Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 Actuarial assumptions and other inputs The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Future Contributions: It is assumed that future contributions to the County’s Plan will be based on annual OPEB costs using an amortization factor of 7 years. The discount rate was based on the County’s expected rate of return on the assets held in the Florida Municipal Pension Trust Fund trust. Mortality rates were based on the RP-2000 mortality tables. Rates are those outlines in Milliman’s July 1, 2018 Florida Retirement System (FRS) valuation report. Changes in the Net OPEB liability Changes of benefit terms as reported in the table above reflects the amount of the liability associated with the separation and establishment of the Sheriff’s Plan from the County’s Plan effective January 1, 2019. Inflation Rate 2.50% Salary Increase Rate(s) Varies by service Discount Rate 7.43% Initial Trend Rate 7.50% Ultimate Trend Rate 4.00% Years to Ultimate 55 Investment Rate of Return 7.43% Plan Total OPEB Fiduciary Net Net OPEB Liability Position Liability (Asset) (a) (b) (a) - (b) Balances at 10/01/2018 6,370,553 $ 7,005,933 $ (635,380) $ Changes for the Year: Service Cost 135,765 - 135,765 Interest 303,173 - 303,173 Difference between expected and actual Experience 1,058,366 - 1,058,366 Change in Actuarial Assumptions 1,049,022 - 1,049,022 Changes of Benefit Terms (4,069,094) - (4,069,094) Contributions - Employer - 2,659,286 (2,659,286) Net Investment Income - 408,666 (408,666) Benefit Payments (347,774) (2,659,286) 2,311,512 Administrative Expenses - (7,503) 7,503 Net Changes (1,870,542) 401,163 (2,271,705) Balance at 09/30/2019 4,500,011 $ 7,407,096 $ (2,907,085) $ 136