Institutional Federal Compliance Report 2021

____________________________________________________________________________________________ STATE OF NEW YORK • 101

for sales year 2004 against New York and the other states that rejected the term sheet. On October 20, 2015, New York and the Participating Manufacturers announced a settlement of all outstanding disputes between them concerning non-participating manu- facturers’ adjustments and related disputed payment account deposits relating to all prior sales years under the Master Settlement Agreement (MSA). The settle- ment released to New York 90 percent of the funds currently held in the deposit payment account for past adjustment claims. Future MSA annual payments will be discounted based on a fixed amount per pack but modified based on overall volume. Beyond the Note 11 Litigation The State is a defendant in numerous legal proceedings pertaining to matters incidental to the performance of routine governmental operations. Such litigation includes, but is not limited to, claims asserted against the State arising from alleged torts, alleged breaches of contracts, condemnation proceedings, and other alleged violations of State and federal laws. Included in the State’s outstanding litigation are a number of cases challenging the legality or the ade- quacy of a variety of significant social welfare programs, primarily involving the State’s Medicaid and mental health programs. Adverse judgments in these matters generally could result in injunctive relief coupled with Note 12 Retirement Systems New York State and Local Retirement System The Office of the State Comptroller administers the following plans: the New York State and Local Employ- ees’ Retirement System (ERS) and the New York State and Local Police and Fire Retirement System (PFRS), which are collectively referred to as the New York State and Local Retirement System (the System). The net position of the System is held in the New York State Common Retirement Fund (the Fund), which was estab- lished to hold all assets and record changes in fiduciary net position allocated to the System. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head of the System.

stipulated discount, New York will not be at risk of losing any of its future annual payments as a result of extended arbitration proceedings. Under the settle- ment, there will be no future non-participating man- ufacturer adjustment arbitrations involving New York, and New York will no longer risk losing its entire annual MSA payment. Several unions have not reached labor settlement agreements with the State at this time. Settlements may result in added costs to the State. The Enacted Budget assumes spending related to these settlements, but the actual settlements could exceed the amounts in the budget. prospective changes in patient care that could require substantial increased financing of the litigated pro- grams in the future. With respect to pending and threatened litigation, the State has reported, in the governmental activities, liabilities of $781 million, of which $724 million per- tains to SUNY, for awarded claims, anticipated unfa- vorable judgments, and incurred but not reported loss estimates related to medical malpractice claims. In addition, the State is party to other claims and litiga- tion that its legal counsel has advised may result in possible adverse court decisions with estimated poten- tial losses of approximately $65 million. ERS and PFRS are cost-sharing, multiple-employer, defined benefit pension plans. The Public Employees’ Group Life Insurance Plan (GLIP) provides death ben- efits in the form of life insurance. For financial report- ing purposes, GLIP amounts are apportioned to and included as part of either ERS or PFRS. The System issues a publicly available Compre- hensive Annual Financial Report that includes financial statements, expanded disclosures, and required sup- plementary information for the System. The report may be obtained by writing to the New York State and Local Retirement System, Office of the State Comp- troller, 110 State Street, Albany, New York, 12244-0001 or at www.osc.state.ny.us/retire .