As a retired member of the HOOPP Pension Plan (Healthcare of Ontario Pension Plan), you can enjoy peace of mind knowing your pension will last a lifetime. Offering a secure monthly income, the HOOPP Pension Plan also provides optional inflation protection through Cost of Living Adjustments (COLA) to help preserve the purchasing power of your retirement income. Here’s everything you need to know about COLA and how it impacts your HOOPP pension.
How Many years of Service do you Need for a HOOPP Pension in Canada?
Top 10 Pension Plans in Canada: A Comprehensive Ranking
Table of Contents
Lifetime Security with the HOOPP Pension Plan
The HOOPP Pension Plan is designed to ensure retirees have a reliable and sustainable income throughout their golden years. With the added benefit of potential COLA increases, HOOPP helps protect your pension against rising costs, offering valuable inflation protection.
OMERS Pension Increase 2025: What Retirees Need to Know
OMERS & UPP Pension Announce Inflation Adjustments 2025: What Members Need to Know
7 Canadian Pension Adjustment for 2025? A Complete Guide
CPP Payments to Rise by 2.7% in 2025: What Retirees Need to Know
What is COLA in the HOOPP Pension Plan?
Cost of Living Adjustments (COLA) are annual increases to pensions that help offset the impact of inflation. While these increases are not always guaranteed, HOOPP’s Board of Trustees has a strong track record of approving them.
For 2024, the Board approved a 3.40% increase to pensions and deferred pensions, effective April 1. This is the maximum allowable adjustment for the year, based on the Consumer Price Index (CPI).
Are CPP Contribution Limit Going up in 2025? Key Updates to Maximize Your Retirement Savings
CPP vs. CPP2: Unlocking the Future of Your Pension Contributions
How Is COLA Determined in the HOOPP Pension Plan?
The HOOPP Pension Plan calculates COLA adjustments based on three key factors:
1. The Plan’s Funding Status
The sustainability of the HOOPP Pension Plan is paramount. The Board evaluates the Plan’s funded status annually to determine whether it can support a COLA increase. This ensures the Plan remains financially stable for all current and future members.
2. Changes in the Consumer Price Index (CPI)
The CPI, measured by Statistics Canada, tracks changes in the cost of living. HOOPP compares December’s CPI from the previous year to the same month in the current year to determine COLA. For 2024, the CPI increase capped at 10%, translating to the approved 3.40% COLA.
3. Contributory Service
- Service Before 2006: Guaranteed COLA at 75% of the CPI increase, with potential additional increases up to 100% if funding permits.
- Service After 2005: COLA is not guaranteed. However, since 2002, the HOOPP Pension Plan has consistently provided 100% of the CPI increase.
Canada’s 2025 Tax Updates New Brackets, CPP Contribution Changes, and More
When Are COLA Increases Applied?
COLA increases in the HOOPP Pension Plan take effect annually on April 1. Adjustments apply to:
- Retired members’ pensions.
- Deferred pensions.
- Pensions paid to surviving spouses and beneficiaries.
How Will I Know My Updated Pension Amount?
Every year, HOOPP provides a detailed pension statement, including the approved COLA amount and your updated monthly payment. Members can also view their payment history and updated pension amounts on HOOPP Connect under My Pension Profile.
Deferred Pensions and COLA
Even if you leave a HOOPP employer, your deferred pension remains secure. Deferred pensions are eligible for any approved COLA adjustments, both before and after retirement, ensuring continued growth of your pension.
Why Inflation Protection Matters
With people retiring earlier and living longer, inflation protection is crucial to preserving the value of your pension. The HOOPP Pension Plan aims to strike a balance between protecting members from inflation and ensuring the Plan’s long-term sustainability.
Need Assistance with Your HOOPP Pension Plan?
If you have questions about your pension or inflation protection under the HOOPP Pension Plan, contact Member Services at 416-646-6445. For real-time updates, statements, and to manage your preferences, sign in to HOOPP Connect.
Secure Your Future with the HOOPP Pension Plan
The HOOPP Pension Plan continues to prioritize the financial well-being of its members, providing lifetime income and inflation protection. With its robust governance and consistent COLA approvals, the HOOPP Pension Plan remains a pillar of stability for retirees.
Leave a Reply