FUNDING
Retirement Income for Life
Retiring HOOPP members receive a pension based on a formula that takes into account their best five consecutive years of earnings and years of service in the Plan.
Under pension plans like HOOPP:
- assets equal the current value of the contributions collected and investment returns
- liabilities equal the current value of the Plan’s total pension obligations
When assets equal or exceed liabilities, a plan is fully funded. When liabilities exceed assets, a plan is underfunded, which means there may not be sufficient money to immediately meet all of a plan’s future benefits payable. Currently, HOOPP is 103% fully funded.
Pension law in Ontario
Under current pension law, at least once every three years, HOOPP is required to determine the funded status of the Plan and file the results with the Financial Services Commission of Ontario (FSCO). However, in the interest of proactive funding management, HOOPP’s practice is to measure the funded status on an annual basis, though the results may not be filed each year with FSCO.
