Northwest Carpenters Retirement Plan

Regular Early Retirement 

Eligibility and Retirement Date

To be eligible for regular early retirement you must be:

  • Vested in this plan;
  • Age 55 through age 64; and
  • No longer working in any type of work for an employer that contributes to the plan.

Prior to January 1, 2017, you were required to satisfy the five-year vesting rule to be eligible for regular early retirement. Effective January 1, 2017, you may qualify for regular early retirement if you satisfy the three-year vesting rule.

Your retirement date cannot be earlier than the later of (1) the first of any month following your 55th birthday, or (2) the first of the month following receipt of your completed Application For Retirement Benefits and Carpenters Retirement Plan Explanation of Payment Options and Election of Retirement Benefits form and related documents.

  • For additional information about regular early retirement eligibility, please see Article 4.2.1.

Monthly Benefit

Under regular early retirement, your monthly income is your monthly traditional income benefit plus your monthly sustainable income benefit, less the appropriate reduction for early retirement, less the appropriate reduction for a joint and survivor benefit (if applicable). Your total monthly benefit is reduced because your monthly payments will begin earlier and will likely be paid for a longer period of time than if you had retired under normal retirement. Traditional regular early retirement reduction factors are listed in Table 3. The 2018 sustainable regular early retirement reduction factors are listed in Table 4. These factors are subject to change each year and are available on the Carpenters Trusts website: www.carpentersbenefits.org. Traditional joint and survivor factors are listed in Table 7. Sustainable joint and survivor factors are subject to change each year and are available on the Carpenters Trusts website: www.carpentersbenefits.org. The examples below illustrate how to calculate a regular early 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 regular early retirement, please see Article 6.2.1.

Example 1

If you are single and retire at age 60 in 2018 under regular early 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 x 0.850 = $1,700.00

Initial Sustainable Income Benefit
$100.00 x 0.710 = $71.00

Total Initial Monthly Benefit
$1,700.00 + $71.00 = $1,771.00

In this example, your $2,000.00 traditional income benefit is reduced by $300.00 for regular early retirement at age 60 (please see Table 3). Your initial $100.00 sustainable income benefit is reduced by $29.00 for regular early retirement at age 60 (please see Table 4). This provides you with an initial lifetime monthly benefit of $1,771.00. 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 60 in 2018 under regular early 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 0.850 = $1,700.00
$1,700.00 x 0.870 = $1,479.00

Initial Sustainable Income Benefit
$100.00 x 0.710 = $71.00
$71.00 x 0.906 = $64.33

Total Initial Monthly Benefit
$1,479.00 + $64.33 = $1,543.33
$1,543.33 x 0.50 = $771.66

In this example, your $2,000.00 traditional income benefit is reduced by $300.00 for regular early retirement at age 60 (please see Table 3) and by $221.00 for a 50% joint and survivor benefit (please see Table 7). Your initial $100.00 sustainable income benefit is reduced by $29.00 for regular early retirement at age 60 (please see Table 4) and by $6.67 for a 50% joint and survivor benefit (please see www.carpentersbenefits.org). This provides you with an initial lifetime monthly benefit of $1,543.33 and a monthly benefit for the rest of your spouse's life of 50% of your 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 benefit remains unchanged.

Table 3
Regular Early Retirement Reduction Factors For All Years
Traditional Income Benefits

If you are vested but do not qualify for the special early retirement reduction factors, you must use the reduction factors presented in this table.

