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Indian River County, Florida Supervisor of Elections Notes To Financial Statements Year Ended September 30, 2017 NOTE 3 — PENSION PLAN - Continued Florida Retirement System - Continued Sensitivity of the Supervisor of Election's Proportionate Share of the Net Position Liability to Changes in the Discount Rate for the Pension Plan: The following presents the Supervisor of Elections' proportionate share of the net pension liability (NPL) of the Pension Plan calculated using the discount rate of 7.10%. Also presented is what the Supervisor of Elections' proportionate share of the FRS plan NPL would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate: 1% Decrease Current Discount 1% Increase (6.10%) Rate (7.10%) (8.10%) Supervisor of Elections's proportionate share of NPL $ 1,443,181 $ 797,364 $ 261,188 Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay- as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 - Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the Supervisor of Elections's Proportionate Share of the Net Position Liability to Changes in the Discount Rate for the HIS Program: The following presents the Supervisor of Elections' proportionate share of the NPL of the HIS Program calculated using the discount rate of 3.58%. Also presented is what the Supervisor of Election's proportionate share of the HIS Program NPL would be if it were calculated using a discount rate that is 1 % lower or 1 % higher than the current rate: 1 % Decrease Current Discount I% Increase (2.58%) Rate (3.58%) (4.58%) Supervisor of Election's proportionate share of NPL $ 204,346 $ 179,073 $ 158,022 Refer to the County -wide note for actuarial assumptions (including the investment rate of return), pension liability on financial statements, and an explanation of pension expense components. The pension liability is not reported in the financial statements of the Supervisor of Elections since they are not payable from available spendable resources. It is reported in the financial statements of the County by the fund which normally pays the personnel service costs of the employee. k: