People often wonder what happens to their pension benefits when they die. This FAQ explains the death benefits payable from the Defined Contribution (‘DC’) Section of the Fund, what you need to do to tell the Trustee of the Fund who you would like these to be paid to, and any tax considerations.
If you also have legacy benefits in the Defined Benefit (‘DB’) sections of the Fund, additional death benefits will be payable in accordance with the Rules of the Fund.
Should you die while you’re employed by MMC, your beneficiaries will receive a lump sum death benefit. This lump sum is made up of a life assurance payment and the total value of your DC Section pension savings. Your level of life assurance cover is a multiple of your pensionable salary, chosen by you each year and confirmation of which can be found in Prosper.
If you are a deferred member of the DC Section and no longer employed by MMC, and you have kept your DC Section pension savings in the Fund, the total value of your DC Section pension savings will be paid to your beneficiaries.
It’s up to the Trustee to determine the beneficiaries of your lump sum death benefit. To help the Trustee with this decision, it’s vital that you nominate your beneficiaries by making an Expression of Wish. You can do this by logging into OneView, or you can find an Expression of Wish Form on the Fund website to complete and return by email or post.
This video shows you a step-by-step guide for how to do this on OneView.
The Trustee isn’t bound by your Expression of Wish but will consider it carefully alongside other information like your will and any information provided by your representative who notifies the Trustee of your death. Completing an Expression of Wish makes it much easier for the Trustee to decide how to pay the death benefit, which means your beneficiaries will receive the payment much more quickly.
Your Expression of Wish form will be kept securely and is completely confidential.
You can include anyone in your Expression of Wish. They don’t need to be a relative. For example, you could leave your pension savings to a friend, a charity or another Trust. However, if you want to include a Trust, you can’t do this on OneView – you would need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
If you have more than one pension benefit on OneView (for example, you also have benefits in the DB sections of the Fund), your Expression of Wish will automatically apply to all benefits listed on OneView.
If you want to record separate wishes for each pension benefit, you’ll need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
If you want to select an approach that isn’t covered by the list on OneView, you’ll need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
For example, if you wanted to:
Pay my benefits 100% to Person A but if they are deceased then pay 50% to Person B and 50% to Person C.
Then this would need to be documented in this way.
Yes. If you choose to nominate one or more children in your Expression of Wish, the Trustee is able to assist the next of kin with setting up a trust, if required.
Yes, the Trustee will take any relevant information into account when determining your beneficiaries, including your will. It’s recommended that you make a will to ease the administration of your estate for your survivors and help the Trustee to follow your wishes. Assistance and advice in drawing up a will can be obtained from a solicitor, or from a professional financial adviser. If you’re currently employed by MMC, a will-writing service is available through Prosper.
At present, pension savings are generally not included when working out the total value of your estate for inheritance tax (IHT) purposes. However, Rachel Reeves, Chancellor of the Exchequer, announced in the Autumn Budget 2024 that from April 2027, most lump sum death benefits from pension schemes (and any unused DC pension savings) will be included when calculating the value of your estate for IHT purposes, unless they are paid to a qualifying charity.
This means that it’s proposed that the value of your pension savings when you die will be added to your other assets to calculate whether your estate will pay IHT. If you name your spouse or civil partner in your Expression of Wish, they’ll inherit your pension savings tax-free. However, if you nominate someone else – a child for instance – there could be 40% tax to pay if your overall estate exceeds the nil rate band.
The Government held a consultation, which finished in January 2025, on this change. The Trustee of the Fund and MMC will review the implications for the Fund and its members, and provide further information and guidance following the outcome of this consultation.
You can find out more about pensions and taxation at www.moneyhelper.org.uk.
If you still have questions after reading this FAQ, please contact Aptia, our administrators, at pensionuk.aptia-group.com
July 2025
Please see the attached update from the Trustee on the recent volatility in the investment markets, along with answers to a number of ‘Frequently Asked Questions’.
April 2025
The Trustee of the MMC UK Pension Fund (the Fund) has recently appointed Aptia UK Limited (Aptia) as the provider for delivering pension administration services for the Fund. Previously, Mercer had been responsible for administering the Fund. Earlier this year, Mercer's administration business was acquired by Aptia, leading to the transfer of the Fund's pension administration services to Aptia.
