Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 The actuarial methods are: Actuarial cost method Entry Age Normal The actual assumptions are: Discount rate 2.75% (Based on 20-Year AA municipal bond rate) Inflation rate 2.50% Healthcare cost trend rate 7.06% decreasing to 6.25% in 2021 and thereafter Salary increase Salary increase rates used in the valuation of theJuly 1, 2018 actuarial valuation of the Florida Retirement System; 3.7%-7.8%, including inflation. Mortality tables used in the July 1, 2018 actuarial valuation of the Florida Retirement System. They are based on the results of a statewide experience study covering the period 2008 through 2013. The following changes have been made since the prior year valuation:  The discount rate was changed from 7.43% as of the beginning of the measurement period to 2.75% as of September 30, 2019.  Demographic assumptions were changed to those employed in the July 1, 2018 actuarial valuation of the Florida Retirement System (FRS) Defined Benefit Pension Plan. Assumptions change include rates of termination, retirement, disability, mortality and salary scale. This change increased the Total OPEB Liability.  Health coverage assumption changes include: o Changing age rating factors to those used in the study published (June 2013) in Health Care Costs – From Birth to Death sponsored by the Society of Actuaries and authored by Mr. Dale H. Yamamoto. o Changing the assumed healthcare cost trend to the Getzen model.  The Sheriff’s OPEB Plan was spun off of the pre-funded County Plan and a trust vehicle to pay post-employment benefits had not been established as of fiscal year end. As such, it is considered a new OPEB plan. Changes in the Net OPEB liability Balance, as of October 1, 2018 - $ Changes: Service cost 330,269 Interest 238,079 Changes of benefit terms 8,131,607 Changes in assumptions or other inputs 852,948 Employer contributions (347,354) Net changes 9,205,549 Balance, as of September 30, 2019 $ 9,205,549 139