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

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
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

3. 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

4. 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

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

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)

7. 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)

8. Historical Employee and Employer
Contributions

9. 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%

10. 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%

11. 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%

12. 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

13. Thank You