Retirement
Pension

Overview

The Southwest Carpenters Pension Plan offers a Defined Benefit Pension to qualified participants across the jurisdiction of the Western States Regional Council of Carpenters that includes Arizona, Southern California, Colorado, Nevada, New Mexico, Utah, Wyoming, Washington, Oregon and other neighboring jurisdictions by Bargaining Agreement. See the Summary Plan Description (SPD) for complete rules.

Participation

Signatory employers submit work hours and make contributions to the Southwest Carpenters Pension Trust according to the terms of Collective Bargaining Agreements or Subscriber's Agreements that are recognized by the Board of Trustees.

Individual participation in the Southwest Carpenters Pension Plan begins by working at least 500 hours over 12 consecutive months in employment covered by an approved agreement. However, you must work enough hours in covered employment to become a Vested Participant and earn a benefit at retirement.

Vesting

When you become "Vested", your right to a Normal Pension (in the amount determined by your hours worked in covered employment) can never be lost, even if you stop working in covered employment.

You can become vested in several ways:

• By earning at least five years of Vesting Service Credit including one Hour of Service on or after January 1, 1999, without a Permanent Break in Service; or

• By earning at least 10 Vesting Service Credits without a Permanent Break in Service; or

• By earning at least 10 Pension Credits without a Permanent Break in Service (including at least 500 hours worked in Covered Employment credited toward Future Service Credit); or

• By attaining Normal Retirement Age while still an Active Participant and before your Pension Credits are cancelled by reason of a Permanent Break in Service.

• Apprentices within the Southwest Region who did not earn Pension Credit while in the early levels of their apprenticeship may still be entitled to Vesting or Service Pension Eligibility Credit within the Southwest Plan for their hours worked.

• Related Plan or Regional Plan Credit earned may be counted for vesting or service requirements of the Southwest Plan. See the SPD for details.

You can view your Vested status in the Pension Credit screen of your MemberXG account.

Pension Credit and Monthly 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) each year.
• However, you may accumulate additional Service Pension Eligibility Credit that is used only to establish your eligibility for a Service Pension.
• Hours worked and the amount of contributions in a calendar year can be located in your MemberXG account under Work History.

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

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.

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 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.

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

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

Benefit Accruals 1999-2010

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

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

Reciprocity

The Plan is a party to the International Reciprocal Agreement for Carpenters Pension Funds (the "Reciprocal Agreement") sponsored by the United Brotherhood of Carpenters and Joiners of America. The purpose of this agreement is to provide participants who work in multiple jurisdictions while engaged in their trade the opportunity to maintain or increase their benefits. Similar agreements exist for Health & Welfare Funds and Annuity Funds.

Money Follows the Man

Participants working in another jurisdiction are allowed to transfer hours worked and employer contributions to their home fund for credit toward a potential benefit. This is sometimes referred to as a "money follows the man" arrangement.

To transfer contributions, file a Reciprocity Form with the Administrative Office electing to have contributions transferred within 60 days of the commencement of employment within another jurisdiction. The transfer of hours is limited to hours worked up to one year prior to receipt of the transfer request. The Reciprocity Form is also available to complete and submit through the MemberXG Document Center.

• Carefully evaluate the terms of each plan and the length of time you will be working in the jurisdiction before requesting the transfer of contributions.
• When submitting a Reciprocity Form, it is your responsibility to know the correct name and location of the fund you want to transfer from.
• Keep records of your work in outside jurisdictions and be sure to verify that all of your work hours are transferred correctly from the coordinating fund. Incoming contributions can be viewed in the Work History screen of MemberXG.
• Incoming contributions from Reciprocity are typically transferred within 2-3 months after the work month.

Partial Pensions, Pro-Rata Pensions and Unilateral Reciprocity

The Reciprocal Agreement and other limited agreements also allow participants to request to combine pension credits earned with funds in different jurisdictions to meet pension credit or vesting credit requirements. The benefit amount paid by the Southwest Carpenters Pension Plan is determined by the value of credits earned within the Southwest plan.

