York University Pension Fund

Leona FieldsManager, Pension Fund

Annual Pension Meeting

April 2010

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Quick Facts

• One pension plan for all York University faculty and staff

• Plan membership– Active: 4,400

– Deferred: 1,340

– Retired: 1,740

• In 2009– $ 54.7 M in contributions in

– $ 62.0 M in benefits paid out

– $ 6.9 M in expenses

• 2009 rate of return 16.0% (net)

• Current value of the Pension Fund is $1.25 Billion

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York’s Pension Governance - Internal

• Plan/Benefits side– Board of Governors

– Vice President, Finance & Administration

– Pension & Benefits Office

– All University Committee on Pensions

• Fund/Investments side– Pension Fund Board of Trustees

– Sub-Committee on Investment Performance

– Pension Investment Staff

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York’s Pension Governance - External

• Investment Managers

• Custodian - CIBC Mellon

• Auditor - Ernst & Young

• Investment Consultant - Towers Perrin

• Actuary - William M. Mercer

• Pension Administration System – Seclon Logic

• Lawyer – McCarthy Tétreault

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Pension Plan Overview

• Hybrid Pension Plan: DC and DB combined

• Members and University make contributions (DC part)

• All contributions are invested in the Fund and earn the Fund

rate of return

• At retirement, the pension amount is calculated from the

accumulated value of the the member’s Money Purchase

account– The minimum pension amount is calculated from a formula

based on member’s salary and years of service (DB part)

• Throughout retirement, pensions are adjusted annually by the

excess of the 4-year Fund return over 6% – Pensions paid will NEVER be reduced

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Key Differentiating Factors for York Pension Fund

• Primarily a Defined Contribution Plan – But members do NOT have investment options

• Benefits depend on investment returns– Adjustments after retirement continue to depend on investment

returns – not inflation

• Investment policy decisions must consider multiple risk profiles– Plan Sponsor

– New plan members

– Members close to retirement

– Retirees

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Pension Fund Investment Overview

Asset Mix

Cdn Equity20%

Int'l Equity15%

Cdn Bonds

30%

U.S. Equity15%

Infrastructure10%

Global Equity10%

Manager Structure

Addenda10%

Foyston Gordon & Payne

7%

Alliance Bernstein

10%

WEDGE5%

TD U.S. Equity10%

Gryphon5% Sceptre

6%McLean Budden

7%

LSV10%

Macquarie2.5% GIP

2.5%

TD Bonds25%

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Investment Performance in 2009

Pension Fund Performance

3.6% 4.0%

-1.5% -2.5%

1.1%

19.2% 18.2%

-12.2%

10.5%

16.6% 16.9%

-0.1%

0.1%1.4% 1.4%

2.1%

36.9%

0.6%

6.4%

14.7%

2.0%

-0.1%

4.5%3.1%4.8%

2.0%

-2.9%

-20%

-10%

0%

10%

20%

30%

40%

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Q409 2009 4 Years

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What’s in store for 2010?

• Year to date 2% return

• Economic outlook is positive – but many uncertainties remain

• Key Initiatives for 2010 – Longer term bonds

– New Global equity manager

– Continued investment in infrastructure

– Continuation of Risk Management / Asset Allocation Review

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