A year ago, February: Got the m/h out for a trip south and west to Wadena (about 2 hrs), while it was warming up in the driveway, my wife attempted to back it up-no reverse gear!! I did all the troubleshooting, called Allison, confirmation that the reverse gear was toast (96k mi. on m/h). I called and web searched for an affordable replacement, Mills Big Truck/Ford in Brainerd, MN was able to get me a factory rebuilt w/12 month warranty for $1500.00 plus tax and shipping. I spent a good part of May (and around $1800.00)in the r/r of the unit.I also did a complete brake job and replaced a few tires at this time, so my final bill ran about $2900.00 on completion.
For everybody that has an Allison 542, be aware that if you hear a funny noise in reverse, you'll lose the reverse gear (mine took about 6k mi. after the noise before it was gone). Allison no longer makes or rebuilds the 542 series due to this problem, the 545 which I now have is the direct bolt in replacement, it was an option when the 542 was installed, but most m/h manufacturers as well as school bus and trash truck mfg all went the cheap route with the 542. The reverse gears are smaller on the 542 (less meat on the teeth etc.),so with the heavy loads required to move, eventually all the teeth strip, and you have no reverse.