MMC Benefits Handbook
Grandfathered Portion of Account
The distributions paid to you from this Plan are considered wages paid to you by the Company. The Company receives a corporate income tax deduction for the amount paid to you subject to certain limits under the Internal Revenue Code.
Due to certain changes in tax law relating to these corporate tax deductions, there is a recordkeeping distinction in the treatment of Plan benefits accrued prior to November 2, 2017 (grandfathered accounts) as compared to benefits accrued after that date. If you have grandfathered accrued benefits, the following changes were made to your account to distinguish between the grandfathered (pre-November 2, 2017) accrued benefits and the non-grandfathered (November 3, 2017 and after) accrued benefits.
  • Your accrued benefit balance as of November 2, 2017 was transferred to a grandfathered source(s), meaning it will remain separately identifiable.
  • Your November 3, 2017 non-grandfathered accrued benefits with attributable earnings will be maintained in non-grandfathered source(s).
These tax-law-driven changes do not affect your participation in the Plan, your opportunity to defer base pay and receive Company matching credits and fixed Company credits under the Plan, the amount credited to your account balances under the Plan, or any of the rules applicable to the distribution of your account balances under the Plan.