MMC Benefits Handbook
How the RRA Plan Works
The RRA is a notional account established in your name and separately in your spouse/domestic partner's name, if applicable. "Notional" means a bookkeeping entry will be established on your behalf or your spouse/domestic partner's behalf; no specific funds are set aside for you or your spouse/domestic partner and the account does not earn interest. If you meet the eligibility requirements, the Company will reimburse you or your spouse/domestic partner for eligible healthcare expenses up to the notional amount credited to the RRA. IRS rules prohibit individuals from making contributions to the RRA; however, any reimbursements you receive from the RRA for eligible healthcare expenses are not taxable to you. Under current tax laws, the Company's cost for providing the RRA to domestic partners may result in "imputed income" to you, and you must pay tax on this income The Company will provide you with the appropriate tax forms indicating the amount of any imputed income. It is your responsibility to file your tax return accordingly.
The Company will credit a notional amount of benefit dollars to an RRA in your name and separately in your spouse/domestic partner's name on January 1 of each year that the Company continues to maintain the RRA Plan and that you remain eligible.
The notional amount credited to your RRA is determined pursuant to the table below. Generally, Years of Eligible Service at Retirement as shown in the table below are used for purposes of eligibility for an RRA. Years of Eligible Service at Retirement are based on vesting service as defined in the Marsh & McLennan Companies Retirement Plan A or Marsh & McLennan Companies Retirement Plan B, subject to certain exceptions, including adjustments required as a result of breaks in service, periods of rehire, and dates of acquisitions.
How is the Amount Credited to the RRA Determined?
The amount credited to your or your spouse/domestic partner's RRA for 2015 is determined by the Company as set forth in the chart below. Generally, retirees with less than 10 years of vesting service will not be eligible for an RRA.
1 Retirees who, due to circumstances of their employment, were identified at the point of retirement as entitled to be in retiree medical group R10.
2 Retirees who, due to circumstances of their employment, were identified at the point of retirement as entitled to be in retiree medical group JHG.
3 Retirees who, due to circumstances of their employment, were identified at the point of retirement as entitled to be in retiree medical group STD.
4 Retirees who, due to circumstances of their employment, were identified at the point of retirement as entitled to be in retiree medical group SMS.
5 Certain retirees who elected to participate in a predecessor of Sedgwick's early retirement incentive program that was offered only in 1989 and prior to MMC's acquisition of Sedgwick and who were not required to make retiree medical plan contributions for retiree medical coverage; retiree medical contributions were required for eligible family members.
Is the annual RRA credit pro-rated if I or my spouse/domestic partner becomes eligible during the year?
The annual RRA credit (as shown in the table) is pro-rated on a monthly basis for individuals who become eligible to receive an RRA credit during the year.
Based on the table above, you are eligible for an RRA credit of $1,500. You retire on May 30, 2015 and meet the eligibility requirements for an RRA. On June 1, 2015, you are eligible for an RRA credit of $875 ($1,500 ÷ 12 × 7) for the remaining 7 months of that calendar year. Assuming the Company continues to maintain the RRA Plan and that you continue to satisfy the eligibility requirements, then January 1, 2016, your RRA will be credited with $1,500.
What happens if I am rehired after retirement?
If you are a retiree participating in the RRA, are rehired, and then retire again, provided that the Company continues to maintain the RRA Plan and that you continue to meet the eligibility requirements, you will be able to participate in the RRA Plan when you retire again. In calculating the notional amount credited to your RRA, the Company will credit you with the additional months of eligible service you accrued during your rehire period.
You retire from the Company on April 30, 2015. If you meet the RRA eligibility requirements, you will be eligible for reimbursement for Eligible Healthcare Expenses through the RRA. You are then rehired two years later on May 1, 2017. You remain employed with the Company for five years and re-retire on May 1, 2022. Provided that the Company continues to maintain the RRA Plan and that you continue to meet the eligibility requirements, you will again be eligible for reimbursement for Eligible Healthcare Expenses through an RRA effective as of May 1, 2022.
Is there a maximum for reimbursements from my RRA?
You or your spouse/domestic partner can be reimbursed up to the amount credited to your or your spouse/domestic partner's RRA.
You can keep track of the benefit dollars in your RRA by going online to www.retiree.mercermarketplace.com or by calling the toll-free number +1 800 553 4958.