Sarasota County Comprehensive Annual Financial Report 2019

2019 Total OPEB Liability Changes for the Year: Service Cost 330,269 $ Interest 238,079 Changes of Benefit Term 8,131,607 Changes in Assumptions and Other Inputs 852,948 Benefit Payments (347,354) Net Change in Total OPEB Liability 9,205,549 Total OPEB Liability - Beginning - Total OPEB Liability - Ending (a) 9,205,549 $ Covered payroll 56,692,000 $ Total OPEB liability as a percentage of covered payroll 16.24% Notes to Schedule: Assumption Changes: The assumed healthcare cost trend was changed to the Getzen model. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. Note: 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. Furthermore, it was determined that assets accumulating in the trust vehicle administered by the County are not available to pay post- employment benefits of the Sheriff’s retirees. As such, benefits provided to Sheriff’s retirees are considered to constitute a separate unfunded OPEB plan. Sarasota County, Florida Schedule of Changes in the Sheriff's Net OPEB Liability and Related Ratios For the Year Ended September 30, 2019 The discount rate was changed from 7.43%, as of the beginning of the measurement period, to 2.75% as of September 30, 2019 (based on the Long-Term Municipal Bond rate). Demographic assumptions were changed to those employed in the July 1, 2018 actuarial valuation of the Florida Retirement System (FRS) Defined Benefit Pension Plan. The assumptions changed include rates of termination, retirement, disability, mortality and salary scale. Age rating factors changed 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. 147