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Increased RMT Benefits Effective September 1, 2019

Started by eddie_engram, Monday July, 15, 2019, 11:00

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eddie_engram

Effective September 1, 2019, RMT Benefits will be increased. The following is a breakdown based on your Group.

Group A

The Unit Multiplier of the Plan (used to calculate monthly benefit levels) will increase from $.095 to $1.15 for all Covered Expenses.

Under the PREVIOUS Unit Multiplier ($0.95), your estimated benefit would be calculated as follows

Step 1:                  Convert payroll contributions to Active Service Units (ASU)
$69.23/pay period x 26 pay periods/year = $1799.98 per year
$1799.98/year ÷ $100/ASU = 18 ASU/Year

Step 2: Calculate the number of ASU in 10 Years
18 ASU x 10 years = 180 ASU

Step 3:                  Multiply number Active Service Units by Unit Multiplier (currently$0.95):
Monthly Benefit Level: 180 ASU x $0.95 = $171/month



Under the NEW Unit Multiplier ($1.15), your estimated benefit will not be calculated as follows

Example #1 - 10 years in Trust: Employee Jones participates for ten years, and the contribution rate is$69.23 per pay period for his entire employment. Employee Jones' monthly Benefit Level will be calculated as follows:

Step 1:                  Convert payroll contributions to Active Service Units (ASU)
$69.23/pay period x 26 pay periods/year = $1799.98 per year
$1799.98/year ÷ $100/ASU = 18 ASU/Year

Step 2: Calculate the number of ASU in 10 Years
18 ASU x 10 years = 180 ASU

Step 3:                  Multiply number Active Service Units by Unit Multiplier (currently$0.95):
Monthly Benefit Level: 180 ASU x $1.15 = $207/month


Employees employed on both September 1, 2009, and September 1, 2017, and for whom, contributions were made, and for whom Contributions ceased before the Employee met the Active Service requirement under Section 2.1(a)(1) of the Second Restated plan will receive a $2,850 lump sum.


Each Employee employed by the County on September 1, 2009, and who meet the Active Service requirement, will receive an additional 28.5 Active Service Units (added to the Active Service Units earned from monthly payroll Contributions during employment), funded by a lump sum County Contribution received during Trust startup.

Group B

The Maximum Monthly Benefit will increase from $40 to $70.


Note:

No Change to Benefit Levels for Eligible Retirees with Disability Prior to September 1, 2017. There will be no Benefit Level change for Eligible Retirees with a documented "Disability," as defined in Plan Section 1.11, and a disability retirement date from SCERA prior to September 1, 2017. Due to the date of their disability retirement, these Eligible Retirees are grandfathered to the prior flat benefit levels in effect before September 1, 2017. Implementing the new Unit Multiplier formula for these Eligible Retirees with a Disability would decrease their Benefit Level. Therefore, the Trustees have grandfathered these retirees to the prior benefit level calculation method, and there is no change under Plan Amendment No. 14 for these retirees.

Caveat:  These are examples.  The Trustees reserve the right to modify the Unit Multiplier (up or down) and the formula used to calculate Benefit Levels at any time for both existing and future Beneficiaries.  Such a modification is most frequently attributable to favorable or adverse demographic or financial experience of the Plan.  The Trustees work with a professional actuarial firm to determine the Unit Multiplier.  For more details, please contact the Trust Office.