Pension

Work Union - Retire Better

Overview

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.

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Participation

Participation

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.

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Vesting

Vesting

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:

You can view your Vested status in the Pension Credit screen of your MemberXG account.

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Pension Credit and Monthly Benefit Accrual

Pension Credit and Monthly Benefit Accrual

Pension Credits

The Value of a Pension Credit (Benefit Accrual)

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

How to Calculate the Benefit Amount

Find the Benefit Accrual Rate

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.

Benefit Accrual Rate Table
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
Find the Benefit Factor

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.

Benefit Factor Table
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
Example 1

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

Example 2

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

Benefit Accruals 2011-2020

Participants who worked at least 1,000 hours in 2020

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.

Benefit Accrual Rate Table (at least 1,000 hours)
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
Benefit Factor Table (at least 1,000 hours)
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
Example 3

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.

Example 4

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.

Participants who did not work at least 1,000 hours in 2020
Benefit Accrual Rate Table (less than 1,000 hours)
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
Benefit Factor Table (less than 1,000 hours)
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.

Example 5

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.

Example 6

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 Accruals 1999-2010

Benefit Accrual rates for 1999-2010 are based on hours worked in Covered Employment only.

Benefit Accrual Rate table for 1999-2010
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.

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Reciprocity

Reciprocity

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.

Money Follows the Man

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.

Partial Pensions, Pro-Rata Pensions and Unilateral Reciprocity

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.

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Retirement Eligibility for Vested Participants

Retirement Eligibility for Vested Participants

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 Normal Pension if:

A Vested Pension if:

A Regular Pension if:

An Early Retirement Pension with a reduced benefit if:

A Service Pension:

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)

Service Pension Eligibility Credit Earned for years 2021 and Later

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.

Service Pension Eligibility Credit Earned for years 1976 to 2020
(Except as shown above)

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.

The Required Beginning Date

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).

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Breaks in Service and Loss of Credit

Breaks in Service and Loss of Credit

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.

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Monthly Benefit Options

Monthly Benefit Options

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.

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Prohibited Employment after Retirement

Prohibited Employment after Retirement

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:

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Life Events Affecting Your Pension

Life Events Affecting Your Pension

Death Benefits

Disability / Military Credit

Divorce Decree and QDRO

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Claims and Appeals

Claims and Appeals

Applying for Pension Benefits (Filing a Claim)

Claims Procedures

Appeals

See the Summary Plan Description (SPD) for formal, complete rules and procedures regarding Claims and Appeals to preserve your rights to formal Appeal.

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For More Information

For More Information

Forms & Documents

Contact the Fund Office

Monday-Friday 8:00 am to 5:00 pm (PST) at:

(213) 386-8590
or
(800) 293-1370

web-pen@carpenterssw.org

Carpenters Southwest Administrative Corporation
533 South Fremont Avenue
Los Angeles, California 90071

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