Northwest Carpenters Individual Account Pension Plan

Article 6: Administration of the Plan

6.1 Payment of Administrative Expenses and Use of Forfeitures

Plan forfeitures will be used first to pay the administrative expenses of the Plan; second to credit Individual Accounts for Employer Contributions which are due but cannot be collected through delinquency collection efforts, and for reinstating previously forfeited benefits which are recovered pursuant to Articles 2.5 or 4.5(d); and if additional sums are available, may be allocated pro rata among the Participants' Employer Contribution Subaccounts.

Any additional costs of administering the Plan in excess of forfeitures under the Plan shall be paid from investment earnings of the Plan.

6.2 Valuation of Accounts

The Trustees shall, at least annually, beginning December 31, 1981, value the Plan assets at their fair market value as of each Valuation Date. The term "fair market value" shall mean the value of the assets which takes into account the fair market value of all the investments of the Trust. The Trustees shall, in their sole discretion, and with the advice of their actuary, determine the unit value of the Fund for each Valuation Date. The unit value for the Fund shall be based upon:

the fair market value of the Fund (adjusted as necessary for forfeitures, expenses and the creation of any reserves) as of such Valuation Date;
divided by the total units in the Fund on the immediately preceding Valuation Date.

Units are allocated each calendar month to a Participant's Regular Subaccount, Supplemental Subaccount, Employer Contribution Subaccount or Elective Contribution Subaccount, based upon the Contributions made or required to be made on behalf of the Participant with respect to the applicable subaccount for the month, divided by the most recent unit value. Units are allocated each calendar month to a Participant's Rollover Subaccount based upon the Rollover Contributions made on behalf of the Participant for the month, divided by the most recent unit value.

6.3 Claims and Appeals Procedure

Claims. Claims or application for benefits under this Plan must be made in writing to the Plan Administrator on forms prescribed by the Administrator.
Denial of Claim (Other Than Claim for Disability Retirement Benefits). Any person whose application for benefits (other than Disability Retirement Benefits) under the Plan has been denied in whole or in part, or whose claim to benefits against the Fund is otherwise denied, will be notified in writing of the denial within 90 days after the Plan's receipt of the application or claim. An extension of time, not to exceed an additional 90 days, may be required by special circumstances. If so, notice of the extension, indicating the special circumstances and the date by which a final decision is expected to be rendered, will be furnished the claimant before the expiration of the initial 90-day period.
Denial of Claim for Disability Retirement Benefits. Any person whose application for Disability Retirement Benefits is denied in whole or in part will be notified in writing of the denial within a reasonable period of time, but not later than 45 days after receipt of the claim. This period may be extended for up to 30 days (to a total of 75 days) if the Plan determines that an extension of time for making the determination is necessary due to matters beyond the control of the Plan, and notifies the claimant prior to the expiration of the initial 45-day period of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision.

If the Plan determines that an additional extension of time for making the benefit determination is necessary due to matters beyond the control of the Plan, and notifies the claimant prior to the expiration of the first 30-day extension period of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision, then the period for making a benefit determination may be extended by the Plan for an additional 30 days (to a total of 105 days).

If an extension of time is due to the claimant's failure to submit the information necessary to decide a claim for Disability Retirement Benefits, the claimant will be afforded at least 45 days within which to provide the specified information. The period for making the benefit determination will be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.

If an extension is necessary to consider a claim for Disability Retirement Benefits, the notification of the extension will specifically provide:
1. An explanation of the standards on which entitlement to a benefit is based;
2. The unresolved issues that prevent a decision on the claim; and
3. The additional information needed to resolve the issues.
Notice of Denial. The notice of denial will set forth the following in a manner calculated to be understood by the claimant:
1. The specific reason or reasons for the denial;
2. Specific reference to pertinent Plan provisions on which the denial is based;
3. A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why the material or information is necessary;
4. An explanation of the Plan's claim review procedure, and the time limits applicable to such procedures, and a statement of the claimant's right to bring a civil action under ERISA § 502(a); and
5. In the case of a claim for Disability Retirement Benefits, if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion, or a statement that such a rule, guideline, protocol, or other similar criterion was relied upon in making the determination and that a copy of the same will be provided free of charge to the claimant upon request.
Notice of Appeal to Trustees. The claimant may appeal to the Board of Trustees for a review of the denial. The notice of appeal must be in writing and shall contain the following information:

NOTICE OF APPEAL

Notice is hereby given to the Trustees of the Carpenters Individual Account Pension Plan that: (claimant's name, social security number, address and telephone number) hereby appeals
from the decision or action of the Trustees or their representative (name of representative, if any) in (make a statement clearly identifying the decision or action being appealed) which decision was made or action taken on the _____ day of ____________________, 20__.

