Institutional Federal Compliance Report 2021

106 • Notes to Basic Financial Statements _________________________________________________________________________

percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is $191.5 million and from participating employers is $58 million. The thresholds for the fiscal year ended 2013 were 11.5 percent of payroll for ERS and 19.5 percent for PFRS. The interest rate was 3 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is $339.8 million and from participating employers is $135.6 million. The thresholds for the fiscal year ended 2014 were 12.5 percent of payroll for ERS and 20.5 percent for PFRS. The interest rate was 3.67 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is $511.7 million and from participating employers is $96.3 million. The thresholds for the fiscal year ended 2015 were 13.5 percent of payroll for ERS and 21.5 percent for PFRS. The interest rate was 3.15 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is $455 million and from participating employers is $84.7 million. The thresholds for the fiscal year ended 2016 were 14.5 percent of payroll for ERS and 22.5 percent for PFRS. The interest rate was 3.21 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is $261.3 million and from participating employers is $47.5 million. The thresholds for the fiscal year ended 2017 are 15.1 percent of payroll for ERS and 23.5 percent for PFRS. The interest rate is 2.33 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is zero and from participating employers is $5 million. The thresholds for the fiscal year ended 2018 are 14.9 percent of payroll for ERS and 24.3 percent for PFRS. The interest rate is 2.84 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is zero and from participating employers is $4 million. The thresholds for the fiscal year ended 2019 are 14.4 percent of payroll for ERS and 23.5 percent for PFRS. The interest rate is 3.64 percent. The amortized amount receivable due to the System as of March 31, 2019 from the State is zero and from participating employers is $4.2 million.

deceased retiree receiving a lifetime benefit under an option elected by the retiree at retirement. An eligible spouse is entitled to one-half the cost-of-living adjust- ment amount that would have been paid to the retiree when the retiree would have met the eligibility criteria. This cost-of-living adjustment is a percentage of the annual retirement benefit of the eligible member as computed on a base benefit amount not to exceed $18,000 of the annual retirement benefit. The cost- of-living percentage shall be 50 percent of the annual Consumer Price Index as published by the U.S. Bureau of Labor, but cannot be less than 1 percent or greater than 3 percent. Contributions Employee contribution requirements depend upon the point in time at which an employee last joined the System. Most Tier 1 and Tier 2 members of ERS and most members of PFRS are not required to make employee contributions. Employees in Tiers 3, 4 and 5 are required to contribute 3 percent of their salaries. However, as a result of Article 19 of the RSSL, eligible Tier 3 and 4 employees who have ten or more years of membership or credited service within the System are not required to contribute. The Tier 6 contribution rate varies from 3 percent to 6 percent, depending on salary. Tier 5 and 6 members are required to con- tribute for all years of service. Members cannot be required to begin contributing or to make increased contributions beyond what was required when their memberships began. Participating employers are required under the RSSL to contribute to the System at an actuarially determined rate adopted annually by the Comptroller. The average contribution rate for ERS for the fiscal year ended March 31, 2019 was approximately 14.9 percent of payroll. The average contribution rate for PFRS for the fiscal year ended March 31, 2019 was approximately 23.5 percent of payroll. The State’s contributions for the year ended March 31, 2019 were $1.6 billion for ERS and $168 million for PFRS. Chapter 57 of the Laws of 2010 authorized the State and local employers to amortize a portion of their annual pension costs over ten years during periods when actuarial contribution rates exceed thresholds established by the statute. Specific provi- sions include: The thresholds for the fiscal year ended 2011 were 9.5 percent of payroll for ERS and 17.5 percent of payroll for PFRS. The interest rate was 5 percent. The amortized amount receiv- able due to the System as of March 31, 2019 from the State is $52.3 million and from par- ticipating employers is $7.2 million. The thresholds for the fiscal year ended 2012 were 10.5 percent of payroll for ERS and 18.5 percent for PFRS. The interest rate was 3.75