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For Plan Rules, please visit the Admin Manual: LinkAs part of the MDC reporting process,
Employers are required to report contributory weeks separately for any leaves of absence if the member was part-time at any point during the
MDCyear.
If the member was full-time for the entire MDC year this information should be excluded from this file since the information is reported through the MDC fileThis information is only required for Part-Time members who make contributions during a leave of absence.
To report a contributory leave through the MDC process you will need to provide the
followingfollowing information:
- Leave Type
- Leave Start Date
- Leave End Date
- Total Weeks
- Contributed for (paid)
- %
The contributory leave information can be reported using the file upload process, file builder process, or by manually entering in the information.
- of Normal earnings (% of full time equivalent)
Information provided will update the
member’s employment record with HOOPP for leaves where the member was part-time at any time within the MDC year. The information advises HOOPP of the total number of weeks for which the member made contributionsmembers record to correctly reflect the weeks of service they contributed for during the leave. This information is important since it is used to determine the member’s Early Retirement Reduction factor which plays a role in determining the member’s earliest unreduced retirement date and monthly pension.
You report the total weeks the member made contributions during the leave, and the percent of normal earnings
(i.e. parttime service ratio) prior to leave commencement.Since the hours of a part-time member can fluctuate, you should average the hours for the 10-week period leading up to the leave. Percent of normal earnings is determined as the total number of hours worked during the 10 week period, divided by the number of standard full-time hours available during the 10 week period.
Example 1:
Member is a Part-Time and worked two 7.5 hour shifts per week during the 10 week period prior to leave.
Percent of Normal Earnings = (Total “actual” hrs worked) / (Total “full-time equivalent” hrs worked) Percent of Normal Earnings = [(2 x 7.5) x (10)] / [(37.5) x (10)] x 100 = [(150) / (375)] x 100 = 40.00
Example 2:
Member is Full-Time and worked 20 hours per week during the 10 week period prior to leave.
Percent of Normal Earnings = (Total “actual” hrs worked) / (Total “full-time equivalent” hrs worked) Percent of Normal Earnings = [(20 x 10) / (37.5 x 10)] x 100 = [(200) / (375)] x 100 = 53.33
If the member was full-time for the entire MDC year, they should be excluded from this file. The weeks and contributions made for the leave period are included in the total weeks provided in the MDC data file – i.e. the MDC data file includes total weeks and contributions for both regular time and for periods of contributory leaves for the MDC year. The Leaves of Absence and MDC data files are all that are required to report this information to HOOPP for full-time members.
Note: If the leave was not previously reported to HOOPP via the Leaves of Absence process, you can report net new contributory leaves for part-time members within this file. If the leave was previously reported to HOOPP but corrections are required, you must report these corrections through the Leaves of Absence file.
Social Insurance Number
(No hyphens or spaces)
LastName
Note: If weeks for the same MDC year has already been reported through lump sum contributions via the Remittance process, they must be excluded from this total.
.
To calculate the percent of normal earnings:
- Total the hours worked during the 10 week period prior to the leave commencement and divide by 10, then
- Divide by the weekly Standard Full-Time hours, then
- Multiply by 100 (to gain the %)
Formula: (Total hours member worked during 10 weeks /10) / (weekly standard full-time hours) x 100
When you submit the data, HOOPP updates the member’s leave of absence to Contributory by taking the Total weeks Paid divided by the percent of normal earnings. This will determine what portion of the leave will be updated to Contributory.
If the member does not pay for the full leave the unpaid portion will remain as a non-contributory leave of absence. The member will be able to pay for the remainder of leave within 6 months of returning to work (through Remittance Lump Sum Contributions) or they can purchase this service later through a buyback.
The contributory leave information can be reported using the file upload process, or by manually entering the information when reporting MDC or Final data.
Example 1: Member worked a total of 150 hours during the 10 weeks prior to the leave, standard weekly full time hours in this example are 37.5.
- (150/10) / 37.5 x 100 = 40% of normal earnings
Member’s leave of absence is Jan 1, 2018 to Sept 30, 2018 (39 weeks) and member paid for the full leave. You report the contributory leave as:
- Total Weeks Paid = 15.6
- Percent Of Normal Earnings = 40%
HOOPP will update the member’s leave of absence to Contributory based on the reported information (15.6 total weeks paid ÷ 40% = 39 weeks).
The member will be credited with 15.6 weeks of contributory service and 39 weeks of eligibility service to reflect they topped up during the entire leave period.
Important to note: 100% of Normal Earning’s should only be entered when the member has worked the equivalent of Full time hours in the 10 weeks prior. (see example 2 below)
Example 2: Member worked total of 375 hours during the 10 weeks prior to the leave, standard weekly full time hours in this example are 37.5. In this example Part time member worked full time equivalent hours prior to leave.
- (375/10) / 37.5 x 100 = 100%
Member’s leave of absence is Jan 1, 2018 to Sept 30, 2018 (39 weeks) and member paid for the full leave. You report the contributory leave as:
- Total Weeks Paid = 39
- Percent Of Normal Earnings = 100%
HOOPP will update the member’s leave of absence to Contributory based on the reported information (39 total weeks paid ÷ 100% = 39 weeks).
The member will be credited with 39 weeks of contributory service and 39 weeks of eligibility service to reflect they topped up during the entire leave period.
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