Annual General Meeting December 15, 2017 Queen’s Pension Plan Annual General Meeting December 15, 2017

Agenda Members of Queen’s Pension Committee Summary of Pension Plan Membership True vs. Paid Pensions Financial Position of Queen’s Pension Plan – Going Concern Basis Financial Position of Queen’s Pension Plan – Wind-Up/ Solvency Basis Historical Employee and Employer Contributions Pension Plan Asset Reconciliation University Pension Project Update Summary of Plan Assets at October 31, 2017 Returns Compared to Benchmark and BNY Mellon’s Universe Returns Compared to Other Canadian University Pension Plans Manager Presentation: Sun Life Questions

Members of Queen’s Pension Committee Appointed by Members James MacKinnon Bill Cannon Peggy Hauschildt Alison Morgan Lewis Johnson Kelly Sedore Appointed by Board of Trustees David Grace Jim Keohane Todd Mattina Jana Steele Marcus Robertson Ex Officio Daniel Woolf Don Raymond Donna Janiec Dan Bradshaw Jim Leech

Summary of Pension Plan Membership Active Deferred Pensioners and Survivors Total At August 31, 2014 3,722 1,668 2,128 7,518 New entrants 1,096 Terminations   Transfers/lump sum (270) (250) (520) Deferred pensions (284) 284 -  Deaths (21) (2) (195) (218) Retirements (287)  (105) 392 New beneficiaries 8 76 84 Other (1) (22) At August 31, 2017 3,955 1,582 2,401 7,938

True vs. Paid Pensions (projecting at 6%) 5

True vs. Paid Pensions (projecting at 9%) 6

Financial Position of Queen’s Pension Plan: Going Concern Basis ($000’s) August 31, 2014 August 31, 2016* Assets Market value of assets $1,765,373 $1,892,488 Smoothing adjustment ($98,609) ($24,514) Net assets at market value $1,666,764 $1,867,974 Liabilities Market value of: -  DC accounts $778,794 $830,119 -  Past service accounts $25,874 $24,857 -  Voluntary accounts $41,532 $42,097 Present value of accrued benefits: -   Active members $66,263 $62,049 -   Pensioners/survivors $873,151 $925,863 -   Non-Reduction Reserve $56,755 $69,433 Total liabilities $1,842,369 $1,954,418 Surplus (deficit) ($175,605) ($86,444) *Using December 31, 2016 Assumptions

Financial Position of Queen’s Pension Plan: Hypothetical Wind-Up Basis ($000’s) August 31, 2014 August 31, 2016* Assets Market value of assets $1,765,373 $1,892,488 Termination expense ($2,000) Net assets at market value $1,763,373 $1,890,488 Liabilities Market value of: -       DC accounts $778,794 $830,119 -       Past service accounts $25,874 $24,857 -       Voluntary accounts $41,532 $42,097 Present value of accrued benefits: -      Active members $129,182 $176,163 -      Pensioners/survivors $1,073,366 $1,160,669 - Deferred Indexing Reserve $20,436 $18,296 Total liabilities $2,069,184 $2,252,201 Surplus (deficit) ($305,811) ($361,713) *Using December 31, 2016 Assumptions

Historical Employee and Employer Contributions

Pension Plan Asset Reconciliation ($000’s) September 1, 2016 $ 1,891,747 PLUS Members’ DC contributions 23,868 University’s DC & Minimum Guarantee contributions 25,763 University’s Past Service contributions 22,197 Voluntary contributions 1,263 Past Service contributions 4 Transfers from other plans 2,461 Investment return 154,326 LESS Pensions & Lump-sums paid (99,802) Administration fees (13,934) August 31, 2017 $ 2,007,893 Gross rate of return 7.96% Rate of return net of expenses 7.46%

University Pension Project 2014-2016 Government supports efforts for a multi-university Jointly Sponsored Pension Plan (JSPP) Sector-wide discussions, facilitated by OCUFA and COU, with significant financial support from the Ontario government Initially open to all Ontario universities with a Defined Benefit (DB) plan Six original participants (U of T, Queen’s, Guelph, Trent, King’s College, Wilfrid Laurier, with University of Victoria and McMaster observing) Unable to reach agreement

University Pension Project 2017 May – July 2017 Active discussions among U of T, Guelph and Queen’s – assisted by mediators August 2017 Tentative agreement between the three universities and their respective faculty associations, USW, and non-represented employee groups CUPE, OSSTF, UNIFOR, and OPSEU have withdrawn from the discussions at the present time After inception, the university-sector JSPP would be open to any Ontario university interested in joining the plan November 2017 Ontario government approached for additional funding to support communications, legal, and actuarial work necessary for creation of the university-sector JSPP (target date: July 2019)

University Pension Project Next Steps Communications to plan members and additional stakeholders   Plenary meeting January 2018

Percent of Total Assets Summary of Pension Plan Assets (‘000) at October 31, 2017 Canadian Equity Global Equity Fixed Income Real Estate Infra-structure Total Assets Percent of Total Assets Burgundy $184,422 8.9% Connor, Clark, & Lunn $93,039 4.5% Guardian $90,136 4.4% TD Asset Management $4,438 0.2% Letko, Brosseau $59,577 $94,244 $91,630 $245,451 11.9% Orbis $224,112 10.8% State Street $390,781 18.9% $143,280 6.6% Integrated Private Debt $65,270 3.2% PIMCO $160,287 7.8% Sun Life $117,439 5.7% $141,910 6.9% Real Estate – Oxford $110,219 5.3% Infrastructure - Borealis $99,148 4.8% Cash/FX Hedging $245 0.0% $431,612 $709,137 $719,816 $2,070,176 100.0% % of Total Assets 20.8% 34.3% 34.8%

QPP Returns Compared to Benchmark & BNY Mellon’s Universe of Canadian Pension Plans At September 30th, 2017 (Gross of Fees): 3 Months 1 Year 4 Years 10 Years Queen’s 1.8% 8.3% 9.1% 5.9% Benchmark 0.4% 5.4% 5.5% BNY 1st Quartile 1.0% 7.8% 10.1% 6.5% BNY Median 0.6% 6.1% 9.3% 6.2% BNY 3rd Quartile -0.2% 3.6% 8.6% 5.6%

QPP Returns Compared to Other Canadian University Pension Plans CAUBO survey results, as at December 31, 2016 (Gross of Fees): 1 Year 2 Years 4 Years 10 Years Queen’s 9.8% 7.5% 10.6% 5.8% All Plans In Survey 1st Quartile 9.4% 7.6% 10.7% 6.2% Median 7.7% 6.9% 9.9% 3rd Quartile 6.3% 9.3% 5.4% Plans Reporting N=49 N=47 N=45

Thank You