Aptia is working closely with the Trustee to ensure a smooth transition. Please be assured that the administration team and technology used to manage your pension savings have not changed. Additionally, Mercer is continuing to support Aptia to ensure a seamless handover of services.
It is anticipated that any correspondence you have with the administrators will start to switch from Mercer to Aptia’s own branding over the coming months. This change will include updating the regular and ad hoc communications and the online portals used to contact Aptia. During this process you may see or receive communications in both Mercer and Aptia branding for a period. This is not something to be concerned about. This rebranding is part of the transition process and does not affect the administration of your pension benefits nor the service you receive.
Please read the FAQs below for more information.
1. Who is Aptia? Aptia is the new administrator for the MMC UK Pension Fund. It has taken over the pension administration services from Mercer. You can read more about the Aptia business on their website: https://www.aptia-group.com/en-gb/about-aptia
2. Will contact details for the MMC UK Pension Fund change? The contact details for the MMC UK Pension Fund have changed to:
| Telephone: | 0330 100 3597 |
| By Post: | Aptia UK LimitedMMC UK Pensions ArrangementsMaclaren HouseTalbot RoadStretfordManchesterM32 0FP |
| Online: | https://pensionuk.aptia-group.com/ |
| Aptia OneView: | https://v3.aptiaoneview.co.uk/MMCPENSIONS |
3. Do I need to take any action as a result of this change? No, you do not need to take any action as a result of this change. Your pension benefits will continue to be administered without any action required from you.
4. Do I need to inform anyone of this, e.g. HMRC / my accountant / financial adviser (IFA)? There is no need for you to inform anyone regarding this change. The necessary arrangements have been made to ensure a seamless transition, and your pension benefits will continue to be paid as usual.
5. Will there be any interruption to being able to access Aptia OneView? No, there will be no interruption to your ability to access Aptia OneView. You can continue to use the same login details and access information about your benefits as before. Aptia will, through time, introduce their own self-service platform equivalent to Aptia OneView and further details will be shared by Aptia in due course.
6. Over what period will the branding changes take place? The branding changes will take place gradually over the course of 2024. You will begin to see the Aptia logo appear:
7. What was behind the decision for Mercer to sell the administration business? The decision to sell its administration business was a strategic business decision taken by Mercer. The Trustee and Aptia are working closely to ensure a smooth transition and continued high-quality service.
8. Is Mercer still involved in the running of the MMC UK Pension Fund? Yes, the Trustee continues to work with Mercer for the provision of actuarial, investment and pension consulting services.
9. How have you ensured that my details have transferred correctly to the new administrator (Aptia)? The Trustee and Aptia have taken all necessary measures to ensure a smooth transfer of your details. Your information has been securely transferred to Aptia, and it will continue to administer your pension benefits as before.
10. How is the continuation of service level being monitored? The Trustee is closely monitoring the continuation of service levels during this transition. We are working closely with Aptia to ensure that the high-quality administration service you are accustomed to is maintained. The same experienced, knowledgeable administration team, undertaking the administration on behalf on the Trustee, is being maintained transitioned to Aptia.
11. I have a pension from a different pension scheme that is administered by Mercer, will this be moving to Aptia too? This letter specifically applies to the arrangements for the MMC UK Pension Fund and we are unable to comment on any changes in respect of other pension arrangements. If you have other pensions administered by Mercer, please contact Mercer using your usual contact details for those pensions.
12. Will there be any changes to the timing or value of my pension payments? No, there will be no change to the timing or value of your pension payments.
13. Will there be any changes to the pension details or banking information? No, there will be no changes to your pension details or banking information associated with your pension. Your payments will be made to the same account as before.
14. Does this impact the security of my pension? This change in administration does not impact the security of your pension in any way as you continue to be a member of the MMC UK Pension Fund. Your pension benefits will remain the same.
If you have any additional questions or require further clarification, please do not hesitate to contact the administration team using the contact details above.
May 2024
People often wonder what happens to their pension benefits when they die. This FAQ explains the death benefits payable from the Defined Contribution (‘DC’) Section of the Fund, what you need to do to tell the Trustee of the Fund who you would like these to be paid to, and any tax considerations.
