Sarasota County, Florida Notes to Financial Statements September 30, 2024 The valuation assumes a discount rate of 7.00% per annum, compounded annually, net of investment expenses. All mortality rates were based on the Pub-2010 mortality tables with fully generational improvement using Scale MP-2018. Rates are based on those outlined in Milliman’s July 1, 2023 Florida Retirement System (FRS) valuation report. Sheriff’s Actuarial assumptions and other inputs Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Mortality rates are the same as used in the July 1, 2023 actuarial valuation of the Florida Retirement system for non-K-12 Instructional Regular Class and Special Risk Class members. These rates were taken from adjusted Pub-2010 mortality tables published by the Society of Actuaries with generational mortality improvements using Scale MP-2018. Adjustments to referenced tables are based on the results of a statewide experience study covering the period 2013 through 2018. Changes in the Net OPEB liability (asset) Inflation Rate 2.50% Salary Increase Rate(s) 3.40% - 7.80% Discount Rate 3.81% Healthcare cost trend rate 6.50% Sheriff Total OPEB Fiduciary Net Net OPEB Total OPEB Liability Position Liability (Asset) Liability (a) (b) (a) - (b) Balance at September 30, 2023 $ 5,308,501 $ 6,614,503 $ (1,306,002) $ 12,302,216 Changes recognized for the measurement period: Service cost 58,783 - 58,783 455,023 Interest 338,670 - 338,670 568,851 Difference between expected and actual experience Experience - - - - Changes in assumptions - - - 772,374 Changes of benefit terms - - - - Net investment income - 1,195,608 (1,195,608) - Net Benefit payments (1,058,327) - (1,058,327) (942,088) Net changes (660,874) 1,195,608 (1,856,482) 854,160 Balance at September 30, 2024 $ 4,647,627 $ 7,810,111 $ (3,162,484) $ 13,156,376 Sarasota County 154
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