The PERS Administrative and Legislative Committees convened on October 23, 2024, to discuss key updates regarding the Mississippi Public Employees Retirement System (PERS). The meeting focused on salary trends, mortality projections, and data reconciliation challenges impacting the retirement system.

The session began with a report on payroll growth, which showed an increase of 5.01% for active members who were part of the system last year. This growth was higher than anticipated and is expected to influence future benefit projections, as benefits are tied to final average pay. Over the past decade, there have been six years of salary gains and four years of losses, with the latter occurring predominantly in the last three years. This trend reflects broader national patterns in the public sector, particularly among teachers, as many have begun to see salary increases post-COVID after years of stagnation.

The committee also addressed mortality rates, noting that the expected mortality tables for baby boomers will significantly affect future benefit calculations. The discussion highlighted that the anticipated number of deaths among retirees was higher than expected this year, which could lead to adjustments in the system's financial outlook.

A variance report was presented, comparing budgeted figures to actual outcomes. The report indicated that data discrepancies, such as incorrect birth dates or changes in marital status affecting benefit calculations, contributed to significant variances. The committee emphasized the importance of accurate data reconciliation, which is a time-consuming but necessary process to ensure the integrity of the retirement system's records.

The meeting concluded with a discussion on the current unfunded liability, which stands at approximately $26.5 billion. The committee noted that the fixed contribution rate for the year is slightly lower than the previous year, with a normal cost of 2.57%. The ongoing challenge of addressing the unfunded liability was acknowledged, with projections indicating it could take up to 45 years to fully amortize.

Overall, the meeting underscored the complexities of managing the PERS system, particularly in light of changing demographics and economic conditions. The committee plans to continue monitoring these trends closely to ensure the sustainability of the retirement system for Mississippi's public employees.