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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2020 NOTE 13 - RETIREMENT PLAN - Continued Pension Plan - Continued July 1, 2011 and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. Contributions: The State of Florida establishes contribution rates for participating employers and employees in section 121.71 Florida Statutes. Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants, whereby members contribute 3% and employers pay a rate based upon each member's employment class. Classes and rates in effect at July 1, 2020 were: Regular class 10.00%, Special Risk 24.45%, Special Risk Administrative Support 35.84%, Senior Management 27.29%, DROP 16.98%, and Elected Official class 49.18%. Included in these rates is a health insurance subsidy of 1.66%. Employer contributions to the FRS are based on a percentage of covered payroll that has been actuarially determined as an amount, when combined with the 3% employee contributions, is expected to finance the cost of benefits earned by employees during the year with an additional amount to finance any unfunded accrued liability. The County's actuarial contribution to FRS under the Pension Plan for the year ended September 30, 2020, was $12,265,839. Employee contributions for September 30, 2020 were $2,153,645. Both employer and employee contributions were equal to 100% of the required contribution. Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of Resources Related to Pension Plan: At September 30, 2020, the Division of Retirement calculated the County's liability of $156,966,332 for the FRS plan for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The County's proportion of the net pension liability was based on a projection of the County's long-term share of contributions to the Pension Plan relative to the projected contributions of all participating 86