PERS board seeks additional funding stream to address retirement debt concerns

The PERS Administrative and Legislative Committees convened on April 23, 2025, to address critical funding issues related to the Mississippi Public Employees Retirement System (PERS). The meeting focused on the financial implications of recent investment performance and the introduction of Tier 5, a new retirement plan designed to improve the system's long-term sustainability.

The discussion began with an emphasis on the need for additional funding to mitigate the effects of a challenging investment year. Committee members expressed concern over the volatility of the economy, which has been influenced by factors beyond their control, such as tariffs and global market fluctuations. It was noted that despite the implementation of Tier 5, the funding ratios for PERS are projected to remain similar to current levels in the near term, with a slight improvement expected over the next 25 to 30 years.

A key point raised was that while Tier 5 is anticipated to enhance the funding status of PERS, its benefits will primarily be realized after a significant period. Projections indicate that Tier 5 could lead to a more favorable funding ratio of over 55% by 2047, but the immediate impact will be minimal. The committee highlighted that the true advantages of Tier 5 would emerge as older retirees pass and newer members from Tier 4 retire.

In light of these discussions, a motion was proposed to formally request that the governor include provisions for a stream of funding in the upcoming special legislative session. This request aims to ensure that the legislature has the opportunity to address the pressing funding needs of PERS. The committee noted that there is growing support for this initiative, as evidenced by previous legislative discussions and public sentiment.

The meeting concluded with a consensus on the urgency of addressing the funding challenges facing PERS. Committee members agreed to prepare for further discussions and actions in the upcoming legislative session, emphasizing the importance of timely intervention to secure the financial health of the retirement system.