Investing
The Plan offers three tiers of investment options for you to choose from. Your individual investment strategy should reflect your personal savings goals and tolerance for financial risk. You should also consider your overall financial picture, including any external personal investments. Regardless of which funds you choose, it is always your responsibility to ensure that your fund choices meet your investment objectives. It is also important to periodically review your investments, your objectives, and the investment options under the Plan to help ensure that your retirement savings will meet your retirement goals.
To help achieve long-term retirement security, you should also give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform well often cause another asset category, or another particular security, to perform poorly. The Department of Labor and the Internal Revenue Service advise that if you invest more than 20% of your retirement savings in any one company or industry, such as the PG&E Stock Fund, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.
The Employee Retirement Income Security Act of 1974 (ERISA) imposes certain duties on the parties who are responsible for the operation of the Plan. These parties, called fiduciaries, have a duty to manage Plan assets in a prudent manner. However, an exception exists for plans which comply with section 404(c) of ERISA and permit a Participant or beneficiary to exercise control over the assets in his or her account and choose from a broad range of investment alternatives. This Plan is intended to be an ERISA section 404(c) plan. This means that you, not the Plan Administrator, the Company or any other employee, are responsible for investment decisions relating to the assets in your account under the Plan.
Investment information, including prospectuses, fund descriptions, and investment performance, can be found by logging on to Fidelity NetBenefits℠ online account services at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
Participants' investment options are structured in three tiers:
  • Tier 1: Target Date Funds
  • Tier 2: Core Funds
  • Tier 3: Self-Directed Account
Tier 1: Target Date Funds
Tier 1 provides a suite of ten individual funds that each provides a broadly diversified portfolio consisting principally of U.S. and international common stock and marketable fixed income securities with an asset allocation that is suitable for a participant with a retirement date in the fund's specified target year. The asset allocation is established by the fund's investment manager and is incrementally adjusted to reflect an appropriate balance of opportunities for growth and stable income relative to the stated target retirement date. The RSP Retirement Income Fund is designed for investors who have reached their retirement date. The strategy is comprised mostly of bond funds to provide stability and income; it also includes an allocation to equities to provide diversification and some growth during retirement. You should be aware that the RSP Retirement Income Fund will still be exposed to fluctuations in the security markets.
Each Target Date Fund has its own fund description which describes the investment mix and strategy of each fund. These funds are based on well-established investing concepts related to diversification and risk. However, these funds do not guarantee a positive return or adequate funds throughout retirement. Be sure to review the applicable fund description before making your investment decision.
The Target Date Funds are the Plan's default investment option(s). If you do not provide instructions on how you want your contributions invested, they will be invested in the Target Date Fund with a target date closest to your 65th birthday. For participants over age 65, they will be invested in the RSP Retirement Income Fund.
PG&E provides oversight and monitoring of the Target Date Funds investment manager to ensure that the funds remain consistent with their stated objectives. Current information regarding fund performance and fees is available through Fidelity NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
Tier 2: Core Funds
The Core Funds include the following ten investment options:
  • RSP Money Market Fund
  • RSP Short Term Bond Index Fund
  • RSP Bond Index Fund
  • RSP U.S. Government Bond Index Fund
  • RSP Large Company Stock Index Fund
  • RSP Small Company Stock Index Fund
  • RSP Total U.S. Stock Index Fund
  • RSP International Stock Index Fund
  • RSP World Stock Index Fund
  • RSP Emerging Markets Enhanced Index Fund
  • PG&E Corporation Stock Fund
PG&E provides oversight and monitoring of the Core Fund managers to ensure that the funds remain consistent with their stated objectives.
RSP Money Market Fund
The Fund seeks to offer safety of principal by investing in short-term government and non-government debt securities.
The Fund invests principally in the following instruments: U.S. Treasury bills, notes and bonds (which are direct obligations of the U.S. government).
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP Short Term Bond Index Fund
The Fund seeks to match the returns of the Barclays Capital U.S. 1–3 Year Government/Credit Bond Index.
The Fund is managed using a "passive" or "indexing" investment approach, by which the Fund's investment manager attempts to replicate, before expenses, the performance of the Barclays Capital U.S. 1–3 Year Government/Credit Bond Index (the "Index").
Since it is an index fund, the Fund invests in a well-diversified portfolio that is representative of the short-term domestic bond market.
The performance of the Fund depends primarily on the value of its bond holdings, changes in interest rates, and the credit quality and maturity of its investments. In general, bond prices tend to increase when interest rates decrease, and vice versa. This price fluctuation can produce decreases in principal value if interest rates rise; this effect is often most pronounced for longer maturity bonds. Therefore, the Fund's investment in high-quality bonds with a short-term maturity will generally produce steady income with reduced risk compared with funds that invest in longer maturity bonds.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP Bond Index Fund
This Fund seeks to match the returns of the Barclays Capital Aggregate Bond Index, a benchmark representing the broad, intermediate maturity, investment-grade U.S. bond market.
The Fund invests primarily in government, corporate, mortgage-backed, and asset-backed fixed-income securities of intermediate maturity; all bonds are investment grade.
