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Retirement Benefits
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees.
Combined U.S. and Non-U.S. Plans
The weighted average actuarial assumptions utilized for the U.S. and significant non-U.S. defined benefit plans and post-retirement benefit plans are as follows:
  
Pension 
Benefits		Post-retirement
Benefits
 2021202020212020
Weighted average assumptions:
Discount rate (for expense)1.92 %2.57 %2.42 %2.72 %
Expected return on plan assets4.73 %5.31 %— — 
Rate of compensation increase (for expense)*1.85 %1.76 %— — 
Discount rate (for benefit obligation)2.28 %1.92 %2.36 %2.42 %
Rate of compensation increase (for benefit obligation)*2.16 %1.85 %— — 
*Rate of compensation increase assumptions include a zero percent rate of compensation increase for the U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments.
The target asset allocation for the U.S. plans is 60% equities and equity alternatives and 40% fixed income. At the end of 2021, the actual allocation for the U.S. plans was 65% equities and equity alternatives and 35% fixed income. The target asset allocation for the U.K. plans, which comprise approximately 81% of non-U.S. plan assets, is 26% equities and equity alternatives and 74% fixed income. At the end of 2021, the actual allocation for the U.K. plans was 28% equities and equity alternatives and 72% fixed income. The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' real return within acceptable risk parameters. The Company uses threshold-based portfolio re-balancing to ensure the actual portfolio remains consistent with target asset allocation ranges.
The components of the net periodic benefit cost for defined benefit and other post-retirement plans are as follows:
Combined U.S. and significant non-U.S. PlansPensionPost-retirement
For the Years Ended December 31,BenefitsBenefits
(In millions)202120202019202120202019
Service cost$38 $36 $31 $1 $— $— 
Interest cost341 421 487 2 3 3 
Expected return on plan assets(832)(844)(863)— — — 
Amortization of prior service— — — (2)(2)(2)
Recognized actuarial loss (gain)206 161 104 1 — (1)
Net periodic benefit (credit) cost$(247)$(226)$(241)$2 $1 $— 
Curtailment loss2 — — — — — 
Plan termination — 1 — — — — 
Settlement loss5 3 7 — — — 
Total (credit) cost$(240)$(222)$(234)$2 $1 $— 
The following table provides the amounts reported in the consolidated statements of income:
Combined U.S. and significant non-U.S. PlansPension
Benefits		Post-retirement
Benefits
For the Years Ended December 31,
(In millions)202120202019202120202019
Compensation and benefits expense $38 $36 $31 $1 $— $— 
Other net benefit (credit) cost(278)(258)(265)1 1 — 
Total (credit) cost$(240)$(222)$(234)$2 $1 $— 
Pension Settlement Charge
The Company recorded $5 million, $3 million and $7 million of non-cash settlement charges for the years ended December 31, 2021, 2020 and 2019 respectively, related to non-U.S. plans.
Plan Assets
For the U.S. plans, investment allocation decisions are made by a fiduciary committee composed of senior executives appointed by the Company’s Chief Executive Officer. For the non-U.S. plans, investment allocation decisions are made by local fiduciaries, in consultation with the Company for the larger plans. Plan assets are invested in a manner consistent with the fiduciary standards set forth in all relevant laws relating to pensions and trusts in each country. Primary investment objectives are (1) to achieve an investment return that, in combination with current and future contributions, will provide sufficient funds to pay benefits as they become due, and (2) to minimize the risk of large losses. The investment allocations are designed to meet these objectives by broadly diversifying plan assets among numerous asset classes with differing expected returns, volatilities, and correlations.
The major categories of plan assets include equity securities, equity alternative investments, and fixed income securities. For the U.S. plan, the category ranges are 56-64% for equities and equity alternatives, and 36-44% for fixed income. For the U.K. plans, the category ranges are 23-29% for equities and equity alternatives, and 71-77% for fixed income. Asset allocation is monitored frequently and re-balancing actions are taken as appropriate.
Plan investments are exposed to stock market, interest rate, and credit risk. Concentrations of these risks are generally limited due to diversification by investment style within each asset class, diversification by investment manager, diversification by industry sectors and issuers, and the dispersion of investments across many geographic areas.
