Annual General Meeting Presentation December 2014

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Queen’s Pension Plan
Annual General Meeting
December 5, 2014
Agenda
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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
Pension Plan Asset Reconciliation
Summary of Plan Assets at August 31, 2014
Returns Compared to Benchmark and BNY Mellon’s Universe
Returns Compared to Other Canadian University Pension Plans
Manager Presentation: Orbis Investment Advisory (Canada)
Questions
2
Members of Queen’s Pension Committee
• Appointed by Members
o James MacKinnon
o Bill Cannon
o Peggy Hauschildt
o Alison Morgan
o John Gordon
o Kelly Sedore
• Ex Officio
o Daniel Woolf
o Barbara Palk
o Caroline Davis
o Al Orth
o Jim Leech
• Appointed by Board of Trustees
o David Grace
o Don Raymond
o Peter Copestake
o Kathryn Bush
o Jill Wagman
3
Summary of Pension Plan Membership
At August 31, 2013
Active
Deferred
3,644
1,638
Pensioners
and Survivors
2,049
New entrants
Return to active status
Marriage breakdowns
Terminations
354
8
o
Transfers/lump sum
(44)
(48)
o
Deferred pensions
(134)
134
(5)
(3)
(64)
(98)
(29)
127
(3)
(13)
Deaths
(3)
1
Total
7,331
354
5
1
(92)
(72)
Retirements
o
Pension option
o
Lump sum
New beneficiaries
Other
At August 31, 2014
3,722
(16)
2
19
21
(10)
(4)
(14)
1,668
2,128
7,518
4
True vs. Paid Pensions
Base monthly pension through Aug31/07:
$2,934.66
Current year return (as at August 31, 2014):
17.7093%
Plan Year
Fund return
Excess interest (EI)
2007-08
-4.3700%
2.2266%
2008-09
-7.8877%
-4.2469%
2009-10
6.8470%
-4.7409%
2010-11
6.3370%
-5.9794%
2011-12
5.5286%
-3.4859%
2012-13
14.5535%
2.2571%
2013-14
17.7093%
4.9094%
2014-15
6.0000%
4.8214%
2015-16
6.0000%
4.9450%
2016-17
6.0000%
2.8133%
Going forward:
6%
True pension + EI
$3,000.00
$2,872.60
95.8% of $3,000 (paid) pension
$2,736.41
91.2% of $3,000 (paid) pension
$2,572.79
85.8% of $3,000 (paid) pension
$2,483.10
82.8% of $3,000 (paid) pension
$2,539.15
84.6% of $3,000 (paid) pension
$2,663.81
88.8% of $3,000 (paid) pension
$2,792.24
93.1% of $3,000 (paid) pension
$2,930.32
97.7% of $3,000 (paid) pension
$3,012.76
100.4% of $3,000 (paid) pension
True pension
Paid pension
5
Financial Position of Queen’s Pension Plan:
Going Concern Basis ($000’s)
Assets
Market value of assets
Smoothing adjustment
Net assets at market value
August 31, 2011
August 31, 2013 (est.)
$1,315,319
$19,686
$1,335,005
$1,527,573
($43,815)
$1,483,758
Liabilities
Market value of:
- DC accounts
- Past service accounts
- Voluntary accounts
Present value of accrued benefits:
- Active members
- Pensioners/survivors
Total liabilities
$593,045
$24,908
$37,047
$676,481
$24,879
$38,940
$55,646
$750,770
$1,461,416
$70,901
$817,169
$1,628,370
Surplus (deficit)
($126,411)
($144,612)
6
Financial Position of Queen’s Pension Plan:
Solvency Basis ($000’s)
Assets
Market value of assets
Termination expense
Net assets at market value
August 31, 2011
August 31, 2013 (est.)
$1,315,319
($2,000)
$1,313,319
$1,527,573
($2,000)
$1,525,573
Liabilities
Market value of:
- DC accounts
- Past service accounts
- Voluntary accounts
Present value of accrued benefits:
- Active members
- Pensioners/survivors
Total liabilities
$593,045
$24,908
$37,047
$676,481
$24,879
$38,940
$112,509
$878,079
$1,645,588
$123,042
$954,017
$1,817,359
Surplus (deficit)
($332,269)
($291,786)
7
Pension Plan Asset Reconciliation ($000’s)
September 1, 2013
$
1,527,573
PLUS
Members’ DC contributions
University’s DC contributions
University’s Minimum Guarantee contributions
University’s Past Service contributions
Voluntary contributions
Past Service contributions
Transfers from other plans
Investment return
21,754
18,599
4,930
15,122
1,309
82
1,262
277,106
LESS
Pensions paid
Lump-sums paid
Administration fees
(80,297)
(12,690)
(8,627)
August 31, 2014
Gross rate of return
Rate of return net of expenses
$ 1,766,123
18.33%
17.71%
8
Summary of Pension Plan Assets at October 31, 2014
Canadian
Equity
Global
Equity
Fixed
Income
Real
Estate
Infrastructure
Total
Assets
Percent of
Total
Assets
Burgundy
$166,754
$166,754
9.4%
Guardian
$82,347
$82,347
4.8%
Connor, Clark, & Lunn
$84,841
$84,841
4.9%
TD Asset Management
$3,704
$3,704
0.2%
Letko, Brosseau
$56,414
$213,592
12.4%
$83,692
$73,486
Manning & Napier
$166,106
$166,106
9.6%
Orbis
State Street Global
Advisors
$183,758
$183,758
10.6%
$175,039
$175,039
10.1%
Beutel Goodman
$176,364
$176,364
10.2%
PIMCO
$208,480
$208,480
12.1%
Integrated Private Debt
$101,114
$101,114
5.9%
$82,162
4.8%
$84,490
$84,490
4.9%
Real Estate – Oxford
$82,162
Infrastructure - Borealis
Total Assets
% of Total Assets
$394,060
$608,595
$559,444
$82,162
$84,490
$1,728,751
100.0%
22.6%
35.2%
32.5%
4.8%
4.9%
100%
100.0%
9
QPP Returns Compared to Benchmark &
BNY Mellon’s Universe of Canadian Pension Plans
• At September 30th, 2014:
3 Months
1 Year
4 Years
10 Years
Queen’s
0.3%
14.3%
10.1%
7.6%
Benchmark
1.7%
15.4%
8.6%
6.8%
BNY 1st quartile
1.7%
16.2%
10.5%
7.7%
BNY Median
1.3%
15.0%
9.6%
7.2%
BNY 3rd quartile
0.8%
13.6%
8.8%
6.9%
10
QPP Returns Compared to
Other Canadian University Pension Plans
• CAUBO survey results, as at December 31, 2013:
1 year 2 years 4 years 10 years
Queen’s
19.4%
14.9%
9.6%
7.3%
Assets > $500M
15.2%
12.6%
9.2%
7.0%
Assets $150M-$500M
15.1%
12.3%
8.6%
6.9%
Assets $30M-$150M
16.0%
12.3%
8.4%
6.6%
All Equally Weighted
15.1%
12.2%
8.8%
6.9%
All Dollar Weighted
15.1%
12.4%
8.8%
6.3%
11
Thank You
Questions?
12
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