Retirement Benefits

12 Months Ended

Dec. 31, 2023

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
	2023		2022		2023		2022
Weighted average assumptions:
Discount rate (for expense)	5.16	%	2.28	%	4.92	%	2.36	%
Expected return on plan assets	5.31	%	4.57	%	—		—
Rate of compensation increase (for expense) *	3.16	%	3.34	%	—		—
Discount rate (for benefit obligation)	4.95	%	5.16	%	5.26	%	4.92	%
Rate of compensation increase (for benefit obligation) *	3.16	%	3.16	%	—		—

(*) There are no rate of compensation increase assumptions 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 50% equities and equity alternatives and 50% fixed income. At December 31, 2023, the actual allocation for the U.S. plans was 49% equities and equity alternatives and 51% fixed income. The target asset allocation for the U.K. plans, which comprise approximately 79% of non-U.S. plan assets, is 14% equities and equity alternatives and 86% fixed income. At December 31, 2023, the actual allocation for the U.K. plans was 13% equities and equity alternatives and 87% 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 net benefit (credit) or cost of the Company's defined benefit and other post-retirement plans is measured on an actuarial basis using various methods and assumptions. The components of the net benefit (credit) or cost for the years 2023, 2022 and 2021 are as follows:

Combined U.S. and significant non-U.S. Plans	Pension						Post-retirement
For the Years Ended December 31,	Benefits						Benefits
(In millions)	2023		2022		2021		2023		2022		2021
Service cost	$	23	$	28	$	38	$	—	$	—	$	1
Interest cost	599		389		341		3		3		2
Expected return on plan assets	(860)		(778)		(832)		—		—		—
Amortization of prior service	—		1		—		(2)		(2)		(2)
Recognized actuarial loss (gain)	22		149		206		(3)		1		1
Net periodic benefit (credit) cost	(216)		(211)		(247)		(2)		2		2
Curtailment loss	—		—		2		—		—		—
Settlement loss	2		2		5		—		—		—
Net benefit (credit) cost	$	(214)	$	(209)	$	(240)	$	(2)	$	2	$	2

The following table provides the amounts reported in the consolidated statements of income:

Combined U.S. and significant non-U.S. Plans	Pension Benefits						Post-retirement Benefits
For the Years Ended December 31,
(In millions)	2023		2022		2021		2023		2022		2021
Compensation and benefits expense	$	23	$	28	$	38	$	—	$	—	$	1
Other net benefit (credit) cost	(237)		(237)		(278)		(2)		2		1
Net benefit (credit) cost	$	(214)	$	(209)	$	(240)	$	(2)	$	2	$	2

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 46%-54% for both equities and equity alternatives, and for fixed income. For the U.K. plans, the category ranges are 11%-17% for equities and equity alternatives, and 83%-89% for fixed income. Asset allocation is frequently monitored 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)	2023		2022		2023		2022
Change in benefit obligation:
Benefit obligation at beginning of year	$	4,876	$	6,594	$	22	$	28
Interest cost	260		193		1		1
Employee contributions	—		—		3		3
Actuarial (gain) loss	(20)		(1,625)		2		(3)
Benefits paid	(426)		(286)		(8)		(7)
Benefit obligation, December 31	$	4,690	$	4,876	$	20	$	22
Change in plan assets:
Fair value of plan assets at beginning of year	$	4,276	$	5,537	$	2	$	2
Actual return on plan assets	351		(1,005)		—		—
Employer contributions	33		30		5		4
Employee contributions	—		—		3		3
Benefits paid	(426)		(286)		(8)		(7)
Fair value of plan assets, December 31	$	4,234	$	4,276	$	2	$	2
Net funded status, December 31	$	(456)	$	(600)	$	(18)	$	(20)
Amounts recognized in the consolidated balance sheets:
Current liabilities	$	(31)	$	(31)	$	(1)	$	(1)
Non-current liabilities	(425)		(569)		(17)		(19)
Net liability recognized, December 31	$	(456)	$	(600)	$	(18)	$	(20)
Amounts recognized in other comprehensive income (loss):
Prior service (cost)	$	(1)	$	(1)	$	—	$	—
Net actuarial (loss) gain	(1,347)		(1,419)		4		8
Total recognized accumulated other comprehensive (loss) income, December 31	$	(1,348)	$	(1,420)	$	4	$	8
Cumulative employer contributions in excess of (less than) net benefit (credit) cost	892		820		(22)		(28)
Net amount recognized in consolidated balance sheet	$	(456)	$	(600)	$	(18)	$	(20)
Accumulated benefit obligation, December 31	$	4,690	$	4,876	$	—	$	—

