Final Actuarial Audit Reports Submitted by Bolton Partners, Inc. – Administrative Review of Actuarial Data

Executive Summary

Bolton Partners, Inc. was retained by the New York City Comptroller’s Office to serve as Independent Actuary under Section 96 of the New York City Charter.  The engagement relates to the five pension funds that collectively comprise the New York City Retirement Systems (NYCRS), which are:

• 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 report summarizes our second Administrative Review.  This review did not constitute a full-scale audit of plan administration but was a broad review of administrative procedures and practices.  For example, we did not check individual benefit calculations.  The areas covered in the Administrative Review include:

• Processes for gathering, validating, and transmitting data for the actuarial valuations;
• Processes for performing retirement calculations and having them certified;
• Methods for participant communications;
• Procedures for maintaining security of confidential member information; and
• Status of implementation of recommendations from prior Administrative Reviews.

Due to the short amount of time between the First and Second Engagements, our process for the Second Engagement focused on gathering information about any changes in processes or procedures, determining which items identified in the First Engagement are still relevant, and determining if any new recommendations should be made.