Northwest Carpenters Retirement Plan

Normal Retirement 

Eligibility and Retirement Date

To be eligible for normal retirement you must be:

  • Vested in this plan;
  • Age 65 or older; and
  • You must cease working in the building and construction industry in the geographic area covered by this plan for 40 hours or more during a calendar month or during a four- or five-week payroll period ending in a calendar month.

Your retirement date is the first of any month following your 65th birthday and satisfaction of the eligibility requirements.

  • For additional information about normal retirement eligibility, please see Article 4.1.

Monthly Benefit

Under normal retirement, your monthly income is your monthly traditional income benefit plus your monthly sustainable income benefit less the appropriate reduction for a joint and survivor benefit (if applicable). The traditional income benefit joint and survivor factors are listed in Table 7. The sustainable income benefit joint and survivor factors are subject to change each year and are available on the Carpenters Trusts website: www.carpentersbenefits.org.

If you retire after age 65, your monthly traditional income benefit is increased by one-half percent for each month your retirement is delayed after age 65. Your monthly sustainable income benefit is increased by one-third percent for each month your retirement is delayed after age 65.

The examples on the next page illustrate how to calculate a normal retirement income.

Retirement benefits are taxable income. Carpenters Trusts will provide you with a Form 1099-R in late January of each year for the upcoming April 15 tax deadline.

  • For additional information about the monthly benefit available under normal retirement, please see Article 6.1.

Example 1

If you are single and retire at age 65 in 2018 under normal retirement with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit?

Traditional Income Benefit
$2,000.00

Initial Sustainable Income Benefit
$100.00

Total Initial Monthly Benefit
$2,000.00 + $100.00 = $2,100.00

In this example, your $2,100.00 monthly benefit is unreduced because there is no early retirement reduction with normal retirement and no reduction for a survivor benefit with a single life benefit. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement. Your traditional income benefit remains unchanged.

Example 2

If you are married and retire at age 65 in 2018 under normal retirement with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit? Your spouse is two years younger than you and you elect a 50% joint and survivor benefit:

Traditional Income Benefit
$2,000.00 x 0.870 = $1,740.00

Initial Sustainable Income Benefit
$100.00 x 0.906 = $90.60

Total Initial Monthly Benefit
$1,740.00 + $90.60 = $1,830.60
$1,830.60 x 0.50 = $915.30

In this example, your $2,000.00 traditional income benefit is reduced by $260.00 for a 50% joint and survivor benefit (please see Table 7). Your initial $100.00 sustainable income benefit is reduced by $9.40 for a 50% joint and survivor benefit (please see www.carpentersbenefits.org). This provides you and your spouse with a $1,830.60 monthly benefit for the first year of retirement and with a monthly benefit for the rest of your spouse's life equal to 50% of your total monthly benefit if you predecease your spouse. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement and during your spouse's life if you predecease your spouse. Your traditional income benefit remains unchanged.

Example 3

If you are single and retire at age 67 in 2018 under normal retirement with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit?

Traditional Income Benefit
$2,000.00 + 12% = $2,240.00

Initial Sustainable Income Benefit
$100.00 + 8% = $108.00

Total Initial Monthly Benefit
$2,240.00 + $108.00 = $2,348.00

In this example, your $2,000.00 traditional income benefit is increased by 12% and your $100.00 sustainable income benefit payable in the year you retire is increased by 8% because you are retiring two years after your normal retirement age of 65. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement. Your traditional benefit remains unchanged.

Minimum Distribution Requirements

Under no circumstances can you postpone your retirement past April 1 of the calendar year immediately following the calendar year in which you attain age 70½. This is known as the Internal Revenue Service (IRS) "70½ Rule." If you have not retired before this age requirement, Carpenters Trusts will automatically send you a Carpenters Retirement Plan Explanation of Payment Options and Election of Retirement Benefits form and related documents. You will be paid a minimum annual distribution at that time.

  • For additional information about minimum distribution requirements, please see Article 6.12.

Last Updated: 04/20/2023