The Pension Formula

You can estimate in advance what you’ll get from HOOPP. That’s because HOOPP pensions are based on a formula that takes into account your earnings history and service in the Plan.

The HOOPP pension formula is two-tiered to complement the Canada Pension Plan (CPP). (CPP provides a pension based only on earnings up to the year’s maximum pensionable earnings)

For each year of contributory service, your basic lifetime pension will be:

• 1.5 per cent of your average annualized earnings up to the average year’s maximum pensionable earnings plus
• 2.0 per cent of your average annualized earnings above the average YMPE.

For each year of contributory service you earned before the CPP’s introduction in 1966, your basic lifetime HOOPP pension will be:

• 2.0 per cent of your average annualized earnings.

For example, if 65-year-old Mary retired today with average annualized earnings of $50,000 and 20 years of contributory service, her basic lifetime pension would be calculated like this:

$ 12,370 (1.5% × $41,233* × 20 years)
+  $3,507 (2.0% × $8,767* × 20 years)
$15,877 per year

* In this example, the three-year average year’s maximum pensionable earnings (YMPE) is $41,233, and Mary’s average annualized earnings were $8,767 above the average YMPE.