Buyback tables to change; process simplified

Sent to: Admin, MDC contacts
Date: Dec. 14, 2007

Members who are thinking about buying back past service should be aware that two changes are planned for the upcoming new year.

• Effective Jan. 1, 2008, you can direct members to the updated tables on hoopp.com, which show the approximate cost of buying back service.
• Effective April 1, 2008, the rules governing buyback quotes will be simplified.

Quotes will be good for 90 days only – after that time, it expires and the member must get a new quote. This change may, however, increase the cost of a purchase for some members – primarily those who have just enrolled in HOOPP or returned from a leave anytime within the last two years before April 1, 2008.

It’s important for members to remember the importance of buying back service as early as possible. The cost will increase as the member gets older, earns more and builds more service.

For members interested in buying back part-time or RCA-related service, they should also note, that effective April 1, 2008:

• members will have a choice of buying the portion of their benefit related to HOOPP’s retirement compensation arrangement (currently, members are required to buy back RCA-related past service when they buy back registered pension plan-related service)
• part-time past service will include full eligibility service – this is important for any member who is contemplating retirement before age 60 (currently, if a member purchases part-time service, the eligibility service is also part time)

In the coming weeks, HOOPP will be providing more information about these changes and updating our communications materials.

Insert should go in copies of A Guide to Past Service Purchases

In the meantime, please insert this English notice or French notice in the booklets that you’re giving out to members.

If you’d like HOOPP to print off copies of this notice for you, please e-mail info@hoopp.com.

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