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PERS will ask Legislature for cash, consider changes to ’13th check’

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Mississippi Public Employee Retirement System leaders will ask the for a cash infusion during the 2024 session.

The board of trustees for the public pension plan is “seeking a cash infusion or direct appropriation from the Legislature,” PERS Executive Director Ray Higgins said in emailed response to questions from .

The rare cash infusion request is one of a litany of proposals board members plan to offer to the Legislature in an attempt to ensure the financial viability of the public pension plan, which provides retirement benefits for most and local employees, public school teachers.

Normally the Legislature does not provide direct appropriations to PERS. Instead, it is supported by governmental entities paying 17.4% of payroll for each employee. In addition, employees pay 9% of their payroll into the system, and the system also receives investment earnings.

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.

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.

It is not clear how much cash the PERS board might ask the Legislature to consider pumping into the program.

“Officially, yet to be decided,” Higgins said of the amount of money the board will request. “However, it could and likely will be a general request for and consideration of a new or dedicated (continuing on a yearly basis) revenue stream. It will also likely include a request for direct appropriations and/or funding for the estimated costs associated with the benefit increases from the late 90s and early 2000s.”

Higgins has said that money was never provided to pay for the enhanced benefits that were provided to PERS beneficiaries in the 1990s and 2000s.

The request would be made at a time the Legislature is flush with funds, thanks in large part to a major rush of federal money. The state had about $3 in reserves before the 2023 session and still has well over $1 billion.

According to a study by the Pew Charitable Trust, the Mississippi pension plan would need an additional $1.4 billion to reach its “net amortization benchmark,” which is the amount needed to prevent the plan’s unfunded liabilities from increasing. 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 have a funding ratio of 80% or more.

The system has $30 billion in assets and is underfunded by about $20 billion.

During an August meeting, the PERS board also voted to propose a new benefits structure for new hires. Details of what the new benefit structure would look like are still being contemplated, but it could include a new method of providing cost of living adjustments instead of the current system, where a 3% cost of living adjustment is guaranteed each year. The change to the COLA would be for new employees only.

Another recommendation could be a change to the payout method for the cost of living increase for future employees.

Under the current system, many people take the annual 3% cost of living increase as one lump sum payment at the end of the year, often referred to as “the 13th check.” The PERS board recommendation is to make the default choice for retirees to the cost of living increase divvied up as part of their monthly retirement checks. The employees would have to request specifically for the cost of living increase to be paid as a 13th check instead of monthly.

Changing the payout method from a lump sum to monthly for the annual cost of living increases would not result in less money for retirees, but it would give more flexibility to the system since it would not be taxed with paying the entire total at one time at the end of the year.

The board did vote to increase the employer contribution rate for each employee by 2% starting with the new fiscal year in July. This means the employer contribution rate would increase to 19.40% of payroll in July.

The board anticipates additional increases in the employer contribution rates in coming years with a possible projection of a rate of more than 27% of payroll.

“This potential future employer contribution rate will be updated in subsequent actuarial reports (typically presented each December) beginning with the next one for the state fiscal year ending June 30, 2023,” Higgins said.

The board has sole authority to increase the employer contribution rate, but it is up to the Legislature and local governmental entities to find the funds to pay for the increases or to cut other services to provide the funds.

It is estimated the total cost of the 2% increase to all governmental entities is $138 million per year.

The board was considering increasing the employer contribution rate earlier, but delayed the increase after an outcry by legislative leaders during the 2023 session. At that time, Higgins committed to providing the Legislature with recommendations from the board to with the system’s long-term financial viability.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

State-funded project to improve Jackson cul-de-sac near lawmaker’s home moves forward

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mississippitoday.org – Taylor Vance – 2024-10-17 16:55:00

A -funded to upgrade an already well-paved north Jackson cul-de-sac that runs by a Mississippi lawmaker’s house will go forward, a group of who oversee the project said on Thursday. 

Rebekah Staples, the director of the Capitol Complex Improvement District’s Project Advisory Committee, said at the group’s latest meeting that the project to repave the road near the legislator’s home and four other projects the Legislature allocated money for will proceed “as quickly as possible,” though some of the details are still being worked out. 

“I respect the Legislature and the governor passing the ,” Staples said. “We’re here to follow the law.” 

