Institutional Federal Compliance Report 2021

112 • Notes to Basic Financial Statements _________________________________________________________________________

Board, pursuant to Article 11 of the New York State Education Law. The actuarially determined contribution rate applicable to 2017-18 salaries was 9.8 percent. For the fiscal year ended June 30, 2018, SUNY employer contributions were $15 million.

retired for five years, regardless of age, to be eligible. The annual COLA percentage is equal to 50 percent of the increase in the consumer price index, not to exceed 3 percent nor be lower than 1 percent. It is applied to the first $18,000 of the annual benefit. Contributions Tier 3 and Tier 4 members who have less than 10 years of service or membership are required by law to con- tribute 3 percent of salary to the System. Tier 5 members are required by law to contribute 3.5 percent of salary throughout their active membership. Tier 6 members are required by law to contribute between 3 percent and 6 percent of salary throughout their active mem- bership, in accordance with a schedule based upon salary earned. Pursuant to Article 14 and Article 15 of the RSSL, those member contributions are used to help fund the benefits provided by the System. However, if a member dies or leaves covered employment with less than 5 years of credited service for Tiers 3 and 4, or less than 10 years of credited service for Tiers 5 and 6, the member contributions with interest calculated at 5 percent per annum are refunded to the employee or designated beneficiary. Eligible Tier 1 and Tier 2 members may make member contributions under certain conditions pursuant to the provisions of Article 11 of the Education Law and Article 11 of the RSSL. Upon termination of membership, such accumulated member contributions are refunded. At retirement, such accumulated member contributions can be with- drawn or are paid as a life annuity. Employers are required to contribute at an actuar- ially determined rate adopted annually by the Retirement

Net Pension Liability and Asset and Pension-Related Amounts

SUNY’s proportionate share of the collective TRS net pension asset reported at June 30, 2018 of $(6.1) million was measured at June 30, 2017. SUNY’s pro- portion of the collective TRS net pension asset was based on the ratio of the SUNY employer contribution to the total TRS employer contributions for the year ended June 30, 2017. SUNY’s proportion of the col- lective TRS net pension asset measured at June 30, 2017 was 0.81 percent, compared to SUNY’s propor- tion of the collective TRS net pension liability of 0.82 percent measured at June 30, 2016. For purposes of determining net pension liability (asset) and other pension-related amounts, information about the fiduciary net position of TRS and additions to and deductions from the TRS fiduciary net position have been determined on the same basis reported by the System. Plan benefits are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. For the year ended June 30, 2018, SUNY recog- nized pension expense of $14.7 million related to TRS. At June 30, 2018, SUNY reported deferred out- flows of resources and deferred inflows of resources related to TRS from the following sources (amounts in millions):

Deferred Outflows of Resources

Deferred Inflows of Resources

Difference 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employer contributions subsequent to measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

5 $

2

—00000

15

—00000

4

63 27

—00000 —00000

95 $

21

Actuarial Assumptions The net pension asset for the June 30, 2017 measure- ment date was determined by using an actuarial val- uation as of June 30, 2016, with update procedures used to roll forward the net pension liability to June 30, 2017. The actuarial valuation used the following actuarial assumptions: Inflation . . . . . . . . . . . . . . . . . . . . . . 2.5 percent Investment rate of return, including inflation . . . . . . . . . . . . 7.25 percent compounded annually, net of investment expenses Cost-of-living adjustments . . . . . . . 1.5 percent compounded annually

The employer contributions of $27.4 million sub- sequent to the measurement date will be recognized as an increase of net pension asset in the year ended June 30, 2019. Remaining amounts reported as deferred outflows of resources and deferred inflows of resources related to TRS will be recognized in pension expense as follows (amounts in millions):

Fiscal Year 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

1

16 11

2

11

6

47