Article 1 – Definitions

1.1 Terms Common to the Trust Agreement

Whenever the terms “Collective Bargaining Agreement,” “Individual Employer,” “Employee,” “Associate Employee,” “Fund,” and “Trustees” are used herein, they shall have the meanings given to these terms in the Trust Agreement.

Except where otherwise indicated, the words “Employees” and “Associate Employees” shall have the same meaning in administrating the Plan, except where otherwise specifically provided as to “Associate Employees.”

1.2 Union

“Union” shall mean the Pacific Northwest Regional Council of Carpenters and its Union Locals who are signatory to the Collective Bargaining Agreement.

1.3 Retirement Plan

“Retirement Plan” shall mean this Carpenters Retirement Plan of Western Washington.

1.4 Employer Contributions

“Employer Contributions” shall mean the contributions that an Individual Employer is required to make to the Fund under the terms of the Collective Bargaining Agreement.

1.5 Hour of Service

“Hour of Service” shall mean each hour for which an Employee is paid or entitled to payment by an Individual Employer under the terms of the Collective Bargaining Agreement, on account of: (1) performance of duties for the Employer; (2) non-performance of duties due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence; and (3) an award of back pay, irrespective of mitigation of damages, agreed to by the Employer. Hours shall not be credited under both (3) and (1) or (2). Hours of Service shall be determined on the basis of actual hours for which the Employee is paid or entitled to payment. Notwithstanding the foregoing, no more than 501 Hours of Service shall be credited to an Employee for any single continuous period during which the Employee performs no duties. Hours for non-performance of duties shall be credited in accordance with DOL Regulations Section 2530.200b-2(b). Hours shall be credited to the applicable Computation Period in accordance with DOL Regulations Section 2530.200b-2(c). See DOL Regulations Section 2530.200b-2.

1.6 Covered Service

“Covered Service” shall mean work subject to the Collective Bargaining Agreement, or a written contribution agreement for which a contribution to this Retirement Plan is required on behalf of the Employee.

1.7 Non-Covered Service

“Non-Covered Service” shall mean service with one of the Employers who is required to make contributions to the Fund but in an employment category which is not covered by the Collective Bargaining Agreement.

1.8 Credited Future Service

1. “Credited Future Service” shall mean the years of service credited to any Employee after January 1, 1960. From January 1, 1960 through December 31, 1964, an Employee will be credited with one-half of a year of Future Service for any calendar year in which he has at least 500, but less than 1,000 Hours of Service, and one year of Future Service for any calendar year in which he has 1,000 or more Hours of Service. On or after January 1, 1965, an Employee will be credited with one-half of a year of Future Service for any calendar year in which he has at least 500, but less than 750 Hours of Service, and three-quarters of a year of Future Service for any calendar year in which he has at least 750, but less than 1,000 Hours of Service, and one year of Future Service for any calendar year in which he has 1,000 or more Hours of Service. An Employee will receive no credit for Future Service in a calendar year in which he has less than 500 Hours of Service.
   
   
2. Effective January 1, 1968, after an Employee has reached his Normal Retirement Date, and prior to his actual retirement, he may continue to accumulate Credited Future Service as a result of Covered Hours of Service.
   
   
3. After January 1, 1976, or the Unit Entry Date, if later, an Employee shall also be entitled to a year of Credited Future Service for vesting purposes and to avoid a Break in Service (but not for benefit accrual purposes) for each year of Non-Covered Service with any Employer required to make contributions under this Plan, if the service is contiguous. Non-Covered Future Service is contiguous if (1) the Non-Covered Service precedes or follows Covered Service and (2) no quit, discharge, or retirement occurs between such Covered Service and Non-Covered Service.
   
   Contiguous Non-Covered Service may be used to satisfy the requirement of 750 Hours of Service in this Plan in the three (3) consecutive Plan Year period immediately preceding an Employee’s Special Early or Rule of 80 Early Retirement Dates under Articles 4.2.2 and 4.2.3, an Employee’s Disability Retirement Date under Article 4.3, or for the Pre-retirement Survivor Benefit under Article 8.2.
   
   
4. An Employee with at least one (1) previous year of service in this Plan shall also be entitled to Credited Future Service for vesting purposes and to avoid a Break in Service (but not for benefit accrual purposes), for service under a residential bargaining agreement that does not require contributions to this Plan, if the Employer is required to make contributions on behalf of the Employee for that service to the Carpenters Health and Security Plan of Western Washington. The amount of service earned in this Plan will be equal to the Hours of Service earned in the Health and Security Plan.
   
   The maximum years of service that can be earned under this sub-section (d) is four.
   
   This subsection (d) will be effective for retirements with an Annuity Starting Date on or after January 1, 1995, for service rendered prior to or after January 1, 1995.

1.9 Credited Past Service

“Credited Past Service” shall mean the number of completed whole years of continuous service rendered by an Employee immediately prior to January 1, 1960, up to the maximum determined by his age in accordance with the following table:

Subject to such maximum, an Employee will be entitled to Credited Past Service for each calendar year during his most recent period of continuous service in which he was employed for 500 or more Hours of Service. The continuous service of an Employee will be considered to have been broken in any calendar year in which he had less than 500 Hours of Service. For purposes of this Article 1.9 and to the extent required by applicable law, periods of service with the Armed Forces of the United States may also be used to establish continuous service or to prevent a break in continuous service. For the purpose of substantiating entitlement to Credited Past Service, the Trustees shall consider all credible evidence thereof presented by the Employee, and may consider proof of the Employee’s continuous dues paid membership in the Union as evidence of such continuous service during a particular calendar year.

