What is the VAPP?
The VAPP is a defined benefit pension plan designed to pay a monthly benefit for life when you retire and qualify. Unlike a traditional defined benefit plan, your earned benefit may increase or decrease over time based on investment performance compared to the Plan’s target return (“hurdle rate”).
When did VAPP start?
Eligible participants began earning benefits under the VAPP starting January 1, 2019.
Do I need to sign up to participate?
In most cases, no. You generally become a Participant when you start work in Covered Service for a Contributing Employer in a job classification that requires VAPP contributions. If you move between contributing employers, participation continues as long as you remain in covered work. If you’re unsure whether your job classification is covered, the Fund Office can confirm it.
Who funds the VAPP?
VAPP is funded by employer contributions made under collective bargaining agreements (or approved written participation agreements) and by investment earnings on Plan assets held in trust. Participants do not contribute to the Plan. Plan assets are used to pay benefits and reasonable administrative expenses under Trustee oversight.
How do the Legacy Plan and VAPP work together?
If you earned a Legacy benefit and also earn a VAPP benefit, the two plans operate separately, and you may have benefits payable from both at retirement. The Legacy benefit is based on service earned through the Legacy freeze date, and the VAPP benefit is based on service beginning with VAPP participation. Your vesting/service history may overlap for eligibility purposes, so it’s common for retiring participants to coordinate retirement timing and paperwork with the Fund Office.
What is the VAPP Plan Year?
The VAPP Plan Year is the calendar year (January 1-December 31). This matters because service credits and annual adjustments are calculated on a Plan Year basis, and the annual adjustment is applied on the date set by the Plan (currently described as occurring in the year following the Plan Year).
What do I need to do to start earning a benefit under the VAPP?
You do not need to take any action to start earning a benefit under the VAPP. You will begin earning a benefit automatically under the VAPP starting January 1, 2019, so long as you are working for a contributing employer in a position that requires contributions to the VAPP.
What is “Vesting,” and why does it matter?
Vesting means you’ve earned a non forfeitable right to your pension benefit. Once you’re vested, you have a permanent right to the benefit you earned under Plan rules.
When do I become vested?
You generally become vested after five (5) Years of Service for vesting purposes, which is commonly met by working at least 1,000 hours in a Plan Year (subject to Plan rules). Once vested, you have a non forfeitable right to the benefit you earned under the Plan. If you have prior Legacy service, that service may count toward vesting under VAPP as described in the SPD.
Does Legacy Plan vesting/service count toward vesting in VAPP?
Yes, the Summary Plan Description explains that a Year of Service earned under the Legacy Pension Plan prior to the Legacy freeze counts as a Year of Service for vesting purposes under the VAPP. However, Legacy “Credited Service” generally does not count as VAPP Benefit Accrual Service (except for limited eligibility purposes such as certain early/disability provisions). If you want confirmation of how your specific Legacy history applies, the Fund Office can review your record.
What is “Benefit Accrual Service”?
Benefit Accrual Service measures how much service you earn for benefit accrual in a calendar year. A full year is generally earned with 2,000 hours, and if you have 1,000–1,999 hours, you earn a prorated year based on your hours divided by 2,000. The Plan also allows prorated service in your year of hire/termination under certain rules.
How many hours do I need for a full year of Benefit Accrual Service?
A full year is generally 2,000 hours (1.0000 credit), and if you work 1,000–1,999 hours, you earn a prorated year (example: 1,000 hours = 0.5000).
Do I get credit in my year of hire or termination if I work less than 1,000 hours?
Yes, Plan rules allow partial-year credit in certain hire/termination years based on your hours.
What happens to my VAPP benefit if I leave the Plan with a vested benefit before I’m eligible to retire?
If you leave the VAPP with a vested benefit before you are eligible to retire, your VAPP benefit will continue to be adjusted annually while you are waiting to receive it. Once you are eligible to receive your benefit (and you elect to receive it), you will make a one-time and non-changeable election to continue having it adjusted annually (based on investment performance) or to have it fixed for your lifetime.
How is my VAPP benefit determined?
Your monthly benefit grows through a formula that adds what you already earned (“Accumulated Benefit”) plus what you earned this year (“Annual Service Credit”), then applies an “Annual Adjustment.” The Annual Service Credit is based on your Benefit Accrual Service and the credit rate tied to your employer group/UFCW Local 663 Collective Bargaining Agreement. The Annual Adjustment reflects how Plan investments performed compared to the hurdle rate, subject to the Plan’s cap.
