1. Academic & Administrative Pension and Benefit Plans Realize. It starts with you. Annual General Meeting for Members of the Academic and Administrative Pension and Benefit Plans (For Defined Benefit Plan Members) May 13, 2015

2. Academic and Administrative Pension and Benefit Plans Program Welcome and Introductions: Darlene Marchuk, Director, Pension & Benefits (Human Resources) Pension Plan Overview and Annual Update: Larry Miller, Chair, Academic and Administrative Benefits Committee (AABC) and Co-Chair, Joint Pension Investment Committee (JPIC) Faculty of Science (Mathematics and Statistics) Feature Presentation: Where There’s a Will … There’s a Way Jennie Aldworth, Sun Life Workplace Solutions (Blue Whale Financial Solutions)

3. Academic and Administrative Pension and Benefit Plans Outline AABC Committee Update AABC & JPIC Committee Work Master Trust 2014 Market Overview Academic & Administrative DB Plan Highlights Pension Plan Provisions Options at Retirement Working Beyond Age 65 Benefits Resources

4. Academic and Administrative Pension and Benefit Plans AABC Committee Work in 2014 approved the 2014 pension plan budget for each component of the plan; reviewed the funding valuation extrapolation for the DB Component and assessed the valuation assumptions used in the valuation reporting (ie mortality tables, discount rate, etc.)

5. Academic and Administrative Pension and Benefit Plans AABC Committee Work in 2014 (cont’d) recommended the Board of Governors approve a plan amendment allowing members of the administrative, professional and technical (APT) employees’ bargaining unit with a probationary or term appointment of six months (reduced from eight months) be required to join the plan. reviewed the semi-annual reports (from Aon Hewitt and Sun Life Financial) for the DC Component of the Plan

6. Academic and Administrative Pension and Benefit Plans AABC Committee Work in 2014 (cont’d) met with Sun Life Financial (Group Benefits), to assess benefit plan costs, review member utilization and obtain information on benefit trends assessed the current platform of investment options for the DC Component of the Plan reviewed “Designed for Savings 2014”, the Sun Life benchmark report on Capital accumulations Plans (CAPs) in Canada

7. Academic and Administrative Pension and Benefit Plans JPIC Committee Work in 2014 met with the Master Trust Investment managers to review their investment performance; had various portfolio managers provide observations and updates in the investment landscape; recommended the Board of Governors approve the 2014 Statement of Investment Policies and Goals; following approval of the Master Trust Asset Mix Benchmarks, recommended rebalancing of investment portfolios (including adding emerging market asset class)

8. Academic and Administrative Pension and Benefit Plans Master Trust: 2014 Market Overview Established in November 1995 Assets of the University’s Pension Plans Academic & Administrative Pension Plan (Defined Benefit Component) and Non-Ac pension Plan combined into a single fund called the “Master Trust” Each Component of the Plan has its own Statement of Investment Policies and Goals (SIP&Gs) Separate accounting for each Market value at December 2014: $344.7 million

9. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d) Upside Reduces expense fees (2014 expenses.45% of assets) Investment manager diversification Downside Challenge of “one size fits all” approach Non-Academic Plan – DB Plan open to new members, while Ac & Admin DB Component (closed)

10. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d) Distribution of Assets at December 31, 2014 Equities Canadian Equities18.8% U.S. Equities (50% Hedged to C$)17.4% Non-North American Equities15.1% Global Equities 8.0% Emerging Markets 4.0% Bonds23.0% Real Estate 8.1% Cash & Cash Equivalents 1.9% Mortgages 4.0% *TOTAL 100.0% * exceeds 100% due to rounding

11. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d) Investment Managers / Mandates Phillips, Hager & North (PH&N ) – Balanced Fund35.8% (Cdn Equities/Bonds/Mortgages) Mawer Investment Management Ltd.11.7% (Cdn Equities) Templeton15.1% (Non-North American Equities) Grantham, Mayo, Van Otterloo & Co. (GMO)11.9% (Global & Emerging Market Equities) BlackRock (US Equities)17.4% Bentall Kennedy (Real Estate) 8.1% TOTAL 100.0%

12. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d) 2014 Annual Return of 10.0% before expenses Exceeded the Benchmark by 0.5% Particularly strong relative performance in Canadian equities (Mawer’s 17.3% return was 6.7% above the S&P/TSX Index) Mortgages were strong in the year, returning 6.4% versus 3.1% benchmark Longer Term Performance Four years: value added of 1.4% (total fund: 10.2% vs Benchmark of 8.8%) Ten years: value added of 0.7% (total fund: 7.1% vs Benchmark of 6.4%)

13. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d)

14. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d)

15. Academic and Administrative Pension and Benefit Plans Master Trust (cont’d) Year to date performance to March 31, 2015 is estimated at 6.7% (before expenses) 0.7% above the 6.0% benchmark

16. Academic and Administrative Pension and Benefit Plans Academic & Admin Pension Plan Highlights Membership in the DB Component at December 2014 Active Defined Benefit Members145 Current Defined Contribution Members 9 (with DB benefit for pre-2000 service) Pensioners & Beneficiaries 296 Total 450

17. Academic and Administrative Pension and Benefit Plans DB Plan Highlights (cont’d) Market value of the Pension Plan Assets in the DB Component of the Plan at December 31, 2014: $257.0 million Increase of $13.9 million from December 31, 2013 balance

