COVSF: $252M vs. $285M

The NYCERS actuary submitted a proposed resolution at the NYCERS Board Meeting last Thursday, November 9, 2017. It was for the transfer of $252M from NYCERS to the COVSF (Correction Officers Variable Supplements Fund) for FY-2017. The trustees adopted the resolution.

The NYC Financial statement for FY-2017 stated that $285M was transferred from NYCERS to the COVSF as of June 30, 2017.

Why the difference? Maybe the $285M was an accrual number and subsequently the actuary came up with a more accurate number. But we sure would love to see the actuary's final calculation. Even today, $33M is a significant amount of money.

COVSF Benefit Payment for December 2017

The NYCERS Board had their October Regular Meeting last Thursday, October 12, 2017.

For over 50 minutes the trustees were treated to a song and dance by the IT director on the delayed two and half year old legacy upgrade project.

In contrast, over a two minute period the representative of the NYCERS Actuary, Sherry Chan, presented the trustees with Ms. Chan's FY-2017 financial and accounting report for the five city pension funds. Ms. Chan was not present. No questions were asked.

On a positive note, the NYCERS's closing balance increased from $55.49B to $61.32B during FY-2017. NYCERS was able to transfer $285.77M into the Correction Officers' Variable Supplements Fund (COVSF) in FY-2017. Of course, it would be very informative if the actuary would provide the details of the calculation of how she arrived at the $285.77M figure.

FYI: As of July 1, 2017 the COVSF Board is responsible for investing $288M. I hope someone told them to get busy.

Now the big question is will there be a payment this December for the COVSF service retirees. Below is the COVSF payment history for the last five years. It looks very promising. Last year, 2016, there was no December payment.

COVSF History 2013-2016

Year	Open Balance	Interest Earned	"Skim"	Payments	Close Balance
FY-2013:	$35.925M	$0.038M	$0.000M	$0.000M	$35.963M
FY-2014:	$35.963M	$0.020M	$190.000M	$38.014M	$187.969M
FY-2015:	$187.969M	$0.010M	$30.012M	$78.285M	$139.706M
FY-2016	$139.706M	$0.184M	-$52.7240M	$82.149M	$5.017M
FY-2017	$5.017M	$0.300M	$285.924M	$2.624M	$288.165M
FY-2018	$288.165M

Note: The $82.149M paid in FY-2016 (July 2015 - June 2016) represents payments made in December 2015

Correction Officer VSF (COVSF) Payment for 2016

The NYCERS Board had their November Regular Meeting last Thursday. In the last 5 minutes of a two hour long meeting the actuary's representative dropped a bomb on the retired Correction Officers. They were not going to get their VSF payment this year.

Last Saturday my blog got inundated with hits, almost a thousand inquiries on my most recent posting on NYCERS's poor investment performance in FY-2016. Guess who gets hammered when NYCERS trustees screw up? Not the trustees but the retired Correction Officers.

Also something funny happened in FY-2016. NYCERS clawed back $52.724M from the COVSF. You can see in my previous posting the regular "skim" to the COVSF for the last six years.

COVSF History 2013-2016

Year	Open Balance	Interest Earned	"Skim"	Payments	Close Balance
FY-2013:	$35.925M	$0.038M	$0.000M	$0.000M	$35.963M
FY-2014:	$35.963M	$0.020M	$190.000M	$38.014M	$187.969M
FY-2015:	$187.969M	$0.010M	$30.012M	$78.285M	$139.706M
FY-2016	$139.706M	$0.184M	-$52.7240M	$82.149M	$5.017M
FY-2017