PERS Announces Vote to Increase the Amount of Employer Contributions

PERS

It was a move that everyone who has followed the problems of the Public Employees’ Retirement System (PERS) of Mississippi has known was coming for years. PERS recently announced its board of trustees voted to increase the amount of employer contributions from worker salaries for the pension fund to 17.4 percent, starting July 1, 2019.

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PERS of Mississippi Has Unattainable Goals

PEER Committe of Mississippi

A recently released report by the Performance Evaluation and Expenditure Review (PEER) Committee of the Mississippi Legislature attempts to address the fiscal issues with Mississippi’s pension system for state, municipal and county employees, but doesn’t go far enough to offer solutions to fix the ailing fund. The report mentions that the Public Employees’ Retirement System of Mississippi’s fiscal goal of reaching the 80 percent funding ratio by 2042 is not attainable.

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A BPF View – PERS Fiscal Time Bomb

A BPF View - PERS Fiscal Time Bomb

According to data from the Public Employees’ Retirement System of Mississippi, the annual cost of living adjustment (COLA) given to retirees, often in a year-ending lump sum known as the “13th check,” is threatening to hollow out the pension fund’s finances. 

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State pension fund recovery stalled

Pension

Actuaries reported in October that the PERS funding percentage — the share of future obligations covered by current assets — ticked down to 60.4 percent from 61 percent the year before.

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The Pension Sink Is Gulping Billions in Tax Raises

Pensions

Remember that ‘temporary’ tax hike for California schools? Most is now going to public worker retirements. By STEVE MALANGA | www.wsj.com | January 13, 2015 California Gov. Jerry Brown sold a $6 billion tax increase to voters in 2012 by promising that nearly half of the money would go to bolster public schools. Critics argued that much…

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