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City of Rochester ERS

City of Rochester ERS

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Published by: liz_benjamin6490 on Feb 19, 2013
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Analysis of Stable Rate Pension Option vs.

Normal Contribution
General Employees Only - ERS - Salary Figures Provided by See Through NY
Year Fiscal Year
Stable Rate
Pension
Option Salaries Pension Invoice
Normal
Contribution Pension Invoice
1 2014 -2015 12.00% $79,216,668 $9,506,000 21.80% $17,269,234
2 2015 -2016 12.00% $81,197,085 $9,743,650 17.90% $14,534,278
3 2016 -2017 12.00% $83,227,012 $9,987,241 15.90% $13,233,095
4 2017 -2018 12.00% $85,307,687 $10,236,922 14.10% $12,028,384
5 2018 -2019 12.00% $87,440,379 $10,492,846 12.20% $10,667,726
6 2019 -2020 12.00% $89,626,389 $10,755,167 12.00% $10,755,167
7 2020 -2021 12.00% $91,867,048 $11,024,046 10.50% $9,646,040
8 2021 -2022 12.00% $94,163,725 $11,299,647 9.90% $9,322,209
9 2022 -2023 12.00% $96,517,818 $11,582,138 9.00% $8,686,604
10 2023 -2024 12.00% $98,930,763 $11,871,692 8.10% $8,013,392
11 2024 -2025 12.00% $101,404,032 $12,168,484 7.90% $8,010,919
12 2025 -2026 12.00% $103,939,133 $12,472,696 7.60% $7,899,374
13 2026 -2027 12.00% $106,537,611 $12,784,513 7.20% $7,670,708
14 2027 -2028 12.00% $109,201,052 $13,104,126 6.50% $7,098,068
15 2028 -2029 12.00% $111,931,078 $13,431,729 6.30% $7,051,658
16 2029 -2030 12.00% $114,729,355 $13,767,523 6.10% $6,998,491
17 2030 -2031 12.00% $117,597,589 $14,111,711 6.00% $7,055,855
18 2031 -2032 12.00% $120,537,529 $14,464,503 6.00% $7,232,252
19 2032 -2033 12.00% $123,550,967 $14,826,116 6.00% $7,413,058
20 2033 -2034 12.00% $126,639,741 $15,196,769 6.00% $7,598,384
21 2034 -2035 12.00% $129,805,735 $15,576,688 6.00% $7,788,344
22 2035 -2036 12.00% $133,050,878 $15,966,105 6.00% $7,983,053
23 2036 -2037 12.00% $136,377,150 $16,365,258 6.00% $8,182,629
24 2037 -2038 12.00% $139,786,579 $16,774,389 6.00% $8,387,195
25 2038 -2039 12.00% $143,281,243 $17,193,749 6.00% $8,596,875
$324,703,709 $229,122,990
Assumptions
Stable Rate Option = 12% for 25 years per NYS Budget Office (ERS)
Normal Contribution = NYS Executive Bud and Mgmt Plan Pg 24 - years after 2030 kept flat
Assumes an avg. 2.5% Salary Increase
Does not include adjustment allowed for poor performing pensions
a. first review after 5 years may bump rate 2%
b. second review after 10 years may bump rate by 2%
Unanswered questions - what is the minimum time commitment and what are the compound interest rates
calculated on repayment for leaving the plan?
calculated on repayment for leaving the plan?
General Employees Only - ERS - Salary Figures Provided by See Through NY
Annual Savings / (Loss)
$7,763,233
$4,790,628
$3,245,853
$1,791,461
$174,881 Stable Rate Pension Option - 1st period for increase up to 2%
$0
($1,378,006)
($1,977,438)
($2,895,535)
($3,858,300) Stable Rate Pension Option -2nd period for increase up to 2%
($4,157,565)
($4,573,322)
($5,113,805)
($6,006,058)
($6,380,071)
($6,769,032)
($7,055,855)
($7,232,252)
($7,413,058)
($7,598,384)
($7,788,344)
($7,983,053)
($8,182,629)
($8,387,195)
($8,596,875)
($95,580,719)
Stable Rate Option = 12% for 25 years per NYS Budget Office (ERS)
Normal Contribution = NYS Executive Bud and Mgmt Plan Pg 24 - years after 2030 kept flat
Does not include adjustment allowed for poor performing pensions
