New York state Comptroller Thomas P. DiNapoli announced on Tuesday a drop in employer contribution rates for the state's two retirement systems beginning April 1 thanks in part to strong investment returns, confirmed spokesman Eric Sumberg.
Mr. DiNapoli is the sole trustee of the $158.7 billion New York State Common Retirement Fund, Albany, which oversees the assets of the New York State and Local Retirement System, which comprises two pension funds.
The contribution rate of the Employee Retirement System drops to 20.1% from 20.9% and the Police and Fire Retirement System drops to 27.6% from 28.9%.
The decrease in employer contribution rates is attributed to the two pension funds' strong returns over the past four years, along with a revision in actuarial smoothing.
The decrease comes as a result of recommendations to change actuarial methods by the retirement system's actuarial consultant, Buck Consultants.
The retirement system returned 10.38% in the fiscal year ended March 31.