BenefitTabs

  • Introduction

    There are a variety of optional payment forms available to you. Your options are dependent on your marital status, if married, your spouse's agreement, and your needs and preferences for arranging your retirement income. Any non-periodic payment from this plan of less than ten years is subject to a 20 percent mandatory federal income tax withholding, unless it is rolled over to an Individual Retirement Account (IRA) or eligible retirement plan, including the pension enhancement option (please see below).

     
  • Lump Sum Distribution

    You receive a one-time, lump sum payment of your account balance. You may elect to rollover all or part of the lump sum. If your account balance is $5,000 or less, benefits will be paid in this form. This is the standard form of payment for a participant whose only contributions are for hours worked on or after January 1, 2014.

     
  • Pension Enhancement Option

    You can use all or a portion of your vested account balance in the Carpenters Individual Account Pension Plan to increase your monthly benefit in the Carpenters Retirement Plan of Western Washington. This plan feature is commonly referred to as a "cash fund annuity" with the Carpenters Retirement Plan as the annuity. To review the advantages of this option, please view the SPD.

     
  • Partial Distribution

    You receive a portion of your total vested account balance at retirement and defer receipt of the balance (including any investment gains or losses) to a later tax year. You may elect a different payment option for the balance of your account. Each partial distribution is subject to the application and election procedures. Until all of your funds are distributed to you, your account continues to experience investment gains and losses based on the investment performance of the entire plan. If you die before the second payment is made, your designated beneficiary receives the second payment.

     
  • Period Certain Payments

    You receive benefits over a specified number of months. The amount is fixed, essentially equal guaranteed monthly payments (subject to adjustment for gains and losses in the plan). You elect the number of months over which the payments will be made, however, the payment period cannot exceed the joint life expectancy of you and your beneficiary. If you die before receiving all payments, payments will continue to your beneficiary. If you elect a payment period that is less than ten years, payments may be rolled over. You must designate your spouse as beneficiary, unless your spouse consents to your designation of another beneficiary.

     
  • Minimum Annual Payout

    You receive a specified dollar amount each month until you exhaust your account balance. You designate the monthly amount of the payout. The amount will be adjusted annually to account for investment gains or losses. If you die before receiving all payments, payments continue to your beneficiary. You must designate your spouse as beneficiary unless your spouse consents to your designation of another beneficiary.

    You may also receive a specified monthly benefit based on your account balance divided by your life expectancy. The amount is adjusted annually to account for investment gains or losses. If you die before receiving all payments, payments continue to your beneficiary. You must designate your spouse as beneficiary unless your spouse consents to your designation of another beneficiary.

     
  • Deferred Distribution

    You may defer your distribution from this plan to a later date. On your future distribution date you may elect any one of the distribution options except the pension enhancement option. During the deferral period, your account balance continues to experience investment gains and losses based on the investment performance of the entire plan.

     
  • Lifetime Annuity Income

    If contributions were made to the plan for work before January 1, 2014, you may elect to have the Board of Trustees purchase, on your behalf, a non-transferable annuity. You may elect to have your benefit paid to you as a lifetime monthly income. The amount of your monthly benefit is based on your vested 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. Annuities are not available to retirees whose first contributions to the plan are attributable to work beginning January 1, 2014 and later.

     
  • Qualified Joint & Survivor Annuity

    The standard form of payment for the married participant with contributions in the plan for work performed before January 1, 2014, is a joint and survivor annuity. 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 vested account balance on your retirement effective date.

     
  • Single Life Annuity

    The standard form of payment for the single participant with contributions in the plan for work performed before January 1, 2014, is a single life annuity. This annuity provides a monthly income for your life. Your annuity income is based on your account balance on your retirement effective date.