Eligibility, Credits, Vesting
Eligibility
Your membership in the Pension Plan will begin on the first “entry date” that occurs after you’ve worked at least 140 hours in covered employment for 12 consecutive months. The Plan has two entry dates—January 1 and July 1.
See page 6 in the “Summary Plan Description” for more information.
Credits
Pension credits are used in determining how much your benefit will be at retirement. You earn credits by working in covered employment. You continue to earn pension credits until you stop working or retire.
Pension credits are determined by the number of hours you work in a plan year (January 1 – December 31)
- Working 1,400 hours in a plan year equals 1.0 pension credit. You cannot earn more than one pension credit in a plan year.
- The minimum number of hours is 140 to earn .10 pension credits. If you fall short of 1,400 hours, your pension credit for that year is determined based on the total number of hours worked in a calendar year divided by 1,400 and rounding to four decimal points.
- Your monthly pension amount is determined by the total number of pension credits earned when you retire.
Vesting
In order to receive a pension benefit, you must be vested in the Plan. Once you are vested, you are guaranteed a pension—even if you leave covered employment.— Normal retirement age is the later of age 62 or the fifth anniversary of your participation in the Plan.
You are credited with one year of vesting service for each Plan Year (January 1 – December 31) in which you work at least 840 hours in covered employment. Once you have earned five years of vesting service, you are vested in the Pension Plan. Listed below is the chart outlining the hours requirement to earn vesting credit.
| Hours Worked in a Plan Year |
Years of Vesting Credit Earned |
| 840 or more |
1 year |
| 700 or more, but less than 840 |
.5 year |
| 560 or more, but less than 700 |
.4 year |
| 420 or more, but less than 560 |
.3 year |
| 280 or more, but less than 420 |
.2 year |
| 140 or more, but less than 280 |
.1 year |
| Less than 140 |
0 year |
See page 11 in the “Summary Plan Description” for more information.
Pension Types
Regular Pension
You are eligible for a regular pension at age 62 if you have at least 10 pension credits.
Northern New England participants who did not work after the merger, January 1, 2006 and did not meet the merger hours/requirements are eligible to retire on a Regular Pension at age 65.
See page 14 in the “Summary Plan Description” for more information.
Service Pension
If you’ve had a long career as a New England Carpenter, you may be eligible to retire at any age on a service pension. To qualify, you need at least 30 pension credits earned under this Plan. Hours worked under the jurisdiction of another Carpenters Pension Fund and are transferred back to this Fund under a reciprocal agreement can be used towards the 30 pension credits eligibility requirement.
See page 15 in the “Summary Plan Description” for more information.
Early Pension
You can retire on an Early Retirement at age 55 with 10 pension credits. Your pension will be actuarially reduced 1% per year prior to age 62 provided you have 500 hours worked after December 31, 1997. If not, the reduction is 2% per year in most cases.
Participants working under the Woodframe contribution rate will be actuarially reduced 2% per year prior to age 62.
Northern New England participants who did not continue to work after the merger, January 1, 2006, or did not meet the merger hours requirements will be reduced 6% per year prior to age 65.
See pages 15 and 24 in the “Summary Plan Description” for more information.
Vested Pension
If you are vested in the Plan, you can retire with a vested pension. Your benefit is payable when you reach age 62, or age 65 in certain situations or when you’ve reached your fifth anniversary of Plan participation, whichever is later.
See page 15 in the “Summary Plan Description” for more information.
Disability Pension
You are eligible for a disability pension at any age if you:
- Become disabled after you’ve earned at least 15 pension credits; or
- Become disabled after you’ve earned at least 10 pension credits or 10 years of vesting service
- Worked one-tenth of a pension credit within a 36- month period prior to the date of disability.
You will be required to have your attending physician complete the Fund’s Medical report and to provide any additional medical documentation to substantiate your disability. If you are receiving Social Security Disability, you must provide a copy of your Disability Award letter. Your medical documentation will be forwarded to a physician contracted by the Fund to review your records and determine if you are considered totally and permanently disabled.
See page 16 in the “Summary Plan Description” for more information.
Partial Pension
If your years of employment have been divided between this Pension Plan and other Carpenters’ Pension Plans that have signed the National Carpenters Pro-Rata Agreement, you may be eligible for a partial pension. Contact the Fund Office for details.
See page 18 in the “Summary Plan Description” for more information.
