LEAVING HOOPP
Options for Vested Members
A vested member is entitled to a future pension benefit. This occurs at the earliest of:
- two years of membership in the Plan
- two years of eligibility service
- reaching age 65
Leave your money with HOOPP
You can choose - upon terminating from HOOPP - to leave your benefits in the Plan to collect later as a lifetime pension once you reach retirement age. This is called choosing a deferred pension. To find out more, view our Deferred Pension section.
Transfer your money out of the Plan
Instead of a deferred pension, you can transfer your benefits out of HOOPP.
The options for transferring your benefits out of HOOPP will depend on whether you are:
Under age 55
- In most cases, provincial pension law prohibits you from taking your termination benefit in cash. The money must remain locked in to provide you with a retirement income. For example, you can transfer the commuted value of your HOOPP benefit, subject to Income Tax Act limits, to a locked-in retirement account (LIRA). Purchasing an annuity is another option you may have.
- If you go to work for a non-HOOPP organization, you may be able to transfer your benefits to your new employer's pension plan. Check to see if they have a reciprocal transfer agreement with HOOPP or if they’ll allow you to transfer the commuted value of your pension into their pension plan.
55 or older
- You are eligible for HOOPP early retirement
- You can still transfer your pension to another defined benefit registered pension plan until the age of 65
If you transfer your money out of HOOPP, you may receive a pension adjustment reversal (PAR). A PAR will increase the amount you are allowed to contribute to a RRSP.
Remember: a commuted value withdrawal is a complex decision. We recommend that our members speak to a pension or financial planning expert before making a decision.
Options for Non-Vested Members
You are considered a non-vested member of the Plan if you are under the age of 65 AND have been a member of the Plan for less than 2 years or have less than 2 years of eligibility service.
If you terminate employment and are not vested in HOOPP, you are entitled to a refund of HOOPP contributions, plus interest, and have two basic payment options:
Take it in cash – If a cash payment is selected, the cash refund will be taxed as income in accordance with the Income Tax Act. The amount of tax that will be withheld is determined based on the amount of the total refund. The current tax rates for such payments are:
| Amount of cash payment |
Withholding tax rate |
| $5,000 or less |
10% |
| $5,000.01 to $15,000 |
20% |
| More than $15,000 |
30% |
The taxes HOOPP deducts are paid to the Canada Revenue Agency and are subject to change. A tax slip will be issued for the year that the refund is paid.
Transfer your benefits out of HOOPP - You can move your funds directly, on a tax-sheltered basis, to either a RRSP or to another pension plan, if that plan will accept the funds. Because different pension plans have different features, the funds you transfer may not provide the same amount of service as you had in HOOPP.
If you take or transfer your money out of HOOPP, you may receive a pension adjustment reversal (PAR).
For more information on your options, please contact HOOPP.
For more information on the new rules on vesting effective July 1, 2012, please click here.