If you also have legacy benefits in the Defined Benefit (‘DB’) sections of the Fund, additional death benefits will be payable in accordance with the Rules of the Fund.
Should you die while you’re employed by MMC, your beneficiaries will receive a lump sum death benefit. This lump sum is made up of a life assurance payment and the total value of your DC Section pension savings. Your level of life assurance cover is a multiple of your pensionable salary, chosen by you each year and confirmation of which can be found in Prosper.
If you are a deferred member of the DC Section and no longer employed by MMC, and you have kept your DC Section pension savings in the Fund, the total value of your DC Section pension savings will be paid to your beneficiaries.
It’s up to the Trustee to determine the beneficiaries of your lump sum death benefit. To help the Trustee with this decision, it’s vital that you nominate your beneficiaries by making an Expression of Wish. You can do this by logging into OneView, or you can find an Expression of Wish Form on the Fund website to complete and return by email or post.
This video shows you a step-by-step guide for how to do this on OneView.
The Trustee isn’t bound by your Expression of Wish but will consider it carefully alongside other information like your will and any information provided by your representative who notifies the Trustee of your death. Completing an Expression of Wish makes it much easier for the Trustee to decide how to pay the death benefit, which means your beneficiaries will receive the payment much more quickly.
Your Expression of Wish form will be kept securely and is completely confidential.
You can include anyone in your Expression of Wish. They don’t need to be a relative. For example, you could leave your pension savings to a friend, a charity or another Trust. However, if you want to include a Trust, you can’t do this on OneView – you would need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
If you have more than one pension benefit on OneView (for example, you also have benefits in the DB sections of the Fund), your Expression of Wish will automatically apply to all benefits listed on OneView.
If you want to record separate wishes for each pension benefit, you’ll need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
If you want to select an approach that isn’t covered by the list on OneView, you’ll need to complete the Expression of Wish Form, which you can find on the Fund website, and send this to Aptia by email or post.
For example, if you wanted to:
Pay my benefits 100% to Person A but if they are deceased then pay 50% to Person B and 50% to Person C.
Then this would need to be documented in this way.
Yes. If you choose to nominate one or more children in your Expression of Wish, the Trustee is able to assist the next of kin with setting up a trust, if required.
Yes, the Trustee will take any relevant information into account when determining your beneficiaries, including your will. It’s recommended that you make a will to ease the administration of your estate for your survivors and help the Trustee to follow your wishes. Assistance and advice in drawing up a will can be obtained from a solicitor, or from a professional financial adviser. If you’re currently employed by MMC, a will-writing service is available through Prosper.
At present, pension savings are generally not included when working out the total value of your estate for inheritance tax (IHT) purposes. However, Rachel Reeves, Chancellor of the Exchequer, announced in the Autumn Budget 2024 that from April 2027, most lump sum death benefits from pension schemes (and any unused DC pension savings) will be included when calculating the value of your estate for IHT purposes, unless they are paid to a qualifying charity.
This means that it’s proposed that the value of your pension savings when you die will be added to your other assets to calculate whether your estate will pay IHT. If you name your spouse or civil partner in your Expression of Wish, they’ll inherit your pension savings tax-free. However, if you nominate someone else – a child for instance – there could be 40% tax to pay if your overall estate exceeds the nil rate band.
The Government held a consultation, which finished in January 2025, on this change. The Trustee of the Fund and MMC will review the implications for the Fund and its members, and provide further information and guidance following the outcome of this consultation.
You can find out more about pensions and taxation at www.moneyhelper.org.uk.
If you still have questions after reading this FAQ, please contact Aptia, our administrators, at pensionuk.aptia-group.com
July 2025
Please see the attached update from the Trustee on the recent volatility in the investment markets, along with answers to a number of ‘Frequently Asked Questions’.
April 2025
The Trustee of the MMC UK Pension Fund (the Fund) has recently appointed Aptia UK Limited (Aptia) as the provider for delivering pension administration services for the Fund. Previously, Mercer had been responsible for administering the Fund. Earlier this year, Mercer's administration business was acquired by Aptia, leading to the transfer of the Fund's pension administration services to Aptia.
