The Healthcare of Ontario Pension Plan (HOOPP) is widely regarded as one of the best pension plans in Canada and one of the best-funded large pension plans in the world. With over $112 billion in assets, a funded ratio consistently above 115%, and coverage for approximately 460,000 members at more than 670 Ontario healthcare employers, HOOPP is a gold standard DB pension.
HOOPP uses an integrated formula tied to the Year's Maximum Pensionable Earnings (YMPE):
HOOPP uses your best 5 consecutive years of earnings.
Example: Registered nurse, best average $98,000, 30 years, YMPE $68,500:
Add CPP (~$100–$14,000/year) and OAS (~$8,500/year at 65) for a combined retirement income potentially exceeding $70,000/year — entirely without RRSP savings.
HOOPP provides full CPI indexation on all earned pensions once you start receiving benefits. Given the plan's exceptional funded status (115%+ consistently), this indexation is reliable and has been paid without interruption. Over a 25-year retirement, full CPI indexation can more than double the real value of your monthly pension versus a flat amount.
HOOPP has maintained a funded ratio above 100% since 2004. As of 2024, it was approximately 122% funded — meaning it has $1.22 in assets for every $1.00 of pension liabilities. This surplus buffer protects against future market downturns and gives the board confidence to maintain full CPI indexation.
The plan achieves this through a disciplined liability-driven investment strategy, which matches asset characteristics to pension liability duration. This means HOOPP is less susceptible to interest rate volatility than plans using traditional asset-only investment approaches.
The 85 factor is powerful. A nurse who starts at 25 and has 30 years of service at age 55 hits the 85 factor and receives a full, unreduced pension.
HOOPP includes a bridge benefit payable from retirement until age 65 (based on the integrated formula's CPP-linked portion). At 65, the HOOPP pension amount decreases as CPP kicks in. Total retirement income remains relatively stable through this transition.
HOOPP members contribute:
Employers contribute at a higher rate. These are competitive rates given the exceptional benefit level and plan security.
With 2+ years of service, HOOPP members who leave employment can:
Given HOOPP's exceptional funding and full CPI indexation, the deferred pension option is almost always superior to the commuted value for those with good health and family longevity.
HOOPP membership is limited to employees of eligible Ontario healthcare organizations. These include hospitals, long-term care homes, community health centres, home care organizations, and many other healthcare entities. If your employer is HOOPP-eligible, membership is typically automatic for full-time employees and available for part-time employees meeting minimum hour thresholds.
HOOPP is one of the best retirement benefits available to any Canadian worker. The combination of the 2% formula (above YMPE), full CPI indexation, an exceptional funded status, and the 85 factor for early retirement makes this plan extraordinarily valuable. Understand your factor, consider buybacks if near the 85 threshold, and recognize that your HOOPP pension may reduce or eliminate the need for significant RRSP savings.
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