Mississippi Today
Legislative leaders ask about suspending PERS ’13th check’ increases, though they say it’s unlikely
The possibility of temporarily pausing or reducing the annual 3% cost of leaving increase Mississippi’s state and local government retirees receive was discussed recently by legislative leaders.
The discussions came during a recent meeting the 14 members of the Legislative Budget Committee held with Ron Higgins, the executive director of the Public Employee Retirement System. After the meeting, legislators indicated that they do not favor limiting or changing the annual 3% cost of living increase, though the fact it was discussed highlights the trouble legislators face grappling with ensuring the financial viability of the public employee retirement system.
Some key legislative leaders indicated that they are reluctant to allow taxpayer funds to be pumped into the public pension program at the level members of the governing board say may be needed to ensure its long-term financial viability.
Sen. Dean Kirby, R-Pearl, asked if suspending the annual 3% cost of living increase for three years would solve the financial woes facing PERS, which provides pensions for most state and local government employees, including educators.
“I wouldn’t use the phrase solve all the problems, but it definitely would have a major impact,” said Higgins. “… Something like that has a direct impact on the unfunded liability.”
Afterwards, Kirby said he was only gathering information, but said that any such suspension, “I don’t think is on the table,” and that he personally would not support it.
Making any changes to reduce or suspend the annual 3% cost of living increase most likely would create an uproar among current employees and retirees. Many of the retirees take the annual 3% increase as a so-called “13th check” at the end of the calendar year.
READ MORE: PERS will ask Legislature for cash, consider changes to ’13th check’
The 10-member board of trustees of the Public Employee Retirement System has voted to increase the amount the state and local governments contribute to employees’ paychecks for retirement from 17.4% to 19.4% beginning on July 1, with another planned 2% increase. The board left open the possibility of increasing the amount the governmental entities contribute to each paycheck for retirement to 27% over a period of time.
Various legislative leaders said the increases could be difficult for the government entities to sustain, particularly local governments. They predict local governments would have to lay off employees and cut services to sustain such an increase in the amount they contribute to employees’ retirement.
House Pro Tem Jason White, R-West, said other options much be considered. White also asked had the Board looked at some type of reduction in the annual cost of living increases.
“I think there has been a commitment at least around the coffee pot … that we (legislators) want to fix this long term and we want your board to be part of the solution,” White told Higgins“… For myself, I would say we are not going to just increase it (the amount of government money put into the plan) 5%, 10% and hope it gets better.”
After the meeting, White told Mississippi Today: “I am not advocating for any specific change to PERS. My concern is for its long-term sustainability. We’ve had good conversations with Ray Higgins. He understands our cities and counties cannot afford a 50% increase in their employer contribution. Also, taxpayers are asking lots of questions on the subject during the campaign season so it’s a hot topic as you already know.”
In recent years, efforts have been made to improve the system’s financial viability that has been negatively impacted by multiple factors, including a decrease in the number of government employees. A reduction in the public sector workforce means less funds for the system.
Higgins stressed that PERS does not face immediate financial woes, but that the governing board has “a fiduciary responsibility” to ensure the pension plan remains solvent. He said the longer officials wait to address financial issues with the system, the more difficult it will be to do so.
The PERS board has also advocated for an annual payment into the system in state funds in addition to the payment contributed to each employee paycheck. Kirby said he was not enamored with the possibility of an “infusion” of additional state funds into the system. Kirby also said he understands the concerns expressed by the board about the possible financial stress facing PERS, but he questioned whether the issues facing the system are as dire as some believe they are.
PERS is providing or will provide benefits to about 325,000 members, including current employees, retirees and others who used to work in the public sector but no longer do.
The system’s current funding ratio is about 61%, meaning it has the assets to pay the benefits of 61% of all the people in the system, ranging from the newest hires to those already retired. Of course, all of the people in the system will not retire at once. Theoretically, though, it is recommended that retirement systems have a funding ratio of 80% or more.
The system is underfunded by roughly $20 billion.
While legislators expressed concern about pumping a large sum of additional funds into the retirement plan, they also indicated they understand the importance of the system that impacts roughly 10% of the state’s population.
