HOOPP contributions on retroactive pay settlements are required for both the employee portion and the employer portion. Only payments relating to prior years are considered retroactive payments. This means that any payment received in the current year, for prior years, is considered a retro. Any payment received in the current year, for the current year, is considered an adjustment to current year contributions, and is not considered retro.
WRH will provide HOOPP with details of the payments made for member contributions that have been deducted for each year of the retro payment, similar to what the hospital is required to do for current year contributions. Contributions on any retro payment will need to be reported separately from regular current year contributions. These payments will NOT provide you with additional years of service however will increase your annualized earnings for the year in which the contributions are for. This may in turn impact your 5 best years of service which is used to calculate your pension at retirement.
Retirees
Retroactive payments received by a member after they have retired and begun receiving a HOOPP pension are considered pensionable earnings and are subject to pension contributions.
WRH will submit those contributions to HOOPP and they will then recalculate a retired member’s pension to include the retroactive settlement.
MELISSA SIMAS, CHRL | WINDSOR REGIONAL HOSPITAL MANAGER, HUMAN RESOURCES
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