Southw est Carpenters Southw est Carpenters Pension Plan Pension - - PowerPoint PPT Presentation

Southw est Carpenters Southw est Carpenters Pension Plan Pension Plan

Assumptions Assumptions

Hours

1,800 per year

Contribution

Per Hour

$1.11

Per Year

$1,998

Interest Rate

7.50% per year

Mortality

1983 Male Group Annuity Table

Sample Life Expectancy

• Age 60

20.6 years

• Age 65

16.7 years

Example 1 Example 1

(26,400) (Shortfall) 27,600 Accumulated Contributions 54,000 Amount Needed at Retirement $ 500 Accrued Benefit 5 Years of Pension Credit at Termination 30 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Example 2 Example 2

(42,000) (Shortfall) 12,000 Accumulated Contributions 54,000 Amount Needed at Retirement $ 500 Accrued Benefit 5 Years of Pension Credit at Retirement 60 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Example 3 Example 3

(83,600) (Shortfall) 29,200 Accumulated Contributions 112,800 Amount Needed at Retirement $ 1,000 Accrued Benefit 10 Years of Pension Credit at Retirement 50 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Example 4 Example 4

(136,100) (Shortfall) 89,500 Accumulated Contributions 225,600 Amount Needed at Retirement $ 2,000 Accrued Benefit 20 Years of Pension Credit at Retirement 40 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Example 5 Example 5

(146,400) (Shortfall) 213,600 Accumulated Contributions 360,000 Amount Needed at Retirement $ 3,000 Accrued Benefit 30 Years of Pension Credit at Retirement 30 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Example 6 – Example 6 – Nonvested Termination

Nonvested Termination

9,200 Surplus 9,200 Accumulated Contributions Amount Needed at Retirement $ 400 Nonvested Accrued Benefit 4 Years of Pension Credit at Termination 30 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Summary Summary

$ (26,400) 5 1 6 5 4 3 2 Example 9,200 4 (146,400) 30 (136,100) 20 (83,600) 10 (42,000) 5 (Shortfall) / Surplus Years of Pension Credit

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $100 Benefit Accrual

Example 1 Example 1

(80,400) (Shortfall) 27,600 Accumulated Contributions 108,000 Amount Needed at Retirement $ 1,000 Accrued Benefit 5 Years of Pension Credit at Termination 30 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Example 2 Example 2

(96,000) (Shortfall) 12,000 Accumulated Contributions 108,000 Amount Needed at Retirement $ 1,000 Accrued Benefit 5 Years of Pension Credit at Retirement 60 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Example 3 Example 3

(196,400) (Shortfall) 29,200 Accumulated Contributions 225,600 Amount Needed at Retirement $ 2,000 Accrued Benefit 10 Years of Pension Credit at Retirement 50 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Example 4 Example 4

(361,700) (Shortfall) 89,500 Accumulated Contributions 451,200 Amount Needed at Retirement $ 4,000 Accrued Benefit 20 Years of Pension Credit at Retirement 40 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Example 5 Example 5

(506,400) (Shortfall) 213,600 Accumulated Contributions 720,000 Amount Needed at Retirement $ 6,000 Accrued Benefit 30 Years of Pension Credit at Retirement 30 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Example 6 – Example 6 – Nonvested Termination

Nonvested Termination

9,200 Surplus 9,200 Accumulated Contributions Amount Needed at Retirement $ 800 Nonvested Accrued Benefit 4 Years of Pension Credit at Termination 30 Entry Age

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Summary Summary

$ (80,400) 5 1 6 5 4 3 2 Example 9,200 4 (506,400) 30 (361,700) 20 (196,400) 10 (96,000) 5 (Shortfall) / Surplus Years of Pension Credit

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan

Assuming $200 Benefit Accrual

Southw est Carpenters Southw est Carpenters Pension Plan Pension Plan

Okland Okland Construction Construction

401(k) Profit Sharing Plan

Account Projections

Assumptions Assumptions

1.

Net investment return of 7.50% per year

2.

1,800 hours per year

3.

Weekly profit sharing contribution of 5.25% of pay

4.

Salary increase of 3.00% per year

5.

Elective deferrals increase annually with salary

6.

Employer matching contribution of 10%

Example 1a Example 1a

Elective Deferral of Elective Deferral of $50 per w eek in 2006 $50 per w eek in 2006

36,560 14,108 4,144 1,597 $ 260 Employer Matching Account 261,906 101,126 29,716 11,455 $ 1,866 Profit Sharing Account 378,259 30 146,053 20 42,918 10 16,543 5 $ 2,694 1 Elective Deferral Account Years in Plan

Example 1b Example 1b

Elective Deferral of Elective Deferral of $50 per w eek in 2006 $50 per w eek in 2006

33,836 13,064 3,839 1,480 $ 241 Annual Interest @ 5.0% 676,725 298,466 30 261,287 115,234 20 76,778 33,860 10 29,595 13,052 5 $ 4,820 $ 2,126 1 Total Account Total Employer Provided Years in Plan

Example 2a Example 2a

Elective Deferral of Elective Deferral of $150 per w eek in 2006 $150 per w eek in 2006

109,680 42,324 12,430 4,790 $ 780 Employer Matching Account 261,906 101,126 29,716 11,455 $ 1,866 Profit Sharing Account 1,134,775 30 438,156 20 128,753 10 49,630 5 $ 8,083 1 Elective Deferral Account Years in Plan

Example 2b Example 2b

Elective Deferral of Elective Deferral of $150 per w eek in 2006 $150 per w eek in 2006

75,318 29,080 8,545 3,294 $ 536 Annual Interest @ 5.0% 1,506,361 371,586 30 581,606 143,450 20 170,899 42,146 10 65,875 16,245 5 $ 10,729 $ 2,646 1 Total Account Total Employer Provided Years in Plan

Okland Okland Construction Construction

401(k) Profit Sharing Plan