Mississippi PERS board reviews retirement funding options before finalizing recommendations

The Mississippi Public Employees Retirement System (PERS) board is considering significant changes to its retirement plan structure, with discussions centered on the introduction of a new Tier 5 system. During a meeting on December 18, 2024, board members emphasized the need for a thorough evaluation of funding policies to ensure the long-term sustainability of the retirement system.

Key discussions highlighted the necessity of additional funding to maintain the defined benefit structure, which provides lifetime benefits to PERS members. Board members expressed a desire to compare the proposed Tier 5 plan with previous funding proposals to ensure that any changes align with established policies and do not compromise the integrity of the defined benefit plan.

Concerns were raised about the affordability of certain features, such as a guaranteed cost-of-living adjustment (COLA), which may not be sustainable in the long term. The board acknowledged the importance of setting "guardrails" to guide future decisions and maintain fiscal responsibility.

Mr. McRae, a board member, urged caution in rushing to a recommendation, advocating for a careful review of both the new Tier 5 proposal and last year's plan. He stressed the importance of getting this decision right, as it will have lasting implications for future employees and taxpayers in Mississippi.

The board's discussions reflect a commitment to balancing the needs of current and future retirees with the financial realities facing the state. As the legislature prepares for budget discussions in January, the PERS board is poised to make decisions that could shape the retirement landscape for years to come. The next steps will involve further analysis and potential adjustments to ensure that any new plan is both effective and sustainable.