Our Buyback Service
Do you have a period when you worked for a HOOPP employer but didn't contribute?
This can be a waiting period, maternity leave or other periods – and in these cases, the result may mean that you have less contributory service. Buying back these periods of service can increase your pension benefit.
Our Buyback Calculator can provide an estimate of the cost of buying back service.
Two ways to buy back
Two types of past service are eligible for purchase, subject to Income Tax Act limits, at any time before you retire or terminate from the Plan as long as you’re a member of HOOPP:
- 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.
How does it all work?
Here's an example. Lisa took a two-year personal leave during the time she belonged to HOOPP. She works for 27 years and retires at age 55. But because of that leave, she will have 25 years of contributory service at retirement.
Let's look at the value of Lisa buying back those two years of service - we'll assume her average annualized earnings at retirement are $53,000, and that she lives until age 80. These figures, for simplicity, do not factor in the annual cost of living adjustments (COLAs) that would be applied.
| Lisa's pension |
Without past service purchase |
With past service purchase |
| Basic lifetime pension |
$1,635 per month for life |
$1,825 per month for life |
| Bridge benefit |
$410 per month until 65 |
$455 per month until 65 |
| Total pension until 80 |
$490,500 |
$547,500 |
| Total bridge until age 65 |
$49,200 |
$54,600 |
| Total HOOPP benefits to 80 |
$539,700 |
$602,100 |
When can I make the purchase?
You must be an active member of HOOPP to buy back service. There is no deadline for active members to purchase past service. It is important to note that generally the longer you wait, the more it costs. The cost goes up with increases in your age, earnings and the more service you have.
If you are no longer a member of the Plan or if you are a retired member who has temporarily stopped receiving your HOOPP pension and re-enrolled in the Plan, you do not qualify to purchase past service.
Our Buyback Estimator can provide a cost estimate to buy back service. It also shows the corresponding increase in pension, available as a result of buying back past service.
For more information about contributions, please read our member information sheet Calculating Your HOOPP Contributions (PDF).
For more information about buybacks, please read our member booklet You Can Have More: Buying Back Service (PDF).
VIDEO: Buyback – Increase your pension for life (9 minutes)