Northern New England Pension Plan
Effective January 1, 2006, the Northern New England Carpenters Pension Fund merged with this Fund. If you did not continue to work after the merger and you are vested, please contact the Fund Office for information on your pension. The rules of the former Northern New England Carpenters Pension Fund will govern.
Benefit Options
When you apply for a pension, the Fund Office will calculate the amount of your benefit and discuss your options for payment. The Plan offers several benefit payment options:
- A Participant-Spouse Pension
- A Life Pension
- A Ten-Year Certain and Life Pension
- A Joint and Survivor Pension
- A Lump-Sum Payment, if the total value of your pension benefit is $5,000 or less
- A One-Time Re-Adjustment Allowance
See pages 19 – 21 in the “Summary Plan Description” for more information.
The Participant-Spouse Pension
If you are married when you retire from the Fund, your pension benefit is automatically payable as a Participant-Spouse Pension. This option provides a reduced monthly benefit for your lifetime. If you die before your spouse and were married for at least one year, your spouse will continue to receive a percentage of the amount (either 75% or 100%, depending on which you choose) that you were receiving before your death. The amount of the reduction in your benefit is based on the difference in age between you and your spouse and the option you elect—the higher the percentage, the greater the benefit reduction.
You may also elect a Pop-Up Option with the Participant-Spouse Pension. Under this option, if your spouse dies at any time before you do, your benefit will “pop-up” to the amount it would have been if you had elected the Life Pension instead of the Participant-Spouse Pension. If you do not elect the Pop-Up Option and your spouse dies within 24 months from your pension effective date, your pension amount will pop-up to the Life Pension Option.
Even if you are married, you may choose to reject the Participant-Spouse Pension. However, your spouse must consent to this rejection in writing, and the rejection must be bank guaranteed or witnessed by a representative from the Pension Plan.
See page 19 in the “Summary Plan Description” for more information.
Life Pension
If you are single when you retire, or if you are married and choose not to receive your pension in the form of a Participant-Spouse Pension, you may elect to receive your benefit as a Life Pension.
A Life Pension provides for payment of a monthly pension for you for your lifetime. If you die before receiving 60 monthly payments, the balance will be continued to your designated beneficiary.
If you are not married when you retire, your pension benefit will automatically be paid as a Life Pension unless you elect the Ten-Year Certain and Life Pension or the Joint and Survivor Pension, described below.
See page 21 in the “Summary Plan Description” for more information.
Ten-Year Certain and Life Pension
This option provides for payment of a reduced monthly pension for your lifetime. If you die before receiving 120 monthly payments, the balance will be paid to your designated beneficiary.
See page 21 in the “Summary Plan Description” for more information.
Joint and Survivor Pension
You may elect a Joint and Survivor Option if you are married or single when you retire. The Joint and Survivor Pension is a reduced benefit for your lifetime and in the event of your death, your designated beneficiary will receive 50%, 75%, or 100% of the amount you were receiving prior to your death. Your reduction is based on the difference in age between you and your beneficiary, and the percentage you elect to provide (50%, 75% or 100%).
See page 21 in the “Summary Plan Description” for more information.
Small Benefit Cash-out
If the total benefit you are eligible to receive is $5,000 or less, you will receive your benefit in one lump sum.
One Time Re-Adjustment Allowance
When you apply for your pension, you may elect to reduce your monthly benefit in exchange for a lump-sum payment —called a “One Time Re-adjustment Allowance”—payable upon your retirement. If you choose this option, you elect a dollar amount that cannot reduce your monthly pension benefit by more than 10% and cannot exceed $15,000.
See page 21 in the “Summary Plan Description” for more information.
Death Benefits
The Plan provides a death benefit for your beneficiary if you die before you retire if you have a minimum of 3 pension credits and worked one-tenth of a pension credit within a 36-month period prior to the date of your death. If you are married for at least one year, your spouse may elect one of the following:
- a 75% Participant Spouse death benefit— a lifetime pension benefit equal to 75% of the amount you would have received if you retired on the day before your death and elected the 75% Participant-Spouse Pension; or
- a Ten-Year Pension death benefit—a benefit calculated by multiplying your unreduced monthly pension amount by 98%. This benefit is payable for 10 years only—it is not a lifetime benefit.
If you are single or not married for one full year at the time of your death, your beneficiary is eligible to receive the Ten-Year Pension death benefit. If you are vested, other death benefits may apply if your beneficiary is not eligible for these death benefits. Refer to your Pension Fund SPD for more information.
Please make sure to keep your beneficiary up to date.
See pages 31 and 32 in the “Summary Plan Description” for more information.
