Summary Plan Description (Revised January 1, 2018)

Retirement Payment Options

Single Life Benefit

A single life benefit provides a monthly benefit for your lifetime. There is no continuing income for your spouse's or beneficiary's lifetime, except that if you die before the first 60 monthly payments have been made, your spouse or beneficiary will receive any outstanding payments until a total of 60 payments have been made. With this benefit option your monthly income equals your total monthly benefit less any reduction for early retirement (if applicable). The example on page 36 illustrates how to calculate a single life benefit.

  • For additional information about a single life benefit, please see Article 6.6.

Joint and Survivor Benefit

If you are married when you retire, you may want a benefit option that provides an income to your spouse after you die. The following three joint and survivor benefit options are available. These payment options are also available if you are single. Traditional joint and survivor factors are listed in Table 7. Sustainable joint and survivor factors are subject to change each year and are available on the Carpenters Trusts website: www.ctww.org.

50% Joint and Survivor Benefit

With this benefit option you receive a monthly benefit for life and, if you die before your spouse or other designated beneficiary, he or she receives 50% of that amount for his or her life. Your monthly income is your total monthly benefit less the appropriate reduction for early retirement (if applicable), less the appropriate reduction for the survivor benefit. The example illustrates how to calculate a 50% joint and survivor benefit.

75% Joint and Survivor Benefit

With this benefit option you receive a monthly benefit for life and, if you die before your spouse or other designated beneficiary, he or she receives 75% of that amount for his or her life. Your monthly income is your total benefit less the appropriate reduction for early retirement (if applicable), less the appropriate reduction for the survivor benefit. The example illustrates how to calculate a 75% joint and survivor benefit.

100% Joint and Survivor Benefit

With this benefit option you receive a monthly benefit for life and, if you die before your spouse or other designated beneficiary, he or she receives 100% of that amount for his or her life. Your monthly income is your total monthly benefit less the appropriate reduction for early retirement (if applicable), less the appropriate reduction for the survivor benefit. The example illustrates how to calculate a 100% joint and survivor benefit.

Pop-Up Benefit

If you begin receiving one of the joint and survivor benefits and your spouse or other designated beneficiary predeceases you, your monthly income is increased to the amount that would have been payable with a single life benefit on your retirement effective date. This increase is effective for the month following your spouse or other designated beneficiary's death.

Similarly, if you and your spouse divorce after you begin receiving one of the joint and survivor benefits, and your spouse agrees in a Qualified Domestic Relations Order (QDRO) to relinquish all of his or her rights to your retirement benefits, your benefit is increased to the amount that would have been available under a single life benefit on your retirement effective date. This increase is effective for the month following the effective date in the provision of the QDRO that specifies the relinquishment.

If you receive either of these pop-up benefits, there is no five year guarantee (no survivor benefits to any beneficiary after your death).

Single Life Benefit

If you are single and retire at age 65 in 2018 with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit?

Traditional Income Benefit
$2,000.00

Initial Sustainable Income Benefit
$100.00

Total Initial Monthly Benefit
$2,000.00 + $100.00 = $2,100.00

In this example, your initial $2,100.00 monthly benefit is unreduced because there is no early retirement reduction with normal retirement and no reduction for a survivor benefit with a single life benefit. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement. Your traditional benefit remains unchanged.
This monthly income is payable for your life. However, if you die sometime during the first five years of retirement, any remaining guaranteed payments would be made to your beneficiary. After all remaining guaranteed payments have been made to your beneficiary, the monthly benefit ceases. For example, if you died three years after your retirement effective date (36 monthly payments), your beneficiary receives the 24 remaining guaranteed benefits. After that, no monthly benefit is paid.