A Mississippi investigation revealed that House Ways and Means Chairman Trey Lamar, a Republican from Senatobia, helped steer $400,000 in state taxpayer funds to repave Simwood Place in Jackson, where he owns a house.

Simwood Place, located in the affluent LoHo neighborhood of northeast Jackson, is roughly one-tenth of a mile long, with only 14 single-family homes.

State lawmakers and the local Jackson Council member who represents the area previously told Mississippi Today they did not ask state to allocate money for the Simwood Place project. Lamar has declined to answer specific questions about the Simwood project but said any “innuendo of wrongdoing is baseless.” 

A spending bill passed by the Legislature and signed into law by Gov. Tate Reeves routed projects through the CCID committee. The advisory committee is housed in the Department of Finance and Administration.

DFA is the primary agency responsible for state financial and administrative operations, including employee payroll, employee insurance and maintaining state buildings. However, the Legislature has also tasked the agency with overseeing some operations of the CCID.

Jackson City Councilwoman Virgi Lindsay is a member of the CCID committee and said she wants the five projects earmarked by the Legislature to proceed, but she does not want the committee to neglect the other projects they are currently overseeing.  

The CCID is funded through a 9% sales tax diversion and recommends to DFA and other state leaders which projects to fund. Efforts to expand the CCID and establish a separate court system within it have drawn outcry from several Jackson citizens and officials who view it as a state takeover of the more affluent of Jackson and claim the state otherwise gives the city few resources.

READ MORE: ‘Trey Way’: Millions in taxpayer funds flow to powerful lawmaker’s country club and Jackson neighborhoods

Liz Welch, the director of DFA, said at the meeting that the projects the committee has prioritized and the projects the Legislature has appropriated money for will run concurrently with one another. 

“We will not let these projects languish,” Welch said. “That’s not what we do. We’re going to up with an internal process, and of course, we will discuss it with the advisory committee. But we’re going to do both.” 

It’s unclear exactly when DFA and the CCID committee will solicit bids for the project, but Staples and Welch said they hope to provide a substantive update to the rest of the committee by its next meeting on January 16.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Reddit AMA recap: ‘Trey Way’ with Geoff Pender and Taylor Vance

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mississippitoday.org – Mississippi Today – 2024-10-17 13:52:00

Mississippi Today politics editor Geoff Pender and reporter Taylor Vance answered your questions on Reddit about how powerful House Rep. Trey Lamar helped steer millions of taxpayer dollars to improve the private country club neighborhood where he lives and nearby golf course.

Taxpayers are also footing the bill for another state-funded project that will improve a quiet, already well-paved Jackson street where Lamar also owns a house.

Read their answers below and visit the story summary that will direct you to the full investigation.

Some questions have been edited for length and clarity.

Q: What can be done to curb Lamar’s power? Will any of the higher-ups in our state demand that he step down or be removed from his position?

Click for Geoff Pender’s answer.

Lamar does appear to have unprecedented power over local projects spending. A House Ways and Means chairman, by due course, would have a lot of say over local projects funded with borrowing (Ways and Means is in charge of borrowing and taxes). But Lamar, according to numerous fellow lawmakers, has huge sway over the projects even when using state cash instead of borrowing.

House Speaker Jason White is the grantor of this power to Lamar, and would have to be the source of any reduction in that power. I would posit this system is not the best, most efficient or fair way to spend hundreds of millions of taxpayers dollars each year or to decide what projects are done.

Speaker White and Lt. Gov. Hosemann have expressed desire to increase transparency and efficiency in state government. This is an area where they could have a profound and immediate impact. 

Click for Taylor Vance’s answer.

This is largely left up to voters in Tate County and House Speaker Jason White. Speaker White has the power to remove Rep. Lamar as chairman of the House Ways and Means Committee and appoint someone else to the committee, but that’s incredibly unlikely. It’s extremely rare for House speakers to replace a committee chairman in the middle of a four-year term.

Q: What was the moment during this investigation that made each of you say, “I cannot believe what I am hearing/reading?”

Click for Geoff Pender’s answer.

Has to be when I first ran across the “TateCounty Watchdogs” Facebook page, which was a few weeks into us beginning to look into these issues. It’s not common for state spending/work to cause such a response among the citizenry of an area. 

