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For Plan Rules, please visit the Admin Manual: Link

The current timeline has been extended with
Info

Extension of Member Contributions for leaves of absence

Members will now have greater flexibility when making contributions towards a leave of absence. 

In April 2020, HOOPP introduced a special temporary extension on contribution payments for leaves of absence to provide more flexibility and support to our members during a challenging time. The temporary extension, which provided an additional 6 months

to

(for a total of 12 months

from

) after the end

date

of the leave

period.

to make pension contributions, will continue to apply to leaves starting on or before December 31, 2021. This extension applies to all of types of

leaves currently

leaves currently referenced in Section

4

5.

2

1 of the

Plan Text

Employer Administration Manual, including including statutory leaves, employer-approved leaves, health leaves, strikes or lockouts, and

periods of reduced services

more.

Member eligibility

All leaves of absence periods

are now

starting on or before December 31, 2021 are eligible for the special temporary extension of an additional

six

6 months

to

(for a total of 12 months

when making contributions, regardless of when the current provincial emergency ends

) for contribution payments. Leaves starting

after the end of the provincial emergency will continue to qualify for the extension.

Exception:  If the leave payments were due before March 17th or January 12th (the start of the state of emergency), this extension cannot be retroactively applied.  If the 6 months have not expired by this date, the extension can be given.

As

on or after January 1, 2022 will be due within 6 months from the end date of the leave period.

 As per the normal process, all payments continue to be due upon termination or retirement (i.e., the extension does not apply beyond the member’s employment end date).

PSPA impacts

In accordance with current rules, contributions made after April 30 in the year after the year in which the leave ended, will result in a PSPA. This will reduce the member’s RRSP room. 

Example: If the leave ended in July

2020

2021 and the payment is made in June

2021

2022, CRA will need to certify the PSPA.

  • If the member makes the contributions before April 30, it will flow through PA reporting and there is no need for a PSPA. 

  • If the member waits until after April 30, and they don’t have enough unused RRSP contribution room to accommodate the PSPA, it’s possible that they will need to deregister RRSP funds before the CRA will certify the PSPA.