Service-Related Issues

If you are new to this plan and not vested . . .

• The Carpenters Individual Account Pension Plan is one of two pension plans provided as part of your fringe benefit package. The other plan is the Carpenters Retirement Plan.
• This plan is a “defined contribution plan” which means your benefit is based on the amount in your account when you retire.
• This plan has a five-year vesting requirement which means you must have five years of credited service in this plan or in combination with one or more reciprocal plans without incurring a permanent break in service.
• If you cannot work 500 or more hours in a given year, it is important for you to understand the break in service rules. You can permanently forfeit contributions and investment earnings if you don’t vest within a certain period of time.
• Once you are vested, your retirement benefit cannot be forfeited.
• You can increase your savings in this plan with 401(a) supplemental contributions. Supplemental contributions are fully vested beginning with the initial contribution.
• Retirement benefits are not available until you are age 55 or older, except for qualified permanent disabilities and preretirement death benefits.

If you are vested in this plan . . .

• The more you work for a contributing employer, the greater your individual account balance at retirement. The more 401(a) supplemental contributions made, the greater your individual account balance at retirement.
• Your account balance is also based on the investment performance of the plan during your career.
• The income provided by the two retirement plans, Social Security and your personal savings should form the foundation of your retirement income.
• You are strongly encouraged to maximize 401(a) supplemental contributions and personal savings to compensate for the uncertainties associated with inflation and the cost of retiree medical care.

If you are vested and age 55 or older . . .

• Benefits are payable under this plan if you are vested in this plan and age 55 and older.
• You must retire under the Carpenters Individual Account Pension Plan and the Carpenters Retirement Plan at the same time.
• Your total account balance as of the later of your retirement effective date or the distribution date(s) is the amount available to you. There are a number of income options to choose from depending on your specific needs.