Eastern Atlantic States Variable Pension Plan (VPP)
Pension Plan Year runs January 1st -December 31st
A Variable Pension Plan (VPP) is a type of pension plan where the annual accruals, both while working and in retirement, are subject to change according to the performance of the Plan’s investments.
At retirement, your Pension could be made up of 2 parts:
Annual Pension Accrual Calculation
1% of required Annual Employer Contributions made on your behalf
- For example: $20,000 Annual Employer Contribution = $200 Accrual ($20,000 x 1% = $200)
*Please note that not all Collective Bargaining Agreements have the same rates. This example for illustration purposes only.
Variable Pension Plan (VPP) Overview
1% x benefit-bearing contributions
The benefit is adjusted each year based on the Pension Plan's investment returns.
Adjustments made at end of plan year based on prior year returns (1-year lag)
Hurdle Rate is five percent (5.0%). This means that if the Fund's Investment returns are greater than 5%, your VPP benefits will increase.
5% (Benefit will not increase more than 5% in one year)
Addtional Pension Plan Details
Eastern Atlantic States Pension Plan Year runs January 1st - December 31st
- Current Vested Participants will automatically be vested in the new Pension Plan and previous Credited Service will be carried over.
- Non-Vested Philadelphia Participants with one hour of service pre-merger will be grandfathered under the current 3-year Vesting Service Rule.
- If you had Credited Service in both New Jersey and Philadelphia Funds, they will be combined.
- New Participants on or after January 1, 2023 will be subject to 5-year vesting.
- Hours on or after the merger date will be credited as follows:
¼ year Vesting Service
½ year Vesting Service
¾ year Vesting Service
1 year Vesting Service
When Can I Retire?
Normal Retirement Eligibility:
- Age 65 with 5 years of Credited Service
Early Retirement Eligibility:
- Age 55 with 10 years of Credited Service
Former Philadelphia Participants with 1-hour pre-merger are eligible to retire if they meet pre-merger early retirement rules (i.e. 52/33, 53/32, or 54/31)
Additional Plan Changes:
Disability Retirement Benefits:
- SSA disability award
- 10+ years of Credited Service
- Ceases to be an Active Participant because of disability
- Onset while Active and during a period of 10 or more Consecutive Years of Service
- Furnish all information the Board requires
- Subject to 3% age reduction factor if less than 20 years of service (21% cap)
- See Retirement Benefits and Qualifications
Unreduced Joint and Survivor Option:
- Participants retiring on or after age 65 may be eligible for an unreduced Joint and 100% Survivor form of benefit. See Types of Monthly Retirement Options
Post-Retirement Death Benefit:
- A minimum post-retirement death benefit of $10,000 is payable with respect to Normal, Early and Disabled Retirees.
- If the post-retirement death benefit accrued through the date of the merger is greater than $10,000, the higher amount will be payable. See Pension Plan Death Benefits