HOOPP: A Guide for Incorporated Physicians
This guide provides an introduction to HOOPP, including an overview of the main features of the Plan, how it can help provide financial security when you retire, and other valuable benefits for you as an incorporated physician.
Get to know HOOPP
pension increases
in the last seven years Benefit improvements help eligible active members get even more from their pension.
4
of stable contribution rates HOOPP contribution rates have not changed since 2004.
20
years
funded status For every dollar owed in pensions, HOOPP has $1.15 in assets.*
$115%
billion in net assets HOOPP manages a global, multi-asset class investment portfolio.*
$112.6
HOOPP is one of the strongest and most-respected pension plans in Canada, with a high-performing fund, low operating costs and stable contribution rates, as determined annually by the Board of Trustees.
Financial strength
*All data as at December 31, 2023. **All data as at June 7, 2024.
Benefits of joining
When you join HOOPP as an incorporated physician, your Medicine Professional Corporation (MPC) becomes a HOOPP employer and you are eligible to become a member of the Plan as an employee of that corporation. This means that you can experience the benefits of a monthly pension for life and the additional advantages that come from being a participating employer.
We’re here to help you make the most of your HOOPP pension and answer any questions you may have. You will have access to personal support, educational resources and digital tools to guide you and help you make informed decisions.
HOOPP is a defined benefit (DB) pension plan that provides a monthly income that begins in retirement and is paid for the rest of your life. The amount you receive is based on a formula that takes into account your earnings, the number of years you have been contributing to the Plan and your age when you start your pension. Since your pension is determined by a formula, you will receive a secure and predictable monthly income for life, while eliminating longevity and investment risk from a portion of your retirement strategy. With HOOPP, you’ll enjoy both individual and corporate tax advantages, and the opportunity for additional features such as inflation protection in retirement, survivor benefits for your loved ones and disability benefits if you are unable to work. HOOPP makes it easier to prepare for tomorrow so you can focus on what matters most today.
HOOPP is a private trust fund operating on a not-for-profit basis, set up for the sole purpose of administering and providing DB pensions for more than 460,000 healthcare workers in Ontario. We have served the province’s healthcare community for more than 60 years.
The HOOPP Board of Trustees governs the Plan and Fund, focused on HOOPP’s mission to deliver on our pension promise. Everything we do, from our investment strategies to our administration of the Plan, is driven by our mission. With HOOPP, you are a member, not a customer, and we aren’t driven by profits or private interests.
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Employer advantages
Member benefits
Offering a workplace pension plan can help your employees feel more secure by reducing financial stress so they can focus on living and working at their best. It demonstrates a tangible commitment to your team’s financial well-being.
Enhance employee well-being
Set yourself apart as an employer of choice by providing access to a trusted pension plan. Offering a pension plan is attractive to current and potential hires, which helps reduce staff turnover and minimizes the time and costs associated with recruiting, hiring and training.
Attract and retain top talent
By participating in HOOPP, your MPC will benefit from tax advantages because employer contributions for you and your staff are deductible by your corporation.
Enjoy corporate tax advantages
Do you have employees under your corporation or other healthcare organization? Studies show that offering a pension plan improves their overall well-being and gives you a competitive hiring advantage.
Enrol your team and experience these benefits.
Attract and retain the best team
Employer advantages
Eligibility
When you join HOOPP as an incorporated physician, your MPC becomes a HOOPP employer and you are eligible to become a member of the Plan as an employee of that corporation. If your MPC has more than one physician owner, each can decide independently about joining.
HOOPP welcomes incorporated physicians who meet the following eligibility criteria:
I operate under a Medicine Professional Corporation (MPC).
I practice in Ontario.
I draw employment earnings from my MPC in the form of a salary.
If you have employees under your MPC, or another healthcare organization that you or your MPC own, there is a path for them to join HOOPP. Whether they are full-time, part-time, future hires or existing employees, there are opportunities to explore.
Select any of the scenarios that apply to you for more information:
Important: Family members of incorporated physicians are not eligible to join the Plan unless they are also physician owners of the MPC. The below criteria regarding employees do not apply to family members.
Do you have employees?
