The Queen's Journal, Volume 142, Issue 2

Page 1

The ArtSci Grades Report — page 8

Journal vs ... T U E S D AY , J U N E 2 4 , 2 0 1 4 — I S S U E 2

J THE OURNAL QUEEN’S UNIVERSITY — SINCE 1873

PHOTO BY ALEX PICKERING

Kingston Pride celebrated its 25th anniversary at City Park on June 15. See page 4 for full story.

FINANCES

Administration to pay back red pension funds Roughly half a billion in debt will be paid by 2029 B Y N ATASA B ANSAGI Assistant News Editor The University has agreed to repay $456 million in deficits accrued from operating the Queen’s Pension Plan (QPP) beginning in 2015 — but any effects the lost funds may have on students remain unknown. The QPP serves staff and faculty. Members contribute nine per cent of their annual base salary, up to the federal Year’s Maximum Pensionable Earnings (YMPE), as well as nine per cent of earnings over that maximum. The University contributes six per cent of earnings up to YMPE and 7.5 per cent over. The University has a 15-year repayment schedule for going concern deficits — estimated at $164 million — and 10 years, extended from five under temporary solvency relief measures, to repay the solvency deficits — estimated at $292 million. While the solvency deficit refers to a total amount owed to members should it stop operating entirely, the going concern deficit refers to total current and future contributions versus monies currently able to be paid out. The QPP first ran red in 2004, owing to increased lifespan of contributors and overall market volatility, and its deficits now total $456 million. Repayments will begin in 2015-16 as part of the University’s budget planning for the 2015-16 academic year. The first proposed repayment for Sept. 2015 will total $22 million, to be deducted from the University’s overall operating budget, which fluctuates around $475 million. The repayment is estimated to constitute 6.5 per cent of all paid

salaries at Queen’s. The $22 million repayment will be added to the $40 million paid out as part of pension plans for the year, bringing the total amount to $62 million spent on the QPP for the 2015-16 academic year. Planning for the 2015-16 University budget follows the Senate’s approval of the 2015-16 enrolment plan in April, which aims to increase full-time enrolment from 21,441 undergraduate and graduate students in fall 2014 to 22,199 in fall 2015. Shared services are currently working on their budget submissions, while Faculties and Schools are set to do so in the fall.

See Solvency on page 5

Inside this issue: News

Isabel Bader Centre poised to open doors in September

page 2

Arts

Local artist Martina Muck has work displayed at Modern Fuel Gallery

page 9

Sports

Athletes employ varied tactics to train for mental side of games

page 11

News

Kiwala wins page 5

Opinion

Students shafted page 7

PHOTO BY ALEX PICKERING

The cost of internships Unpaid page 3

Unconventional page 16

PHOTO BY ALEX PICKERING


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