Employer pension contribution rates announced for fiscal year 2014-15

Employer pension contribution rates announced for fiscal year 2014-15

Source: Office of the State Comptroller

On August 27, 2013, Comptroller Thomas P. DiNapoli reported that employer contribution rates for the New York State and Local Retirement System will decline slightly in Fiscal Year 2014-15.

The average contribution rate for the Employee Retirement System (ERS) will decrease by 0.8 percent of payroll, from 20.9 percent to 20.1 percent. The average contribution rate for the Police and Fire Retirement System (PFRS) will decrease by 1.3 percent of payroll, from 28.9 percent to 27.6 percent.

“The New York State Common Retirement Fund’s strong gains over the last four years have mitigated some of the impact of the financial market collapse of 2008-2009,” DiNapoli said. “Strong investment performance, along with a revision in actuarial smoothing, has lowered the employer contribution rate for 2014-15.”

Employer rates are determined based on actuarial assumptions recommended by the Retirement System’s actuary and approved by DiNapoli.

The Retirement System’s actuary recommended a change based on a recommendation from Buck Consultants, LLC, as part of an independent actuarial review which is performed every five years. The previous method separated assets into equities and non-equities, while the new method expects the entire fund to earn the assumed rate of return and smoothes any unexpected gains or losses. According to Buck, the new method is generally used by the majority of public pension systems nationwide.

In 2012, DiNapoli directed the Retirement System to give employers access to a full projection of their annual pension bill by September 1, six weeks earlier than in previous years. Employers use this projection for preparation of their local budgets and calculation of tax levies subject to the property tax cap effective for fiscal years that begin in 2014.

Projections of required contributions will vary by employer depending on factors such as retirement plans, salaries and the distribution of their employees among the six retirement tiers. The employer contribution rates announced today will apply to each employer’s salary base during the period of April 1, 2014 through March 31, 2015. Payments based on those rates are due by February 1, 2015, but may be pre-paid on December 15, 2014.

N.B. The property tax cap generally limits the amount a government entity can increase its annual tax levy to two percent or the rate of inflation, whichever is less. The cost of pensions above a change in the average contribution rate by more than two percentage points is excluded from the tax cap. Since the ERS and PFRS rates have declined, there will not be any exclusion for this period.
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Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

Issued during the week ending August 24, 2013

The State Comptroller audits local governments to assist them in improving their financial management practices. [Click on text highlighted in bold to access the full report.] 

DiNapoli, NYBDC Announce $3.2 Million Loan to Nirvana Water

New York State Comptroller Thomas P. DiNapoli and New York Business Development Corporation CEO Pat MacKrell announced a $3.2 million loan to Nirvana Water, based in Boonville in Oneida County on August 21, 2013 . The loan marks a milestone of 1,000 loans granted to small businesses in New York using funds from the New York State Common Retirement Fund.

DiNapoli Announces Two SoftBank Capital Investments In New York City Tech Market

Two New York City–based technology companies, RebelMouse and Coopkanics, received venture funding from SoftBank Capital, an investment partner of the New York State Common Retirement Fund, through the In–State Private Equity Program, New York State Comptroller Thomas P. DiNapoli announced August 20, 2013.

DiNapoli: New York’s Job Count Up, Though Growth Slows

For the first time in six years, national job growth rates have exceeded those in New York State, according to a new report on economic trends released August 23, 2013 by New York State Comptroller Thomas P. DiNapoli.

Comptroller DiNapoli Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli Wednesday announced his office completed audits of

the Carthage–Wilna Fire District;

the Village of Clyde;

the Town of Dayton;

the Village of Maybrook;

the Olcott Fire District, Inc.;

the Town of Ontario;

the Town of Putnam Valley; and,

the Town of Washington.

New York State Fair

Comptroller DiNapoli will be at the New York State Fair in Syracuse on Monday, August 26th. During his visit, the Comptroller and staff from the Division of Unclaimed Funds will present unclaimed funds checks to Central New York owners.

You can join the conversation and see information about his visit on Facebook at www.facebook.com/nyscomptroller.
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The Adjunct Law Professor’s LawBlog has a new look

The Adjunct Law Professor’s LawBlog has a new look

The Adjunct Law Professor Law Blog, which has as its focus personnel law in general and public personnel law in particular, has been completely redesigned.

Recent posts include summaries of decisions addressing discrimination against the disabled and claims alleging same sex harassment.

The URL is http://lawprofessors.typepad.com/adjunctprofs/

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New York State’s Student Internship Program Offers Hundreds Of Internships

New York State’s Student Internship Program Offers Hundreds Of Internships Source: New York State Department of Civil Service

Civil Service Commissioner Jerry Boone recently announced that New York State has hundreds of internships available, and reminded college students to apply for Fall semester internships before the application deadline on September 3, 2013. New York State created a one-stop website at http://nysinternships.com/nnyl/ that allows students to view and apply for internship opportunities across an array of state agencies both downstate and upstate. The website is one component of Governor Andrew M. Cuomo’s New New York Leaders initiative, which is focused on attracting new talent to state government through both a fellowship program and an internship program.  With the internship website, applicants can view job descriptions, create profiles, specify interests, and upload resumes, writing samples and letters of recommendation.  Students can apply for multiple internships at the same time. “The internship program is designed to attract and mentor a new generation of talented leaders for New York State,” said Governor Andrew M. Cuomo.  “I continue to encourage talented college students to consider devoting time to public service while acquiring valuable skills and marketable work experience.” “New York State continues to offer a wide variety of opportunities across numerous professional occupations,” said Civil Service Commissioner Jerry Boone.  “Governor Cuomo’s internship program offers opportunities for hands on experience in finance, engineering, public relations, information technology and health care, as well as a host of other professional disciplines.” The program is open to resident graduate and undergraduate students as well as students who attend schools in other states, but reside in New York.  Opportunities include both paid and unpaid positions.  Internships may include academic credit depending on the policy of the educational institution. To apply, visit http://nysinternships.com/nnyl/ .

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Public employee pensions account for about 3% of government spending

Public employee pensions account for about 3% of government spending

Source: New York State Teachers’ Retirement System

According to a February 2012 report by the National Association of State Retirement Administrators (NASRA), “on the average, pension costs for state and municipal governments are just shy of 3% of total spending.”

The NASRA report noted that “State and local government pension benefits are paid not from general operating revenues, but from trust funds to which public retirees and their employers contributed while they were working. …On average, public pension programs remain a small part of state and local government spending.”

NASRA’s calculations were based on the most-recent data then available from the U.S. Census Bureau. (Read more)
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