Summary Plan Description
Future Service
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:
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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.
Key Point
Your total monthly benefit available at retirement is the sum of the monthly benefits you earn each year you work in covered service in this plan. In the example above, $61.20 was earned during one year of covered service in this plan. If you worked for 20 years with the same variables, the sum of those 20 years would generate a total monthly benefit of $1,224.00.
20 Years x $61.20 Per Year = $1,224.00 Total Monthly Benefit
Of course, the annual benefit earned each year varies depending on the number of hours you work, the hourly contribution rate and the benefit factor. These variables 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.
Key Point
The benefit factor is presently set at 1.5%. The benefit factor for the upcoming plan year is determined by the Board of Trustees in consultation with the plan’s actuary. 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.
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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Life Events
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