DiNapoli: Employer Contribution Rates Stable for State Fiscal Year 2019-2020
Employer contribution rates for the state's pension system in State Fiscal Year 2019-20 will be in line with the previous year, with the Employees' Retirement System (ERS) getting a slight decrease and the Police and Fire Retirement System's (PFRS) rate unchanged,
"Solid investment returns help keep contribution rates stable and that provides predictability for employers as they plan their future budgets," DiNapoli said. "
The Fund's investment rate of return was 11.35 percent with an audited value of
The estimated average contribution rate for participating employers in the ERS will decrease in SFY 2019-20 from 14.9 percent of payroll to 14.6 percent of payroll. The estimated average contribution rate for participating employers in the PFRS will remain at 23.5 percent of payroll.
Employer rates for the
In 2015, the Actuary conducted a review of the economic and demographic experience of NYSLRS for the prior five years. Based on that report, DiNapoli lowered the assumed rate of return in 2015 from 7.5 percent to 7 percent. The median assumed rate of return among public pension funds is 7.46 percent as of
In 2012, DiNapoli began providing employers with access to a two-year projection of their annual pension bill six weeks earlier than in previous years. Employers use this projection in the preparation of their budgets.
Projections of required contributions vary by employer depending on factors such as the types of retirement plans they adopt, salaries and the distribution of their employees among the six retirement tiers.
There are more than 3,000 participating employers in ERS and PFRS, and 334 different plan combinations.
Payments based on the new rates are due by
To read the report (https://www.osc.state.ny.us/retire/word_and_pdf_documents/reports/actuarial_assumption/aa_2018.pdf), or go to: https://www.osc.state.ny.us/retire/word_and_pdf_documents/reports/actuarial_assumption/aa_2018.pdf
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