Buyback Tables Updated and Process Simplified

If you are considering buying back past service, there are two changes planned for 2008 that you should be aware of.

Tables updated

The tables showing the approximate cost of buying back service have be updated effective Jan. 1, 2008.

An insert mentioning this fact is being included with all copies of A Guide to Past Service Purchases that are shipped after Jan. 1, 2008. Employers have also been notified about the changes.

Quote process simplified

Effective April 1, 2008, the rules governing buyback quotes were will be simplified. When a quote is issued, it is good for 90 days. After that time, it expires, and you 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 any time within the last two years before April 1, 2008. It is therefore more important than ever to buy back service as early as possible, as the cost will increase as you get older, earn more, and build more service.

There are also two changes to be aware of, both effective April 1, 2008 as well. These are of interest to anyone considering buying back part-time or RCA-related service.

• you will have a choice whether or not to buy the portion of your 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 you purchase part-time service, the eligibility service is also part time)

All HOOPP information materials on this topic are being updated.

What is buying back service?

HOOPP allows you to "buy back" eligible periods of time in the past so that the service you purchase can count towards your HOOPP pension.

Two types of past service are eligible for purchase:

HOOPP service: A period of time you were employed by a HOOPP employer but not enrolled in the Plan, a period when you were on a leave and not making contributions, or a period of former HOOPP service for which you received a benefit.

Other service: Service with other pension plans may be eligible for buyback. Examples include service with an employer that has now joined HOOPP, or pension benefits you transferred out of a plan. Contact HOOPP to see if your service with another plan is eligible for buyback.

January 2008