The North Atlantic States Carpenters package of benefits includes two Annuity Funds servicing union carpenters in New England and New York. The Guaranteed Annuity Fund covers work performed in Massachusetts, Maine, New Hampshire, and Vermont and the Annuity Fund covers work performed in New York, Connecticut, and Rhode Island. Both funds provide a supplemental retirement income for union carpenters.
Guaranteed Annuity Fund
Established in December 1981, the Guaranteed Annuity Fund is a defined benefit cash balance pension plan. An individual account is created for you as soon as you become a Plan participant, after you work just one hour in covered employment. Your employer contributes to the Fund according to the terms of a collective bargaining agreement based on the hours of service you work; members cannot contribute to their annuity account. Your account grows from employer contributions and a guaranteed interest rate. At the Board of Trustees’ discretion, your account may be credited with a supplemental bonus that reflects favorable investment performance.
Benefit Options
If you are 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 are single, your account balance will automatically be paid to you as a Single-Life Annuity, which provides a lifetime monthly benefit for you.
- 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 equal monthly payments for your lifetime. This option provides a “refund” to your beneficiary, if you die before receiving monthly payments that equal less than the amount of your individual account benefit, at the time payments began; or
- Annual Payments of up to 25 equal payments.
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If you and your spouse, if married, reject the automatic forms of payment, you may elect one of these options instead:
Please refer to the Summary Plan Description for more information.
Loans
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, Rockland Trust services our loans. For new loans there is a one-time set-up fee of $15 and an annual fee of $90 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:
1. Medical Expenses not covered by insurance
2. Funeral Expense for a family member
3. Tuition beyond the 8th grade and/or room and board expenses
4. Mortgage delinquency on your home or to avoid eviction, or a tax lien due to pay real estate taxes
5. Health coverage under COBRA through the North Atlantic States Carpenters Health Benefits Fund
6. Home Purchase or expenses to acquire a rental unit which will be used as your principal residence
7. Home construction, reconstruction, or rehabilitation of primary residence
8. Land purchase upon which a dwelling will be built for principal residence
9. Living expenses during temporary disability provided you are not receiving workers’ compensation
Please contact the Fund Office to verify eligibility and the documentation needed to apply for a loan.
Please refer to the Summary Plan Description for more information.
Annuity Fund
Established in April 1979, the Annuity Fund is a defined contribution plan. An individual account is created for you as soon as you become a Plan participant, after your first day of work in covered employment. Your employer contributes to the Fund according to the terms of a collective bargaining agreement based on the hours of service you work, and eligible participants may make voluntary contributions to their account with after-tax dollars. The Annuity Fund does not provide a bonus, and it provides either a positive or negative interest return based on the market value of the securities held by the Fund.
Benefit Options
Distribution Options for a Profit Sharing sub-account
- Equal Monthly Installments
- Combination of Partial Lump Sum and Equal Monthly Installments
- Ten Years Certain and Life Annuity
- Rollover into an IRA
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The total value of your account will normally be paid to you in a lump sum option. You may also receive the value of your account in one of the following alternative forms of payment:
Special rules for distributions from Money Purchase sub-accounts
If you have such a money purchase sub-account with the Annuity Fund, you have the right to elect to have the portion of your account attributable to that sub-account paid to you in the other Annuity Plan benefit forms discussed above. However, if you are married when you apply to receive such sub-account and the value of your Account exceeds $5,000, then the portion of your Account that is attributable to any such sub-account will automatically be paid in the form of a 50% Joint and Survivor Annuity, unless you elect an alternate form of payment and your Spouse consents to that election, in writing. As outlined in the SPD the Annuity Fund has maintained the benefit forms available for the various Money Purchase sub-accounts, which can be summarized as follows:
- For the Rhode Island Money Purchase sub-account: 50% Joint and Survivor Annuity, 75% Joint and Survivor Annuity, Periodic Lump Sum payments, or one Lump Sum payment;
- For the Northeast Money Purchase sub-account: 50% Joint and Survivor Annuity, 75% Joint and Survivor Annuity, single Life Annuity, a Lump Sum or equal Monthly Installments over the Participant’s life expectancy; and
- Connecticut Money Purchase sub-account: 50% Joint and Survivor Annuity, 75% Joint and Survivor Annuity, 100% Joint and Survivor Annuity, Ten Years Certain and Life Annuity, a Lump Sum or equal Monthly Installments of at least $100 (and possibly higher based on age).
Please refer to the Summary Plan Description for more information.
Loans
Although the Plan is designed to enhance your financial security in retirement, you may borrow from it for specific hardship purposes. 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.
- Incurred uninsured expenses for medical care for you, your spouse or a dependent
- Accredited post-secondary education institution expenses for you, your spouse or a dependent claimed on your federal tax return for tuition
- Related educational fees, and room and board expenses for the next 12 months
- To prevent eviction from your principal residence or the foreclosure on the mortgage of your principal residence
- For the purchase of your principal residence
- Payment of burial or funeral expenses for your deceased parent, spouse, child, spouse’s parent or dependent claimed on your federal tax return
- Types of Allowable Hardship Loans:
- Fails to pay an installment of principal or interest due under the terms of the promissory note by the last day of the calendar quarter following the calendar quarter in which the installment was due
- Is subject of any bankruptcy, insolvency or debtor relief proceeding
- Dies
- Default. A participant will be considered in default of his or her Plan loan if he or she:
Members who default on their loan payments will be ineligible to borrow from the Fund a second time regardless of the reason for the default.
Please contact the Fund Office to verify eligibility and the documentation needed to apply for a loan.
Please refer to the Summary Plan Description for more information.