How the HOOPP pension works
your average annualized earnings (measured over your best five consecutive years)
years you contributed to the Plan (contributory service)
the average year’s maximum pensionable earnings (YMPE)
The following section provides information about the Plan and introduces concepts and terms that may be new to you. When you’re ready to speak with a HOOPP representative, please fill out the form at the bottom of this guide, and we will be happy to answer any questions that you have.
Let’s take a closer look at how your lifetime monthly pension is calculated, starting with a breakdown of the Plan formula.
To calculate your lifetime pension, we use:
For each year of contributory service, you receive 1.5% of your average annualized earnings up to the average YMPE, plus 2% of your average annualized earnings above the average YMPE.
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For an incorporated physician, it all starts with setting your baseline earnings and taking advantage of the opportunity to increase them year over year.
How earnings impact your pension
What are baseline earnings?
Baseline earnings are the employment earnings an incorporated physician is expected to receive in a calendar year, expressed on an annualized basis. In your first year of membership, you will set your baseline earnings through your MPC’s participation agreement.
You have the flexibility to choose year-one baseline earnings, but they can’t be more than your actual employment earnings. For example, if you draw $140,000 as a salary from your MPC, you could choose baseline earnings of $120,000 for HOOPP purposes.
Setting your baseline earnings is an important decision as it will impact the contributions you make to the Plan and the pension benefits you build. You will then contribute on your employment earnings, subject to upper and lower earnings limits relative to your baseline earnings. Each subsequent year, you’ll have new baseline earnings based on your annualized earnings from the year before.
You can only contribute on the actual employment earnings you draw from your MPC (i.e., salary that you report on a T4, not dividends).
Keep in mind
While not required, we encourage you to increase your earnings each year to take advantage of your upper earnings limit. Doing so means that the annualized earnings used to calculate your pension will continue to grow, meaning a bigger pension in retirement. This is an important way to maximize your HOOPP pension.
Increase your earnings annually to maximize your HOOPP benefits
Provided you contribute on employment earnings that are between your upper and lower earnings limits, you can build a full year of service in the Plan for the calendar year.
Even if your employment earnings fall below your lower earnings limit in a year, you will still be building a secure retirement. In this case, the service that you accumulate for the year will be adjusted proportionally, but your annualized earnings will be no less than your lower earnings limit and will become your new baseline earnings for the following year.
Read The numbers: Sample scenarios to explore this topic further and see examples that help illustrate how your earnings affect your HOOPP pension.
What happens if I reduce my earnings?
Your baseline earnings can be less than or equal to your actual employment earnings, but not more.
Choose baseline earnings that reflect your expected employment earnings today and give you room to grow them to meet your future retirement needs.
Consider consulting with your advisor to determine the baseline earnings amount that is right for you.
Cost to participate
* As of December 31, 2024, member and employer contribution rates have not changed since 2004, and they will remain stable until at least the end of 2026.
Did you know?
HOOPP allows you to maximize your pension by purchasing eligible past service. By doing this, you may gain additional contributory and eligibility service in the Plan, increasing your overall pension at retirement.
You can buy back service at any time before you retire or terminate your membership in the Plan. In most cases, you can pay for eligible past service with cash or by transferring funds from a registered account, like your RRSP or LIRA. The cost of buying back service depends on a number of factors, such as your age, earnings and years in the Plan. You can buy back all, or a portion, of your service.
Here are examples of service periods that you can buy back:
How to increase your HOOPP pension
eligible periods of service with a HOOPP employer
prior service with another pension plan
Ready to take the next step toward making HOOPP part of your plan? Let’s get started.
Fill out this short form to let us know you’d like to learn more. A HOOPP representative will get in touch to provide more details, discuss your individual circumstances and answer any questions you have.
How to join
Get started
Make HOOPP part of your plan.
In order for your MPC to become a participating employer, the other healthcare organization must also participate.
Starting from the HOOPP participation date, all new full-time employees must join HOOPP upon hire. Part-time employees can choose to join at any time during their employment.
Existing employees hired before the participation date can also choose to join at any time.
You and any other eligible physician owners of your MPC can choose to join the Plan.
