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COMPREHENSIVE ANNUAL FINANCIAL REPORT
ESCAMBIA COUNTY, FLORIDA 
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) 
SEPTEMBER 30, 2011 
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NOTE 4 – OTHER INFORMATION 
The
Risk Management
program was established by the County to insure certain types of claims against the Board 
of County Commissioners, Constitutional Officers, and Santa Rosa Island Authority including losses related to theft, 
damage and destruction of assets; torts; errors and omissions; injuries to employees; and natural disasters.  The 
following are the types of risks and coverage: 
Workers Compensation – The County is covered for workers’ compensation claims through a policy with the Florida Municipal 
Insurance Trust.  Coverage limits under the policy include statutory limits, as well as $1,000,000 bodily injury for each accident and 
$1,000,000 bodily injury by disease for each employee with an aggregate $1,000,000 policy limit.  
Casualty and Property – Casualty limits are self‐insured for $200,000 per claim with a $300,000 aggregate limit.  Property limits are 
$50,000 ‐ $250,000 self insured retentions per occurrence with excess limits of $90 million including wind.     
The County currently reports all of its risk management activities, including claims liabilities, in the Internal Service 
Fund.  Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be 
reasonably estimated.  Liabilities on claims prior to June 9, 2008 include an amount for claims that have been 
incurred but not reported (IBNR).  The claims liabilities totaling $8,468,837 reported in the Internal Service Fund at 
September 30, 2011 are actuarially determined based on historical and current information regarding the Fund. 
Changes in the estimated liability for self‐insured losses for the past two years are as follows: 
2011
2010
Unpaid claims, beginning
$9,123,230
$11,066,262
Claims incurred and changes in estimates
2,426,072
1,248,260
Less:  claims paid
(3,080,465)
(3,191,292)
Unpaid claims, ending
8,468,837
9,123,230
Estimated claims due within one year
(2,859,611)
(2,630,959)
Estimated claims due longer than one year
$5,609,226
$6,492,271
Pension and Retirement Plan 
– Substantially all full‐time employees of the County are covered by the Florida 
Retirement System (FRS).  The FRS was established in 1970 by Chapter 121, Florida Statutes and is administered by 
the Florida Department of Management Services, Division of Retirement.  Changes to the FRS can be made only by 
an act of the Florida Legislature.  Rules governing the operation and administration of the system may be found in 
Chapter 60S of the Florida Administrative Code.  The FRS issues a publicly available financial report that includes 
financial statements and required supplementary information.  The report may be obtained by writing to FRS, 
2639‐C North Monroe Street, Tallahassee, Florida  32399‐1560. 
The FRS offers two retirement plans – the FRS Pension Plan and the FRS Investment Plan.  An employee may 
participate in only one of the plans. 
The FRS Pension Plan is a multiple employer cost sharing defined benefit plan which provides retirement and 
disability benefits, annual cost‐of‐living adjustments, and death benefits to plan members and beneficiaries.   
Employees hired before July 1, 2011 are vested after six (6) years of creditable service.  For those hired on or after 
July 1, 2011, vesting of benefits occurs after the completion of eight (8) years of creditable service.  The normal 
retirement date has also changed depending on hire date. 
Normal retirement benefits are available to employees hired before July 1, 2011, who retire at age 62 with six (6) 
or more years of service or after 30 years of creditable service, if under age 62.  For employees hired on or after 
July 1, 2011, normal retirement benefits are available at age 65 with eight (8) years of service, or after 33 years, if 
under age 65.  Retirement age and years of service requirements vary depending on membership class.  Early