Future service
refers to covered service under this plan since January 1, 1960. The monthly
benefit earned for each year of covered service is based on the following two
equations:
In the example
above, the $4,080.00 in contributions for that year generates a $61.20 monthly
income payable for life. Your total monthly benefit is the sum of the monthly
benefits earned each year since 1960 plus any past service, if applicable.
Please see Benefit
Statements
for an example of how a monthly benefit earned for each year of covered service
generates a total monthly benefit.
The factors that
determine your future service benefit are discussed below.
For
additional information about future service, please see Article 1.8
and Article 6.1.2.
Hourly
Contribution Rate
Signatory
employers are required to make an hourly contribution to this plan for each
compensable hour. The hourly contribution rate is determined by collective
bargaining and is subject to change. The Board of Trustees determines the
allocation of all fringe benefit contributions to the plans. Table 1 lists the hourly contribution rates from 1960-2004.
For
additional information about the hourly contribution rate, please see Article
1.4 .
Benefit Factor
Your total
hourly contributions for each year of covered service are multiplied by a
benefit factor which converts these contributions into a monthly benefit. Table
2 and Table 3 list the benefit factors from 1960-2004.
The benefit factor has varied during the history of this plan but is presently
set at 1.5%. The benefit factor is based on the investment performance
of the plan, employment and retirement trends experienced by the plan, and the
overall retirement and mortality experience of the plan. The benefit factor for
each upcoming plan year is determined by the Board of Trustees in consultation
with the plan’s actuary. The Trustees reserve the right to increase or
decrease the factor depending on the actuarial requirements of the plan.
On January 1, 1989, the plan was
amended to provide improved benefits for all vested carpenters. The improved
benefits established two sets of benefit factors. Both sets establish monthly
benefit levels from 1960 through 2004. Most carpenters who are currently active
in the plan qualify for the benefit factors in Table 2. However, please review
Table 2 and Table 3 to determine which factors apply to your employment
situation.
For
additional information about the benefit factor, please see Article 6.1.2.
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