U.S. Plans
The following tables provide information concerning the Company’s U.S. defined benefit pension and post-retirement benefit plans:
U.S. Pension
Benefits		U.S. Post-retirement
Benefits
(In millions)2021202020212020
Change in benefit obligation:
Benefit obligation at beginning of year$6,914 $6,322 $31 $31 
Interest cost184 213 1 1 
Employee contributions— — 4 4 
Plan amendments1 — — — 
Actuarial (gain) loss(227)650 (1)1 
Benefits paid(278)(271)(7)(6)
Benefit obligation, December 31$6,594 $6,914 $28 $31 
Change in plan assets:
Fair value of plan assets at beginning of year$5,100 $4,715 $2 $2 
Actual return on plan assets680 591 — — 
Employer contributions35 65 3 3 
Employee contributions— — 4 4 
Benefits paid(278)(271)(7)(6)
Other— — — (1)
Fair value of plan assets, December 31$5,537 $5,100 $2 $2 
Net funded status, December 31$(1,057)$(1,814)$(26)$(29)
Amounts recognized in the consolidated balance sheets:
Current liabilities$(31)$(30)$(1)$(1)
Non-current liabilities(1,026)(1,784)(25)(28)
Net liability recognized, December 31$(1,057)$(1,814)$(26)$(29)
Amounts recognized in other comprehensive income (loss):
Prior service cost$(1)$— $— $— 
Net actuarial (loss) gain(1,777)(2,446)3 3 
Total recognized accumulated other comprehensive (loss) income, December 31$(1,778)$(2,446)$3 $3 
Cumulative employer contributions in excess of (less than) net periodic cost721 632 (29)(32)
Net amount recognized in consolidated balance sheet$(1,057)$(1,814)$(26)$(29)
Accumulated benefit obligation at December 31$6,594 $6,914 $— $— 
U.S. Pension
Benefits		U.S. Post-retirement
Benefits
(In millions)2021202020212020
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive income (loss):
Beginning balance$(2,446)$(2,114)$3 $4 
Recognized as component of net periodic benefit cost (credit)90 72 (1)— 
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Other(1)— — — 
Liability experience227 (650)1 (1)
Asset experience353 246 — — 
Total gain (loss) recognized as change in plan assets and benefit obligations579 (404)1 (1)
Net actuarial (loss) gain, December 31$(1,777)$(2,446)$3 $3 

For the Years Ended December 31,U.S. Pension
Benefits		U.S. Post-retirement
Benefits
(In millions)202120202019202120202019
Total recognized in net periodic benefit cost and other comprehensive (income) loss $(722)$272 $160 $— $2 $2 
The weighted average actuarial assumptions utilized in determining expense during the year and benefit obligation at the end of the year for the U.S. defined benefit and other U.S. post-retirement plans are as follows:
U.S. Pension
Benefits		U.S. Post-retirement Benefits
2021202020212020
Weighted average assumptions:
Discount rate (for expense)2.73 %3.44 %2.18 %3.10 %
Expected return on plan assets7.03 %7.82 %— — 
Discount rate (for benefit obligation)3.00 %2.73 %2.56 %2.18 %
The accumulated benefit obligation and aggregate fair value of plan assets for U.S. pension plans with accumulated benefit obligations in excess of plan assets were $6.6 billion and $5.5 billion, respectively, as of December 31, 2021 and $6.9 billion and $5.1 billion, respectively, as of December 31, 2020.
The projected benefit obligation and fair value of plan assets for U.S. pension plans with projected benefit obligations in excess of plan assets was $6.6 billion and $5.5 billion, respectively, as of December 31, 2021 and $6.9 billion and $5.1 billion, respectively, as of December 31, 2020. The decrease in the benefit obligation in 2021 compared to 2020 reflects the increase in discount rates used to measure plan liabilities.
As of December 31, 2021, the U.S. qualified plan holds 2 million shares of the Company’s common stock which were contributed to the qualified plan by the Company in 2005. This represented approximately 6.3% of that plan's assets as of December 31, 2021.