Aptia is working closely with the Trustee to ensure a smooth transition. Please be assured that the administration team and technology used to manage your pension savings have not changed. Additionally, Mercer is continuing to support Aptia to ensure a seamless handover of services.
It is anticipated that any correspondence you have with the administrators will start to switch from Mercer to Aptia’s own branding over the coming months. This change will include updating the regular and ad hoc communications and the online portals used to contact Aptia. During this process you may see or receive communications in both Mercer and Aptia branding for a period. This is not something to be concerned about. This rebranding is part of the transition process and does not affect the administration of your pension benefits nor the service you receive.
Please read the FAQs below for more information.
1. Who is Aptia? Aptia is the new administrator for the MMC UK Pension Fund. It has taken over the pension administration services from Mercer. You can read more about the Aptia business on their website: https://www.aptia-group.com/en-gb/about-aptia
2. Will contact details for the MMC UK Pension Fund change? The contact details for the MMC UK Pension Fund have changed to:
| Telephone: | 0330 100 3597 |
| By Post: | Aptia UK LimitedMMC UK Pensions ArrangementsMaclaren HouseTalbot RoadStretfordManchesterM32 0FP |
| Online: | https://pensionuk.aptia-group.com/ |
| Aptia OneView: | https://v3.aptiaoneview.co.uk/MMCPENSIONS |
3. Do I need to take any action as a result of this change? No, you do not need to take any action as a result of this change. Your pension benefits will continue to be administered without any action required from you.
4. Do I need to inform anyone of this, e.g. HMRC / my accountant / financial adviser (IFA)? There is no need for you to inform anyone regarding this change. The necessary arrangements have been made to ensure a seamless transition, and your pension benefits will continue to be paid as usual.
5. Will there be any interruption to being able to access Aptia OneView? No, there will be no interruption to your ability to access Aptia OneView. You can continue to use the same login details and access information about your benefits as before. Aptia will, through time, introduce their own self-service platform equivalent to Aptia OneView and further details will be shared by Aptia in due course.
6. Over what period will the branding changes take place? The branding changes will take place gradually over the course of 2024. You will begin to see the Aptia logo appear:
7. What was behind the decision for Mercer to sell the administration business? The decision to sell its administration business was a strategic business decision taken by Mercer. The Trustee and Aptia are working closely to ensure a smooth transition and continued high-quality service.
8. Is Mercer still involved in the running of the MMC UK Pension Fund? Yes, the Trustee continues to work with Mercer for the provision of actuarial, investment and pension consulting services.
9. How have you ensured that my details have transferred correctly to the new administrator (Aptia)? The Trustee and Aptia have taken all necessary measures to ensure a smooth transfer of your details. Your information has been securely transferred to Aptia, and it will continue to administer your pension benefits as before.
10. How is the continuation of service level being monitored? The Trustee is closely monitoring the continuation of service levels during this transition. We are working closely with Aptia to ensure that the high-quality administration service you are accustomed to is maintained. The same experienced, knowledgeable administration team, undertaking the administration on behalf on the Trustee, is being maintained transitioned to Aptia.
11. I have a pension from a different pension scheme that is administered by Mercer, will this be moving to Aptia too? This letter specifically applies to the arrangements for the MMC UK Pension Fund and we are unable to comment on any changes in respect of other pension arrangements. If you have other pensions administered by Mercer, please contact Mercer using your usual contact details for those pensions.
12. Will there be any changes to the timing or value of my pension payments? No, there will be no change to the timing or value of your pension payments.
13. Will there be any changes to the pension details or banking information? No, there will be no changes to your pension details or banking information associated with your pension. Your payments will be made to the same account as before.
14. Does this impact the security of my pension? This change in administration does not impact the security of your pension in any way as you continue to be a member of the MMC UK Pension Fund. Your pension benefits will remain the same.
If you have any additional questions or require further clarification, please do not hesitate to contact the administration team using the contact details above.
May 2024
The SmartPath Target Drawdown strategy is the default investment strategy for Fund members and is designed for those wishing to take income drawdown at retirement. The SmartPath Target Cash strategy is an additional strategy available for selection by Fund members and is designed for those wishing to take a cash lump sum at retirement. The Trustee has delegated the design of these strategies to Mercer Workplace Savings (“MWS”).