Your other healthcare organization can independently decide to join HOOPP as a participating employer and offer HOOPP to help your staff build financial security in retirement.
This is an important strategy to attract and retain talented healthcare workers in a competitive environment, providing a significant advantage that can distinguish you as an employer of choice.
You and any other eligible physician owners of your MPC can choose to join the Plan.
Starting from the HOOPP participation date, all new full-time employees must join HOOPP upon hire. New part-time employees can choose to join at any time during their employment.
Existing employees hired before the participation date can also choose to join at any time.
You and any other eligible physician owners of your MPC can choose to join the Plan.
If you have employees in the future, any new full-time employees must join HOOPP upon hire. New part-time employees can choose to join at any time during their employment.
I have employees at another healthcare organization where I am (or my MPC is) the majority owner (more than 50%).
I have employees at another healthcare organization where I am (or my MPC is) part owner (less than 50%).
I have employees under my MPC.
I am the sole employee under my MPC
Get to know HOOPP
Benefits of joining
Eligibility
03
How the pension works
04
Cost to participate
05
The numbers: Sample scenarios
06
How to join
07
References
08
02
01
HOOPP: A Guide for Incorporated Physicians
This guide is a one-stop resource that provides an introduction to HOOPP, including an overview of the main features of the Plan, how it can help provide financial security when you retire, and other valuable benefits for you as an incorporated physician. Share this guide with a professional advisor to help you make an informed decision.
Your limits are determined each year by your earnings limit adjustment which is based on the previous year’s rate of increase in the Consumer Price Index (CPI) plus 1%, multiplied by your baseline earnings. Your upper limit is your baseline earnings plus the adjustment, and your lower limit is your baseline earnings minus the adjustment.
To illustrate this, let’s take a simple example. If your baseline earnings were $100,000 and the CPI (at 2%) + 1% equals 3%, then your earnings limit adjustment would be $3,000 (i.e., 3% x $100,000). That means your upper earnings limit for the year would be $103,000 and your lower earnings limit would be $97,000.
How do the upper and lower earnings limits work?
How to increase your HOOPP pension
To help you understand the value of the HOOPP pension, let’s look at two sample scenarios.
Farah and Patrick both join HOOPP at age 40 and contribute to the Plan until they turn 65, both building a total of 25 years of service. Farah takes advantage of her upper earnings limit by increasing her earnings by the maximum each year while Patrick doesn’t. Their examples below help illustrate the impact of setting your baseline earnings when you join HOOPP and the importance of thoughtfully adjusting them each year.
Patrick contributes on employment earnings above his baseline earnings but not quite to his upper earnings limit, reflecting an adjustment based on CPI each year.
The numbers: Sample scenarios
When Farah joined the Plan, she had to set her initial baseline earnings amount. The employment earnings she typically draws from her corporation are $170,000, but for HOOPP purposes she can choose an amount lower than this. The table below shows how her estimated pension would change based on three different sample amounts for her baseline earnings in year one.
After her first year, she decides to target her upper earnings limit and contributes up to her maximum allowable amount each year.
Farah joins HOOPP at age 40 and contributes to the Plan until she turns 65, building a total of 25 years of service.
$27,482
$443,348
$558,619
$126,741
$1,901,115
$17,086
$275,636
$347,301
$78,797
$1,181,955
$11,888
$191,779
$241,642
$54,824
$822,360
When Patrick joined the Plan, he had to set his initial baseline earnings amount. The employment earnings he typically withdraws from his corporation are $170,000, but for HOOPP purposes he can choose an amount lower than this. The table below shows how his estimated pension would change based on three different sample amounts for his baseline earnings in year one.
After his first year, he decides to increase the employment earnings he contributes on every year, but not all the way to his upper earnings limit.
Patrick joins HOOPP at age 40 and contributes to the Plan until he turns 65, building a total of 25 years of service.
$27,482
$382,229
$481,608
$98,902
$1,483,530
$150,000
$17,086
$234,889
$295,960
$60,237
$903,555
$100,000
$11,888
$166,031
$209,199
$43,498
$652,470
$75,000
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Farah contributes on employment earnings up to her upper earnings limit, reflecting an adjustment based on CPI + 1% each year.
