BUG #14411: Issue with using OFFSET

The following bug has been logged on the website:

Bug reference: 14411
Logged by: Jamie Koceniak
Email address: jkoceniak(at)mediamath(dot)com
PostgreSQL version: 9.4.6
Operating system: Linux
Description:

Query performance decreases as the OFFSET increases.

Bad Query:

SELECT t1.id, ( SELECT count ( * ) FROM site_list_sites t4 WHERE t1.id =
t4.site_list_id ) AS sites_count
FROM site_lists t1
WHERE t1.organization_id IN ( SELECT distinct organization_id FROM
user_permissions ( 2385 ))
ORDER BY t1.created_on DESC LIMIT 100 OFFSET 200;

With offset set to 100, query returns in 92ms

Query Plan (offset = 100):
https://explain.depesz.com/s/nnPd

offset = 200, query take 9.8 seconds
Query plan (offset=200)
https://explain.depesz.com/s/MQAS