york university pension fund leona fields manager, pension fund
DESCRIPTION
York University Pension Fund Leona Fields Manager, Pension Fund. Annual Pension Meeting April 24, 2009. Quick Facts. One pension plan for all York University faculty and staff Plan membership Active:4,330 Deferred:1,320 Retired: 1,700 In 2008 $ 52.8 M in contributions in - PowerPoint PPT PresentationTRANSCRIPT
York University Pension Fund
Leona FieldsManager, Pension Fund
Annual Pension MeetingApril 24, 2009
2
Quick Facts
• One pension plan for all York University faculty and staff
• Plan membership
– Active: 4,330
– Deferred: 1,320
– Retired: 1,700
• In 2008
– $ 52.8 M in contributions in
– $ 60.3 M in benefits paid out
– $ 8.6 M in expenses
• 2008 rate of return -19.2% net
• Current value of the Pension Fund is just over $1.0 Billion
3
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
4
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
5
Pension Fund Investment Overview
5
Asset Mix
Cdn Equity20%
Int'l Equity15%
Cdn Bonds
30%
U.S. Equity15%
Infrastructure10%
Global Equity10%
Manager Structure
Addenda10%
Foyston Gordon &
Payne7%
Alliance Bernstein
10%
WEDGE5% TD Bonds
25%
GIP2.5%
Macquarie2.5%
LSV10%
McLean Budden
7%
Sceptre6%
Gryphon5%
TD U.S. Equity10%
6
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
7
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
8
What Happened in 2008?
Fund Performance
-23.3%
-15.3%
-8.1%
3.3%
21.1%
0.7%
-15.7%
-33.4%-29.9%
-46.5%
-18.8%
2.4%
-1.8%
0.9%
-10.0%
-25.2%-24.3%
5.2% 3.3%
-5.4%
4.8% 3.6%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%C
anad
ian
Equ
ity
US
Equ
ity
Inte
rnat
iona
l Equ
ity
Glo
bal E
quity
Bon
ds
Infr
astr
uctu
re
Cas
h
Cur
renc
y H
edge
Tot
al F
und
Q408 2008 4 Years
9
What’s in store for 2009?
• Instability in the markets continues– Some positive signs but likely still a long way until we’re out of
the woods
• Key Initiatives for 2009 – Investment in Infrastructure funds and selection of additional
Infrastructure manager– Implementation of Active Currency Hedge– Risk Management / Asset Allocation Review Project
10
Contact Information
Leona Fields
Ext. 55122
http://www.yorku.ca/finance/divisions/pensioninvestments.htm