Sarasota County, Florida Notes to Financial Statements September 30, 2022 The $3,706,029 reported as deferred outflows related to pensions resulting from County contributions 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 a decrease (increase) in pension expense as follows: Actuarial Assumptions The total pension liability in the September 30, 2021 actuarial valuation was determined using the following actuarial assumptions applied to all periods included in the measurement: Discount Rate A single discount rate of 6.85% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 6.85%. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Description Deferred outflows of resources Deferred inflows of resources Net Difference Between Projected and Actual Earnings on Pension Plan Investments - $ 7,524,235 County Contributions Subsequent to the Measurement Date 3,706,029 - Total 3,706,029 $ 7,524,235 $ Year Ended September 30, Amount 2023 (1,441,869) $ 2024 (1,070,923) 2025 (2,181,257) 2026 (2,830,186) Actuarial cost method Entry Age Normal Amortization method Level Dollar, Closed Remaining amortization period 3 years beginning October 1, 2020 Asset valuation method 3-Year smoothed market Inflation 3.75% Salary increases 3.75% to 6.75% including inflation Investment rate of return 6.85% Retirement age Age and experience-based table of rates that are specific to the type of eligibility condition. Mortality The Florida Retirement System (FRS) mortality tables the fully generational RP-2000 Mortality Tables with projection scale BB 146
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