Carpenters Retirement Plan
Article 1 - Definitions
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."
"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.
"Actuarial Equivalent" or "Actuarially Equivalent" shall mean, for determining Plan benefits, calculations made to produce equal present values.
1.3.1 Benefit Accruals on and After January 1, 2017. For benefit accruals earned on and after January 1, 2017, the determination of whether benefits are Actuarially Equivalent, including Actuarial Equivalence of the 50 percent, 75 percent, and 100 percent Joint and Survivor and Contingent Benefit Options, shall be based on the applicable mortality assumption prescribed by the Secretary of the Treasury under Code § 417(e)(3)(B) and the Hurdle Rate as described in Article 6.1.3(b)(1).
1.3.2 Benefit Accruals Prior to January 1, 2017. For benefit accruals earned prior to January 1, 2017, the determination of whether benefits are Actuarially Equivalent shall be made based on the 1984 Unisex Pension Mortality Table, and an interest rate of seven percent (7%). Actuarial reductions for the 50 percent, 75 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 applicable mortality assumption prescribed by the Secretary of the Treasury under Code § 417(e)(3)(B).
1.3.3 Assumptions for Purposes of Internal Revenue Code § 415 Limitations. Notwithstanding subsections 1.3.1 and 1.3.2, for distributions after December 31, 2003 and before January 1, 2006, the applicable interest rate assumption for adjusting benefits under Code § 415(b) in a form subject to Code § 417(e)(3) shall be the greater of 5.5% or the rate specified in Code § 417(e) for the fifth month preceding the stability period, which shall be the Plan Year, provided that amounts payable before January 1, 2005 shall not be less than the amount payable using the interest rate assumption in effect on December 31, 2003. For distributions after December 31, 2005, the applicable interest rate assumption for adjusting benefits under Code § 415(b) in a form subject to Code § 417(e)(3) shall be the greater of 5.5% or the rate that provides a benefit of not more than 105% of the benefit that would be provided if the applicable interest rate (as defined in § 417(e)(3)) were the interest rate assumption for the fifth month preceding the stability period, which shall be the Plan Year.
"Compensation" means an Employee's wages within the meaning of Internal Revenue Code § 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 § 6049(d) and § 6051(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).
"Combined Service Credit" shall mean the total of an Employee's Credited Service under this Plan and Reciprocal Service under Article 5.2.1. No more than one year of Combined Service Credit shall be counted for the benefit of any Employee in any calendar year.
"Computation Period" shall mean the Plan Year for all purposes.
"Covered Service" shall mean the Hours of Service of an Employee for which a contribution to the Retirement Plan is required to be made under the terms of a Collective Bargaining Agreement, or other written contribution agreement.
1.8.1 "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.
1.8.2 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.
1.8.3 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 periods 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 of Article 8.2.
1.8.4 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 Article 1.8.4 is four years.
This Article 1.8.4 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.
1.8.5 Effective April 1, 2009, an Employee shall receive one year of Credited Future Service for vesting purposes and to avoid a Break in Service (but not for benefit accrual purposes) for each consecutive Plan Year in which the Employee worked 1,000 hours or more in work of the type covered by a Collective Bargaining Agreement which is with an Individual Employer immediately preceding the date that Individual Employer first begins contributing to the Plan. An Employee is only entitled to Credited Future Service under this Article 1.8.5 if: (1) the Employee's Individual Employer first begins contributing to the Fund on or after April 1, 2009; (2) the Employee is employed by the Individual Employer on the date the Individual Employer first begins contributing to the Fund; and (3) the Employee earns 1,000 or more Hours of Service with that Individual Employer in the Plan Year in which the Individual Employer first begins contributing to the Plan, or in the immediately following Plan Year. The maximum years of service that can be earned under this Article 1.8.5 is four years. Credited Future Service earned under this Article 1.8.5 will not be used for purposes of determining whether an Employee qualifies for the Rule of 80 Early Retirement.
No more than one year of Credited Future Service will be counted under this Article 1.8 for the benefit of any Employee in a calendar year.
"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:
|Attained Age as of January 1, 1960||Maximum Years of Credited Past Service|
|55 and under||10|
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 on 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.
"Credited Service" shall mean Credited Past Service, if any, and Credited Future Service.
"Employer Contributions" shall mean the contributions that an Individual Employer is required to make to the Fund under the terms of a Collective Bargaining Agreement or under the terms of a written contribution agreement between an Individual Employer and the Trustees.
1.11.1 "Accruing Employer Contributions" shall mean Employer Contributions reduced by the following amounts:
- An amount recommended by the Plan actuary and approved by the Board of Trustees to fund the Rule of 80 surcharge for Hours of Service on and after June 1, 2000. The reduction shall be expressed as a cents per hour or percentage of contributions. Effective June 1, 2000, the Rule of 80 surcharge adopted by the Board is 16.7% which is applied to the Employer Contributions after the reduction under Article 1.11.1(b).
- 26% effective for Hours of Service on and after June 1, 2009, but not to exceed a reduction of $1.25 per hour; provided that for Hours of Service worked under a public job or project agreement and performed at a pre-determined and/or prevailing wage rate established under the federal Davis-Bacon Act or Washington State, Prevailing Wage on Public Works statute, this Article 1.11.1(b) is effective on the earlier of the date the rate is reset to the rate maintained by the Master Agreement or June 1, 2010.
"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.
"Hour of Service" shall mean each hour for which an Employee is paid or entitled to payment for Covered Service by an Individual Employer on account of: (1) performance of duties for the Individual 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 Individual 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 Regulation §2530.200b-2(b). Hours shall be credited to the applicable Computation Period in accordance with DOL Regulation §2530.200b-2(c).
"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 mortality table and applicable interest rate specified in Internal Revenue Code § 417(e)(3). The applicable interest rate under Internal Revenue Code § 417(e)(3) shall be that specified for the second month preceding the Plan Year in which the lump sum value is determined.
"Non-Covered Service" shall mean service with one of the Individual Employers who is required to make contributions to the Fund but in an employment category which is not covered by a Collective Bargaining Agreement or written contribution agreement.
"Participant" shall mean an Employee who participates in the Plan pursuant to Article 3.1.
"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.
"Plan Year" shall mean the period from January 1 through December 31 of each year.
"Reciprocal Credited Service" or "Reciprocal Service" shall mean such form of service credit as shall have been accumulated by an Employee under a Reciprocal Plan pursuant to Article 5.2. For purposes of determining eligibility for a Pro Rata Reciprocal Pension under Article 5.2 "Reciprocal Credited Service" or "Reciprocal Service" includes hours transferred by this Plan to a Reciprocal Plan in a money-follows-the-man transfer under Article 5.3 for which credit is provided by the Reciprocal Plan, and such hours are not treated as Credited Service under this Plan. 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.
"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.
"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.
"Retirement Plan" shall mean this Carpenters Retirement Plan of Western Washington.
"Trust" shall mean that Trust originally created and established on January 1, 1960, as amended.
"Union" shall mean the Pacific Northwest Regional Council of Carpenters and its Union Locals who are signatory to a Collective Bargaining Agreement.
Last Updated: 01/09/2018