Last Updated on April 17, 2024 by Ben

Merck Retirement

Whenever you want to enhance your retirement income, Merck Retirement offers a variety of unique, flexible, and proven retirement plans. Merck knows that no two people are alike, so their programs are designed concerning your specific needs. By understanding your goals, we can put together a retirement plan that will enable you to maintain your identity, protect your lifestyle, and ensure your well-being throughout your retirement years.


ahg top banner

Separation Program Overview

Who can participate? Any employee of Merck worldwide who has been employed with the company for one year or longer and has at least ten years of service at the time of separation may be eligible to participate.

Terminated Vested Participants

If you are a terminated vested participant (TEPP), you may be eligible to receive certain benefits and payments upon separation. (The amount you receive will be based on the number of your “service years”). For example, you may be able to choose to receive a severance payment (salary or hours paid instead of notice or separation pay) or a payment from purchasing retirement, pension, or health care plans.


Participants who are no longer employed (e.g., retired) may be eligible to receive payments. However, there are no guarantees that you will receive any payments. If you have a terminated or early retirement, you may still be eligible to receive payments.


ahg mid banner

Separation Program—Pension Bridge Pay

Bridge Pay Bridge pay is the payment made during your last year of employment at Merck, and it is meant to help you transition to your new life stage and is paid in addition to your regular salary. Typically, your annual salary will be divided into a “basic salary” and a “benefit allowance.” 

✅  Your “basic salary” will serve as the basis for your separation pay. 

✅  Your “benefit allowance” will be used to provide you with the opportunity to purchase your vested benefits at the time of your separation. 

The benefit allowance is non-refundable. You do not receive any benefit allowance if you choose to retire. Bridge Pay (Benefit Allowance) The benefit allowance will be available in your separation agreement. 

In addition, the benefit allowance will show up on your W-2. You will need to list down or itemize your deductions for taxes, and you can include the benefit allowance as a deduction.

Separation Program—Rule of 85 Transition Benefit Transition Benefit

Merck offers a variety of transition benefits to help you with expenses such as relocation, finding a new job, or other life events. Your transition benefit will be awarded to you in your separation agreement, and you will receive an explanation of your transition benefit in your separation materials.

Retirement Plan—Other Information

✅  Merck Deferral Program 

If you are a participant in the Merck Deferral Program, you may continue to accrue contributions to your retirement plan. These contributions are made on your behalf and are invested according to the plan’s investment options. You may choose to defer your contributions until you are separated from the company, and you may decide to make a “series of investments” into your retirement plan. 

✅  Sales Incentive Plan 

There may be opportunities available that contribute to your bottom line. The Sales Incentive Plan gives you a chance to earn higher sales volumes and commissions. These incentives are awarded based on consistently meeting or exceeding sales volume and commission performance goals. 

✅  Savings Plan 

Your savings plan is a 401(k) plan that allows you to save pre-tax dollars that will be invested and ultimately compensate you at a specified future date. You can participate in the plan during your employment with the company. 

ahg top banner

Final Thought – Merck Retirement

At Merck knows that employees have various needs, preferences, and life stages. As you grow into Merch Retirement, it will match your unique interests to provide the best possible experience for yourself! Whether you are a new employee, a valued employee, or a retiree, they can help you select a retirement plan that will fit your life stage and budget.

Scroll to Top