Plan Benefit Formula for Benefit Accrued on or after January 1, 2006 and before January 1, 2017

MMC Benefits Handbook

The SRP formula for benefits accrued on or after January 1, 2006 and before January 1, 2017 is as follows:

For each month of the first 300 months (25 years) of Benefit Service: 2.0% multiplied by your unlimited Eligible Monthly Pay;

Minus

For each month of the first 300 months (25 years) of benefit service: 4% multiplied by your monthly Social Security Primary Insurance Amount

Minus

Your monthly accrual under the BEP, if any

Minus

Your monthly accrual under the Marsh & McLennan Companies Retirement Plan

Example – Alessandro, a participant whose benefit has been entirely accrued on or after January 1, 2006

Alessandro was born on January 1, 1975, was hired by the Company on February 1, 2006, and terminated employment with the Company on April 30, 2011.

Alessandro had 63 months (5 years and 3 months) of both Benefit Service and Vesting Service as of April 30, 2011. Therefore, he is vested in his accrued SRP benefit.

In March 2010, Alessandro's Eligible Monthly Pay reaches the IRC limit on pay that may be considered for tax-qualified plans. The example focuses on the portion of Alessandro's benefit that accrues during 2010. The example shows how the SRP formula generates a benefit, including how the formula takes into consideration simultaneously accruing Retirement Plan and BEP benefits.


Time Period	Unlimited Eligible Monthly Pay	IRC-Limited Eligible Monthly Pay	Social Security PIA Amount (Monthly)
1/1/2010 – 2/28/2010	$20,000.00	$20,000.00	$2,211.00
3/1/2010 – 12/31/2010	$21,666.67	$20,416.67	$2,211.00

Alessandro's Retirement Plan and BEP benefits earned during 2010 are as follows:


Retirement Plan:	$3,480.05 ($290.00 per month)
BEP:	$200.00 ($16.66 per month)


How SRP benefit for 2010 is calculated:	For the 1/1/2010 to 2/28/2010 time period: Retirement Plan Benefit for the period: $568.90 BEP Benefit for the period: $0.00 (the Retirement Plan benefit is not yet affected by the IRC pay limit) SRP Benefit Accrued for the period 1/1/2010 to 2/28/2010: 2.0% times $20,000/month times 2 months = $800 Minus 4.0% times $2,211.00/month times 2 months = $176.88 Equals $623.12 (initial SRP formula benefit, before offsets of BEP and Retirement Plan benefits) Minus BEP benefit for the period: $0 Minus Retirement Plan benefit for the period: $568.90 Equals SRP benefit of $54.22
	For the 3/1/2010 to 12/31/2010 time period: Retirement Plan Benefit for the period: $2,911.15 BEP Benefit for the period: $200.00 SRP Benefit Accrued for the period 3/1/2010 to 12/31/2010: 2.0% times $21,666.67/month times 10 months = $4,333.33 Minus 4.0% times $2,211.00/month times 10 months = $884.40 Equals $3,448.93 (initial SRP formula benefit, before offsets of BEP and Retirement Plan benefits) Minus BEP benefit for the period: $200 Minus Retirement Plan benefit for the period: $2,911.15 Equals SRP benefit of $337.78
2010 Accrued Retirement benefit from the SRP:	$392.00 ($54.22 + $337.78) per year ($32.67 per month), assuming for this example that payment begins upon attainment of age 65 in the form of a single life annuity