Click for Taylor Vance’s answer.

For me, it was when I was driving down Simwood Place in . I was stunned that our lawmakers voted to spend $400,000 upgrading a road that is already in decent condition (by the of Jackson’s standards.) There are several major arterial roads in Jackson that are filled with potholes and cracks, yet this is where state lawmakers chose to spend money.

Q: Have you ever been threatened or intimidated when doing one of these investigations?

Click for Geoff Pender’s answer.

I should note we were not threatened or intimidated in working on these articles. I have in the past been threatened over stories I was working on (someone once left a threatening message and fired a gun on my answering machine, for instance) but that was many years ago, and I don’t recall ever being physically threatened over work on any stories related to the .

Intimidation can be a more subjective term and in far more subtle forms, but I’ve never been easily intimidated. 

Click for Taylor Vance’s answer.

I’ve only been a professional reporter since 2019, but, no, I’ve not been threatened or intimidated with an investigation such as this. People have tried to gaslight me or tell me that something isn’t a story, but I’ve never been threatened by anyone.

Q: What is the wrap up process on an investigation like this like? When you have the final draft, do you all do something to celebrate a job well done?

Click for Taylor Vance’s answer.

When we’re close to publishing, we have a final run-through with editors to make sure we have documentation to the reporting. We then discuss what is the best way to package the story online to make it as engaging as possible for . After the story publishes, we think of potential follow ups (and may enjoy a libation or two.)

Q: Has State Auditor Shad White or Fitch shown any interest in your investigation?

Click for Geoff Pender’s answer.

No. They have not.

Q: What other representatives went along with this? He couldn’t have done this without approval of others.

Click for Geoff Pender’s answer.

Technically, yes, other lawmakers overwhelmingly sign off on such spending. It’s passed as a legislative bill. However, the realpolitik is, the vast majority of lawmakers do not know, and could not easily discern, many of the hundreds of projects and programs funded in such a bill.

Plus, it’s designed as a go-along to get-along process. You want project XYZ in your district, so you vote for the bill without much question about other spending in it. Not to mention, it’s done at the last minute, sometimes literally, in a legislative session.

Q: Are you able to confirm if there are more stories of this type coming down the pike?

Click for Geoff Pender’s answer.

We are continuing to work on these and similar issues so, yes, there are likely more stories of this type to come. As always, we solicit any tips on issues involving state government and politics in Mississippi and will follow up on them. Email us at gpender@mississippitoday.org and tvance@mississippitoday.org 

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

3 dead and 4 injured in collapse of Mississippi bridge being prepped for demolition

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mississippitoday.org – Associated Press – 2024-10-17 10:54:00

MENDENHALL, Miss. (AP) — Three people were killed and four were seriously Wednesday when a bridge in Mississippi that was closed nearly a month ago collapsed while a work crew was prepping it for demolition, authorities said.

The bridge over the Strong on State Route 149 in Simpson County, about 40 miles (64 kilometers) south of , had been closed to traffic since Sept. 18 as part of a bridge replacement , the said in a release.

Gov. Tate Reeves said in a post on social late Wednesday that first responders from the county and “other state assets have been on the scene at the tragedy” where they’d confirmed at least three fatalities and multiple injuries.

U.S. Transportation Secretary Pete Buttigieg said in a social media post late Wednesday that the Federal Highway Administration was “engaging state concerning” the “premature collapse during demolition of a bridge on State Route 149 in Mississippi.”

Simpson County Sheriff Paul Mullins told WLBT-TV three people were killed and four critically injured.

Terry Tutor, the Simpson County coroner, told the New York Times that seven were working on the bridge, using heavy machinery to tear it down, when it gave way and plummeted nearly 40 feet (12 meters). He said three of the men died, and four were injured, the Times reported.

Mullins and Tutor didn’t immediately respond to messages Wednesday night from The Associated Press.

A call to the construction company, T.L. Wallace Construction, was unanswered Wednesday evening, and it was not possible to a message.

Department of Transportation spokesperson Anna Ehrgott said the agency “would share more information with the public as it becomes available.”

The department said one of its inspectors was at the work site when the bridge collapsed, and that person was unharmed.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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