Pension Overview

PENSION FUND

Mid-Atlantic Regional Carpenters Pension Plan

Pension Plan Year runs January 1st -December 31st

Your Pension Plan is a defined benefit plan, meaning it provides you with a monthly benefit after you retire based on an established formula. Your monthly benefit is calculated by applying a percentage multiplier (currently 1%) to benefit-bearing contributions payable on your behalf for Hours of Service in Covered Employment.

Annual Pension Accrual Calculation

1% of required Annual Benefit-Bearing Employer Contributions made on your behalf

For example: $6,000 Annual Benefit-Bearing Employer Contribution = $60 Accrual ($6,000 x 1% = $60)

*Please note that not all Collective Bargaining Agreements have the same rates. This example for illustration purposes only.

Elimination of the Varibale Pension Plan (VPP) and Return to Legacy Pension Plan (LPP) on January 1, 2026

The Trustees have amended the Plan to eliminate the VPP and return to the LPP for benefits accrued on or after January 1, 2026. As a result, benefits earned during 2026 and beyond will not increase or decrease each year based on the investment return of the Plan’s assets. Instead, the old LPP benefit design will apply moving forward, meaning that benefits earned during 2026 and beyond will remain the same during your career and throughout your retirement. Benefits earned under the VPP from January 1, 2020 through December 31, 2025 will continue to adjust annually, either up or down, based on the Plan’s investment return

At retirement, your Pension could be made up of these parts:

Part 1 - LPP

Legacy Pension Plan (LPP) Accruals

These are your contributions and accruals for work prior to the Variable Pension Plan, the "Legacy Pension Plan," or "LPP," is frozen will not adjust in the future like the VPP. For service before January 1, 2020.

Part 2 - VPP

Variable Pension Plan (VPP) Accruals

The annual VPP accruals, both while working and in retirement, are subject to change depending on the performance of the Plan's investments in comparison to a hurdle rate of 5%. Service from January 1, 20220 through December 31, 2025

Part 3 - LPP

Current Pension Plan Accrual

The Current Pension Plan Accrual Formula is not changing. It is equal to 1% of benefit-bearing employer contributions made on your behalf. Accruals are for service on or after January 1, 2026, and are not subject to investment gains or losses.

Pension Plan Change FAQs

What is changing in the Pension Plan?

The Trustees have amended the Pension Plan to remove the Variable Pension Plan (VPP) adjustment component for benefits accrued on and after January 1, 2026. As a result, benefits earned during 2026 and beyond will not increase or decrease each year based on the investment return of the Plan’s assets. Instead, the old LPP benefit design will apply moving forward, meaning that benefits earned during 2026 and beyond will remain the same during your career and throughout your retirement.

Why did I receive a notice in the mail?

What happens to the benefits I’ve already earned under the VPP?

Will the benefits I accrue in the future be reduced if investment returns are below the 5% Hurdle Rate?

Does this change my current benefit accrual rate?

What is the formula for my entire benefit?

Your benefit formula will be the combination of three parts: (1) the LPP formula for service before January 1, 2020; (2) the VPP formula for service from January 1, 2020 – December 31, 2025; and (3) the LPP formula for service on and after January 1, 2026.

Example

Assume that your LPP benefit through December 31, 2019 is $300, your VPP benefit from January 1, 2020 through December 31, 2025 is $150, you earn $30 towards your pension benefit during 2026, and you do not work during 2027.

Further assume that the Plan’s investment return during 2025 is 5% (meaning that your VPP benefit will stay the same for the adjustment effective January 1, 2027), and the return during 2026 is 10.25%.

Under the old rules:

The $30 earned towards your pension benefit during 2026 will be added to your VPP benefit of $150, for a total VPP benefit of $180. The VPP benefit will then be adjusted based on the Plan’s investment return for 2026 of 10.25%. The adjustment factor based on this return is 1.05 ((1 + 0.1025 Market Value Return) ÷ 1.05 Hurdle Rate = 1.05 Adjustment Factor).
Applying this adjustment factor results in a new VPP benefit of $189 ($180 x 1.05 Adjustment Factor = $189), meaning that your total pension benefit effective January 1, 2028 will be $489 ($300 LPP Benefit + $189 VPP Benefit = $489).

Under the new rules:

The $30 earned towards your pension benefit during 2026 will be added to your LPP benefit of $300, for a total LPP benefit of $330. Your VPP benefit of $150 will be adjusted by the 1.05 Adjustment Factor for a resulting VPP benefit of $157.50, meaning that your total pension benefit effective January 1, 2028 will be $487.50 ($330 LPP Benefit + $157.50 VPP Benefit = $487.50).
Using the assumptions in this example, your benefit will be lower under the new rules than it would be under the old rules because the pension benefit you earned during 2026 will not increase based on the Plan’s favorable investment performance.

