New York State and Local Retirement System employer contribution rates will decrease for the 2017 fiscal year, State Comptroller Thomas DiNapoli announced on Sept. 4.
The average contribution rate for the Employees' Retirement System will drop from 18.2% of payroll to 15.5% for New York's next fiscal calendar that starts July 1, 2016, according to DiNapoli. The average contribution rate for the Police and Fire Retirement System will sink from 24.7% of payroll to 24.3%.
DiNapoli also announced that the assumed rate of return for the NYSLRS will be lowered from 7.5% to 7%. This marks the second time since DiNapoli became comptroller in 2007 that he lowered the rate of return with last coming in 2010 when it was brought down to 7.5% from 8%. The median assumed rate of return for public pension funds is 7.75%, according to the National Association of State Retirement Administrators.
"For the third year in a row, there will be a decline in pension contribution rates as a result of solid investment returns," said DiNapoli in a statement. "Lowering the assumed rate of return is fiscally prudent and will better position the state pension fund for the future. This strategic decision is consistent with the tougher investment climate ahead."
The audited value of the New York State Common Retirement Fund was $184.5 billion as of March 31, 2015, according to DiNapoli.
