Mississippi Today
Study: Legislature’s action on retirement system does not fix PERS woes
Action taken during the 2024 legislative session will not fix the long -term financial issues facing Mississippi’s Public Employee Retirement System, according to a study.
A report released by a legislative watchdog agency cites a study saying “under the approach implemented by the (2024) Legislature, the PERS plan is currently expected to be at a lower funded level in the future than it currently is today.”
The report was done by the PERS governing board’s actuary, which is a private consultant hired by the board to make assumptions on the long-term outlook of the plan.
The study was cited in the recently released annual report of PERS by the Legislature’s watchdog committee, the Performance Evaluation and Expenditure Review Committee.
The PEER report said, based on the actuary study, that the legislative action falls short of fixing the system long-term, “it is imperative that the Legislature and the PERS Board continue to assess the performance of the plan and evaluate the status of the PERS plan in the future.”
The financial issues facing PERS have been an ongoing headache for the Legislature with widespread and long-term ramifications. The system has about 360,000 members including current public employees and former employees and retirees. The system provides pension benefits for most Mississippi public employees on the state and local government levels, including schoolteachers. Members of PERS comprise more than 10% of the state’s population.
The system has assets of about $32 billion, but debt of about $25 billion.
During the 2024 session, legislation was passed to strip a key power of the PERS’ Board – to set the percentage of the employee paycheck governmental entities contribute to the pension program.
To deal with long-term financial issues, the PERS Board had planned a 5% increase over three years to 22.4% that the employers or governmental entities contributed to each paycheck. Governmental entities, particularly local governments and school districts, said to pay for the increase they would be forced to reduce services and lay off employees.
While stripping the power from the PERS Board to set the employer contribution rate, the Legislature also enacted a 2.5% increase over five years instead of the 5% increase over three years planned by the PERS Board.
In addition, the Legislature provided a one-time infusion of $110 million into the system.
Stressing that the numbers were only projections, the report said that stabilizing the system long-term might take a larger contribution than the 5% that the PERS Board planned if additional steps are not taken in coming years.
According to the report cited by PEER, the long-term financial viability could be worse under the legislative plan if lawmakers do not take additional steps.
The study goes on to say the legislative action “does not immediately constitute a problem for the PERS plan; however, careful evaluation of the plan’s future liabilities and funding needs will be necessary to ensure the sustainability of the PERS plan.”
During the 2024 session, some legislators, particularly members of the Senate, had advocated for a larger infusion of money into the system.
Sen. David Blount, D-Jackson, said, “You are moving in the wrong direction and weakening the system” with the bill the Legislature approved. “Is it painful? Is it going to cost more money? Yes, but we need to do it” to fix the system.
But Sen. Daniel Sparks, R-Belmont, and others argued that the debt was “a snapshot” that could be reduced by strong performance from the stock market. The system depends on its investments and contributions from employers and employees as sources of revenue.
The financial woes are the results of a number of factors, officials said, including providing retirees additional benefits in past years and a shrinking public work force.
According to the PEER report, the ratio of active members to retiree members was 1.74 to 1 in fiscal year 2013 and 1.25 to 1 in fiscal year 2023.
“The declining ratio is attributable to a decrease in the number of active members and an increase in the number of retiree members over the period,” the report concluded.
The average annual benefit is $26,909.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Crooked Letter Sports Podcast
Podcast: Ohio State won it all, but where would Ole Miss have been with Quinshon Jundkins?
Lots to talk about on the days after the national championship game, but in Mississippi, especially in Oxford, much of the talk is about what might have been had Judkins stayed at Ole Miss. Also, the Clevelands discuss Egg Bowl basketball, the grueling SEC schedule, the NFL playoffs, and John Wade’s saga at Southern Miss.
Stream all episodes here.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
With EPA support, the Corps is moving forward with the Yazoo Pumps
Barring any legal challenge, it appears the South Delta is finally getting its pumps.
The U.S Army Corps of Engineers announced last Friday it’s moving forward with an altered version of the Yazoo Pumps, a flood relief project that the agency has touted for decades. The project now also has the backing of the Environmental Protection Agency, whose veto killed a previous iteration in 2008 because of the pumps’ potential to harm 67,000 acres of valuable wetland habitat.
In a Jan. 8 letter, the EPA wrote that proposed mitigation components — such as cutting off the pumps at different points depending on the time of year, as well as maintaining certain water levels for aquatic species during low-flow periods — are “expected to reduce adverse effects to an acceptable level.”
South Delta residents have called for the project to be built for years, especially after the record-setting backwater flood in 2019. State lawmakers from the area rejoiced over last week’s news.
