Important notice: benefit improvements
A message from HOOPP President & CEO Jim Keohane
HOOPP is proud to be recognized as one of Canada’s largest and most respected defined benefit (DB) pension plans. Our focus on delivering on our pension promise is a cornerstone of our success. As we provide our members with a secure retirement pension, we are vigilant when it comes to prudently managing the HOOPP Fund. This includes recognizing and acting on opportunities to enhance benefits.
I’m pleased to tell you that HOOPP’s Board of Trustees, after careful deliberation, has approved the following:
- Increase to lifetime pension related to service before Jan. 1, 2018
- Increase to lifetime pension resulting from a change in the way we determine the average year’s maximum pensionable earnings (YMPE)
- Increase to post-retirement survivor benefits for spouses, including a new five-year guarantee from your retirement date
These are significant improvements that will offer our members and their loved ones added financial security when they retire.
The changes take effect Jan. 1, 2018. All members who are active in the Plan as of this date will see an increase to their pension as a result of these improvements. The change to survivor benefits will apply to all active, retired, and deferred members. There is a grace period starting Oct. 1, 2017 that will apply to members who are eligible to retire and have already made a decision to retire or leave their employer.
Thanks to a long track record of investment success, combined with both consistent and effective risk management, HOOPP has a very strong funded position. At the end of last year, the HOOPP Fund had approximately $70.4 billion in assets and $54.5 billion in liabilities. For every $1 that we owe in current and future pension benefits, we have roughly $1.22 on hand. This surplus is what made it possible for our Board to consider, and ultimately approve, these changes.
Our surplus allows the Fund to withstand the kind of severe economic downturn that we saw in 2008. It also allows HOOPP to keep contribution rates for members and employers stable. Our current rates have been in place since 2004 and will remain unchanged until at least the end of 2019. As well, the surplus gives the Board the option to provide cost of living increases to retired and deferred members to help their pensions keep up with to inflation.
Saving for retirement has become a significant challenge for many Canadians. In response, the federal government recently put in place measures to strengthen the Canada Pension Plan in the coming years. At HOOPP, our Board decided to take immediate steps to boost retirement security while ensuring the Plan remains sustainable over the long run.
Please click on the link below to read more about our 2018 benefit improvements. You can also contact Client Services if you have any questions.
Jim Keohane
President & CEO
This article was originally published September 29, 2017.
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Important notice: benefit improvements
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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.
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