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Office of the New York State Comptroller’s Seal

NYS Comptroller

Thomas P. DiNapoli

Contribution Stabilization Program

Definitions

Normal Rates
Rates for each retirement plan (Employees’ Retirement System [ERS] and the Police and Fire Retirement System [PFRS]), are determined based on actuarial assumptions recommended by NYSLRS’ Actuary in the Annual Report to the Comptroller on Actuarial Assumptions.
Normal Annual Contribution
An employer’s annual contribution to the Retirement System is determined based on actuarial assumptions recommended by NYSLRS’ Actuary in the Annual Report to the Comptroller on Actuarial Assumptions. The normal contribution is an employer’s total bill, excluding payments for deficiencies, group life insurance, previous amortizations, incentive costs and prior year’s adjustments.
System’s Average Rates
Average rates for the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS) are determined by the System’s Actuary. For fiscal year 2017, the average ERS rate is 15.5 percent and the average PFRS rate is 24.3 percent. For fiscal year 2018, the average rate will be 15.3 percent in ERS and 24.4 percent in PFRS.
Employer’s Average Rate
Average rate for a particular employer is determined by dividing an employer’s normal contribution by that employer’s projected salaries.
Graded Rates
Graded rates for the Employees’ Retirement System (ERS) and Police and Fire Retirement System (PFRS) are determined following the procedures established by the Contribution Stabilization Program. For the annual contribution payment due February 1, 2017, the graded rate is 15.1 percent for ERS and 23.5 percent in PFRS.
Each year, the graded rate will increase or decrease by up to 1 percent depending on the gap between the increase or decrease in the System’s average rate and the previous graded rate. For the annual contribution payment due February 1, 2018, the graded rate is 14.9 percent for ERS and 24.3 percent for PFRS. Graded rates exclude any employer group life insurance owed that fiscal year.
Graded Contribution
The annual contribution to the Retirement System is based on the graded rates established by the Contribution Stabilization Program.
Maximum Amortization Amount
The maximum amortization amount is the difference between an employer’s normal annual contribution and the graded contribution. Employers that elect to participate in the Contribution Stabilization Program can choose to amortize the maximum amount or a lesser portion. Amortizations are paid over a ten-year period at an interest rate comparable to taxable fixed income investments of a similar duration.
The interest rate on the amortized amount in a particular rate year will be fixed for the duration of the ten-year repayment period. If an employer chooses to amortize in the next rate year, the interest rate on that amortized amount will be the rate set for that year, and may be different from the previous rate year.
The interest rate for amounts amortized in fiscal year 2017 is 2.33 percent.

(Rev. 10/16)