The Southwest Carpenters Pension Plan offers a Defined Benefit Pension to qualified participants across the jurisdiction of the Southwest Regional Council of Carpenters that includes Arizona, Southern California, Colorado, Nevada, New Mexico, Utah, Wyoming and other neighboring jurisdictions by Bargaining Agreement. See the Summary Plan Description (SPD) for complete rules.
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.
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.
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
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.
Hours in Covered Employment | New 2021 and later Accrual Rate |
---|---|
0-699 | None |
700-799 | $77.78 |
800-899 | $88.89 |
900-999 | $100.00 |
1,000-1,099 | $111.11 |
1,100-1,199 | $122.22 |
1,200-1,299 | $133.33 |
1,300-1,399 | $144.44 |
1,400-1,499 | $155.56 |
1,500-1,599 | $166.67 |
1,600-1,699 | $177.78 |
1,700-1,799 | $188.89 |
1,800-1,899 | $200.00 |
1,900-1,999 | $211.11 |
2,000-2,099 | $222.22 |
2,100-2,199 | $233.33 |
2,200 or more | $244.44 |
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.
Average Hourly Contribution Rate | New 2021 and later Benefit Factor |
---|---|
$0.00-0.99 | 0.0000 |
$1.00-1.24 | 0.2000 |
$1.25-1.49 | 0.2500 |
$1.50-1.74 | 0.3000 |
$1.75-1.99 | 0.3500 |
$2.00-2.24 | 0.4000 |
$2.25-2.49 | 0.4500 |
$2.50-2.74 | 0.5000 |
$2.75-2.99 | 0.5500 |
$3.00-3.24 | 0.6000 |
$3.25-3.49 | 0.6500 |
$3.50-3.74 | 0.7000 |
$3.75-3.99 | 0.7500 |
$4.00-4.24 | 0.8000 |
$4.25-4.49 | 0.8500 |
$4.50-4.74 | 0.9000 |
$4.75-4.99 | 0.9500 |
$5.00 or more | 1.0000 |
If you work 1,800 hours in 2021 at an average rate of $4.00 per hour, the monthly benefit you will accrue will be $160.00.
$200.00 Benefit Accrual Rate x .80 Benefit Factor for 2021 = $160.00 Monthly Benefit Amount
If you work 2000 hours in 2021 at an average rate of $5.00 per hour, the monthly benefit you will accrue will be $222.22.
$222.22 Benefit Accrual Rate x 1.0 Benefit Factor for 2021 = $222.22 Monthly Benefit Amount
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.
Hours in Covered Employment | Revised Value of Benefit Accrual (2011-2020 accrual plus 50% increase) |
---|---|
700-799 | $58.49 |
800-899 | $66.84 |
900-999 | $75.00 |
1,000-1,099 | $83.54 |
1,100-1,199 | $91.89 |
1,200-1,299 | $100.22 |
1,300-1,399 | $108.59 |
1,400-1,499 | $116.94 |
1,500-1,599 | $125.30 |
1,600-1,699 | $133.64 |
1,700-1,799 | $141.99 |
1,800 | $150.00 |
Average Hourly Contribution Rate | 2015-2020 Benefit Factor (See Benefit Accruals for 2011-2020 below) |
---|---|
$0.00-0.99 | 0.0000 |
$1.00-1.24 | 0.2500 |
$1.25-1.49 | 0.3125 |
$1.50-1.74 | 0.3750 |
$1.75-1.99 | 0.4375 |
$2.00-2.24 | 0.5000 |
$2.25-2.49 | 0.5625 |
$2.50-2.74 | 0.6250 |
$2.75-2.99 | 0.6875 |
$3.00-3.24 | 0.7500 |
$3.25-3.49 | 0.8125 |
$3.50-3.74 | 0.8750 |
$3.75-3.99 | 0.9375 |
$4.00-4.24 | 1.0000 |
$4.25-4.49 | 1.0000 |
$4.50-4.74 | 1.0000 |
$4.75-4.99 | 1.0000 |
$5.00 or more | 1.0000 |
If you worked 1,500 hours in 2020 at an average rate of $3.50 per hour, the monthly benefit you will earn in 2020 will be $109.64.
$125.30 Benefit Accrual Rate x .875 Benefit Factor for 2020 = $109.64 Monthly Benefit Amount
The Benefit Factor Table based on the Average Hourly Contribution Rate is applied to Benefit Accruals from 2015 or later.
If you worked 1800 hours in 2011, the monthly benefit you will earn in 2011 will be $150.00. Prior to 2015, a Benefit Factor is not applied to the Benefit Accrual.
