Summary
Marsh & McLennan Companies, Inc. (MRSH) announced significant changes to its U.S. retirement plans, effective at the end of 2016. The company will discontinue further benefit accruals under its U.S. defined benefit retirement plans. This move is accompanied by an enhancement to its U.S. defined contribution plans, introducing an automatic company contribution of 4% of eligible base pay starting January 1, 2017. This strategic shift aims to better position the company for sustained future growth by aligning its retirement benefits structure. The combined company and matching contributions in the defined contribution plans can now reach up to 7% of eligible base pay for most U.S. employees. These adjustments impact both qualified and non-qualified retirement plans, including those for named executive officers.
Key Highlights
- 1Discontinuation of further benefit accruals in U.S. defined benefit retirement plans at year-end 2016.
- 2Introduction of an automatic 4% Company contribution to U.S. defined contribution plans starting January 1, 2017.
- 3Potential for total company contributions (automatic + matching) up to 7% of eligible base pay for most U.S. employees.
- 4These changes affect both U.S. qualified and non-qualified retirement plans.
- 5Named executive officers are participants in both the affected qualified and non-qualified plans.
- 6The stated purpose of these changes is to position the Company for sustained future growth.