Sarasota County, Florida Notes to Financial Statements September 30, 2022 $1,023,892 reported as deferred outflows of resources related to pensions resulting from County contributions to the FRS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows: Actuarial Assumptions The total pension liability in the July 1, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2018. The HIS program is funded on a pay as you go basis and no experience study has been completed for the program. Thus, the above actuarial assumptions that determine the total pension liability as of June 30, 2022 were based on certain results of an actuarial experience study of the FRS for the period of July 1, 2013 – June 30, 2018. Discount Rate The discount rate used to measure the total pension liability was 3.54% for the HIS Plan. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Liability Sensitivity The following presents the County’s proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Year Ended September 30 Amount 2023 (1,083,648) $ 2024 (586,976) 2025 (270,912) 2026 (586,976) 2027 (1,354,559) Thereafter (632,129) Inflation 2.40% Per year Salary Increases 3.25%, Average, Including inflation Investment Rate of Return 3.54%, Net of investment expense, Including inflation Description 1% Decrease in discount rate Current discount rate 1% Increase in discount rate HIS Plan Discount Rate 2.54% 3.54% 4.54% County's Proportionate Share of HIS Plan Net Pension Liability 77,987,746 $ $ 68,166,215 60,039,100 $ 143
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