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 �

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $100 Benefit Accrual Example 1 Example 1 Entry Age 30 Years of Pension Credit at Termination 5 Accrued Benefit $ 500 Amount Needed at Retirement 54,000 Accumulated Contributions 27,600 (Shortfall) (26,400)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $100 Benefit Accrual Example 2 Example 2 Entry Age 60 Years of Pension Credit at Retirement 5 Accrued Benefit $ 500 Amount Needed at Retirement 54,000 Accumulated Contributions 12,000 (Shortfall) (42,000)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $100 Benefit Accrual Example 3 Example 3 Entry Age 50 Years of Pension Credit at Retirement 10 Accrued Benefit $ 1,000 Amount Needed at Retirement 112,800 Accumulated Contributions 29,200 (Shortfall) (83,600)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $100 Benefit Accrual Example 4 Example 4 Entry Age 40 Years of Pension Credit at Retirement 20 Accrued Benefit $ 2,000 Amount Needed at Retirement 225,600 Accumulated Contributions 89,500 (Shortfall) (136,100)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $100 Benefit Accrual Example 5 Example 5 Entry Age 30 Years of Pension Credit at Retirement 30 Accrued Benefit $ 3,000 Amount Needed at Retirement 360,000 Accumulated Contributions 213,600 (Shortfall) (146,400)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $100 Benefit Accrual Example 6 – Nonvested Termination Example 6 – Nonvested Termination Entry Age 30 Years of Pension Credit at Termination 4 Nonvested Accrued Benefit $ 400 Amount Needed at Retirement 0 Accumulated Contributions 9,200 Surplus 9,200

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

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $200 Benefit Accrual Example 1 Example 1 Entry Age 30 Years of Pension Credit at Termination 5 Accrued Benefit $ 1,000 Amount Needed at Retirement 108,000 Accumulated Contributions 27,600 (Shortfall) (80,400)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $200 Benefit Accrual Example 2 Example 2 Entry Age 60 Years of Pension Credit at Retirement 5 Accrued Benefit $ 1,000 Amount Needed at Retirement 108,000 Accumulated Contributions 12,000 (Shortfall) (96,000)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $200 Benefit Accrual Example 3 Example 3 Entry Age 50 Years of Pension Credit at Retirement 10 Accrued Benefit $ 2,000 Amount Needed at Retirement 225,600 Accumulated Contributions 29,200 (Shortfall) (196,400)

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

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $200 Benefit Accrual Example 5 Example 5 Entry Age 30 Years of Pension Credit at Retirement 30 Accrued Benefit $ 6,000 Amount Needed at Retirement 720,000 Accumulated Contributions 213,600 (Shortfall) (506,400)

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $200 Benefit Accrual Example 6 – Nonvested Termination Example 6 – Nonvested Termination Entry Age 30 Years of Pension Credit at Termination 4 Nonvested Accrued Benefit $ 800 Amount Needed at Retirement 0 Accumulated Contributions 9,200 Surplus 9,200

Southw est Carpenters Pension Plan Southw est Carpenters Pension Plan Assuming $200 Benefit Accrual Summary Summary Years of (Shortfall) / Pension Credit Surplus Example 1 5 $ (80,400) 2 5 (96,000) 3 10 (196,400) 4 20 (361,700) 5 30 (506,400) 6 4 9,200

Southw est Carpenters Southw est Carpenters Pension Plan Pension Plan

Okland Okland Construction Construction 401(k) Profit Sharing Plan Account Projections

Assumptions Assumptions Net investment return of 7.50% per year 1. 1,800 hours per year 2. Weekly profit sharing contribution of 3. 5.25% of pay Salary increase of 3.00% per year 4. Elective deferrals increase annually with 5. salary Employer matching contribution of 10% 6.

Example 1a Example 1a Elective Deferral of Elective Deferral of $50 per w eek in 2006 $50 per w eek in 2006 Elective Employer Profit Years Deferral Matching Sharing Account Account Account in Plan 1 $ 2,694 $ 260 $ 1,866 5 16,543 1,597 11,455 10 42,918 4,144 29,716 20 146,053 14,108 101,126 30 378,259 36,560 261,906

Example 1b Example 1b Elective Deferral of Elective Deferral of $50 per w eek in 2006 $50 per w eek in 2006 Total Annual Years Total Employer Interest Provided in Plan Account @ 5.0% 1 $ 2,126 $ 4,820 $ 241 5 13,052 29,595 1,480 10 33,860 76,778 3,839 20 115,234 261,287 13,064 30 298,466 676,725 33,836

Example 2a Example 2a Elective Deferral of Elective Deferral of $150 per w eek in 2006 $150 per w eek in 2006 Elective Employer Profit Years Deferral Matching Sharing Account Account Account in Plan 1 $ 8,083 $ 780 $ 1,866 5 49,630 4,790 11,455 10 128,753 12,430 29,716 20 438,156 42,324 101,126 30 1,134,775 109,680 261,906

Example 2b Example 2b Elective Deferral of Elective Deferral of $150 per w eek in 2006 $150 per w eek in 2006 Total Annual Employer Interest Years Total Provided @ 5.0% in Plan Account 1 $ 2,646 $ 10,729 $ 536 5 16,245 65,875 3,294 10 42,146 170,899 8,545 20 143,450 581,606 29,080 30 371,586 1,506,361 75,318

Okland Okland Construction Construction 401(k) Profit Sharing Plan