Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 Actuarial Assumptions The total pension liability in the September 30, 2019 actuarial valuation was determined using the following actuarial assumptions applied to all periods included in the measurement: Actuarial cost method Entry Age Normal Amortization method Level Dollar, Closed Remaining amortization period 4 years beginning October 1, 2019 Asset valuation method 3-Year smoothed market Inflation 33.00% Salary increases 3.75% to 6.75% including inflation Investment rate of return 6.85% Age and experience-based table of rates that are Retirement age specific to the type of eligibility condition. Mortality RP-2000 Mortality Table for males and females. A 2.5% load was used as a margin for future mortality improvements. Discount Rate A single discount rate of 6.85% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 6.85%. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Liability Sensitivity The following presents the County’s proportionate share of the net pension liability for the City of Sarasota’s Firefighters pension plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate of one percentage point lower or one percentage point higher than the current discount rate. Description 1% Decrease in discount rate Current discount rate 1% Increase in discount rate City of Sarasota Firefighter's Pension Plan Discount Rate 5.85% 6.85% 7.85% County's Proportionate Share of Firefighters pension plan Net Pension Liability $ 37,120,232 $ 21,780,930 $ 9,098,252 The pensions plan’s fiduciary net position detailed information is available in a separately issued financial report. This report may be obtained throug h http://sarasotagov.org/CAC/FFpension.cfm. 135