MMC Benefits Handbook
Account and Investment Management Fees
Generally, the Company pays the administrative expenses related to operating the Plan and the participants pay the investment management fees. However, you indirectly bear certain administrative costs that are paid from the investment management fees charged by certain notional funds offered in the Plan. In addition, certain expenses may be charged directly to your account based on certain account transactions.
When you invest in a notional fund other than the MMC Stock Fund, there is a fee charged as a percentage of assets invested. That fee is reflected as an offset to the notional fund's investment returns. The fees charged by each notional fund are shown in the notional fund's Fund Fact Sheet. That fee covers the notional fund's investment management expenses, and for some notional funds, a portion of that fee may also be used to cover certain administrative costs of the Plan. Since the fee offsets the investment returns, this fee commensurately lowers the investment returns for that notional investment fund and thus your total account value.
If the portion of the investment management fee set aside to cover administrative costs exceeds those administrative costs for a particular year, the excess amount will be reflected in your account at the time the allocation is made to the actual fund, if applicable.
The Plan Administrator determines how to reasonably charge expenses to accounts, including accounts of terminated participants, beneficiaries and alternate payees. If the Company ceases to pay Plan expenses, Plan expenses will be charged to Plan accounts in a reasonable manner to be determined by the Plan Administrator.