The components of the net periodic benefit credit (cost) for the U.S. defined benefit and other post-retirement benefit plans are as follows:
U.S. Plans onlyPension
Benefits		Post-retirement
Benefits
For the Years Ended December 31,
(In millions)202120202019202120202019
Interest cost$184 $213 $241 1 1 1 
Expected return on plan assets(327)(345)(343)— — — 
Recognized actuarial loss (gain)90 72 44 (1)— (1)
Net periodic benefit (credit) cost$(53)$(60)$(58)$— $1 $— 
The assumed health care cost trend rate for Medicare eligibles and non-Medicare eligibles is approximately 5.5% in 2021, gradually declining to 4% in 2045. Assumed health care cost trend rates have a small effect on the amounts reported for the U.S. health care plans because the Company caps its share of health care trend at 5%.
Estimated Future Contributions
The Company expects to contribute approximately $31 million to its U.S. plans in 2022. The Company’s policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth in the U.S. and applicable foreign law.
Non-U.S. Plans
The following tables provide information concerning the Company’s non-U.S.defined benefit pension and post-retirement benefit plans:
Non-U.S. Pension
Benefits		Non-U.S.
Post-retirement Benefits
(In millions)2021202020212020
Change in benefit obligation:
Benefit obligation at beginning of year$12,998 $11,321 $73 $61 
Service cost38 36 1 — 
Interest cost157 208 1 2 
Employee contributions2 2 — — 
Actuarial (gain) loss (617)1,273 (4)10 
Plan amendments7 11 — — 
Effect of settlement(16)(13)— — 
Effect of curtailment(2)— — — 
Special termination benefits— 1 — — 
Benefits paid(395)(402)(3)(2)
Foreign currency changes(115)561 — 2 
Benefit obligation, December 31$12,057 $12,998 $68 $73 
Change in plan assets:
Fair value of plan assets at beginning of year$14,028 $12,313 $— $— 
Actual return on plan assets306 1,415 — — 
Effect of settlement(16)(13)— — 
Company contributions95 78 3 2 
Employee contributions2 2 — — 
Benefits paid(395)(402)(3)(2)
Foreign currency changes(165)635 — — 
Fair value of plan assets, December 31$13,855 $14,028 $— $— 
Net funded status, December 31$1,798 $1,030 $(68)$(73)
Amounts recognized in the consolidated balance sheets:
Non-current assets$2,269 $1,764 $— $— 
Current liabilities(6)(7)(3)(3)
Non-current liabilities(465)(727)(65)(70)
Net asset (liability) recognized, December 31$1,798 $1,030 $(68)$(73)
Amounts recognized in other comprehensive loss:
Prior service (credit) cost$(18)$(13)$7 $9 
Net actuarial loss(2,904)(3,467)(10)(16)
Total recognized accumulated other comprehensive (loss) income, December 31$(2,922)$(3,480)$(3)$(7)
Cumulative employer contributions in excess of (less than) net periodic cost4,720 4,510 (65)(66)
Net asset (liability) recognized in consolidated balance sheets, December 31$1,798 $1,030 $(68)$(73)
Accumulated benefit obligation, December 31$11,830 $12,736 $— $— 
Non-U.S. Pension
Benefits		Non-U.S.
Post-retirement Benefits
(In millions)2021202020212020
Reconciliation of prior service (cost) credit recognized in accumulated other comprehensive income (loss):
Beginning balance$(13)$(2)$9 $11 
Recognized as component of net periodic benefit credit:
Amortization of prior service credit— — (2)(2)
Effect of curtailment2 — — — 
Total recognized as component of net periodic benefit cost (credit)2 — (2)(2)
Changes in plan assets and benefit obligations recognized in other comprehensive income:
Plan amendments(7)(11)— — 
Prior service (cost) credit, December 31$(18)$(13)$7 $9 
Non-U.S. Pension
Benefits		Non-U.S.
Post-retirement Benefits
(In millions)2021202020212020
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive (loss) income:
Beginning balance$(3,467)$(3,055)$(16)$(5)
Recognized as component of net periodic benefit cost:
Amortization of net loss116 89 2 — 
Effect of settlement5 3 — — 
Total recognized as component of net periodic benefit credit121 92 2 — 
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Liability experience617 (1,273)4 (10)
Asset experience(199)916 — — 
Effect of curtailment2 — — — 
Total amount recognized as change in plan assets and benefit obligations420 (357)4 (10)
Exchange rate adjustments22 (147)— (1)
Net actuarial loss, December 31$(2,904)$(3,467)$(10)$(16)
For the Years Ended December 31,Non-U.S. Pension
Benefits		Non-U.S. Post-retirement
Benefits
(In millions)202120202019202120202019
Total recognized in net periodic benefit cost and other comprehensive (income) loss$(745)$261 $311 $(2)$13 $5 
The weighted average actuarial assumptions utilized in determining expense during the year and benefit obligation at the end of the year for the non-U.S. defined benefit plans are as follows:
Non-U.S. Pension
Benefits		Non-U.S.