	U.S. Pension Benefits				U.S. Post-retirement Benefits
(In millions)	2023		2022		2023		2022
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive income (loss):
Beginning balance	$	(1,419)	$	(1,777)	$	8	$	3
Recognized as component of net benefit cost (credit)	19		74		(2)		—
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Other	(7)		—		—		2
Liability experience	20		1,625		(2)		3
Asset experience	40		(1,341)		—		—
Total gain recognized as change in plan assets and benefit obligations	53		284		(2)		5
Net actuarial (loss) gain, December 31	$	(1,347)	$	(1,419)	$	4	$	8

For the Years Ended December 31,	U.S. Pension Benefits						U.S. Post-retirement Benefits
(In millions)	2023		2022		2021		2023		2022		2021
Total recognized in net benefit (credit) cost and other comprehensive (income) loss	$	(105)	$	(427)	$	(722)	$	3	$	(4)	$	—

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
	2023		2022		2023		2022
Weighted average assumptions:
Discount rate (for expense)	5.53	%	3.00	%	5.31	%	2.56	%
Expected return on plan assets	6.49	%	6.88	%	—		—
Discount rate (for benefit obligation)	5.52	%	5.53	%	5.34	%	5.31	%

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 $4.7 billion and $4.2 billion, respectively, at December 31, 2023 and $4.9 billion and $4.3 billion, respectively, at December 31, 2022.

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 $4.7 billion and $4.2 billion, respectively, at December 31, 2023 and $4.9 billion and $4.3 billion, respectively, at December 31, 2022.

At December 31, 2023, the U.S. qualified plan holds 1 million shares of the Company’s common stock which were contributed to the qualified plan by the Company in 2005. This represented approximately 4.5% of that plan's assets at December 31, 2023.

The components of the net benefit (credit) cost for the U.S. defined benefit and other post-retirement benefit plans are as follows:

U.S. Plans only	Pension Benefits						Post-retirement Benefits
For the Years Ended December 31,
(In millions)	2023		2022		2021		2023		2022		2021
Interest cost	$	260	$	193	$	184	$	1	$	1	$	1
Expected return on plan assets	(311)		(336)		(327)		—		—		—
Recognized actuarial loss (gain)	19		74		90		(2)		—		(1)
Net benefit (credit) cost	$	(32)	$	(69)	$	(53)	$	(1)	$	1	$	—

The assumed health care cost trend rate for Medicare eligibles and non-Medicare eligibles is approximately 6.1% in 2023, gradually declining to 4.0% in 2046. 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 5.0%.

Estimated Future Contributions

The Company expects to contribute approximately $31 million to its non-qualified U.S. plans in 2024. 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. The Company was not required to and made no contributions to its U.S. qualified plans in 2023. In 2024, the Company is required to make contributions totaling $2 million to its U.S. qualified plans.

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)	2023		2022		2023		2022
Change in benefit obligation:
Benefit obligation at beginning of year	$	6,886	$	12,057	$	48	$	68
Service cost	23		28		—		—
Interest cost	339		196		2		2
Employee contributions	3		3		—		—
Plan combination	—		2		—		—
Actuarial loss (gain)	226		(3,953)		(10)		(14)
Effect of settlement	(15)		(22)		—		—
Benefits paid	(352)		(342)		(2)		(2)
Foreign currency changes	411		(1,083)		2		(6)
Benefit obligation, December 31	$	7,521	$	6,886	$	40	$	48
Change in plan assets:
Fair value of plan assets at beginning of year	$	8,764	$	13,855	$	—	$	—
Plan combination	—		1		—		—
Actual return on plan assets	358		(3,609)		—		—
Effect of settlement	(15)		(22)		—		—
Company contributions	78		139		2		2
Employee contributions	3		3		—		—
Benefits paid	(352)		(342)		(2)		(2)
Foreign currency changes	472		(1,261)		—		—
Fair value of plan assets, December 31	$	9,308	$	8,764	$	—	$	—
Net funded status, December 31	$	1,787	$	1,878	$	(40)	$	(48)
Amounts recognized in the consolidated balance sheets:
Non-current assets	$	2,050	$	2,127	$	—	$	—
Current liabilities	(7)		(6)		(3)		(3)
Non-current liabilities	(256)		(243)		(37)		(45)
Net asset (liability) recognized, December 31	$	1,787	$	1,878	$	(40)	$	(48)
Amounts recognized in other comprehensive loss:
Prior service (cost) credit	$	(17)	$	(16)	$	3	$	5
Net actuarial (loss) gain	(3,219)		(2,610)		17		6
Total recognized accumulated other comprehensive (loss) income, December 31	$	(3,236)	$	(2,626)	$	20	$	11
Cumulative employer contributions in excess of (less than) net benefit (credit) cost	5,023		4,504		(60)		(59)
Net asset (liability) recognized in consolidated balance sheets, December 31	$	1,787	$	1,878	$	(40)	$	(48)
Accumulated benefit obligation, December 31	$	7,396	$	6,776	$	—	$	—

