Institutional Federal Compliance Report 2021

TIAA CUNY also provides defined contribution pension plans for its employees through the Teachers’ Insur- ance and Annuity Association (TIAA). TIAA provides retirement and death benefits for or on behalf of those full-time professional employees and faculty members electing to participate in this optional retirement program. TIAA is a privately operated, multi-employer defined contribution retirement plan. The obligations of employers and employees to contribute to TIAA and of employees to receive benefits from TIAA are governed by the New York State Education Law and applicable New York City laws. Employer and employee contribution require- ments to TIAA are determined by the RSSL. Partici- pating employees in Tiers 1 through 4 contribute 1.5 percent of salary on an after-tax basis. Participating employees in Tier 5 contribute 3 percent of salary on an after-tax basis. Employer contributions range from 10.5 percent to 13.5 percent for Tiers 1 through 4, depending upon the employee’s compensation, and 8 percent to 10 percent of salary for Tier 5, depending upon the employee’s years of service. Employee con- tributions for fiscal year 2018 amounted to approxi- mately $68.2 million. The employer contributions recognized as pension expense for the year ended June 30, 2018 were $86.8 million. 118 • Notes to Basic Financial Statements _________________________________________________________________________

Note 13 Other Postemployment Benefits (OPEB) Governmental Activities

the total number of covered individuals to approxi- mately 1.2 million. SUNY participates in NYSHIP, but CUNY does not. Of the State’s 43 discretely pre- sented component units, which are considered PEs, a majority participate in NYSHIP. NYSHIP does not issue a stand-alone financial report, but NYSHIP’s activities are included within the State’s financial state- ments, reported in an agency fund and accounted for on the accrual basis of accounting. NYSHIP is classified as a single-employer, defined benefit plan offered by the State to PEs and PAs for their employees. Infor- mation related to investment valuations is presented in Note 2.

The New York State Health Insurance Program (NYSHIP) was established by the State Legislature in 1957 to provide health insurance to New York State employees, retirees and their eligible dependents. Public authorities, public benefit corporations, and other quasi-public entities that choose to participate in NYSHIP are participating employers (PEs). Local government units that choose to participate in NYSHIP are called participating agencies (PAs). At present, there are approximately 308 New York State agencies, 98 PEs, and 813 PAs in NYSHIP. NYSHIP currently covers approximately 611 thousand employ- ees and retirees. Eligible covered dependents bring Current active participants (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vestee participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COBRA participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other inactive participants (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enrollment

State (1)

PEs

PAs

Total

182,166

38,250

102,968

323,384

278 624

151 539

193 252

622 1,415

165,631 348,699

20,491 59,431

99,823 203,236

285,945 611,366

(1) Includes State and SUNY participants. (2) Excludes active employees (6,989 State and 201 Roswell Park PE employees) who have opted out of NYSHIP in return for a biweekly reimbursement—for State employees, equal to $1,000 and $3,000 annually for opting out of individual-only coverage and family coverage, respectively. (3) Includes retirees, dependent survivors, long-term disability enrollees, extended benefit enrollees, young adult program enrollees and preferred list enrollees.

During the fiscal year ended March 31, 2019, NYSHIP provided health insurance coverage through: the Empire Plan, an indemnity health insurance plan with managed care components; eight Health Main- tenance Organizations (HMOs); and the Student Employee Health Plan (SEHP). Generally, these plans include hospital, medical, mental health and substance abuse benefits, and prescription drug benefits. The benefit design of the Empire Plan is the result of collective bargaining between the State and the various unions representing its employees. Therefore, the benefit design is subject to periodic change. Ben- efits are administratively extended to nonrepresented

State employees, employees of PAs and PEs, and retirees. Each participating employer in the plan is required to disclose additional information with regard to funding policy, the employer’s annual costs for other postemployment benefits (OPEB) and contri- butions made, the funded status and funding progress of the employer’s individual plan, and the actuarial methods and assumptions used. Substantially all of the State’s employees may become eligible for postemployment benefits if they reach retirement age while working for the State. The costs of providing postemployment benefits are shared between the State and the retired employee.