50% Joint and Survivor Benefit

If you are married and retire at age 62 in 2018 under special early retirement with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit? Your spouse is two years younger than you and you elect a 50% joint and survivor benefit:

Traditional Income Benefit
$2,000.00 x 0.870 = $1,740.00

Initial Sustainable Income Benefit
$100.00 x 0.906 = $90.60

Total Initial Monthly Benefit
$1,740.00 + $90.60 = $1,830.60
$1,830.60 x 0.50 = $915.30

In this example, your $2,000.00 traditional income benefit is reduced by $260.00 for a 50% joint and survivor benefit (please see Table 7). Your initial sustainable income benefit of $100.00 is reduced by $9.40 for a 50% joint and survivor benefit (please see www.ctww.org). This provides you with an initial monthly benefit of $1,830.60 and a monthly benefit for the rest of your spouse's life equal to 50% of your benefit if you predecease your spouse. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement and during your spouse's life if you predecease your spouse. Your traditional income benefit remains unchanged.

75% Joint and Survivor Benefit

If you are married and retire at age 62 in 2018 under special early retirement with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit? Your spouse is two years younger than you and you elect a 75% joint and survivor benefit:

Traditional Income Benefit
$2,000.00 x 0.816 = $1,632.00

Initial Sustainable Income Benefit
$100.00 x 0.877 = $87.70

Total Initial Monthly Benefit
$1,632.00 + $87.70 = $1,719.70
$1,719.70 x 0.75 = $1,289.78

In this example, your $2,000.00 traditional income benefit is reduced by $368.00 for a 75% joint and survivor benefit (please see Table 7). Your initial sustainable benefit of $100.00 is reduced by $12.30 for a 75% joint and survivor benefit (please see www.ctww.org). This provides you with an initial monthly benefit of $1,719.70 and a monthly benefit for the rest of your spouse's life of 75% of the amount payable to you if you predecease your spouse. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement and during your spouse's life if you predecease your spouse. Your traditional income benefit remains unchanged.

100% Joint and Survivor Benefit

If you are married and retire at age 62 in 2018 under special early retirement with a traditional income benefit of $2,000.00 and a sustainable income benefit of $100.00, what is your initial monthly benefit? Your spouse is two years younger than you and you elect a 100% joint and survivor benefit:

Traditional Income Benefit
$2,000.00 x 0.770 = $1,540.00

Initial Sustainable Income Benefit
$100.00 x 0.841 = $84.10

Total Initial Monthly Benefit
$1,540.00 + $84.10 = $1,624.10
$1,624.10 x 1.00 = $1,624.10

In this example, your $2,000.00 traditional income benefit is reduced by $460.00 for a 100% joint and survivor benefit (please see Table 7). Your initial sustainable income benefit of $100.00 is reduced by $15.90 for a 100% joint and survivor benefit (please see www.ctww.org). This provides you with an initial monthly benefit of $1,624.10 and a monthly benefit for the rest of your spouse's life of 100% of the benefit payable to you if you predecease your spouse. Your sustainable income benefit will continue to be adjusted to reflect investment performance each year during your retirement and during your spouse's life if you predecease your spouse. Your traditional benefit remains unchanged.

Table 7
Joint and Survivor Benefit Factors For All Years
Traditional Income Benefits
If you select a joint and survivor benefit option, your total monthly benefit is adjusted by the appropriate factor. Determine the age difference between you and your spouse (or other beneficiary) to the nearest year on your retirement effective date. Then select the factor based on the appropriate joint and survivor benefit option. Round up at six months.
Age Difference 50% J&S 75% J&S 100% J&S
Each additional year older
+10 Years
+9
+8
+7
+6
+5
+4
+3
+2
+1
Same age as your beneficiary
-1 Year
-2
-3
-4
-5
-6
-7
-8
-9
-10
Each additional year younger
+.005
.930
.925
.920
.915
.910
.905
.900
.895
.890
.885
.880
.875
.870
.865
.860
.855
.850
.845
.840
.835
.830
-.005
+.007
.900
.893
.886
.879
.872
.865
.858
.851
.844
.837
.830
.823
.816
.809
.802
.795
.788
.781
.774
.767
.760
-.007
+.008
.866
.858
.850
.842
.834
.826
.818
.810
.802
.794
.786
.778
.770
.762
.754
.746
.738
.730
.722
.714
.706
-.008