Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 NOTE 12. DEFERRED COMPENSATION PLAN Sarasota County offers its employees a deferred compensation plan created in accordance with the Internal Revenue Code Section 457. The plan, available to all County employees, permits the deferral of a portion of salary until future years. Participants may voluntary contribute any amount not to exceed the maximum contribution amounts set by the Internal Revenue Service. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. The 1996 Internal Revenue Service regulations require that all amounts of deferred compensation, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall be held for the exclusive benefit of plan participants and their beneficiaries. The County amended its plans for this provision and was in full compliance by the required January 1, 1999 implementation date. GASB Statement No. 32 guidance requires for reporting periods beginning after December 31, 1998 alternative financial reporting standards for entities meeting the new requirements of IRC Section 457. The alternative reporting requirement became relevant to the County's fiscal year 2000 financial statements. Under Statement No. 32, the County is no longer required to report its Section 457 plan subsequent to fiscal year 1999. NOTE 13. POST- EMPLOYMENT BENEFITS (OTHER THAN PENSIONS) Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions, requires governments to account for other post-employment benefits (OPEB) on an accrual basis, rather than on a pay-as-you-go basis. The effect is the recognition of an actuarially determined expense on the Statement of Activities when a future retiree earns their post-employment benefits, rather than when they use their post-employment benefit. The post-employment benefit liability is recognized on the Statement of Net Position over time. GASB Statement 74, Financial Reporting for Post-Employment Benefit Plans Other Than Pension Plans established financial reporting standards for state and local governmental OPEB plans - defined benefit OPEB plans and defined contribution OPEB plans - that are administered through trusts or equivalent arrangements (hereafter jointly referred to as trusts) in which: a. Contributions from employers to the OPEB plan and earnings on those contributions are irrevocable. b. OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms. c. OPEB plan assets are legally protected from the creditors of employers, nonemployer contributing entities, and the OPEB plan administrator. Background of OPEB plans Effective January 1, 2019, the Sheriff established a fully-insured group health plan intended to provide medical and prescription benefits to current and retired employees of the Sheriff. Prior to January 1, 2019, employees and retirees were covered under the County’s comprehensive health plan. The County administers a trust vehicle to pay post-employment benefits of County retirees. A trust vehicle to pay post- employment benefits of the Sheriff’s retirees had not been established as of fiscal year end. As such, benefits provided to Sheriff’s retirees are considered to constitute a separate unfunded OPEB plan. Separate OPEB disclosures are provided below for these distinct health plans for Sheriff and all other County retirees. 134