Following a recent Mercer SmartPath Investment Strategy Review undertaken by MWS, changes are being made to the SmartPath Target Drawdown strategy for members retiring after 31 December 2025. If your target retirement date is on, or before, 31 December 2025, you will continue to be invested in line with the previous strategy. The Trustee periodically reviews the range of investment options made available to you as a member to ensure they continue to be in line with best practice design and are comfortable with these changes.
The change being made by MWS is to reduce the Cash allocation within the SmartPath Target Drawdown strategy in the years leading up to retirement and replacing this with an increased allocation to the Mercer Diversified Retirement Fund. MWS have taken this decision as the new allocation will be better positioned to provide moderate long-term capital growth, for those who intend to access flexible income drawdown at retirement. This change will take place inside the target retirement funds and will only impact members whose target retirement date is after 31 December 2025. You should ensure that your target retirement date correctly reflects the date you intend to retire. You can check your current target retirement date and make changes by logging into Mercer OneView.
Further details about how your investments will change over time while invested in the default strategy (before and after these changes) are available in the Fund’s Investment Guide. You can check if you are invested in the default strategy by logging into Mercer OneView.
Following a recent Mercer SmartPath Investment Strategy Review undertaken by MWS, changes are being made to the SmartPath Target Cash strategy for all members. The change being made by MWS is to replace the Mercer Passive UK Corporate Bond Fund allocation within the SmartPath Target Cash strategy in the years leading up to retirement with an allocation to the Mercer Diversified Retirement Fund. This change was made on 18 March 2024.
Further details about how your investments will change over time while invested in the SmartPath Target Cash strategy (following the above change) are available in the Fund’s Investment Guide. You can check if you are invested in the SmartPath Target Cash strategy by logging into Mercer OneView.
If you have any questions about Mercer OneView, please contact the Mercer OneView Contact Centre on 0345 600 0229 (9.00am to 5.00pm. Monday to Friday, except public holidays).
For current colleagues you can access Mercer OneView via the single sign on link in the My Quick Links section in Colleague Connect. For deferred members you can access OneView here, if you need to request a new log in passcode, please email: contact.mercer.com
We encourage you to regularly review your investment choices, particularly as you get closer to your target retirement age, to ensure they remain aligned with how and when you intend to access your pension savings. For details of the various options available to you at retirement, you should read the Fund’s Retirement Flexibilities Guide.
Additionally, in the lead up to retirement you will have access to the Pensions Decision Service (“PDS”), which will provide you with a dedicated Retirement Relationship Manager on hand to help with any questions you may have in the approach to retirement.
Important Notes
Managing your retirement savings properly is important and there is a lot of information for you to consider. Before you make any decisions about accessing your DC savings in the Fund, it is strongly recommended that you seek professional financial advice from a FCA-regulated financial adviser. You can find a regulated financial adviser in your area by visiting https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser. You should always check the charges and specialist areas of an adviser before appointing them. You can also contact the Mercer Private Wealth team here.
March 2024
The Trustee is committed to focusing on sustainability in the management and monitoring of your savings.
The Fund’s default strategy has also set a target of net-zero absolute carbon emissions by 2050. The interim plan to achieve this target aligns with targeting a 1.5°C limit on global temperature increases and the Paris Agreement’s ambitions.
For more details on the Trustee’s beliefs and policies regarding sustainability, please read:
October 2023
For current colleagues, the life assurance, which forms part of your overall Marsh McLennan benefits package, provides additional financial security for your family and other dependants should you pass away whilst employed by the Company. The Lump Sum Death Benefits Allowance (LSDBA) could affect your death in service benefits. The LSDBA is a limit set by HM Revenue & Customs (HMRC) on the amount of benefits that can be paid through a Registered arrangement without triggering a tax charge. The LSDBA is currently set at £1,073,100 and benefit above this would be taxed at the beneficiary’s marginal rate.
For more detail on how you may be impacted by this please find further resources below:
The LSDBA is a limit set by HM Revenue & Customs (HMRC) on the amount of benefit that can be paid through a Registered arrangement without triggering a tax charge. The LSDBA is currently set at £1,073,100 and benefit above this would be taxed at the beneficiary’s marginal rate.
