New York Government Finance Officers Association

Transcription

1 New York Government Finance Officers Association Retirement System Update March 22nd, 2018 Presented by: Colleen Gardner, Executive Deputy Comptroller Andrea Goldberger, Deputy Comptroller Office of the New York State Comptroller Thomas P. DiNapoli

2 Agenda New York State and Local Retirement System About NYSLRS Funding and Contributions Fund and Performance Legislative Update New Retirement Online

3 New York State & Local Retirement System Two Retirement Systems 3,040 Participating employers 335 Plan Combinations 1,104,779 Members, Retirees and Beneficiaries 652,324 Members 414,220 Retirees 38,235 Beneficiaries Value of the Fund: $192.4 billion as of March 31, 2017

4 New York State & Local Retirement System NYSLRS is a Defined Benefit Plan Fixed pension guaranteed for life, determined by: SERVICE CREDIT FINAL AVERAGE SALARY a PLAN FORMULA NOT a Defined Contribution Plan Contributions accrued during employment, but no guarantees NYSLRS is a Qualified Plan

5 Membership by Employer Type (3/31/17) Government Type ERS PFRS Total State 203,317 6, ,913 Counties 104,452 5, ,775 Cities 18,146 11,880 30,026 Towns 45,608 4,127 49,735 Villages 14,474 4,213 18,687 Miscellaneous 97,376 3, ,418 School Districts 133, ,770 Total 617,143 35, ,324

6 Membership by Tier (3/31/17) Tier ERS Percentage PFRS Percentage Total Tier 1 3, % % 3,295 Tier 2 3, % 25, % 29,186 Tiers 3 & 4 392, % % 392,699 Tier 5 51, % 1, % 53,118 Tier 6 166, % 7, % 174,026 Total 617, % 35, % 652,324

7 NYSLRS Facts $11.45 billion paid in benefits (FYE 2017) Average ERS pension $23,026 Average ERS pension $29,331 (FYE 2017 retirees) Average PFRS pension $49,123 Average PFRS pension $73,729 (FYE 2017 retirees)

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10 FUNDING AND CONTRIBUTIONS

11 How Pensions Are Funded 22 Employer Contributions 2 Employee Contributions 76 Investment Earnings NYS pensions paid April 1, 1998 March 31, 2017

12 Actuarial Analysis ERS PFRS 2018 Estimated Contributions (2/1/18 Payment) 15.3% 24.3% Changes Due to Gains/Losses In: FY 2013 Investment Performance (10.4% v 7.5%) - 0.3% - 0.3% FY 2014 Investment Performance (13.0% v 7.5%) - 0.7% - 0.8% FY 2015 Investment Performance (7.2% v 7.5%) 0.1% 0.1% FY 2016 Investment Performance (0.2% v 7.0%) 1.1% 1.2% FY 2017 Investment Performance (11.4% v 7.0%) - 0.6% - 0.7% Non-Investment Assumptions (Demographic, Salary Scale, COLA) 0.5% 0.3% New Entrant - 0.7% - 0.9% GLIP, Administrative Contributions 0.0% - 0.2% Miscellaneous 0.2% 0.4% Net Change - 0.4% - 0.9% 2019 Estimated Contributions (2/1/19 Payment) 14.9% 23.5%

13 Historical Employer Contribution Average Rate Trend Year Average Rate Average Rate Average Rate Year Year ERS PFRS ERS PFRS ERS PFRS

14 Historical Employer Contribution Average Rate Trend 40 Employer Contribution Average Rate Trend Average Rate as a Percent Contribution Year ERS PFRS

15 COMMON RETIREMENT FUND AND PERFORMANCE

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17 Common Retirement Fund Value on 3/31/2009: Value on 3/31/2014: Value on 3/31/2015: Value on 3/31/2016: Value on 3/31/2017: $108.9 billion $176.8 billion $184.5 billion $178.6 billion $192.4 billion Fund assumes a 7.0% long-term rate of return (decreased from 7.5%, effective for 2017 valuation) Total Value of Fund

18 Common Retirement Fund Performance 2010: 25.9 % 2011: 14.6 % 2012: 6.0 % 2013: 10.4 % 2014: 13.0 % 2015: 7.2 % 2016: 0.19% 2017: 11.42% Annual Return on Investments

19 Legislative Update: Amendments to Contribution Stabilization Program Tailors an amortizing employer s graded contribution rate to the employer's tier and plan demographics rather than the system average Makes technical corrections since billing rates are now applied to prior year s salaries Chapter 48 of the Laws of

20 Sets Lower Cap on Loans for new Tier 6 Members Limits the maximum amount that new NYSLRS members may borrow against retirement contributions Starting Jan. 1, 2018, new Tier 6 members can only borrow up to 50% of the member s vested account balance or $50,000 whichever is less. Conforms our maximum to the maximum amount allowed by IRS rules before the loan is considered a taxable distribution Chapter 303 of the Laws of

