1. Can I still retire on the Southern Nevada 25 credit Service Pension?
Answer: Yes, if you qualify for such pension. After the merger (1/1/2005) all of the Service Credits you earned before the merger plus all of the hours after the merger will count in the same way towards eligibility for the 25 credit Service Pension. If you elect to take the 25 credit Service Pension, the benefits you accrue after the merger will be reduced by up to 15% and added to the benefit you accrued prior to the merger which will not be reduced.
2. Can I retire on a Southwest 30 year Service Pension using my Southern Nevada credits?
Answer: Yes, if you qualify for such pension. All of the Service Credits you earned prior to the merger plus hours you work after the merger will be added to qualify for eligibility for the Southwest 30 year Service Pension. Hours you work after the merger will earn one credit per year maximum toward the 30 year Service Pension.
3. Will I be accruing credits toward both the 25 credit Service Pension and the 30 year Service Pension?
Answer: Yes. The rules are different for both, but you will be earning both types of credits after the merger. Here is the comparison:
- Toward the 25 credit pension you will accumulate credits under the Southern Nevada rules: 1/1200 th of a service credit for every hour you work with no limit to the number you can earn in a year.
- Toward the 30 year pension you will accumulate credits under the Southwest rules: 1/12 th of a pension credit for every 100 hours you work,minimum 300 hours a year and maximum one pension credit per year.
4. What is the value of a Pension Credit earned after the merger?
Answer: Currently, the maximum value of a Southwest Pension Credit is $100 at 1,800 hours worked. That value has changed in the past and may change in the future. For 2005 and 2006, the value is $200 for 1,800 hours. If you elect the Southern Nevada 25 credit Service Pension, the benefit you earn after the merger will be reduced by up to 15% unless you qualify for the 30 year Service Pension under the Southwest Plan rules.
5. Can I use credits I earned in Southern California before the merger towards the Southern Nevada 25 credit Service Pension?
Answer: No, only hours worked in Southern Nevada count towards the Southern Nevada 25 credit Service Pension. Both Southwest and Southern Nevada credits will count towards the Southwest 30 year Service Pension.
6. I have credits in the Southern Nevada Plan but was not vested prior to the merge, how can I become vested? Do I still have the 25 credit Service Pension option?
Answer: The former Southern Nevada Plan had five year vesting at the time of the merger, and the Southwest Carpenters Plan also has five year vesting. You earn one Vesting Credit for any year in which you work 1,000 or more hours. You can earn a vesting right with a combination of pre and post merger Vesting Credits.
You can still continue to work toward eligibility for the Southern Nevada 25 credit Service Pension if you were a Southern Nevada Participant as of December 31, 2004.
7. If I had Pension Credits in Southern California before the merger, what will happen to those credits?
Answer: All credits earned prior to the merger, without a Permanent Break in Service, will count towards all types of Southwest pensions. For example, if you earned 6 Pension Credits in Southern California before the merger and then moved to Southern Nevada where you earned another 8 Service Credits prior to the merger, as of the merger you will have a total of 14 credits toward the 30 year Service Pension, or any other type of Southwest Pension.
8. If I retire under the rules of the Southwest Plan, will the benefits I accrue after the merger be worth 100% of their value?How does this work?
Answer: Yes. If you meet the eligibility rules combining your Service Credits you earned before the merger with your Pension Credits you earn after the merger and any pre merger Southern California Pension Credits for any of the Southwest Plan eligibility rules, (age and credits) the benefits will be paid at the same value as any other participant in the Southwest Plan. Here are some examples:
30 year Pension: Full, unreduced benefit will be paid for benefits accrued prior to and after the merger.
Disability: An unreduced benefit will be paid if you meet all of the rules of the Southwest Plan if your disability occurs after January 1, 2005.
Age 62: An unreduced benefit will be paid if you have a combination of 10 credits from pre merger Service Credits and pre and post merger Pension Credits under the Southwest Plan. If you only meet the 4 credit requirement of the Southern Nevada Plan, only the benefit you earned before the merger will be paid out at age 62 and the benefit you earned after the merger will be paid out when you reach age 65.
Early retirement: For every year younger than age 62 you start to receive a pension benefit, the Southern Nevada Plan reduces the benefit by 6%. The Southwest Plan reduction is only 3% per year. You need 4 credits under the Southern Nevada Plan or 10 credits and work after the merger under the Southwest Plan.
9. Are the current Pension Credits frozen at $100 in the Southwest Plan? Why?
Answer: No. The current maximum benefit accrual in the Southwest Plan is $100. You must work at least 1,800 hours for the $100 benefit accrual. For 2005 and 2006, the Board of Trustees of the Southwest Plan elected to increase the benefit accrual to $200. The Trustees may consider benefit accrual increases each year.
10. What happens to my Pension Credits when I work outside of the Southwest Regional Council of Carpenters jurisdiction?
Answer: If you work outside of the Southwest Regional Council of Carpenters jurisdiction, you may elect to complete a reciprocal request form to send those hours back (reciprocate) to the Southwest Plan in order to receive pension credit for eligibility for any Southwest Plan benefit. Only hours worked under a Southern Nevada contract will be credited towards the Southern Nevada 25 credit Service Pension. |
