The Healthcare of Ontario Pension Plan is increasing its lifetime pension for all active plan members effective Jan. 1, 2023.
As an example, under the latest increase, members working full time with average earnings of $60,000 and 10 years of service in the plan before 2023 will receive an extra $1,310 per year from their lifetime pension once they retire. Members with the same earnings and five years of service before 2023 will receive an increase of $865 per year and those with 20 years of service will receive an additional lifetime pension of $2,200 per year.
If members are planning to leave their employer after Jun. 1, 2022, they’ll receive the improvement effective Jan. 1, 2023, as long as they begin drawing down their pension between July 1, 2022 and Jan. 1, 2023 or if they’re eligible to do so — age 55 or older — when they left their employer and remained a deferred member as of Jan. 1, 2023.
“We know that the last few years have been very challenging for our members,” said Jeff Wendling, the HOOPP’s president and chief executive officer, in a press release. “We’re proud to be able to offer this benefit improvement that will increase active members’ lifetime pension and provide even greater peace of mind in their retirement years.”
Earlier this year, the plan’s board approved a cost-of-living adjustment of 4.8 per cent for 2021 for retired and deferred members. The HOOPP also assured its members and employers their contribution rates will remain stable at least until the end of 2024.