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Senate advances Tier 5 pension reform after hours of debate
Summary
The Mississippi Senate passed a new hybrid public-retirement option, known as "Tier 5," creating a smaller guaranteed pension plus a mandatory defined-contribution account for new hires effective March 1, 2026.
The Mississippi Senate passed legislation creating a new retirement option commonly described as "Tier 5," a hybrid plan that combines a smaller defined-benefit (DB) component with a mandatory defined-contribution (DC) account for employees hired after March 1, 2026.
Lawmakers debated the plan for hours, with supporters saying the hybrid design steers additional dollars toward the pension system's large unfunded actuarial liability and avoids steep employer cost spikes. Opponents said the change shifts long-term investment risk from the state to individual workers and urged alternatives such as a smaller cost-of-living adjustment (COLA) tied to age or CPI.
Senator Michael Sparks, sponsor of the…
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