Retirement Eligibility for Vested Participants

Once you become a Vested Participant, the amount of your benefit is determined by your accrued credits, the value of each credit and the type of Pension you are eligible for.

The Pension Plan provides several different types of pensions as follows:

A Normal Pension if:

• You are at least age 65; and
• You are vested with 5 or more Vesting Service Credits (including one Hour of Service on or after January 1, 1999)

A Vested Pension if:

• You are at least age 62; and
• You are vested with at least 10 or more Vesting Service Credits without a Permanent Break in Service.

A Regular Pension if:

• You are at least age 62; and
• You are vested with at least 10 Pension Credits without a Permanent Break in Service.

An Early Retirement Pension with a reduced benefit if:

• You are at least age 55 but not yet age 62; and
• You are vested with at least 10 Pension Credits without a Permanent Break in Service.

A Service Pension:

A Service Pension is an immediate, unreduced benefit based on years of service, not retirement age. The Southwest Carpenters Pension Plan currently provides for a Service Pension when a Participant earns 30 years of Service Pension Eligibility Credits. As of 2021, Service Pension Eligibility Credit is earned at the rate of 1/12 of a year for every 100 Hours Worked in Covered Employment to a maximum of 2200 hours (1 and 4/12).

Participants who were credited with at least 1,000 hours and accrued Pension Credit under the Southwest Carpenters Pension Plan during 2020 will be credited with the same Service Pension Eligibility Credits listed above for Plan Years 2011 through 2020 according to hours credited in each year. Participants who worked in Covered Employment under the Nevada In-House Hospitality Collective Bargaining Agreement would qualify if they worked at least 1,000 hours in either 2020 or 2021.

The following chart applies to Service Pension Eligibility Credit for periods before 2021.

For periods prior to 1976, see page 14 of the SPD or contact the Administrative Office.

The Required Beginning Date

If you are eligible for one of the approved types of pensions, Federal law requires you to begin your pension payments no later than April 1 following the calendar year in which you reach age: 70-1/2 (for Participants born before July 1, 1949), or 72 (for Participants born on or after July 1, 1949).

Breaks in Service and Loss of Credit

The purpose of the Plan is to provide retirement security for Carpenters who earn their living over a major portion of their working years for work in Covered Employment. For this reason, the Plan requires reasonable continuity of service.

After you become a Plan Participant, you incur a One Year Break in Service in any year that you earn less than 500 hours of service. However, as long as you have not incurred a Permanent Break in Service, you can cure a succession of One Year Breaks in Service by earning 1,000 hours of service in a calendar year.

A Permanent Break in Service occurs after 5 consecutive One Year Breaks in Service with the number of One Year Breaks in Service equal to or exceeding the number of Vesting Credits you have earned.

Monthly Benefit Options

When you apply to receive one of the types of pensions, the following forms of payment will be available to you, depending upon your personal situation. Only one form of payment may be chosen, and once payments have begun, the form cannot be changed.

• Single Life Annuity - the normal form of payment for Plan participants who are not married when they retire. The Single Life Annuity provides a monthly Pension to you for your lifetime with the guarantee that if you die before receiving the guaranteed 36 monthly payments, the remainder of the guaranteed payments will be paid to your designated beneficiary.

  If you are married, the Single Life Annuity is available only if you and your spouse have rejected the 50% Qualified Surviving Spouse Pension described below.

• 50% Qualified Surviving Spouse Pension - the normal form of payment for married Plan participants. The 50% Qualified Surviving Spouse Pension provides a monthly Pension to you for your lifetime and, after your death, a lifetime Pension for your surviving spouse. The payments to your surviving spouse will be equal to 50% of the amount you were receiving when you died, provided you have been married for at least one year before your death.

  The monthly amount is a Single Life Annuity reduced to 88% plus or minus .4% for each year your spouse is older or younger than you.

  If your spouse predeceases you, your monthly amount will "pop-up" to the value of the Single Life Annuity.

