Institutional Federal Compliance Report 2021

Sensitivity of total OPEB liability to changes in health care cost trend rates. The following presents the total OPEB liability of the State as of March 31, 2019 using the current year’s healthcare cost trend rate, as well as what the total OPEB liability would be if it were calculated using rates that are 1 percentage point higher and 1 percentage point lower than the current year’s rate (amounts in millions): ____________________________________________________________________________________________ STATE OF NEW YORK • 121 1% Current 1% Decrease Trend Rates Increase Total OPEB Liability as of March 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,542 $ 50,886 $ 61,841

The State recognized $2.9 billion in expenses related to OPEB at March 31, 2019. As of March 31, 2019, the State reported deferred outflows and

deferred inflows of resources related to OPEB from the following sources (amounts in millions):

Deferred Outflows of Resources

Deferred Inflows of Resources

Difference between expected and actual experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Changes in assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employer contributions made subsequent to the measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

—00000 $ —00000

3,784 186

1,680

—00000

1,680 $

3,970

Business-Type Activities: Lottery recognized a total OPEB liability of $66 mil- lion and expenses related to OPEB of $4 million as of March 31, 2019. As of March 31, 2019, Lottery reported deferred outflows of resources of $2 million and deferred inflows of resources of $5 million. The $2 million reported as deferred outflows of resources related to OPEB resulted from Lottery’s contributions made subsequent to the measurement date that will be recognized as a reduction of the total OPEB liability in the year ended March 31, 2020. The $5 million reported as deferred inflows of resources related to OPEB will be recognized in future OPEB expense over the next five years. SUNY changes in the total OPEB liability as of June 30, 2018 were as follows (amounts in millions):

The amount of deferred outflows of resources resulting from employer contributions made subse- quent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended March 31, 2020. The deferred inflows of resources related to OPEB will be recognized in future OPEB expense for the fiscal years ending March 31 as follows (amounts in millions):

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

(865) (865) (865) (865) (510)

(3,970)

Total OPEB Liability, Beginning Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Difference between expected and actual experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Benefit payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total OPEB Liability, Ending Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

12,994

531 516

(1,151)

(55) (330) (489)

12,505

Changes in assumptions and other inputs include a change in the discount rate from 2.64 percent under GASBS 45 to 3.86 percent in fiscal year 2017 and 3.89 percent in fiscal year 2018. The medical trend and excise tax assumptions were updated based on current anticipation of future costs, and projected claim costs were updated based on the recent claims experience

for the Preferred Provider Organization (PPO) plans and premium rates for the Health Maintenance Orga- nization (HMO) plans. There were no significant changes between the March 31, 2018 measurement and June 30, 2018 that will have a significant effect on the total OPEB liability at June 30, 2018.