Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 Future Contributions: It is assumed that future contributions to the plan will be based on annual OPEB costs using an amortization factor of 7 years. The discount rate was based on the County’s expected rate of return on the assets held in the Florida Municipal Pension Trust Fund trust. Mortality rates were based on the RP-2000 mortality tables. Rates are those outlines in Milliman’s July 1, 2018 Florida Retirement System (FRS) valuation report. Sheriff’s Actuarial assumptions and other inputs Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Inflation Rate 2.50% Salary Increase Rate(s) 3.70% - 7.80% Discount Rate 2.41% Healthcare cost trend rate 7.06% Mortality tables used in the July 1, 2018 actuarial valuation of the Florida Retirement System. They are based on the results of a statewide experience study covering the period 2008 through 2013. Changes in the Net OPEB liability (asset) Sarasota County Sheriff Total OPEB Fiduciary Net Net OPEB Total OPEB Liability Position Liability (Asset) Liability Balance at September 30, 2019 $ 4,500,011 $ 7,407,096 $ (2,907,085) $ 9,205,549 Changes recognized for the measurement period: Service cost 40,830 - 40,830 566,526 Interest 310,585 - 310,585 261,758 Change in actuarial assumptions 98,034 - 98,034 (230,916) Employer contributions - 1,757,754 (1,757,754) (507,222) Net investment income - 473,655 (473,655) - Benefit payments (734,493) (1,757,754) 1,023,261 - Administrative expenses - (7,837) 7,837 - Net changes (285,044) 465,818 (750,862) 90,146 Balance at September 30, 2020 $ 4,214,967 $ 7,872,914 $ (3,657,947) $ 9,295,695 139