Summary Plan Description (Revised January 1, 2012)

Post-Retirement Employment and Suspension of Benefits

Your monthly benefit under the Carpenters Retirement Plan will be suspended when you engage in post-retirement employment as described below. Your monthly benefit will be reinstated on the first day of the month following the appropriate suspension.

Before Age 65

To be deemed retired prior to attainment of age 65, you must withdraw and completely refrain from any work with an employer that contributes to the plan. If you retire and subsequently work anywhere for wages or profit in the building and construction industry your benefits are subject to suspension. Building and construction industry means business activities of the types engaged in by any employers maintaining the plan. Work means work of the type performed by employees covered by the plan or work that requires directly or indirectly the use of the same skills employed by an employee at any time under the plan. If you work 480 hours or less in a calendar year, your monthly benefit from this plan will not be suspended. This is known as the "480 Hour Rule."

If you work more than 480 hours in a calendar year, one or both of the following two penalties apply:

  1. If you work more than 480 hours during a calendar year, and you are under age 65, three months of retirement benefits will be suspended. For each month in which you work one or more hours thereafter, an additional one month of benefits will be withheld (please see example 1 below).

    In example 1, the retiree worked full time (40 hours per week) for three consecutive months. 

    He then worked one additional hour in April. The one hour worked in April brought his calendar year total to 481 hours. Therefore, his monthly retirement benefit is suspended for three months.

  2. If you work more than 480 hours during a calendar year, are under age 65 and are retired under rule of 80 early retirement, your monthly benefit will be recalculated under the regular early retirement provisions of the plan based on your age at retirement following the suspension described in penalty one above (please see example 2 above).

    In example 2, the retiree worked full time (40 hours per week) for three consecutive months. He then worked one additional hour in April. The one hour worked in April brought his calendar year total to 481 hours. Therefore, his monthly retirement benefit is suspended for three months. Following the three-month suspension, his monthly benefit is recalculated under the regular early retirement provisions of the plan based on his age at retirement. This new benefit amount is payable for the rest of the retiree's life.

There is a one-time exception to the benefit reduction from the rule of 80 early retirement amount to the regular early retirement amount described above. Your monthly benefit is not reduced if both of the following two rules are satisfied:

  1. You worked less than 580 hours in that calendar year.
  2. This was the first time you worked more than 480 hours in post-retirement service.

Example 3 illustrates these rules.

In example 3, the retiree worked full time (40 hours per week) for three consecutive months. He then worked 99 additional hours in April. The 99 hours worked in April brought his hourly total to 579 in the calendar year. Therefore, his monthly retirement benefit is suspended for three months. Following the three-month suspension, his monthly benefit is reinstated at the rule of 80 early retirement amount.

Even with these rules, if you work 580 hours in a calendar year or you work more than 480 hours in two consecutive or non-consecutive years, your monthly benefit will be reduced to the regular early retirement amount following the suspension. Example 4 illustrates this rule.

In example 4, the retiree worked full time (40 hours per week) for three consecutive months. He then worked 100 additional hours in April. The 100 hours worked in April brought his calendar year total to 580 hours. Therefore, his monthly retirement benefit is suspended for three months. Following the three-month suspension, his monthly benefit is recalculated under the regular early retirement provisions of the plan based on his age at retirement. This new benefit is payable for the rest of the retiree's life.

Example 1
Month Hours Worked Retirement Benefit Status
January 160 Benefit payable
February 160 Benefit payable
March 160 Benefit payable
April 1 Benefit suspended
May 0 Benefit suspended
June 0 Benefit suspended
July 0 Benefit payable
August 0 Benefit payable
September 0 Benefit payable
October 0 Benefit payable
November 0 Benefit payable
December 0 Benefit payable 

 

Example 2
Month Hours Worked Retirement Benefit Status
January 160 Rule of 80 early benefit payable
February 160 Rule of 80 early benefit payable
March 160 Rule of 80 early benefit payable
April 1 Benefit suspended
May 0 Benefit suspended
June 0 Benefit suspended
July 0 Rule of 80 early benefit payable
August 0 Rule of 80 early benefit payable
September 0 Rule of 80 early benefit payable
October 0 Rule of 80 early benefit payable
November 0 Rule of 80 early benefit payable
December 0 Rule of 80 early benefit payable 

 

Example 3
Month Hours Worked Retirement Benefit Status
January 160 Rule of 80 early benefit payable
February 160 Rule of 80 early benefit payable
March 160 Rule of 80 early benefit payable
April 99 Benefit suspended
May 0 Benefit suspended
June 0 Benefit suspended
July 0 Rule of 80 early benefit payable
August 0 Rule of 80 early benefit payable
September 0 Rule of 80 early benefit payable
October 0 Rule of 80 early benefit payable
November 0 Rule of 80 early benefit payable
December 0 Rule of 80 early benefit payable 

 

Example 4
Month Hours Worked Retirement Benefit Status
January 160 Rule of 80 early benefit payable
February 160 Rule of 80 early benefit payable
March 160 Rule of 80 early benefit payable
April 100 Benefit suspended
May 0 Benefit suspended
June 0 Benefit suspended
July 0 Regular early benefit payable
August 0 Regular early benefit payable
September 0 Regular early benefit payable
October 0 Regular early benefit payable
November 0 Regular early benefit payable
December 0 Regular early benefit payable
After Age 65

When a retiree attains age 65, benefits are subject to suspension for work in the building and construction industry in the geographic area covered by the plan. The "480 Hour Rule" and what is known as the "40 Hour Rule" work together to determine when a benefit is suspended:

  • During each calendar year, a retiree may choose to work a total of 480 hours. During that period, there is no restriction on how many hours a retiree may work in a specific month. Retirement benefits are not suspended if the retiree works 480 hours or less during a calendar year.
  • If a retiree works 480 hours during a calendar year (as described above), a retiree may also choose to work less than 40 hours in any month after the month the 480 hours was reached without a suspension of retirement benefits. If a retiree works 40 hours or more in any month after the month the 480 hours was reached, his or her monthly benefit will be suspended accordingly.

A retiree who retired under rule of 80 early retirement is no longer subject to the benefit reduction following a suspension when he or she attains age 65.

Building and construction industry means business activities of the types engaged in by any employer maintaining the plan. Work means work of the type performed by employees covered by the plan or work which requires directly or indirectly the use of the same skills employed by an employee at any time under the plan.

  • For additional information about suspension of benefits, please see Article 6.4