Benefits Handbook

The Marsh & McLennan Companies Retirement Plan allows Retired and Terminated Vested participants to commence monthly payments early, before age 65 (must be at least age 55). When you elect early commencement, your accrued benefit is adjusted to reflect the longer period over which you will receive monthly payments. The amount of the adjustment depends on whether you are a Retired Participant or a Terminated Vested Participant and your age when you commence monthly payments.

If you are a Retired Participant, you may elect to commence monthly payments as of the first day of any month after you terminate employment.

When determining the amount of your monthly payments, your vested accrued benefit will be adjusted to reflect a longer expected payout period. Note that the portion of your Accrued Benefit that was credited as of December 31, 2005 is not reduced unless you commence payment before age 62. This is shown in the table below. If you have a vested accrued benefit that was earned under a plan that was later merged into the Marsh & McLennan Companies Retirement Plan (or a predecessor plan), the portion of your accrued benefit that you earned under the merged plan, if you commence your benefit before age 65 might vary from the percentage illustrated below. See "Acquired Companies."

The chart below illustrates the percentage of your vested Accrued Benefit that you will receive if you commence your benefit before age 65.

Sienna has over 60 months (5 years) of Vesting Service. Let's assume she terminates employment once she attains age 62 and 3 months. Sienna is a Retired Participant. Sienna's vested Accrued Benefit prior to January 1, 2006, payable once she attains age 65 is $500 per month and her Accrued Benefit on or after January 1, 2006, payable once she attains age 65 is $500 per month. Sienna elects to commence monthly payments on the first of the month following her termination of employment. This means Sienna will commence monthly payments 33 months (or 2 years and 9 months) before age 65. Sienna's monthly payment would be adjusted to reflect the longer payment period using the adjustment for a Retired Participant as follows:

Accrued Benefit prior to January 1, 2006:

$500 times 100% (no reduction once Sienna attains age 62 or older under the early retirement adjustment methodology applicable to Accrued Benefit credited before 2006)

= $500 per month payable once Sienna attains age 62 and 3 months

Accrued Benefit on or after January 1, 2006:

$500 times 86.25% (0.41667% times 33 months equals a 13.75% reduction)

= $431.25 per month payable once Sienna attains age 62 and 3 months

Total Early Retirement Benefit = $931.25 per month expressed in the form of a single life annuity when Sienna commences payment at age 62 and 3 months

If you accrued benefits under the Johnson & Higgins or Sedgwick Retirement Plans, those benefits have different rules regarding the early retirement factors. If you have service with an acquired company, see "Acquired Companies" for details.

If you are a Terminated Vested Participant, you may elect to commence monthly payments on the first of any month on or after your 55th birthday, provided the Present Value of your vested Accrued Benefit is more than $1,000. If you elect to commence monthly benefit payments before you reach age 65 you have an Early Commencement and your monthly benefit payment will be reduced to take into account your longer expected payout period. The reduction that is applied to any benefit you accrued prior to January 1, 2003 is 0.33% per month (4% per year) for each month that your Benefit Commencement Date precedes your 62nd birthday. The reduction that is applied to any benefit you accrued after December 31, 2002 is 0.50% per month (6% per year) for each month your Benefit Commencement Date precedes your 65th birthday.

If you have a vested accrued benefit that was earned under a plan that was later merged into the Marsh & McLennan Companies Retirement Plan (or a predecessor plan), the portion of your accrued benefit that you earned under the merged plan, if you commence your benefit before age 65 might vary from the percentage illustrated below. See "Acquired Companies."

The chart below illustrates the reduction factors applicable to benefit commencements before Normal Retirement Date for those who terminated prior to age 55:

Let's assume Sienna has at least 60 months (5 years) of Vesting Service and terminates employment once she attains age 50 and 3 months. Sienna is a Terminated Vested Participant. Sienna's vested Accrued Benefit as of December 31, 2002, payable once she attains age 65 is $200 per month and her vested Accrued Benefit earned on or after January 1, 2003, payable once she attains age 65, is $400 per month (total Accrued Benefit of $600 per month). Sienna elects to commence payment on the first of the month following her 60th birthday. This means she will commence monthly payments 60 months (5 years) before age 65. Sienna's monthly benefit payment would be reduced for early commencement using the adjustment for a Terminated Vested Participant as follows:

Accrued Benefit as of December 31, 2002:

Sienna's monthly benefit commencing once she attains age 60 attributable to the benefit she accrued before 2003 would be $184 per month ($200 times 92% equals $184 per month). This represents a reduction of .33% for each month that her Benefit Commencement Date precedes her 62nd birthday (.33 times 24 months equals 8%).

Accrued Benefit earned on or after January 1, 2003:

Sienna's monthly benefit commencing once she attains age 60 attributable to the benefit she accrued after 2002 is $280 ($400 times 70% equals $280 per month). This represents a reduction of .50% for each month that her Benefit Commencement Date precedes her 65th birthday (.50% times 60 months equals 30%).

Total Retirement Benefit = $464 per month payable in the form of a single life annuity commencing on the first of the month following Sienna's 60th birthday ($184 per month plus $280 per month equals $464 per month).