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HOOPP
Members Life Changes Health Leaves & Disability Benefits Example: Disability

Example: Free accrual

Meet Amanda

Amanda is 55-year-old HOOPP member in Sudbury, Ontario and she is ready to retire.

In her 40s, Amanda went on a health leave. For the first 15 weeks of her leave (the qualifying period), she continued contributing to her pension. When her qualifying period ended, she applied for HOOPP’s disability benefits and was approved for free accrual of service.

While receiving free accrual, she didn’t have to make contributions and her pension continued to grow as though she were still working and contributing – at no cost to her or her employer.

How will free accrual of service impact the lifetime pension she will receive when she retires?

Amanda’s lifetime pension with free accrual vs. without

Amanda will retire with average annualized earnings of $80,000 and 15 years of contributory service (including her free accrual).

After her qualifying period, Amanda received free accrual before she returned to work.


By applying for and receiving free accrual for this 1.5 year period, Amanda will receive:

  • $275 more every month for the rest of her life in retirement.
  • $84,300 more in total pension payments by age 80

Without free accrual With free accrual The difference free accrual makes
Monthly lifetime pension $1,190 $1,465 $275
Pension payments received by age 80 $366,000 $450,300 $84,300

  • Amanda’s pension has grown because of increases in both her contributory service and eligibility service, which has a significant impact on her early retirement.
  • On top of her monthly lifetime pension, Amanda will also receive a bridge benefit between age 55 and 65. In this case, her bridge benefit will be $15 per month higher than it would have been without free accrual.
  • Amanda’s total pension payments received at age 80 includes $10,800 in bridge benefit payments she received between age 55 and 65, which is $1,800 more than it would have been without free accrual.

What if Amanda recovered more quickly? Does just six months of free accrual make a significant difference for her in retirement?

By applying for and receiving free accrual for this period, Amanda will receive:

  • $185 more every month for the rest of her life in retirement.
  • $56,700 more in total pension payments at age 80

Without free accrual With free accrual The difference free accrual makes
Monthly lifetime pension $1,280 $1,465 $185
Pension payments received by age 80 $393,600 $450,300 $56,700

  • Amanda’s pension has grown because of increases in both her contributory service and eligibility service, which has a significant impact on her early retirement.
  • On top of this monthly lifetime pension, Amanda will also receive a bridge benefit between age 55 and 65. In this case, her bridge benefit will be $10 per month more than it would have been without free accrual.
  • Amanda’s total pension payments received at age 80 includes $10,800 in bridge benefit payments that she received between age 55 and 65, which is $1,200 more than it would have been without free accrual.
  • 1.5 years of free accrual

    By applying for and receiving free accrual for this 1.5 year period, Amanda will receive:

    • $275 more every month for the rest of her life in retirement.
    • $84,300 more in total pension payments by age 80

    Without free accrual With free accrual The difference free accrual makes
    Monthly lifetime pension $1,190 $1,465 $275
    Pension payments received by age 80 $366,000 $450,300 $84,300

    • Amanda’s pension has grown because of increases in both her contributory service and eligibility service, which has a significant impact on her early retirement.
    • On top of her monthly lifetime pension, Amanda will also receive a bridge benefit between age 55 and 65. In this case, her bridge benefit will be $15 per month higher than it would have been without free accrual.
    • Amanda’s total pension payments received at age 80 includes $10,800 in bridge benefit payments she received between age 55 and 65, which is $1,800 more than it would have been without free accrual.
  • 6 months of free accrual

    What if Amanda recovered more quickly? Does just six months of free accrual make a significant difference for her in retirement?

    By applying for and receiving free accrual for this period, Amanda will receive:

    • $185 more every month for the rest of her life in retirement.
    • $56,700 more in total pension payments at age 80

    Without free accrual With free accrual The difference free accrual makes
    Monthly lifetime pension $1,280 $1,465 $185
    Pension payments received by age 80 $393,600 $450,300 $56,700

    • Amanda’s pension has grown because of increases in both her contributory service and eligibility service, which has a significant impact on her early retirement.
    • On top of this monthly lifetime pension, Amanda will also receive a bridge benefit between age 55 and 65. In this case, her bridge benefit will be $10 per month more than it would have been without free accrual.
    • Amanda’s total pension payments received at age 80 includes $10,800 in bridge benefit payments that she received between age 55 and 65, which is $1,200 more than it would have been without free accrual.

Amanda was developed as an example by HOOPP for illustrative purposes only. In this example, we have assumed that Amanda is retiring as of January 1, 2026, (at age 55) with 15 years of contributory service (including free accrual). She made full contributions during her 15-week qualifying period and qualified for past service benefit improvements up to and including July 1, 2024. For simplicity, inflation protection has not been factored into this example. All amounts have been rounded to the nearest dollar.

There's more

Because Amanda’s free accrual period qualified for past service benefit improvements, her pension grew even more. Plus, this example doesn’t factor in any cost of living adjustments (COLA) that HOOPP may approve in the future, which could increase Amanda’s pension even more.

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.