6. Special Transfer Rules
Organizational Change Impacting Employees’ Pension Participation
If an employee is joining HOOPP as the result of an organizational change at their employer (such as a merger, amalgamation, sale of business or divestment), the usual pension transfer rules may not apply.
Normally, members can transfer pension service from their previous pension plan to HOOPP when changing jobs, but this might not be permitted in situations involving changes to the employer’s legal or operating structure.
These changes may impact employee participation in HOOPP, as described in section 2 Administrative Overview.
A Regional Manager can assist you in understanding the impact of your organizational change to your employees - current, future and former.
If you have employees who are enrolling or leaving your workplace as a result of organizational change, please contact HOOPP. We can help you determine if special rules apply.
New HOOPP Employer with Prior Pension Plan
Where an employer changes the pension plan offered to its employees, there may be restrictions on when employees can purchase the prior service with their prior plan in HOOPP. Ontario’s pension laws apply special rules in this situation, where:
there is a continuous employment relationship and
employees are eligible to participate in HOOPP for future service.
If an employer offered a registered pension plan (Defined Benefit or Defined Contribution) before becoming a participating HOOPP employer, those members may not be immediately eligible to transfer their benefits under that plan. Details of the options available will be discussed during the employer application process and will depend on the type of existing pension plan the organization has in place, whether any transfer options can be negotiated, and whether or not it is being wound up.
Good news! In this scenario, HOOPP recognizes periods of employment and membership in a prior registered pension plan (i.e., continuous service) as eligibility service in HOOPP. In order to accomplish this, you will be asked to provide HOOPP with membership information for employees who previously participated in that plan and are now enrolled in HOOPP. This supports their eligibility for HOOPP early retirement benefits and future purchases of eligible past service.
New participating employers must apply HOOPP’s enrolment rules to all employees eligible to join the Plan, this includes employees hired before the organization joined HOOPP and who may not have been eligible to join the employer’s prior pension plan.
Wind Up of Predecessor Pension Plan
If you previously offered a registered pension plan prior to becoming a participating HOOPP employer and the prior plan is being wound up, please reach out to a Regional Manager for information and support.
Your employees may now be eligible to purchase the prior service with their prior pension plan in HOOPP under the past service purchase provisions.