Pension Plan Change Effective January 1, 2026
The Boards of Trustees have voted to merge the Greater Pennsylvania Carpenters’ Pension Fund, the Mid-Atlantic Regional Council of Carpenters Pension Fund, and the Carpenters Local 491 Pension Plan into the Eastern Atlantic States Carpenters Pension Fund effective December 31, 2025.
As part of this merger, the Trustees have decided to eliminate the Variable Pension Plan, or VPP, adjustment component for benefits earned on or after January 1, 2026. It’s important to understand that this change will not affect your accrual rate, which will remain 1% of benefit-bearing contributions. No other plan provisions are being modified.
Any benefits you earned under the VPP, (2022 for former Northeast participants, and 2023 through 2025 for all Eastern Atlantic States participants) will continue to be adjusted up or down each year based on investment gains or losses.
However, with the elimination of the VPP going forward, benefits earned both before and after the VPP period will no longer be subject to investment-related gains or losses. Benefits earned on or after January 1, 2026 cannot be reduced due to negative investment performance. The Trustees believe these changes will result in a larger, more diversified, and more stable pension plan, while most importantly reducing risk to participants and preserving earned benefits. See below for the frequently asked questions and full copy of the Pension Plan Notice.
Pension Plan Changes Effective January 1, 2026
The Boards of Trustees have voted to merge the Greater Pennsylvania Carpenters’ Pension Fund, the Mid-Atlantic Regional Council of Carpenters Pension Fund, and the Carpenters Local 491 Pension Plan into the Eastern Atlantic States Carpenters Pension Fund effective December 31, 2025.
As part of this merger, the Trustees have decided to eliminate the Variable Pension Plan, or VPP, adjustment component for benefits earned on or after January 1, 2026. It’s important to understand that this change will not affect your accrual rate, which will remain 1% of benefit-bearing contributions. No other plan provisions are being modified.
Any benefits you earned under the VPP, (2022 for former Northeast participants, and 2023 through 2025 for all Eastern Atlantic States participants) will continue to be adjusted up or down each year based on investment gains or losses.
However, with the elimination of the VPP going forward, benefits earned both before and after the VPP period will no longer be subject to investment-related gains or losses. Benefits earned on or after January 1, 2026 cannot be reduced due to negative investment performance. The Trustees believe these changes will result in a larger, more diversified, and more stable pension plan, while most importantly reducing risk to participants and preserving earned benefits.
Pension Accrual Rate IS NOT CHANGING
1% of required Employer Contributions made on your behalf
- For example: 1000 hours x $11.29 (ER contribution rate) = $11,290 x 1% = $112.90 Pension Accrual*
*Please note that not all Collective Bargaining Agreements have the same rates. This example for illustration purposes only.