what

you need
/ a Pension plan for you

Information for new

employees about the
benefits of HOOPP
Contents

2 / What you need

3 / Who is HOOPP?
4 / The keys to financial security
6 / What you put in
8 / What you get out
10 / Making the most of HOOPP
11 / When can you retire
12 / Summary of terms
14 / We’re here to help
The Healthcare of Ontario Pension Plan (HOOPP)
is one of Canada’s largest and most respected
defined benefit pension plans. Our only focus
is on being the best pension plan provider for
the healthcare community. For over 50 years,
HOOPP has been helping people who work in
Ontario’s healthcare community prepare for their
retirement. Our dedicated pension professionals
share a single commitment– taking care of the
financial future of those who care for us.
2 // what you need

What
you need

This booklet will give you an overview of the main features

of HOOPP as of August 2010.

Detailed information about the Plan’s What the terms mean

provisions and member entitlements
Some terms that we use throughout
can be found in the Healthcare of
this booklet have specific meanings
Ontario Pension Plan Text (the Plan
in the context of the Plan. We have put
Text), the official Plan document,
these terms in bold italics the first time
which is available on hoopp.com. In
they appear in this booklet and provided
cases where the information provided
a Summary of Terms at the back of the
in this booklet, by an employer or
booklet. You’ll also find a comprehensive
by any other source differs from that
glossary at hoopp.com.
contained in the Plan Text, the Plan
Text will govern. Decisions based
on the information provided in this
booklet are your responsibility.
// A Pension Plan for you 3

Who
is HOOPP?

HOOPP is a not-for-profit organization set up for the sole purpose

of securing the pension promise for Ontario’s healthcare workers.

HOOPP is governed by a Board All 16 Trustees represent you, whether

of Trustees made up of 16 voting or not you belong to any of the four
members. The Ontario Hospital unions. The Trustees have a fiduciary
Association (OHA) appoints eight responsibility to administer the Plan
of the trustees and four unions in the best interests of all HOOPP
appoint two trustees each. The members – regardless of their union
unions are the Ontario Nurses’ or other affiliation.
Association (ONA), the Canadian
Union of Public Employees (CUPE),
the Ontario Public Service Employees’
Union (OPSEU), and the Service
Employees International Union
(SEIU). In addition to the 16 voting
members, there can be two non-voting
observers representing pensioners on
the Board.
4 // what you need

THE KEYS TO
FINANCIAL SECURITY

Your membership in HOOPP opens the door to a more secure

financial future. In order to make the most of HOOPP, you need
a good understanding of the many pension benefits the Plan offers –
benefits that are a significant part of the total compensation you
receive from your employer. Here’s an overview:

Employer contributions how much contributory service you

can have. And buying back part-time
In addition to your own contributions,
service can make as much sense as
your employer invests in your future as
buying back full-time service.
well, currently contributing $1.26 to
the HOOPP Fund for every dollar Use the HOOPP Buyback Estimator
you contribute. on hoopp.com to get an idea of how
much buying back service costs you,
LIFETIME PENSION and how a buyback increases the value
of your pension.
Once you start receiving a pension,
you receive it for life, so there’s no
Early retirement provisions
risk of outliving your money.
Working in the healthcare sector is
Make up for lost time demanding – physically and emotionally.
So, it’s understandable that many of
You may have the opportunity to
our members opt out of the workforce
increase your pension through a
before reaching age 65. In recognition
buyback. HOOPP allows you to
of this fact, HOOPP offers valuable
“buy back” eligible periods of time
early retirement provisions, including
in the past any time before you retire
an unreduced pension at age 60 and
or leave the Plan so that the service
a bridge benefit that’s payable from
HOOPP pension. When you buy
your early retirement date to age 65.
past service, you gain additional weeks
of contributory service in the Plan,
increasing your overall pension at
retirement. The more years of contributory
service you have, the higher your
pension will be. There’s no limit on
// A Pension Plan for you 5

