Pension Credit and Benefit Accrual

Pension Credits

Pension Credits are earned for Hours Worked in Covered Employment in increments of 1/12 of a Pension Credit.

You cannot earn more than one Pension Credit in a calendar year and no benefit accrual is attached to less than 7/12 of a credit (less than 700 work hours) in a given year.

However, you may accumulate additional Service Pension Eligibility Credit that is used only to establish your eligibility for a Service Pension.

 

The Value of a Pension Credit (Benefit Accrual)

Each Pension Credit earned has a corresponding Benefit Amount.  The Benefit Amounts earned each year are added together and the total becomes your monthly pension benefit at retirement, provided that you have become vested. 

Beginning in 2015, the following formula is used to calculate the Benefit Amount for each credit:

Benefit Accrual Rate x Benefit Factor = Benefit Amount

 

How to Calculate the Benefit Amount

Hours worked and the amount of contributions in a calendar year can be located in your MemberXG account under Work History.

Find the Benefit Accrual Rate

Using the Benefit Accrual Rate Table, locate the number of Hours Worked in Covered Employment during the calendar year and find the Benefit Accrual Rate.

Benefit Accrual Rate Table

Hours in Covered Employment New 2021 and later Accrual Rate
0-699 None
700-799 $77.78
800-899 $88.89
900-999 $100.00
1,000-1,099 $111.11
1,100-1,199 $122.22
1,200-1,299 $133.33
1,300-1,399 $144.44
1,400-1,499 $155.56
1,500-1,599 $166.67
1,600-1,699 $177.78
1,700-1,799 $188.89
1,800-1,899 $200.00
1,900-1,999 $211.11
2,000-2,099 $222.22
2,100-2,199 $233.33
2,200 or more $244.44

Find the Benefit Factor

Next, using the Benefit Factor Table shown below, find the Benefit Factor that corresponds to your Average Hourly Contribution Rate for the given year. Your Average Hourly Contribution Rate is calculated by dividing the amount of employer contributions made to the Plan on your behalf by the number of hours you worked in Covered Employment.

Benefit Factor Table

Average Hourly Contribution Rate New 2021 and later Benefit Factor
$0.00-0.99 0.0000
$1.00-1.24 0.2000
$1.25-1.49 0.2500
$1.50-1.74 0.3000
$1.75-1.99 0.3500
$2.00-2.24 0.4000
$2.25-2.49 0.4500
$2.50-2.74 0.5000
$2.75-2.99 0.5500
$3.00-3.24 0.6000
$3.25-3.49 0.6500
$3.50-3.74 0.7000
$3.75-3.99 0.7500
$4.00-4.24 0.8000
$4.25-4.49 0.8500
$4.50-4.74 0.9000
$4.75-4.99 0.9500
$5.00 or more 1.0000

Example 1

If you work 1,800 hours in 2021 at an average rate of $4.00 per hour, the monthly benefit you will accrue will be $160.00.

$200.00 Benefit Accrual Rate x .80 Benefit Factor for 2021 = $160.00 Monthly Benefit Amount

Example 2

If you work 2000 hours in 2021 at an average rate of $5.00 per hour, the monthly benefit you will accrue will be $222.22.

$222.22 Benefit Accrual Rate x 1.0 Benefit Factor for 2021 = $222.22 Monthly Benefit Amount

Benefit Accruals 2011-2020

Participants who worked at least 1,000 hours in 2020

For Participants who were credited at least 1,000 work hours and accrued Pension Credit under the Southwest Carpenters Pension Plan during 2020, Benefit Accruals have been increased retroactively by 50% for plan years from 2011-2020.

Participants credited with at least 1,000 hours under the Nevada In-House Hospitality Agreements in 2020 or 2021 are also eligible for the retroactive increase.

Benefit Accrual Rate Table (at least 1,000 hours)

Benefit Accrual Rate Table

Hours in Covered Employment Revised Value of Benefit Accrual
(2011-2020 accrual plus 50% increase)
700-799 $58.49
800-899 $66.84
900-999 $75.00
1,000-1,099 $83.54
1,100-1,199 $91.89
1,200-1,299 $100.22
1,300-1,399 $108.59
1,400-1,499 $116.94
1,500-1,599 $125.30
1,600-1,699 $133.64
1,700-1,799 $141.99
1,800 $150.00

Benefit Factor Table (at least 1,000 hours)

