Greetings!

I pray this message finds you doing well.

Our first MRPEA Day at the Capitol March 9 was a great success, not only in making an impression on members of the Legislature, but also in making contact with other potential members who were visting the Capitol that day! The event, a first for us, was designed to make sure our legislators know who we are and that we passionately support the Public Employees’ Retirement System of Mississippi (PERS). Our Legislative Committee members did a fabulous job in planning and preparing for the day and a special thank you goes to Legislative Committee Chairman Ed LeGrand and MRPEA Vice President Ann Thames, who led the way on this event. MRPEA Day at the Capitol went so well that we already have a date – February 8, 2017 – reserved for next year.

As Legislative Committee chairman, Mr. LeGrand sent letters to all members of the Legislature prior to the Day at the Capitol, thanking them for their service and support of our retirement benefits and inviting them to join MRPEA. Fortunately, no adverse legislation is currently pending before the Mississippi Legislature this session; however, we are keeping a watchful eye and will alert our members if we become aware of any harmful legislation.

The MRPEA Board of Director’s Organizational Review Committee, chaired by Ann Homer Cook, continues to review the overall structure of MRPEA. They are researching potential membership software options, seeking input from long-term board members, and meeting to share ideas to enhance the operation of MRPEA. The Committee’s recommendations are anticipated for the Board’s April meeting.

We recently had quite a few membership renewals and gained some new memberships, perhaps in part due to our attendance at PERS seminars across the state during the past year. Thank you to the Membership Committee, chaired by Howell Garner, and other board members for continuing to promote MRPEA.

Dr. Doss Brodnax, MRPEA district director from Starkville, recently submitted his resignation. Dr. Brodnax has done a wonderful job for many years, and we are sorry to see him go. As a result of his resignation, there is a need to fill the district director position to represent Attala, Calhoun, Chickasaw, Choctaw, Clay, Lowndes, Monroe, Montgomery, Noxubee, Oktibbeha, Webster, and Winston counties. We also have a district director vacancy for Hinds, Madison, Rankin, Warren, and Yazoo counties due to the resignation of Mrs. Hilda Westbrook earlier this year; however, we will wait to fill that vacancy until after the Organizational Review Committee has completed its assessment of the districts.

We were deeply saddened by the passing of Mr. Bill Rieves of Tupelo February 27. Mr. Rieves served for many years after his retirement on the MRPEA Board of Directors.

The Board of Directors will meet again April 11, and we will provide you with an update on that meeting as well as the status of legislation in the next newsletter, which should be mailed in late April or early May. Until then, please look for us on Facebook and Instagram. I encourage you to share posts and let others know about the good work of MRPEA.

Best,

Becky Cade, MRPEA President

The following PERS-sponsored bills remain under active consideration by the Mississippi Legislature during the 2016 Regular Session and are currently assigned to the Senate Finance Committee. Tues., Mar. 22 is the deadline for the Senate Finance Committee to take action on these bills.

House Bill 880 – Huddleston (15th) – Changes the number of years required to vest in PERS from eight years to four years for all members of PERS, regardless of the date upon which they became a member.

House Bill 899 – Huddleston (15th) – Makes numerous technical amendments to PERS law. Reference the attached unofficial summary of House Bill 899 prepared by MRPEA.

Summary of House Bill 899 (2016) as passed by the House of Representatives

House Bill 903 – Huddleston (15th) – Defines certain terms and clarifies investment options under the Government Employees’ Deferred Compensation Plan law and clarifies the administration of the Mississippi Deferred Compensation Plan and Trust, as well as the administration of any other deferred compensation plan authorized under the applicable law.

Other PERS-related bills of potential interest that remain under active consideration by the Mississippi Legislature during the 2016 Regular Session are listed below.

House Bill 114 – Gunn – Renames the PERS building the “Timothy Alan (Tim) Ford Building”

Senate Bill 2161 – Tollison – Authorizes charter schools to join PERS in order to allow charter school employees to participate in PERS.

Senate Bill 2260 – Parks – Requires forfeiture of benefits for any member convicted of a job-related felony.

Senate Concurrent Resolution 575 – McDaniel – Requests PERS to conduct a study of SLRP to determine the feasibility of closing or allowing members to opt out.

According to the National Association of State Retirement Administrators (NASRA), on a nationwide basis, pension contributions made by state and local governments account for roughly 4.1 percent of direct general spending. Current pension spending levels, however, vary widely and are sufficient for some entities and insufficient for others. The brief is available at the link below.

