Retirement Payment Options

Under normal, early and disability retirement, your benefit amount is the balance of your individual account on the later of your retirement effective date or on your distribution
date(s). No benefit reduction is made for early retirement under this plan. Any non-periodic payment from this plan of less than ten years is subject to a 20 percent mandatory federal income tax withholding, unless it is rolled over to an Individual Retirement Account (IRA) or eligible retirement plan.

Your monthly income under the Carpenters Retirement Plan of Western Washington can be increased with the pension enhancement option available under this plan (please see Pension Enhancement Option).

For additional information about the benefit amount available under normal and early retirement, please see Article 4.1.

There are a variety of payment options available when you retire under this plan. Each of these payment options is described below. Your retirement benefits under this plan are taxable income.

Lump Sum Distribution

You may receive your total account balance in one lump sum payment. If you satisfy the eligibility requirements, this payment is mailed to you on the 25th of the month following receipt of your Election of Retirement Benefits form and coincides with receipt of your first check from the Carpenters Retirement Plan of Western Washington (if applicable).

For additional information about a total distribution, please see Article 4.2(f).

Deferred Distribution

You may defer distribution to a later date. On your future distribution date you may elect any one of the distribution options (except the deferred or split distributions) described in this section. During the deferral period, your account balance continues to experience investment earnings and losses based on the investment performance of the entire plan.

Split Distribution

You may receive a portion of your total account balance paid on the 25th of the month following receipt of your Election of Retirement Benefits form, with the balance paid in January of the following calendar year or later. This option may allow you to spread taxable income over two tax years. Until all of your funds are distributed to you, your account continues to experience investment earnings and losses based on the investment performance of the entire plan. If you die before the second payment is made, your designated beneficiary receives the second payment.

For additional information about a split distribution, please see Article 4.2(g).

Period Certain Payments

You may elect to have your benefit paid over a specified number of months. The monthly amount may vary from year to year depending on investment earnings or losses experienced by your remaining balance. If you die before all payments are made, your designated beneficiary receives any remaining monthly payments.

For additional information about period certain payments, please see Article 4.2(c).

Minimum Annual Payout

With a minimum annual payout, you receive a specified dollar amount each month until you exhaust your account balance. In the alternative, you receive a specified monthly benefit based on your account balance divided by your life expectancy. In both cases, the monthly amount may vary from year to year depending on investment earnings or losses experienced by your remaining balance. If you die before all payments are made, your designated beneficiary receives any remaining monthly payments.

For additional information about a minimum annual payout, please see Article 4.2(e).

Lifetime Annuity Income

You may elect to have your benefit paid to you as a lifetime monthly income. The Board of Trustees may purchase, on your behalf, a non-transferable annuity. The amount of your monthly benefit is based on your account balance on your retirement effective date as well as other parameters (including your age and life expectancy and the interest rate) assumed by the insurance company providing the annuity. The following two annuity options are available depending on your marital status when you retire:

Qualified Joint and Survivor Annuity

The standard form of payment for the married participant is a joint and survivor annuity. This annuity provides a monthly benefit for your life and, if you die before your spouse, 50 percent of that amount for the remainder of your spouse’s life. Your annuity income is based on your account balance on your retirement effective date.

For additional information about a qualified joint and survivor annuity, please see Article 4.2(b).

Single Life Annuity

The standard form of payment for the single participant is a single life annuity. This annuity provides a monthly income for your life. Your annuity income is based on your account balance on your retirement effective date.

For additional information about a single life annuity, please see Article 4.2(d).

Please contact the Retirement Department for assistance with the two annuity income options.