This appeal is based upon the rights accrued under the Plan by (name, address and social security number of the employee on the basis of whose accrued rights under the Plan the appeal is made, if made by a beneficiary other than such Employee).

I do (not) wish to present my appeal in person or with legal counsel in a hearing before the Board of Trustees.

Together with the Notice of Appeal, a claimant shall file with the Trustees a statement in writing containing the following additional information:
1. A statement as to each ground on which claimant believes the decision or other action appealed from to have been in error;
2. A list of the names and addresses of each person on whose testimony claimant will rely, in whole or in part, in support of the appeal, together with a short statement of the facts to which each such person is expected to testify;
3. A list of each document on which claimant will rely in support of the appeal.
In the case of a denial of Disability Retirement Benefits, notice must be filed by the claimant or his duly authorized representative with the Administrator of the Trust within 180 days after receipt of notice of a denial of Disability Retirement Benefits, and in the case of all other adverse determinations, within 60 days after receipt of notice of the determination.

The failure to file a written notice of appeal within the time period prescribed will operate as a complete waiver and will bar claimant's right to appeal, and the decision or other action of the Trustees will be final.
Scheduling of Appeal. After claimant has filed with the Trustees the required written statement in support of appeal, the Trustees will set a date for review of the appeal. The review will be conducted by the Board of Trustees, or by the Appeals Committee of the Board of Trustees, which has been allocated the authority for making a final decision in connection with the appeal.

The Trustees will review a properly filed appeal at the next regularly scheduled quarterly meeting of the Appeals Committee, unless the request for review is received by the Trustees within thirty (30) days preceding the date of such meeting. In such case, the appeal will be reviewed no later than the date of the second quarterly meeting following the Trustee's receipt of the notice of appeal, unless there are special circumstances requiring a further extension of time, in which case a benefit determination will be rendered not later than the third quarterly meeting of the Appeals Committee following the Trustee's receipt of the notice of appeal. If such an extension of time for review is required because of special circumstances, such as a request for a hearing on the appeal, then prior to the commencement of the extension, the Plan will notify the claimant in writing of the extension, describe the special circumstances and the date as of which the benefit determination will be made.
Appeal Procedures. The claimant is generally entitled to present his position and any evidence in support thereof, and may appear in person at the appeal hearing. Notwithstanding the foregoing, appeal involving issues of Plan design (incuding, but not limited to, requests to amend or waive a Plan provision) will be determined without a hearing based upon the written record. Appeals may be held telephonically.

The claimant may be represented by an attorney or by any other representative of his choosing at his own expense. The claimant may submit written comments, documents, records, and other information relating to the claim. The claimant will be provided upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his claim for benefits.

The claimant must introduce sufficient credible evidence on appeal to establish, prima facie, entitlement to the relief from the decision or other action from which the appeal is taken. The claimant will have the burden of proving his right to relief from the decision or action appealed, by a preponderance of evidence. The Trustees will review all comments, documents, records and other information submitted by the claimantrelated to the claim, regardless of whether such information was submitted or considered in the initial benefit determination. The Trustees will not afford deference to the initial adverse benefit determination.

