Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 Costs At September 30, 2020, the County reported a liability of $77,385,702 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The County’s proportion of the net pension liability was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020, relative to the total employer contributions received from all participating employers. At June 30, 2020, the County’s proportion was 0.6338%, which was a decrease of 0.0098% from its proportion of 0.6436% measured as of June 30, 2019. For the year ended September 30, 2020, the County recognized pension expense of $6,767,711 for its proportionate share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and deferred inflows of resources from the following sources: Deferred outflows of Deferred inflows of Description resources resources Differences Between Expected and Actual Economic Experience $ 3,165,546 $ 59,699 Changes in Actuarial Assumptions 8,321,167 4,499,677 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 61,785 - Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 2,201,358 1,900,309 County Contributions Subsequent to the Measurement Date 902,672 - Total $ 14,652,528 $ 6,459,685 $902,672 reported as deferred outflows of resources related to pensions resulting from County contributions to the FRS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows: Year Ended September 30 Amount 2021 $ 2,361,490 2022 1,746,123 2023 472,810 2024 724,991 2025 1,163,804 Thereafter $ 820,953 Actuarial Assumptions The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% Per year Salary Increases 3.25% Average, Including inflation Investment Rate of Return 2.21% Net of investment expense, Including inflation 131