The Healthcare of Ontario Pension Plan (HOOPP) posted a 9.7 per cent return in 2024, bringing its net assets to $123 billion, up from $112.6 billion the previous year. The plan’s funded status remains strong at 111 per cent, ensuring stability for its nearly 478,000 members.
The latest results reflect adjustments made to enhance member benefits, including an improved benefit formula for eligible active members and a full cost-of-living adjustment for retirees and deferred members. HOOPP also revised its pension liabilities to account for longer life expectancies, aligning with research from the Canadian Institute of Actuaries.
“At HOOPP, we are dedicated to ensuring our members have peace of mind when it comes to planning for their retirement,” said Jeff Wendling, HOOPP’s president and CEO. “A realistic understanding of pension liabilities and future obligations allows the plan to be prepared to fulfill our pension promise for years to come.”
Market fluctuations and geopolitical uncertainty shaped 2024, but HOOPP’s diversified investment strategy helped navigate volatility. Over half of its assets—more than $60 billion—are invested in Canada, including $40 billion in government bonds. Bonds remain a key part of the fund’s investment approach, providing liquidity that supports diversification across asset classes and regions.
“As I like to say, HOOPP is a buyer when others are sellers,” said Michael Wissell, HOOPP’s chief investment officer. “As a result of our focus on ensuring liquidity, the global economic volatility we saw in 2024 was an opportunity for us rather than a barrier to success.”
Among HOOPP’s asset classes, public equities delivered the highest return at 17.9 per cent, followed by private equity at 12.7 per cent and infrastructure at 12.3 per cent. Fixed-income investments, including bonds, saw a modest return of 1.9 per cent.
Beyond financial performance, HOOPP expanded its operations in 2024, launching a centralized relationship management system to streamline investment interactions and an artificial intelligence lab to explore new technology applications. The plan also maintained one of the lowest operating costs among its Canadian peers at 0.4 per cent.
The organization also grew its reach, adding 32 new employers, primarily from small healthcare providers such as hospices and mental health clinics. It also announced that incorporated physicians will be eligible to join HOOPP as of January 2025.
“HOOPP continues to evolve our operations to align with the growth of our plan assets and our membership,” said Wissell. “Being able to perform at our best as investment professionals requires a lot of teamwork from our internal partners who are working with and developing these new technologies.”
With more than 700 participating employers, HOOPP remains a key player in Ontario’s healthcare sector, serving nurses, medical technicians, and support staff. It pays out more than $3 billion in pension benefits annually and continues to advocate for retirement security, including research with the Conference Board of Canada on the economic impact of defined benefit pensions.
