Northwest Carpenters Individual Account Pension Plan

Article 1: Definitions 

1.1 Terms Common to the Trust Agreement

Whenever the terms "Agreement," "Collective Bargaining Agreement," "Individual Employer," "Employee," "Associate Employee," "Fiduciary," "Fund," "Trustees," and "Union" 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."

1.2 Account

"Account" or "Individual Account" shall mean an account established by the Trustees for each Participant, which shall consist of the combined Elective Contribution Subaccount, Employer Contribution Subaccount, Regular Subaccount, Supplemental Subaccount, and Rollover Subaccount.

1.3 Break in Service

"Break in Service" for the purposes of the Regular Subaccount and Employer Contribution Subaccount shall mean as to each Plan Year the failure of a non-vested Participant to complete 500 or more Hours of Service in this Plan or a Related Plan in such Plan Year, the effect of which is set forth in Article 2.

1.4 Carpenters Retirement Plan

The "Carpenters Retirement Plan" shall mean the defined benefit retirement plan established by the Individual Employers and Union by separate Trust Agreement.

1.5 Combined Service Credit

"Combined Service Credit" shall mean the total of a Participant's Credited Service under this Plan and a Related Plan. No more than one year of Combined Service Credit shall be counted for the benefit of any Participant in any calendar year.

1.6 Compensation

"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 the Individual Employer's trade or business) for which the Individual Employer is required to furnish the Employee a written statement under Internal Revenue Code § 6049(d) and § 6051(a)(3).

"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).

The annual compensation of each Employee taken into account shall not exceed $200,000 adjusted in accordance with Internal Revenue Code § 401(a)(17).

1.7 Contributions

"Contributions" shall mean Employer Contributions that an Individual Employer isrequired to make to this Plan under the terms of a Collective Bargaining Agreement or under the terms of a written contribution agreement between an Individual Employer and the Trustees, as well as Elective Contributions that an Individual Employer is required to remit to the Plan pursuant to an election by a Participant.

1.8 Covered Service

"Covered Service" shall mean the Hours of Service of a Participant for which a contribution to the Trust is required to be made under the terms of the Collective Bargaining Agreement or other written contribution agreement.

1.9 Credited Service

"Credited Service" for the purposes of the Regular Subaccount and the Employer Contribution Subaccount shall mean the Hours of Service credited to a Participant under this Plan after June 1, 1981. A Participant shall receive Credited Service for any calendar year in accordance with the following schedule:

A Participant shall also be entitled to Credited Service for vesting in the Regular and the Employer Contribution Subaccounts and to avoid a Break in Service for each year of Non-Covered Service with an Individual Employer, if the service is contiguous. Non-Covered Service is contiguous if: (1) the Non-Covered Service precedes or follows Covered Service; and (2) no termination, discharge, or retirement occurs between such Covered Service and Non-Covered Service.

After a Participant has reached the Normal Retirement Date, and prior to actual retirement, the Participant may continue to accumulate Credited Service.

1.10 Early Retirement Date

"Early Retirement Date" shall mean the first day of the month immediately following a Participant's 55th birthday, but prior to the Participant's 65th birthday.

1.11 Elective Contribution

"Elective Contribution" shall mean the contribution (including Catch-Up Contribution, defined below) that a Participant elects to make to the Plan through a prospective reduction in his Compensation pursuant to a written election filed with Carpenters Trusts as permitted under a Collective Bargaining Agreement or the terms of a written contribution agreement between an Individual Employer and the Trustees. Annual contribution limits necessary to maintain the qualified status of the Plan under Code Section 401(a) are described in Article 10.3 and in Appendix A – Actual Deferral Percentage Testing.

"Catch-Up Contribution" shall mean the Elective Contributions as described in Code Section 414(v) that are made by a Participant who would attain age 50 or over by the end of the Plan Year, not to exceed the Catch-Up Contribution limit in Article 2.7.

