Should Joanne remain a HOOPP member?
If Joanne keeps her pension with HOOPP, she is eligible to receive a monthly lifetime pension of $1,015 along with a bridge benefit of $185 per month that will be paid until she turns 65.
These amounts would grow with any approved cost of living adjustment (COLA) both before and after retirement. If COLA were provided at an average of 1.5% per year over 15 years, this could increase her lifetime pension to $1,260 per month and her bridge
benefit to $230 per month by the time she retires at age 60. She won’t be able to make any more contributions, but she knows her pension will be a secure source of income when she retires. Over her lifetime, Joanne would receive approximately
$470,400 from HOOPP.
Could Joanne transfer her benefit from HOOPP into a locked-in account and still receive the same monthly income when she retires? It isn’t impossible, but it would be very difficult, as outlined in the next tab.
Should Joanne transfer to a locked-in account?
To receive a similar monthly benefit on her own, Joanne would have to purchase an annuity for approximately $470,000 when she is 60 years old. The transfer value of Joanne’s HOOPP pension, less taxes,
would be a starting point, but it wouldn’t be enough. To build her savings, Joanne would have to take on the responsibilities and risks that come with investing what’s left. There are no guarantees she would be able to save enough or find
an annuity that offers everything her HOOPP pension would.

Joanne's challenges:
- Paying commissions and fees
- Being responsible for investment decisions
- Navigating volatile markets
- Finding an annuity with HOOPP-like benefits
If Joanne saves less than planned, or if she can’t find an annuity that offers equivalent benefits, her retirement will be impacted.
* This represents an after-tax amount based on a total HOOPP transfer value of $197,400. Of that, $106,600 was locked in and $90,800 provided in cash. From the cash, $30,000 was deposited into an RRSP and the rest had a 30% withholding tax applied to it ($18,200), leaving approximately $179,200 to invest over 15 years in preparation for retirement.
Joanne's decision
After reviewing her options, Joanne decides to keep her pension with HOOPP. She knows that her pension is secure and she will collect it for life. She also knows it could continue to grow through COLA, and survivor benefits are provided at no additional
cost.
With all of the peace of mind her HOOPP pension offers, Joanne’s choice is clear.