Lifetime Pension Performance

Your Lifetime Pension payments change in your June payment each year. The adjustment to your payment reflects the net investment performance and mortality experience of the Lifetime Pension pool. This is how it works.

Lifetime Pension Adjustment

We adjust your payments based the previous fiscal year's (April 1 - March 31) Lifetime Pension pool performance. 

When you purchase your Lifetime Pension, your money is combined with the money of other members that have purchased a Lifetime Pension. The combined money is what forms the Lifetime Pension Fund, which is a single long-term investment strategy using the existing PEPP Moderate Fund.

Pension Payment Notification

Every June you will receive a letter indicating what your new monthly payment amount will be for the year. This will help you with your budget planning for the year.

We expect payments will rise over time but depending on the Lifetime Pension performance they may go up or down.

Yearly Adjustment

* Your first annual adjustment for investment performance varies based on your Lifetime Pension purchase date.

First Year - Prorated Adjustment

Your first annual pension payment adjustment will be pro-rated based on the Lifetime Pension Fund performance and your Lifetime Pension purchase date. The adjustment will be applied to the monthly payment you were receiving.

After this first year adjustment, following annual adjustments will be fully applied.

How performance impacts your payments

The return for the Lifetime Pension Fund is calculated as (1+4%) x (1+ A) – 1, where 4% is the hurdle rate established for the Fund, and the Investment Adjustment (A) is the percentage difference between the total assets of the Fund at March 31 and the total Lifetime Pension liability at March 31 after the adjustment for the mortality experience, with allowance for the partial adjustments for members who joined the Fund during the year.

Factors That Impact Lifetime Pension Fund Performance

The Fund’s performance is based on:

• investment returns for the Lifetime Pension Fund
• when new Lifetime Pension purchases are made
• if the number of members remaining in the Lifetime Pension pool is higher or lower than expected
• the fees associated with the administration and investment management of the Fund