Inflation protection Disability benefits

HOOPP provides inflation protection – HOOPP offers two disability benefits:

a valuable benefit designed to limit free accrual and disability pension. The
inflation’s impact over the long term. extent of your disability determines
The cost of living adjustment (COLA) whether or not you are a disabled
is determined on an annual basis. member and if you are, what benefits
HOOPP’s Board of Trustees votes on you qualify for.
how much inflation protection the Plan
will provide. Annual COLA increases Changing jobs
range from zero to 100 per cent of the
HOOPP is a multi-employer pension
previous year’s increase in the consumer
plan, which means it is available at more
price index (CPI), with a maximum CPI
than 300 Ontario healthcare employers –
increase of 10 per cent. HOOPP COLA
so when you change jobs, you may not
increases are applied every April 1.
have to change pension plans.
Survivor benefits
Online access to your
For your surviving qualifying spouse, pension data
a monthly lifetime pension is provided
As a member of HOOPP, you can
equal to 60, 80 or 100 per cent of your
also securely access your pension
pension, depending on the elections you
information online at your convenience.
make at retirement.
The HOOPP Connect website allows
If you have no spouse at retirement, members to perform some pension-
you receive a life pension guaranteed related transactions online with fewer
15 years (G15). Should you die before phone calls, less waiting, and less paper
receiving 15 years (180 months) of going back and forth. Receive HOOPP
payments, your pension– not including documents electronically in a secure
any bridge benefits – will be paid to your mailbox, including your annual state-
non-spouse beneficiary for the balance ment, and perform pension income
of the 180-payment period. estimates using your data. Once you
become a HOOPP member, go to
If you live beyond the 15-year period,
hooppconnect.com to register.
you will continue to receive your pension.
However your non-spouse beneficiary
will be entitled to nothing.
 6 // what you need

WHAT YOU
PUT IN

HOOPP, combined with government benefits and any personal

savings you may have, has the potential to make your retirement
dreams a reality. With HOOPP, the more you earn and the longer
you’re in the Plan, the bigger your pension will be.

The amount you contribute to HOOPP The value of that pension is generally
is a function of how much you earn and far more than the sum of member and
the Plan’s contribution formula. To ensure employer contributions. Basically, the
the Plan is able to fulfill its pension more you make and the longer you
promise, contribution rates for members belong to HOOPP, the greater your
and employers are adjusted periodically. pension will be.
Rates are set by HOOPP’s Board of
A couple of points about contributions:
Trustees, based on the advice of actuaries
who monitor the Plan’s financial status. • The contributions you make to HOOPP
HOOPP’s contribution rates are set to are yours – and even if you leave the Plan
remain the same until at least the end before you are vested, you will always
of 2012. receive at least the contributions you have
made, plus interest.
Contributions
• The employer contributions are paid
Your employer will calculate your into the HOOPP Fund on your
contributions each pay period and behalf. All contributions are invested.
deduct them directly from your pay. The majority of every pension dollar
you’ll receive comes from investment
You contribute:
returns; the rest comes from member
• 6.9 per cent of your annualized earnings and employer contributions.
up to the year’s maximum pensionable
earnings (YMPE); and
• 9.2 per cent above the YMPE
In 2010, 2011 and 2012, you’ll contribute
$6.90 for every $100 you earn up to the
YMPE and $9.20 for every $100 above it.
The YMPE, which the government sets
every year, is $47,200 in 2010. (See example
on opposite page)
// A Pension Plan for you 7

example:

Here’s how much Sally, who works full time all year and has annualized earnings of
$49,300*, will contribute to HOOPP in 2010:

Annualized Earnings: Sally’s Contributions

$ 47,200 x 6.9% $ 3,256.80

$ 2,100* x 9.2% $ 193.20

$ 49,300 $ 3,450

Sally contributes $3,450 to HOOPP – and her employer contributes $4,347 on

Sally’s behalf.

* Sally’s annualized earnings of $49,300 were $2,100 above the 2010 YMPE of $47,200.
8 // what you need

WHAT YOU
GET OUT

Enjoying the kind of retirement you want takes careful planning.

Your HOOPP pension, combined with income from government
pensions and your own personal savings can help give you the
retirement lifestyle you dream of.