Since it is an index fund, the Fund invests in a well-diversified portfolio that is representative of the broad domestic bond market.
The performance of the Fund depends primarily on the value of its bond holdings, changes in interest rates, and the credit quality and maturity of its investments. In general, bond prices tend to increase when interest rates decrease, and vice versa. This price fluctuation can produce decreases in principal value if interest rates rise; this effect is often most pronounced for longer maturity bonds. Therefore, the Fund's investment in high-quality bonds with an intermediate-term maturity will generally produce steady income with reduced risk compared with funds that invest in longer maturity bonds.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP U.S. Government Bond Index Fund
This Fund seeks to match the returns of the Barclays Capital US Government Bond Index, a benchmark representing investment-grade fixed income securities issued by the United States government or its agencies.
The Fund invests in a sample of bonds in the Barclays Capital US Government Bond Index in proportion to their weight in the index. All bonds are investment grade. Since it is an index fund, the Fund invests in a well-diversified portfolio that is representative of the U.S. government and agency intermediate maturity bond market.
The performance of the Fund depends primarily on the value of its bond holdings, changes in interest rates, and the credit quality and maturity of its investments. In general, bond prices tend to increase when interest rates decrease, and vice versa. This price fluctuation can produce decreases in principal value if interest rates rise; this effect is often most pronounced for longer maturity bonds. Therefore, the Fund's investment in high-quality bonds with an intermediate-term maturity will generally produce steady income with reduced risk compared with funds that invest in longer maturity bonds.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP Large Company Stock Index Fund
This Fund seeks to match the performance of the Standard & Poor's 500® Index, a benchmark representing the large-capitalization U.S. stock market.
The Fund invests in all 500 stocks in the S&P 500® Index in proportion to their weightings in the index. The S&P 500® Index provides exposure to about 78% of the market value of all publicly-traded common stocks in the United States. The strategy of investing in the same stocks as the S&P 500® Index assures a return similar to the benchmark, minimizes the need for trading, and results in lower expenses.
The performance of the Fund depends on the value of its holdings. Stock values may vary from day to day in response to the corporate performance of individual companies and general market and economic conditions. The Fund is diversified to minimize the impact of underperformance by a single company. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or short-term investments.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP Small Company Stock Index Fund
This Fund seeks to match the performance of the Russell Small Cap Completeness Index, a benchmark representing the mid-and small-capitalization sectors of the U.S. stock market.
The Fund invests in all of the stocks in the Russell Small Cap Completeness Index in proportion to their weightings in the index. These stocks represent about 22% of the market value of all publicly-traded common stocks in the United States. The strategy of investing in the same stocks as the Russell Small Cap Completeness Index assures a return similar to the benchmark, minimizes the need for trading, and results in lower expenses.
The performance of the Fund depends on the value of its holdings. Stock values may vary from day to day in response to the corporate performance of individual companies and general market and economic conditions. The Fund is diversified to minimize the impact of underperformance by a single company. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or short-term investments.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP Total U.S. Stock Index Fund
This Fund seeks to match the performance of the Russell 3000 Index, a benchmark representing the 3000 largest U.S. companies.
The Fund invests in all of the stocks in the Russell 3000 Index in proportion to their weightings in the index. These stocks represent about 98 percent of the market value of all publicly-traded common stocks in the United States. The strategy of investing in the same stocks as the Russell 3000 Index assures a return similar to the benchmark, minimizes the need for trading, and results in lower expenses.
The performance of the Fund depends on the value of its holdings. Stock values may vary from day to day in response to the corporate performance of individual companies and general market and economic conditions. The Fund is diversified to minimize the impact of underperformance by a single company. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or short-term investments.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
RSP International Stock Index Fund
This Fund seeks to match closely the performance of the Morgan Stanley Capital International World ex-US Index, a benchmark representing the large-capitalization sectors of developed stock markets outside of the United States.
The Fund typically invests in all the stocks in the MSCI World ex-US Index in proportion to their weightings in the index. The strategy of investing in the same stocks as the MSCI World ex-US Index assures a return similar to the benchmark, minimizes the need for trading, and results in lower expenses.
The performance of the Fund depends on the value of its holdings. Stock values may vary from day to day in response to the corporate performance of individual companies and general market and economic conditions. The Fund is diversified to minimize the impact of underperformance by a single company. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or short-term investments. Investment in the Fund is made in U.S. dollars; therefore, the Fund is also exposed to fluctuations in foreign currencies.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
You are not allowed to make more than one exchange into or out of the RSP International Stock Index Fund in any 30-day period.
RSP World Stock Index Fund
This Fund seeks to match closely the performance of the Morgan Stanley Capital International World All Country World (MSCI ACWI) Index, a benchmark representing global developed and emerging markets.
The Fund typically invests in a sample of the stocks in the MSCI ACWI Index in proportion to their weightings in the index. The strategy of investing in a sample of the same stocks as the MSCI ACWI Index assures a return similar to the benchmark, minimizes the need for trading, and results in lower expenses.