Contributions to the Plan are based on a shared model, with both the member and employer making contributions. Your costs are your contributions – there are no administration fees.
Your member contribution amount is determined by your earnings and the Plan’s contribution rates. Currently, rates are 6.9% on annualized earnings up to the YMPE and 9.2% on annualized earnings above the YMPE. The employer (MPC) contributes 126% of all member contributions.
Both the member and employer contributions offer key tax advantages. Member contributions are tax deductible which reduces your personal taxes, and employer contributions are deductible by your MPC.
Member contributions are deducted from payroll. Both employer and member contributions are remitted to HOOPP on a monthly basis.
HOOPP’s contribution rates have not changed in more than 20 years* and they are among the lowest of all major Canadian pension plans.
Supported by the overall strength of the Plan, HOOPP has also had the opportunity to periodically increase lifetime pensions for eligible active members.
You can even purchase pre-membership periods of past service if you received employment earnings from your MPC during that period.
*As at December 31, 2023
Year one contributions (member and employer)
Sample scenarios: Year one baseline earnings
Total member contributions to age 65
Total employer (MPC) contributions to age 65
Average annualized earnings at retirement
Annual lifetime pension at age 65
$150,000
$100,000
$75,000
The above examples are for illustrative purposes only. Your annual pension will be different from the amounts shown based on your personal circumstances. The above examples: assume that Farah and Patrick contribute on employment earnings above their baseline earnings annually as described in the scenarios above, starting in year two; assume an annual rate of increase to the CPI of 2%; assume that the YMPE of $71,300 in 2025 increases by 3% annually; assume that HOOPP’s contribution rates do not change; and do not include any cost of living adjustments that may be provided. The monthly pensions assume that for each year of contributory service, the pension received will be 1.5% of the average annualized earnings up to the average YMPE, plus 2% of the average annualized earnings above the average YMPE. No historical benefit improvements on past service are included; the members are assumed to have joined the Plan on January 1, 2025.
Farah and Patrick will both receive a secure pension – for life – in retirement. We can see that the greater their year one baseline earnings, the more pension they can build for retirement. Both took advantage of increasing their earnings every year. However, Farah increased them to her upper earnings limit reflecting adjustments based on CPI + 1%, whereas Patrick based his increases on CPI only. That small difference of 1%, year over year, has a compounding effect that gives Farah a significant boost to her pension.
Farah and Patrick made decisions based on their own personal and professional circumstances to allow them to build a pension that meets their individual retirement needs.
That’s not all. These examples don’t illustrate any future cost of living adjustments that may be provided during retirement, or the impact of other HOOPP features and considerations like the tax-deductibility of contributions, income-splitting in retirement and the opportunity for survivor and disability benefits. On top of all this, many HOOPP members continue to receive lifetime payments well beyond 15 years. In fact, HOOPP currently has over 150 members over age 100 and still receiving their HOOPP pension!
Your retirement, your way
Farah and Patrick will both receive a secure pension – for life – in retirement. We can see that the greater their year one baseline earnings, the more pension they can build for retirement. Both took advantage of increasing their earnings every year. However, Farah increased them to her upper earnings limit reflecting adjustments based on CPI + 1%, whereas Patrick based his increases on CPI only. That small difference of 1%, year over year, has a compounding effect that gives Farah a significant boost to her pension.
Farah and Patrick made decisions based on their own personal and professional circumstances to allow them to build a pension that meets their individual retirement needs.
That’s not all. These examples don’t illustrate the impact of other important HOOPP features and considerations like the tax-deductibility of contributions, income-splitting in retirement, and the opportunity for survivor benefits and COLA – not to mention the impact of living beyond age 85. HOOPP currently has over 150 members over age 100 and still receiving their HOOPP pension!
Your retirement, your way
Farah and Patrick will both receive a secure pension – for life – in retirement. We can see that the greater their year one baseline earnings, the more pension they can build for retirement. Both took advantage of increasing their earnings every year. However, Farah increased them to her upper earnings limit reflecting adjustments based on CPI + 1%, whereas Patrick based his increases on CPI only. That small difference of 1%, year over year, has a compounding effect that gives Farah a significant boost to her pension.
