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4.7 Contributions in Other Situations
Weekend Workers
Weekend workers are those employees who work 30 hours per week but are paid for 37.5 hours. Contributions should be deducted from their full earnings as they are credited with 52 weeks of contributory service as if they were working a full 37.5 hours per week.
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The Ministry funding is paid to employers in the form of a single payment that is meant to cover the cost of both the additional salary and any costs incurred by employers that are associated with providing additional benefits to members.
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For HOOPP purposes, the portion of the payment that relates to salary is considered pensionable and the portion of the payment that relates to benefit costs is considered |
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non-pensionable as this is used by employers to pay for benefits, such as HOOPP. Therefore, member contributions are required on the additional salary but are not |
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permitted on the funding that employers use to pay for the cost of benefits. Employer contributions are required at the prevailing contribution rate. |
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It is recommended that upon receiving the payment from the Ministry, you withhold the amount required to pay for additional benefits, including your employer required HOOPP |
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contributions. The remainder would then be paid to the member as salary and HOOPP contributions must be deducted for the member from this remaining amount. |
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Missed Contributions
From time to time, a member or employer may miss making required contributions. HOOPP can learn about missed contributions in one of three ways:
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Contributions on Termination Payments
The table below summarizes the way HOOPP treats pension contributions for various payments that may be made to members upon termination of employment. Whether or not HOOPP contributions are made on these amounts depends on the type of payment, and the method by which the payment is made.
Type of Payment | If paid as… | Contributions required |
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Payments in lieu of termination notice period not exceeding amount required by Employment Standards Act or collective agreement | lump sum | yes |
salary continuance | yes | |
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Payments in lieu of termination notice period exceeding amount required by Employment Standards Act or collective agreement | lump sum | Contributions allowed on excess portion if employer and member agree to make them and if the employment relationship continues for the applicable period. |
salary continuance | yes | |
Severance pay | lump sum | no |
salary continuance | yes | |
Other: retiring allowances, lump sum payments in lieu of benefits, etc. | lump sum | no |
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