“This is a state obligation, and we are damn well going to fund it,” said Lt. Gov. Delbert Hosemann, who is chair of the Legislative Budget Committee.
White said, “My parents are retired Mississippi educators. My wife also is a state retiree. I understand and appreciate the retirees and the duty we owe them. However, we cannot ignore the $19 billion hole that exists. My comments are pointed toward all stakeholders having an adult conversation on this issue and trying to collectively put PERS on a path to viability and sustainability. No other motivation.”
The PERS board plans to recommend to the Legislature changing the benefits for new hires, including even limiting cost of living increases at times based on the financial condition of the plan.
But it is not clear whether legislators could change the cost of living increases that the governmental entities committed to for current employees and retirees.
Rep. Percy Watson, D-Hattiesburg, asked if the state could legally make a change in the cost of living increases for current employees and retirees.
“Historically, the legal comment generally speaking no you cannot make changes,” Higgins said. “… Other states have made changes to current benefits. The landscape might have changed. But the prevailing and historical comment is you cannot make those changes.”
There have been court decisions, including in Mississippi, ruling that to make changes in benefits for current employees and retirees would be breaking a contractual commitment.
Higgins stressed, “anytime we (PERS Board members) have … analyzed the COLA always (it has been) in the context only if needed to maintain the fiscal integrity of the plan.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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Mississippi Today
Jearld Baylis, dead at 62, was a nightmare for USM opponents
They called him The Space Ghost. Jearld Baylis — Jearld, not Jerald or Gerald — was the best defensive football player I ever saw at Southern Miss, and I’ve seen them all since the early 1960s.
Baylis, who died recently at the age of 62, played nose tackle with the emphasis on “tackle.” He made about a jillion tackles, many behind the scrimmage line, in his four years (1980-83) as a starter at USM after three years as a starter and star at Jackson Callaway.
When Southern Miss ended Bear Bryant’s 59-game home winning streak at Alabama in 1982, Baylis led the defensive charge with 18 tackles. The remarkable Reggie Collier, the quarterback, got most of the headlines during those golden years of USM football, but Baylis was every bit as important to the Golden Eagles’ success.
The truth is, despite the lavish praise of opposing coaches such as Bryant at Alabama, Bobby Bowden at Florida State, Pat Dye at Auburn and Emory Bellard at Mississippi State, Baylis never got the credit he deserved.
There are so many stories. Here’s one from the late, great Kent Hull, the Mississippi State center who became one of the best NFL players at his position and helped the Buffalo Bills to four Super Bowls:
It was at one of those Super Bowls — the 1992 game in Minneapolis — when Hull and I talked about his three head-to-head battles with Baylis when they were both in college. Hull, you should know, was always brutally honest, which endeared him to sports writers and sportscasters everywhere.
Hull said Baylis was the best he ever went against. “Block him?” Hull said rhetorically at one point. “Hell, most times I couldn’t touch him. He was just so quick. You had to double-team him, and sometimes that didn’t work either.”
John Bond was the quarterback of those fantastic Mississippi State teams who won so many games but could never beat Southern Miss. He remembers Jearld Baylis the way most of us remember our worst nightmares.
“He was a stud,” Bond said upon learning of Baylis’s death. “He was their best dude on that side of the ball, a relentless badass.”
In many ways Baylis was a football unicorn. Most nose tackles are monsters, whose job it is to occupy the center and guards and keep them from blocking the linebackers. Not Baylis. He was undersized, 6-feet tall and 230 pounds tops, and he didn’t just clear the way for linebackers. He did it himself.
“Jearld was just so fast, so quick, so strong,” said Steve Carmody, USM’s center back then and a Jackson lawyer now. Carmody, son of then-USM head coach Jim Carmody, went against Baylis most days in practice and says he never faced a better player on game day.
“Jearld could run with the halfbacks and wide receivers. I don’t know what his 40-time was but he was really, really fast. His first step was as quick as anybody at any position,” Steve Carmody said.
No, Carmody said, he has no idea where Baylis got his nickname, The Space Ghost, but he said, “It could have been because trying to block him was like trying to block a ghost. Poof! He was gone, already past you.”
Reggie Collier, who now works as a banker in Hattiesburg, was a year ahead of Baylis at USM.
