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Office of the New York State Comptroller’s Seal

NYS Comptroller

Thomas P. DiNapoli

Contribution Stabilization Program

Calculating the Maximum Amount Eligible for Amortization

First, the System’s Actuary determines the System’s average and graded rates.

For fiscal year 2018:

  • The average rate is 15.3 percent for ERS (including 0.4 percent GLIP) and 24.4 percent for PFRS (including 0.1 percent GLIP).
  • The graded rate is 14.9 percent for ERS and 24.3 percent for PFRS.

For fiscal year 2019:

  • The average rate is 14.9 percent for ERS (including 0.5 percent GLIP) and 23.5 percent for PFRS (including 0.0 percent GLIP).
  • The graded rate is 14.4 percent for ERS and 23.5 percent for PFRS.

Then, the Actuary:

  1. Determines the employer’s normal contribution

    Subtracts the value of Group Term Life Insurance (GTLI) from employer’s invoiced contribution (not including payments for deficiency, previous amortizations, incentive costs or prior year’s adjustments).

  2. Determines the employer’s average rate

    Divides the normal contribution by the projected salary.

  3. Determines the employer’s graded rate

    Multiplies the System graded rate by the ratio of the employer’s average rate divided by the System’s average rate (not to exceed the System graded rate).

  4. Determines the employer’s graded contribution

    Multiplies the employer’s projected salary by the employer’s graded rate.

  5. Determines the maximum amortization amount

    Subtracts the employer’s graded contribution from the normal contribution.

Example of Amortization Calculation (For Fiscal Year 2019)

Employer’s projected salary $100,000,000
Employer’s normal annual contribution (invoiced contribution based on retirement plans offered and normal contribution rates minus the value of GTLI) 14,400,000*
Employer’s average rate (employer’s normal contribution divided by employer’s projected salary) 14.4%
Employer’s graded rate (System graded rate multiplied by the ratio of the employer’s average rate divided by the System’s average rate, not to exceed the System graded rate) 14.4%
Employer’s graded contribution (employer’s projected salary multiplied by employer’s graded rate) 14,400,000
Maximum amortization amount (difference between the employer’s normal contribution and graded contribution) 0

*Does not include payments for deficiencies, previous amortizations, incentive costs and prior year’s adjustments.

(Rev. 10/17)