Employee required contributions to HOOPP are made by payroll deduction and apply to the current year of service. It is your responsibility as a HOOPP employer to calculate, deduct and remit employee required contributions. If your organization uses an external payroll services provider, it might be helpful to supply that organization with the information contained in this section of the manual. If you or your payroll provider have any questions, contact HOOPP.
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Factor 3: Year’s Maximum Pensionable Earnings (YMPE)
The YMPE is set each year by the federal government based on the average wage in Canada.
YEAR | YMPE |
|---|---|
2021 | $61,600 |
2020 | $58,700 |
2019 | $57,400 |
2018 | $55,900 |
2017 | $55,300 |
2016 | $54,900 |
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For part-time employees, or members who terminate part-way through the year, the difference between the actual earnings they receive and their annualized earnings can be significant. If contributions are not deducted correctly, it can result in the payment of an incorrect pension amount. All information reported to HOOPP for that final period of employment is binding once submitted and is used by HOOPP to calculate a member’s pension. For more information on how to report a 8. Termination termination please refer to section 8. Termination
A member’s contributions may decrease from one year to the next. For example, This would occur for a member whose annualized earnings are above the YMPE and their annualized earnings remain the same from one year to the next. Their annual contribution amount would decrease because of the increase in the YMPE, more of their contributions will be calculated at the low 6.9% contribution rate than in the previous year.
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