Page 35 - RFCUNY Annual Report 2016

(4) Pension and Other Retirement Benefits
Eligible employees of the Foundation and certain project personnel are covered under a defined-contribu-
tion pension plan established with Teachers Insurance and Annuity Association (TIAA). The Foundation’s
contribution to the pension plan is based on specified percentages, ranging from 8% to 14%, of each
employee’s annual salary. Total pension expense for the years ended June 30, 2016 and 2015 was
approximately $8,700,000 and $9,100,000 respectively. There are no unfunded past service costs.
In addition to providing pension benefits, the Foundation also provides postemployment benefits,
including salary continuance, to certain employees. The cost of these benefits is accrued over the
employees’ years of service. Postemployment benefits liability included in accounts payable and accrued
expenses was $2,652,774 and $2,443,587 in 2016 and 2015, respectively.
The Foundation also provides certain healthcare benefits to retired employees (including eligible
dependents) who have a combination of age and years of service equal to 70 with a minimum age of
62 and at least 10 years of continuous service. The Foundation accounts for postretirement medical and
other nonpension benefits provided to retirees on an accrual basis during the period of their employment.
The Foundation charges grants and contracts, as well as the administrative services department for
postretirement benefit costs through the application of a fringe benefit rate, an element of which is based
upon the estimated amount of such costs. In addition, a charge or credit is recognized in administrative
services expenses for the difference between the actuarially determined net periodic postretirement
benefit cost and the amount funded (claims paid and contributions to the trust).
Information with respect to the postretirement plan is as follows:

2016 2015
Change in benefit obligation:
Benefit obligation at beginning of year $128,313,421 114,488,925
Service cost 4,422,423 4,116,500
Interest cost 5,491,728 4,726,235
Actuarial loss 2,745,648 8,993,316
Benefits paid and administrative expenses (4,150,163) (4,011,555)
Benefit obligation at end of year 136,823,057 128,313,421
Change in plan assets:
Fair value of plan assets at beginning of year 127,687,568 114,906,865
Actual (loss) return on plan assets (2,684,777) 2,530,440
Employer contributions 15,247,163 14,261,818
Benefits paid and administrative expenses (4,150,163) (4,011,555)
Fair value of plan assets at end of year 136,099,791 127,687,568
Funded status, recorded as a liability in the accompanying
consolidated balance sheets $ 723,266 625,853

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