In order for an Employee to be entitled to any Credited Past Service, Employer Contributions must have been made in his behalf for an aggregate of at least 750 hours of covered service under one or more of the following trusts, namely the Carpenters Health and Security Trust Fund, the Home Builders and Carpenters Health and Security Trust Fund, the Home Builders Security Trust Fund of the State of Washington, and the AGC Security Plan during the three calendar years of 1957, 1958 and 1959.

1.10 Credited Service

“Credited Service” shall mean Credited Past Service, if any, and Credited Future Service.

1.11 Computation Period

“Computation Period” shall mean the Plan Year for all purposes.

1.12 Plan Year

“Plan Year” shall mean the period from January 1 through December 31 of each year.

1.13 Reciprocal Pensions

“Reciprocal Pensions” shall mean the benefits provided under Article 5 hereto for Employees whose work has been divided among areas with which the Carpenters Retirement Trust of Western Washington has a subsisting “Reciprocal Pension Agreement,” providing for some form of reciprocity in the accumulation of Pension Credit or Service Credit or in the transfer of contributions.

1.14 Reciprocal Plan

“Reciprocal Plan” shall mean any other pension plan which is a party to a “Reciprocity Agreement” and which has been recognized by the Board of Trustees.

1.15 Reciprocal Credited Service

“Reciprocal Credited Service” or “Service Credit” shall mean such form of service credit as shall have been accumulated by an Employee under a Reciprocal Plan pursuant to Article 5.2. The Trustees shall compute Reciprocal Credited Service on the basis of that credit which has been earned and credited under the Reciprocal Plan and certified by the Reciprocal Plan to the Trustees of this Plan.

1.16 Combined Service Credit

“Combined Service Credit” shall mean the total of an Employee’s Credited Service under this Plan and Reciprocal Service Credit. No more than one year of Combined Service Credit shall be counted for the benefit of any Employee in any calendar year.

1.17 Plan Administrator

“Plan Administrator” shall mean the Board of Trustees under the Trust Agreement. The Trustees will employ an administrator to assist them in administering the Plan.

1.18 Trust

“Trust” shall mean that Trust originally created and established on January 1, 1960, as amended.

1.19 Actuarial Equivalent

“Actuarial Equivalent” shall mean, for determining plan benefits, calculations made to produce equal present values based on the 1984 Unisex Pension Mortality Table, and an interest rate of seven percent(7%). Actuarial reductions for the 50 percent, 66 2/3 percent, and 100 percent Joint and Survivor and Contingent Benefit Options are explicitly stated in an Appendix to the Plan. The mortality table applicable for adjusting benefits or limitations under Internal Revenue Code (Code) § 415(b)(2) and for determining the present value of plan benefits under Code § 417(e)(3) shall be the mortality table provided in Revenue Ruling 2001-62. The applicable interest rate for determining the present value of benefits for lump sum settlements shall be the interest rate of Code § 417(e)(3), for the fifth month preceding the stability period, which shall be the plan year.

1.20 Lump Sum Present Value

“Lump Sum Present Value” shall be determined using the 1984 Unisex Pension Mortality Table and the applicable interest rate, equal to the rate which would be used by the Pension Benefit Guaranty Corporation in valuing a Lump Sum Distribution for a plan terminating on January 1 of the year of determination. In no event shall the value of the lump sum be less than that calculated using the applicable interest rate i.e., the annual rate of interest on 30-year Treasury securities for the second month preceding the Plan year in which the lump sum value is determined, using the mortality table described in Internal Revenue Service Rev. Rul. 95-6, and making the determination in accordance with Section 417(e) of the Internal Revenue Code.

1.21 Participant

“Participant” shall mean an Employee who participates in the Plan pursuant to Article 3.1.

1.22 Annuity Starting Date

“Annuity Starting Date” shall mean the first day of the first period for which an amount is payable as an annuity, or in the case of a benefit not payable as an annuity, the first day on which all events have occurred which entitle the Employee to such benefit. Notwithstanding the foregoing, in the case of an Employee retired on a Disability Retirement, the “Annuity Starting Date” shall mean the date the Employee attains age 65.

1.23 Highly Compensated Employee

“Highly Compensated Employee” for purposes of complying with nondiscrimination provisions under Internal Revenue Code § 401(a)(4) and § 410(b), shall mean a non-collectively bargained Employee who during the Plan Year being tested: (a) is a five percent owner at any time during the year or the preceding year; or (b) for the preceding year, had compensation in excess of $85,000 (adjusted under Internal Revenue Code § 414(q)). The Plan shall use January 30th, as a snapshot day, for purposes of complying with the nondiscrimination provisions and determining who is Highly Compensated.

1.24 Compensation

“Compensation” means an Employee’s wages within the meaning of Internal Revenue Code Section 3401(a) and all other payments of compensation to an Employee by the Individual Employer (in the course of an Individual Employer’s trade or business) for which the Individual Employer is required to furnish the Employee a written statement under Code Sections 6049(d) and 6051(a)(a).

“Compensation” shall also include elective deferrals defined in Internal Revenue Code § 402(g)(3), including elective deferrals under § 401(k), § 402(e)(3), § 402(h), § 403(b) or § 408(p)(2)(A)(i), elective contributions or deferrals not included in gross income under Internal Revenue Code § 125 and § 457, and elective reductions under Internal Revenue Code § 132(f)(4).