You are an “Active Participant” in the Savings Plan after you have earned at least one Credited Hour.
Your Savings Plan Account
The Savings Plan Account is designed to be an additional retirement benefit, which has no effect upon your regular pension or “Annuity Account” benefit. The basic differences between the Savings Plan Account and an “Annuity Account” under the Carpenters Pension & Annuity Plan of Philadelphia & Vicinity are as follows:
- Interest is not fixed or guaranteed in the Savings Plan.
- Savings Plan accounts are NOT guaranteed by the Pension Benefit Guaranty Corporation.
- The Savings Plan is a “defined contribution” plan for legal purposes, while the “Annuity Account” is part of a “defined benefit” plan.
- A lump sum is the only payment option for your “Basic Account” (or an inherited account from the former Local 626, 1545 or 2012 plans) under the Savings Plan.
- Your spouse must be the beneficiary for 100% of your Basic Account, unless he or she waives that right.