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Appropriations Committee reports Senate Bill 2004 to direct $1 billion to PERS
Summary
The Appropriations Committee reported Senate Bill 2004, the "Mississippi PERS Stability Act," which would move $500 million from the capital expense fund on July 1, 2026, and authorize $50 million annually for 10 years (with a $1 billion fallback) to the state's Public Employees' Retirement System (PERS).
The Appropriations Committee voted to report Senate Bill 2004, the "Mississippi PERS Stability Act," after the bill’s sponsor described transfers intended to reduce the retirement system’s unfunded liability.
Senator Sparks, the bill’s sponsor, told the committee that section two directs the state treasurer to transfer $500,000,000 from the capital expense fund to the employer accumulation account at the Public Employees' Retirement System (PERS) effective July 1, 2026, and that section three directs $50,000,000 in annual transfers for 10 years. He said the bill includes a fallback provision that would allow unobligated general funds to cover transfers if capital expense funds are insufficient, noting the total commitment could reach $1,000,000,000.
"This is a $500,000,000 transfer, as of 07/01/2026," Senator Sparks said, and he described the combined impact of the transfers and prior legislative changes as producing roughly $3,000,000,000 flowing into PERS over time. He framed the approach as using the time value of investment returns to stabilize pension funding.
A senator asked about the impact on the capital expense fund. Senator Sparks said the capital expense fund is "approximately $1,500,000,000," and that the one-time transfer would reduce that balance by $500,000,000. He explained that because PERS investments can earn returns over time, a large, earlier transfer can produce more funding over the long term than identical smaller transfers spread out, citing a 7% assumed rate of return and recent returns of about 11.71% and 10.34% in prior years.
After questions, Senator Sparks moved "Title sufficient, do pass." The committee voice-voted; the chair declared "the ayes have it" and ordered the bill reported from the committee. The transcript does not record a roll-call tally for the bill vote.
What this means next: the committee reported the bill out of Appropriations. The transcript does not specify the next scheduled floor or committee date.
