Institutional Federal Compliance Report 2021

104 • Notes to Basic Financial Statements _________________________________________________________________________

The fiscal year 2014 Enacted Budget included an alternate contribution program (the Alternate Con- tribution Stabilization Program) that provided certain participating employers with a one-time election to amortize slightly more of their required contributions than would be available for amortization under the 2010 legislation. In addition, the maximum payment period was increased from ten years to twelve years. The election was available to counties, cities, towns, villages, BOCES, school districts and the four public health care centers operated in the counties of Nassau, Westchester and Erie. The State was not eligible to participate in the Alternate Contribution Stabilization Program. Further specific provisions include: The thresholds for the fiscal year ended 2014 were 12 percent of payroll for ERS and 20 percent for PFRS. The interest rate was 3.76 percent. The amortized amount receivable due to the System as of March 31, 2018 from par- ticipating employers is $171.7 million. The thresholds for the fiscal year ended 2015 were 12 percent of payroll for ERS and 20 percent for PFRS. The interest rate was 3.5 percent. The amortized amount receivable due to the System as of March 31, 2018 from par- ticipating employers is $154.5 million. The thresholds for the fiscal year ended 2016 were 12.5 percent of payroll for ERS and 20.5 percent for PFRS. The interest rate was 3.31 percent. The amortized amount receivable due to the System as of March 31, 2018 from par- ticipating employers is $115.2 million. The thresholds for the fiscal year ended 2017 were 13 percent of payroll for ERS and 21 percent for PFRS. The interest rate is 2.63 percent. The amortized amount receivable due to the System as of March 31, 2018 from par- ticipating employers is $86.2 million. The thresholds for the fiscal year ended 2018 were 13.5 percent of payroll for ERS and 21.5 percent for PFRS. The interest rate is 3.31 percent. The amortized amount receivable due to the System as of March 31, 2018 from par- ticipating employers is $74.9 million. Net Pension Liabilities and Other Pension-Related Amounts For purposes of determining net pension liability and other pension-related amounts, information about

the fiduciary net position of ERS and PFRS and addi- tions to and deductions from the fiduciary net position of ERS and PFRS have been determined on the same basis reported by the System. Benefits are recognized when due and payable. Investments are recorded at fair value as further described in Note 2. The State’s proportionate share of the collective net pension liability for ERS and PFRS reported at March 31, 2018, was measured as of March 31, 2017, and was determined using an actuarial valuation as of April 1, 2016, with update procedures used to roll forward the total pension liability to March 31, 2017. The State’s share of the ERS and PFRS net pension liabilities measured at March 31, 2017, were 43.2 percent for ERS and 21 percent for PFRS, as compared to 42.5 percent for ERS and 19.1 percent for PFRS at March 31, 2016. The State’s shares related to each plan were determined consistently with the manner in which contributions to the pension plan are deter- mined. The State’s total projected long-term contri- bution effort to ERS and PFRS was compared to the total projected long-term contribution effort from all employers to ERS and PFRS in order to determine the State’s proportionate share of the respective plan’s net pension liability. State employees engaged in governmental activi- ties, as well as those employed by the SUNY and Lottery enterprise funds, are generally members of ERS. The State proportion of the ERS collective net pension liability measured at March 31, 2017 of 43.2 percent was allocated 40.3 percent to governmental activities, 2.8 percent to the SUNY enterprise fund, and 0.05 percent to the Lottery enterprise fund, as compared to the March 31, 2016 proportion being allocated 39.6 percent to governmental activities, 2.8 percent to the SUNY enterprise fund, and 0.05 percent to the Lottery enterprise fund. In addition to its allo- cation of the State proportion, SUNY recognized a proportion of the ERS collective net pension liability of 2.6 percent associated with specific related entities excluded from the State proportion. The State pro- portion of the PFRS collective net pension liability measured at March 31, 2017 of 21 percent was allocated 20 percent to governmental activities and 1 percent to the SUNY enterprise fund, as compared to the March 31, 2016 proportion that was allocated entirely to governmental activities. The State recognized net pension liability of $3.8 billion and $415.2 million in governmental activ- ities for its respective proportionate shares of the ERS and PFRS collective net pension liabilities. Pension expense recognized by the State in governmental