Sarasota County, Florida Notes to Financial Statements September 30, 2021 Reserves have been established for both claims that have been reported but not paid and for claims incurred but not reported. Reserves for the risk management fund and the workers’ compensation fund are based on an actuarial valuation as of fiscal year-end, include allocated loss adjustment expenses and are recorded at present value at the expected confidence level. Reserves for general liability, automobile liability, employment practices and workers’ compensation are based on present value factors ranging from 0.931.00, 0.94-1.00, 0.93-1.00, and 0.73-0.89, respectively. Reserves for the medical benefits fund are based on industry standards of two months of current year claims expense. On October 1, 2018, the Sarasota County, Florida Sheriff (“Sheriff”) established its own liability program for risk management and workers’ compensation claims in accordance with applicable regulations. The Sheriff has the sole obligation and responsibility for funding the payment of claims occurring after September 30, 2018 as required under the law. Also, effective January 1, 2019, the Sheriff established their own plans that include risk management of general and automotive liability, employee group health insurance activities, and worker’ compensation. The Sheriff is insured under sovereign immunity up to a maximum of $200,000 per person/$300,000 per occurrence for claims against the Sheriff involving negligence, including automobile and general liability. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, can only be recovered through an act of the State of Florida Legislature. The Sheriff carries a fully insured workers’ compensation plan. Employee medical benefit claims exceeding $250,000 per covered participant are covered with unlimited excess insurance. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. Reconciliation of aggregate claims liabilities: Risk Medical Workers' Sheriff's Management Benefits Compensation Insurance Liability, October 1, 2019 $ 2,900,886 $ 5,326,661 $ 18,836,681 $ 65,825 Current year claims and changes in estimates 1,835,509 30,049,918 7,146,395 12,997,589 Claims and related expenses paid during the year (1,045,121) (32,182,259) (4,454,221) (11,579,358) Liability, September 30, 2020 $ 3,691,274 $ 3,194,320 $ 21,528,855 $ 1,484,056 Liability, October 1, 2020 $ 3,691,274 $ 3,194,320 $ 21,528,855 $ 1,484,056 Current year claims and changes in estimates 1,809,740 33,143,379 (717,924) 13,250,372 Claims and related expenses paid during the year (912,519) (33,616,699) (3,890,447) (13,491,448) Liability, September 30, 2021 $ 4,588,495 $ 2,721,000 $ 16,920,484 $ 1,242,980 Settled claims have not exceeded the commercial coverage in any of the past three fiscal years and there has not been a significant reduction in coverage from that of the previous fiscal year. NOTE 11. EMPLOYEE RETIREMENT PLANS Florida Retirement System Defined Benefit Pension Plan Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. 132
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