The performance of the Fund depends on the value of its holdings. Stock values may vary from day to day in response to the corporate performance of individual companies and general market and economic conditions. The Fund is diversified to minimize the impact of underperformance by a single company. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or short-term investments. Investment in the Fund is made in U.S. dollars; therefore, the Fund is also exposed to fluctuations in foreign currencies.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
You are not allowed to make more than one exchange into or out of the RSP World Stock Index Fund in any 30-day period.
RSP Emerging Markets Enhanced Index Fund
This Fund seeks to outperform the performance of the Morgan Stanley Capital International Emerging Markets Index, a benchmark representing global emerging markets.
The Fund typically invests in foreign common stocks expected to offer the greatest value in countries determined to be the most attractive based on the investment manager's investment process.
The performance of the Fund depends on the value of its holdings. Stock values may vary from day to day in response to the corporate performance of individual companies and general market and economic conditions. The Fund is diversified to minimize the impact of underperformance by a single company. In the short term, stock values may be volatile, but over the long term, they have the potential for higher returns than bond or short-term investments. Investment in the Fund is made in U.S. dollars; therefore, the Fund is also exposed to fluctuations in foreign currencies.
Be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
You are not allowed to make more than one exchange into or out of the RSP Emerging Markets Enhanced Index Fund in any 30-day period.
PG&E Corporation Stock Fund
This Fund is designed to provide you with an opportunity to own part of PG&E Corporation and to share in the investment performance of PG&E Corporation common stock. PG&E Corporation common stock is listed on the New York Stock Exchange (NYSE) under the symbol "PCG." All matching employer contributions are initially invested in this Fund.
The PG&E Corporation Stock Fund is invested primarily in PG&E Corporation common stock, with a small amount of short-term investments that is held to provide the liquidity needed to accommodate your buy and sell orders on a daily basis.
Under the accounting method used for the Fund, each participant owns units of the Fund rather than shares of stock. Each unit represents an interest in the Fund's PG&E Corporation common stock and a small amount of the Fund's short-term investments.
Each day, the value of each unit is adjusted to reflect each participant's interest in the change in the price of PG&E Corporation common stock, any dividend activity, and interest earned on the short-term investments held by the PG&E Corporation Stock Fund. Dividends are used to either purchase additional units for participants or pay participants in cash (see "PG&E Corporation Stock Fund Dividends").
The Fund is not diversified and effectively invests in a single security. As a result, the Fund's returns will be driven principally by the performance of PG&E Corporation common stock.
PG&E has filed a registration statement with the Securities and Exchange Commission covering the offer and sale of PG&E Corporation common stock under the Plan. In addition to reading this summary plan description, you should read the description of the Fund that is contained in a separate prospectus that is provided along with this summary plan description before investing in the PG&E Corporation Stock Fund. This prospectus is available at http://spd.mypgebenefits.com/retirement-savings-prospectus.pdf and is attached at the end of this Summary of Benefits Handbook. Also, be sure to review the fund description for more information including the Fund's investment manager, applicable fees and investment return experience before making your investment decision. The fund description can be found on NetBenefits℠ at www.401k.com or by calling Fidelity's RSP Service Center at 877-PGE-401K (877-743-4015).
Tier 3: Self-Directed Account (Fidelity BrokerageLink)
Tier 3 is a self-directed brokerage account that provides investment choices beyond the funds in Tiers 1 and 2 of the Plan. Through the Self-Directed Account, you can invest in mutual funds available in Fidelity FundsNetwork through the use of Fidelity BrokerageLink.
If you wish to invest in funds that are available through the Self-Directed Account, you must open a BrokerageLink account directly with Fidelity Brokerage Services LLC (or FBSLLC). The terms of the brokerage account, including fees, are established in written agreements between FBSLLC and participants. FBSLLC establishes the terms and provisions applicable to Fidelity BrokerageLink holdings and transactions.
FBSLLC retains full control over the mutual funds made available through Fidelity's FundsNetwork. Mutual funds may be added or closed at the sole discretion of FBSLLC. Neither the Plan Administrator nor the Corporation selects or monitors the offering of specific mutual funds through BrokerageLink or the terms and provisions applicable to Fidelity BrokerageLink holdings and transactions. Therefore, participants choosing to enroll in BrokerageLink are fully responsible for their investment decisions, including all appropriate research regarding the suitability of investing in any such funds.
You cannot use the Self-Directed Account to invest in PG&E Corporation common stock or in any of the Plan's other Tier 1 or Tier 2 funds. Participant account balances invested in a Self-Directed Account must be exchanged into one or more of the Plan's Tier 1 or Tier 2 funds before such amounts are available for a participant loan, withdrawal or distribution.
For additional discussion of the Self-Directed Account and BrokerageLink, please refer to the BrokerageLink Fact Sheet available under the Plan Information and Documents section, and the BrokerageLink Brochure and materials available under the BrokerageLink section of NetBenefits℠ at www.401k.com, Or, you may contact Fidelity's RSP Service Center at 877-PGE-401k (877-743-4015) and ask to be transferred to a BrokerageLink representative.