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

2. 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

3. 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

4. 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

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

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

7. 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

8. 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

9. Historical Employee and Employer
Contributions

10. Pension Plan Asset Reconciliation ($000’s)
September 1, 2016
$ ,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%

11. 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

12. 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)

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

14. 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%

15. 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%

16. 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

17. Thank You