Farah and Patrick made decisions based on their own personal and professional circumstances to allow them to build a pension that meets their individual retirement needs.
That’s not all. These examples don’t illustrate any future cost of living adjustments that may be provided during retirement, or the impact of other HOOPP features and considerations like the tax-deductibility of contributions, income-splitting in retirement and the opportunity for survivor and disability benefits. On top of all this, many HOOPP members continue to receive lifetime payments well beyond 15 years. In fact, HOOPP currently has over 150 members over age 100 and still receiving their HOOPP pension!
Your retirement, your way
The above examples are for illustrative purposes only. Your annual pension will be different from the amounts shown based on your personal circumstances. The above examples: assume that Farah and Patrick contribute on employment earnings above their baseline earnings annually as described in the scenarios above, starting in year two; assume an annual rate of increase to the CPI of 2%; assume that the YMPE of $71,300 in 2025 increases by 3% annually; assume that HOOPP’s contribution rates do not change; and do not include any cost of living adjustments that may be provided. The monthly pensions assume that for each year of contributory service, the pension received will be 1.5% of the average annualized earnings up to the average YMPE, plus 2% of the average annualized earnings above the average YMPE. No historical benefit improvements on past service are included; the members are assumed to have joined the Plan on January 1, 2025.
My MPC is already – or will become – a member of the Ontario Hospital Association (OHA). Not a member? Visit the OHA website for more information.
*As at December 31, 2023.
Look after your loved ones
Protect your pension during a health leave
Retire on your own schedule
Enjoy tax advantages
Count on our investment professionals
Diversify your retirement plan
Earn a pension income for life
As a member of HOOPP, you will never outlive your pension. HOOPP provides stable and reliable income in retirement – a DB pension that is based on a formula, not on unpredictable market returns. Plus, HOOPP may also provide cost of living adjustments which can help protect your pension against inflation.
HOOPP is a valuable component of a total retirement strategy. The peace of mind that comes with having secure and predictable pension income for life in retirement may affect your tolerance for risk and create opportunities for diversification in other areas of your retirement portfolio.
As an independent trust, we have a fiduciary duty to put members first. Your contributions to the Plan are managed by our in-house team of investment professionals. We manage a diversified global portfolio focused on delivering on our pension promise over the long term. You don’t have to navigate unpredictable markets or worry about market volatility affecting the pension you will receive from HOOPP.
Member contributions are tax deductible, which reduces your personal taxes, and employer contributions offer tax advantages to your corporation. In addition, a HOOPP pension is eligible for income splitting in retirement for married or common-law couples.
Retire on your own schedule
As a HOOPP member, you have the flexibility to retire and start receiving your lifetime pension as early as age 55, as late as age 71, or anywhere in between. The choice is yours. HOOPP offers attractive early retirement features like a bridge benefit until age 65, as well as increases to your pension for retiring after 65.
If you are unable to work due to a physical or mental illness, or injury, HOOPP offers disability benefits that may help you continue to build your pension, letting HOOPP work for you when you can’t.
HOOPP also offers survivor benefits, including valuable lifetime pension options for your spouse, that can help protect your loved ones, whether you pass away before or after you retire.
As an incorporated physician, practicing medicine requires a combination of caring for patients and managing a business. With HOOPP as part of your retirement plan, you can focus more on the important work that you do knowing that the pension income you will receive is secure.
Join the Plan and experience these benefits.
Add security to your retirement income
Member benefits
plan.
life.
practice.
retirement.
your
of
part
HOOPP
Make
Total member contributions over 25 years
Year one baseline earnings
Total employer (MPC) contributions over 25 years
Annual lifetime pension at retirement
Average annualized earnings at retirement
Total pension after 15 years
$150,000
$100,000
$75,000
$445,696
$561,577
$287,667
$127,412
$1,911,186
$277,984
$350,259
$191,778
$79,468
$1,192,019
$194,127
$244,600
$143,8
$55,496
$832,435
The above examples are for illustrative purposes only. Your annual pension will be different from the amounts shown based on your personal circumstances. The above examples: assume that the baseline earnings increase annually as described in the scenarios above, assuming an annual rate of increase to the CPI of 2%; assume that the YMPE of $68,500 in 2024 increases by 3% annually; assume that HOOPP’s contribution rates do not change; and do not include any cost of living adjustments that may be provided. The monthly pensions assume that for each year of contributory service, the pension received will be 1.5% of the average annualized earnings up to the average YMPE, plus 2% of the average annualized earnings above the average YMPE. No historical benefit improvements on past service are included; the members are assumed to have joined the Plan after July 1, 2024.
