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HOOPP
Members Plan Features How Your Pension Works Example: Full-Time vs Part-Time Retirement Scenarios

How your pension works: example

If Claire works three days per week, her actual earnings are $42,000 per year, while her average earnings for her pension calculation are $70,000.

The example below shows how Claire’s pension would be calculated if she works full-time and if she works three days per week for her entire career. You’ll notice that while average earnings of $70,000 are used for both calculations, Claire’s contributory service is lower in the part-time scenario because she is building contributory service more slowly than if she worked full-time.

The example below shows what Claire’s lifetime pension and bridge benefit would be using a full-time and part-time scenario. You’ll see that her total pension payments will exceed the amount she contributed during her career.


Claire's retirement scenarios

HYPW-Claire-example

Meet Claire

The scenarios assume that Claire begins contributing to the Plan at age 30 and retires on Dec. 31, 2028, 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 $68,500 $68,500
Hours 5 days/week 3 days/week
Full-time equivalent salary Full-time 60%
Average actual earnings $70,000 $42,000
Average annualized earnings $70,000 $70,000
Contributory service 25 years 15 years (60%)
Total HOOPP contributions $102,206 $65,767

Claire's pension calculation

For service before Jan. 1, 2023 $26,835* $16,101*
For service after Dec. 31, 2023    
Earnings up to YMPE $68,500 X 1.5% X 5 = $5,138 $68,500 X 1.5% X 3 = $3,083
Earnings above YMPE $1,500 X 2% X 5 = $150 $1,500 X 2% X 3 = $90
Total lifetime pension (per year) $32,123 $19,274

Annual bridge pension (payable to age 65)

 $2,877 $1,726

Total lifetime + bridge pension* (per year)

 $35,000 $21,000

Pension paid for 20 years
(assuming no inflation protection)

 $656,845 $394,110

Claire’s pension far exceeds her contributions. In both scenarios, the pension she collects over 20 years is nearly more than six times her total contributions.


* Claire is eligible for HOOPP’s past service benefit improvement effective January 1, 2018, April 1, 2021, January 1, 2023, and July 1, 2024, and these are reflected in the illustration above of her annual lifetime pension and bridge benefit. Claire’s pension is not subject to an early retirement adjustment because she retired at age 60.

  • Claire's retirement scenarios

    Claire's retirement scenarios

    HYPW-Claire-example

    Meet Claire

    The scenarios assume that Claire begins contributing to the Plan at age 30 and retires on Dec. 31, 2028, 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 $68,500 $68,500
    Hours 5 days/week 3 days/week
    Full-time equivalent salary Full-time 60%
    Average actual earnings $70,000 $42,000
    Average annualized earnings $70,000 $70,000
    Contributory service 25 years 15 years (60%)
    Total HOOPP contributions $102,206 $65,767

    Claire's pension calculation

    For service before Jan. 1, 2023 $26,835* $16,101*
    For service after Dec. 31, 2023    
    Earnings up to YMPE $68,500 X 1.5% X 5 = $5,138 $68,500 X 1.5% X 3 = $3,083
    Earnings above YMPE $1,500 X 2% X 5 = $150 $1,500 X 2% X 3 = $90
    Total lifetime pension (per year) $32,123 $19,274

    Annual bridge pension (payable to age 65)

    		 $2,877 $1,726

    Total lifetime + bridge pension* (per year)

    		 $35,000 $21,000

    Pension paid for 20 years
    (assuming no inflation protection)

    		 $656,845 $394,110

    Claire’s pension far exceeds her contributions. In both scenarios, the pension she collects over 20 years is nearly more than six times her total contributions.


    * Claire is eligible for HOOPP’s past service benefit improvement effective January 1, 2018, April 1, 2021, January 1, 2023, and July 1, 2024, and these are reflected in the illustration above of her annual lifetime pension and bridge benefit. Claire’s pension is not subject to an early retirement adjustment because she retired at age 60.

This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.