Members who are placed on an unpaid emergency leave or unpaid health leave (for the first 15 weeks) will continue to build their pension as though they were still working, without having to make contributions. Employer contributions are also waived.
If eligible, contributory service will be granted for the portion of the qualifying leave that:
falls within the period of the emergency starting on March 17, 2020 (as declared by the Province of Ontario under the Emergency Management and Civil Protection Act due to COVID-19); and
during which the member has no pensionable earnings from the employer.
We anticipate that most members will continue to be paid during this time. For those who are not paid, HOOPP benefits will continue to grow at no cost to the member and employer.
Duration of continued contributory service
For unpaid emergency leaves, the contributory service will be granted for the period of the leave that falls between:
the later of March 17, or the leave start date; and
the earlier of the date the member returns from the unpaid leave (or reaches the end of the 15 weeks in the case of a health leave) or the end date of the provincial state of emergency (currently unknown).
If the leave of absence continues beyond the end date of the provincial state of emergency, then only the portion of service up to this date will be granted at no cost.
After this date the member (and employer) may contribute for the continuing emergency leave period or remaining first 15 weeks of an unpaid health leave (subject to employer approval where required by the Plan).
Note: Members on a health leave will be able to apply for free accrual after the first 15 weeks, per normal disability benefit processes. Additionally, the period of an emergency leave that becomes a health leave will count toward the 15-week qualifying period for purposes of applying for disability benefits.
Eligible Leave Types
Eligibility Exclusions
This benefit applies to members on COVID-related unpaid emergency leaves during the current declared emergency.
This includes one of the two new statutory leaves added to the Employment Standards Act (ESA) by the provincial government in response to COVID-19:
Declared emergency leave
Infectious disease leave
The benefit also applies to the first 15 weeks of an unpaid health leave.
This benefit is not provided in the following situations:
Paid leaves of absence (including members on a paid emergency leave who elect not to contribute, as permitted under the ESA)
Other unpaid leaves (statutory or otherwise) other than those described above
Periods of reduced earnings
Periods of temporary layoff Reminder: Employers should continue to report temporary layoffs as ‘approved non-statutory leaves’.
When service will be applied
HOOPP is targeting late 2020 to grant the contributory service to qualifying eligible members with contributory service.
From the HOOPP Insight Member Profile, employers will continue to see these periods as originally reported to HOOPP (e.g., non-contributory emergency leaves). Service granted will not be visible to employers. Until service is granted (late 2020) this service will not be included in member estimates.
Members will see the contributory service on their 2020 annual statement that will be issued to members in 2021. It will appear as buyback service.
Contributions that were already taken for eligible members
Any contributions that were already taken for eligible members should be refunded to the member. If the contributions were already remitted to HOOPP, the employer should adjust their next HOOPP remittance based on these amounts. For additional information on Remitting Contributions visit the Remittance Page.
If any refunds are made after the 2020 MDC year, they will need to be reported to HOOPP as a Previous Year Adjustment.
Other impacts
Employer MDC and Member Event processes will not be impacted, and information can be submitted as per their normal process.
However, there will be implications on the member's PA. The PA will need to be recalculated after MDC or after the final event data is provided to HOOPP, which will include the additional contributory service that was granted to members.
Closer to the 2020 MDC timeframe, more information will be provided to employers.
Note: HOOPP will make best efforts to ensure that the revised PAs are provided to employers on a timely basis to minimize any impacts to their T4 reporting processes.