Pep has largely been MIA for a long while. Last we heard of him in the moderator section of the forum he said he was looking into helping solve the server situation (which was a complicated issue) but whatever he's been doing, he failed to communicate to the rest of the active moderation team through it. So we've been stagnating and answering countless PMs about 'why can't I change my avatar?!'. So after a long while, Ptoing took it upon himself to buy new serverspace, move the db and fix the problems with the forum (Adam helped and is now eating cake). This streamlined the 'chain of command' greatly as now this forum is owned by the same people that run it. This was a good time for a moderator purge from people who were no longer active in those roles, so Pep, Goat and Dan have been demodded.
As to what Pep is up to I really don't know, If he's around he can post and fill you in himself.