Claire's retirement scenarios
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 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.