The Mississippi Public Employees Retirement System (PERS) reported a significant increase in retirements, with a net gain of 2,500 more retirements than deaths as of October 23, 2024. This trend highlights the growing demand for retirement benefits, which is crucial for planning future financial strategies within the system.

During the meeting, PERS officials discussed the current payroll for active members, which stands at approximately $7.2 billion, alongside benefit payments totaling around $3.5 billion to retirees. The financial health of the retirement system appears stable, with total assets reaching $33.45 billion as of June 30, 2024. This marks a positive trend in asset growth, although officials noted that the growth rate could be improved.

A key focus of the meeting was the calculation of actual value returns, which currently stands at 7.3%. This figure is derived from a complex methodology that smooths out gains and losses over a five-year period, rather than simply averaging market returns. For instance, despite a strong market return of 32% in 2021, the system had to adjust its investment return assumptions downward due to previous losses, demonstrating the volatility and challenges faced in managing retirement funds.

The discussions also touched on the implications of future investment returns. If the system were to achieve a 7% return in the current fiscal year, it would not yield additional gains above expectations, potentially impacting future financial projections. This highlights the importance of careful monitoring and strategic planning to ensure the sustainability of the retirement system.

Overall, the meeting underscored the need for ongoing evaluation of retirement benefits and investment strategies to adapt to changing demographics and market conditions. As the number of retirees continues to rise, PERS is tasked with ensuring that it can meet its obligations while maintaining financial stability for its members.