Retirement Payment Options

Under normal, early and disability retirement, your benefit amount is the vested combined balance of your five subaccounts on the later of your retirement effective date or on your distribution date(s). No benefit reduction is made for early retirement under this plan. 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).

There are a variety of payment options available when you retire under this plan. Each of these payment options is described below. Your retirement benefits under this plan are taxable
income.

Your payment from this plan is generally provided to you on the first business day of the month following timely receipt of your Explanation of Payment Options and Election of Retirement Benefits form.

• For additional information about the benefit amount available under normal and early retirement, please see Article 4.1 on pages 66-67.

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.

• For additional information about a lump sum distribution, please see Article 4.4 on pages 68-69.

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. The pension enhancement option provides you with several important financial advantages:

• The same actuarial assumptions (investment, retirement and mortality) used to calculate your monthly benefit under the Carpenters Retirement Plan will be used to calculate the
  pension enhancement from your Carpenters Individual Account Pension Plan.
• Your pension enhancement provides you and your spouse or other designated beneficiary (if applicable) with a lifetime monthly benefit from the Carpenters Retirement Plan. The enhancement is added to the monthly benefit already earned under the Carpenters Retirement Plan. As with the monthly income provided by the Carpenters Retirement Plan, you cannot outlive the income provided from the enhancement. In addition, the enhancement does not experience fluctuations in investment earnings or losses as does the monthly income available from the Carpenters Individual Account Pension Plan.
• The amount used to generate the enhancement to your monthly benefit is guaranteed. If you die before the enhancement amount is distributed, any remaining balance is paid to your beneficiary.
• The enhancement provides you with a lifetime monthly benefit without the purchase and processing fees associated with the purchase of a commercial annuity or other investment incomes.

The examples below illustrate how the pension enhancement option works.

To elect the pension enhancement option, you must elect to retire from the Carpenters Retirement Plan at the same time.

• For additional information about the pension enhancement option, please see Article 10.6 on pages 87-88.

Table 3
Annuity Conversion Factors

The annuity conversion factors determine the single life benefit provided by the pension enhancement option. First, determine the amount from your Carpenters Individual Account Pension Plan you wish to increase your Carpenters Retirement Plan monthly benefit with. Second, select the year and month closest to your age on your retirement date. Then divide your pension enhancement amount by the corresponding annuity conversion factor. The result is the monthly amount added to your monthly benefit under the Carpenters Retirement Plan if you select a single life benefit. If you select one of the joint and survivor options, this amount will be reduced to provide for a survivor benefit for your spouse or other designated beneficiary.

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.

• For additional information about a partial distribution, please see Article 4.3(c) on page 68.

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.

• For additional information about period certain payments, please see Article 4.3(a) on page 68.

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.

• For additional information about a minimum annual payout, please see Article 4.3(b) on page 68.

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.

Two annuity options are available depending on your marital status when you retire:

Qualified Joint and 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.

• For additional information about a qualified joint and survivor annuity, please see Article 4.2(a) on page 67.

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.

• For additional information about a single life annuity, please see Article 4.2(b) on page 67.

Please contact Retirement Services at the Trust Office for assistance with the two annuity income options.