The benefits of contributing: example
Lucia and Sarah are the same age and were hired at the same hospital on the same day. They both earn an average of $80,000 per year. Lucia and Sarah both decide to retire on June 1, 2021. Both have three children, and both took three one-year pregnancy/parental
leaves before December 31, 2020*. Lucia made contributions for all three of her leaves, but Sarah did not.
That means Lucia has 17 (5 months post Dec. 31, 2020)* years of contributory and eligibility service and Sarah has 14 (5 months post Dec. 31, 2020)* years when they each retire at age 55.
*Effective April 1, 2021, HOOPP made a Plan benefit improvement. Since Lucia and Sarah had service prior to 2021, they were eligible for those improvements and their pensions for service prior to 2021 are calculated at a higher rate. Learn more about HOOPP's
benefit improvements.
Lucia 
| Sarah 
|
| Lucia will receive: | Sarah will receive: |
| $1,660 per month basic lifetime pension | $1,190 per month basic lifetime pension |
| $170 per month bridge benefit until age 65 | $120 per month bridge benefit until age 65 |
| Total HOOPP benefits: $1,830 per month | Total HOOPP benefits: $1,310 per month |
Making contributions during her leave helped Lucia increase her pension by adding contributory service. Crossing an eligibility service milestone of 15 years helped minimize reductions in her pension for her early retirement. Learn more about eligibility service milestones.
When it’s time to retire, Lucia is eligible for total HOOPP benefits of $1,830 per month, while Sarah would receive $1,310 per month. That’s a difference of $520 per month or $6,240 per year!
See what a difference this makes when Lucia and Sarah are 80 years old, in the following tab.
The benefits of contributing: example
| If Lucia lives until her 80th birthday, she will have received: | If Sarah lives until her 80th birthday, she will have received: |
| $498,000 in basic lifetime pension payments | $357,000 in basic lifetime pension benefits |
| $20,400 in bridge benefits until age 65 | $14,400 in bridge benefits until age 65 |
| Total lifetime HOOPP benefits: $518,400 | Total lifetime HOOPP benefits: $371,400 |
By contributing for three employer-approved leaves, Lucia will receive on average $490 more per month in retirement and a total of $147,000 more than Sarah between age 55 and age 80. Keep in mind, this example doesn’t factor in any inflation protection
that may be paid in the future.
Please note that this example and calculation is for illustrative purposes. Depending on the example, HOOPP may have made certain assumptions about fictitious members, including assumptions on the following: annualized earnings, average YMPE, no hourly
earnings increases, unchanging employer and employee contribution rates, and no adjustments for inflation.
Your annual pension will differ from this example due to your personal circumstances. Your actual benefit entitlements, based on verified data, will be paid in accordance with the Healthcare of Ontario Pension Plan Text and applicable legislation in effect
at the time you retire. For this reason, you should not rely upon the examples for decision-making purposes.