Please bear in mind, however, that in the case of an investment return that is lower than the 5% Hurdle Rate, your benefit will be higher under the new rules than it would be under the old rules, because the pension benefit you earned during 2026 will not decrease based on the Plan’s poor investment performance.

Download the Pension Fund Notice

Addtional Pension Plan Details

Vesting and Credited Service

Break in Service

Retirement Age

Disability Retirement Benefits

Vesting and Credited Service

Mid-Atlantic Regional Council of Carpenters Pension Fund Plan Year runs January 1st - December 31st.

Vesting Service establishes when you have a non-forfeitable entitlement to benefits under the Pension Plan. In general, you earn one (1) Year of Vesting Service for each calendar year during which you work at least 1,000 Hours in Covered Employment. You are Vested upon attaining five (5) Years of Vesting Service.

In general, working at least 1,000 hours = 1 year Vesting Service
Vested after at least 5 years of Vesting Service

Vesting Service is granted in full years only, and you may only earn one Year of Vesting Service per calendar year. You cannot earn a partial year of Vesting Service if you work less than 1,000 Hours.

Credited Service

The Pension Plan uses Credited Service, which you accrue based on the number of Hours you work in Covered Employment, to determine your eligibility for certain types of pension benefits under the Plan. You will earn one year of Future Credited Service for each Plan Year during which you work 1,000 Hours or more in Covered Employment. You will earn a fractional year of Future Credited Service in accordance with the table below:

at least 1,000 hours	1.0 year of Credited Service
900-999 hours	0.9 year of Credited Service
800-899 hours	0.8 year of Credited Service
700-799 hours	0.7 year of Credited Service
600-699 hours	0.6 year of Credited Service
500-599 hours	0.5 year of Credited Service
400-499 hours	0.4 year of Credited Service
300-399 hours	0.3 year of Credited Service
200-299 hours	0.2 year of Credited Service
100-199 hours	0.1 year of Credited Service
fewer than 100 hours	0 Credited Service

Break in Service

Break In Service

Your Credited Service and Vesting Service may be temporarily or permanently lost if you separate from Covered Employment before you are Vested. This happens if you experience a Break in Service. A Break in Service occurs when you fail to work a minimum of 250 Hours in a Plan Year.

If you experience a Break in Service, you may “repair” the break before incurring a Permanent Break in Service by:

Working at least 1,000 Hours in the 12-month period after your reemployment; or
Working at least 350 Hours in the 12-month period following your reemployment and working at least 1,000 Hours in any Plan Year following your reemployment.

A Permanent Break in Service occurs if you experience five (5) consecutive Breaks in Service before becoming Vested. A Permanent Break in Service results in the permanent loss of all prior Years of Vesting Service and Credited Service.

Notwithstanding the foregoing, you will not experience a Break in Service following an absence from Covered Employment due to the following reasons:

Military service in the armed forces as long as you leave Covered Employment for qualified military service, make yourself available to return to Covered Employment within the time prescribed by law, and satisfy additional requirements as described in the Pension Fund SPD.
A leave of absence under the Family and Medical Leave Act.
Your pregnancy, birth of your child, adoption of a child. If you take leave during your pregnancy, the birth of your child, the placement of a child with you in connection with your adoption of the child, or care of your child for a period immediately after such birth or placement, you will be credited with enough Hours up to 501 to prevent a Break in Service either in the Plan Year your absence begins, if needed, or in the following Plan Year.
You become disabled and are not able to work in the carpenters’ trade.

Retirement Age

When Can I Retire?

Normal Retirement Eligibility:

Age 62 with 5 years of Credited Service

Early Retirement Eligibility:

Age 55 with 10 years of Credited Service

Deferred Vested Pension:

Age 62 with at least 5 years of Credited Service

The Deferred Vested Pension is the only pension benefit available to Deferred Vested Participants. A Deferred Vested Participant is not eligible for an Early Retirement Pension, an Unreduced Future Service Pension, or any other type of early retirement pension benefit.

Disability Retirement Benefits

Disability Retirement Benefits:

SSA disability award
At least 10 years of Future Credited Service
Are Totally and Permanently Disabled
Ceases to be an Active Participant because of disability.
You have earned at least 200 Hours of Service in any two (2) calendar quarters during the 18 months preceding your Total and Permanent Disability. (Note: The Trustees, in their sole and absolute discretion, may waive this 200-hour service requirement if you submit medical evidence demonstrating that for the 18-month period preceding your Total and Permanent Disability you were unable to perform the normal duties of your craft as a result of a disability.)
Onset while Active and during a period of 10 or more Consecutive Years of Service
Furnish all information the Board requires

If you are eligible for and elect to receive a Total and Permanent Disability Pension, the amount of your pension will be calculated in the same manner as a Normal Retirement Pension without any reduction for retiring prior to Normal Retirement Age.