For the purposes of the LSDBA charge calculation, on death your lump sum life assurance benefit would be included as well as any other lump sum benefits that would be payable from a Registered arrangement, such as the return of your Defined Contribution (DC) account from the MMC UK Pension Fund, as well as any other DC accounts you may have such as from any previous employment.
MMC’s default approach to managing the death in service benefits is to provide any lump sum life assurance benefit above £500,000 through a ‘non-registered or Excepted’ arrangement, benefits from which do not count towards the LSDBA. Two examples of how the LSDBA would apply based on MMC’s default approach are as follows:
| MMC Life Assurance benefit, as selected in Prosper: | MMC Pension Fund DC account: | DC account from previous employment: | Total benefit payable in the event of death: |
| £1,080,000 (18 x salary) | + £120,000 | + £50,000 | = £1,250,000 |
| Total benefit for LSDBA purposes: | £670,000* | ||
| Benefit exposed to LSDBA charge: | £nil | ||
| MMC Life Assurance benefit, as selected in Prosper: | MMC Pension Fund DC account: | DC account from previous employment: | Total benefit payable in the event of death: |
| £2,880,000 (16 x salary) | + £500,000 | + £150,000 | = £3,530,000 |
| Total benefit for LSDBA purposes: | £1,150,000* | ||
| Benefit exposed to LSDBA charge: | £76,900 | ||
For the avoidance of doubt, in the event of death, benefits through membership of MMC’s Defined Benefit (DB) arrangements are paid as pension income to beneficiaries rather than lump sums and do not count towards the LSDBA calculation.
If the default approach does not work for you then you can request to have all of your lump sum life assurance benefit provided via the Excepted/non-registered arrangement. Completion of a form is required to make the request; this can be found on our Forms page. If you are unsure of the approach you should take, you should take advice from an independent financial advisor. You can also contact the Mercer Private Wealth team here.
There are some circumstances where UK inheritance tax could be payable on benefits provided via a non-registered arrangement. Based on inheritance tax rates, law and HMRC confirmations applicable to deaths occurring prior to 1 April 2024 this tax charge would not be more than 6% of the lump sum death benefit paid. If any such UK inheritance tax were payable, it would be deducted from the lump sum benefit at or before the time of payment.
If you have been granted any form of HMRC protected tax-free cash (formerly Lifetime Allowance protection), such as Fixed Protection, and have already informed the MMC Benefits Team then no action is required. All lump sum life assurance benefits are automatically insured via MMC’s Excepted/non-registered arrangement if you have opted out of the MMC UK Pension Fund for pension savings tax reasons and currently receive a Non Pensionable salary Supplement (NPSS).
If you have not previously informed MMC that you have HMRC protection then you should do so immediately. Please send a copy of your HMRC protection certificate to UKIBenefits@mmc.com.
Should you wish to elect to have all your life assurance provided through the Excepted/non-registered arrangement, please complete and return the application form.
For any further questions, please click here to access FAQs or contact UKIBenefits@mmc.com.
May 2024
The SmartPath Target Drawdown strategy is the default investment strategy for Fund members and is designed for those wishing to take income drawdown at retirement. The SmartPath Target Cash strategy is an additional strategy available for selection by Fund members and is designed for those wishing to take a cash lump sum at retirement. The Trustee has delegated the design of these strategies to Mercer Workplace Savings (“MWS”).
Following a recent Mercer SmartPath Investment Strategy Review undertaken by MWS, changes are being made to the SmartPath Target Drawdown strategy for members retiring after 31 December 2025. If your target retirement date is on, or before, 31 December 2025, you will continue to be invested in line with the previous strategy. The Trustee periodically reviews the range of investment options made available to you as a member to ensure they continue to be in line with best practice design and are comfortable with these changes.
The change being made by MWS is to reduce the Cash allocation within the SmartPath Target Drawdown strategy in the years leading up to retirement and replacing this with an increased allocation to the Mercer Diversified Retirement Fund. MWS have taken this decision as the new allocation will be better positioned to provide moderate long-term capital growth, for those who intend to access flexible income drawdown at retirement. This change will take place inside the target retirement funds and will only impact members whose target retirement date is after 31 December 2025. You should ensure that your target retirement date correctly reflects the date you intend to retire. You can check your current target retirement date and make changes by logging into Mercer OneView.
