MMC Benefits Handbook
How Benefits Are Paid
If your Vested account balance exceeds $1,000, the following forms are available:
Reason for leaving
Retirement or termination of employment with the Company and all affiliated employers on or after age 55 with five or more years of vesting service
You may elect:
Installment payments are monthly, quarterly, semi-annual or annual and cannot exceed your life expectancy.
Disability / Termination before age 55 with 5 or more years of vesting service or;
Disability/Termination on or after age 55 with less than 5 years of vesting service
Lump sum is the only permissible distribution form.
If your account balance is more than $1,000, your Beneficiary may take an immediate distribution or leave the account in the Plan. The maximum period your beneficiary may leave the account in the Plan depends on whether or not your beneficiary is your surviving spouse.
If your beneficiary is your surviving spouse, he or she may:
If your beneficiary is not your surviving spouse, he or she may:
If your account balance is $1,000 or less, your account balance will be distributed automatically and applicable taxes withheld, unless your beneficiary is eligible for and makes a direct rollover or another distribution election.
If you were already receiving installments before your death, beneficiary may elect any of the following payment options upon your death:
- Lump sum payment payable to your beneficiary;
- Lump sum payment payable to your beneficiary's inherited IRA with a rollover institution; or
- Installment distributions as follows:
- If your date of death was after December 31, 2019 the following applies:
- An individual non-spouse beneficiary will continue receiving installments each year based on your prior election; however, all such installments must end no later than 10 years following the date of your death. Accordingly, after an individual the non-spouse beneficiary receives any remaining installments in years 1-9 following your death, any remaining balance will be distributed as a final payment in year 10.
- A spousal beneficiary will continue receiving installments over the period that you originally elected (without a 10-year limit). However, subject to pending regulatory guidance, the spousal beneficiary may be required to make an affirmative election regarding how these installments will be calculated. Additional information regarding any such election (including any applicable deadlines) will be provided to the spousal beneficiary at the appropriate time.
- If your date of death was before January 1, 2020, an individual beneficiary can continue installments over the period you originally elected. New installment elections would not be permitted.
- If you have a non-individual beneficiary, the beneficiary can continue installments over the period that you originally elected. However, if you died before April 1st of the calendar year following the calendar year in which you would have attained age 73 (if you were born after December 31, 1950) or age 72 (if you were born after June 30, 1949 but before January 1, 1951) or age 70-1/2 (if you were born before July 1, 1949), these installments will end no later than 5 years following the date of your death. New installment elections would not be permitted.
Participants who previously elected installments may elect a lump sum distribution at any time by submitting a Benefit Distribution Form.