Self-employed Ontario doctors finally gain access to pension plan

In Canada, starting January 2025, the Healthcare of Ontario Pension Plan (HOOPP) will introduce new eligibility rules that allow incorporated self-employed doctors to join the pension plan. This change follows years of advocacy by the Ontario Medical Association (OMA), representing over 43,000 physicians, including 26,000 incorporated doctors who will soon be eligible. Previously, self-employed doctors were ineligible due to their dual role as both employer and employee, which complicated contribution structures. The HOOPP currently manages nearly $113 billion for a broad membership including nurses and support staff but had not catered to individual practitioners until now. The OMA has expressed optimism regarding the uptake of this new option among doctors, with expectations of high interest to obtain a defined-benefit pension for retirement security. The incorporation of doctors marks a significant shift in the pension landscape, offering them a choice that many have felt was long overdue. The changes will not only benefit the individual doctors but could also enhance the ability of smaller medical practices to attract and retain quality staff, as offering pension benefits becomes a more viable tool for recruitment in a competitive job market. Rachel Arbour, HOOPP’s head of plan benefits, design and policy, highlighted the importance of creating opportunities for more health care workplaces. She indicated that the initiative aims to expand the plan's reach within the Ontario healthcare community, enabling a structured pension solution that supports the financial retirement strategies of incorporated physicians. As the announcement approaches the new year, incorporated doctors are weighing their options in light of this development, particularly younger physicians who are keen to establish a stable retirement future. While some, like Dr. Voudouris, recognize that they may not fully benefit from the plan, younger doctors are optimistic about enhanced financial security that the HOOPP could provide. The focus now turns to the details of the program and how incorporation will influence individual contribution rates based on determined baseline incomes. In a rapidly evolving healthcare environment, this pivotal decision is scrutinized as a substantial positive advancement for medical professionals in Ontario.