PERS board approves Mississippi retirement system changes with 9 to 1 vote

A significant shift in Mississippi's retirement system was discussed during a recent government meeting, focusing on the proposed changes to the Public Employees' Retirement System (PERS). The meeting highlighted a new plan that aims to balance defined benefit and defined contribution components for state employees, ensuring that military service credits are respected while modernizing the retirement framework.

The proposed structure includes a defined benefit portion calculated at 1% of the average compensation over the highest eight consecutive years of service. Additionally, 5% of employee contributions will be directed into a defined contribution plan, akin to a 401(k), which offers immediate vesting and portability for employees who transition out of state employment. This dual approach is designed to enhance retirement security while accommodating the diverse needs of Mississippi's workforce, which includes state, city, and county employees.

Key to the proposal's advancement is the backing from PERS actuaries, who have vetted the plan and confirmed its potential to positively impact the state's unfunded actuarial accrued liability (UAAL). The current employer contribution rate of 17.9% is expected to rise to 19.9%, with the aim of addressing the net pension liability more effectively.

The PERS board, composed of elected representatives from current employees and retirees, overwhelmingly supported the motion with a vote of 9 to 1, indicating strong consensus on the proposed changes. The meeting also addressed the termination of the Supplemental Legislative Retirement Program (SLURP) for future hires, marking a significant policy shift aimed at streamlining retirement options for new elected officials.

As Mississippi moves forward with these reforms, the implications for state employees and future hires will be closely monitored, with expectations that the new structure will provide a more sustainable and equitable retirement system.