Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 Reconciliation of aggregate claims liabilities: Risk Management Medical Benefits Workers' Compensation Sheriff’s Insurance Liability, October 1, 2017 $ 2,600,678 $ 4,500,000 $ 14,950,999 $ - Current year claims and changes in estimates 1,826,946 48,281,791 8,439,718 - Claims and related expenses paid during the year (1,720,081) (46,925,440) (5,012,930) - Liability, September 30, 2018 $ 2,707,543 $ 5,856,351 $ 18,377,787 $ - Liability, October 1, 2018 $ 2,707,543 $ 5,856,351 $ 18,377,787 $ - Current year claims and changes in estimates 1,880,309 39,082,241 6,047,270 9,795,313 Claims and related expenses paid during the year (1,686,966) (39,611,931) (5,588,376) (9,729,488) Liability, September 30, 2019 $ 2,900,886 $ 5,326,661 $ 18,836,681 $ 65,825 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. Essentially all regular employees of the County are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site ( www.dms.myflorida.com) . The County’s pension expense totaled $82,539,055 for the FRS Pension Plan, the HIS Plan and the City of Sarasota’s Firefighters pension plan for the year ended September 30, 2019. 123