Institutional Federal Compliance Report 2021

Contributions The authority under which the obligations of the plan members, employers and other contributing entities to contribute to the plan are established or may be amended can be found in Article XI, Section 167 of the Civil Service Law. Contributions are determined in accordance with Civil Service Law—Article XI, Sec- tions 165, 165-a and 167, which assigns the author- ity to NYSHIP to establish and amend the benefit provisions of the plans and to establish maximum obligations of the plan members to contribute. The costs of administering the plan are charged as part of the health insurance premium to all payors under the authority of Section 163.2 of Civil Service Law. A retiree is generally required to pay on a monthly basis either 12 percent or 27 percent of the health insurance premium for enrollee coverage, or either 27 percent or 31 percent of the healthcare insurance premium for dependent coverage, which is reduced by the amount of sick leave credits available at the time of retirement factored by the employee’s retire- ment age. Required employer contribution rates, depending upon enrollee or dependent coverage, are presented in the following table: 116 • Notes to Basic Financial Statements _________________________________________________________________________ EMPLOYER CONTRIBUTIONS (As Percentages of Premium Rates) Enrollee Dependent Enrollee Group Coverage Coverage Active Graduate Student Employees Union (GSEU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88% 73% Active (Union and Management-Confidential [MC])—Below Grade 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88% 73% Active (Union and MC)—Grade 10 and above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84% 69% Preferred list . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90% 75% Retired before January 1, 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 75% Retired on/after January 1, 1983 but before January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88% 73% Retired on/after January 1, 2012—Below Grade 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88% 73% Retired on/after January 1, 2012—Grade 10 and above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84% 69% Amended dependent survivors (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75% 75% Full share dependent survivors/long term disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% —% Dependent survivors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90% 75% Attica dependent survivors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100% Vestees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% —% COBRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% —% Young Adult Option enrollees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —% —% Participating employers and participating agencies (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50% 35% (1) State contribution for enrollee and dependent coverage is 75 percent of dependent coverage. (2) Values reported are minimum employer share. Employers can pay greater percentages of premiums for their retirees.

The State reimburses Medicare eligible enrollees 100 percent of the cost of the monthly Medicare Part B premium. However, the funding of the cost of the Medicare reimbursements is not the sole responsibility of the employer. A Medicare Part B component has been incorporated into the NYSHIP Premium Rates. It is just one component of the NYSHIP premiums in which the above listed employer contribution percent- ages are applicable. The premium generated from the Medicare Part B NYSHIP rate component is uti- lized to make the Medicare Part B reimbursement payments to Medicare Primary NYSHIP enrollees. In addition, the State reduces the retiree health insurance contributions for the value of a retiree’s

unused sick leave credit at retirement (converted to a monthly fixed value). The cost is paid by the State. Funding Policy The contribution requirements of NYSHIP members and the State are established and may be amended by the State Legislature. The State is not required to fund the plan other than the pay-as-you-go amount necessary to provide current benefits to retirees. For the fiscal year ended March 31, 2018, the State paid $1.6 billion on behalf of the plan. The RSI contains a schedule of funding progress that presents multiyear trend information for the actuarial values of plan assets and accrued liabilities.