Institutional Federal Compliance Report 2021

Employer and employee contribution require- ments to TIAA are determined by the RSSL. Partici- pating employees in Tiers 1 through 4 contribute 1.5 percent of salary on an after-tax basis. Participating employees in Tier 5 contribute 3 percent of salary on an after-tax basis. Employer contributions range from 10.5 percent to 13.5 percent for Tiers 1 through 4, depending upon the employee’s compensation, and 8 percent to 10 percent of salary for Tier 5, depending upon the employee’s years of service. Employee con- tributions for fiscal year 2017 amounted to approxi- mately $110.9 million. The employer contributions recognized as pension expense for the year ended June 30, 2017 were $131.7 million. ____________________________________________________________________________________________ STATE OF NEW YORK • 115

Note 13 Other Postemployment Benefits (OPEB) Governmental Activities

retirees. Eligible covered dependents bring the total number of covered individuals to approximately 1.2 million. SUNY participates in NYSHIP, but CUNY does not. Of the State’s 42 discretely presented com- ponent units, which are considered PEs, a majority participate in NYSHIP. NYSHIP does not issue a stand- alone financial report, but NYSHIP’s activities are included within the State’s financial statements. NYSHIP is classified as a single-employer, defined benefit plan and financial information is reported in an agency fund and accounted for on the accrual basis of accounting. Information related to investment val- uations is presented in Note 2.

The New York State Health Insurance Program (NYSHIP) was established by the State Legislature in 1957 to provide health insurance to New York State employees, retirees and their eligible dependents. Public authorities, public benefit corporations, and other quasi-public entities that choose to participate in NYSHIP are participating employers (PEs). Local government units that choose to participate in NYSHIP are called participating agencies (PAs). At present, there are approximately 304 New York State agencies, 98 PEs, and 809 PAs in NYSHIP. NYSHIP currently covers approximately 608 thousand employees and Current active participants (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vestee participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COBRA participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other inactive participants (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enrollment

State (1)

PEs

PAs

Total

182,559

38,397

103,442

324,398

297 674

186 567

232 269

715 1,510

162,382 345,912

19,878 59,028

98,977 202,920

281,237 607,860

(1) Includes State and SUNY participants. (2) Excludes active employees (7,815 State and 175 Roswell Park PE employees) who have opted out of NYSHIP in return for a biweekly reimbursement—for State employees, equal to $1,000 and $3,000 annually for opting out of individual-only coverage and family coverage, respectively. (3) Includes retirees, dependent survivors, long-term disability enrollees, extended benefit enrollees, young adult program enrollees and preferred list enrollees.

During the fiscal year ended March 31, 2018, NYSHIP provided health insurance coverage through: the Empire Plan, an indemnity health insurance plan with managed care components; eight Health Main- tenance Organizations (HMOs); and the Student Employee Health Plan (SEHP). Generally, these plans include hospital, medical, mental health and substance abuse benefits, and prescription drug benefits. The benefit design of the Empire Plan is the result of collective bargaining between the State and the various unions representing its employees. Therefore, the benefit design is subject to periodic change. Ben- efits are administratively extended to nonrepresented

State employees, employees of PAs and PEs, and retirees. Each participating employer in the plan is required to disclose additional information with regard to funding policy, the employer’s annual costs for other postemployment benefits (OPEB) and contri- butions made, the funded status and funding progress of the employer’s individual plan, and the actuarial methods and assumptions used. Substantially all of the State’s employees may become eligible for postemployment benefits if they reach retirement age while working for the State. The costs of providing postemployment benefits are shared between the State and the retired employee.