Institutional Federal Compliance Report 2021

____________________________________________________________________________________________ STATE OF NEW YORK • 113

CUNY’s proportion of the respective net pension lia- bility at June 30, 2017 was based on CUNY’s actual contributions to NYCERS and NYCTRS relative to the total contributions of participating employers for each plan for fiscal year 2017, which was 1.2 percent and 2.2 percent for NYCERS and NYCTRS, respec- tively. CUNY’s proportion of the net pension liabilities of NYCERS and NYCTRS were 1.2 percent and 2.8 percent for fiscal year 2016, respectively. For purposes of measuring the net pension lia- bility, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the respective fiduciary net positions of NYCERS and NYCTRS and additions Differences 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Amounts reported as deferred out f lows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (amounts in millions):

to and deductions from NYCERS’ and NYCTRS’ respective fiduciary net positions have been deter- mined on the same basis as they are reported by NYCERS and NYCTRS. Accordingly, benefit pay- ments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. CUNY’s annual pension expense for NYCERS and NYCTRS for the fiscal year ended June 30, 2017 was approximately $33.7 million and $77.7 million, respectively. The following presents a summary of the deferred outflows of resources and deferred inflows of resources at June 30, 2017 (amounts in millions):

NYCERS

NYCTRS

Deferred Outflows of Resources

Deferred Inflows of Resources

Deferred Outflows of Resources

Deferred Inflows of Resources

—00000 $

6 $

39 $

—00000

—00000

10

—00000

71

(14)

(3)

(121)

(27)

12

—00000

25

—00000

(2) $

13 $

(57) $

44

Actuarial Assumptions The total pension liability used to calculate the net pension liability was determined by an actuarial val- uation as of June 30, 2015 and rolled forward to CUNY’s measurement date of June 30, 2017 for both NYCERS and NYCTRS. The total pension liability in the June 30, 2015 actuarial valuation for both NYCERS and NYCTRS was determined using the following actuarial assumptions:

Fiscal Year

NYCERS

NYCTRS

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

(1) $

(5)

4

7

(5) (11) (2)

(29) (37) (17) (20)

—00000

(15) $ (101) Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 percent Salary increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Generally 3 percent per year and increases for merit and promotion Investment rate of return including inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 percent net of investment expenses and actual return for variable funds Cost-of-living adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 percent and 2.5 percent for various Tiers

Mortality rates and methods used in determination of the total pension liability for both NYCERS and NYCTRS were adopted by the New York City Retire- ment System (NYCRS) Boards of Trustees during fiscal year 2017. Pursuant to Section 96 of the New York City Charter, studies of the actuarial assumptions used

to value liabilities of the five actuarially funded NYCRS plans are conducted every two years. Mortality tables for service and disability pension- ers were developed from an experience study of NYCERS and NYCTRS. The mortality tables for ben- eficiaries were developed from an experience review.