Final Actuarial Audit Reports Submitted by Bolton Partners, Inc. – Actuarial Audit of Employer Contributions for Fiscal Year 2018 (2016 lag valuation)

Executive Summary

Bolton Partners, Inc. was hired by the New York City Comptroller’s Office to perform an actuarial audit of the following five New York City Retirement Systems:

• New York City Employees’ Retirement System (NYCERS);
• Teachers’ Retirement System of the City of New York (TRS);
• Board of Education Retirement System of the City of New York (BERS);
• New York City Police Pension Fund (POLICE);
• New York City Fire Pension Fund (FIRE).

This is Bolton Partners’ report covering our full replication actuarial audit of the 2016 valuations.  The primary purpose of the full replication work (which includes mathematical modeling and sample life analysis) is to validate the results, with emphasis on the actuarial liabilities, assets, and required contributions, of the June 30, 2016 actuarial valuations for the plans which determined the City’s contribution needs for FY 2018.  We have finished our review of the five plans and we have closely matched the Office of the Actuary’s (OA or Actuary) results based on their assumptions and methods.  Many of our comments relate to (1) questioning some of the methods used, (2) items that were corrected after our first engagement or (3) minor refinements in the valuation of the benefits.

We also were asked to determine whether the actuarial valuation methods, assumptions and procedures used by the OA are reasonable and consistent with all applicable laws, Board policies, and generally accepted actuarial principles and practices.  Methods and assumptions are appropriate for the plan structure and funding objectives and are applied as stated by the OA.