Mississippi Today
PERS will ask Legislature for cash, consider changes to ’13th check’
Mississippi Public Employee Retirement System leaders will ask the Legislature 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 Mississippi Today.
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 state and local government employees, including 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 funding 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 billion 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 systems 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 receive 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 help 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
An ad supporting Jenifer Branning finds imaginary liberals on the Mississippi Supreme Court
The Improve Mississippi PAC claims in advertising that the state Supreme Court “is in danger of being dominated by liberal justices” unless Jenifer Branning is elected in Tuesday’s runoff.
Improve Mississippi made the almost laughable claim in both radio commercials and mailers that were sent to homes in the court’s central district, where a runoff election will be held on Tuesday.
Improve Mississippi is an independent, third party political action committee created to aid state Sen. Jenifer Branning of Neshoba County in her efforts to defeat longtime Central District Supreme Court Justice Jim Kitchens of Copiah County.
The PAC should receive an award or at least be considered for an honor for best fiction writing.
At least seven current members of the nine-member Supreme Court would be shocked to know anyone considered them liberal.
It is telling that the ads do not offer any examples of “liberal” Supreme Court opinions issued by the current majority. It is even more telling that there have been no ads by Improve Mississippi or any other group citing the liberal dissenting opinions written or joined by Kitchens.
Granted, it is fair and likely accurate to point out that Branning is more conservative than Kitchens. After all, Branning is considered one of the more conservative members of a supermajority Republican Mississippi Senate.
As a member of the Senate, for example, she voted against removing the Confederate battle emblem from the Mississippi state flag, opposed Medicaid expansion and an equal pay bill for women.
And if she is elected to the state Supreme Court in Tuesday’s runoff election, she might be one of the panel’s more conservative members. But she will be surrounded by a Supreme Court bench full of conservatives.
A look at the history of the members of the Supreme Court might be helpful.
Chief Justice Michael Randolph originally was appointed to the court by Republican Gov. Haley Barbour, who is credited with leading the effort to make the Republican Party dominant in Mississippi. Before Randolph was appointed by Barbour, he served a stint on the National Coal Council — appointed to the post by President Ronald Reagan who is considered an icon in the conservative movement.
Justices James Maxwell, Dawn Beam, David Ishee and Kenneth Griffis were appointed by Republican Gov. Phil Bryant.
Only three members of the current court were not initially appointed to the Supreme Court by conservative Republican governors: Kitchens, Josiah Coleman and Robert Chamberlin. All three got their initial posts on the court by winning elections for full eight-year terms.
But Chamberlin, once a Republican state senator from Southaven, was appointed as a circuit court judge by Barbour before winning his Supreme Court post. And Coleman was endorsed in his election effort by both the Republican Party and by current Republican Gov. Tate Reeves, who also contributed to his campaign.
Only Kitchens earned a spot on the court without either being appointed by a Republican governor or being endorsed by the state Republican Party.
The ninth member of the court is Leslie King, who, like Kitchens, is viewed as not as conservative as the other seven justices. King, former chief judge on the Mississippi Court of Appeals, was originally appointed to the Supreme Court by Barbour, who to his credit made the appointment at least in part to ensure that a Black Mississippian remained on the nine-member court.
It should be noted that Beam was defeated on Nov. 5 by David Sullivan, a Gulf Coast municipal judge who has a local reputation for leaning conservative. Even if Sullivan is less conservative when he takes his new post in January, there still be six justices on the Supreme Court with strong conservative bonafides, not counting what happens in the Branning-Kitchens runoff.
Granted, Kitchens is next in line to serve as chief justice should Randolph, who has been on the court since 2004, step down. The longest tenured justice serves as the chief justice.
But to think that Kitchens as chief justice would be able to exert enough influence to force the other longtime conservative members of the court to start voting as liberals is even more fiction.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1968
Nov. 24, 1968
Black Panther leader Eldridge Cleaver fled the U.S. to avoid imprisonment on a parole violation. He wrote in “Soul on Ice”: “If a man like Malcolm X could change and repudiate racism, if I myself and other former Muslims can change, if young whites can change, then there is hope for America.”
The Arkansas native began to be incarcerated when he was still in junior high and soon read about Malcolm X. He began writing his own essays, drawing the praise of Norman Mailer and others. That work helped him win parole in 1966. His “Soul on Ice” memoir, written from Folsom state prison, described his journey from selling marijuana to following Malcolm X. The book he wrote became a seminal work in Black literature, and he became a national figure.
Cleaver soon joined the Black Panther Party, serving as the minister of information. After a Panther shootout with police that left him injured, one Panther dead and two officers wounded, he jumped bail and fled the U.S. In 1977, after an unsuccessful suicide attempt, he returned to the U.S. pleaded guilty to a reduced charge of assault and served 1,200 hours of community service.
From that point forward, “Mr. Cleaver metamorphosed into variously a born-again Christian, a follower of the Rev. Sun Myung Moon, a Mormon, a crack cocaine addict, a designer of men’s trousers featuring a codpiece and even, finally, a Republican,” The New York Times wrote in his 1998 obituary. His wife said he was suffering from mental illness and never recovered.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1867
Nov. 23, 1867
The Louisiana Constitutional Convention, composed of 49 White delegates and 49 Black delegates, met in New Orleans. The new constitution became the first in the state’s history to include a bill of rights.
The document gave property rights to married women, funded public education without segregated schools, provided full citizenship for Black Americans, and eliminated the Black Codes of 1865 and property qualifications for officeholders.
The voters ratified the constitution months later. Despite the document, prejudice and corruption continued to reign in Louisiana, and when Reconstruction ended, the constitution was replaced with one that helped restore the rule of white supremacy.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
-
Kaiser Health News6 days ago
A Closely Watched Trial Over Idaho’s Near-Total Abortion Ban Continues Tuesday
-
Local News5 days ago
Sherral’s Diner to be featured on America’s Best Restaurants
-
Local News2 days ago
Introducing our Student Athlete of the Week: Ocean Springs’ very own Mackenzie Smith
-
News from the South - Georgia News Feed4 days ago
Jose Ibarra found guilty in murder of Laken Riley | FOX 5 News
-
News from the South - Alabama News Feed5 days ago
Trial underway for Sheila Agee, the mother accused in deadly Home Depot shooting
-
News from the South - Kentucky News Feed4 days ago
Nicholasville organization activates weather plan in response to bitter cold temperatures
-
News from the South - Alabama News Feed4 days ago
Judge grants mistrial in Sheila Agee trial due to ‘unhinged juror’
-
News from the South - Alabama News Feed5 days ago
Alabama's weather forecast is getting colder, and a widespread frost and freeze is likely by the …