Queen’s Pension Plan Aug 2014 evaluation filed May 2015 Going concern deficit $176 million Payments ~$21million per year starting Sept 2015 Solvency deficit $285 million payments to amortize it are necessary in 2018 ~$25 million per year set aside as contingency starting Sept 2015 Today: Going concern deficit lower, solvency higher

We have agreed to help make our plan sustainable. Explore starting a University Sector Jointly Sponsored Pension Plan (JSPP) Explore joining an existing JSPP Fix the existing plan Any such ‘fix’ will ultimately be bargained by the various unions.

Queen’s Pension Plan Hybrid with defined benefit floor and money purchase component Liability (risk) and governance are sole responsibility of the Sponsor – Queen’s Jointly sponsored plans Defined benefit Liability (risk) and governance are joint responsibility of Employees and Employer. By their nature, if correctly constructed, can avoid paying solvency deficits.

University Sector JSPP - Where do we stand Discussions have been ongoing for two years between a Labour Coalition (OCUFA coordinating) and COU About eight universities were participating with six showing substantial interest in joining Progress on hold since December 2016 The process has re-started with Toronto, Guelph and Queen’s taking the initiative to lead.

Where do we stand today? Many elements of a substantial high level design framework have been agreed Some important issues remain to be settled Such a plan would be 100% funded at inception, existing liabilities for past service are guaranteed and would reside with the three individual employers Retirees would receive two pension cheques: one from the old plan one from the new one going forward

Where to? Finish the Design phase by June 2017 The lead group of universities (Labour and Admin) must agree to then promote the detailed fleshing out of the plan – the Build phase Joining a final plan will be by local bargaining and by vote of the members of the plan New plan to start in early 2019

Key points, when we are successful Defined benefit plan with improved guaranteed percent accrual rates Cost sharing 50:50 Cost of new plan 20% of salary Value of benefits will be about 19.5% to leave a conservative cushion for early experience No solvency payments