Meet Lisa
Lisa was eligible to buyback a two-year period in HOOPP. This was for a leave period when she didn't contribute and didn't build her service in the Plan.
Before she retired, Lisa completed a buyback of this two-year period. As a result, she had 27 years of contributory service when she retired, rather than 25 years. Because Lisa increased her contributory service and eligibility service, she received a
larger pension at age 55.
In the example below, we assume that Lisa’s average earnings at retirement are $60,000 and she retired on April 1, 2021.
Lisa's pension |
Without buyback |
With buyback of former service |
Lifetime pension |
$2,040/month for life |
$2,280/month for life |
Bridge benefit |
$270/month until age 65 |
$300/month until age 65 |
Total lifetime pension payments over 25 years |
$612,000 |
$684,000 |
Total bridge benefit payments until age 65 |
$32,400 |
$36,000 |
Total HOOPP benefits over 25 years |
$644,400 |
$720,000 |
Lisa bought her two years of service when she was age 42, and had earnings of $40,000. At the time, she had 12 years of HOOPP service. Based on buyback rates at the time, those two years would cost Lisa $11,950. For that cost, Lisa receives nearly
$77,100 in additional benefits under the retirement scenario above – nearly six-and-a-half times what she paid for the buyback.*
*Lisa is eligible for HOOPP’s benefit improvements effective January 1, 2018, and April 1, 2021, and this is reflected in the illustration above of her annual lifetime pension and bridge benefit. For simplicity, the figures used in the table above
do not factor in any cost of living increases that may be applied. Lisa’s pension is calculated using the average year’s maximum pensionable earnings
. For more information on the pension formula, see How Your Pension Works
.
This example and calculation are for illustrative purposes. Your annual pension will differ from this example due to your personal circumstances. Your actual benefit entitlements, based on verified data, will be paid in accordance with the HOOPP Plan Text and applicable legislation in effect at the time you retire. For this reason, you should not rely upon the example for decision-making purposes.