When deciding an appeal of a claim for Disability Retirement Benefits that is based in whole or in part on a medical judgment, the Trustees will consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. Any medical or vocational expert whose advice was obtained on behalf of the Plan in connection with the adverse benefit determination will be identified to the claimant. Any health care professional engaged for the purpose of a consultation will not be an individual who was consulted in connection with the initial adverse benefit determination that is the subject of the appeal, nor the subordinate of any such individual.
Decision of Trustees. The Trustees will issue a written decision on reviewas soon as possible. In the case of a disability retirement, within five (5) days after the hearing; and on all other appeals, within sixty (60) days of the hearing. The decision will include:
1. The specific reasons for the decision, written in a manner calculated to be understood by the claimant;
2. Specific references to pertinent Plan provisions on which the decision is based;
3. A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records, and other information relevant to the claimant's claim for benefits;
4. In the case of a claim for Disability Retirement, a statement of the claimant's right to bring a civil action under ERISA § 502(a); and
5. In the case of a claim for Disability Retirement, if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion, or a statement that such a rule, guideline, protocol, or other similar criterion was relied upon in making the determination and that a copy of the same will be provided free of charge to the claimant upon request.
Review of Trustees' Decision
1. Claim for Disability Retirement Benefits. Following issuance of the written decision of the Trustees on an appeal of a claim for Disability Retirement Benefits, there
  is no further right of appeal to the Trustees or right to arbitration. Instead, the claimant may bring a civil action under ERISA § 502(a). Any action must be brought within 180 days of receipt of the Trustees' decision.
2. Claim Other Than for Disability Retirement Benefits. If the claimant is dissatisfied with the written decision of the Trustees, other than a decision on a claim for
  Disability Retirement Benefits, the claimant may request a further appeal by arbitration in accordance with the Employee Benefit Plan Claims Arbitration Rules of the American Arbitration Association. However, the request must be submitted in writing to the Trustees within 60 days of receipt of the Trustees' written decision. If the claimant fails to submit a timely request for arbitration, the decision of the Trustees shall be final and binding, and the claimant shall be barred from any further consideration of the claim. If requested, the Administrator will assist the aggrieved person in preparing the request for arbitration. In the event the matter is submitted to arbitration, the appeal will be limited to a transcript of witness testimony, the exhibits and the Findings and Decision of the Trustees (or Appeals Committee of the Trustees). The arbitrator shall not have the power or authority to add to, subtract from, or in any way modify the Plan, Trust Agreement, insurance contracts, if any, or the rules and regulations of the Trust.
  
  The expenses of arbitration will be borne equally by the appealing party, and by the Trust Fund unless otherwise ordered by the arbitrator. Each party is responsible for its own attorney fees. The decision of the arbitrator is final and binding on all parties.
3. Question on Review. The question for consideration on review of the Trustees' decision is whether, in the particular instance:
  1. The Trustees were in error upon an issue of law;
  2. The Trustees acted arbitrarily or capriciously in the exercise of their discretion; or
  3. The Trustees' findings of fact were supported by substantial evidence.

Sole and Exclusive Procedure. The procedure specified in this Article shall be the sole and exclusive procedure available to a Participant or beneficiary who is dissatisfied with a claim or eligibility determination, or benefit award, or who is adversely affected by any action of the Trustees.

6.4 Construction of the Plan

This Plan is administered by the Trustees. The Trustees may establish rules for the transaction of their business and administration of the Plan. The Trustees will have the exclusive right to construe the provisions of the Plan and to determine any and all questions arising thereunder or in connection with the administration thereof, including the right to remedy possible ambiguities and inconsistencies or omissions, and any such construction or determination by the Trustees made in good faith shall be conclusive on all persons affected thereby, provided that in any such construction or determination, the Trustees shall not discriminate in favor of any employee or class of employees.

6.5 Required Minimum Distributions

General Rules
1. Effective Date. The provisions of this Article will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.
2. Precedence. The requirements of this Article will take precedence over any inconsistent provisions of the Plan.
3. Requirements of Treasury Regulations Incorporated. All distributions required under this Article will be determined and made in accordance with the Treasury Regulations under Internal Revenue Code § 401(a)(9).
4. TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Article, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provision of the Plan that relate to Section 242(b)(2) of TEFRA.
Time and Manner of Distribution
1. Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's required beginning date, as defined in Article 4.5(b) of the Plan.
2. Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows:
  1. Distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70½, if later. (No distribution may be made other than to a surviving spouse under Article 5.1 of the Plan, if the Participant has a surviving spouse.)
  2. If there is no surviving spouse, but the Participant has designated an eligible beneficiary under Article 5.3 of the Plan, distribution shall begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.
  3. If there is no surviving spouse, and there is no designated beneficiary, distributions shall be made to the person entitled to the death benefit provided for in Article 5 of the Plan, as of September 30 of the year following the year of the Participant's death. The Participant's entire interest will be distributed by December 31 of the calendar year of the fifth anniversary of the Participant's death.
  4. If the Participant's surviving spouse is the Participant's sole designated beneficiary, and the surviving spouse dies after the Participant, but before distributions to the surviving spouse begin, this Article 6.5(b), other than Article 6.5(b)(1), will apply as if the surviving spouse were the Participant.
    
