Investing in PEPP

The Public Employees Pension Plan (PEPP) offers eight investment choices. These funds offer a mix of asset classes, including equities, alternatives and income. You may invest in up to three funds at one time.

Investment options

PEPP offers six asset allocation funds:

• PEPP Steps;
• Conservative Fund;
• Moderate Fund;
• Balanced Fund;
• Growth Fund; or
• Accelerated Growth Fund.

PEPP also offers two specialty funds:

• Money Market Fund; and
• Bond Fund.

You may invest in one asset allocation fund at a time, and add one or both of the specialty funds or invest solely in specialty funds.

Asset allocation funds invest in a variety of markets with different asset classes (equities, alternatives and income). The Bond and Money Market Funds invest in fixed income assets. Each fund – or combination of funds – has different levels of risk and expected returns.

Professional investment managers manage all PEPP investment funds under the direction of the Public Employees Pension Board.

What type of investor are you?

Every PEPP member is unique. PEPP's goal is to ensure you are well informed about the Plan and the choices you make. PEPP offers the My PEPP Investor Profile. It will guide you toward the PEPP investment fund best suited to you.

PEPP's easy option

If you're not comfortable picking a fund, PEPP makes it easy by offering a default fund called PEPP Steps. New members are automatically enrolled in PEPP Steps, but members may choose to invest in this fund at any time.

The PEPP Steps Fund is a lifecycle investment option made up of 13 steps. You enter the fund at the step that matches your age and then are automatically moved into more conservative asset mixes as you progress through the age bands.

This fund may be an appropriate investment option for Plan members who prefer a hands-off approach to investing.

Buying units

All of PEPP’s investment funds are recorded in units. Your PEPP account balance is the number of units you have in each investment option multiplied by the current unit value for each option.

When you contribute to the Plan, you buy units in the investment option or options you selected.

When you transfer from one option to another, or transfer out of PEPP, you sell units. The amount you receive at payout or transfer is calculated using the unit value in effect at the date of payment.

Units are valued daily following market close. Once a new unit value is declared, your account is valued using the new unit value. Return on investment is reflected in the changing unit value.

Want to change your investment option?

To change how your contributions are invested or to transfer money from one investment fund to another, you can make a transfer online through PLANet for free. Or, you can complete and submit the Investment Option Changes form to PEPP.

Please see the Member Transaction Fee Listing for fees on changing your investment options.

Investment fees

PEPP does not bill you separately for investment fees. The Plan deducts these expenses from the unit value.

Fees vary between investment options. All investment options incur a common administration fee, but each option is charged a different investment fee based on the asset mix, as some investments cost more to manage than others.

Fees only cover the actual costs of operating the Plan since PEPP operates on a cost recovery basis. The fees for each investment fund are reflected as a management expense ratio (MER) and are relatively low compared to funds invested through financial institutions or investors.

PEPP combines and deducts the fees below from the unit value applied to member accounts:

• Administration fees: salaries, benefits, computer systems and general expenses of operating the Plan, including investment consultant services.
• Investment custodial fees: safekeeping and transaction fees.
• Investment manager fees: managing investments within the Plan.

See the PEPP Annual Report for a full disclosure of fees.