How Benefits Are Paid

MMC Benefits Handbook

Distribution Options

If your vested account balance exceeds $1,000, the following forms are available:


Reason for leaving	Payment forms
Retirement or termination of employment with the Company and all affiliated employers on or after age 55	You may elect: distribution of your current balance in Marsh & McLennan Companies stock for investments in the MMC Stock Fund and/or in cash for other investments. distribution of the value of your current balance in a one-time lump sum cash payment. distribution of the value of a specified whole percentage of any MMC Stock Fund balance in Marsh & McLennan Companies stock and simultaneous distribution of the remainder of your MMC Stock Fund and current mutual fund balances in cash. distribution of the value of your after-tax contributions in a one-time lump sum cash payment and simultaneous distribution of the remainder of your current balance in Marsh & McLennan Companies stock for investments in the MMC Stock Fund and cash for other investments. distribution in periodic cash installments. a percentage of your current balance as a one-time lump sum payment and the remainder in installments (cash installments will be suspended if you are rehired). a percentage or specific dollar amount of your current balance. Installment payments are monthly, quarterly, semi-annual or annual and cannot exceed your life expectancy.
Disability / Termination before age 55	Lump sum is the only permissible distribution form. Lump sum distributions over $1,000 are made in Marsh & McLennan Companies stock in kind (for investments in the MMC Stock Fund), or cash for other investments (mutual funds). Lump sum distributions up to $1,000 will be made in cash unless you elect distribution in Marsh & McLennan Companies stock for investments in the MMC Stock Fund.
Death	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: elect a lump sum distribution, which he or she may direct as a rollover into his or her own traditional IRA, Roth IRA or employer's tax-qualified plan, at any time up until the April 1st following the calendar year in which you (not your spousal beneficiary) 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). elect installment distributions, over a period of years, not to exceed your spouse's life expectancy, beginning no later than the April 1st following the calendar year in which you (not your spousal beneficiary) 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), which are eligible for direct rollover into your spouse's IRA or employer's tax-qualified plan. elect a lump sum distribution on a percentage of the account balance and installment distributions on the remainder over a period of years, not to exceed your spouse's life expectancy, beginning no later than the April 1st following the calendar year in which you (not your spousal beneficiary) 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) (the immediate payment in cash; installments in cash). NOTE: Subject to pending regulatory guidance, your spousal beneficiary may be required to make an affirmative election after your death in order to preserve the ability to defer the distribution of your Plan account. Additional information regarding any such election (including any applicable deadlines) will be provided to the spousal beneficiary at the appropriate time. If your beneficiary is not your surviving spouse, he or she may: elect a lump sum distribution, which is eligible for direct rollover into a traditional IRA or Roth IRA, at any time within (i) five years of your death if the date of death was prior to January 1, 2020 or if the beneficiary is a non-individual beneficiary, or (ii) within ten years of your death, if the date of death was after December 31, 2019 (for individual beneficiaries). elect installment distributions, beginning no later than 11 months after the election has been filed, and ending within five years of your death. 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, your 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 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.