With HOOPP’s pension formula, HOOPP’s pension formula

and when government pensions are
For each year or partial year of
factored in, your basic lifetime pension
contributory service your basic
will equal approximately two per cent
lifetime HOOPP pension will be:
of your average annualized earnings
for every year you’ve been in the Plan. • 1.5 per cent of your average annualized
(Early retirement reductions apply if earnings up to the average year’s
you start your pension before reaching maximum pensionable earnings
age 60 or before completing 30 years (YMPE), plus
of eligibility service.)
• 2.0 per cent of your average annualized
earnings above the average YMPE
If you elect early retirement, you’ll also
get a bridge benefit, payable until you
reach age 65. For each year of contributory
service, your bridge benefit will be:
• 0.5 per cent of your average annualized
earnings up to the average YMPE
Canada Pension Plan benefits, whether
received at age 65 or earlier, will not
reduce your bridge benefit or your
lifetime HOOPP pension.
 // A Pension Plan for you 9

Three ways to estimate your 2. Your HOOPP Annual Statement

HOOPP pension provides a snapshot of your benefits
as of December 31 of the previous
1. Pension income projections on
year, including an estimate of your
HOOPP Connect. This is the quickest
future pension.
way to get a snapshot of your benefits.
HOOPP Connect offers an excellent 3. When you are close to retirement a
retirement planning tool. Project your personalized pension estimate from
future HOOPP pension plus estimated HOOPP will provide you with an
government income (Canada Pension estimate of your pension for the
Plan and Old Age Security), using your retirement date you choose; as this
own pension data. You can perform is the most up-to-date estimate,
estimates, save your projections, and HOOPP recommends that you
compare different scenarios side by side. obtain a personalized estimate before
For example, calculate your pension making your retirement decision.
based on retiring at age 55, age 60 or
age 65 and see how the three projections
compare – all on one screen.
 10 // what you need

MAKING THE
MOST OF HOOPP

HOOPP has special features to help you maximize your pension that
might otherwise be reduced as a function of job changes, variable
earnings, or unpaid leave.

Depending on your circumstances, • contributing for an unpaid leave

there are four different ways you can
• transferring benefits from a previous plan
maximize your pension benefit:
• buying back past service (times you took
• topping up contributions for a temporary
off work or worked but did not contribute
period of reduced earnings
to HOOPP)

Key sources of retirement income

Your HOOPP pension, combined with income from government pensions and
your own personal savings, can help give you the retirement lifestyle you dream of.
For more information about your government pension income please visit
servicecanada.gc.ca

the three-legged stool

HOOPP Your Savings

Government Pensions
// A Pension Plan for you 11

WHEN CAN
YOU RETIRE?

The earliest you can retire is age 55, and the normal retirement
age for HOOPP members is 65. You must terminate employment
at all the HOOPP employers you work for before you can receive
your pension.

If you are vested, you qualify to retire HOOPP also offers a bridge benefit
as early as age 60 without any reduction for early retirees. It is paid from the
in the pension you have earned to date, date of retirement until age 65, when
or as early as age 55, usually with a government pensions normally begin.
reduction. The reduction is based on
If you work past age 65, you can
how long you have belonged to the Plan
continue to contribute to HOOPP
and your age at the time of retirement.
and build your pension benefit until
The reductions are designed to offset November of the year in which you
the fact that you are receiving a pension turn 71.
earlier and, therefore, are likely to collect
Pensions that start after age 65 will
it longer. Reductions are permanent and
be increased to reflect the fact that
apply to any benefits that may be payable
you are starting your pension payments
to your qualifying spouse or non-spouse
later. The adjustment, which applies
beneficiaries after your death. To see the
to the benefits earned up to your 65th
Early Retirement Table, visit hoopp.com.
birthday, will equal 0.5 per cent of those
benefits for each complete month you
work between your 65th birthday and
the date you retire.
12 // what you need

Summary
of Terms

This section provides simplified explanations of the key terms used

in this booklet. Exact definitions of most of the terms are provided
in the Healthcare of Ontario Pension Plan Text, the official Plan
document which is available on hoopp.com or by contacting HOOPP.

