PEPP is a defined contribution pension plan. Your contributions and your employer’s contributions, plus any return on investment, will be used to provide you with income based upon the account balance you have built, when you retire. Your account balance is the number of units you have in each fund multiplied by the current unit value for each fund.
Your spouse is the beneficiary of your PEPP account if you die. Your spouse can waive this right by completing a Spousal Waiver form.
PEPP has Pension Information Officers that can assist you with any PEPP account inquiries. Retirement Information Consultants are also available to help with your retirement planning.
The following information is a brief summary only. It is not intended to be all-inclusive. For further information, please refer to your Plan member's booklet.
Type of Plan: Defined Contribution
- Vesting: Immediate upon enrolment to the Plan
- Rate of Contribution: variable by employer
- Voluntary Contributions: allowed (see PEPP Talk on Voluntary Contributions)
- Normal Retirement: age 65 (see Retirement Income Options booklet)
- Early Retirement: age 50 (see Retirement Income Options booklet)
- Deferred Retirement: deferred to the end of the year you reach age 71 (see Retirement Income Options booklet)
- Retirement Options: Variable Pension Benefit (VPB), Annuity, or Prescribed RRIF (see Retirement Income Options booklet)
- Termination Benefit: vested – account balance (employee, employer, and any voluntary contributions)
- Termination Options: leave funds in Plan or transfer funds from Plan (see PEPP Talk on Termination Options)
- Death Benefit Before Retirement: account balance (see PEPP Talk on Death Benefit Before Retirement)
- Survivor Benefit After Retirement: depends on option selected at retirement (see PEPP Talk on Survivor Benefit After Retirement)
- Breakdown of Spousal Relationship: division allowed (see PEPP Talk on Breakdown of Spousal Relationship)
- Maintenance Enforcement: attachment allowed
- Disability Provisions: none
- Terminal Illness Provisions: available (see PEPP Talk on Terminal Illness Payment)
- Investment Options : PEPP Steps Fund, Accelerated Growth Fund, Growth Fund, Balanced Fund, Moderate Fund, Conservative Fund, Bond Fund, Money Market Fund (see PEPP Talk on Changing Investment Options)
Evaluating or choosing a fund based on unit values is not a good indication of how the fund is doing overall. For instance, on November 1, 2007 PEPP introduced several investment funds with a unit value of $100.0000. On the same day, the existing Balanced Fund had a unit value of $121.6630, while the Short-term Bond Fund’s unit value was $106.0753. This means that the Balanced Fund and Short-term Bond Fund will generally always have a higher unit value than the funds that started at $100.0000 on the same date.
PEPP offers you a number of resources to determine how each fund has performed and which fund may be best suited to you.
- Start with My PEPP Investor Profile to assist you in determining which fund may suit you the best.
- Review the Fund Fact Sheet for the fund you are considering.
You will learn about the potential risks and returns associated with the fund.
- Review the Monthly Performance Bulletins to see how the funds have performed over various periods of time. Generally you will want to focus on the longer term returns since in most cases you should be investing over a longer time period.
- Please contact us. Our Retirement Information Consultants are available to assist you in the process of choosing an investment fund or answering any other questions you have.
Did You Know?
PEPP offers the Variable Pension Benefit and Saskatchewan Pension Annuity Fund as retirement options for members of the Plan.