A bill addressing the financial stability of Mississippi’s public employees’ retirement system (PERS) is heading to the desk of Gov. Tate Reeves.
Senate Bill 3231, which was passed by the House over the weekend, would:
- Put a halt to the pending 2 percent rate increase for PERS employers that was expected in July 2024.
- Instead, lawmakers intend to adjust the process by which future employer rate increases can be made, allowing a 0.5 percent increase this summer and each year after through 2028.
- Any additional rate change recommendations from the PERS Board would require at least two independent actuarial assessments, and approval from the legislature before it could go into effect.
As lawmakers stress that the bill will not impact benefits for current employees or retirees, House Speaker Jason White said this could be the first step in shoring up what some believe to be a $25 billion issue.
“Much like reforming our education funding formula, addressing the employer contribution and long-term stability of PERS is a challenging issue to confront and tackle,” White said, per an official statement from his office. “With the passage of SB 3231, Mississippi will ensure we meet financial obligations to PERS current and future retirees without placing undue burden on our state’s taxpayers.”
Other legislation related to PERS is bound to come back up in 2025 as lawmakers are expected to consider creating a new tier within the system for future members, or new hires.