What is my “Annual Service Credit Rate”?
Your accrual rate is set by your UFCW Local 663 Collective Bargaining Agreement and can vary by employer group. Your Annual Service Credit rate is determined by multiplying your Benefit Accrual Service Credit times your Benefit Rate.
What is the “Annual Adjustment”?
The Annual Adjustment is the factor used to adjust your accumulated benefit each year based on investment performance compared to the Plan’s hurdle rate.
What is the “Hurdle Rate”?
The hurdle rate is the Plan’s target rate of return used in the annual adjustment calculation. The current hurdle rate is 5.5%.
Why is the VAPP hurdle rate 5.5%?
Under IRS rules, the hurdle rate (that is, the rate of investment return used to determine whether benefits will be increased or decreased) must be reasonable and within a prescribed range to avoid additional regulations being imposed on the Plan by the IRS. The 5.5% rate falls within this acceptable range and was agreed to during bargaining.
Can my benefit go down?
Yes. If investment performance is below the hurdle rate, the Annual Adjustment factor may be less than 1.0000, which can reduce accumulated benefits under Plan rules. The Plan includes a Stabilization Reserve that may be used to offset some or all of a decrease, but use of the reserve is not guaranteed and depends on Plan conditions and Trustee decisions.
Is there a limit on how much my benefit can increase in a year?
Yes. Annual increases are capped at 3% per Plan Year.
When does the annual adjustment happen?
The annual adjustment occurs on October 1 of each Plan Year.
WCan I request a benefit statement or estimate of my VAPP pension?
Yes, Participants can request certain benefit information, including statements about whether you have a right to a benefit and what it may be at normal retirement age, generally not more than once in a 12 month period. Contact the Fund Office to request the most current estimate.
What is the Stabilization Reserve?
The Stabilization Reserve is a Plan reserve funded through special employer contributions and, in some years, excess investment returns above the annual increase cap. The Trustees may use the reserve to help reduce or eliminate decreases when investment results are below the hurdle rate. Whether and how it is used depends on reserve levels, Plan funding circumstances, and Trustee decisions.
Does the Stabilization Reserve guarantee my benefit can’t decrease?
No. Plan materials emphasize that use of the reserve is not guaranteed and depends on reserve size, funding circumstances, and Trustee decisions.
What is Normal Retirement Age under VAPP?
Normal Retirement is age 65.
Can I retire early under VAPP?
You may be eligible as early as age 52 if you have at least 15 years of Benefit Accrual Service.
Is my early retirement benefit reduced if I start before age 65?
You may be eligible to start early retirement as early as age 52 if you meet the Plan’s service requirements. If you start before normal retirement age, the Plan applies an early retirement reduction under the Summary Plan Description's formula, which reflects the longer expected payment period. If you are considering early retirement, request an estimate so you can compare start dates and payment options
If I leave covered service before I retire, do I lose my benefit?
If you are vested, you generally keep the right to a future benefit payable when you reach eligibility and apply. Your accumulated benefit may continue to receive Annual Adjustments while you are waiting to commence benefits, depending on Plan rules and the election you make when benefits begin. When you later apply, you’ll make a one time election to keep benefits variable after commencement or to take a fixed payment stream.
What payment options are available at retirement?
The Plan provides a Single Life Annuity (typical default if you are not married) and Joint & Survivor options if you are married (including 50% and 75% survivor options under Plan rules). These options affect the monthly amount because they determine whether payments continue to a surviving spouse. Upon request, the Fund Office will provide an election packet showing the available options and the dollar amount payable under each option for your circumstances.
What is the “one‑time election” at retirement (fixed vs variable)?
When benefits begin, you make a one time election to receive either (1) a fixed monthly benefit that does not receive future Annual Adjustments after commencement, or (2) a variable monthly benefit that continues to experience Annual Adjustments in retirement. This election generally cannot be changed after your Benefit Commencement Date. Because it can affect long term income predictability vs. inflation/market exposure, it’s a key retirement decision.
If I’m married, does my spouse have rights to my pension benefit?
Yes. The Plan generally requires a qualified joint & survivor form for married participants unless properly waived, and spousal consent rules apply (including signature witnessing requirements). These rules are designed to protect spouses’ survivor rights. The Fund Office will explain what forms and documentation are required for your election.
How do I set up direct deposit for my pension check?
