7.1 Free Accrual

Free accrual is contributory service that is credited by HOOPP to a member who is determined by HOOPP to be partially, totally, or totally and permanently disabled. A disabled member receiving free accrual builds contributory service without having to make any contributions. Your organization does not make contributions either.

To be eligible for free accrual, a member must:

Be employed by a HOOPP employer
Apply for disability benefits from HOOPP
Have been on an employer-approved health leave for 15 weeks
Be assessed by HOOPP as being partially disabled, totally disabled, or totally and permanently disabled
Have contributed to the Plan before going on a health leave
Be under age 65
Have less than 35 years of contributory service

Qualifying Period and Timelines The first 15 weeks of a health leave is known as the qualifying period. Members must make contributions on any employment earnings they receive from your organization during this period and employers must match contributions made by the member at the prevailing employer contribution rates. See section 7.3 Administrative Steps (Click Here) for further details about deducting contributions and the options that are available to members during this period.

Important

If a member returns to work during the qualifying period for a period of 3 weeks or less and then is off work for the same illness, the health leave is considered to be continuous and should not be ended. If a member returns to work during the qualifying period for more than three weeks, or if the member returns to work and then goes off work on a health leave for a different illness, then the health leave should be ended on the date the member returned to work. A return to work during the 15 week qualifying period includes a return to work on an employer-approved rehabilitation or modified work program. A new 15 week qualifying period will begin if the member goes off work again on a subsequent employer-approved health leave.

Free accrual begins after the 15 week qualifying period if the member is determined by HOOPP to be partially, totally or totally and permanently disabled. If the member is partially disabled, free accrual can continue for up to four years from the date the health leave started, less the qualifying period. If the member is totally disabled or totally and permanently disabled the member may continue to qualify for free accrual past the four year limit until the member recovers, dies, retires, reaches age 65 or builds 35 years of contributory service, whichever occurs first.

Important

Members who are within the first 15 weeks of an unpaid health leave during periods of Ontario-declared emergencies for COVID-19 will be provided with contributory service for the period of their unpaid leave that coincides with a declared emergency. This applies for the following declared provincial emergency periods:

March 17, 2020 to July 24, 2020,
January 12, 2021 to February 9, 2021 and
April 7, 2021 to June 2, 2021.

The process for reporting these leaves remains unchanged. Additional information is in section 5.6 Special Situations (Click Here).

If Not Approved For Free Accrual

If HOOPP determines that a member is not eligible to apply for free accrual or does not meet any of the definitions of disability outlined above, the member will not be approved for free accrual. A member who is not approved for free accrual may remain on an employer-approved health leave for a maximum of four years and both you and the member may continue to make contributions to HOOPP to build the member’s contributory service. If you do not allow the member to make contributions they will continue to be a member of HOOPP while they are on the employer-approved health leave and remain employed, but the member will not build any additional benefits in HOOPP.

Rehabilitation Program

A member who is in receipt of free accrual can continue to qualify for free accrual until their next medical review date if you place them on a rehabilitation or modified work program in preparation for a full return to work. A member placed on a permanent work accommodation will cease to qualify for free accrual and will resume making required contributions. For more information about rehabilitation programs, see Step E: Member Returns to Work on an Employer-Approved Rehabilitation or Modified Work Program in section 7.3 Administrative Steps (Click Here).

Consecutive Leaves

A member may be entitled to disability benefits for a period that also qualifies as a statutory leave. Also, a health leave may immediately precede or follow a statutory leave. For example, a member on a Pregnancy-Parental Leave may qualify for HOOPP disability benefits for the period during which the member would not have been able to work for health reasons related to pregnancy or childbirth. In such cases, the type of leave(s) that are reported to HOOPP and the contribution remittance should be consistent with the member’s situation. Two distinct periods of leave should be reported if the member switches from a health leave to a statutory leave, or vice versa. Keep in mind the member’s right to continue contributions in respect of a period of statutory leave that does not otherwise qualify for free accrual, as discussed in section 5. Leaves and Layoffs (Click Here).