The Pension Formula

HEPP is a defined benefit pension plan, which means your pension is calculated using a formula. The two key components in the formula are your highest average earnings and your total years of credited service.

To determine your highest average earnings we use the highest five years of annualized earnings from your last 11 years in the Plan. If you have not completed five years of participation, your actual annualized earnings will be used to determine the average. The formula used to calculate your monthly pension is:

  • 1.5% of your highest average earnings up to the Canada Pension Plan’s YMPE
  • Plus 2.0% of your highest average earnings over the YMPE
  • Multiplied by your years of credited service 
  • Divided by 12.

Early Retirement Reduction

If you are under age 60 when you retire and have not reached your Magic 80 Date, an early retirement reduction will be applied to your pension.

Bridge Benefit

The bridge benefit is paid until age 65 and is designed to offset a portion of the early retirement reduction. If you are entitled to a bridge benefit, it will be quoted on your Pension Estimate, which you will receive with your retirement package.

Supplementary Benefit

If you are under age 65 and qualify for an immediate pension when you retire, you are eligible to receive the supplementary benefit. This benefit is payable only to you as the member, until age 65 or your death, whichever occurs first. Please refer to your Pension Estimate for the estimated amounts of your supplementary benefit.

© 2017 HEB Manitoba


Disclaimer - This website provides a basic overview of the Healthcare Employees' Pension Plan (HEPP) and the Healthcare Employees' Benefits Plan (HEBP) (collectively the HEB Manitoba Pension and Benefit Plans). Not all employers participate in all Plans. Please check your eligibility for benefits with your employer.

HEB Manitoba is a name notation registered by the Healthcare Employees’ Pension Plan – Manitoba and the Healthcare Employees’ Benefits Plan – Manitoba and under which each of their respective undertakings is carried out.

The information on this website is for convenience of reference only and has no official sanction. View our full disclaimer here.