The PERS Administrative and Legislative Committees meeting on October 23, 2024, focused on the financial health of the Public Employees Retirement System (PERS) in Mississippi. Key discussions revolved around the system's funded ratio, projected losses, and the need for increased contributions to ensure long-term sustainability.

During the meeting, officials highlighted a projected decline in the funded ratio from 56.6% to 55.1% between 2025 and 2026, primarily due to anticipated investment returns falling between 4% and 5%. This decline raises concerns about the system's ability to meet its future obligations, as the total present value of future benefits is estimated at $65.7 billion, while current assets stand at approximately $33.5 billion.

Committee members emphasized the importance of increasing contributions to address the unfunded liabilities, which total around $26.5 billion. The current amortization period for these liabilities is projected at 45 years, significantly exceeding the funding policy objectives aimed at achieving 100% funding.

The meeting also included a review of historical funded ratios, which have hovered around 61% until a recent drop due to changes in the discount rate. The discussions underscored the necessity for strategic financial planning and proactive measures to bolster the retirement system's stability.

As the committee moves forward, the focus will remain on securing additional contributions and improving investment performance to safeguard the retirement benefits of current and future public employees in Mississippi.