Benefit Factor Table

Average Hourly Contribution Rate 2015-2020 Benefit Factor
(See Benefit Accruals for 2011-2020 below)
$0.00-0.99 0.0000
$1.00-1.24 0.2500
$1.25-1.49 0.3125
$1.50-1.74 0.3750
$1.75-1.99 0.4375
$2.00-2.24 0.5000
$2.25-2.49 0.5625
$2.50-2.74 0.6250
$2.75-2.99 0.6875
$3.00-3.24 0.7500
$3.25-3.49 0.8125
$3.50-3.74 0.8750
$3.75-3.99 0.9375
$4.00-4.24 1.0000
$4.25-4.49 1.0000
$4.50-4.74 1.0000
$4.75-4.99 1.0000
$5.00 or more 1.0000

* Participants credited with at least 1,000 hours under the Nevada In-House Hospitality Agreements in 2020 or 2021 are also eligible for the retroactive increase.

Example 3

If you worked 1,500 hours in 2020 at an average rate of $3.50 per hour, the monthly benefit you will earn in 2020 will be $109.64.

$125.30 Benefit Accrual Rate x .875 Benefit Factor for 2020 = $109.64 Monthly Benefit Amount

The Benefit Factor Table based on the Average Hourly Contribution Rate is applied to Benefit Accruals from 2015 or later.

Example 4

If you worked 1800 hours in 2011, the monthly benefit you will earn in 2011 will be $150.00.  Prior to 2015, a Benefit Factor is not applied to the Benefit Accrual.

Participants who did not work at least 1,000 hours in 2020

Benefit Accrual Rate Table (less than 1,000 hours)

Benefit Accrual Rate Table

Hours in Covered Employment Monthly Benefit Accrual During Calendar Years 2011-2020
700-799 $38.99
800-899 $44.56
900-999 $50.00
1,000-1,099 $55.69
1,100-1,199 $61.26
1,200-1,299 $66.81
1,300-1,399 $72.39
1,400-1,499 $77.96
1,500-1,599 $83.53
1,600-1,699 $89.09
1,700-1,799 $94.66
1,800 $100.00

Benefit Factor Table (less than 1,000 hours)

Benefit Factor Table

Average Hourly Contribution Rate 2015-2020 Benefit Factor
(See Benefit Accruals for 2011-2020)
$0.00-0.99 0.0000
$1.00-1.24 0.2500
$1.25-1.49 0.3125
$1.50-1.74 0.3750
$1.75-1.99 0.4375
$2.00-2.24 0.5000
$2.25-2.49 0.5625
$2.50-2.74 0.6250
$2.75-2.99 0.6875
$3.00-3.24 0.7500
$3.25-3.49 0.8125
$3.50-3.74 0.8750
$3.75-3.99 0.9375
$4.00-4.24 1.0000
$4.25-4.49 1.0000
$4.50-4.74 1.0000
$4.75-4.99 1.0000
$5.00 or more 1.0000

From 2011-2014, Benefit Accruals are based on hours alone.

Example 5

If you worked 1,500 hours in 2015 at an average rate of $3.50 per hour, the monthly benefit you will accrue will be $73.09.

$83.53 Benefit Accrual Rate x .875 Benefit Factor for 2015 = $73.09 Monthly Benefit Amount

The Benefit Factor Table based on the Average Hourly Contribution Rate is applied to Benefit Accruals from 2015 or later.

Example 6

If you worked 1800 hours in 2011, the monthly benefit you will accrue will be $100.00.  Prior to 2015, a Benefit Factor is not applied to the Benefit Accrual.

Benefit Accruals 1999-2010

Benefit Accrual rates for 1999-2010 are based on hours worked in Covered Employment only.

Benefit Accrual Rate table for 1999-2010

Benefit Accrual Rate table for 1999-2010

Hours in Covered Employment Monthly Benefit Accrual During Calendar Years 2008-2014* Monthly Benefit Accrual for 2007 Monthly Benefit Accrual 1999-2006
Under 700 None None None
700-799 $38.99 $79.72 $77.78
800-899 $44.56 $91.11 $88.89
900-999 $50.00 $102.50 $100.00
1,000-1,099 $55.69 $113.89 $111.11
1,100-1,199 $61.26 $125.28 $122.22
1,200-1,299 $66.81 $136.67 $133.33
1,300-1,399 $72.39 $148.06 $144.44
1,400-1,499 $77.96 $159.44 $155.56
1,500-1,599 $83.53 $170.83 $166.67
1,600-1,699 $89.09 $182.22 $177.78
1,700-1,799 $94.66 $193.61 $188.89
1,800 $100.00 $205.00 $200.00

 

Monthly Benefit Accruals before 1999 can be found on pages 27-29 of the SPD.