18. Academic and Administrative Pension and Benefit Plans DB Plan Highlights (cont’d) Financial Situation of the Plan (Next funding valuation required by no later than for the plan year ending December 31, 2015) In late May, AABC scheduled to review actuarial report on the financial position of the plan at December 31, 2014 Based on reporting, the AABC may recommend a valuation report be filed (Currently a holdback of 11% on transfers – not pensions – to reflect solvency deficiency – based on plan having been wound up December 31, 2012; the date of the last funding valuation)

19. Academic and Administrative Pension and Benefit Plans DB Plan Highlights (cont’d) Financial Situation of the Plan For the next funding valuation requirement to strengthen mortality tables to reflect we are living longer; PLUS Superintendent of Pensions reviewing level of margins required by pension plans – the last valuation used a 10% margin (margin is an explicit provision for adverse deviations or outcomes differing from assumptions used for mortality, inflation, discount rate, etc.)

20. Academic and Administrative Pension and Benefit Plans Options on Retirement Your DB Pension Benefit (paid monthly) Normal form of annual pension based on a formula: 2% of your best consecutive three year average earnings* x your years of pensionable service 2015 Canada Revenue Agency limits: Maximum Pension: $2,818.89 per year of service Maximum Pensionable Earnings = $140,944.50 Normal form of pension: Life only, Guaranteed 10 years Other options: Integrated Pension Joint & Survivor Benefits (if you have a spouse)

21. Academic and Administrative Pension and Benefit Plans Options on Retirement (cont’d) Your DB Transfer Option Paid the greatest of the three: Prescribed Account Balance (5 year bank rate) Fund Account Balance (4 year rolling average of fund performance less.5%) or Commuted value (lump sum present value of your pension)

22. Academic and Administrative Pension and Benefit Plans Options on Retirement (cont’d) Interest on your DB Balance 2014 Prescribed Rate: 1.4% 2014 Fund Rate: 8.81% 2015 Fund Rate: 9.27%

23. Academic and Administrative Pension and Benefit Plans Options on Retirement (cont’d) Your DB Transfer Option Retirement vehicles available: Locked-In Retirement Account (LIRA) a “parking space” for retirement savings for those who do not yet require retirement income Prescribed Registered Retirement Income Fund (PRIF) a “do-it-yourself” flexible annuity CRA requires a minimum withdrawal = 1/(90-age) to max of 20% Annuity: purchased from insurance company

24. Academic and Administrative Pension and Benefit Plans Options on Retirement (cont’d) Your DB Transfer Option with Sun Life Financial Group Retirement Income Plan (if age 55 and over) Annuity

25. Academic and Administrative Pension and Benefit Plans Plan Provisions Pension Indexing Commences June 30 th following age 66 or one year after retirement, if later; However, in years that the Actuary is of the opinion that the full increase would impair the pension plan’s financial integrity, indexing may be withheld; Indexing provided in 2014: 0.94% for members eligible for a COLA increase on July 1, 2014

26. Academic and Administrative Pension and Benefit Plans Other Retirement Information Age limit for maturing registered pension plans and Registered Retirement Savings Plans (RRSPs): You must begin making withdrawals by the end of the year you turn 71 (ie transfer funds to a RIF, PRIF, annuity, etc.) Assess your tax position – (ie income splitting between spouses) Government Programs Canada Pension Plan Old Age Security http://www.servicecanada.gc.ca/eng/home.shtml

27. Academic and Administrative Pension and Benefit Plans Working Beyond 65 Pension plan contributions and benefits accruals: in accordance with the Income Tax Act permitted until the end of the year the member turns 71 Benefits continuing beyond Normal Retirement Date include: Life insurance Dental Extended Health and Health Spending Account Enhanced sick leave (additional 90 days for a total of 180 days) Long Term Disability ceases on Normal Retirement Date

28. Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance Benefit Costs (2014) Dental: approx $900 per member (relatively unchanged from last year) Extended Health Care: (excluding Health Spending Account): approx $1,324 per member Salary Continuance (Long Term Disability) Increased to 1.47% of payroll (32% increase from previous rate of 1.112%)

29. Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance All benefits cease on date of retirement Sun Life “My Choices” Life Insurance must be under age 65 and make application to convert within 31 days of retirement / termination from the plan Dental and Extended Health Care Benefits must be under age 74 and make application to convert within 60 days of retirement / termination from the plan converted to an individual Sun Life Plan (Option: Standard or Enhanced)

30. Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance (cont’d) Other Options (generally require medical evidence) Through a professional association Canadian Association of University Teachers (CAUT) Other service providers: SK Blue Cross, Group Medical, etc.

31. Academic and Administrative Pension and Benefit Plans Resources Human Resources Website: benefits and pension information is available at: http://www.uregina.ca/hr/faculty-staff/index.html (select employee group and either benefits or pension) contacting HR: Pension & Benefits 306.585.4808 Consult a Financial Advisor Certified Financial Planners website www.fpsc.ca/www.fpsc.ca/ (provides CFA list of members in good standing) Sun Life Financial: www.mysunlife.ca/ From the drop-down menu select My Financial Plan Tools and calculators

32. Academic and Administrative Pension and Benefit Plans Questions ???????