Claire's retirement scenarios

Meet Claire
The scenarios assume that Claire begins contributing to the Plan at age 30 and retires on Dec. 31, 2029, at age 60.
As a result of benefit improvements made to the Plan, Claire will receive 1.90% on her average earnings up to the YMPE on service before January 1, 2021, and 2.0% on her service in 2021, 2022 and 2023.
Earnings | Full-time | Part-time |
---|
Average YMPE | $71,300 | $71,300
|
Hours | 5 days/week | 3 days/week |
Full-time equivalent salary | Full-time | 60% |
Average actual earnings | $90,000 | $54,000 |
Average annualized earnings | $90,000 | $90,000 |
Contributory service | 25 years | 15 years (60%) |
Total HOOPP contributions | $151,925 | $91,155 |
Claire's pension calculation
For service before Jan. 1, 2024 | $33,059* | $19,836*
|
For service after Dec. 31, 2023 | | |
Earnings up to YMPE | $71,300 X 1.5% X 6 = $6,417 | $71,300 X 1.5% X 3.6 = $3,850 |
Earnings above YMPE | $18,700 X 2% X 6 = $2,244 | $18,700 X 2% X 3.6 = $1,346
|
Total lifetime pension (per year) | $41,720 | $25,032 |
Annual bridge pension (payable to age 65) | $3,280 | $1,968 |
Total lifetime + bridge pension* (per year) | $45,000 | $27,000 |
Pension paid for 20 years (assuming no inflation protection) | $850,800 | $510,480 |
Claire’s pension far exceeds her contributions. In both scenarios, the pension she collects over 20 years is nearly six times more than her total contributions.
* Claire was developed as an example by HOOPP for illustrative purposes only. In this example, we have assumed that Claire has qualified for the past service benefit improvements, including the improvement effective on July 1, 2024. For simplicity, inflation protection has not been factored into this example. All amounts have been rounded to the nearest dollar. Claire’s pension is not subject to an early retirement adjustment because she retired at age 60.