PERS board approves switching UAAL references to 'net pension liability' and delegates implementation planning to staff

The Public Employees Retirement System of Mississippi voted to change the terminology used in its legislative materials and communications from "unfunded actuarial accrued liability (UAAL)" to "net pension liability (NPL)," aligning the board’s language with the GASB/audited figures employers use on their financial statements.

Staff explained the technical difference: NPL uses the market value (fiduciary net position) reported on June 30 and therefore can be more volatile year to year, while UAAL uses actuarial smoothing. Board members said presenting NPL would match what employers already see in audited financials and help clarity in legislative and employer-facing documents. The motion to adopt the change was moved, seconded and carried during the meeting.

Procedure and administration: earlier in the meeting the board approved amending the agenda and later voted to approve the December 2024 minutes. The director asked the board to recommend a not-earlier-than July 1, 2026 implementation window for any newly enacted Tier 5 to allow time for administrative setup; a motion on a specific effective date was discussed and later withdrawn, and the board agreed by consensus to delegate implementation planning (timing, third-party administration, communications) to the director and staff.

What this means: the board asked staff to update transmittal materials and post revised language and to continue supplying legislators with actuarial detail as bills move through committee.