You do have the option to sign up for direct deposit and have your check automatically deposited into your savings or checking account on the first of each month. If the first of the month falls on a holiday or weekend, your check will be deposited into your account on the business day preceding the holiday or weekend. To have your check deposited into your account, complete the Direct Deposit Form and submit it to the Fund Office.
Do I have to start my VAPP pension by a certain age (RMD rules)?
Yes. Federal rules require benefits to begin by a “Required Beginning Date” once you reach the applicable age threshold. The VAPP Summary Plan Description describes Required Beginning Date rules that reflect current law (including age 73 for many participants, depending on birth year). If you are approaching that age, contact the Fund Office so benefits can be started on time and to avoid delays.
Can my VAPP benefit be paid as a lump sum?
In certain situations, yes. If the actuarial lump sum value of a vested benefit falls within specific thresholds, the Plan may pay it as a lump sum rather than a monthly annuity. If you think your benefit this may apply to you, the Fund Office can confirm whether a lump sum applies and explain how it would be handled.
How do tax withholdings work for VAPP payments?
Pension payments are generally taxable income, and you can elect tax withholding. The website’s VAPP Forms section includes Federal Form W-4P and the Minnesota Withholding Form for participants who want withholding taken out of monthly payments. If you don’t submit withholding forms, default withholding rules may apply depending on federal and state requirements.
How long do I have to choose my payment option when I retire?
The Plan provides up to 180 days ending on the due date of your first payment (and you can generally submit elections sooner). Submitting elections early helps avoid delays in benefit commencement.
Does VAPP provide a disability benefit?
Yes. The Disability Retirement Benefit for participants who meet service requirements and who are determined to be Totally and Permanently Disabled under Plan rules (generally tied to a Social Security disability determination). Disability benefits are subject to specific eligibility criteria and may require documentation and periodic verification. Contact the Fund Office early if you believe you may qualify so they can explain steps and timelines.
What is required to qualify for a disability retirement benefit?
The Plan provides pre retirement survivor protection for a Qualified Spouse in certain circumstances, generally if you are vested and die before benefits commence. Survivor benefits may start when you would have been eligible to retire, depending on service and age rules described in the Summary Plan Description. If your spouse may need to apply, the Fund Office can provide the proper application forms and required documentation.
Is there a benefit if I die before retirement?
A pre retirement survivor benefit will be payable to your Qualified Spouse, provided the following conditions are met:
  1. Immediately prior to your death, you are Vested;
  2. You die prior to your Benefit Commencement Date; and
  3. You are a survived by a Qualified Spouse.
What is a “Break in Service”?
A Break in Service generally as a Plan Year in which you fail to be credited with at least 425 hours, with special rules in certain situations (e.g., military service).
If I have a break in service, do I lose my vesting credit?
Breaks in service can affect vesting credit if you are not yet vested. If you incur five consecutive years of breaks in service before vested, any prior vesting services will be permanently forfeited.
If I return to covered work later, do I start over?
If you then complete an additional Year of Service after your Break in Service, your Years of Service earned before the Break in Service will be reinstated unless your Break in Service is “permanent”.
Can I work after I retire and still receive my VAPP benefit?
Possibly, but the Plan includes suspension rules if you perform “Disqualifying Employment” after retirement (including an hours threshold and industry/geography tests). The Plan also has notice requirements and documentation rules. It is recommended to contact the Fund Office before starting work so you don’t accidentally trigger a suspension.
What should I do if I’m thinking about returning to work?
Notify the Plan in writing and ask for guidance before you start, because the Plan has notice requirements and may request information to determine if work is disqualified.
How do I apply for my VAPP pension?
To apply for your pension, you will need to complete an Application for Benefits Form. You should apply for your pension at least 90 days prior to your retirement date. Please complete the forms and mail along with any noted required documentation to the Fund Office.
How long does it take to process an application?
Processing may take 90 days or longer because the Fund Office must verify service and benefit amounts before payments begin. Timing can also depend on employer reporting and whether documentation is complete. Submitting your application early is the best way to avoid delays.
What is a QDRO?
A QDRO (Qualified Domestic Relations Order) is a court order that may require the Plan to pay part of a benefit to an alternate payee (often a former spouse) if it meets legal requirements.
What should I do if my pension may be divided in a divorce?
Contact the Fund Office as soon as possible to request QDRO procedures and avoid delays or mistakes that can effect benefit timing.
What if my benefit application is denied?
