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Syracuse Pension Smoothing

Syracuse Pension Smoothing

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Published by The Post-Standard
The city of Syracuse's projection of pension smoothing as proposed by Gov. Andrew Cuomo.
The city of Syracuse's projection of pension smoothing as proposed by Gov. Andrew Cuomo.

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Published by: The Post-Standard on Feb 25, 2013
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Analysis of Stable Rate Pension Option vs.

Normal Contribution
City of Syracuse
Pension Payments Pension Liability
Additional Cost to
the City
Pension Payments Pension Liability
Additional Cost
to the City
Employee Retirement System 158,538,700 111,870,800 46,667,900 200,472,302 111,870,803 88,601,499
Police and Fire Retirement System 475,357,200 397,440,900 77,916,300 556,913,300 397,440,900 159,472,400
Total 633,895,900 509,311,700 124,584,200 757,385,602 509,311,703 248,073,899
No rate increase at Plan Years 5 and 10 RATE increase at Plan Years 5 and 10
Analysis of Stable Rate Pension Option vs. Normal Contribution
City of Syracuse
No Rate Bump at Plan Year 5 and 10
Year Fiscal Year
Stable Rate
Pension
Option Salaries Pension Payment
Normal
Contribution Pension Invoice
Annual Savings /
(Loss)
1 2014 -2015 12.00% $38,678,058 $4,641,367 21.80% $8,431,817 $3,790,450
2 2015 -2016 12.00% $39,645,009 $4,757,401 17.90% $7,096,457 $2,339,056
3 2016 -2017 12.00% $40,636,135 $4,876,336 15.90% $6,461,145 $1,584,809
4 2017 -2018 12.00% $41,652,038 $4,998,245 14.10% $5,872,937 $874,693
5 2018 -2019 12.00% $42,693,339 $5,123,201 12.20% $5,208,587 $85,387
6 2019 -2020 12.00% $43,760,672 $5,251,281 12.00% $5,251,281 $0
7 2020 -2021 12.00% $44,854,689 $5,382,563 10.50% $4,709,742 ($672,820)
8 2021 -2022 12.00% $45,976,057 $5,517,127 9.90% $4,551,630 ($965,497)
9 2022 -2023 12.00% $47,125,458 $5,655,055 9.00% $4,241,291 ($1,413,764)
10 2023 -2024 12.00% $48,303,594 $5,796,431 8.10% $3,912,591 ($1,883,840)
11 2024 -2025 12.00% $49,511,184 $5,941,342 7.90% $3,911,384 ($2,029,959)
12 2025 -2026 12.00% $50,748,964 $6,089,876 7.60% $3,856,921 ($2,232,954)
13 2026 -2027 12.00% $52,017,688 $6,242,123 7.20% $3,745,274 ($2,496,849)
14 2027 -2028 12.00% $53,318,130 $6,398,176 6.50% $3,465,678 ($2,932,497)
15 2028 -2029 12.00% $54,651,083 $6,558,130 6.30% $3,443,018 ($3,115,112)
16 2029 -2030 12.00% $56,017,360 $6,722,083 6.10% $3,417,059 ($3,305,024)
17 2030 -2031 12.00% $57,417,794 $6,890,135 6.00% $3,445,068 ($3,445,068)
18 2031 -2032 12.00% $58,853,239 $7,062,389 6.00% $3,531,194 ($3,531,194)
19 2032 -2033 12.00% $60,324,570 $7,238,948 6.00% $3,619,474 ($3,619,474)
20 2033 -2034 12.00% $61,832,685 $7,419,922 6.00% $3,709,961 ($3,709,961)
21 2034 -2035 12.00% $63,378,502 $7,605,420 6.00% $3,802,710 ($3,802,710)
22 2035 -2036 12.00% $64,962,964 $7,795,556 6.00% $3,897,778 ($3,897,778)
23 2036 -2037 12.00% $66,587,038 $7,990,445 6.00% $3,995,222 ($3,995,222)
24 2037 -2038 12.00% $68,251,714 $8,190,206 6.00% $4,095,103 ($4,095,103)
25 2038 -2039 12.00% $69,958,007 $8,394,961 6.00% $4,197,480 ($4,197,480)
$158,538,717 $111,870,803 ($46,667,914)
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?
$8,674,394
($9,198,834)
Analysis of Stable Rate Pension Option vs. Normal Contribution
City of Syracuse
Rate Bump at Plan Year 5 and 10
Year
Stable
Rate
Pension
Option Salaries Pension Payment
Normal
Contribution Pension Invoice Annual Savings / (Loss)
