Introduction

There are a variety of optional payment forms available to you. Your options are dependent on your martial status, if married, your spouse's agreement, and your needs and preferences for arranging your retirement income. All forms (excepting periodic payments scheduled to last more than 10 years) are subject to mandatory 20% Federal Income Tax withholding unless they are rolled over into an IRA account.

Pension Enhancement Option

The pension enhancement option allows you to add a minimum of $10,000 of your Individual Account balance over into the Carpenters Retirement Plan. This will increase your monthly payment under the Carpenters Retirement Plan by an actuarially calculated amount. To review the advantages of this option, please view the SPD.

Lump Sum Distribution

This is a 100% cash out of your account

Deferred Distribution

You may defer your distribution for personal or tax reasons. Meanwhile, your individual account will continue to participate in the investment experience of the Plan.

Split Distribution

You may opt to receive a portion of your account balance in the current year and the remainder in January of the following year or later. Your remaining account balance will continue to participate in the investment of the Plan.

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.

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.

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.

Qualified Joint & Survivor Annuity

Federal law mandates that the default form of payment for the married participant is a joint and survivor annuity. (Although this is the default, most married couple elect another form of payment.) 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.