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HOOPP
The Plan How Your Pension Works Example: Full-Time vs. Part-Time Retirement Scenarios

How your pension works: example

If Claire works three days per week, her actual earnings are $51,000 per year, while her average earnings for her pension calculation are $85,000.

The example below shows how Claire’s pension would be calculated if she works full-time and if she works three days per week for her entire career. You’ll notice that while average earnings of $85,000 are used for both calculations, Claire’s contributory service is lower in the part-time scenario because she is building contributory service at a slower pace than if she worked full-time.

The example below shows what Claire’s lifetime pension and bridge benefit would be using a full-time and part-time scenario. You’ll see that her total pension payments will exceed the amount she contributed during her career.


Claire's retirement scenarios

HYPW-Claire-example

Meet Claire

The scenarios assume that Claire begins contributing to the Plan at age 30 and retires on Dec. 31, 2030, 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 $74,600 $74,600
Hours 5 days/week 3 days/week
Full-time equivalent salary Full-time 60%
Average actual earnings $85,000 $51,000
Average annualized earnings $85,000 $85,000
Contributory service 25 years 15 years (60%)
Total HOOPP contributions $151,900 $91,200

Claire's pension calculation

For service before Jan. 1, 2024 $29,481* $17,688*
For service after Dec. 31, 2023    
Earnings up to YMPE $74,600 X 1.5% X 7 = $7,833 $74,600 X 1.5% X 4.2 = $4,700
Earnings above YMPE $10,400 X 2% X 7 = $1,456 $10,400 X 2% X 4.2 = $874
Total lifetime pension (per year) at retirement $38,770 $23,262

Annual bridge pension (payable to age 65) at retirement

 $3,730 $2,238

Total lifetime + bridge pension* (per year) at retirement

 $42,500 $25,500

Pension paid for 20 years*
(an inflation protection assumption)

 $961,400 $576,900

Claire’s pension far exceeds her contributions. In both scenarios, the pension she collects over 20 years is over six times more than her total contributions.


*Claire was developed as an example by HOOPP for illustrative purposes only. In this example, we have assumed that Claire has qualified for the past service benefit improvements, including the improvement effective on July 1, 2024. For simplicity, we have used Claire’s current annualized earnings and the 2026 YMPE in this example. We have assumed that Claire’s pension continues to grow during retirement with an annual cost-of-living adjustment of 2%. All amounts have been rounded to the nearest dollar. Claire’s pension is not subject to an early retirement adjustment because she retired at age 60.

  • Claire's retirement scenarios

    Claire's retirement scenarios

    HYPW-Claire-example

    Meet Claire

    The scenarios assume that Claire begins contributing to the Plan at age 30 and retires on Dec. 31, 2030, 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 $74,600 $74,600
    Hours 5 days/week 3 days/week
    Full-time equivalent salary Full-time 60%
    Average actual earnings $85,000 $51,000
    Average annualized earnings $85,000 $85,000
    Contributory service 25 years 15 years (60%)
    Total HOOPP contributions $151,900 $91,200

    Claire's pension calculation

    For service before Jan. 1, 2024 $29,481* $17,688*
    For service after Dec. 31, 2023    
    Earnings up to YMPE $74,600 X 1.5% X 7 = $7,833 $74,600 X 1.5% X 4.2 = $4,700
    Earnings above YMPE $10,400 X 2% X 7 = $1,456 $10,400 X 2% X 4.2 = $874
    Total lifetime pension (per year) at retirement $38,770 $23,262

    Annual bridge pension (payable to age 65) at retirement

    		 $3,730 $2,238

    Total lifetime + bridge pension* (per year) at retirement

    		 $42,500 $25,500

    Pension paid for 20 years*
    (an inflation protection assumption)

    		 $961,400 $576,900

    Claire’s pension far exceeds her contributions. In both scenarios, the pension she collects over 20 years is over six times more than her total contributions.


    *Claire was developed as an example by HOOPP for illustrative purposes only. In this example, we have assumed that Claire has qualified for the past service benefit improvements, including the improvement effective on July 1, 2024. For simplicity, we have used Claire’s current annualized earnings and the 2026 YMPE in this example. We have assumed that Claire’s pension continues to grow during retirement with an annual cost-of-living adjustment of 2%. All amounts have been rounded to the nearest dollar. Claire’s pension is not subject to an early retirement adjustment because she retired at age 60.

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.