Move benefits members, aligns with Ontario pension reform laws
The Healthcare of Ontario Pension Plan has announced that effective July 1, 2012, members will be able to vest in the plan without going through a two-year waiting period.
While this legislation has not yet come into effect (and there’s no details yet on when it will), HOOPP is making this move “because it’s the right thing for our members – and because our fully funded position permits us to make the move now,” says HOOPP President & CEO John Crocker. “The government has clearly indicated that it wants plans like ours to offer immediate vesting – we see no reason to hold off on this, and are moving ahead on it now.”
“Our members won’t have to go through any waiting periods – they’ll be vested for the full HOOPP defined benefit pension from day one after this change,” he says. “This means they will be able to start to build their full pension benefit earlier than before – and that’s beneficial to them.”
The two year vesting rule will continue to apply until July 1, 2012, but all non-vested members who are actively contributing or who join HOOPP on or after July 1, 2012 will be vested immediately. If the government wants the change sooner than July, HOOPP will make the change sooner.
HOOPP will communicate this change to its members.
About the Healthcare of Ontario Pension Plan
Created in 1960, the Healthcare of Ontario Pension Plan (HOOPP) is the pension plan of choice for Ontario's hospital and community-based healthcare sector with over 370 participating healthcare organizations.
Among our 260,000 members and retirees are nurses, medical technicians, food services and laundry workers – and the many other people who work hard to provide you with your valued Ontario healthcare services.
HOOPP invests the assets of its $35.7 billion fund, administers the Plan and pays more than $1.2 billion per year in pension benefits.
As a defined benefit plan, HOOPP provides eligible members with a retirement income based on a formula that takes into account a member's earnings history and length of service in the Plan. Once eligible members start receiving a pension, they receive it for life.
HOOPP is governed by a Board of Trustees with representation from the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses' Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU), and the Service Employees International Union (SEIU). The unique governance model provides representation from both management and workers in support of the long-term interests of the Plan.
HOOPP was named one of Canada's 10 Most Admired Corporate Cultures in 2010.
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For further information or to arrange interviews, please contact:
Martin Biefer
Director, Public Affairs
Ph: 416 369-8045