Unlocking the POWER of your Pension

Your Pension is the cornerstone of your Retirement income. It’s designed to provide those who build a career as a Union Carpenter with a secure, dignified Retirement. Many Carpenters don’t recognize the full value of their Pension benefit, especially since most people underestimate how long they will live in Retirement.

First, some basics about your Pension Plan. A Pension is intended to be a source of financial security in Retirement that is earned through your career of hard work as a Nor Cal Carpenter. Therefore, in order to qualify for a Pension, you must reach vesting status by accumulating 5 vesting credits or 5 full eligibility credits without a Permanent break in service. You earn these credits through consistent work over a period of time.

Let’s assume you have attained vested status, and are eligible to receive a Pension in Retirement. If you’re single, you will receive a Single Life Pension, which means you will receive a monthly payment for life. If you’re married, you and your Spouse have four Payment Options – most married couples choose a Joint & Survivor Option that continues to pay a monthly Pension to a surviving Spouse after the death of the Carpenter.

For more information on how vesting works or your Pension payment options, check out our short videos from our Educate, Engage, Empower collection.

Among our videos are “Road to Retirement: Pension Vesting”...

 ... and “Pension Payment Options”.

How large will my Monthly Pension be?

As you earn benefit credits through the hours you work, the amount of your future Pension continues to grow. The more and longer you work, the larger your monthly Pension will be. Working additional years can have a big impact on your Pension. Another factor is the Payment Option you choose when you Retire – a Joint & Survivor Payment Option will result in a smaller monthly Pension than a Single Life payment – but over a longer period of time if your Spouse outlives you. So, the amount of your Pension is largely determined by you.

Carpenters who Retire with a Service Pension (30+ Nor Cal eligibility credits with no permanent breaks in service) will enjoy a substantial Pension – the average monthly Pension for those who have retired with a Service Pension since 2020 is $4,239.

How large are most Pensions?

Every Carpenter’s career is unique. Some join the Union at a young age and work their entire career as a Nor Cal Carpenter; others may have a more winding road, working in different trades, regions, serving in the military or even working in entirely different fields while putting in some time as a Nor Cal Carpenter.

With all that variation, there’s no such thing as a “typical” career. The chart below shows the average monthly Pension for a recently retired Nor Cal Carpenter based on the length of their career:

How many years will I receive a Pension?

Your Nor Cal Carpenters Pension guarantees a monthly Pension for life – or two lives, if you are married and choose a Joint & Survivor Payment Option. While no one knows their future, the fact is most Americans underestimate how long they will live. The average American man who reaches his 65th birthday can expect to live until he is 82-83 (estimates vary slightly); the average woman until 85-86. Depending on your age at Retirement, you could receive a Pension for many years – even several decades.

What’s most important to know is no matter how long you may live in Retirement, your Pension is still valuable. Let’s look at some hypothetical examples for Carpenters retiring today:

Carl & Cassie Carpenter	Pete Piledriver	Dom & Dina Drywaller
33 Year career, with 30 full Eligibility Credits earned	24 Year career, with 20 full Eligibility Credits earned	15 Year career, with 10 full Eligibility Credits earned
Joint & 50% Payment Option	Single Life Pension	Joint & 75% Payment Option
Retired age 56, died at 86. Spouse lived additional 2 years.	Retired age 65, died at 82.	Retired age 62, died at 72. Spouse lived additional 9 years.
Monthly Pension $5,040	Monthly Pension $4,000	Monthly Pension $1,556
Surviving Spouse monthly Pension $2,520		Surviving Spouse monthly Pension $1,167
Total Lifetime(s) Pension	Total Lifetime Pension	Total Lifetime(s) Pension
$1,814,400	$816,000	$312,756

 

As you can see, the Nor Cal Carpenter Pension is an important – and valuable – benefit. Together, your Carpenters Retirement benefits can give you financial security in Retirement.

Did you know?

• Every month, almost 20,000 Pension payments are sent out to retired Nor Cal Carpenters and/or their Spouses.
• The Fund Office distributes over $25 million in Pension payments every month.
• The Carpenters Pension Trust Fund for Northern California maintains over $5.2 billion in assets to ensure both current and future Pension benefits.