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 $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? The Unit Multiplier is a factor that the Trust uses to calculate benefit levels. From time to time, the Trustees, with the help of a professional actuary, will determine the value of the Unit Multiplier, which 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 Attachment A for sample benefit level calculations.