Sarasota County, Florida Notes to Financial Statements September 30, 2021 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: Inflation Rate 2.25% Salary Increase Rate(s) 3.40% - 7.80% Discount Rate 2.19% Healthcare cost trend rate 6.25% Mortality rates are the same as used in the July 1, 2020 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) Sarasota County Sheriff Total OPEB Fiduciary Net Net OPEB Total OPEB Liability Position Liability (Asset) Liability Balance at September 30, 2020 $ 4,214,967 $ 7,872,914 $ (3,657,947) $ 9,295,695 Changes recognized for the measurement period: Service cost 45,970 - 45,970 643,861 Interest 340,622 - 340,622 231,221 Experience 1,003,823 - 1,003,823 2,855,932 Change in actuarial assumptions (408,930) - (408,930) (540,770) Employer contributions - 1,328,866 (1,328,865) - Net investment income - 1,282,289 (1,282,289) - Benefit payments (797,450) (1,328,866) 531,416 (690,670) Administrative expenses - (9,117) 9,117 - Net changes 184,035 1,273,172 (1,089,136) 2,499,574 Balance at September 30, 2021 $ 4,399,002 $ 9,146,086 $ (4,747,083) $ 11,795,269 Sensitivity of the total Net OPEB liability (asset) to changes in the discount rate The following presents the Net OPEB Liability (Asset) of the County, as well as what the County’s Net OPEB Liability (Asset) would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current discount rate. 1% Decrease Baseline 7.00% 1% Increase Net OPEB Liability/(Asset) $ Discount Rate 146 (4,423,380) $ (4,747,083) $ (4,955,487)
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