MRPEA has been working to make sure YOU know the facts about YOUR retirement. Here are some points President Ann Thames collected:
- Mississippi’s total population is almost 3 million people.
- PERS membership as of June 30, 2017, was 325,000 (approximately 11 %)
- Add family members and the number doubles or more (nearly 27% if the figure is 800,000)
- 105,000 PERS members are receiving benefits (8.5%)
- Mississippi Public Employees are REQUIRED to contribute 9% of the salaries to PERS monthly with the promise of receiving retirement benefits when they are eligible to retire. This constitutes a contract with the state which must be honored. PERS benefits are earned. They are NOT an “entitlement”.
- The average retirement benefit is $23,220.
- The Cost of Living Adjustment (3% compounded annually) helps balance the effects of inflation. It is NOT an “extra” check.
- The basic PERS benefit is the same from the day a person retires until death.
Some private sector companies pay salaries and fund a pension for their employees without requiring them to pay into it. A 401K option may be available if the employee chooses to contribute. - PERS is in excellent financial condition.
- An additional employer contribution was requested to ensure funding at 100% for the next 40 years.
- PERS is currently funded at 61% for each dollar owed on liabilities through 2042.
- If your mortgage was paid and you had until 2042 to pay off the other 39%, you would consider yourself in good shape.
- Many PERS members (baby boomers) will die within the next 10-20 years
- Not as many current employees will mean fewer people drawing retirement benefits.
- PERS members contribute to the economy.
- The legislature is deliberately creating a budget “crisis” as other states have done.
- They are making a conscious decision not to fund PERS and instead take the money from state agencies who provide much-needed services to many Mississippians. (See Bobby Harrison quote in CL article Nov. 9, Legislative leaders expect modest revenue growth next year)
- Legislative leadership is following the lead of the American Legislative Exchange Council (ALEC), (located in Arlington, VA) www.alec.com, of which Speaker Phillip Gunn is a member of the board of directors, and Sen. Josh Harkins, a lieutenant of Lt. Gov. Tate Reeves is Mississippi’s State Chair.
- One of ALEC’s primary issues is pension reform which has occurred in other states using the same formula as Mississippi is using with disastrous results. (Kansas for one)