Sarasota County, Florida Notes to Financial Statements September 30, 2021 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. Pension Liability Sensitivity The following presents the County’s proportionate share of the net pension liability for the City of Sarasota’s Firefighters pension 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 of one percentage point lower or one percentage point higher than the current discount rate. 1% Decrease in Current discount 1% Increase in Description discount rate rate discount rate City of Sarasota Firefighter's Pension Plan Discount Rate 5.85% 6.85% 7.85% County's Proportionate Share of Firefighters pension plan Net Pension Liability $ 26,810,774 $ 13,398,771 $ 2,193,004 The pensions plan’s fiduciary net position detailed information is available in a separately issued financial report. This report may be obtained through https://www.sarasotafl.gov/government/city-auditor-and-clerk/pensions/fire-pension. Summary of Defined Benefit Pension Plans The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County’s defined benefit pension plans are summarized below: Firefighter's Description FRS Plan HIS Plan Pension Plan Total Net Pension Liability $ 62,608,675 $ 78,779,442 $ 13,398,771 $ 154,786,888 Deferred Outflows of Resources Related to Pensions Deferred Inflows of Resources Related to Pensions 65,660,217 231,772,734 13,027,301 5,110,648 11,121,786 - 89,809,304 236,883,382 Pension Expense (677,782) 6,323,774 (4,645,286) 1,000,706 Net pension liabilities associated with the Florida Retirement System and Retiree Health Insurance Subsidy Program are liquidated in the individual fund to which the liability is directly associated. For the Firefighter’s Pension Plan, liabilities are liquidated in the emergency services special revenue fund, which captures public safety expenditures. 142
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