month-average of your Eligible Monthly Pay while you were an eligible employee, excluding Eligible Monthly Pay after December 31, 2005. If you had less than 60 months (5 years) of Benefit Service prior to January 1, 2006, your Final Average Salary will be the average of your highest consecutive months of eligible salary during your actual years and months of service prior to January 1, 2006. Please note that participants who met certain age and service criteria might be entitled to a transition benefit, which considers eligible salary received after January 1, 2006. See "Transition Benefit" for details.

The amount of your Eligible Monthly Pay that can be used in determining your Final Average Salary under the Plan is subject to the IRS limit on annual compensation. See "IRS Limit on Pay" for details.

If your annual base salary changes within a single month, the higher rate will be used to determine your Eligible Monthly Pay for that month.

If you are classified as both a regular and temporary employee within a single month, your annual base salary rate in effect for that month as a regular employee will be used to determine your Eligible Monthly Pay.