Post-retirement Benefits
2021202020212020
Weighted average assumptions:
Discount rate (for expense)1.49 %2.09 %1.96 %2.53 %
Expected return on plan assets3.89 %4.35 %— — 
Rate of compensation increase (for expense)2.84 %2.75 %— — 
Discount rate (for benefit obligation)1.89 %1.49 %2.28 %1.96 %
Rate of compensation increase (for benefit obligation)3.34 %2.84 %— — 
The accumulated benefit obligation and fair value of plan assets for the non-U.S. pension plans with accumulated benefit obligations in excess of plan assets were $1.6 billion and $1.2 billion, respectively, as of December 31, 2021 and $3.1 billion and $2.5 billion, respectively, as of December 31, 2020.
The projected benefit obligation and fair value of plan assets for non-U.S. pension plans with projected benefit obligations in excess of plan assets was $1.7 billion and $1.2 billion, respectively, as of December 31, 2021 and $3.3 billion and $2.6 billion, respectively, as of December 31, 2020.
The decrease in the benefit obligation in 2021 compared to 2020 reflects an actuarial gain primarily due to the increase in discount rates used to measure plan liabilities.
Components of Net Periodic Benefits Costs
The components of the net periodic benefit cost for the non-U.S. defined benefit and other post-retirement benefit plans and the curtailment, settlement and termination expenses are as follows:
For the Years Ended December 31,Non-U.S. Pension
Benefits		Non-U.S. Post-retirement
Benefits
(In millions)202120202019202120202019
Service cost$38 $36 $31 $1 $— $— 
Interest cost157 208 246 1 2 2 
Expected return on plan assets(505)(499)(520)— — — 
Amortization of prior service credit— — — (2)(2)(2)
Recognized actuarial loss116 89 60 2 — — 
Net periodic benefit credit(194)(166)(183)2 — — 
Settlement loss5 3 7 — — — 
Curtailment loss2 — — — — — 
Special termination benefits— 1 — — — — 
Total credit$(187)$(162)$(176)$2 $— $— 
The assumed health care cost trend rate was approximately 4.94% in 2021, gradually declining to 4.36% in 2040. Assumed health care cost trend rates can have a significant effect on the amounts reported for the non-U.S. health care plans.
Estimated Future Contributions
The Company expects to contribute approximately $147 million to its non-U.S. pension plans in 2022. Funding requirements for non-U.S. plans vary by country. Contribution rates are generally based on local funding practices and requirements, which may differ significantly from measurements under U.S. GAAP. Funding amounts may be influenced by future asset performance, the level of discount rates and other variables impacting the assets and/or liabilities of the plan. Discretionary contributions may also be
affected by alternative uses of the Company’s cash flows, including dividends, investments and share repurchases.
In the U.K., the assumptions used to determine pension contributions are the result of legally prescribed negotiations between the Company and the plans' trustee that typically occurs every three years in conjunction with the actuarial valuation of the plans. Currently, this results in a lower funded status than under U.S. GAAP and may result in contributions irrespective of the U.S. GAAP funded status.
During 2021, the JLT Pension Scheme was merged into the MMC U.K. Pension Fund with a new segregated JLT section created. The Company made deficit contributions of $38 million to the JLT section in 2021 and is expected to make contributions totaling approximately $112 million in 2022. The funding level of the JLT section will be reassessed during 2022 to determine contributions from 2023 onwards.
For the MMC U.K. Pension Fund, excluding the JLT section, an agreement was reached with the trustee in the fourth quarter of 2019 based on the surplus funding position at December 31, 2018. Under the agreement no deficit funding is required until 2023. The funding level will be re-assessed during 2022, as part of the December 31, 2021 actuarial valuation, to determine if contributions are required in 2023. As part of a long-term strategy, which depends on having greater influence over asset allocation and overall investment decisions, in November 2019 the Company renewed its agreement to support annual deficit contributions by the U.K. operating companies under certain circumstances, up to £450 million over a seven-year period.
