You are entitled to a Normal Pension at the later of (a) your reaching age 65, or (b) your 5th anniversary of the date your most recent plan participation began. Pension payments will start on the first day of the month in which you attain age 65 or the month that includes the fifth anniversary of your participation date, if later, if you have made the appropriate application.
You can retire and receive a reduced pension any time after age 55 if you have 10 years of Credited Service, at least one year of which must be Credited Future Service. You are eligible for a Disability Pension at any age, if you have at least 10 years of Credited Service with 280 hours of Credited Service in the 24 months immediately preceding your Total and Permanent Disability, and (a) you are unable to engage in any employment in the carpentry trade, or (b) you are eligible for a Social Security Disability Pension.
Who Makes Contributions?
Under the terms of the Collective Bargaining Agreement between the Union and the Employers, the Employers make
contributions to the Annuity Fund on your behalf. The amount of the contribution is specified in the Collective Bargaining Agreement of each Local and may be changed from time to time. Contributions may also be made on your behalf in accordance with a reciprocal agreement with another Fund.
How is the Value of Each Individual Account Determined?
An Individual Account is established for each employee. All Employer contributions made on behalf of an Employee are credited to the Employee's Individual Account. At the end of
each fiscal year (December 31), each Employee's Individual Account is valued according to the following formula:
(1) The balance in his Individual Account at the end of the fiscal year (December 31), plus
(2) A proportionate share of the net investment earnings accumulated by the Fund during the current fiscal year based upon the Employee's beginning account balance, less any distributions or withdrawals made during the fiscal year.
To illustrate how much an Employee may have in his Individual Account at retirement age, let us assume that contributions of $3,500 per year have been given on his behalf, |
and the Fund has earned 7 per cent interest each year on investments:
In this table, you see that if you were age 35 when contributions were first made on your behalf, the total value of contributions and investment returns credited to your account
by age 62 would be $278,943 - $94,500 would be the total amount of contributions ($3,500 times 27 years), and $184,443 would be the total distribution of investment earnings.
This demonstrates how important the rate of investment return is to the Annuity Fund. The Trustees will invest the assets of the Fund with the objective of obtaining the highest
rate of return while at the same time safeguarding the value of the invested capital. At any time the value of an Employee's Individual Account will reflect any changes in the total value
of all of the securities held by the Fund.
When are you Eligible for Benefits?
You're eligible to begin receiving benefits from this Fund:
When you retire from the industry and are approved for pension benefit payments, or
Upon termination of service, that is, at the end of a period of one year for which no Employer contributions are made on your behalf, provided that you submit an affidavit stating
that you no longer intend to work as a carpenter within the jurisdiction of the Annuity Plan, or
When you become totally and permanently disabled.
You will be deemed totally and permanently disabled if:
You are entitled to Social Security Disability Benefits, or
You are entitled to a Disability Pension under the Rhode Island Carpenters Pension Plan.
Your benefits are payable to your survivor should you die before beginning to receive benefits from this Fund. If you have no surviving spouse, they will automatically be paid to
your designated beneficiary.
How Much Will Your Benefit Be?
When you have become eligible for your benefit, the amount you will receive is equal to:
The value of your Individual Account as of the last Valuation Date PLUS Employer contributions since the last Valuation Date PLUS Interest earned on your account during
the fiscal year of withdrawal. Interest is paid on the basis of a maximum of 6% per year. The sum of these three items is known as your Account Balance.
How Will Your Account Balance Be Paid?
When you become eligible to receive your benefits upon termination of service you will receive a lump sum payment of your entire Account Balance. This lump sum payment will be
made automatically if no contributions have been made to your Individual Account for 36 consecutive months and your Account Balance is less than $3,500.
When you retire or become totally and permanently disabled, your Account Balance will be paid in a lump sum. However, if your Account Balance is more than $3,500, you may elect to receive your benefits in a series of partial payments instead. You may choose the amount of each payment, but your whole Account Balance must be paid in no more than 10 payments. You may only receive one payment per year, and it must be paid between January 1 and March 31. If you ask for a partial payment which would leave less than $3,500 in your Account, you will receive that partial payment and all of the money remaining in your Account.
When your Account Balance is payable in the event of your death before receiving benefits under this plan:
If you are married when you die, your spouse will automatically receive your benefits, unless she consents in writing to payment of your benefits to an alternative beneficiary.
If you are not married when you die, your beneficiary will automatically receive your benefits.
Your spouse or beneficiary will receive your benefits in the form of a lump sum payment of your entire Account Balance.
Qualified Domestic Relations Orders
If you are divorced, benefits may be payable to your ex-spouse if required by a divorce decree giving her a right to all or a portion of your Account Balance.
Age 70 l/2 Requirement
You must begin to receive benefits no later than the April 1 following the calendar year in which you attain age 701/2
How Do You Apply For Benefits?
In order to begin collecting benefits under this Plan, you have to submit a written application to the Board of Trustees. When you are ready to apply, contact the Fund Office for the necessary forms.
How Do You Designate a Beneficiary?
If benefits are to be payable to your beneficiary according to the section entitled "How Will Your Account Balance Be Paid?" be sure to complete a beneficiary card available at the Fund Office. If you are married, your spouse is your beneficiary, unless she consents in writing to your designating an alternative. You may change your beneficiary at any time before you receive benefits. If you should die after you have begun receiving benefits under this Plan, your beneficiary will receive any remaining payments of your Account Balance in a lump sum.
If you have not designated a beneficiary, or your beneficiary dies before you, any remaining payments will be payable to the beneficiary that you designated under the Rhode Island You may change your beneficiary at any time before you receive benefits. If you should die after you have begun receiving benefits under this Plan, your beneficiary will receive any remaining payments of your Account Balance in a lump sum.
If you have not designated a beneficiary, or your beneficiary dies before you, any remaining payments will be payable to the beneficiary that you designated under the Rhode Island
Carpenters Pension Plan. If you are not survived by that beneficiary, any remaining amount will be payable to your estate.
Carpenters Pension Plan.
If you are not survived by that beneficiary, any remaining amount will be payable to your estate.