“It’s been a long time coming,” said Sen. Joseph Thomas, D-Yazoo City, explaining that most in his district support the pumps. “I’m sure there are some minuses and pluses (to the project), but by and large I think it needs to happen.”
Sen. Briggs Hopson, R-Vicksburg, recalled that almost half of his district was underwater in 2019.
“I’m very pleased that the Corps has issued this (decision),” Hopson told Mississippi Today on Tuesday.
Before the Corps’ latest proposal, the future of the pumps was in limbo for several years. Under President Trump’s first administration, the EPA in 2020 said the 2008 veto no longer applied to the proposal because of Corps research suggesting that the wetlands mainly relied on water during the winter months — a less critical period for the agriculture-dependent South Delta — to survive, and that using the pumps during the rest of the year would still allow the wetlands to exist.
The EPA then restored the veto under President Biden’s administration. But in 2023, the Corps agreed to work with the EPA on flood-control solutions which, as it turned out, still included the pumps.
While the public comment period is over and the project appears to be moving forward, the Corps has yet to provide a cost estimate for the pumps, which are likely to cost at least hundreds of millions of dollars. A 19,000 cubic-feet-per second, or cfs, pumping station in Louisiana cost roughly $1 billion to build over a decade ago, and the Corps is proposing a 25,000 cfs station for the South Delta.
Corps spokesperson Christi Kilroy told Mississippi Today that the project will move onto the engineering and design phase, during which the agency will come up with a price estimate. Mississippi Today asked multiple times if it’s unusual to wait until after the public has had a chance to comment to provide an estimate, but the agency did not respond.
Under the project’s new design, the pumps will turn on when backwater reaches the 90-foot elevation mark anytime during the designated “crop season” from March 25 to Oct. 15. During the rest of the year, the Corps will allow the backwater to reach 93 feet before pumping.
In last Friday’s decision, the Corps wrote that the project would have “less than significant effects (on wetlands) due to mitigation.” The project’s mitigation includes acquiring and reforesting 5,700 acres of “frequently flooded” farmland to compensate for wetland impacts.
In a statement sent to Mississippi Today, the EPA said that the “higher pumping elevations” — the Corps’ previous proposal started the pumps at 87 feet — and the “seasonal approach” to pumping will reduce the wetlands impact.
However conservationists, including a group of former EPA employees, are not convinced. The Environmental Protection Network, a nonprofit of over 650 former EPA employees, wrote in August that the latest proposed pumping station “has the potential to drain the same or similar wetlands identified in the 2008 (veto) and potentially more.”
“Similar to concerns EPA identified in the 2008 (veto)… EPN’s concerns with the potential adverse impacts of this version of the project remain,” the group wrote.
A coalition of other groups — including Audubon Delta, Earthjustice, Healthy Gulf and Mississippi Sierra Club — remain opposed to the project, arguing that hundreds of species rely on the wetlands during the “crop season” for migration, breeding and rearing.
“This action is a massive stain on the Biden Administration’s environmental legacy and undermines EPA’s own authority to protect our nation’s most important waters,” the coalition said in a statement last Friday.
When asked about potential legal challenges to the Corps’ decision, Audubon Delta’s policy director Jill Mastrototaro told Mississippi Today via email: “This project clearly violates the veto as we’ve documented in our comments. We’re carefully reviewing the details of the announcement and all options are on the table.”
In addition to the pumps, the project includes voluntary buyouts for those whose properties flood below the 93-foot mark, which includes 152 homes.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1906
Jan. 22, 1906
Pioneer aviator and civil rights activist Willa Beatrice Brown was born in Glasgow, Kentucky.
While working in Chicago, she learned how to fly and became the first Black female to earn a commercial pilot’s license. A journalist said that when she entered the newsroom, “she made such a stunning appearance that all the typewriters suddenly went silent. … She had a confident bearing and there was an undercurrent of determination in her husky voice as she announced, not asked, that she wanted to see me.”
In 1939, she married her former flight instructor, Cornelius Coffey, and they co-founded the Cornelius Coffey School of Aeronautics, the first Black-owned private flight training academy in the U.S.
She succeeded in convincing the U.S. Army Air Corps to let them train Black pilots. Hundreds of men and women trained under them, including nearly 200 future Tuskegee Airmen.
In 1942, she became the first Black officer in the U.S. Civil Air Patrol. After World War II ended, she became the first Black woman to run for Congress. Although she lost, she remained politically active and worked in Chicago, teaching business and aeronautics.
After she retired, she served on an advisory board to the Federal Aviation Administration. She died in 1992. A historical marker in her hometown now recognizes her as the first Black woman to earn a pilot’s license in the U.S., and Women in Aviation International named her one of the 100 most influential women in aviation and space.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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