Estimated Future Benefit Payments
The estimated future benefit payments for the Company's pension and post-retirement benefit plans are as follows:
For the Years Ended December 31,Pension
Benefits		Post-retirement
Benefits
(In millions)U.S.Non-U.S.U.S.Non-U.S.
2022$300 $349 $4 $3 
2023$312 $376 $3 $3 
2024$323 $380 $3 $3 
2025$329 $391 $3 $3 
2026$335 $403 $3 $3 
2027-2031$1,719 $2,225 $9 $15 
Defined Benefit Plans Fair Value Disclosures
The U.S. and non-U.S. plan investments are classified into Level 1, which refers to investments valued using quoted prices from active markets for identical assets; Level 2, which refers to investments not traded on an active market but for which observable market inputs are readily available; Level 3, which refers to investments valued based on significant unobservable inputs; and NAV, which refers to investments valued using net asset value as a practical expedient. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 10, Fair Value Measurements, for further description of fair value hierarchy leveling.
The following table sets forth, by level within the fair value hierarchy, a summary of the U.S. and non-U.S. plans' investments measured at fair value on a recurring basis at December 31, 2021 and 2020:
Fair Value Measurements at December 31, 2021
Assets
(In millions)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		NAVTotal
Common/collective trusts$476 $— $— $5,221 $5,697 
Corporate obligations— 4,209 — — 4,209 
Corporate stocks2,368 44 1 — 2,413 
Private equity/partnerships— — — 1,531 1,531 
Government securities15 7,364 — — 7,379 
Real estate— — — 356 356 
Short-term investment funds681 — — — 681 
Company common stock348 — — — 348 
Other investments11 6 662 — 679 
Total investments$3,899 $11,623 $663 $7,108 $23,293 
Net derivative liabilities— (3,899)— — (3,899)
Net investments$3,899 $7,724 $663 $7,108 $19,394 
  
Fair Value Measurements at December 31, 2020
Assets
(In millions)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		NAVTotal
Common/collective trusts$561 $— $— $4,298 $4,859 
Corporate obligations— 4,707 2 — 4,709 
Corporate stocks2,737 39 1 — 2,777 
Private equity/partnerships— — — 1,353 1,353 
Government securities15 4,331 — — 4,346 
Real estate— — — 487 487 
Short-term investment funds1,040 — — — 1,040 
Company common stock234 — — — 234 
Other investments13 7 771 — 791 
Total investments$4,600 $9,084 $774 $6,138 $20,596 
Net derivative liabilities— (1,522)— — (1,522)
Net investments$4,600 $7,562 $774 $6,138 $19,074 
The tables below set forth a summary of changes in the fair value of the plans’ Level 3 assets for the years ended December 31, 2021 and December 31, 2020:
Assets
(In millions)
Fair Value,
January 1, 2021		PurchasesSalesUnrealized
Gain/
(Loss)		Realized
Gain/
(Loss)		Exchange
Rate
Impact		Transfers
in/(out)
and
Other		Fair
Value, December 31, 2021
Other investments$773 $19 $(15)$(78)$1 $(36)$(2)$662 
Corporate stocks1 1 — (1)— — — 1 
Total assets$774 $20 $(15)$(79)$1 $(36)$(2)$663 
Assets
(In millions)
Fair Value,
January 1, 2020		PurchasesSalesUnrealized
Gain/
(Loss)		Realized
Gain/
(Loss)		Exchange
Rate
Impact		Transfers
in/(out)
and
Other 		Fair
Value, December 31, 2020
Other investments$682 $20 $(12)$25 $1 $55 $2 $773 
Corporate stocks1 — — — — — — 1 
Total assets$683 $20 $(12)$25 $1 $55 $2 $774 
The following is a description of the valuation methodologies used for assets measured at fair value:
Company common stock: Valued at the closing price reported on the New York Stock Exchange.
Common stocks, preferred stocks, convertible equity securities, rights/warrants and real estate investment trusts (included in Corporate stocks): Valued at the closing price reported on the primary exchange.
