How Richard Thaler Won the 2017 Nobel Prize

for Economics

As told by the Public Employees

Pension Plan

Largest DC plan in Canada

65,000 members

$9.7 billion in assets

We are biased, lazy, impulsive and over-

confident

We often make irrational and misguided

economic decisions

We need help

Dr. Thaler’s Thesis

Don’t allow

decisions

Spectrum of Policy Choices

Nudge toward

good decisions

Take No

Responsibility

For Decisions

Anchoring

Framing

Availability

Overconfidence

Challenges to Making Better

Economic Decisions

Loss Averse

Status Quo Bias

Poor Self Control

Social Influence

Challenges to Making Better

Economic Decisions

Welcome To

Participation

Contribution Rates

Locking in and Vesting

Requirements

Asset Allocation

Decumulation

Options

Fund Options – PEPP Steps

Assessing Your Investor Profile

What type of investor are you?

Profile is a guide only

Review your profile regularly

Complete My PEPP Investor Profile

Portfolio Asset Growth

Based on a 6% rate of return, before fees, and a $8,100

annual contribution.

$774,000

$1,081,000

Why Start Early?

To end up with the

same amount as Jill

at age 65, Jack needs

to invest $182/month

to make up the

shortfall

Jack & Jill both contributed $100/month for 30 years with a 6% annual rate of return.

Drawdown Guidance

Enhanced Statement

Successful Outcome

Thank you!