If you qualify for regular early retirement, select the year and month closest to your age on your retirement effective date. Then multiply your monthly benefit by the corresponding reduction factor.
Age – Factor
55 – 0 55.00
55 – 1 55.50
55 – 2 56.00
55 – 3 56.50
55 – 4 57.00
55 – 5 57.50
55 – 6 58.00
55 – 7 58.50
55 – 8 59.00
55 – 9 59.50
55 – 10 60.00
55 – 11 60.50
56 – 0 61.00
56 – 1 61.50
56 – 2 62.00
56 – 3 62.50
56 – 4 63.00
56 – 5 63.50
56 – 6 64.00
56 – 7 64.50
56 – 8 65.00
56 – 9 65.50
56 – 10 66.00
56 – 11 66.50
57 – 0 67.00
57 – 1 67.50
57 – 2 68.00
57 – 3 68.50
57 – 4 69.00
57 – 5 69.50
57 – 6 70.00
57 – 7 70.50
57 – 8 71.00
57 – 9 71.50
57 – 10 72.00
57 – 11 72.50
58 – 0 73.00
58 – 1 73.50
58 – 2 74.00
58 – 3 74.50
58 – 4 75.00
58 – 5 75.50
58 – 6 76.00
58 – 7 76.50
58 – 8 77.00
58 – 9 77.50
58 – 10 78.00
58 – 11 78.50
59 – 0 79.00
59 – 1 79.50
59 – 2 80.00
59 – 3 80.50
59 – 4 81.00
59 – 5 81.50
59 – 6 82.00
59 – 7 82.50
59 – 8 83.00
59 – 9 83.50
59 – 10 84.00
59 – 11 84.50
60 – 0 85.00
60 – 1 85.25
60 – 2 85.50
60 – 3 85.75
60 – 4 86.00
60 – 5 86.25
60 – 6 86.50
60 – 7 86.75
60 – 8 87.00
60 – 9 87.25
60 – 10 87.50
60 – 11 87.75
61 – 0 88.00
61 – 1 88.25
61 – 2 88.50
61 – 3 88.75
61 – 4 89.00
61 – 5 89.25
61 – 6 89.50
61 – 7 89.75
61 – 8 90.00
61 – 9 90.25
61 – 10 90.50
61 – 11 90.75
62 – 0 91.00
62 – 1 91.25
62 – 2 91.50
62 – 3 91.75
62 – 4 92.00
62 – 5 92.25
62 – 6 92.50
62 – 7 92.75
62 – 8 93.00
62 – 9 93.25
62 – 10 93.50
62 – 11 93.75
63 – 0 94.00
63 – 1 94.25
63 – 2 94.50
63 – 3 94.75
63 – 4 95.00
63 – 5 95.25
63 – 6 95.50
63 – 7 95.75
63 – 8 96.00
63 – 9 96.25
63 – 10 96.50
63 – 11 96.75
64 – 0 97.00
64 – 1 97.25
64 – 2 97.50
64 – 3 97.75
64 – 4 98.00
64 – 5 98.25
64 – 6 98.50
64 – 7 98.75
64 – 8 99.00
64 – 9 99.25
64 – 10 99.50
64 – 11 99.75

 

Table 4
Regular Early Retirement Reduction Factors For 2018
Sustainable Income Benefits
Age – Factor
55 – 0 53.000
55 – 1 53.250
55 – 2 53.500
55 – 3 53.750
55 – 4 54.000
55 – 5 54.250
55 – 6 54.500
55 – 7 54.750
55 – 8 55.000
55 – 9 55.250
55 – 10 55.500
55 – 11 55.750
56 – 0 56.000
56 – 1 56.250
56 – 2 56.500
56 – 3 56.750
56 – 4 57.000
56 – 5 57.250
56 – 6 57.500
56 – 7 57.750
56 – 8 58.000
56 – 9 58.250
56 – 10 58.500
56 – 11 58.750
57 – 0 59.000
57 – 1 59.333
57 – 2 59.667
57 – 3 60.000
57 – 4 60.333
57 – 5 60.667
57 – 6 61.000
57 – 7 61.333
57 – 8 61.667
57 – 9 62.000
57 – 10 62.333
57 – 11 62.667
58 – 0 63.000
58 – 1 63.333
58 – 2 63.667
58 – 3 64.000
58 – 4 64.333
58 – 5 64.667
58 – 6 65.000
58 – 7 65.333
58 – 8 65.667
58 – 9 66.000
58 – 10 66.333
58 – 11 66.667
59 – 0 67.000
59 – 1 67.333
59 – 2 67.667
59 – 3 68.000
59 – 4 68.333
59 – 5 68.667
59 – 6 69.000
59 – 7 69.333
59 – 8 69.667
59 – 9 70.000
59 – 10 70.333
59 – 11 70.667
60 – 0 71.000
60 – 1 71.417
60 – 2 71.834
60 – 3 72.251
60 – 4 72.668
60 – 5 73.085
60 – 6 73.502
60 – 7 73.919
60 – 8 74.336
60 – 9 74.753
60 – 10 75.170
60 – 11 75.587
61 – 0 76.000
61 – 1 76.500
61 – 2 77.000
61 – 3 77.500
61 – 4 78.000
61 – 5 78.500
61 – 6 79.000
61 – 7 79.500
61 – 8 80.000
61 – 9 80.500
61 – 10 81.000
61 – 11 81.500
62 – 0 82.000
62 – 1 82.500
62 – 2 83.000
62 – 3 83.500
62 – 4 84.000
62 – 5 84.500
62 – 6 85.000
62 – 7 85.500
62 – 8 86.000
62 – 9 86.500
62 – 10 87.000
62 – 11 87.500
63 – 0 88.000
63 – 1 88.500
63 – 2 89.000
63 – 3 89.500
63 – 4 90.000
63 – 5 90.500
63 – 6 91.000
63 – 7 91.500
63 – 8 92.000
63 – 9 92.500
63 – 10 93.000
63 – 11 93.500
64 – 0 94.000
64 – 1 94.500
64 – 2 95.000
64 – 3 95.500
64 – 4 96.000
64 – 5 96.500
64 – 6 97.000
64 – 7 97.500
64 – 8 98.000
64 – 9 98.500
64 – 10 99.000
64 – 11 99.500

Last Updated: 04/20/2023