21 Bases Tier 6 Overtime Cap on Calendar Year The amount of overtime that can be included in Final Average Salary (FAS) of a Tier 6 member is capped and was based on earnings in state fiscal year. This bill calculates the overtime cap for ERS members based on the calendar year. Easier for employers to administer. Chapter 368 of Laws of

22 Our Vision for the New Retirement Online Self-Service Options on the Web

23 Where Are We? Release 1 Release 2 Release Member Self Service Employer Self Service Member and Employer Processes Retiree Processes (Pension Payroll)

24 NYSLRS RETIREMENT ONLINE: WHAT IT MEANS FOR EMPLOYERS 24

25 Retirement Online for Employers 2018 Changing the way employers conduct business with the NYSLRS: Completing all employer functions through Retirement Online Increased functionality for reporting, member enrollment, viewing historical data Real time notifications and exchange of information

26 Employer Now vs. Future NOW FUTURE BENEFIT Use multiple systems Hard copy notifications Manually enroll members Limited member information Days Earnings Contributions Deductions Single system Notifications via Retirement Online Electronically enroll members Report optional and mandatory members data: Earnings HR Job One system of record Decreased response time Real time contribution rate information for new members More robust source data Real time business rules improve data More timely starts/stops

27 Getting Ready for Release 2 for Employers Pre- Training Activities Sign Up and Awareness Activities Local/Municipal Webinars Fall Employer Workshops Retirement Online Sign Up Push Training Activities Virtual Instructor-Led Training (VILT) Employer Monthly Reporting (EMR303) Member Enrollment (MME302) Reporting Hands-On Training Submit Test Legacy Report File Upcoming Training Activities We Are Here Post Go-Live Enhanced Reporting VILT Hands-On Enhanced Training Retirement Online Employer Help Desk & Transition Coaches

28 Employer Certification Bronze Silver Gold Identify/Provision a Security Admin and Contact Admin Attend Virtual Instructor Led Training Attend Virtual Instructor Led Training Request Access for Appropriate Employer Contacts Complete first-time login Successfully submit a Legacy report to the training environment Practice enrolling a new member Successfully submit an Enhanced Report to the training environment

29 Employer Bronze Certification Completion Date: March 30, 2018 Identify/Provision Security and Contact Admins Request Access for Appropriate Employer Contacts (Personnel, Payroll, Reporting Submitter, Reporting Approver) Complete first-time login

30 Employer Silver Certification Completion Date: May 2018 (Legacy Report Format) Attend Virtual Instructor Led Training Member Enrollment Personnel Contact Employer Monthly Reporting Reporting Contacts Successfully submit a Legacy report to the training environment Hands On Reporting Training Reporting Contacts

31 Employer Gold Certification Enhanced Report Format Based on Transition Groups Attend Virtual Instructor Led Training for Enhanced Reporting Successfully submit an Enhanced Report to the training environment

32 Employer Transition Groups A pool of Transition Coaches will assist Employers with achieving Silver Certification A timeline to move to the Enhanced file format will be developed based on Employer readiness criteria Smaller groupings of employers with specific timelines for certification and support from Transition Coaches NYSLRS will work with Payroll Service Providers The goal is to transition Employers to Enhanced reporting to gain full benefits of the new system

33 Employer Reporting Today Multiple Applications Limited Data Job Status Changes Not Indicated Lack of Real-Time Error Messages Additional Follow Up Lack of Immediate Deduction Information

34 Employer Reporting Through Retirement Online All Reporting Through Retirement Online Enhanced Reporting File Format 1 Employers log into Retirement Online Ability to report the following: Earnings breakdown Job status changes 2 They can submit regular reports, adjustment reports, and enroll a member All employees Trigger automatic enrollment

35 Enhanced Report Overview Collect more detailed data for a larger population Reduces the need to request this information later from employers Decreases benefit calculation and service credit purchase calculation processing time Support automated enrollment for mandatory members Reduces timing issues and mandatory arrears at time of enrollment Ability to report job status changes such as leave of absence, return from leave, or change in job data

36 Key Benefits Reduces the need to request information from employers when an employee applies for retirement Decreases processing times for retirement and service credit purchase calculations Eliminates the need for a paper enrollment form to be submitted to NYSLRS for mandatory members Returns contribution rate when the employer report is submitted for employees that were automatically enrolled Allows employers to report data for each job that a person has at that organization using Employment Instance

37 Employer Website & Learn More Page Project & Release 2 Functionality Information Transition Group Information Training & Certification Details Retirement Online Events & Presentations Retirement Online Help Desk form

38 Retirement Online Help Desk for Employers and Business Partners Calls regarding the use of the new Retirement Online functionality from participating employers and business partners Calls for any certification related question Please contact the Retirement Online Help Desk: Call us at us at Use the Online Contact Form on the NYSLRS webpage

39 QUESTIONS ON RETIREMENT ONLINE?