If your application for benefits is partly or entirely denied, you can appeal the denial to the Board of Trustees. You will have only sixty (60) days (or, in the case of a claim for Disability Benefits, one hundred eighty (180) days) after receiving the written claim denial to submit a written appeal to the Fund Office explaining why the determination should be reviewed.
How do I appeal a denied decision?
Appeals must be submitted in writing within set deadlines and the Trustees’ decision is final and binding. It is recommended to contact the Fund Office if you intend to submit an appeal.
Is the VAPP insured by the PBGC?
Yes. multiemployer pension benefits are insured by the PBGC, subject to PBGC guarantee limits and rules.
How do I change my address?
To change your mailing address, you must complete a Change of Address Form. You may also contact the Fund Office if you need a form mailed to you.
What do I need to do before retirement?
You should apply for your pension at least 90 days prior to your retirement date by completing an Application for Benefits Form and submitting it to the Fund Office. Once your Application for Benefits Form has been received by the Fund Office, additional information will be furnished to you regarding payment options available to you under the terms of the Plan as well as the dollar amount payable under each of the available payment options.
What if I am an active employee that served in the Uniformed Services (pension credit)?
You must notify the Fund Office in writing prior to or upon entry into military service. If you return to work for a Contributing Employer within the time limits described below following an honorable discharge from military service, you will be entitled to Credited Service and Vesting Service according to the following provisions.

When you are discharged from military service, you must return to work for a Contributing Employer within the following time limits in order to be eligible for the crediting of contributions and service:
  • If you were in military service for less than thirty-one (31) days, you must return to work on the next regularly scheduled workday following an eight (8) hour period after discharge.
  • If you were in military service for thirty-one (31) to one hundred eighty (180) days, you must return to work within fourteen (14) days of discharge.
  • If you were in military service for more than one hundred eighty (180) days, you must return to work within ninety (90) days of discharge.
These time limits may be extended (according to federal law) if you suffered a service-connected injury or illness.

If you return to employment with a Contributing Employer, you must:
  • Provide the Fund Office with a copy of your discharge papers within 14 days of returning to work. The discharge papers must indicate the date of induction, the date of discharge or termination of duty, and whether or not the discharge was honorable. (You must have received an honorable discharge to be eligible for benefits.)
  • Notify the Fund Office if you have returned to work, but with a different contributing employer than you were employed by at the time of your entry into military service.
How do I return to work after retirement?
If you retired and are receiving your monthly pension, you must contact the Fund Office if you return to work in the industry. You’re limited on the number of hours you can work in the industry and still continue to receive your monthly pension.
What do I do if I get a divorce?
Your pension may be considered marital property and can be assigned in a divorce settlement. It is assigned by a court order called a “Qualified Domestic Relations Order” (QDRO). A QDRO gives the divorced spouse or other dependent, called an “Alternate Payee,” their share of an asset, such as a pension or retirement plan benefit. A QDRO can be incorporated directly into a decree or judgment, but this is rare. Usually, it is a separate order and is usually entered after the divorce/separation is final. The Fund does not prepare the QDRO. This must be done by either your attorney or your spouse’s attorney and must comply with the Plan’s procedures for administering a QDRO. To assist you and your attorney in preparing a QDRO, please contact the Fund Office to request a copy of sample model language.
What happens if I pass away before retirement?
The Plan makes it possible for you to provide an income for your qualified spouse in the event you should die before retirement if you are vested for a benefit. Your qualified spouse is the person to whom you have been married throughout the twelve (12) month period preceding your death.

If you die, your qualified spouse will receive monthly survivor benefit payments for the remainder of their life. This benefit payment is called a Qualified Preretirement Survivor Annuity (“QPSA”). If you have at least 15 years of credited service, your qualified spouse may begin receiving a QPSA on or after the date at which you would have attained fifty-two (52) years of age. If you did not have 15 years of credited service at the time of your death, your surviving spouse would not be eligible to receive the QPSA benefit until the date on which you would have reached sixty-two (62) years of age.

Death Benefits after retirement depend on the form of benefit payment you choose when you began receiving your pension. If you have a qualified spouse upon retirement, the following payment options are available to you:
  • Joint & 50% Survivor Annuity
  • Joint & 75% Survivor Annuity
  • Single-Life Annuity
If you elect to receive your pension in the form of a Joint & Survivor Annuity, your qualified spouse will receive a monthly benefit for their life in the event of your death. If you elect a Single-Life Annuity, no further benefits would be payable from the Plan upon your death. If you are not married when you begin to receive your pension, the only payment option available to you is the Single-Life Annuity.