Description of Participating Managing Director (PMD) Retiree Medical Program
This document outlines the retiree medical program for Participating Managing Directors (PMDs) of the firm. PMDs with at least eight years of service are eligible for retiree medical coverage for themselves and their dependents. Grandfathered PMDs (those who became PMDs on or before December 31, 2020) receive up to 100% subsidy for their own coverage, but no subsidy for dependents. Other PMDs must pay the full premium. Eligibility ends if a PMD is terminated for cause or joins a competitor. The program and its subsidies may be changed or ended at any time.
Exhibit 10.21
Description of PMD Retiree Medical Program
Under the retiree medical program as currently in effect, Participating Managing Directors (“PMDs”) who retire with eight or more years of service as PMDs are eligible to receive retiree medical coverage for themselves and their eligible dependents. The PMD retiree medical program currently provides a subsidy for such coverage of up to 75% of the applicable premium.
During 2020, the firm amended the PMD retiree medical program so that, effective January 1, 2022, individuals who became PMDs on or before December 31, 2020 (“Grandfathered PMDs”), and who retire or retired with eight or more years of PMD service, will be eligible for retiree medical coverage with a subsidy of up to 100% of the premium attributable to individual coverage for the PMD retiree, but without any subsidy for the premium attributable to covering the PMD’s covered dependents. PMDs other than Grandfathered PMDs no longer will receive a firm subsidy toward retiree medical coverage and will be required to pay 100% of the applicable premium for retiree and dependent coverage.
A PMD’s eligibility under the PMD retiree medical program generally terminates if the PMD engages in conduct constituting cause or if the PMD goes to work for a competitor. A PMD with less than eight years of service, or who goes to work for a non-competitor, may be eligible for retiree medical coverage but not the subsidy. The PMD retiree medical program, coverage and/or subsidy can be amended or terminated at any time as provided in the applicable plan documents.
