PERS board adopts Tier 5 regulation changes, investment policies and approves Tupelo COLA and other actions

The Public Employees Retirement System of Mississippi board approved a set of Tier 5 regulation amendments and multiple investment policy updates, and took a series of administrative and benefit-related actions during its October meeting in Jackson.

Board members voted to adopt a group of Tier 5 regulation amendments (listed at the meeting as 14, 28, 32, 35, 48, 51, 54, 57, 61 and 64) and to adopt regulation 65. The board also approved three investment policy statements — for the new hybrid defined‑contribution plan, the deferred compensation plan and the Optional Retirement Plan — and approved an investment policy review and update recommended by staff.

The meeting’s business included the board’s approval of a request from staff to pursue three areas of PERS‑requested legislation this session: a provision related to net pension liability (NPL) payoff, an item for Mississippi Deferred Comp (MDC) and a minor change to the ORP. The board approved an ad hoc cost‑of‑living adjustment for the City of Tupelo, effective Oct. 1, 2025, and accepted a Disability Appeals Committee recommendation for case number 25‑09.

Board members also approved routine reports presented at the meeting. The investment report noted unaudited first quarter returns of 5.1% (an unaudited update cited 5.91%) and reported system assets of more than $37,500,000,000 as of Sept. 30. The investment report included an additional sheet showing investment manager fees expressed as 29 basis points (0.29%).

The defined contribution committee had deferred final action on the hybrid defined‑contribution plan document until December because a change in payroll systems at the Department of Finance and Administration could require further edits; the board ratified that deferral. The board also accepted the committee’s approval of the investment policy statements tied to the new hybrid DC plan, the deferred comp plan and the ORP.

On manager outreach, the investment committee reported it had heard from several money managers (including Fisher, Lazard, Northern Trust and Principal) during the committee meeting; board members were told those presentations required no board action.

Votes at a glance - Adopt Tier 5 regulation amendments (14, 28, 32, 35, 48, 51, 54, 57, 61, 64): motion brought by Administrative Committee; outcome: approved. - Adopt regulation 65: motion brought by Administrative Committee; outcome: approved. - Approve 2026 board committee meeting schedule: approved. - Approve PERS board election schedules: approved. - Approve staff recommendation to accept Town of Keratin for Social Security and retirement code enrollment beginning Oct. 31 and Nov. 1, 2025 (as presented in packet): approved. - Defer final action on hybrid DC plan document until December (due to DFA payroll system changes): approved (deferral). - Approve investment policy statements for hybrid DC plan, deferred comp plan and ORP: approved. - Approve investment policy review/update as recommended by staff: approved. - Approve PERS requested legislation package (NPL, MDC, ORP items): approved. - Approve ad hoc cost‑of‑living adjustment for the City of Tupelo, effective Oct. 1, 2025: approved. - Approve Disability Appeals Committee recommendation for case no. 25‑09: approved. - Approve retiree report: approved. - Approve investment report and trades since last meeting; noted assets > $37.5 billion and manager fees at 29 basis points: approved.

Board discussion and context Dr. McCoy, reporting for the investment committee, told the board the system’s chief investment officer reported a 5.1% return for the first fiscal quarter and an unaudited 5.91% figure at a later check. "Our chief investment officer shared with us our first quarter returns for the fiscal year was 5.1%," McCoy said during the meeting.

The defined contribution committee described two items that required board action: one was the deferral of the hybrid DC plan document until December because of an ongoing DFA payroll‑system change; the other was the committee’s approval of the three investment policy statements, which the board approved.

On legislative matters, the board approved forwarding PERS‑requested legislation in three areas — net pension liability payoff, Mississippi Deferred Comp and a minor ORP change — as reflected in the committee packet. The board’s director summarized the three items as similar to proposals from the prior year.

The board heard presentations from several investment managers during committee sessions but did not take action on those manager presentations.

Ending Board leadership asked for no further business and adjourned after approving the posted agenda, the minutes of the previous meeting and the items listed above.