Farah and Patrick will both receive a secure pension – for life – in retirement. We can see that the greater their year one baseline earnings, the more pension they can build for retirement. Both took advantage of increasing their earnings every year. However, Farah increased them to her upper earnings limit reflecting adjustments based on CPI + 1%, whereas Patrick based his increases on CPI only. That small difference of 1%, year over year, has a compounding effect that gives Farah a significant boost to her pension.
Farah and Patrick made decisions based on their own personal and professional circumstances to allow them to build a pension that meets their individual retirement needs.
That’s not all. These examples don’t illustrate any future cost of living adjustments that may be provided during retirement, or the impact of other HOOPP features and considerations like the tax-deductibility of contributions, income-splitting in retirement and the opportunity for survivor and disability benefits. On top of all this, many HOOPP members continue to receive lifetime payments well beyond 15 years. In fact, HOOPP currently has over 150 members over age 100 and still receiving their HOOPP pension!
Your retirement, your way
Farah and Patrick will both receive a secure pension – for life – in retirement. We can see that the greater their year one baseline earnings, the more pension they can build for retirement. Both took advantage of increasing their earnings every year. However, Farah increased them to her upper earnings limit reflecting adjustments based on CPI + 1%, whereas Patrick based his increases on CPI only. That small difference of 1%, year over year, has a compounding effect that gives Farah a significant boost to her pension.
Farah and Patrick made decisions based on their own personal and professional circumstances to allow them to build a pension that meets their individual retirement needs.
That’s not all. These examples don’t illustrate the impact of other important HOOPP features and considerations like the tax-deductibility of contributions, income-splitting in retirement, and the opportunity for survivor benefits and COLA – not to mention the impact of living beyond age 85. HOOPP currently has over 150 members over age 100 and still receiving their HOOPP pension!
Your retirement, your way
Total pension paid from age 65 to 80
Year one contributions (member and employer)
Sample scenarios: Year one baseline earnings
Total member contributions to age 65
Total employer (MPC) contributions to age 65
Annual lifetime pension at age 65
Total pension paid from age 65 to 80
Sample scenarios: Year one baseline earnings
Year one contributions (member and employer)
Total member contributions to age 65
Annual lifetime pension at age 65
Total employer (MPC) contributions to age 65
Total pension paid from age 65 to 80
$150,000
$100,000
$75,000
$27,482
$443,348
$558,619
$126,741
$1,901,115
$17,086
$275,636
$347,301
$78,797
$1,181,955
$11,888
$191,779
$241,642
$54,824
$822,360
Earn a pension income for life
As a member of HOOPP, you will never outlive your pension. HOOPP provides stable and reliable income in retirement – a DB pension that is based on a formula, not on unpredictable market returns. Plus, HOOPP may also provide cost of living adjustments which can help protect your pension against inflation.
Diversify your retirement savings
HOOPP is a valuable component of a total retirement strategy. The peace of mind that comes with having secure and predictable pension income for life in retirement may affect your tolerance for risk and create opportunities for diversification in other areas of your retirement portfolio.
Earn a pension income for life
Earn a pension
income for life
Diversify your retirement plan
Count on our investment professionals
Enjoy tax advantages
Protect your pension during a health leave
Look after your loved ones
Consider consulting with your advisor to determine the baseline earnings amount that is right for you.
Choose baseline earnings that reflect your expected employment earnings today and give you room to grow them to meet your future retirement needs.
Your baseline earnings can be less than or equal to your actual employment earnings, but not more.
You can only contribute on the actual employment earnings you draw from your MPC (i.e., salary that you report on a T4, not dividends).
Keep in mind