	Non-U.S. Pension Benefits				Non-U.S. Post-retirement Benefits
(In millions)	2023		2022		2023		2022
Reconciliation of prior service (cost) credit recognized in accumulated other comprehensive income (loss):
Beginning balance	$	(16)	$	(18)	$	5	$	7
Recognized as component of net benefit (credit) cost:
Amortization of prior service credit	—		—		(2)		(2)
Total recognized as component of net benefit (credit) cost	—		—		(2)		(2)
Changes in plan assets and benefit obligations recognized in other comprehensive income:
Exchange rate adjustments	(1)		2		—		—
Prior service (cost) credit, December 31	$	(17)	$	(16)	$	3	$	5

	Non-U.S. Pension Benefits				Non-U.S. Post-retirement Benefits
(In millions)	2023		2022		2023		2022
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive (loss) income:
Beginning balance	$	(2,610)	$	(2,904)	$	6	$	(10)
Recognized as component of net benefit (credit) cost:
Amortization of net loss (gain)	3		75		(1)		1
Effect of settlement	2		2		—		—
Total recognized as component of net benefit cost (credit)	5		77		(1)		1
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Liability experience	(226)		3,953		10		14
Asset experience	(191)		(4,051)		—		—
Total amount recognized as change in plan assets and benefit obligations	(417)		(98)		10		14
Exchange rate adjustments	(197)		315		2		1
Net actuarial (loss) gain, December 31	$	(3,219)	$	(2,610)	$	17	$	6

For the Years Ended December 31,	Non-U.S. Pension Benefits						Non-U.S. Post-retirement Benefits
(In millions)	2023		2022		2021		2023		2022		2021
Total recognized in net benefit (credit) cost and other comprehensive (income) loss	$	429	$	(436)	$	(745)	$	(9)	$	(13)	$	(2)

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
	2023		2022		2023		2022
Weighted average assumptions:
Discount rate (for expense)	4.89	%	1.89	%	4.73	%	2.28	%
Expected return on plan assets	4.74	%	3.64	%	—		—
Rate of compensation increase (for expense)	3.16	%	3.34	%	—		—
Discount rate (for benefit obligation)	4.59	%	4.89	%	5.22	%	4.73	%
Rate of compensation increase (for benefit obligation)	3.16	%	3.16	%	—		—

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 $427 million and $210 million, respectively, at December 31, 2023 and $935 million and $718 million, respectively, at December 31, 2022.

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 $1.3 billion and $1.0 billion, respectively, at December 31, 2023 and $1.0 billion and $723 million, respectively, at December 31, 2022.

Components of Net Benefit (Credit) or Cost

The components of the net benefit (credit) or 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)	2023		2022		2021		2023		2022		2021
Service cost	$	23	$	28	$	38	$	—	$	—	$	1
Interest cost	339		196		157		2		2		1
Expected return on plan assets	(549)		(442)		(505)		—		—		—
Amortization of prior service credit	—		1		—		(2)		(2)		(2)
Recognized actuarial loss	3		75		116		(1)		1		2
Net periodic benefit (credit) cost	(184)		(142)		(194)		(1)		1		2
Settlement loss	2		2		5		—		—		—
Curtailment loss	—		—		2		—		—		—
Net benefit (credit) cost	$	(182)	$	(140)	$	(187)	$	(1)	$	1	$	2

The assumed health care cost trend rate was approximately 8.87% in 2023, gradually declining to 4.46% 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 $78 million to its non-U.S. pension plans in 2024. 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 3 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.

In 2021, following the acquisition of Jardine Lloyd Thompson Group plc ("JLT"), 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 $41 million to the JLT section in 2023 and is expected to make contributions totaling approximately $38 million in 2024.

