Pension Plan Changes

Pension Plan Changes

Eastern Atlantic States Pension Fund Details

Eastern Atlantic States Pension Plan Year runs January 1st - December 31st

  • For hours of service on or after January 1, 2023, you will earn vesting service as follows:

200-399 hours

¼ year Vesting Service

400-599 hours

½ year Vesting Service

600-799 hours

¾ year Vesting Service

800+ hours

1 year Vesting Service

Ongoing Pension Plan Eligibility/Breaks in Service:

  • You will need 200 hours per year beginning January 1, 2023 to maintain your eligibility
  • If you have a Break In Service (less than 200 hours per year) you will need at least 800 hours in the next calendar year to regain eligibility and cure the Break In Service

Early Retirement Pension for eligible Active Participants:

  • There is no change to the early retirement rules for accruals earned prior to January 1, 2023 for active participants
  • For accruals earned on or after January 1, 2023, the early retirement reduction factor for retirement from active status is changing from 4% reduction per year prior to age 62 to 3% reduction per year prior to age 62
  • For accruals earned on or after January 1, 2023, eligibility for unreduced early retirement benefits is changing from age 55 with the “Rule of 85” (age + years of service equal to 85) to age 55 with 30 years of service

Disability Retirement Eligibility and Reduction Factor

  • The rules for disability benefits are changing for onset dates on or after January 1, 2023.
  • Eligibility for disability retirement benefits is changing from at least five (5) years of service to at least ten (10) years of service
  • The early retirement reduction factor for disability retirement is changing from 4% per year prior to age 62 (with a maximum reduction of 28%) to 3% per year prior to age 62 (with a maximum reduction of 21%)
  • Eligibility for an unreduced disability retirement benefit is changing from at least ten (10) years of service to at least twenty (20) years of service

Eligibility and Reduction Factor for Early Commencement of Deferred Vested Pensions:

  • Eligibility for a deferred vested pension is changing from age 55 and at least ten (10) years of service to age 55 and vested
  • There is no change to the early retirement rules for accruals earned prior to January 1, 2023 for deferred vested participants
  • For accruals earned on or after January 1, 2023, the early retirement reduction factor for deferred vested pension is changing from 4% per year prior to age 62 to 6% per year prior to age 65

Post-Retirement Death Benefit

  • A single lump sum death benefit of $10,000 will be available for Normal, Early and Disabled retirees
  • Deferred vested retirees will not be eligible for the post-retirement death benefit

Pre-Retirement Survivor Benefit (Active at date of death)

  • The amount of the pre-retirement survivor benefit payable to the beneficiary of an unmarried, vested participant who is active at the time of death will be a lump sum equal to sixty (60) times the participant’s accrued monthly pension
  • The amount of the pre-retirement survivor benefit payable to the surviving spouse of a vested participant who is active at the time of death will be a lifetime pension equal to the 50% Joint & Survivor pension for deaths prior to age 62, or 100% Joint & Survivor pension for deaths on or after 62
  • For participants whose first hour of service is on or after January 1, 2023, the pre-retirement survivor benefit payable to the surviving spouse of a vested participant who is active at the time of death is a lifetime pension equal to 50% of the participant’s accrued monthly pension, with a guarantee of 120 payments

Pre-Retirement Survivor Benefit (Inactive at date of death)

  • The amount of the pre-retirement survivor benefit payable to the surviving spouse of a terminated vested participant will be an immediate lump sum equal to the actuarial equivalent of 60 monthly payments of the participant’s accrued benefit, or 50% of the Joint and 50% Survivor Annuity benefit payable at the Participant’s earliest retirement date

Eastern Atlantic States Variable Pension Plan (VPP)

There are no changes to the Variable Pension Plan (VPP) that was introduced January 1, 2022. Below are some helpful resources to how the VPP works

Click on the image to enlarge the infographic.

Variable Pension Plan FAQs