New York State Teachers' Retirement System, Albany, has issued an RFP for an independent actuary to evaluate a plan by Gov. Andrew Cuomo that would allow school districts to lock in steady annual contributions to the $90.9 billion pension fund, confirmed Heidi Brennan, a spokeswoman for the pension fund.
Mr. Cuomo made his proposal last month in his annual budget message. Because it would affect school districts and local governments, the proposal needs the approval of the teachers' pension system and state Comptroller Thomas DiNapoli, in his role as sole trustee of the $150.1 billion New York State Common Retirement Fund, Albany. The plan also must be passed by the state legislature.
“We are seeking an actuarial analysis of the New York governor's recently proposed long-term stable contribution option wherein the system's retirement board would be authorized to establish a flat 12.5% employer contribution rate, which system employers could opt to pay in lieu of paying the actuarially determined normal contribution rate plus administrative rate,” according to the RFP posted on the pension fund's website.
The RFP said the actuarial analysis has two goals: to determine if the flat-rate proposal is “actuarially sound” and to analyze various financial scenarios provided by the pension system.
Proposals are due by noon EST on Feb. 7; selection will be on Feb. 12, according to the RFP.
Applicants should send their proposals to Joe Romand, Purchasing Unit, New York State Teachers' Retirement' System, 10 Corporate Woods Drive, Albany, NY 12211-2395. The package containing the application must have a label that says: “This is a proposal to provide an actuarial study for the New York State Teachers' Retirement System. RFP # 13-14.”