    For purposes of this Article 6.5(b) and 6.5(d), unless Article 6.5(b)(2)(iv) applies, distributions are considered to begin on the Participant's required beginning date. If Article 6.5(b)(2)(iv) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Article 6.5(b)(1). If distributions under an annuity commence to the Participant before the Participant's required beginning date (or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under Article 6.5.2(a)), the date distributions are considered to begin is the date distributions actually commence.
3. Form of Distribution. Distributions of installment/annuity payments will be made in accordance with Articles 6.5(c) and 6.5(d).
Required Minimum Distributions during Participant's Lifetime
1. Amount of Required Minimum Distribution for Each Distribution Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of:
  1. The quotient obtained by dividing the Participant's Account balance by the distribution period in the Uniform Lifetime Table set forth in Treasury Regulation § 1.401(a)(9)-9 using the Participant's age as of the Participant's birthday in the distribution calendar year; or
  2. If the Participant's sole designated beneficiary for the distribution calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's Account balance by the number in the Joint and Last Survivor Table set forth in Treasury Regulation § 1.401(a)(9)-9, using the Participant's and spouse's attained ages as of the Participant's and spouse's birthdays in the distribution calendar year.
2. Lifetime Required Minimum Distributions Continue through Year of Participant's Death. Required minimum distributions will be determined under this Article 6.5(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death.
Required Minimum Distributions After Participant's Death
1. Death on or After Date Distributions Begin
  1. Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated beneficiary, determined as follows:
    1. The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.
    2. If the Participant's surviving spouse is the Participant's sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For distribution calendar years after the year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year.
    3. If the Participant's surviving spouse is not the Participant's sole designated beneficiary, the designated beneficiary's remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year.
  2. No Designated Beneficiary. If the Participant dies on or after the date distributions begin, and there is no surviving designated beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.
2. Death Before Date ofDistribution Begins
  1. Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account balance by the remaining life expectancy of the Participant's designated beneficiary, determined as provided in Article 6.5(d)(1).
  2. No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.
  3. Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Article 6.5(b)(2), this Article 6.5(d)(2) will apply as if the surviving spouse were the Participant.
Definitions
1. Designated Beneficiary. Designated beneficiary means the individual who is designated as the beneficiary under Article 5.3 of the Plan and is the designated beneficiary under Internal Revenue Code § 401(a)(9) and Treasury Regulation § 1.401(a) (9)-1, Q&A 4.
2. Distribution Calendar Year. Distribution calendar year means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant's required beginning date. For distributions beginning after the Participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin under Article 6.5(b) of the Plan. The required minimum distribution for the Participant's first distribution calendar year will be made on or before the Participant's required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant's required beginning date occurs, will be made on or before December 31 of that distribution calendar year.
3. Life Expectancy. Life expectancy means the life expectancy as computed by use of the Single Life Table in Treasury Regulation § 1.401(a)(9)-9.
4. Participant's Account Balance. The Participant's Account balance means the balance as of the last Valuation Date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any Contributions made and allocated or forfeitures allocated to the Account balance as of dates in the valuation calendar year after the Valuation Date and decreased by distributions made in the valuation calendar year after the Valuation Date. The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.

Last Updated: 12/02/2022

Carpenters Trusts administers fringe benefits to union employees and families in Washington, Oregon, Idaho, Montana, and Wyoming. Learn more

Office Hours are 8-5 PST, M-F
Seattle Area: (206) 441-6514
Nationwide: (800) 552-0635

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