1.12 Elective Contribution Subaccount

"Elective Contribution Subaccount" shall mean an account established by the Trustees for each Participant for Elective Contributions made to the Plan for hours worked on and after January 1, 2014 pursuant to a prospective election by a Participant. Elective Contribution Subaccounts are maintained in terms of unit values under which a Participant's Elective Contribution Subaccount shall be equal to:

1. The unit value of the Fund as of the last preceding Valuation Date, multiplied by the units in the Participant's Elective Contribution Subaccount, as defined in Article 6.2, plus
2. The employee pre-tax contributions made on the Participant's behalf and received by the Fund since the last preceding Valuation Date.

1.13 Employer Contributions

"Employer Contributions" shall mean the cents per hour contributions that an Individual Employer is required to make to this Plan under the terms of a Collective Bargaining Agreement, including, prior to January 1, 2014, both the contributions to the Regular Subaccount and the Supplemental Subaccount, and on and after January 1, 2014, the Employer Contribution Subaccount. Employer Contributions shall also mean the cents per hour contributions that an Individual Employer is required to make to the Regular Subaccount, Supplemental Subaccount or Employer Contribution Subaccount under the terms of a written contribution agreement between an Individual Employer and the Trustees.

1.14 Employer Contribution Subaccount

"Employer Contribution Subaccount" shall mean an account established by the Trustees for each Participant for all Employer Contributions made to the Plan on and after January 1, 2014 under a Collective Bargaining Agreement, other than Elective Contributions and amounts transferred in a rollover from other qualified plans. Employer Contribution Subaccounts are maintained in terms of unit values under which a Participant's Employer Contribution Subaccount shall be equal to:

1. The unit value of the Fund as of the last preceding Valuation Date, multiplied by the Participant's units in the Employer Contribution Subaccount, as determined in Article 6.2, plus
2. The Employer Contributions made to the Employer Contribution Subaccount on the Participant's behalf and received by the Fund since the last preceding Valuation Date.

1.15 Highly Compensated Employee

"Highly Compensated Employee" for the purposes of complying with nondiscrimination provisions under Internal Revenue Code § 401(a)(4), § 401(k)(3) and § 410(b) shall mean an Employee who: (a) was a five-percent (5%) owner at any time during the Plan Year or the preceding year, or (b) for the preceding year had compensation from the employer being tested in excess of $80,000 (adjusted under Internal Revenue Code § 414(q)). The Plan will use January 30th as a snapshot day for purposes of complying with the nondiscrimination provisions and determining who is a Highly Compensated Employee.

1.16 Hour of Service

An "Hour of Service" shall mean each hour for which a Participant is paid or entitled to payment for Covered Service

1. performance of duties for the Individual Employer;
2. non-performance of duties;
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 for non-performance of duties shall be credited in accordance with DOL Regulations Section 2530.200b-2(b). Hours shall be credited to the applicable computation period in accordance with DOL Regulations Section 2530.200b-2(c). See DOL Regulations Section 2530.200b-2.

A beginning apprentice shall be credited with an Hour of Service for vesting purposes and to avoid a Break in Service for each hour for which a contribution is made on behalf of the apprentice to the Northwest Carpenters Health and Security Plan, but for which no contribution is required to this Plan.

1.17 Non-Covered Service

"Non-Covered Service" shall mean service with one of the Individual Employers who is required to make contributions to the Trust but in an employment category which is not covered by the Collective Bargaining Agreement.

1.18 Normal Retirement Date

"Normal Retirement Date" shall mean the time a Participant attains age 65, and in the case of the Regular Subaccount, completes the earlier of:

1. Five (5) years of Credited Service, including at least one (1) year of Credited Service under this Plan, without incurring a Permanent Break in Service; or
2. Three (3) years of Credited Service, including at least one (1) year of Credited Service under this Plan, without incurring a Permanent Break in Service, provided the Participant does not have a Permanent Break in Service as of January 1, 2007 and has at least one Hour of Service in this Plan on or after January 1, 2007; or
3. The fifth anniversary of the time a Participant commenced participation in this Plan, unless his rights were forfeited by a One-Year Break in Service and not recovered under Article 2.5.

