Description of PMD Retiree Medical Program as of December 31, 2021
This document describes the retiree medical program for Participating Managing Directors (PMDs) as of December 31, 2021. PMDs with at least eight years of service are eligible for retiree medical coverage for themselves and their dependents, with a subsidy of up to 75% of the premium. For those who became PMDs on or before December 31, 2020, the subsidy increases to 100% for individual coverage starting January 1, 2022, but does not cover dependents. Eligibility can be lost for certain conduct or employment with competitors, and the program may be changed or ended at any time.
Exhibit 10.20
Description of PMD Retiree Medical Program
Under the retiree medical program in effect as of December 31, 2021, 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 provides, as of December 31, 2021, 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.
