July 10, 2025

Big News for Ontario’s Incorporated Physicians: HOOPP Membership Now Open

Written by Leanne Seel, CPA, CA
An image of a physician who just considered HOOPP as part of his retirement plan.

Incorporated physicians in Ontario are now eligible to join the Healthcare of Ontario Pension Plan (HOOPP). This change gives doctors a new, structured option to consider as part of their long-term retirement planning.

What’s Changed with HOOPP?

Previously, HOOPP membership was limited to healthcare workers employed by participating organizations. Now, physicians who are incorporated under a Medicine Professional Corporation (MPC) and receive employment income through that MPC can enroll in HOOPP. This includes doctors running private practices, working in clinics, or providing hospital-based services.

Potential Benefits

HOOPP is a defined benefit pension plan, which means it offers:

  • Inflation protection
  • Survivor benefits

Key Considerations for Physicians

If you’re an incorporated physician and considering joining HOOPP, here’s what you need to know:

  1. Your MPC must become a HOOPP employer – This involves registering your corporation with HOOPP.
  2. Your MPC must become a member of the Ontario Hospital Association if it has not joined previously. There are dues associated with membership that are based on membership class and organization size. More information on the OHA website: https://www.oha.com/membership/membership-types
  3. You must be receiving employment income from your MPC – Dividends or other forms of income do not qualify as pensionable earnings.
  4. Contributions are shared – Both the MPC (as employer) and the physician (as employee/member) contribute to the plan. 2025 contribution rates for the employee/member portion are 6.9% on annualized earnings up to the yearly maximum pensionable earnings (YMPE), which is $71,300 for 2025, and 9.2% on annualized earnings above the YMPE. Employer contributions are 126% of the employee portion. As an example, if you draw $150,000 as a base salary from your MPC in 2025, the total HOOP contributions for 2025 would be just under $27,500, including both employer and employee portions. [Calculated as 71,300 x .069 contribution rate x 2.26 to include both member and employer portions + 78,700 salary in excess of YMPE x .092 contribution rate x 2.26 to include both member and employer portions.]
  5. Benefits are calculated based on years of service and earnings. As an example, according to the pension estimator available on the HOOP website, a 30-year-old physician who joins HOOP in 2025 with $150,000 of annualized earnings, salary growth of 3% per year, can expect to receive approximately $10,750 per month starting at age 55 (including $1,275 bridge benefit that stops at age 65). The pension estimator is available here if you’d like to run your own scenario: https://hoopp.com/join-hoopp/members-joining-hoopp/pension-estimator-for-prospective-members/pension-estimator
  6. The earliest you can begin receiving your pension is age 55.
  7. Employer and employee contributions must be remitted to HOOP on a monthly basis.
  8. Employer contributions are tax deductible for your MPC and member/employee contributions are tax deductible on your personal tax return. Your MPC must report a pension adjustment on your T4, which will reduce your RRSP room.
  9. Employees of your MPC may also be eligible. Any new full-time employees hired after participation in HOOP has started must join the plan. New part-time employees and existing employees hired before participation started can choose to join the plan at any time. This may make your MPC an attractive employer for potential employees, but it comes at a cost for you as you will be required to pay the employer contributions of their pensions in addition to your own.

Is it Worth it?

If you value predictable, inflation-protected income and want to offload investment and longevity risk, then HOOP can be an attractive option even with the higher cost of paying both the employer (MPC) and employee (personal) portions.

However, if you prefer flexibility and control, access to your capital at any time, and want to optimize for estate planning, maximizing your own private investing contributions might be more appealing.

Contact McCay Duff LLP if You are Eligible to Join the Healthcare of Ontario Pension Plan (HOOPP)

At McCay Duff LLP, our trusted team of Chartered Professional Accountants provides high-quality tax and business advisory services to businesses and individuals in Ottawa and the surrounding area. Your McCay Duff LLP consultant can help you determine whether joining the HOOP plan makes sense for your Medicine Professional Corporation. Contact us online or by telephone at 613-236-2367 or toll-free at 1-800-267-6551.