1 2014 -2015 12.00% $38,678,058 $4,641,367 21.80% $8,431,817 $3,790,450
2 2015 -2016 12.00% $39,645,009 $4,757,401 17.90% $7,096,457 $2,339,056
3 2016 -2017 12.00% $40,636,135 $4,876,336 15.90% $6,461,145 $1,584,809
4 2017 -2018 12.00% $41,652,038 $4,998,245 14.10% $5,872,937 $874,693
5 2018 -2019 14.00% $42,693,339 $5,977,067 12.20% $5,208,587 ($768,480)
6 2019 -2020 14.00% $43,760,672 $6,126,494 12.00% $5,251,281 ($875,213)
7 2020 -2021 14.00% $44,854,689 $6,279,657 10.50% $4,709,742 ($1,569,914)
8 2021 -2022 14.00% $45,976,057 $6,436,648 9.90% $4,551,630 ($1,885,018)
9 2022 -2023 14.00% $47,125,458 $6,597,564 9.00% $4,241,291 ($2,356,273)
10 2023 -2024 16.00% $48,303,594 $7,728,575 8.10% $3,912,591 ($3,815,984)
11 2024 -2025 16.00% $49,511,184 $7,921,789 7.90% $3,911,384 ($4,010,406)
12 2025 -2026 16.00% $50,748,964 $8,119,834 7.60% $3,856,921 ($4,262,913)
13 2026 -2027 16.00% $52,017,688 $8,322,830 7.20% $3,745,274 ($4,577,557)
14 2027 -2028 16.00% $53,318,130 $8,530,901 6.50% $3,465,678 ($5,065,222)
15 2028 -2029 16.00% $54,651,083 $8,744,173 6.30% $3,443,018 ($5,301,155)
16 2029 -2030 16.00% $56,017,360 $8,962,778 6.10% $3,417,059 ($5,545,719)
17 2030 -2031 16.00% $57,417,794 $9,186,847 6.00% $3,445,068 ($5,741,779)
18 2031 -2032 16.00% $58,853,239 $9,416,518 6.00% $3,531,194 ($5,885,324)
19 2032 -2033 16.00% $60,324,570 $9,651,931 6.00% $3,619,474 ($6,032,457)
20 2033 -2034 16.00% $61,832,685 $9,893,230 6.00% $3,709,961 ($6,183,268)
21 2034 -2035 16.00% $63,378,502 $10,140,560 6.00% $3,802,710 ($6,337,850)
22 2035 -2036 16.00% $64,962,964 $10,394,074 6.00% $3,897,778 ($6,496,296)
23 2036 -2037 16.00% $66,587,038 $10,653,926 6.00% $3,995,222 ($6,658,704)
24 2037 -2038 16.00% $68,251,714 $10,920,274 6.00% $4,095,103 ($6,825,171)
25 2038 -2039 16.00% $69,958,007 $11,193,281 6.00% $4,197,480 ($6,995,801)
$200,472,302 $111,870,803 ($88,601,499)
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?
Fiscal Year
Stable Rate Pension Option - 1st period for increase up to 2%
Stable Rate Pension Option -2nd period for increase up to 2%
Analysis of Stable Rate Pension Option vs. Normal Contribution
City of Syracuse POLICE and FIRE
No Rate Bump at Plan Year 5 and 10
Year Fiscal Year
Stable Rate
Pension
Option Salaries Pension Payment
Normal
Contributi
on Pension Invoice Annual Savings / (Loss)
1 2014 -2015 18.50% $75,224,436 $13,916,521 28.80% $21,664,638 $7,748,117
2 2015 -2016 18.50% $77,105,047 $14,264,434 24.90% $19,199,157 $4,934,723
3 2016 -2017 18.50% $79,032,673 $14,621,045 22.90% $18,098,482 $3,477,438
4 2017 -2018 18.50% $81,008,490 $14,986,571 21.10% $17,092,791 $2,106,221 $19,273,282
5 2018 -2019 18.50% $83,033,702 $15,361,235 19.20% $15,942,471 $581,236
6 2019 -2020 18.50% $85,109,545 $15,745,266 19.00% $16,170,813 $425,548
7 2020 -2021 18.50% $87,237,283 $16,138,897 17.50% $15,266,525 ($872,373)
8 2021 -2022 18.50% $89,418,215 $16,542,370 16.90% $15,111,678 ($1,430,691)
9 2022 -2023 18.50% $91,653,671 $16,955,929 16.00% $14,664,587 ($2,291,342)
10 2023 -2024 18.50% $93,945,013 $17,379,827 15.10% $14,185,697 ($3,194,130) ($19,454,691)
11 2024 -2025 18.50% $96,293,638 $17,814,323 14.90% $14,347,752 ($3,466,571)
12 2025 -2026 18.50% $98,700,979 $18,259,681 14.60% $14,410,343 ($3,849,338)
13 2026 -2027 18.50% $101,168,503 $18,716,173 14.20% $14,365,927 ($4,350,246)
14 2027 -2028 18.50% $103,697,716 $19,184,077 13.50% $13,999,192 ($5,184,886)
15 2028 -2029 18.50% $106,290,159 $19,663,679 13.30% $14,136,591 ($5,527,088)
16 2029 -2030 18.50% $108,947,413 $20,155,271 13.10% $14,272,111 ($5,883,160)