b. second review after 10 years may bump rate by 2%
Unanswered questions - what is the minimum time commitment and what are the compound interest rates
Analysis of Stable Rate Pension Option vs. Normal Contribution
General Employees Only - ERS
Year
Stable
Rate
Pension
Option Salaries Pension Invoice
Normal
Contribution Pension Invoice
1 2014 -2015 12.00% $79,216,668 $9,506,000 21.80% $17,269,234
2 2015 -2016 12.00% $81,197,085 $9,743,650 17.90% $14,534,278
3 2016 -2017 12.00% $83,227,012 $9,987,241 15.90% $13,233,095
4 2017 -2018 12.00% $85,307,687 $10,236,922 14.10% $12,028,384
5 2018 -2019 14.00% $87,440,379 $12,241,653 12.20% $10,667,726
6 2019 -2020 14.00% $89,626,389 $12,547,694 12.00% $10,755,167
7 2020 -2021 14.00% $91,867,048 $12,861,387 10.50% $9,646,040
8 2021 -2022 14.00% $94,163,725 $13,182,921 9.90% $9,322,209
9 2022 -2023 14.00% $96,517,818 $13,512,494 9.00% $8,686,604
10 2023 -2024 16.00% $98,930,763 $15,828,922 8.10% $8,013,392
11 2024 -2025 16.00% $101,404,032 $16,224,645 7.90% $8,010,919
12 2025 -2026 16.00% $103,939,133 $16,630,261 7.60% $7,899,374
13 2026 -2027 16.00% $106,537,611 $17,046,018 7.20% $7,670,708
14 2027 -2028 16.00% $109,201,052 $17,472,168 6.50% $7,098,068
15 2028 -2029 16.00% $111,931,078 $17,908,972 6.30% $7,051,658
16 2029 -2030 16.00% $114,729,355 $18,356,697 6.10% $6,998,491
17 2030 -2031 16.00% $117,597,589 $18,815,614 6.00% $7,055,855
18 2031 -2032 16.00% $120,537,529 $19,286,005 6.00% $7,232,252
19 2032 -2033 16.00% $123,550,967 $19,768,155 6.00% $7,413,058
20 2033 -2034 16.00% $126,639,741 $20,262,359 6.00% $7,598,384
21 2034 -2035 16.00% $129,805,735 $20,768,918 6.00% $7,788,344
22 2035 -2036 16.00% $133,050,878 $21,288,140 6.00% $7,983,053
23 2036 -2037 16.00% $136,377,150 $21,820,344 6.00% $8,182,629
24 2037 -2038 16.00% $139,786,579 $22,365,853 6.00% $8,387,195
25 2038 -2039 16.00% $143,281,243 $22,924,999 6.00% $8,596,875
$410,588,034 $229,122,990
Assumptions
Stable Rate Option = 12% for 25 years per NYS Budget Office (ERS)
Normal Contribution = NYS Executive Bud and Mgmt Plan Pg 24 - years after 2030 kept flat
Assumes an avg. 2.5% Salary Increase
Adjustments Included -
a. first review after 5 years may bump rate 2%
b. second review after 10 years may bump rate by 2%
Unanswered questions - what is the minimum time commitment and what are the compound interest rates
Fiscal Year
calculated on repayment for leaving the plan?
Annual Savings / (Loss)
$7,763,233
$4,790,628
$3,245,853
$1,791,461
($1,573,927) Stable Rate Pension Option - 1st period for increase up to 2%
($1,792,528)
($3,215,347)
($3,860,713)
($4,825,891)
($7,815,530) Stable Rate Pension Option -2nd period for increase up to 2%
($8,213,727)
($8,730,887)
($9,375,310)
($10,374,100)
($10,857,315)
($11,358,206)
($11,759,759)
($12,053,753)
($12,355,097)
($12,663,974)
($12,980,573)
($13,305,088) 181
($13,637,715) 250
($13,978,658) 431
($14,328,124)
($181,465,044)
Stable Rate Option = 12% for 25 years per NYS Budget Office (ERS)
Normal Contribution = NYS Executive Bud and Mgmt Plan Pg 24 - years after 2030 kept flat
b. second review after 10 years may bump rate by 2%
Unanswered questions - what is the minimum time commitment and what are the compound interest rates
Stable Rate Pension Option - 1st period for increase up to 2%
Stable Rate Pension Option -2nd period for increase up to 2%

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