Annualized earnings (AE): Average YMPE:

These are earnings you are credited This is the average of the year’s maximum
with in a calendar year that count pensionable earnings (YMPE) for the
toward your HOOPP pension. If three years before your HOOPP benefit
you work less than one full year your is calculated. Your benefit is calculated
annualized earnings will be based when you retire, terminate, or die.
on what you would earn if you
worked full time for the whole year. Basic lifetime pension:
This is the monthly lifetime payment you
Average annualized earnings: will receive from HOOPP at retirement
This is the highest average of based on HOOPP’s pension formulas.
your annualized earnings during
any consecutive period(s) of five Buyback:
years of eligibility service before HOOPP allows you to “buy back”
your HOOPP benefit is calculated. eligible periods of time in the past,
Benefits are calculated when you so that the service you purchase can
retire, terminate, or die. count towards your HOOPP pension.
Two types of past service are eligible
for purchase:
• HOOPP service:
A period of time you were employed
by a HOOPP employer but not enrolled
in the Plan, a period when you were on
a leave and not making contributions,
or a period of former HOOPP service
for which you received a benefit.
 // A Pension Plan for you 13

• Other service: Qualifying spouse:

Service with other pension plans may Your qualifying spouse is someone who,
be eligible for buyback. Examples at the time a determination is needed:
include service with an employer that
has now joined HOOPP, or pension • is legally married to you, but is not
benefits you transferred out of a plan. separated from you; or
Contact HOOPP to see if your service • has been living with you continuously
with another plan is eligible for buyback. in a conjugal relationship for at least
a year; or
Contributory service:
This is the length of time, measured • is the parent (natural or adoptive) of your
in years and part years, that you have child, and lives with you in a relationship
contributed to HOOPP. It includes of some permanence.
any past service you buy, service
YMPE:
transferred into HOOPP, or service
received while disabled. The year’s maximum pensionable
earnings (YMPE) is set each year by
Eligibility service: the federal government, based on the
Eligibility service is credited when you average wage in Canada. The YMPE
build contributory service and is used for 2010 is $47,200. It is also used by
to determine reductions applied to your the Canada Pension Plan; you make
pension if you take early retirement. CPP contributions on earnings up to
The more eligibility service you have, the YMPE.
the smaller the early retirement reduc-
tions will be. Eligibility service is also
credited to certain members who are
not building contributory service
14 // what you need

WE’RE HERE
TO HELP

We work hard to communicate clearly, providing the right information

at the right time. And we’re constantly looking for ways to serve
members even better.

HOOPP online: HOOPP’s member newsletter,

Your Plan at Work, explains how
Log on to HOOPP Connect at
various Plan features affect members.
hooppconnect.com to access your
The newsletter is printed and also
pension data online at your convenience.
posted on hoopp.com, and you can
HOOPP has an information-packed sign up to receive it directly by email
website that’s always accessible at if you wish.
hoopp.com. Quick links make it easy
to get to the most popular pages on the Presentations:
site and there’s a printer-friendly version
Watch for posters announcing
of every page.
HOOPP presentations and webcasts.
Regular communications:

Beginning the year after you join

HOOPP, you’ll receive a HOOPP
Annual Statement in the mail, or online
via HOOPP Connect. This personalized
statement provides details of the benefits
you are entitled to under the Plan, as well
as the projected pre-tax pension you can
expect to receive from HOOPP if you
stay in the Plan until you retire.
// A Pension Plan for you 15

Your
Notes:
16 // what you need

Your
Notes:
INDIVIDUAL CONSULTATIONS

To provide members with fully personalized

information, and to enable them to have a
dialogue about their situation, they may
request a consultation with one of our pension
experts by contacting a HOOPP Client Services
representative at 416-646-6445 or toll-free in
Canada or the U.S. at 1-877-43HOOPP(46677).

Pour obtenir la version française du présent livret, veuillez communiquer avec le HOOPP.
 1 Toronto Street, Suite 1400
Toronto, Ontario
M5C 3B2

T 416-646-6445
T 1-877-43HOOPP(46677)
F 416-369-0225

E [email protected]
August 2010 CP-06-41 W hoopp.com