Institutional Federal Compliance Report 2021

____________________________________________________________________________________________ STATE OF NEW YORK • 109

Employers are required to contribute at an actu- arially determined rate adopted annually by the Retire- ment Board, pursuant to Article 11 of the New York State Education Law. The actuarially determined con- tribution rate applicable to 2016-17 salaries was 11.72 percent. For the fiscal year ended June 30, 2017, SUNY employer contributions were $16.7 million. SUNY’s proportionate share of the collective TRS net pension liability reported at June 30, 2017 of $8.7 million was measured at June 30, 2016. SUNY’s pro- portion of the collective TRS net pension liability was based on the ratio of the SUNY employer contribution to the total TRS contractually required employer con- tributions for the year ended June 30, 2016. SUNY’s Net Pension Liability and Asset and Pension-Related Amounts

proportion of the collective TRS net pension liability measured at June 30, 2016 was 0.82 percent, compared to SUNY’s proportion of the collective TRS net pension asset of 0.74 percent measured at June 30, 2015. For purposes of determining net pension liability and other pension-related amounts, information about the fiduciary net position of TRS and additions to and deductions from the TRS fiduciary net position have been determined on the same basis reported by the System. Plan benefits are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. For the year ended June 30, 2017, SUNY recog- nized pension expense of $13.6 million related to TRS. At June 30, 2017, SUNY reported deferred outflows of resources and deferred inflows of resources related to TRS from the following sources (amounts in millions):

Deferred Outflows of Resources

Deferred Inflows of Resources

Difference between expected and actual experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Net difference between projected and actual investment earnings on pension plan investments . . . . . . . . Changes in proportion and differences between employer contributions and proportionate share of contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employer contributions subsequent to measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

—00000 $

3

20

—00000

—00000

5

49 25

—00000 —00000

94 $

8

Actuarial Assumptions The net pension liability for the June 30, 2016 mea- surement date was determined by using an actuarial valuation as of June 30, 2015, with update procedures used to roll forward the net pension liability to June 30, 2016. The actuarial valuation used the following actuarial assumptions: Inflation . . . . . . . . . . . . . . . . . . . . . . 2.5 percent Investment rate of return, including inflation . . . . . . . . . . . . 7.5 percent compounded annually, net of investment expenses Cost-of-living adjustments . . . . . . . 1.5 percent compounded annually Annuitant mortality rates are based on plan member experience, with adjustments for mortality improvement based on Society of Actuaries Scale MP- 2014. Rates of projected salary increases differ based on service. They have been calculated based on recent TRS member experience and range from 1.9 percent to 4.7 percent.

The employer contributions of $25 million sub- sequent to the measurement date will be recognized as a reduction of net pension liability in the year ended June 30, 2018. Remaining amounts reported as deferred outflows of resources and deferred inflows of resources related to TRS will be recognized in pension expense as follows (amounts in millions):

Fiscal Year 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

5 5

20 16

7 8

61