Earlier this year, the Canadian Institute of Actuaries (CIA) changed the standards used in commuted value (CV) calculations, including assumptions around interest rates and the age at which the member’s pension would start. The revised CIA standards will go into effect on December 1, 2020 and will apply to all defined benefit pension plans in Canada, including HOOPP.

What is a commuted value?

A commuted value is the estimated lump-sum amount of money that would be needed to pay a member’s defined benefit pension in the future. The CV calculation is based on Plan terms and several factors and assumptions such as age, interest rates and life expectancy.

Who is impacted?

These changes will impact the CV calculation that occurs when individuals take their benefit out of the Plan instead of receiving a monthly pension and when the pension value is determined for the purposes of a separation or divorce.

Please note that these changes do not affect members who are currently receiving a pension or members who will retire with a monthly pension from HOOPP.

Member pensions remain the same 

HOOPP members enjoy peace of mind when it comes to their retirement security. By keeping their pension with HOOPP, members receive a predictable monthly income and gain the confidence to retire as early as age 55. Read more about the advantages of staying a HOOPP member or watch our YouTube video for more information.

We're here to help

If you have any questions, please contact our Member Services team at 416-646-6445 or toll-free at 1-877-43HOOPP (46677), Monday to Friday, 8 a.m to 5 p.m., Eastern Time.