Hours in Covered Employment | Monthly Benefit Accrual During Calendar Years 2011-2020 |
---|---|
700-799 | $38.99 |
800-899 | $44.56 |
900-999 | $50.00 |
1,000-1,099 | $55.69 |
1,100-1,199 | $61.26 |
1,200-1,299 | $66.81 |
1,300-1,399 | $72.39 |
1,400-1,499 | $77.96 |
1,500-1,599 | $83.53 |
1,600-1,699 | $89.09 |
1,700-1,799 | $94.66 |
1,800 | $100.00 |
Average Hourly Contribution Rate | 2015-2020 Benefit Factor (See Benefit Accruals for 2011-2020) |
---|---|
$0.00-0.99 | 0.0000 |
$1.00-1.24 | 0.2500 |
$1.25-1.49 | 0.3125 |
$1.50-1.74 | 0.3750 |
$1.75-1.99 | 0.4375 |
$2.00-2.24 | 0.5000 |
$2.25-2.49 | 0.5625 |
$2.50-2.74 | 0.6250 |
$2.75-2.99 | 0.6875 |
$3.00-3.24 | 0.7500 |
$3.25-3.49 | 0.8125 |
$3.50-3.74 | 0.8750 |
$3.75-3.99 | 0.9375 |
$4.00-4.24 | 1.0000 |
$4.25-4.49 | 1.0000 |
$4.50-4.74 | 1.0000 |
$4.75-4.99 | 1.0000 |
$5.00 or more | 1.0000 |
From 2011-2014, Benefit Accruals are based on hours alone.
If you worked 1,500 hours in 2015 at an average rate of $3.50 per hour, the monthly benefit you will accrue will be $73.09.
$83.53 Benefit Accrual Rate x .875 Benefit Factor for 2015 = $73.09 Monthly Benefit Amount
The Benefit Factor Table based on the Average Hourly Contribution Rate is applied to Benefit Accruals from 2015 or later.
If you worked 1800 hours in 2011, the monthly benefit you will accrue will be $100.00. Prior to 2015, a Benefit Factor is not applied to the Benefit Accrual.
Benefit Accrual rates for 1999-2010 are based on hours worked in Covered Employment only.
Hours in Covered Employment | Monthly Benefit Accrual During Calendar Years 2008-2014* | Monthly Benefit Accrual for 2007 | Monthly Benefit Accrual 1999-2006 |
---|---|---|---|
Under 700 | None | None | None |
700-799 | $38.99 | $79.72 | $77.78 |
800-899 | $44.56 | $91.11 | $88.89 |
900-999 | $50.00 | $102.50 | $100.00 |
1,000-1,099 | $55.69 | $113.89 | $111.11 |
1,100-1,199 | $61.26 | $125.28 | $122.22 |
1,200-1,299 | $66.81 | $136.67 | $133.33 |
1,300-1,399 | $72.39 | $148.06 | $144.44 |
1,400-1,499 | $77.96 | $159.44 | $155.56 |
1,500-1,599 | $83.53 | $170.83 | $166.67 |
1,600-1,699 | $89.09 | $182.22 | $177.78 |
1,700-1,799 | $94.66 | $193.61 | $188.89 |
1,800 | $100.00 | $205.00 | $200.00 |
Monthly Benefit Accruals before 1999 can be found on pages 27-29 of the SPD.
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.
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.
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.
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 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)
Hours Worked in Covered Employment in a Calendar Year | Service Pension Eligibility Credit Earned in the Calendar Year |
---|---|
Fewer than 300 hours | None |
300-399 | 3/12 Year |
400-499 | 4/12 Year |
500-599 | 5/12 Year |
600-699 | 6/12 Year |
700-799 | 7/12 Year |
800-899 | 8/12 Year |
900-999 | 9/12 Year |
1000-1099 | 10/12 Year |
1100-1199 | 11/12 Year |
1200-1899 | One Year |
1900-1999 | 1-1/12 Year |
2000-2099 | 1- 2/12 Year |
2100-2199 | 1- 3/12 Year |
2200 and over | 1- 4/12 Year |
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 will 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.
Hours Worked in Covered Employment in a Calendar Year | Service Pension Eligibility Credit Earned in the Calendar Year |
---|---|
Fewer than 300 hours | None |
300-399 | 3/12 Year |
400-499 | 4/12 Year |
500-599 | 5/12 Year |
600-699 | 6/12 Year |
700-799 | 7/12 Year |
800-899 | 8/12 Year |
900-999 | 9/12 Year |
1000-1099 | 10/12 Year |
1100-1199 | 11/12 Year |
1200 – and over | One Year |
For periods prior to 1976, see page 14 of the SPD or contact the Administrative Office.
If you are eligible for one of the approved types of pension, 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).
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.
When you apply to receive one of the types of pension, 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
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 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:
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.
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.
You must submit a disability affidavit within 12 months of when your disability began in order to receive the maximum credit.
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 - 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.
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.
See the Summary Plan Description (SPD) for formal, complete rules and procedures regarding Claims and Appeals to preserve your rights to formal Appeal.
WIM 2019 SPD and 2022 Plan Notice
Disability Application and Affidavit
Authorization for Electronic Deposit
Alaska Pre Medicare Retirees HRA Plan Doc and SPD
Pension Summary Plan Description 2022
Southwest Carpenters Reciprocity Form
SWRCC NM 2018 Summary Plan Description (SPD)
Pension Plan Notices 2019-2021
Pension Plan SMMs 2022-Present
Monday-Friday 8:00 am to 5:00 pm (PST) at:
(213) 386-8590
or
(800) 293-1370
Carpenters Southwest Administrative Corporation
533 South Fremont Avenue
Los Angeles, California 90071