Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 The Fund provides death benefits for both duty related and non-duty related deaths. Effective April 7, 2003, death caused by performance of duties is computed at two-thirds of 3.0% of average compensation multiplied by years of service (minimum 25 years) plus 5% of the firefighter’s last monthly salary for each eligible child. The pension paid to a surviving spouse of a firefighter that died in the line of duty prior to April 7, 2003, shall, at all times, be equal to at least one-third of the base salary for a journeyman fire top step. A not in line duty death is computed at two-thirds of 2.5% of average compensation multiplied by years of service plus 5% of the firefighter’s last monthly salary for each eligible child, and must be a minimum of their accrued benefit. Contributions Participants are required to contribute 8% of their annual salary to the Fund. Other contributions are received from the State of Florida, the City of Sarasota and Sarasota County. The City of Sarasota and Sarasota County contribute amounts to make the Fund actuarially sound. The State of Florida contribution results from the City’s share of insurance tax under Chapter 175. Sarasota County is required to contribute an actuarially determined rate, designed to accumulate sufficient assets to pay benefits when due. Under the terms of an interlocal agreement between the County and the City of Sarasota, the County is required to pay $1,700,000 of the first $2,200,000 of the total annual required contribution (ARC). Anything in excess of $2,200,000 is paid 35% by the City and 65% by the County. The County's contribution to the Plan for the year ending September 30, 2020 was $6,297,864. Pension Costs At September 30, 2020 the County reported a liability of $21,780,930 for its proportionate share of the City of Sarasota Firefighter’s Pension Plan’s net pension liability. The net pension liability was measured as of December 29, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of September 30, 2019. The County’s proportion of the net pension liability is 67%. For the year ended September 30, 2020, the County recognized pension expense of $3,259,964 for its proportionate share of the City of Sarasota Firefighter’s Pension Plan expense. In addition, the County reported its proportionate share of deferred outflows of resources and deferred inflows of resources from the following sources: Description Net Difference Between Projected and Actual Earnings on Pension Plan Investments $ Deferred outflows of resources 1,632,528 County Contributions Subsequent to the Measurement Date Total $ 6,643,165 8,275,693 The $6,643,165 reported as deferred outflows related to pensions resulting from County contributions 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 a decrease in pension expense as follows: Year Ended September 30, Amount 2021 $ (319,790) 2022 102,594 2023 739,389 2024 1,110,335 134