Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 Summary of Defined Benefit Pension Plans The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County’s defined benefit pension plans are summarized below: Firefighter's Description FRS Plan HIS Plan Pension Plan Total Net Pension Liability $ 371,891,909 $ 77,385,702 $ 21,780,930 $ 471,058,541 Deferred Outflows of Resources Related to Pensions Deferred Inflows of Resources Related to Pensions 116,740,451 6,197,778 14,652,528 6,459,685 8,275,693 - 139,668,672 12,657,463 Pension Expense 78,630,472 6,767,711 3,259,964 88,658,147 Net pension liabilities associated with the Florida Retirement System and Retiree Health Insurance Subsidy Program are liquidated in the individual fund to which the liability is directly associated. For the Firefighter’s Pension Plan, liabilities are liquidated in the emergency services special revenue fund, which captures public safety expenditures. NOTE 12. DEFERRED COMPENSATION PLAN Sarasota County offers its employees the Internal Revenue Code (IRC) Section 457(b) Deferred Compensation Plan in accordance with the IRC Section 457(b). Sarasota County is an eligible employer as defined in Code 457(e)(1)(A). Sarasota County offers Roth 457(b) accounts within the 457(b) plan. Both plans, available to all County employees, permit the deferral of a portion of salary until future years. Participants may voluntarily contribute any amount not to exceed the maximum contribution amounts set by the Internal Revenue Service. There are significant tax advantages for participants in a Roth 457(b) plan, such as: contribution to a Roth 457(b) plan and earnings on the retirement money are tax-deferred. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The global health crisis - COVID-19 represents one type of an unforeseeable emergency. Section 2203 of The CARES Act provides tax-favored withdrawals from Retirement Plans. As per CARES Act guidelines, Sarasota County offered a Coronavirus-related distribution from the Plan in 2020 to participants who have been impacted by COVID-19 and otherwise may not be eligible for a distribution under the terms of the Plan. The 1996 Internal Revenue Service regulations require that all amounts of deferred compensation, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall be held for the exclusive benefit of plan participants and their beneficiaries. The County amended its plans for this provision and was in full compliance by the required January 1, 1999 implementation date. GASB Statement No. 32 guidance requires for reporting periods beginning after December 31, 1998 alternative financial reporting standards for entities meeting the new requirements of IRC Section 457. The alternative reporting requirement became relevant to the County's fiscal year 2000 financial statements. Under GASB Statement No. 32, the County is no longer required to report its Section 457 plan subsequent to fiscal year 1999. NOTE 13. POST-EMPLOYMENT BENEFITS (OTHER THAN PENSIONS) Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions, requires governments to account for other post-employment benefits (OPEB) on an accrual basis, rather than on a pay-as-you-go basis. The effect is the recognition of an actuarially determined expense on the Statement of Activities when a future retiree earns their post-employment benefits, rather than when they use their post-employment benefit. The post-employment benefit liability is recognized on the Statement of Net Position over time. 136