Further details about how your investments will change over time while invested in the default strategy (before and after these changes) are available in the Fund’s Investment Guide. You can check if you are invested in the default strategy by logging into Mercer OneView.
Following a recent Mercer SmartPath Investment Strategy Review undertaken by MWS, changes are being made to the SmartPath Target Cash strategy for all members. The change being made by MWS is to replace the Mercer Passive UK Corporate Bond Fund allocation within the SmartPath Target Cash strategy in the years leading up to retirement with an allocation to the Mercer Diversified Retirement Fund. This change was made on 18 March 2024.
Further details about how your investments will change over time while invested in the SmartPath Target Cash strategy (following the above change) are available in the Fund’s Investment Guide. You can check if you are invested in the SmartPath Target Cash strategy by logging into Mercer OneView.
If you have any questions about Mercer OneView, please contact the Mercer OneView Contact Centre on 0345 600 0229 (9.00am to 5.00pm. Monday to Friday, except public holidays).
For current colleagues you can access Mercer OneView via the single sign on link in the My Quick Links section in Colleague Connect. For deferred members you can access OneView here, if you need to request a new log in passcode, please email: contact.mercer.com
We encourage you to regularly review your investment choices, particularly as you get closer to your target retirement age, to ensure they remain aligned with how and when you intend to access your pension savings. For details of the various options available to you at retirement, you should read the Fund’s Retirement Flexibilities Guide.
Additionally, in the lead up to retirement you will have access to the Pensions Decision Service (“PDS”), which will provide you with a dedicated Retirement Relationship Manager on hand to help with any questions you may have in the approach to retirement.
Important Notes
Managing your retirement savings properly is important and there is a lot of information for you to consider. Before you make any decisions about accessing your DC savings in the Fund, it is strongly recommended that you seek professional financial advice from a FCA-regulated financial adviser. You can find a regulated financial adviser in your area by visiting https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser. You should always check the charges and specialist areas of an adviser before appointing them. You can also contact the Mercer Private Wealth team here.
March 2024
The Trustee is committed to focusing on sustainability in the management and monitoring of your savings.
The Fund’s default strategy has also set a target of net-zero absolute carbon emissions by 2050. The interim plan to achieve this target aligns with targeting a 1.5°C limit on global temperature increases and the Paris Agreement’s ambitions.
For more details on the Trustee’s beliefs and policies regarding sustainability, please read:
October 2023
For current colleagues, the life assurance, which forms part of your overall Marsh McLennan benefits package, provides additional financial security for your family and other dependants should you pass away whilst employed by the Company. The Lump Sum Death Benefits Allowance (LSDBA) could affect your death in service benefits. The LSDBA is a limit set by HM Revenue & Customs (HMRC) on the amount of benefits that can be paid through a Registered arrangement without triggering a tax charge. The LSDBA is currently set at £1,073,100 and benefit above this would be taxed at the beneficiary’s marginal rate.
For more detail on how you may be impacted by this please find further resources below:
The LSDBA is a limit set by HM Revenue & Customs (HMRC) on the amount of benefit that can be paid through a Registered arrangement without triggering a tax charge. The LSDBA is currently set at £1,073,100 and benefit above this would be taxed at the beneficiary’s marginal rate.
For the purposes of the LSDBA charge calculation, on death your lump sum life assurance benefit would be included as well as any other lump sum benefits that would be payable from a Registered arrangement, such as the return of your Defined Contribution (DC) account from the MMC UK Pension Fund, as well as any other DC accounts you may have such as from any previous employment.
MMC’s default approach to managing the death in service benefits is to provide any lump sum life assurance benefit above £500,000 through a ‘non-registered or Excepted’ arrangement, benefits from which do not count towards the LSDBA. Two examples of how the LSDBA would apply based on MMC’s default approach are as follows:
| MMC Life Assurance benefit, as selected in Prosper: | MMC Pension Fund DC account: | DC account from previous employment: | Total benefit payable in the event of death: |
| £1,080,000 (18 x salary) | + £120,000 | + £50,000 | = £1,250,000 |
| Total benefit for LSDBA purposes: | £670,000* | ||
| Benefit exposed to LSDBA charge: | £nil | ||
| MMC Life Assurance benefit, as selected in Prosper: | MMC Pension Fund DC account: | DC account from previous employment: | Total benefit payable in the event of death: |
| £2,880,000 (16 x salary) | + £500,000 | + £150,000 | = £3,530,000 |
| Total benefit for LSDBA purposes: | £1,150,000* | ||
| Benefit exposed to LSDBA charge: | £76,900 | ||
For the avoidance of doubt, in the event of death, benefits through membership of MMC’s Defined Benefit (DB) arrangements are paid as pension income to beneficiaries rather than lump sums and do not count towards the LSDBA calculation.
