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
On this day in 1977
On this day in 1977
March 8, 1977

Henry L. Marsh III became the first Black mayor of the former capital of the Confederacy, Richmond, Virginia.
Growing up in Virginia, he attended a one-room school that had seven grades and one teacher. Afterward, he went to Richmond, where he became vice president of the senior class at Maggie L. Walker High School and president of the student NAACP branch.
When Virginia lawmakers debated whether to adopt “massive resistance,” he testified against that plan and later won a scholarship for Howard University School of Law. He decided to become a lawyer to “help make positive change happen.” After graduating, he helped win thousands of workers their class-actions cases and helped others succeed in fighting segregation cases.
“We were constantly fighting against race prejudice,” he recalled. “For instance, in the case of Franklin v. Giles County, a local official fired all of the black public school teachers. We sued and got the (that) decision overruled.”
In 1966, he was elected to the Richmond City Council and later became the city’s first Black mayor for five years. He inherited a landlocked city that had lost 40% of its retail revenues in three years, comparing it to “taking a wounded man, tying his hands behind his back, planting his feet in concrete and throwing him in the water and saying, ‘OK, let’s see you survive.’”
In the end, he led the city from “acute racial polarization towards a more civil society.” He served as president of the National Black Caucus of Elected Officials and as a member of the board of directors of the National League of Cities.
As an education supporter, he formed the Support Committee for Excellence in the Public Schools. He also hosts the city’s Annual Juneteenth Celebration. The courthouse where he practiced now bears his name and so does an elementary school.
Marsh also worked to bridge the city’s racial divide, creating what is now known as Venture Richmond. He was often quoted as saying, “It doesn’t impress me to say that something has never been done before, because everything that is done for the first time had never been done before.”
He died on Jan. 23, 2025, at the age of 91.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Judge tosses evidence tampering against Tim Herrington

A Lafayette County circuit judge ended an attempt to prosecute Sheldon Timothy Herrington Jr., the son of a prominent north Mississippi church family who is accused of killing a fellow University of Mississippi student named Jimmie “Jay” Lee, for evidence tampering.
In a March 7 order, Kelly Luther wrote that Herrington cannot be charged with evidence tampering because of the crime’s two-year statute of limitations. A grand jury indicted the University of Mississippi graduate last month on the charge for allegedly hiding Lee’s remains in a well-known dumping ground about 20 minutes from Herrington’s parent’s house in Grenada.
“The Court finds that prosecution for the charge of Tampering with Physical Evidence commenced outside the two-year statute of limitations and is therefore time-barred,” Luther wrote.
In order to stick, Luther essentially ruled that the prosecution should have brought the charges against Herrington sooner. In court last week, the prosecution argued that it could not have brought those charges to a grand jury without Lee’s remains, which provided the evidence that evidence tampering occurred.
The dismissal came after Herrington’s new counsel, Jackson-area criminal defense attorney Aafram Sellers, filed a motion to throw out the count. Sellers did not respond to a request for commend by press time.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
JXN Water is running out of operating money, set to raise rates again

JXN Water is losing money at a rate it can’t sustain, according to a financial outlook it released last week, as the federal dollars it received to run day-to-day operations are set to run out next month.
Ted Henifin, who manages the third-party provider, told Mississippi Today on Thursday that the funding shortfall may extend repair times for line breaks, and that the utility will look to once again raise rates on customers’ water bills. Henifin explained that various factors — such as debt payments, higher-than-expected operating costs, and slower-than-expected collections gains — have left the water utility in a precarious position where it’s now losing $3 million a month.
“Gone from a water disaster to a bit of financial disaster or so,” Henifin described.

The federal government set aside a historic $800 million for Jackson to fix its water and sewer systems in 2022, with $600 million of that tied specifically to the water system. That included $150 million of “flexible” funding, which JXN Water has used mostly for line repairs as well as on a contract with Jacobs to run the day-to-day operations of the system. The rest of the $600 million was intended for bigger, capital projects.
But the $150 million, Henifin said, is on track to run out in April. He said JXN Water will look for grants and low-interest loans to hold its operations together, as well as work with Congress to free up some of the $450 million — the amount intended for larger projects — for operations spending.
The water provider is also set to impose an almost 12% rate increase on customers’ water bills this spring — just under $9 per month for the average resident — the second rate hike in as many years (the utility a year ago raised rates on average $10 per month). While the 2022 federal order requires it to put rate increases before the Jackson City Council, JXN Water only needs the approval of overseeing U.S. District Judge Henry Wingate.

In addition to higher-than-expected operating costs, such as fixing line breaks, Henifin said the utility was also unsuccessful in retiring some of the city’s debt due to federal constraints over how it spends the $450 million pot. As a result, JXN Water is paying $1.5 million a month, or half of its total losses, in debt services.
Meanwhile, the utility’s revenue collection rate of 70% is an improvement from a year ago, when it was under 60%, but it’s still far below the national average. Last year, Henifin told Mississippi Today in order to make the water system self-sustainable by the time federal funding runs out, the rate needs to reach 80% in 2025 and 90% in 2026. The financial report says there are 14,000 accounts that receive water but aren’t paying bills.
Henifin admitted on Thursday, though, that even if collection rates were at 100%, JXN Water would still be losing money.
“It’s really the running out of the federal funds and not having closed that gap on local revenues,” he said. “Error on our part maybe that we didn’t focus on this earlier, but we were really trying to get the water system working.”
Last week’s financial plan added that a decision from the 5th U.S. Circuit Court of Appeals over whether to release SNAP recipient data is expected within the next two months. JXN Water last year introduced a first-of-its-kind discount for SNAP recipients, but both federal and state officials appealed an order from Wingate to release the names of those recipients, preventing the utility from automatically applying those discounts.

To help free up funding for the utility, Rep. Chris Bell, D-Jackson, wrote a bill which would allow JXN Water to become a water authority for the purpose of accessing tax-exempt bonds or loans. The bill now just needs to pass a floor vote in the Senate.
Henifin added that, after some initial uncertainty, JXN Water’s current funding won’t be impacted by the Trump administration’s recent freezing of federal grant funds.
He also said the funds they do have access to are being used to make major improvements, such as fixing the membrane trains, filters and sediment basins at the O.B. Curtis treatment plant.
“I think it’s a pretty bright future,” Henifin said. “If we can just get over this little cashflow hump we’re in good shape.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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