• 75% Qualified Surviving Spouse Pension - much like the 50% Qualified Surviving Spouse Pension, the 75% Qualified Surviving Spouse Pension provides a monthly Pension to you for your lifetime and, after your death, a lifetime Pension for your surviving spouse. When you die, payments equal to 75% of the payment amount you were receiving will continue to your surviving spouse for his or her lifetime, provided you have been married for at least one year before your death.

  The monthly amount is a Single Life Annuity reduced to 83% plus or minus .5% for each year your spouse is older or younger than you.

  If your spouse predeceases you, your monthly amount will "pop-up" to the value of the Single Life Annuity.

• Joint and Survivor Option - an available option if you are eligible for an Early Retirement, Regular Pension or Service Pension. The Joint and Survivor Option provides a reduced monthly Pension to you for your lifetime, with 50% or 100% of your monthly Pension continuing after your death for the lifetime of your beneficiary. You must elect the Joint and Survivor Option in writing on a form prescribed by, and filed with, the Administrative Office at least 24 months before it is to take effect.

  The monthly amount for a 50% Joint and Survivor Option is the Single Life Annuity reduced to 89% plus or minus .4% for each year your beneficiary is older or younger than you.

  The monthly amount for a 100% Joint and Survivor Option is the Single Life Annuity reduced to 80% plus or minus .6% for each year your beneficiary is older or younger than you.

  If your Pension is effective before the end of the 24-month filing period, your benefits will be paid in the normal form (Single Life Annuity) until the 24 months have elapsed.

  After the 24-month period, if your beneficiary predeceases you, your monthly benefit amount will remain at the reduced amount.

• Level Income Option - may be available if you are eligible for an Early Retirement or Service Pension. This option will increase your monthly benefit in the periods before you are eligible for Social Security Benefits (age 62) and reduces your monthly amount after you become eligible for Social Security Benefits.

  This option is only available for benefits accrued before January 1, 2014.

  This option is not available in the form of a Qualified Spouse Pension or Joint and Survivor.

Prohibited Employment after Retirement

• The Pension Trust is intended to provide income to its retired participants and requires that retirees declare their intentions to stop working in the building and construction industry before they begin receiving payment. If you find after beginning your pension that you need to return to employment prohibited by the Plan, your benefits will likely be suspended. The term of the suspension depends on your age and the length of time you are employed. If you take work in Prohibited Employment, you must notify the Administrative Office in writing within 15 days after you start work.
• If you retire before reaching age 65, you must withdraw completely and refrain from any employment or activity in the building and construction industry anywhere, including self-employment.
• If you retire at or after reaching age 65, but before April 1^st in the year you are age 70½, you are permitted to work no more than 40 hours in a calendar month in the same industry, in the same trade or craft, in the geographical areas of the Southwest Plan.
• After April 1st in the year you are age 70½, there are no restrictions on the type, duration or location of the work you may perform while receiving Pension payments from the Plan.

The following are common categories of Prohibited Employment:

• Owner/Management positions for a construction-related business.
• Administrative support positions for a construction-related business.
• Positions that require non-incidental visitation to construction job sites.
• Consultant positions with construction-related businesses.
• Positions that require use of tools and skills used before retirement.

Life Events Affecting Your Pension

Death Benefits

• Before Retirement - Pre-retirement benefits are paid on behalf of vested participants who die before they have had the chance to draw their benefits. When this happens, the Trust pays benefits according to Plan rules: either as a lifetime payment to a surviving spouse, or 36 monthly payments to a non-spouse or a spouse who elects this option.

  You should keep a valid Beneficiary Designation Form on file with the Administrative Office. This will allow the Administrative Office to identify who is entitled to the available benefits. However, Plan rules dictate that your legal spouse will automatically be considered your Beneficiary for Pension benefits.

• After Retirement - Post-retirement benefits are determined by the option you select at retirement. If you are married when you retire, your spouse will be your beneficiary unless you both elect otherwise. The 50% Qualified Surviving Spouse Pension is the default option for married participants. If your pension is paid as a Qualified Surviving Spouse Pension, your spouse will receive a lifetime pension upon your death.