If the default approach does not work for you then you can request to have all of your lump sum life assurance benefit provided via the Excepted/non-registered arrangement. Completion of a form is required to make the request; this can be found on our Forms page. If you are unsure of the approach you should take, you should take advice from an independent financial advisor. You can also contact the Mercer Private Wealth team here.
There are some circumstances where UK inheritance tax could be payable on benefits provided via a non-registered arrangement. Based on inheritance tax rates, law and HMRC confirmations applicable to deaths occurring prior to 1 April 2024 this tax charge would not be more than 6% of the lump sum death benefit paid. If any such UK inheritance tax were payable, it would be deducted from the lump sum benefit at or before the time of payment.
If you have been granted any form of HMRC protected tax-free cash (formerly Lifetime Allowance protection), such as Fixed Protection, and have already informed the MMC Benefits Team then no action is required. All lump sum life assurance benefits are automatically insured via MMC’s Excepted/non-registered arrangement if you have opted out of the MMC UK Pension Fund for pension savings tax reasons and currently receive a Non Pensionable salary Supplement (NPSS).
If you have not previously informed MMC that you have HMRC protection then you should do so immediately. Please send a copy of your HMRC protection certificate to UKIBenefits@mmc.com.
Should you wish to elect to have all your life assurance provided through the Excepted/non-registered arrangement, please complete and return the application form.
For any further questions, please click here to access FAQs or contact UKIBenefits@mmc.com.
May 2024
There are many tax advantages of contributing to the Fund, including tax relief on contributions and investments. Further details can be found here.
Some of our members may be affected by the HMRC limits in place on tax relief. There are limits on tax relief for contributions made in the tax year and contributions made throughout your lifetime.
We have produced a document which will help you understand if you are affected and what options MMC has to help you manage your tax position.
July 2023
The challenge for many is how do you know whether you are on track for the kind of lifestyle you would like when you come to retire and what can you do about it. In order to help with this the Pension and Lifetime Savings Association (the “PLSA”) has developed the Retirement Living Standards to explain what life in retirement looks like at three different levels and what a range of common goods and services would cost for each level. We have created this flyer to provide an introduction to the Retirement living Standards, to get you thinking about how much you will need in retirement and an explanation of the different sources of retirement income.
November 2022
From 6 April 2028, the government is changing the minimum age from which you can take retirements benefits from age 55 to age 57.
Although this change is not for nearly 6 years, you should take this opportunity to review your retirement plans, to ensure that you are aware of any impact on them.
You can find more information about this change on the gov.uk website here.
April 2022
There are many tax advantages of contributing to the Fund, including tax relief on contributions and investments. Further details can be found here.
Some of our members may be affected by the HMRC limits in place on tax relief. There are limits on tax relief for contributions made in the tax year and contributions made throughout your lifetime.
We have also produced a document which will help you understand if you are affected and what options MMC has to help you manage your tax position.
July 2023
The challenge for many is how do you know whether you are on track for the kind of lifestyle you would like when you come to retire and what can you do about it. In order to help with this the Pension and Lifetime Savings Association (the “PLSA”) has developed the Retirement Living Standards to explain what life in retirement looks like at three different levels and what a range of common goods and services would cost for each level. We have created this flyer to provide an introduction to the Retirement living Standards, to get you thinking about how much you will need in retirement and an explanation of the different sources of retirement income.
November 2022
From 6 April 2028, the government is changing the minimum age from which you can take retirements benefits from age 55 to age 57.
Although this change is not for nearly 6 years, you should take this opportunity to review your retirement plans, to ensure that you are aware of any impact on them.
You can find more information about this change on the gov.uk website here.
April 2022