Institutional Federal Compliance Report 2021

116 • Notes to Basic Financial Statements _________________________________________________________________________

For purposes of measuring the net pension lia- bility, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the respective fiduciary net positions of NYCERS and NYCTRS and additions to and deductions from NYCERS’ and NYCTRS’ respective fiduciary net positions have been deter- mined on the same basis as they are reported by NYCERS and NYCTRS. Accordingly, benefit pay- ments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. CUNY’s annual pension expense for NYCERS and NYCTRS for the fiscal year ended June 30, 2018 was approximately $36.4 million and $96.5 million, respectively. The following presents a summary of the deferred outflows of resources and deferred inflows of resources at June 30, 2018 (amounts in millions):

Each of these retirement plans issue publicly avail- able financial reports that include financial statements and required supplementary information. Please refer to www.nycers.org and www.trsnyc.org for additional infor- mation about NYCERS and NYCTRS, respectively. Net Pension Liability and Other Pension-Related Amounts At June 30, 2018, CUNY reported liabilities of $234 million and $491.2 million for NYCERS and NYCTRS, respectively, for its proportionate share of each plan’s net pension liability, measured as of June 30, 2018. CUNY’s proportion of the respective net pension lia- bility at June 30, 2018 was based on CUNY’s actual contributions to NYCERS and NYCTRS relative to the total contributions of participating employers for each plan for fiscal year 2018, which was 1.3 percent and 2.6 percent for NYCERS and NYCTRS, respec- tively. CUNY’s proportion of the net pension liabilities of NYCERS and NYCTRS were 1.2 percent and 2.2 percent for fiscal year 2017, respectively. Differences 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Amounts reported as deferred out f lows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (amounts in millions):

NYCERS

NYCTRS

Deferred Outflows of Resources

Deferred Inflows of Resources

Deferred Outflows of Resources

Deferred Inflows of Resources

—00000 $

23 $

26 $

51

—00000

13

—00000

98

16

(2)

(11)

(12)

3

—00000

14

—00000

19 $

34 $

29 $

137

Actuarial Assumptions The total pension liability used to calculate the net pension liability was determined by an actuarial val- uation as of June 30, 2016 and rolled forward to CUNY’s measurement date of June 30, 2018 for both NYCERS and NYCTRS. The total pension liability in the June 30, 2016 actuarial valuation for both NYCERS and NYCTRS was determined using the following actuarial assumptions: Inflation . . . . . . . . . . . . . . . . . . . . . . 2.5 percent Salary increases . . . . . . . . . . . . . . . Generally 3 percent per year plus increases for merit and promotion Investment rate of return including inflation . . . . . . . . . . . . 7 percent net of investment expenses; actual return for variable funds Cost-of-living adjustments . . . . . . . 1.5 percent and 2.5 percent for various Tiers

Fiscal Year

NYCERS

NYCTRS

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

4 $

3

(5) (13) (3)

(38) (48) (23) (10)

2

—00000

8

(15) $

(108)