Key Terms and Definitions

Accrued Benefit

Active Participant

You become an "active" participant of the Pension Plan the first day of the Plan year within which you are credited with 350 Hours of Service.

Once you meet the initial eligibility requirement, your eligibility will continue as long as you remain an Eligible Employee and obtain at least 250 hours in each Plan Year.

The eligibility requirement is based on all hours which are credited for vesting purposes under the Plan.

Association

Beneficiary (or Designated Beneficiary)

Break-In-Service

Collective Bargaining Agreement

A written labor contract or other written agreement between the Union and the Association or an individual Employer requiring contributions to the Plan. It also means any a project labor agreement, signed stipulation with the Trustees, or any reciprocal agreement between the Trustees and another multiemployer pension fund requiring contributions to the Plan. It includes any agreement, including a project labor agreement between the United Brotherhood of Carpenters and Joiners of America and any employer, employer group, association of employers requiring contributions to the Fund.

Contribution or Contributions

Contributions, or Total Employer Contributions, means the money paid or payable into the Trust Fund by an Employer pursuant to a Collective Bargaining Agreement. Benefit Contributions and Special Funding Contributions comprise Total Employer Contributions. Benefit Contributions are the portion of Total Employer Contributions payable under a Collective Bargaining Agreement that are not Special Funding Contributions and constitute the portion of Total Employer Contributions used to calculate the monthly amount of a Participant’s Accrued Benefit (benefit-bearing contributions). Special Funding Contributions are non-benefit bearing contributions.

Covered Employment

Covered Employment means employment of an Employee by an Employer in a category covered by the Collective Bargaining Agreement and for which Contributions are required to be made to the Fund. It also means employment for which Contributions are transferred to the Fund pursuant to the United Brotherhood of Carpenters and Joiners of America International Reciprocal Agreement for Carpenters’ Pension Funds, or other reciprocal agreements recognized by the Trustees.

Deferred Vested Pension

If you are Deferred Vested Participant, you may retire with a Deferred Vested Pension upon:

Attaining age 62; and
Completing at least five (5) Years of Vesting Service.

The Deferred Vested Pension is the only pension benefit available to Deferred Vested Participants. A
Deferred Vested Participant is not eligible for an Early Retirement Pension, an Unreduced Future Service Pension, or any other type of early retirement pension benefit.

You become a Deferred Vested Participant if you fail to earn 250 Hours of Service in a Plan Year. Deferred Vested status is effective beginning the first day of the Plan Year following the Plan Year in which you fail to earn 250 Hours of Service. For example, if you failed to earn 250 Hours of Service from January 1, 2022 through December 31, 2022, you will become a Deferred Vested Participant on January 1, 2023.
You may regain active status by earning 1,000 Hours of Service in a Plan Year. Active status shall take effect beginning the first day of the Plan Year following the Plan Year in which you work 1,000 or more Hours of Service. For example, if you are Deferred Vested beginning January 1, 2022, but you work 1,000 Hours from January 1, 2022 through December 31, 2022, you will be considered an active Participant effective January 1, 2023.

If you are eligible for and elect to receive a Deferred Vested Pension, the amount of your pension will be calculated in the same manner as a Normal Retirement Pension, after which the amount of your benefit will be reduced by 0.5% for each month, if any, by which you are younger than Normal Retirement Age on your Pension Effective Date.

Your benefit may be reduced even further if you choose a form of payment that provides a survivor annuity to your spouse or Designated Beneficiary. Finally, if you earn a pension benefit under the VPP, it will continue to adjust into retirement, and, if a survivor annuity becomes payable to your spouse or Designated Beneficiary, the portion of the survivor annuity attributable to the VPP will continue to adjust as well.

Effective Date (or Pension Effective Date)

Hurdle Rate

Hour or Hour of Service

Legacy Pension

Normal Retirement Age

Normal Retirement Age means the later of age- 65 or the 5th anniversary of your participation in the Plan. However, if you are a former participant of the EDCC, your Normal Retirement Age for purposes of the benefit you earned through July 31, 2004 (the day before the effective date of the merger of the EDCC into this Plan) is the later of age 62 or the 5th anniversary of your participation under the Plan.

Qualified Domestic Relations Orders (Q.D.R.O)

A Qualified Domestic Relations Order (Q.D.R.O.) is a judgment, decree, or order made pursuant to state domestic relations law that relates to a divorce or other domestic relations proceedings which specifies an amount of the Participant's benefit to be paid to an alternate payee, and the manner of such payment.

Payment to an alternate payee may be paid in any form permitted under the Plan.

Variable Pension

Vested

Year of Vesting Service