Transferring Benefits Out of HOOPP – Under 55

If you are a vested HOOPP member and have not reached retirement age, one of your options upon terminating from HOOPP is to transfer your benefits out of the Plan.

Provincial pension law prohibits you from taking your termination benefit in cash. Normally, the money must remain locked in to provide you with a retirement income.

There are a number of options for your locked-in termination benefit (special rules apply if you begin working with a new organization under a sale, assignment, or disposition of business – check with your employer):

• Transfer your benefit to a LIRA, LIF, or LRIF.
  You can transfer the commuted value of your HOOPP benefit, subject to Income Tax Act limits, to a locked-in retirement account (LIRA). Funds moved to a LIRA – within those tax limits – remain tax sheltered and don’t affect your RRSP contribution room.
  
  If you are up to age 54, you also have the option of transferring the commuted value of your benefits, subject to Income Tax Act limits, directly to a life income fund (LIF) or a locked-in retirement income fund (LRIF).
  
  Before transferring your benefits out of HOOPP, understand what you’re giving up before you transfer out.
  
  HOOPP may ask you to complete a Transfer of Locked In-Funds Form
  
  
• Transfer your benefit to another pension plan.
  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. HOOPP has reciprocal transfer agreements with a number of pension plans. If you join one of these plans, you'll be able to transfer your HOOPP benefits under certain conditions.
  
  Many Canadian employers that don't have transfer agreements with HOOPP may still allow you to transfer the commuted value of your pension into their pension plan. Ask your new employer if its plan will accept such a transfer. Time restrictions apply – and the transferred funds may not provide you with the same benefit you would have had in HOOPP because of differences in plan features.



• Purchase an annuity from another organization.
  On termination, you also have the option of using the commuted value of your pension to purchase a deferred life annuity. Annuities can be purchased from insurance companies, trust companies, and other financial institutions. Be sure to “shop” before you buy – the deferred annuity may not have the same inflation protection and death benefit features that HOOPP has.

Limit on transfer amount

There are Income Tax Act limits on how much of your funds can be transferred out of HOOPP on a tax-sheltered basis. HOOPP will let you know about any limits that apply to you when you receive your termination options.