MMC Benefits Handbook
When Benefits Commence
If you have a vested Accrued Benefit and you terminate employment with the Company and all members of its World-wide Controlled Group, you are eligible to commence your benefit from the Plan. If you are at least age 55 and have accrued at least five years of vesting service when you terminate employment you are considered a Retired Participant. If you have completed five years of vesting service, but you have not yet reached your 55th birthday when you terminate employment you are considered a Terminated Vested Participant. If you have not completed five years of service and you have not yet reached your 65th birthday when you terminate employment, your participation ends and you do not have a right to a benefit payment.
If you are a Retired Participant or a Terminated Vested Participant, the time and form of payment of your vested Accrued Benefit depends on the present value of your vested Accrued Benefit, your age at termination of employment and your age when monthly payments commence.
- If your vested Accrued Benefit is a small benefit amount (that is, a benefit with a Present Value of $1,000 or less), you will receive a lump sum payment following your termination of employment.
- If the Present Value of your vested Accrued Benefit is greater than $1,000, you will receive monthly payments commencing in the month that you elect. You may elect to commence your benefit as early as age 55 but no later than the April 1st following the calendar year in which you attain age 70-1/2.
- If you commence on or after attaining age 55 but before you attain age 65, you are commencing on an Early Commencement Date.
- If you commence once you attain age 65, you are commencing on a Normal Commencement Date.
- If you delay the commencement of your benefit past age 65, you are commencing on a Deferred Commencement Date.
- Generally, if you do not elect to commence your benefit by the April 1st following the calendar year in which you attain age 70-1/2, your vested Accrued Benefit will automatically commence as of that date, even if you are still working. However, if you have an ORC Benefit and continue to work beyond the calendar year in which you attain age 70-1/2, your ORC Benefit will not commence until you terminate employment. See "Acquired Companies."