Your employer pays the premium for your membership in Benefits for Life, formerly known as the Retirement/Death Benefit Plans. The premium amount is equal to 10% of your annual compensation (see box below).

Premiums are based solely on your annual compensation as reported to MMBB each year. Therefore, you need to report changes in your compensation as soon as possible. Failing to do so will have an adverse effect on the level of plan benefits you receive.

As a plan member, a premium equal to 10% of your annual compensation is paid as a Benefits for Life premium. Of that 10%, 7% goes into your Retirement Plan account. The remaining 3% is used to provide disability and death benefits, as well as an administrative fee.

All money contributed to your Retirement Plan account purchases accumulation units for you. Accumulation units are like shares in a mutual fund. Each unit (or share) has a dollar value, which will fluctuate daily based on investment gains and losses.

Assume your annual compensation is $40,000 and the accumulation unit value, which changes daily, is $100 when your monthly premium payment is received. The number of units purchased with that payment for your account would be:

• $40,000 multiplied by 7% = $2,800
  
  
• $2,800 divided by 12 = $233.33
  
  
• $233.33 divided by the $100 = 2.33 units purchased
  

The number of units purchased each month will be based on the unit price in effect when the payment is received.

As more money is contributed to your account each month, you accumulate more units. As those units grow in value through investments, so does the value of your Retirement Plan account.