Summary Plan Description (Revised January 1, 2012)

Rule of 80 Early Retirement

Eligibility and Retirement Date

To be eligible for rule of 80 early retirement you must be:

  • Vested in this plan.
  • Age 55 through age 61.
  • Your age plus whole years of credited service in the Carpenters Retirement Plan of Western Washington equals 80 or more. For example, if you are age 55 and have 25 years of credited service in this plan, you satisfy this eligibility requirement for rule of 80 early retirement. Similarly, if you are age 58 and have 22 years of credited service in this plan, you satisfy this eligibility requirement. In certain circumstances, credited service in the Oregon Washington Carpenters-Employers Pension Plan, and the Washington, Idaho, Montana Carpenters-Employers Retirement Plan can count toward rule of 80 early retirement. Please contact Retirement Services at the Trust Office for details.
  • Have at least 750 hours of service in this plan in the three calendar years immediately preceding your retirement effective date.
  • No longer working in any type of work for an employer that contributes to the plan.

Your retirement date cannot be earlier than the later of (1) the first of any month following your 55th birthday, or (2) the first of the month following receipt of your completed Application For Retirement Benefits and Election of Retirement Benefits form.

  • For additional information about rule of 80 early retirement eligibility, please see Article 4.2.3.
Monthly Benefit

Under rule of 80 early retirement, your monthly income is your total monthly benefit, less the appropriate reduction for a joint and survivor benefit (if applicable). Joint and survivor factors are listed and described in Table 7. The following examples illustrate how to calculate a rule of 80 early retirement income. 

Calculations

Example 1

You retire at age 55 with a single life benefit of $2,000.00:

Total Monthly Benefit = Monthly Benefit
$2,000.00 = $2,000.00

In this example, your $2,000.00 total monthly benefit is not reduced because there is no early retirement reduction or a reduction for a survivor benefit. This represents a $660.00 increase over the monthly income payable under special early retirement at age 55 and a $900.00 increase over the monthly income payable under regular early retirement at age 55.

Example 2

You retire at age 55 with a total monthly benefit of $2,000.00. Your spouse is five years younger than you and you elect a 50% joint and survivor benefit:

Total Monthly Benefit x Joint and Survivor Reduction Factor = Monthly Benefit
$2,000.00 x .8550 (85.50%) = $1,710.00
$1,710.00 per month for your lifetime
$855.00 per month for your surviving spouse's lifetime

In this example, your $2,000.00 total monthly benefit is reduced by $290.00 to provide a continuing monthly income for your surviving spouse's lifetime. 

Your rule of 80 early retirement income can be increased with the pension enhancement option described here.

Retirement benefits are taxable income. Retirement Services will automatically provide you with a Form 1099-R in late January of each year for the upcoming April 15 tax deadline.

  • For additional information about the monthly benefit available under rule of 80 early retirement, please see Article 6.2.3
Post-Retirement Employment Under the Rule of 80

If you retire under the rule of 80 early retirement, are under age 65, and engage in post-retirement employment above the minimum level allowed by the plan, your monthly benefit will be suspended (please see Post-Retirement Employment and Suspension of Benefits). When your monthly benefit is reinstated, it will be recalculated at the monthly benefit level provided under regular early retirement. This represents a substantial loss in monthly income and cannot be changed. Please contact Retirement Services at the Trust Office if you have any questions regarding postretirement employment. 

  • For additional information about postretirement employment under the rule of 80, please see Article 6.2.3.

Key Point

Rule of 80 early retirement is not a good retirement option if you engage in postretirement employment above the minimum level allowed by the plan. If you are under age 65 and your retirement benefits are suspended and then reinstated, they will be reinstated under the regular early retirement guidelines which would represent a substantial loss of retirement income. Please contact Retirement Services before engaging in post-retirement employment.