Individual Account Pension Plan

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.

Key Point

Among the retirement payment options available to you are several which leave a portion of your account invested in this plan. Your account is not invested in a more conservative manner when you elect one of these payment options. The plan’s investments consist of a mix of stocks, bonds and real estate designed to produce growth and income over a period of time. This mix involves some investment risk which means the value of your account (and therefore the size of your monthly benefit or other future distribution) may increase or decrease.

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).

Key Point

If you retire on or after January 1, 2001, you can use all or a portion of your account balance (but not less than $10,000) in the Carpenters Individual Account Pension Plan to increase your monthly benefit under the Carpenters Retirement Plan. Please see Pension Enhancement Option for details.

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.

Helpful Hint

If you need greater payment flexibility than provided for by the distribution options available under this plan, you may wish to roll your account into an Individual Retirement Account (IRA) or eligible retirement plan that provides the needed flexibility.

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).

Helpful Hint

If you elect one of the periodic payment options below (except one of the two annuity income options), you may elect, at any time, to cash out your remaining account balance. Please contact the Retirement Department for the appropriate application. This process may take as long as 60 days.

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.

Key Point

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.

Retirement Payment Options