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HOOPP

Taking Time off Work

Taking Time off Work

There are times when you may need to be away from work, perhaps because you’re having a baby, or you need to tend to a personal emergency. 

In many cases where your employer has approved your leave from work, you can continue to build your HOOPP pension by making contributions for your leave of absence. In fact, making contributions will help you build your pension over the long run.

Types of leaves


Statutory leaves

As outlined in the Ontario Employment Standards Act (ESA), you can choose to make contributions for the following types of leaves:

  • Pregnancy leave
  • Parental leave
  • Family medical leave
  • Emergency leave
  • Organ donor leave
  • Family caregiver leave
  • Critically ill child care leave
  • Crime-related child death and disappearance leave

Non-statutory leaves

Your employer may grant other types of leaves, for example, for travel or education. If your employer approves a leave that lasts less than 31 days, contributions are mandatory for you and your employer.

If your employer approves a leave that is 31 days or more, your employer decides whether you can make contributions. If you are permitted to contribute and do so, your employer must contribute as well.

Health leaves

Health leaves are handled differently from other types of leaves. Learn more about how you can contribute during the first 15 weeks of a health leave.

taking-time-off-workL

Special situations

  • Strikes or lockouts
    You can choose whether to contribute for a period of strike or lockout.
  • Temporary period of reduced earnings
    If your employer permits, you can choose to “top up” your contributions during a temporary period of reduced earnings, as long as you have been with the same employer for at least 36 months. Examples of a temporary period of reduced earnings include: participating in a temporary job-sharing program or working fewer hours each week for a temporary period of time.
  • Temporary layoffs
    For layoffs less than 31 days, you and your employer continue to make contributions. For layoffs longer than 30 days, your employer determines if contributions continue.
  • Suspensions and unapproved absence
    Your employer can choose whether to allow you to make contributions during a suspension or a period when you have not been given permission to be off work. Contributions are not mandatory for these periods.
  • Pre-paid leave plans
    A four-for-five arrangement allows employees to receive 80% of their earnings for four years while “banking” the remaining 20% of their earnings to take as income during the fifth year which is taken as a year off.
Please note

For the first four years, contributions are based on 100% of your earnings, even though you are only receiving 80% of their normal earnings during this time. This means you will accrue full contributory service during the first four years, just as you would if you were not taking a leave in the fifth year. Your employer will also make contributions based on your full earnings. 

There are two ways in which you can build pension service for the fifth year, while you are away from work: you can make contributions or you can buy back this period. Contributions are based on 100% of what you would have earned had you worked your usual hours.
 
If you are away from work for other reasons, contact Member Services or your employer to determine if you can elect to continue your contributions. 

How to make contributions for your leave of absence

If you decide to make contributions during a statutory leave or are permitted to do so during a non-statutory leave, there are two ways you can contribute: 

  • Contribute while you’re away, as though you were working, or
  • Pay the lump sum of your contributions no later than six months from the end of your leave 

Speak with your employer to make arrangements regarding your contributions.

If you work full-time

 Your contributions are based on your full pre-leave earnings, though you can contribute less. The more you contribute, the more service and earnings you’re building for your pension in retirement.

If you work part-time

 Your contributions for the leave period will be based on your average hours worked prior to the leave.

The benefits of contributing


Contributing for a leave of absence prevents “a gap” in your service, and ensures that you will have more years of contributory and eligibility service at retirement. That can make a big difference in your pension benefit when it’s time to retire.

Here’s a simple example:

Mary and Sarah are the same age and were hired at the same hospital on the same day. They both earn an average of $80,000 per year. Mary and Sarah both decide to retire on June 1, 2021. Both have three children, and both took three one-year pregnancy/parental leaves before December 31, 2020*. Mary made contributions for all three of her leaves, but Sarah did not.

That means Mary has 17 (5 months post Dec. 31, 2020)* years of contributory and eligibility service and Sarah has 14 (5 months post Dec. 31, 2020)* years when they each retire at age 55.

*Effective April 1, 2021, HOOPP made a Plan benefit improvement. Since Mary and Sarah had service prior to 2021, they were eligible for those improvements and their pensions for service prior to 2021 are calculated at a higher rate. Learn more about HOOPP's benefit improvements.

 Mary

mary-taking-time-off-work

Sarah 

sarah-taking-time-off-work
Mary will receive: Sarah will receive:
$1,660 per month basic lifetime pension $1,190 per month basic lifetime pension
$170 per month bridge benefit until age 65 $120 per month bridge benefit until age 65
Total HOOPP benefits: $1,830 per month Total HOOPP benefits: $1,310 per month

Making contributions during her leave helped Mary increase her pension by adding contributory service. Crossing an eligibility service milestone of 15 years helped minimize reductions in her pension for her early retirement. Learn more about eligibility service milestone by visiting When can I retire?. 

When it’s time to retire, Mary is eligible for total HOOPP benefits of $1,830 per month, while Sarah would receive $1,310 per month. That’s a difference of $520 per month or $6,240 per year!

See what a difference this makes when Mary and Sarah are 80 years old.

If Mary lives until her 80th birthday, she will have received: If Sarah lives until her 80th birthday, she will have received:
$498,000 in basic lifetime pension payments $357,000 in basic lifetime pension benefits
$20,400 in bridge benefits until age 65 $14,400 in bridge benefits until age 65
Total lifetime HOOPP benefits: $518,400  Total lifetime HOOPP benefits: $371,400
*See disclaimer below

By contributing for three employer-approved leaves, Mary will receive on average $490 more per month in retirement and a total of $147,000 more than Sarah between age 55 and age 80. Keep in mind, this example doesn’t factor in any inflation protection that may be paid in the future.

If you do not contribute 


If you do not make contributions on an employer approved leave, you may still be able purchase the service at a later date by completing a buyback. Learn how buying back service can help you maximize your pension.

Disclaimer

Please note that this example and calculation is for illustrative purposes. Depending on the example, HOOPP may have made certain assumptions about fictitious members, including assumptions on the following: annualized earnings, average YMPE, no hourly earnings increases, unchanging employer and employee contribution rates, and no adjustments for inflation.

Your annual pension will differ from this example due to your personal circumstances. Your actual benefit entitlements, based on verified data, will be paid in accordance with the Healthcare of Ontario Pension Plan Text and applicable legislation in effect at the time you retire. For this reason, you should not rely upon the examples for decision-making purposes.

This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.