1. 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

2. 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.

3. 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.

4. 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.

5. 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

6. 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

7. 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