How is the monthly benefit level calculated?

  • What is an Active Service Unit (ASU)? An Active Service Unit (ASU) is a factor used to calculate the monthly benefit level for an Eligible Retiree.  The Trust will credit a participant with one ASU for each monthly $50 contribution that the Trust has received on the participant’s behalf over the duration of his/her career.  For example, if the participant’s Association has negotiated a monthly contribution of $150, he/she will receive 3 ASUs for each monthly contribution.
  • What is the Unit Multiplier (UM)? The Unit Multiplier is a factor that the Trust uses to calculate benefit levels.  The UM is set from time to time by the Trustees, with the help of a professional actuary, and is based on demographic and financial data.
  • How is the Eligible Retiree’s “benefit level” calculated? An Eligible Retiree’s “benefit level” is the maximum amount that he/she may receive in monthly reimbursement benefits from the Trust.  The benefit level for each Eligible Retiree is calculated by multiplying the total number of ASUs he/she has accumulated by the Unit Multiplier, currently $0.77.  The benefit level will change from time to time.  See Appendix A for sample benefit level calculations.