Institutional Federal Compliance Report 2021

108 • Notes to Basic Financial Statements _________________________________________________________________________

Other SUNY-related Pension Plans New York State Teachers’ Retirement System SUNY participates in the New York State Teachers’ Retirement System (TRS). TRS was created and exists pursuant to Article 11 of the New York State Educa- tion Law. TRS is a cost-sharing, multiple-employer, defined-benefit public plan separately adminis- tered by a ten-member board to provide pension and ancillary benefits to teachers employed by participat- ing employers in the State of New York, excluding New York City. The System issues a publicly available financial report that includes financial statements,

expanded disclosures, and required supplementary information for the System. The report may be obtained at www.nystrs.org/Library/Publications/Annual-Report . Plan Benefits Plan benefits for TRS are similar to those for ERS. Benefits vary based on the date of membership, years of credited service and final average salary, vesting of retirement benefits, death and disability benefits, and optional methods of benefit payments. The RSSL has established distinct classes of mem- bership. The System uses a Tier concept within TRS to distinguish these groups, as follows:

Tier 1 . . . . . . . . . . . Members who last joined prior to July 1, 1973 are covered by the provisions of Article 11 of the Education Law. Tier 2 . . . . . . . . . . . Members who last joined on or after July 1, 1973, and prior to July 27, 1976 are covered by the provisions of Article 11 of the Education Law and Article 11 of the RSSL. Tier 3 . . . . . . . . . . . Members who last joined on or after July 27, 1976 and prior to September 1, 1983 are covered by the provisions of Article 14 and Article 15 of the RSSL. Tier 4 . . . . . . . . . . . Members who last joined on or after September 1, 1983 and prior to January 1, 2010 are covered by the provisions of Article 15 of the RSSL. Tier 5 . . . . . . . . . . . Members who joined on or after January 1, 2010 and prior to April 1, 2012 are covered by the provisions of Article 15 of the RSSL. Tier 6 . . . . . . . . . . . Members who joined on or after April 1, 2012 are covered by the provisions of Article 15 of the RSSL.

Tier 1 members are eligible, beginning at age 55, for a service retirement allowance of approximately 2 percent of final average salary per year of credited service. Tiers 2 through 5 are eligible for the same benefit, but with the following limitations: (1) Tier 2 through 4 members receive an unreduced benefit for retirement at age 62 or retirement at ages 55 through 61 with 30 years of service, or a reduced benefit for retirement at ages 55 through 61 with less than 30 years of service; and (2) Tier 5 members receive an unreduced benefit for retirement at age 62 or retirement at ages 57 through 61 with 30 years of service, or a reduced benefit for retirement at ages 55 and 56 regardless of service credit, or ages 57 through 61 with less than 30 years of service. Tier 6 members are eligible for a service retirement allowance of 1.75 percent of final average salary per year of credited service for the first 20 years of service plus 2 percent of final average salary per year for years of service in excess of 20 years. Tier 6 members receive an unreduced benefit for retirement at age 63, and receive a reduced benefit at ages 55 through 62 regardless of service credit. Plan benefits vest after five years of credited service for members of Tiers 1 through 4 who joined prior to January 1, 2010. For members of Tiers 5 and 6, benefits generally vest after 10 years of service. Obligations of employers and employees to contribute, and related benefits, are governed by the RSSL and the Education Law and may only be amended by the Legislature with the Governor’s approval. Permanent cost-of-living adjustment (COLA) ben- efits for both current and future retired members are provided in Section 532-a of the Education Law. This benefit will be paid commencing September of each year to retired members who have attained age 62

and have been retired for five years or who have attained age 55 and have been retired for 10 years. Disability retirees must have been retired for five years, regardless of age, to be eligible. The annual COLA percentage is equal to 50 percent of the increase in the consumer price index, not to exceed 3 percent nor be lower than 1 percent. It is applied to the first $18,000 of the annual benefit. Contributions Tier 3 and Tier 4 members who have less than 10 years of service or membership are required by law to con- tribute 3 percent of salary to the System. Tier 5 mem- bers are required by law to contribute 3.5 percent of salary throughout their active membership. Tier 6 members are required by law to contribute between 3 percent and 6 percent of salary throughout their active membership, in accordance with a schedule based upon salary earned. Pursuant to Article 14 and Article 15 of the RSSL, those member contributions are used to help fund the benefits provided by the System. However, if a member dies or leaves covered employ- ment with less than 5 years of credited service for Tiers 3 and 4, or less than 10 years of credited service for Tiers 5 and 6, the member contributions with interest calculated at 5 percent per annum are refunded to the employee or designated beneficiary. Eligible Tier 1 and Tier 2 members may make member contributions under certain conditions pursuant to the provisions of Article 11 of the Education Law and Article 11 of the RSSL. Upon termination of membership, such accu- mulated member contributions are refunded. At retire- ment, such accumulated member contributions can be withdrawn or are paid as a life annuity.