Summary Plan Description

Introduction

The Carpenters Individual Account Pension Plan is a "defined contribution plan" which means your benefit is determined by the amount of money in your individual account when you retire. Your account balance at retirement is determined by five major factors:

  • The number of hours you work each year for contributing employers and the length of your union career with this plan.
  • The hourly contribution rate to the regular subaccount and to the employer contribution subaccount during your union career with this plan.
  • The amount of 401(a) supplemental contributions made to the plan between July 1, 2000 and December 31, 2013.
  • The amount of 401(k) elective contributions made to the plan from January 1, 2014 until your retirement.
  • The investment performance of the plan during your participation in this plan.

The following three examples illustrates two of these major factors:

Calculations
Example 1

The contributions used in Example 1 are made on behalf of all participants of this plan and are subject to three-year vesting:

Total Hours Reported x Hourly Contribution Rate = Total Contributions For That Year
1,500 Hours x $.60/Hour = $900.00

The 1,500 hours generates 1.0 year of credited service toward three-year vesting. The $900.00 in contributions are not guaranteed until the three-year vesting rule is satisfied. All contributions are subject to investment gains or losses until the account balance is fully paid at or after retirement.

Example 2

The contributions used in Example 2 are made on behalf of participants who elect to have 401(k) contributions made to the plan and are fully vested beginning with the initial $1.00 contribution:

Total Hours Reported x 401(k) Elective Contributions = Total Contributions For That Year
1,500 Hours x $1.00/Hour = $1,500.00

The $1,500.00 in 401(k) elective contributions are fully vested beginning with the initial $1.00 contribution. All contributions are subject to investment gains or losses until the account balance is fully paid at or after retirement.

Example 3

The contributions used in Example 3 are made on behalf of participants who elect to have 401(k) contributions made to the plan and are fully vested beginning with the initial $4.00 contribution:

Total Hours Reported x 401(k) Elective Contributions = Total Contributions For That Year
1,500 Hours x $4.00/Hour = $6,000.00

The $6,000.00 in 401(k) elective contributions are fully vested beginning with the initial $4.00 contribution. All contributions are subject to investment gains or losses until the account balance is fully paid at or after retirement.

In the first example above, 1,500 covered hours generated $900.00 in employer contributions. In the second example, 1,500 covered hours with a $1.00 per hour 401(k) elective contribution generated an additional $1,500.00. In the third example, 1,500 covered hours with a $4.00 per hour 401(k) elective contribution generated an additional $6,000.00.