“Jearld was the first of those really big name players that everybody wanted that came to Southern,” Collier said. “He wasn’t a project or a diamond in the rough like I was. He was the man. He was the best high school player in the state when we signed him. Everybody knew who he was when he got here, the No. 1 recruit in Mississippi.”
Collier remembers an early season practice when he was a sophomore and Baylis had just arrived on campus. “We’re scrimmaging, and I am running the option going to my right just turning up the field,” Collier said. “Then, somebody latches onto me from behind, and I am thinking who the hell is that. People didn’t usually get me from behind. Of course, it was Jearld. From day one, he was special.
“I tell people this all the time. We won a whole lot of games back then, beat a lot of really great teams that nobody but us thought we could beat. I always get a lot of credit for that, but Gearld deserves as much credit as anyone. He was as important as anyone. He was the anchor of that defense and, man, we played great defense.”
Because of his size, NFL teams passed on Baylis. He played first in the USFL, then went to Canada and became one of the great defensive players in the history of the Canadian Football League. He was All-Canadian Football League four times, the defensive player of the year on a championship team once.
For whatever reason, Baylis rarely returned to Mississippi, living in Canada, in Baltimore, in Washington state and Oregon in his later years. Details of his death are sketchy, but he had suffered from bouts with pneumonia preceding his death.
Said Don Horn, his teammate at both Callaway and Southern Miss, “Unfortunately, I had lost touch with Jearld, but I’ll never forget him. I promise you this, those of us who played with him — or against him — will never forget Jearld Baylis.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Data center company plans to invest $10 billion in Meridian
A Dallas-based data center developer will locate its next campus in Meridian, a $10 billion investment in the area, Mississippi Gov. Tate Reeves said Thursday.
The company, Compass Datacenters, will build eight data centers in the Meridian area over eight years, Reeves said. The governor said the data centers would support local businesses and jobs in a fast-growing industry that Mississippi has tried to attract.
“Through our pro-business policies and favorable business environment, we continue to establish our state as an ideal location for high-tech developments by providing the resources needed for innovation and growth,” Reeves said.
The Mississippi Development Authority will certify the company as a data center operator, allowing the company to benefit from several tax exemptions. Compass Datacenters will receive a 10-year state income and franchise tax exemption and a sales and use tax exemption on construction materials and other equipment.
In 2024, Amazon Web Services’ committed to spend $10 billion to construct two data centers in Madison County. Lawmakers agreed to put up $44 million in taxpayer dollars for the project, make a loan of $215 million, and provide numerous tax breaks.
READ MORE: Amazon coming to Mississippi with plans to create jobs … and electricity
Mississippi Power will supply approximately 500 megawatts of power to the Meridian facility, Reeves said. Data centers house computer servers that power numerous digital services, including online shopping, entertainment streaming and file storage.
Republican Sen. Jeff Tate, who represents Lauderdale County, said the investment was a long time coming for the east Mississippi city of Meridian.
“For far too long, Meridian has been the bride’s maid when it came to economic development,” Tate said. “I’m proud that our political, business, and community leaders were able to work together to help welcome this incredible investment.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1967
Jan. 9, 1967
Civil rights leader Julian Bond was finally seated in the Georgia House.
He had helped found the Student Nonviolent Coordinating Committee while a student at Morehouse College along with future Congressman John Lewis. The pair helped institute nonviolence as a deep principle throughout all of the SNCC protests and actions.
Following Bond’s election in 1965, the Georgia House refused to seat him after he had criticized U.S. involvement in Vietnam. In 1966, the U.S. Supreme Court ruled unanimously that the Georgia House was required to seat him.
“The truth may hurt,” he said, “but it’s the truth.”
He went on to serve two decades in the Georgia Legislature and even hosted “Saturday Night Live.” In 1971, he became president of the just-formed Southern Poverty Law Center and later served a dozen years as chairman of the national NAACP.
“The civil rights movement didn’t begin in Montgomery, and it didn’t end in the 1960s,” he said. “It continues on to this very minute.”
Over two decades at the University of Virginia, he taught more than 5,000 students and led alumni on civil rights journeys to the South. In 2015, he died from complications of vascular disease.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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