  Your spouse cannot be removed as your beneficiary once the Qualified Surviving Spouse Pension commences, even if you are later divorced. However, if your spouse's death precedes yours, your pension will be adjusted to the amount you would have received had you elected the Single-Life Annuity.

Disability / Military Credit

• Temporary Disability - if you become temporary disabled, Pension Credit may be granted for periods of disability provided the disability commenced within 90 days following the date you last worked in Covered Employment, and you meet one of the following conditions:

  • The period of disability is one for which Workers' Compensation Temporary Disability benefits are paid (or which constituted a valid waiting period for such benefits).

  • The period of disability entails hospital confinement as a registered bed patient, up to a maximum of 26 weeks per disability.

    To apply for the credit, forward copies of your check stubs for temporary disability or proof of hospital confinement along with a completed Affidavit for Pension Credit During Periods of Temporary Disability to the Administrative Office.

    Pension Credit may be granted for periods of such temporary disability at the rate of 40 hours per week (less 8 hours for each Carpenter Union holiday in the week) up to a maximum of 1,200 hours per calendar year.

• Military Pension Credit - Pension Credit may be granted for periods of Military Service; however, as the rules for crediting military service are complex, we recommend that you contact the Administrative Office before you leave and after you return from military service.

Divorce Decree and QDRO

• Divorce Decree - if you divorce, you must promptly notify the Administrative Office of your divorce and provide a complete copy of the divorce decree and all property settlement pages. You should update your Beneficiary Designation Form after your divorce is finalized.

• Qualified Domestic Relations Order - The Retirement Equity Act of 1984 provides that the Plan must recognize any Qualified Domestic Relations Order and make payments as directed by the Order to any spouse, former spouse, child or other dependent of a Plan participant specified by the Order. A Qualified Domestic Relations Order (QDRO) is a state domestic relations order, such as a divorce decree, which creates or recognizes an alternate payee's right to, or assigns to an alternate payee the right to, receive all of or a portion of the benefits payable to a participant under the Plan and satisfies the requirements for a QDRO under federal law.

  The Trustees have adopted formal QDRO procedures for the treatment of domestic relations orders received by the Plan. You may review these procedures on this website or contact the Administrative Office.

Claims and Appeals

Applying for Pension Benefits (Filing a Claim)

• Call the Administrative Office to request an application.
• Apply at least 90 days before you want your benefit to start (Annuity Start Date).
  • Additional time may be required to verify past service credits.
• Provide the requested documentation:
  • Birth Certificate
  • Marriage Certificate
  • Divorce Decree
  • Spouse's Birth Certificate

Claims Procedures

• A "Claim for Benefits" is a:
  • Fully completed pension application.
  • Written request to reinstate a suspended benefit.
  • Written request for determination that specific employment will result in the suspension of a benefit.
  • Written request for adjustment of hours worked or pension or vesting credit.
• A claim is not merely a request for information.
• Formal Response
  • Claims will generally be decided and a response issued within 90 days.
  • Missing information may delay claim response time.

Appeals

• You have 60 days to make a formal Appeal of a denied claim.

See the Summary Plan Description (SPD) for formal, complete rules and procedures regarding Claims and Appeals to preserve your rights to formal Appeal.

Forms

• Disability Application and Affidavit
• Authorization for Electronic Deposit
• W-4P Form
• Pension Life Verification
• Southwest Carpenters Reciprocity Form
• Beneficiary Forms by Individual Fund

Documents

• Pension Summary Plan Description 2022
• 2023 Annual Funding Notice
• Pension Plan Notices 2019-2021
• Pension Plan SMMs 2022-Present

Merged Plan Documents

• WIM 2019 SPD and 2022 Plan Notice
• Alaska Pre Medicare Retirees HRA Plan Doc and SPD
• SWRCC NM 2018 Summary Plan Description (SPD)
• Pension Plan Merger Notice from CompuSys

Contact the Fund Office

Monday-Friday 8:00 am to 5:00 pm (PST) at:

• (213) 386-8590

  or

  (800) 293-1370

• web-pen@carpenterssw.org

Carpenters Southwest Administrative Corporation
533 South Fremont Avenue
Los Angeles, California 90071