1. York University Pension Plan Terisa Ducharme Associate Director, Pension & Benefits Annual Pension Meeting, April 16, 2010

2. 2 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Pension Costs and Contributions in 2010 The University and all Plan members contribute to the pension plan based on the Pension Plan text Plan members contribute 4.5% of earnings up to the YMPE (year’s maximum pensionable earnings) + 6% above YMPE – the YMPE for 2010 is $47,200 The University matches the Plan member's contribution with an additional 3% that goes towards the Non-Reduction Reserve (NRR)

3. 3 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Government legislation Federal and provincial governments dictate that an actuarial valuation must be completed at least every three years and filed with both governments. The actuarial valuation indicates the amount of pension benefit (liabilities) as determined by the Pension Plan text for each Plan member and the cost to fund/pay for that pension benefit. If the liabilities are greater than the pension plan assets (employee contributions, matching employer contributions along with accumulated rate of return) then the University must contribute additional monies to fund the difference. The actuarial valuation determines the going concern funded position as well as the solvency (aka wind up) position of the Pension Plan.

4. 4 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Historical Funded Position Actuarial ValuationFunded PositionRate of Return December 31, 1999$32.8 M surplus 7.6808% December 31, 2000$28.1 M surplus11.0043% December 31, 2001$14.9 M surplus 1.5096% December 31, 2002$25.1 M going concern deficit -4.6074% December 31, 2003$10.6 M going concern deficit14.6429% December 31, 2004$0.2 M going concern deficit 9.7468% December 31, 2005$23.6 M going concern deficit11.7060% December 31, 2006$18.5 M going concern deficit13.9244% December 31, 2007$44.1 M going concern deficit -0.5356% December 31, 2008 – not filed$265.6 M going concern deficit and $157.3 M solvency deficit -19.2428%

5. 5 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Funding the Pension Plan The Pension Plan is being funded based on the last filed actuarial valuation. In 2009 the following contributions were made: $17.9 million by employees $18.8 million by employer, PLUS $11.7 million to fund the cost of the minimum guaranteed pension, PLUS $ 4.8 million in additional special payments due to the going concern deficit $35.3 million in total by employer When a Pension Plan is in a going concern deficit the University has 15 years to pay off that deficit. When a Pension Plan is in a solvency deficit the University has 5 years to pay off that deficit.

6. 6 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Financial Position of the Pension Plan Investment losses cause value of Pension Fund to go down Declining interest rates cause value of liabilities to go up Had the December 31, 2008 actuarial valuation report been filed with the governments the University would have would have needed to make additional special payments of $63.3 M per year The government has introduced the potential to spread the solvency special payments over 10 years as opposed to 5 years as long as less than one-third of the Plan members do not disagree. This would change the additional special payments from $63.3 M per year to $35.4 M per year We are currently awaiting the results of the December 31, 2009 actuarial valuation however preliminary results appear to be that the going concern deficit will be approximately $245 M

7. 7 Go to 'header and footer' under the 'view' menu to add or remove text to in area. FSCO Update YUFA first raised the issue with the University in December 2001. YUFA filed a complaint in February 2003 with the Financial Services Commission of Ontario (FSCO). A number of meetings took place to try to resolve the dispute however no agreement was reached therefore both sides agreed to have FSCO rule on the matter. In December 2007 the Pension Officer at FSCO concluded “that the University’s interpretation is reasonable and within the scope of authority granted to the Plan administrator…” May 2008 FSCO responded again with the same conclusion. June 2008 YUFA requested the Superintendent issue an order requiring the University to administer the Plan in accordance with YUFA’s interpretation. September 2008 the Superintendent formally refused to issue such an order and cited the reasons. October 2008 YUFA elected to proceed to the Financial Services Tribunal (FST). February 2010 FST hearing took place and we are currently awaiting a decision If the Tribunal rules in YUFA’s favour the additional cost to the University is $80 - $90 M For more information regarding this you can access it on the Pension & Benefits website at: http://www.yorku.ca/hr/documents/FST%20Q&A's%20with%20GB%20adjustments.pdf

8. 8 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Provincial Pension Reform Recently announced 2010 Ontario Budget includes discussion of pension reform Temporary funding relief being considered for Public Sector Pension Plans, including universities - if conditions are met, such as – Joint sponsorship going forward – Plan sponsors and members to equitably share cost of providing benefits – Link future benefits (i.e. inflation protection) to plan performance – Increase cost certainty and affordability through benefit adjustments that make plans more sustainable – Explore measures to reduce administrative and investment expenses to enhance cost efficiency

9. 9 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Benefit Calculations The York University Retirement Planner (YURP) produces pension estimates for active and deferred Plan members based on the assumptions you input into the planner. The figures currently shown in YURP do not include the 2009 year end. Once the annual pension statements have been mailed out then YURP will be updated. The link to access the planner is: https://www.yorku-ret.ca/

10. 10 Go to 'header and footer' under the 'view' menu to add or remove text to in area. YURP Your User ID is your employee # which is the nine digit number beginning with 1.

11. 11 Go to 'header and footer' under the 'view' menu to add or remove text to in area. Contacting the Pension & Benefits Office Please contact your Pension & Benefits Counsellor at 416-736-2100 based on the first initial of your last name as follows: Last Name InitialCounsellorExtensionEmail Address A – EMargaret Crowe20377crowem@yorku.ca G – LAndreea Madaras20702amadaras@yorku.ca M – RYvonne Rego33912yrego@yorku.ca F, S – ZPeter Chakonza20617chakp@yorku.ca