2016_SUNY_Optometry_PRR

2 0 1 5 A N N U A L F I N A N C I A L R E P O R T

Notes to Financial Statements June 30, 2015 and 2014

8. Retirement Plans (continued)

The total pension liability at December 31, 2014, was determined by using an actuarial valuation as of January 1, 2014 with update procedures used to roll forward to the total pension liability at December 31, 2014. Membership of the Upstate Plan totaled 1,816 members, comprised of 569 active members, 599 inactive vested members, and 648 retirees and beneficiaries currently receiving benefits. The actuarial assumptions included in the actuarial valuation included an inflation factor of 3.0 percent, projected salary increases of 3.5 percent and investment rate of return of 6.5 percent. Mortality rates were based on the RP-2014 Mortality Tables with full generational projections using Scale MP-2014. At June 30, 2015, $1.5 million was reported as deferred outflows of resources related to pensions resulting from the State University contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. There were no material deferred inflows or deferred outflows of resources associated with the Upstate Plan and pension expense for the year was ($.1) million. The actuarial accrued liability at December 31, 2013 was $87.9 million and plan assets were $77.0 million. At June 30, 2014, the State University had a net pension obligation for the plan of $10.0 million. Best estimates of arithmetic real rates of return for each major asset class included in the Upstate Plan’s target asset allocation as of December 31, 2014 is as follows: Target Expected Real Asset Class Allocation Rate of Return U.S. Equities 50% 5.35% Non-U.S. Equities 15 5.25 Fixed Income 30 .75 Alternatives (Real Estate) 5 3.90 100% Long-Term

Sensitivity of the net pension asset to changes in the discount rate. The following presents the net pension asset of the State University, calculated using the discount rate of 8.0% as well as what the State University’s net pension asset would be if it were calculated using a discount rate that is 1-percentage point lower (7.0%) and 1-percentage point higher (9.0%) than the current year rate (in thousands): *Real rates of return are net of the long-term inflation assumption of 2.3% for 2013. Discount Rate – The discount rate used to measure the total pension liability was 8%. Long-Term Target Expected Real Asset Class Allocation Rate of Return* Domestic fixed income securities 18% 1.5% Global fixed income securities 2 1.4 Mortgages 8 3.4 Short-term - 0.8 Total fixed income 28 Total 100%

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1% Current Decrease Discount

1%

Increase (9.0%)

(7.0%)

(8.0%)

Net Pension Asset

$1,717 $79,589 $145,947

TRS report may be obtained at: https://www. nystrs.org/Library/Publications/Annual-Report. Upstate Plan – At June 30, 2015, the State University recognized a net pension liability of $8.6 million based on the net pension liability as reported by the plan as of December 31, 2014 as follows (in thousands): Total pension liability $ 104,665 Plan fiduciary net position 96,114 Net pension liability $ (8,551)

Ratio of plan fiduciary net position to total pension liability

91.8%

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