Senate rules committee advances four PERS-related bills, including proposal for hybrid "tier 5" retirement plan

The Mississippi Senate Rules Committee advanced four bills Feb. 4 addressing the Public Employees' Retirement System, members said, including a proposal to create a hybrid defined-benefit/defined-contribution “tier 5” for future state hires.

Senator Sparks, sponsor of the package and a PERS board member, told the committee the legislation is aimed at stabilizing PERS’s finances while protecting benefits for current employees and retirees. “Nothing in any of these proposed pieces of legislation changes or attempts to change any benefit to retirees including the cost of living adjustment,” Senator Sparks said. He also summarized the system’s finances: “We have assets of 34,400,000,000.0. We have an unfunded actuarial liability, net pension liability of 26,500,000,000.0. That's a funded percentage of 55.9.”

Why it matters: PERS pays roughly $3,400,000,000 a year in benefits and covers more than 154,000 active members and about 118,000 retirees and beneficiaries, according to statements to the committee. Lawmakers and the PERS board said the measures are intended to reduce contribution-rate risk and improve long-term funded status for future generations without altering benefits already earned.

Key actions and provisions

- Senate Bill 2863: The committee reported SB 2863 out of committee. The bill would permit Roth-style…