Established in December 1981 to provide a supplemental retirement income. When you become eligible to participate, an account is set up in your name. Your employer makes contributions to your account (you do not contribute) and the Fund provides a guaranteed interest rate on your account balance. If the Fund experiences a particularly good year, participants may be eligible for a bonus in addition to their guaranteed return.
Applying for Annuity Benefits
You are eligible to apply for your annuity benefit as follows:
- Retirement – Normal at age 62, Early at age 55 or if you are receiving a Service Pension under the New England Carpenters Pension Fund.
- Disability – Totally and permanently disabled from the Construction Industry
- Termination:
- 24-Month Withdrawal – No more than 160 hours worked within a 24-Month period provided no hours have been worked in the first month or the last three months prior to the distribution.
- 12-Month Withdrawal — No more than 160 hours worked within a 12-Month period provided no hours have been worked in the first month or the last three months prior to the distribution. One Time allowance of 50% of the account balance not to exceed $50,000 maximum.
- 3-Month Withdrawal and Facing Foreclosure — No contribution for three consecutive months and facing foreclosure. One Time withdrawal of 50% of the account balance not to exceed $50,000 maximum over lifetime allowed.
To apply for your Annuity account balance, you must submit a written application. Contact the Fund Office for the necessary forms.
Please refer to pages 17 of your “Summary Plan Description” for a complete description.
Eligibility, Credits, Vesting
If you are working in covered employment, you automatically become a participant after you’ve completed one hour of service.
As soon as you become a participant, you are fully vested in your benefit. That means the value of your benefit is nonforfeitable and belongs to you.
Benefits Options
If you’re married for at least one year, your account balance will automatically be paid to you as a 50% Participant-Spouse Benefit, which provides a lifetime monthly payment for you and then your surviving spouse.
If you’re single, your account balance will automatically be paid to you as a Single-Life Annuity, which provides a lifetime monthly benefit for you.
If you and your spouse, if married, reject the automatic forms of payment, you may elect one of these options instead:
- One lump-sum payment; or
- Up to 300 monthly payments, regardless of how long you live; or
- One or two payments per calendar year; each payment must equal at least 5% of your original account balance; or
- A cash refund annuity that provides you with a monthly payment for your lifetime and provides a “refund” to your beneficiary, if you die before receiving monthly payments that equal the lump sum value of your account.
Please refer to pages 19-21 of your “Summary Plan Description” for a complete description.
Death Benefits
If you die before you have started to receive your Annuity Fund benefit, the value of your account will be paid to your surviving spouse if you are married, or your named beneficiary if you are single.
Please refer to pages 17-18 of your “Summary Plan Description” for a complete description.
Annuity Loans
Regular Pension
Although the Plan is designed to enhance your financial security in retirement, you may borrow from it for specific purposes. If you have been a participant for at least one year, you may take out a loan from $1,000 up to 50% of the value of your account—to a maximum of $50,000. Loans are only granted for specific circumstances. You are required to repay your loan—with interest. Currently, Radius Bank services our loans. For new loans there is a one-time set-up fee of $15 and an annual fee of $80 for the life of the loan.
Members who default on their loan payments will be ineligible to borrow from the Fund a second time unless the defaulted loan is repaid, plus any accrued interest.
Reasons for Taking a Loan
You may be eligible to take a loan if you are in need of money for one of the following:
- Medical expenses not covered by insurance
- Funeral expenses for a family member
- Tuition beyond the 8th grade and/or room and board expenses
- Mortgage delinquency on your home or to avoid eviction, or a tax lien due to failure to pay real estate taxes
- Health coverage under COBRA through the New England Carpenters Health Benefits Fund
- Home purchase or construction of primary residence
- Home reconstruction or rehabilitation of primary residence
- Living expenses during temporary disability provided you are not receiving workers’ compensation.
- Expenses to acquire a rental unit which will be used as my principal residence.
Please contact the Fund Office to verify eligibility and the documentation needed to apply for a loan.
Please refer to pages 13-16 of your “Summary Plan Description” for a complete description.