Institutional Federal Compliance Report 2021

These financial statements are prepared on the accrual basis of accounting in accordance with GAAP, with invest- ments reported at fair value and benefits recognized when due and payable in accordance with the terms of the Upstate Plan. The Upstate Plan’s fiduciary net posi- tion for purposes of determining net pension liability has been determined on the same basis used by the Upstate Plan. The pension plan financial statements may be requested at FOIL@upstate.edu . ____________________________________________________________________________________________ STATE OF NEW YORK • 111 Net Pension Liability and Other Pension-Related Amounts SUNY recognized a net pension liability related to the Upstate Plan of $10.5 million as of June 30, 2017, based on the net pension liability as reported by the plan as of December 31, 2016, as follows (amounts in millions): Total pension liability . . . . . . . . . . . . . . . . . . . $ 106.0 Plan fiduciary net position . . . . . . . . . . . . . . . 95.5 Net pension liability . . . . . . . . . . . . . . . . $ 10.5

Pension expense for the year was $3.4 million. At June 30, 2017, SUNY reported deferred outflows of resources and deferred inflows of resources related to

the Upstate Plan from the following sources (amounts in millions): Deferred Deferred Outflows of Inflows of Resources Resources

Net difference between projected and actual investment earnings on pension plan investments . . . . . . . . $ Changes in assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employer contributions subsequent to measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

4 $

1 1

—00000

2

—00000

6 $

2

The employer contributions of $2 million made subsequent to the measurement date will be recog- nized 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 the Upstate Plan will be recognized in pension expense as follows (amounts in millions):

the December 31, 2016 measurement included an infla- tion factor of 3 percent, projected salary increases of 3.5 percent and an 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-2016. Expected Rate of Return The long-term expected rate of return on pension plan investments was determined in accordance with ASOP No. 27, which provides guidance on the selection of an appropriate assumed investment rate of return. Con- sideration was given to the expected future real rates of return (expected returns, net of pension plan invest- ment expense and inflation) for each major class as well as historical investment data and plan performance. 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, 2016 is as follows: Long-Term Target Expected Rate

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

0.5 1.0 1.0

(0.3)

2.2

Actuarial Assumptions The total pension liability at December 31, 2016 was determined by using an actuarial valuation as of Decem- ber 31, 2016. The actuarial assumptions included in

Asset Class

Allocation

of Return

U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alternatives (Real assets) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50% 15% 30% 5%

4.60% 4.50% 0.75% 3.50%

100%

Discount Rate The discount rate used to measure the net pension lia- bility measured at December 31, 2016 was 6.5 percent, which is consistent with the December 31, 2015 mea- surement date. The projection of cash flows used to determine the discount rate assumed that contribu- tions from plan members will be made at the current member contribution rates and that contributions from

members will be made at statutorily required rates, actuarially determined. Based on these assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.