For the MMC U.K. Pension Fund, excluding the JLT section, an agreement was reached with the trustee in the fourth quarter of 2022 based on the surplus funding position at December 31, 2021. In accordance with the agreement no deficit funding is required the earliest until 2026. The funding level will be re-assessed during 2025, as part of the December 31, 2024 actuarial valuation, to determine if contributions are required in 2026. In December 2022, the Company renewed its agreement to support annual deficit contributions by the U.K. operating companies under certain circumstances, up to £450 million (or $576 million) over a seven-year period. This is part of an agreement which gives the Company greater influence over asset allocation and overall investment decisions.

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.
2024	$	316	$	380	$	3	$	3
2025	$	327	$	367	$	3	$	3
2026	$	338	$	377	$	2	$	3
2027	$	342	$	390	$	2	$	3
2028	$	344	$	404	$	2	$	3
2029-2033	$	1,719	$	2,227	$	7	$	14

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

•Investments valued using net asset value ("NAV") 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. Refer to Note 10, Fair Value Measurements, for further description of the fair value hierarchy.

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, 2023 and 2022:

	Fair Value Measurements at December 31, 2023
Assets (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		NAV		Total
Common/collective trusts	$	43	$	—	$	—	$	3,535	$	3,578
Corporate obligations	—		2,806		—		—		2,806
Corporate stocks	227		37		1		—		265
Private equity/partnerships	—		—		—		1,444		1,444
Government securities	23		5,077		—		—		5,100
Real estate	—		—		—		63		63
Short-term investment funds	488		—		—		—		488
Company common stock	189		—		—		—		189
Other investments	7		14		302		—		323
Total investments	$	977	$	7,934	$	303	$	5,042	$	14,256
Net derivative liabilities	—		(804)		—		—		(804)
Net investments	$	977	$	7,130	$	303	$	5,042	$	13,452

	Fair Value Measurements at December 31, 2022
Assets (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		NAV		Total
Common/collective trusts	$	43	$	—	$	—	$	3,995	$	4,038
Corporate obligations	—		2,402		—		—		2,402
Corporate stocks	527		36		1		—		564
Private equity/partnerships	—		—		—		1,433		1,433
Government securities	15		4,662		—		—		4,677
Real estate	—		—		—		261		261
Short-term investment funds	609		3		—		—		612
Company common stock	331		—		—		—		331
Other investments	10		11		308		—		329
Total investments	$	1,535	$	7,114	$	309	$	5,689	$	14,647
Net derivative liabilities	—		(1,605)		—		—		(1,605)
Net investments	$	1,535	$	5,509	$	309	$	5,689	$	13,042

The above tables do not include receivables or payables related to securities at December 31, 2023 and 2022.

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, 2023 and December 31, 2022:

Assets (In millions)	Fair Value, January 1, 2023		Purchases		Sales		Unrealized Gain/ (Loss)		Realized Gain/ (Loss)		Exchange Rate Impact		Transfers in/(out) and Other		Fair Value, December 31, 2023
Other investments	$	308	$	16	$	(15)	$	(21)	$	—	$	14	$	—	$	302
Corporate stocks	1		—		—		—		—		—		—		1
Total assets	$	309	$	16	$	(15)	$	(21)	$	—	$	14	$	—	$	303

Assets (In millions)	Fair Value, January 1, 2022		Purchases		Sales		Unrealized Gain/ (Loss)		Realized Gain/ (Loss)		Exchange Rate Impact		Transfers in/(out) and Other		Fair Value, December 31, 2022
Other investments	$	662	$	18	$	(19)	$	(302)	$	—	$	(51)	$	—	$	308
Corporate stocks	1		—		—		—		—		—		—		1
Total assets	$	663	$	18	$	(19)	$	(302)	$	—	$	(51)	$	—	$	309

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 (included in Other investments): 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 $726 million of the 401(k) Plans' assets at December 31, 2023 and $677 million at December 31, 2022 were invested in the Company’s common stock. If a participant does not choose an investment direction for their 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 $173 million in 2023, $161 million in 2022 and $150 million in 2021. In addition, the Company has significant defined contribution plans in the U.K. 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 assumed responsibility for the defined contribution section of the JLT U.K. plan. Members of the JLT U.K. plan defined contribution section transferred to the MMC U.K. Pension Fund defined contribution section in 2021. The cost of the U.K. defined contribution plan was $158 million, $140 million and $141 million in 2023, 2022 and 2021, respectively.