Proposals for Amendments to the York University Pension Plan

1. Proposals for Amendments to the York University Pension Plan CUPE 1356 – CUPE 3903 – IUOE 772 – OHFA – YUFA – YUSA April 30, 2013 Proposed without prejudice pending review of the Ontario 2013 Budget and without prejudice to YUPG proposing additional, new and/or amended proposals in the course of these discussions.

2. York University All-Union Pension Group (YUPG) • Includes representatives of • Canadian Union of Public Employees, Local 1356 • Canadian Union of Public Employees, Local 3903 • International Union of Operating Engineers, Local 772 • Osgoode Hall Faculty Association • York University Faculty Association • York University Staff Association • Retains independent actuary (from Eckler) and legal advisor (from Sack Goldblatt Mitchell), with additional expert advice provided by CUPE - National

3. YUPG and All University Pension Committee (AUPC)

4. Proposed Protocol for Plan ChangesExcerpt: D. Brown/SGM for YUPG, Letter to G. Brewer 23April13 • All University proposals related to changes in Plan provisions and Plan actuarial and administration practices be disclosed to the AUPC prior to presentation to the Board of Governors together with supporting documentation that explains: • the rationale for the change, • the cost/benefit/administration implications, and • a blackline of the relevant YUPP provisions showing the current and proposed changes. • The other members of AUPC have a corresponding opportunity to present proposals to the University on the same basis as above. • That sufficient time is allocated to the AUPC/University as applicable prior to the proposed implementation date of a Plan amendment to allow for analysis, discussion and the presentation of alternative proposals, if any.

6. YUPG Mandate to discuss Plan amendments for Stage II Solvency Relief(Excerpt from YUPG Protocol approved by YUPG Union Executives) • In the interest of promoting an open, transparent and consultative process, the Unions participating in the YUPG agree that the YUPG shall be delegated with authority to approve Stage II Solvency Relief Plan Amendment proposals on behalf of all participating unions. • The Unions shall submit the proposal agreed upon by consensus within the YUPG to their respective memberships for approval.

7. YUPG and University Guiding Principles Agreement - Similarities - Differences YUPG University Application for Solvency Relief March 22, 2011 Open, transparent, consultative process No changes for existing pensioners Protection of accrued benefits (per pension law) Maintain hybrid nature of plan • Open, transparent, consultative process • No changes for existing pensioners • Protection of accrued benefits (per pension law) • Maintain hybrid nature of plan conditional on limiting University’s downside risk

8. YUPG and University Guiding Principles (cont’d) Agreement - Similarities - Differences University Application for Solvency Relief March 22, 2011 YUPG Ensure plan affordability Meet savings target for solvency funding relief Protect initial pension as at date of retirement Provide demographic equity Maintain the current benefit structure even if increases in the level of member contributions are required Include a mandatory Plan amendment review clause triggered upon the Plan’s attainment of full funding on a going concern and solvency funding basis. • Ensure plan sustainability • Meet metrics for solvency funding relief (savings target, reduce plan’s risk) • Protect initial pension as at date of retirement • Provide demographic equity • Change plan governance to reflect risk sharing structure

9. Possible Changes to the Plan Agreement - Similarities - Differences YUPG Proposals University Proposals Increase employee and University contributions to Money Purchase Eliminate University contribution to non-reduction guarantee (=3% member contributions) Conversion of MP balance to pension: ensure reasonable mortality assumptions No change in non-reduction guarantee Lengthen indexation averaging period – only if additional savings required to meet Savings Target Normal Form: no changes • Increase employee and University contributions to Money Purchase • Retain University contribution to non-reduction guarantee (= 3% member contributions) • Conversion of MP balance to pension: elements identified but not costed (Interest rate, mortality rates) • Remove non-reduction guarantee post retirement only (initial pension guaranteed) • Lengthen indexation averaging period • Normal Form: change 50% joint-and-survivor pension to life only or life guaranteed 10 years

10. YUPG MandateApproved by Executives of : CUPE 1356, CUPE 3903, OHFA, YUFA, YUSA, IUOE Local 772 PROPOSAL FOR PLAN AMENDMENTS: On a 50/50 sharing basis as is necessary to meet the savings targets for Stage 2 Solvency Relief, increase both Member and Employer Money Purchase Contribution Rates to a maximum of 6.75% up to the Year's Maximum Pensionable Earnings (YMPE) and a maximum of 9.15% above the YMPE.

12. YUPG Representatives CUPE 1356: Walter Silva CUPE 3903: William Gleberzon, Mohan Mishra, IouldouzRaguimov, Raj Virk IOUE 772: Andrew Johnston OHFA: Jinyan Li, Eric Tucker YUSA: Joanie Cameron Pritchett, GiulioMalfatti YUFA: Brenda Hart, Arthur Hilliker, Sue Levesque, Brenda Spotton Visano, Al Stauffer, Walter Whiteley With advice and assistance from Anthony Benjamin, Domenic Barbiero (Eckler Ltd) Darrell Brown (Sack Goldblatt Mitchell LLP) Russ Armstrong (CUPE – Regional) Kevin Skerrett (CUPE - National)