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How Benefits Are Paid
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How Benefits Are Paid
Distribution Options
If your vested account balance exceeds $1,000, the following forms are available:
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Retirement or termination of employment with the Company and all affiliated employers on or after age 55
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Distribution of your account balance in MMC stock in kind (a distribution in shares for investments in the MMC Stock Fund) or in cash for other investments (mutual funds)
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Distribution of the value of your account balance in a one-time lump sum cash payment
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Distribution of the value of a specified whole percentage of any MMC Stock Fund balance in kind, and simultaneous distribution of the remainder of your MMC Stock Fund and mutual fund balances in cash
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Distribution in periodic cash installments
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A percentage of your account balance as a one-time lump sum payment and the remainder in installments (cash installments will be suspended if you are rehired)
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A percentage or specific dollar amount of your account balance.
Installment payments may be monthly, quarterly, semi-annual or annual and cannot exceed your life expectancy.
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Termination before retirement
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Distribution of your account balance in MMC stock in kind (for investments in the MMC Stock Fund) or in cash for other investments (mutual funds)
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Distribution of the value of your account balance in a one-time lump sum cash payment
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Distribution of the value of a specified whole percentage of any MMC Stock Fund balance in kind, and simultaneous distribution of the remainder of your MMC Stock Fund and mutual fund balances in cash
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A percentage or specific dollar amount of your account balance.
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If your account balance is more than $1,000, your beneficiary may take an immediate distribution or leave the account in the Plan. The maximum period your beneficiary may leave the account in the Plan depends on whether or not your beneficiary is your surviving spouse.
If your beneficiary is your surviving spouse, he or she may:
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elect a lump-sum distribution at any time up until the April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2
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elect an installment distribution over a period of years, not to exceed the life expectancy of your spousal beneficiary, beginning no later than the April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2
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elect a lump-sum distribution on a percentage of the account balance, and installment distributions on the remainder over a period of years, not to exceed the life expectancy of your spousal beneficiary, beginning no later than the April 1st following the calendar year in which you (not your spousal beneficiary) would have attained age 70-1/2 (the immediate payment in cash; installments in cash).
If your beneficiary is not your surviving spouse, he or she may:
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elect a lump-sum distribution at any time within five years of your death, or
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elect an installment distribution, beginning no later than 11 months after the election has been filed, and ending within five years of your (not your non-spousal beneficiary) death.
If your account balance is $1,000 or less, your account balance will be distributed automatically and applicable taxes withheld, unless your beneficiary is eligible for and makes a direct rollover or another distribution election.
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If you were already receiving installments before your death, those installment payments will be paid to your beneficiary, although your beneficiary may elect to receive the unpaid balance in a lump sum distribution.
Participants who previously elected installments may elect a lump sum distribution at any time by submitting a Benefit Distribution Form.
You can obtain a form online by going to ibenefitcenter via MMC PeopleLink ( www.mmcpeoplelink.com) and return the completed form as the form instructs.
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