1.19 Participant

"Participant" shall mean an Employee, Associate Employee, former Employee, or former Associate Employee, on whose behalf under the terms of the Collective Bargaining Agreement or other written contribution agreement, Contributions are required or permitted.

1.20 Plan

"Plan" shall mean the Northwest Carpenters Individual Account Pension Plan as described herein and as from time to time hereafter amended.

1.21 Plan Administrator

"Plan Administrator" shall mean the individual employed by the Board of Trustees to assist them in administering the Plan.

1.22 Plan Year

"Plan Year" shall mean the period beginning June 1, 1981 and ending December 31, 1981, and each calendar year thereafter.

1.23 Regular Subaccount

"Regular Subaccount" shall mean an account established by the Trustees for each Participant for all amounts in the Participant's Individual Account as of June 1, 1989, plus the Employer Contributions made to the Plan before January 1, 2014, other than the supplemental contributions made under a Collective Bargaining Agreement and other than amounts transferred in a rollover from other qualified plans. Effective January 1, 2008, Regular Subaccounts are maintained in terms of unit values under which a Participant's Regular Subaccount shall be equal to:

1. The unit value of the Fund as of the last preceding Valuation Date, multiplied by the Participant's units in the Regular Subaccount, as determined in Article 6.2, plus
2. The Employer Contributions made to the Regular Subaccount on the Participant's behalf and received by the Fund since the last preceding Valuation Date.

1.24 Related Plan

"Related Plan" shall mean another pension plan with which the Northwest Carpenters Retirement Plan has a written Reciprocity Agreement.

1.25 Retired or Retirement

"Retired" or "Retirement" shall mean the termination of all employment with Individual Employers that make contributions to the Plan.

1.26 Rollover Subaccount

"Rollover Subaccount" shall mean an account established by the Trustees for each Participant for the amounts transferred from other qualified plans pursuant to Article 10.7. Rollover Subaccounts are maintained in terms of unit values under which a Participant's Rollover Subaccount shall be equal to:

1. The unit value of the Fund as of the last preceding Valuation Date, multiplied by the units in the Participant's Rollover Subaccount, as defined in Article 6.2, plus
2. Amounts transferred on behalf of the Participant from other qualified plans pursuant to Article 10.7 and received by the Fund since the last preceding Valuation Date.

1.27 Supplemental Subaccount

"Supplemental Subaccount" shall mean an account established by the Trustees for each Participant for the supplemental contributions made to the Plan for covered service before January 1, 2014 under a Collective Bargaining Agreement. Supplemental Subaccounts are maintained in terms of unit values under which a Participant's Supplemental Subaccount shall be equal to:

1. The unit value of the Fund as of the last preceding Valuation Date, multiplied by the units in the Participant's Supplemental Subaccount, as defined in Article 6.2, plus
2. The supplemental contributions made on the Participant's behalf and received by the Fund since the last preceding Valuation Date.

1.28 Trust or Trust Agreement

"Trust" or "Trust Agreement" shall mean the Northwest Carpenters Individual Account Pension Trust Agreement originally created and established on June 1, 1981, as amended.

1.29 Valuation Date

"Valuation Date" shall mean the first valuation on December 31, 1981, and thereafter the last day of the Plan Year and the date on which the fair market value of the Trust's assets is determined.

"Valuation Date" shall also mean the last day of any calendar month during a Plan Year that the Trustees, in their sole discretion and with the advice of their actuary, determine should be a Valuation Date for purposes of determining the fair market value of the Trust's assets and the units allocated to each Participant's Account under the unit value accounting.

1.30 Year of Service

"Year of Service" shall mean any Plan Year in which a Participant completes at least 1,000 Hours of Service.

Last Updated: 12/02/2022