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PERS-Mississippi committee reviews MDC, ORP performance and approves policy updates
Summary
The defined contribution committee reviewed the Mississippi Deferred Compensation (MDC) and Optional Retirement Plan (ORP), heard a market-driven performance update, and approved minor edits to the MDC and ORP policy statements by voice vote. Empower and Callan presentations provided context on asset allocation and participant outcomes.
The Public Employees Retirement System of Mississippi's defined contribution committee met in Jackson on Oct. 26 to review performance of the state’s deferred compensation and optional retirement plans and to approve staff-recommended updates to the policies governing those plans. The committee approved the changes by voice vote.
Callan, presenting the quarter-to-June-30 results for the MDC, said U.S. equity strength drove much of the plan's gains, with domestic equity accounting for the largest share of assets and a stable-value option representing about 21% of MDC holdings. “Taking all that together, the index is up a lofty 24.6% for the trailing year through June 30,” a presenter summarized, noting index concentration in a handful of technology and AI-related names was a key driver of returns.
Why it matters: The MDC and ORP together represent billions in participant assets and are a significant component of retirement savings for state employees. Small changes to policy language and benchmarking can affect fiduciary oversight, reporting, and how performance is evaluated against peers.
Staff recommended modest edits to the deferred compensation policy — removing language that promised conformity with “modern portfolio theory” and replacing it with a statement reflecting the plan’s self-directed nature — and date/benchmark updates in the ORP statement. The committee accepted the staff motion. An unidentified board member moved the recommendation and a second followed; the chair called for the voice vote and the ayes carried without recorded opposition.
Supporting detail: Callan’s presentation also highlighted that stable-value returns have lagged cash in the quarter because the yield curve currently favors short-term cash yields; staff and consultants said that as yields normalize and cuts occur, stable value should regain its relative performance. Callan recommended continued oversight of asset allocations and monitoring for index concentration risks as markets evolve.
What’s next: Staff will finalize the revised policy wording for the MDC and ORP and incorporate the updated benchmark names. The committee continued into the investment committee agenda after the action.
