Annual General Meeting December 14, 2018 Queen’s Pension Plan Annual General Meeting December 14, 2018

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 Summary of Plan Assets at October 31, 2018 Returns Compared to Benchmark and BNY Mellon’s Universe Returns Compared to Other Canadian University Pension Plans Questions? University Pension Project (UPP) Presentation

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

Summary of Pension Plan Membership Active Deferred Pensioners and Survivors Total At August 31, 2014 3,715 1,675 2,128 7,518 New entrants 1,096 Terminations   Transfers/lump sum (270) (250) (520) Deferred pensions (277) 277 -  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%)

Financial Position of Queen’s Pension Plan: Going Concern Basis ($000’s) August 31, 2014 August 31, 2017 Assets Market value of assets $1,765,373 $2,007,893 Smoothing adjustment ($98,609) ($15,478) Net assets at market value $1,666,764 $1,992,415 Liabilities Market value of: -  DC accounts $778,794 $865,473 -  Past service accounts $25,874 $24,538 -  Voluntary accounts $41,532 $42,302 Present value of accrued benefits: -   Active members $66,263 $60,272 -   Pensioners/survivors $873,151 $959,454 -   Non-Reduction Reserve $56,755 $71,959 Total liabilities $1,842,369 $2,023,998 Surplus (deficit) ($175,605) ($31,583)

Financial Position of Queen’s Pension Plan: Hypothetical Wind-Up Basis ($000’s) August 31, 2014 August 31, 2017 Assets Market value of assets $1,765,373 $2,007,893 Termination expense ($2,000) Net assets at market value $1,763,373 $2,005,893 Liabilities Market value of: -       DC accounts $778,794 $865,473 -       Past service accounts $25,874 $24,538 -       Voluntary accounts $41,532 $42,302 Present value of accrued benefits: -      Active members $129,182 $163,072 -      Pensioners/survivors $1,073,366 $1,223,899 - Deferred Indexing Reserve $20,436 $3,708 Total liabilities $2,069,184 $2,322,992 Surplus (deficit) ($305,811) ($317,099)

Historical Employee and Employer Contributions

Pension Plan Asset Reconciliation ($000’s) September 1, 2017 $ 2,007,893 PLUS Members’ DC contributions 24,733 University’s DC & Minimum Guarantee contributions 26,757 University’s Past Service contributions 11,439 Voluntary contributions 1,258 Transfers from other plans 1,399 Investment return 173,892 LESS Pensions & Lump-sums paid (107,273) Administration fees (2,440) August 31, 2018 $ 2,137,658 Gross rate of return 9.06% Rate of return net of expenses 8.61%

Percent of Total Assets Summary of Pension Plan Assets (‘000) at October 31, 2018 Canadian Equity Global Equity Fixed Income Real Estate Infra-structure Total Assets Percent of Total Assets Burgundy $176,909 8.7% Connor, Clark, & Lunn $90,014 4.4% TDAM (Passive) $69,735 3.4% Letko, Brosseau $50,194 $88,555 $82,955 $221,705 10.9% Orbis $217,121 10.7% State Street (Passive) $398,773 19.6% $148,256 7.3% Integrated Private Debt $43,019 2.1% PIMCO $175,378 8.6% Sun Life $118,552 5.8% TD Asset Management $148,005 OMERS - Oxford $118,884 OMERS Infrastructure $102,664 5.0% Cash/FX Hedging $8,552 0.4% $386,852 $704,448 $716,165 $2,037,565 100.0% % of Total Assets 19.0% 34.6% 35.1%

QPP Returns Compared to Benchmark & BNY Mellon’s Universe of Canadian Pension Plans At September 30th, 2018 (Gross of Fees): 3 Months 1 Year 4 Years 10 Years Queen’s 1.2% 7.4% 7.5% 8.3% Benchmark 1.4% 7.2% BNY 1st Quartile 0.9% 8.5% 8.2% 8.6% BNY Median 0.4% BNY 3rd Quartile -0.2% 6.4% 6.6% 7.6%

QPP Returns Compared to Other Canadian University Pension Plans CAUBO survey results, as at December 31, 2017 (Gross of Fees): 1 Year 2 Years 4 Years 10 Years Queen’s 10.4% 10.1% 8.5% 6.4% All Plans In Survey 1st Quartile 10.6% 9.0% 9.2% 6.7% Median 9.9% 8.7% 6.6% 3rd Quartile 9.1% 8.3% 8.2% 6.5% Plans Reporting N=48 N=47 N=46 N=45

Thank You