Summary Plan Description (Revised January 1, 2012)

Pension Enhancement Option

Changed by Amendment 2: Effective 1/1/13, the $10,000 minimum on Pension Enhancement Option transfers no longer applies.

You can use all or a portion of your account balance in the Carpenters of Western Washington Individual Account Pension Plan to increase your monthly benefit under the Carpenters Retirement Plan of Western Washington. 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 this 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 and your spouse (or other beneficiary) die before the enhancement amount is distributed, any remaining balance is paid to an alternative 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 following examples illustrate how the pension enhancement option works.

Calculations
You retire at age 62 with a single life benefit of $2,000.00. You elect to use a portion of your Carpenters Individual Account Pension Plan to increase your $2,000.00 monthly benefit under the Carpenters Retirement Plan. The following three examples illustrate how this can be done. The annuity conversion factors are listed in Table 3.

Example 1

You use $10,000.00 (the minimum amount) from the Carpenters Individual Account Pension Plan to increase your $2,000.00 monthly benefit under the Carpenters Retirement Plan: $10,000.00 ÷ Annuity Conversion Factor = Pension Enhancement Amount

$10,000.00 ÷ 126.4856 = $79.06
$2,000.00 + $79.06 = $2,079.06

In this example, $10,000.00 from the Carpenters Individual Account Pension Plan adds $79.06 to your $2,000.00 monthly benefit paid under the Carpenters Retirement Plan. The annuity conversion factor used to calculate the enhancement is age related so this portion of your monthly benefit is not subject to any early retirement reduction (if applicable). The enhancement amount is, however, subject to any joint and survivor reduction (if applicable).

Example 2

You use $50,000.00 from the Carpenters Individual Account Pension Plan to increase your $2,000.00 monthly benefit under the Carpenters Retirement Plan:

$50,000.00 ÷ Annuity Conversion Factor = Pension Enhancement Amount
$50,000.00 ÷ 126.4856 = $395.30
$2,000.00 + $395.30 = $2,395.30

In this example, $50,000.00 from the Carpenters Individual Account Pension Plan adds $395.30 to your $2,000 monthly benefit under the Carpenters Retirement Plan. This amount is subject to the joint and survivor reduction (if applicable).

Example 3

You would like to increase your $2,000 monthly benefit under the Carpenters Retirement Plan by exactly $300.00:

Pension Enhancement Amount x Annuity Conversion Factor = Required Enhancement Amount
$300.00 x 126.4856 = $37,945.68

In this example, a $300.00 increase to your $2,000.00 Carpenters Retirement Plan monthly benefit requires $37,945.68 from your Carpenters Individual Account Pension Plan. This amount is subject to the joint and survivor reduction (if applicable).

 

Table 3
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.
Pension Enhancement Option – Annuity Conversion Factors
Age Factor
55 – 0 140.0753
55 – 1 139.9275
55 – 2 139.7797
55 – 3 139.6319
55 – 4 139.4841
55 – 5 139.3363
55 – 6 139.1885
55 – 7 139.0407
55 – 8 138.8929
55 – 9 138.7451
55 – 10 138.5973
55 – 11 138.4495
56 – 0 138.3017
56 – 1 138.1490
56 – 2 137.9963
56 – 3 137.8436
56 – 4 137.6909
56 – 5 137.5382
56 – 6 137.3855
56 – 7 137.2328
56 – 8 137.0801
56 – 9 136.9274
56 – 10 136.7747
56 – 11 136.6220
57 – 0 136.4693
57 – 1 136.3120
57 – 2 136.1547
57 – 3 135.9974
57 – 4 135.8402
57 – 5 135.6829
57 – 6 135.5256
57 – 7 135.3683
57 – 8 135.2110
57 – 9 135.0538
57 – 10 134.8965
57 – 11 134.7392 
58 – 0 134.5819
58 – 1 134.4204
58 – 2 134.2589
58 – 3 134.0974
58 – 4 133.9359
58 – 5 133.7744
58 – 6 133.6130
58 – 7 133.4515
58 – 8 133.2900
58 – 9 133.1285
58 – 10 132.9670
58 – 11 132.8055
59 – 0 132.6440
59 – 1 132.4771
59 – 2 132.3103
59 – 3 132.1434
59 – 4 131.9765
59 – 5 131.8097
59 – 6 131.6428
59 – 7 131.4759
59 – 8 131.3090
59 – 9 131.1422
59 – 10 130.9753
59 – 11 130.8084
60 – 0 130.6416
60 – 1 130.4702
60 – 2 130.2987
60 – 3 130.1273
60 – 4 129.9559
60 – 5 129.7845
60 – 6 129.6131
60 – 7 129.4417
60 – 8 129.2702
60 – 9 129.0988
60 – 10 128.9274
60 – 11 128.7560
61 – 0 128.5846
61 – 1 128.4097
61 – 2 128.2347
61 – 3 128.0598
61 – 4 127.8849
61 – 5 127.7100
61 – 6 127.5351
61 – 7 127.3602
61 – 8 127.1853
61 – 9 127.0104
61 – 10 126.8355
61 – 11 126.6605
62 – 0 126.4856
62 – 1 126.3076
62 – 2 126.1296
62 – 3 125.9515
62 – 4 125.7735
62 – 5 125.5955
62 – 6 125.4174
62 – 7 125.2394
62 – 8 125.0613
62 – 9 124.8833
62 – 10 124.7053
62 – 11 124.5272
63 – 0 124.3492
63 – 1 124.1684 
63 – 2 123.9877
63 – 3 123.8069
63 – 4 123.6261
63 – 5 123.4453
63 – 6 123.2646
63 – 7 123.0838
63 – 8 122.9030
63 – 9 122.7223
63 – 10 122.5415
63 – 11 122.3607
64 – 0 122.1799
64 – 1 121.9968
64 – 2 121.8137
64 – 3 121.6305
64 – 4 121.4474
64 – 5 121.2643
64 – 6 121.0811
64 – 7 120.8980
64 – 8 120.7149
64 – 9 120.5317
64 – 10 120.3486
64 – 11 120.1655
65 – 0 119.9823
66 – 0 117.7094
67 – 0 115.4097
68 – 0 113.0826
69 – 0 110.7391
70 – 0 108.3837
71 – 0 105.9531