Why Contributing For Leaves Helps
Contributing for a leave or other unpaid period means you build more contributory service, and ultimately, a bigger HOOPP pension benefit.
Example of how contributing for leaves helps
Jane and Sarah are nurses, earning the exact same rate of pay and working the same hours. They both have three children. Jane makes HOOPP contributions for her three years of pregnancy/parental leave, and Sarah does not.
Both work for 20 years, and retire at age 55 with average annualized earnings of $60,000. Sarah will have 17 years of contributory service, while Jane will have 20 years of each.
The chart below shows what they'll receive from HOOPP.
| Sarah's Monthly Pension | Jane's Monthly Pension | |
|---|---|---|
| Basic Lifetime Pension | $1,140 | $1,415 |
| Bridge Benefit | $230 | $285 |
As you can see, by making contributions for her three
maternity leaves, Jane will enjoy $275 more pension per
month, and $55 more monthly bridge benefits (payable until age 65)
due to the fact that Jane has more contributory service
and a smaller early retirement reduction factor than Sarah.
