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Life & Career Events

Self-employment and Third-party Arrangements

There are times when you may not work directly for an employer who participates in the plan. If you've made self-employment or third-party arrangements to work after retirement and are unsure if the work is subject to re-employment rules, ask yourself these questions:

  1. Are the services you provide normally performed by an employee at the participating employer?
  2. Does a participating employer assign and control your duties?

If you answer "yes" to either of the above, then your work after retirement is likely subject to re-employment rules. Here are three examples to help illustrate the difference between what is and isn't considered re-employment.

Example 1 - Mary, caterer

After retiring, Mary started her own catering business, Just Like Home. Once a week, she delivers hot lunches to a few of the local elementary schools. As a retired teacher, Mary especially enjoys visiting her school clients.

Does it count?

No. The school, the participating employer, does not control the services provided by Just Like Home. In addition, Mary's service as a caterer would not normally be performed by an employee. Therefore, Mary would not have to count any of this time toward the limit. Mary's situation is an example of self-employment.

Example 2 – George, teacher program co-ordinator

George works part-time for Reach for the Top, a private company that provides teaching services in schools.

Does it count?

Yes. Any school that hires employees from Reach for the Top directly controls the services provided by the company. In addition, George's service would normally be performed by an employee rather than contracted out. Therefore, he would have to count his work toward the limit. George's situation is an example of being engaged indirectly through a third-party arrangement.

Example 3 – Donna, professional development

Donna works part-time as a coach for principals. She was hired by the Ontario Principals' Council (OPC), an organization that does not participate in the plan. Donna works with principals at their schools. The OPC assigns her work hours and which schools to visit.

Does it count?

Yes. Even though the OPC is not a participating employer, professional development training is normally performed by employees hired directly by participating employers (i.e., district school boards). Because Donna is indirectly providing services to a district school board, working after retirement rules apply.

Still not sure?

You should always contact us before you begin working after retirement if you're unsure whether re-employment rules apply to your situation. Where questionable situations are discovered, we'll consider the work after retirement subject to the re-employment rules if the arrangement is in place to escape the application of the re-employment rules.