Institutional Federal Compliance Report 2021

____________________________________________________________________________________________ STATE OF NEW YORK • 119

and New York City Board of Education Retirement System. The program also covers individuals under alternate retirement arrangements. The most signif- icant alternate arrangement is coverage under TIAA rather than through NYCRS. New York City pays for the coverage (Basic Coverage and Welfare Fund con- tributions) for retirees in NYCRS who retired from community colleges. The entry age actuarial cost method is used to determine the annual required

contribution (ARC) and the unfunded actuarial accrued liability (UAAL). The actuarial assumptions include a 4 percent discount rate, payroll growth rate of 3 percent, and an annual healthcare cost trend rate for medical coverage of 7.5 percent initially, reduced to a rate of 5 percent by 2023. CUNY’s annual OPEB costs and changes in net OPEB obligations for the year ended June 30, 2017 are as follows (amounts in millions):

Annual required contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Interest on net OPEB obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjustment to annual required contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annual OPEB cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Contributions made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Increase in OPEB obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Actuarial accrued liability (AAL) June 30, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Funded OPEB plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unfunded actuarial accrued liability (UAAL) June 30, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Funded ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Covered payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ UAAL as percentage of covered payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

130 28

(28)

130

(31)

99 708 807

1,239

—00000

1,239

—0 0 0 % 1,069 115.9%

The CUNY Research Foundation, a blended com- ponent unit of the CUNY Senior Colleges, reports OPEB in accordance with ASC Topic 715, Compensa- tion—Retirement Benefits . CUNY Senior Colleges’ OPEB liability reported in the Statement of Net Position, Enterprise Funds ($808 million), includes the CUNY Senior Colleges’ net obligation above ($807 million),

and the funded status of the CUNY Research Foun- dation’s plan as of June 30, 2017 ($1.2 million). CUNY’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for CUNY’s three most recent fiscal years were as follows (amounts in millions):

Percentage of Annual

Annual OPEB Cost

Net OPEB Obligation

Fiscal Year Ended

OPEB Cost Paid

06/30/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 06/30/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 06/30/15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

130 123 120

23.85% $ 23.58% $ 24.17% $

807 708 614

Note 14 Discretely Presented Component Units—Public Benefit Corporations Discretely presented component units—public benefit corporations (Corporations), as defined in Note 1, are legally separate entities that are not operating depart- ments of the State. The Corporations are managed independently, outside the appropriated budget process, and their powers generally are vested in a governing board. Corporations are established for the benefit of the State’s citizenry for a variety of purposes such as economic development, financing, and public transportation. They are not subject to State constitu- tional restrictions on the incurrence of debt, which apply to the State itself, and may issue bonds and notes within legislatively authorized amounts. Corporations are generally supported by revenues derived from their activities, although the State has pro- vided financial assistance, in some cases of a recurring nature, to certain Corporations for operating and other expenses. Financial assistance in the form of appropri- ated loans, contributed capital or operating subsidies for certain Corporations, principally the Metropolitan Transportation Authority, the Roswell Park Cancer Institute, and the Urban Development Corporation, was provided in the fiscal year ended March 31, 2018 and such assistance is expected to be required in future years. Accordingly, the fiscal condition of the State is related to the fiscal stability of the Corporations.