2016_SUNY_Optometry_PRR

T H E S T A T E U N I V E R S I T Y O F N E W Y O R K

Notes to Financial Statements June 30, 2015 and 2014

8. Retirement Plans (continued)

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (in thousands): Year Ended June 30:

The ERS plan allows participating employers to amortize a portion of their annual pension costs. The amounts amortized will be paid back with interest over 10 years. The State University participates in this program and the total pension payable included in long-term liabilities at June 30, 2015 is $236.3 million. TRS – At June 30, 2015, the State University recognized a net pension asset of $79.6 million for its proportionate share of the TRS net pension asset. The State University’s proportionate share of the net pension asset was based on the ratio of the State University’s actuarially determined employer contribution to the total TRS actuarially determined employer contribution. The net pension asset was measured as of June 30, 2014, and was determined by an actuarial valuation as of June 30, 2013, with update procedures used to roll forward the total pension liability to June 30, 2014. The proportionate share of the net pension asset was 0.714% measured at June 30, 2014 compared to 0.688% at June 30, 2013. During the measurement period beginning July 1, 2013, there were no changes in assumptions or benefit terms. The actuarial assumptions used in the June 30, 2013 valuation were based on the actuarial experience study for the period July 1, 2005 to June 30, 2010. For the year ended June 30, 2015, the State University recognized pension expense of $(3.1) million related to TRS. At June 30, 2015, the State University reported deferred inflows of resources related to TRS from the following sources (in thousands):

2016 $ (13,517) 2017 (13,517) 2018 (13,517) 2019 (13,517) 2020 (153) Thereafter $ (552)

Actuarial assumptions – The actuarial valuation used the following actuarial assumptions: Inflation – 3% Projected salary increases – Rates of increase differ based on age and gender. They have been calculated based on recent TRS member experience. Age Female Male 25 10.35% 10.91% 35 6.26 6.27 45 5.39 5.04 55 4.42 4.01 Projected COLAS – 1.625% compounded annually Investment rate of return – 8% compounded annually, net of pension plan investment expense, including inflation Annuitant mortality rates are based on plan member experience, with adjustments for mortality improvements based on Society of Actuaries Scale AA. Best estimates of arithmetic real rates of return for each major asset class included in TRS target asset allocation as of the valuation date of June 30, 2013 is as follows: Target Expected Real Asset Class Allocation Rate of Return* Domestic equities 37% 7.3% International equities 18% 8.5% Real estate 10% 5.0% Alternative investments 7% 11.0% Total equities 72% Long-Term

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Deferred Inflows of Resources:

Differences between expected and actual experience

$ 1,164

Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between employer contributions and proportionate share of contributions

53,453

156

Total

$ 54,773