17 2030 -2031 18.50% $111,671,098 $20,659,153 13.00% $14,517,243 ($6,141,910)
18 2031 -2032 18.50% $114,462,876 $21,175,632 13.00% $14,880,174 ($6,295,458)
19 2032 -2033 18.50% $117,324,447 $21,705,023 13.00% $15,252,178 ($6,452,845)
20 2033 -2034 18.50% $120,257,559 $22,247,648 13.00% $15,633,483 ($6,614,166)
21 2034 -2035 18.50% $123,263,998 $22,803,840 13.00% $16,024,320 ($6,779,520)
22 2035 -2036 18.50% $126,345,597 $23,373,936 13.00% $16,424,928 ($6,949,008)
23 2036 -2037 18.50% $129,504,237 $23,958,284 13.00% $16,835,551 ($7,122,733)
24 2037 -2038 18.50% $132,741,843 $24,557,241 13.00% $17,256,440 ($7,300,801)
25 2038 -2039 18.50% $136,060,389 $25,171,172 13.00% $17,687,851 ($7,483,321)
475,357,227 397,440,921 ($77,916,306)
Assumptions
Stable Rate Option = 18.5% for 25 years per NYS Budget Office (PFRS)
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?
Lowest Projected Rate for Police in 2014 is 28.8 %
Analysis of Stable Rate Pension Option vs. Normal Contribution
City of Syracuse POLICE and FIRE
Rate Bump at Plan Year 5 and 10
Year
Stable Rate
Pension
Option Salaries Pension Payment
Normal
Contribution Pension Invoice Annual Savings / (Loss)
1 2014 -2015 18.50% $75,224,436 $13,916,521 28.80% $21,664,638 $7,748,117
2 2015 -2016 18.50% $77,105,047 $14,264,434 24.90% $19,199,157 $4,934,723
3 2016 -2017 18.50% $79,032,673 $14,621,045 22.90% $18,098,482 $3,477,438
4 2017 -2018 18.50% $81,008,490 $14,986,571 21.10% $17,092,791 $2,106,221
5 2018 -2019 20.50% $83,033,702 $17,021,909 19.20% $15,942,471 ($1,079,438)
6 2019 -2020 20.50% $85,109,545 $17,447,457 19.00% $16,170,813 ($1,276,643)
7 2020 -2021 20.50% $87,237,283 $17,883,643 17.50% $15,266,525 ($2,617,118)
8 2021 -2022 20.50% $89,418,215 $18,330,734 16.90% $15,111,678 ($3,219,056)
9 2022 -2023 20.50% $91,653,671 $18,789,003 16.00% $14,664,587 ($4,124,415)
10 2023 -2024 22.50% $93,945,013 $21,137,628 15.10% $14,185,697 ($6,951,931)
11 2024 -2025 22.50% $96,293,638 $21,666,069 14.90% $14,347,752 ($7,318,316)
12 2025 -2026 22.50% $98,700,979 $22,207,720 14.60% $14,410,343 ($7,797,377)
13 2026 -2027 22.50% $101,168,503 $22,762,913 14.20% $14,365,927 ($8,396,986)
14 2027 -2028 22.50% $103,697,716 $23,331,986 13.50% $13,999,192 ($9,332,794)
15 2028 -2029 22.50% $106,290,159 $23,915,286 13.30% $14,136,591 ($9,778,695)
16 2029 -2030 22.50% $108,947,413 $24,513,168 13.10% $14,272,111 ($10,241,057)
17 2030 -2031 22.50% $111,671,098 $25,125,997 13.00% $14,517,243 ($10,608,754)
18 2031 -2032 22.50% $114,462,876 $25,754,147 13.00% $14,880,174 ($10,873,973)
19 2032 -2033 22.50% $117,324,447 $26,398,001 13.00% $15,252,178 ($11,145,823)
20 2033 -2034 22.50% $120,257,559 $27,057,951 13.00% $15,633,483 ($11,424,468)
21 2034 -2035 22.50% $123,263,998 $27,734,399 13.00% $16,024,320 ($11,710,080)
22 2035 -2036 22.50% $126,345,597 $28,427,759 13.00% $16,424,928 ($12,002,832)
23 2036 -2037 22.50% $129,504,237 $29,138,453 13.00% $16,835,551 ($12,302,903)
24 2037 -2038 22.50% $132,741,843 $29,866,915 13.00% $17,256,440 ($12,610,475)
25 2038 -2039 22.50% $136,060,389 $30,613,588 13.00% $17,687,851 ($12,925,737)
$556,913,294 $397,440,921 ($159,472,373)
Assumptions
Stable Rate Option = 18.5% for 25 years per NYS Budget Office (PFRS)
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?
Lowest Projected Rate for Police in 2014 is 28.8 %
Stable Rate Pension Option - 1st period for increase up to 2%
Stable Rate Pension Option -2nd period for increase up to 2%
Fiscal Year

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