For additional terms and descriptions, refer to the Governmental Accounting Standards Board (GASB) website.

Deferred Inflows

An acquisition of net assets by the government, which is applicable to a future reporting period. It has a negative effect on net position, like liabilities.

Deferred Outflows

A consumption of net assets by the government, which is applicable to a future reporting period. It has a positive effect on net position, like assets.

Discount Rate

Per GASB Statement No. 67, a blended or single rate (expressed as a percentage), which reflects (1) the long-term expected rate of return on pension plan investments to the extent (a) this rate will support projected benefit payments of the plan, and, (b) assets will be invested using the current allocation target to achieve that return, and (2) for the period of benefit payments not supported, will incorporate an index rate for 20-year-tax-exempt municipal bonds. The assumptions used for GASB are the same as the assumptions used in the annual actuarial valuation, including a 5.9% discount rate. For more information, refer to the 2024 Actuarial Assumptions report.

Employer’s Contribution

The amount reflects an employer’s regular pension contribution, including Group Life Insurance Plan (GLIP). It does not include payments made for Adjustments, Amortizations or Incentives; these amounts were recorded when the amounts were initially due.

Employer Allocation Percentage or Proportionate Share

A measure of an employer’s relative share of a cost-sharing pension plan as compared to all employers of the plan. Allocation percentages are calculated as the employer's Indexed Present Value of Future Compensation (IPVFC) divided by the pension plan’s IPVFC. It is equal to the percentage of the Net Pension Liability (NPL) allocated to the employer.

Indexed Present Value of Future Compensation (IPVFC)

An estimate of all the earnings to be paid to current employees over their career, reflecting the relative cost of the plan benefits provided by the employer for the employee.

Measurement Date

The date when the Net Pension Liability is measured. For NYSLRS, the measurement date is March 31 annually.

Net Pension Liability (NPL)

The difference between the pension plan’s Total Pension Liability (based on actuarial valuations) and Fiduciary Net Position. An employer’s NPL is calculated by multiplying the Employer Allocation Percentage and the Pension Plan’s NPL.

Pension Expense

Changes in the Net Pension Liability, recognized in the current reporting period. There are some exceptions, including changes due to differences between expected and actual experience, changes in economic and demographic assumptions, and the difference between projected and actual earnings on pension plan investments.

Pension Plan’s Fiduciary Net Position

The pension plan’s net assets available to pay benefits, stated at fair value as of March 31 annually.

Total Pension Liability (TPL)

The actuarial present value of benefit payments (current and future) that is attributed to service already accrued by NYSLRS' members, as determined under the Entry Age Actuarial Cost Method.

Rev. 9/25