Corporate bonds (included in Corporate obligations): The fair value of corporate bonds is estimated using recently executed transactions, market price quotations (where observable) and bond spreads. The spread data used are for the same maturity as the bond. If the spread data does not reference the issuer, then data that references a comparable issuer are used. When observable price quotations are not available, fair value is determined based on cash flow models.
Commercial mortgage-backed and asset-backed securities (included in Corporate obligations): Fair value is determined using discounted cash flow models. Observable inputs are based on trade and quote activity of bonds with similar features including issuer vintage, purpose of underlying loan (first or second lien), prepayment speeds and credit ratings. The discount rate is the combination of the appropriate rate from the benchmark yield curve and the discount margin based on quoted prices.
Common/Collective trusts: Trust assets include mutual funds that are valued based on readily determinable market values and other assets valued at the net asset value of units of a bank collective trust. The net asset value as provided by the trustee, is used as a practical expedient to estimate fair value. The net asset value is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported net asset value.
U.S. government bonds (included in Government securities): The fair value of U.S. government bonds is estimated by pricing models that utilize observable market data including quotes, spreads and data points for yield curves.
U.S. agency securities (included in Government securities): U.S. agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Agency issued debt securities are valued by benchmarking market-derived prices to quoted market prices and trade data for identical or comparable securities. Mortgage pass-throughs include certain "To-be-announced" (TBA) securities and mortgage pass-through pools. TBA securities are generally valued using quoted market prices or are benchmarked thereto. Fair value of mortgage pass-through pools are model driven with respect to spreads of the comparable TBA security.
Private equity and real estate partnerships: Investments in private equity and real estate partnerships are valued based on the fair value reported by the manager of the corresponding partnership and reported on
a one quarter lag. The managers provide unaudited quarterly financial statements and audited annual financial statements which set forth the value of the fund. The valuations obtained from the managers are based on various analyses on the underlying holdings in each partnership, including financial valuation models and projections, comparable valuations from the public markets, and precedent private market transactions. Investments are valued in the accompanying financial statements based on the Plan’s beneficial interest in the underlying net assets of the partnership as determined by the partnership agreement.
Insurance group annuity contracts: The fair values for these investments are based on the current market value of the aggregate accumulated contributions plus interest earned.
Net derivative liabilities: Includes interest rate swaps, inflation swaps, total return swaps, repurchase agreements and equity based derivatives, primarily related to the U.K. plans. These derivatives are structured to hedge interest rate, inflation and equity exposure in the U.K. plans. Fair values for interest rate, inflation and equity based derivatives are calculated using a discounted cash flow pricing model. These models use observable market data such as contractual fixed rate, spot equity price or index value and dividend data.
Short-term investment funds: Primarily high-grade money market instruments valued at a readily determinable price.
Registered investment companies: Valued at the closing price reported on the primary exchange.
Defined Contribution Plans
The Company maintains certain defined contribution plans for its employees, including the Marsh & McLennan Companies 401(k) Savings & Investment Plan ("MMC 401(k) Plan") and the Marsh & McLennan Agency Savings and Investment Plan (collectively, the "401(k) Plans"), that are qualified under U.S. tax laws. For the 401(k) Plans, eligible employees may contribute a percentage of their base salary, subject to certain limitations, and the Company matches a fixed portion of the employees’ contributions. In addition, the Company also amended the MMC 401(k) Plan for most of its U.S. employees to add an automatic Company contribution equal to 4% of eligible base pay beginning on January 1, 2017. The 401(k) Plans contain an Employee Stock Ownership Plan feature under U.S. tax law. Approximately $742 million of the 401(k) Plans' assets at December 31, 2021 and $537 million at December 31, 2020 were invested in the Company’s common stock. If a participant does not choose an investment direction for his or her future contributions, they are automatically invested in a BlackRock LifePath Portfolio that most closely matches the participant’s expected retirement year. The cost of these defined contribution plans was $150 million in 2021, $145 million in 2020 and $139 million in 2019. In addition, the Company has significant defined contribution plans in the U.K. As noted above, effective August 1, 2014, a newly formed defined contribution plan replaced the existing defined contribution and defined benefit plans with regard to future service. In addition, the Company has assumed responsibility for the defined contribution section of the JLT U.K. plan. The cost of the U.K. defined contribution plan was $141 million, $121 million and $100 million in 2021, 2020 and 2019, respectively.