According to the National Association of State Retirement Administrators (NASRA), the average real rate of return among plans in the Public Fund Survey has risen since FY 01, from approximately 4.25 percent to 4.60 percent. NASRA reports that this has occurred as a result of some plans that have reduced their inflation assumption without changing their nominal investment return assumption; or reductions in inflation assumptions by an amount greater than they have reduced their nominal assumption; or both. Read the full, updated issue brief by clicking on the link below.

NASRA Issue Brief: Public Pension Plan Investment Return Assumptions

The Public Employees’ Retirement System of Mississippi (PERS) will mail ballots, biographical information, and candidate statements Mar. 8 to eligible voters for a runoff election to determine the new PERS Board of Trustees public school and community/junior college employee representative.

The candidates in the runoff are incumbent Dr. Edward Lee Childress, Corinth Public School District superintendent, and Billy Wayne Folkes, Lamar County School District director of student services. Votes must be cast by mail, phone, or online by 5 p.m. Apr. 8. Instructions on the voting process are on the ballot.

The election schedule and a sample ballot are available on the PERS website, www.pers.ms.gov.

The 10-member Board includes the State Treasurer, a gubernatorial appointee who is a member of PERS, two PERS retirees, two state employees, and one representative each of public schools and community colleges, Institutions of Higher Learning, counties, and municipalities. With the exception of the State Treasurer and the gubernatorial appointee, board members are elected to staggered six-year terms.

The following PERS-related bills remain under active consideration by the Mississippi Legislature during the 2016 Regular Session. Thurs., Mar. 3 is the deadline for action on general bills.

House Bill 114 – Philip Gunn – Renames the PERS building the “Timothy Alan (Tim) Ford Building”

House Bill 880 – Huddleston (15th) – Changes the number of years required to vest in PERS from eight years to four years for all members of PERS, regardless of the date upon which they became a member. This is a PERS-sponsored bill.

House Bill 899 – Huddleston (15th) – Makes numerous technical amendments to PERS law. This is a PERS-sponsored bill. Reference the attached unofficial summary of House Bill 899 prepared by MRPEA.

Summary of House Bill 899 (2016) as passed by House Appropriations

House Bill 903 – Huddleston (15th) – Defines certain terms and clarifies investment options under the Government Employees’ Deferred Compensation Plan law and clarifies the administration of the Mississippi Deferred Compensation Plan and Trust, as well as the administration of any other deferred compensation plan authorized under the applicable law. This is a PERS-sponsored bill.

Senate Bill 2161 – Gray Tollison – Authorizes charter schools to join PERS in order to allow charter school employees to participate in PERS.

Senate Bill 2260 – Rita Parks – Requires forfeiture of benefits for any member convicted of a job-related felony.

Senate Bill 2362 – Clarke – Provides that all special fund agencies, including PERS, will be funded through General Fund appropriation.

Senate Concurrent Resolution 575 – McDaniel – Requests PERS to conduct a study of SLRP to determine the feasibility of closing or allowing members to opt out.

The Public Employees’ Retirement System of Mississippi (PERS) is sponsoring House Bill 899, which, if enacted, would make numerous technical clarifications and administrative amendments to PERS law. Many of the proposed amendments seek to clarify the law to conform with current regulations. Click the link below for a summary of House Bill 899 as it passed House Appropriations Feb. 17. This unofficial summary was prepared by MRPEA.

Summary of House Bill 899 (2016) as passed by House Appropriations

The deadline for the full House to take action on House Bill 899 is Thurs. Mar. 3. Questions regarding PERS-sponsored legislation should be directed to PERS at 601-359-3589 or 800-444-7377.

The following is a brief recap of pending PERS-related, but not PERS-sponsored, bills that have recently been filed for consideration by the Mississippi Legislature during the 2016 Regular Session. (HB stands for House Bill; SB stands for Senate Bill.)

Questions regarding these pending bills should be directed to the principal author of the bill. Tues., Feb. 23 is the deadline for committees to take action on these bills.

Pending Bills of General Interest

HB 114 – Philip Gunn – Renames the PERS building the “Timothy Alan (Tim) Ford Building.”

HB 281 – Charles Young – Exempts active and retired public employees, who receive their compensation or retirement allowance via direct deposit, from bad check fees if the sole reason their account was overdrawn was an error in funds being deposited in their account caused by their employer or the retirement system.

Pending Bills Related to Specific Coverage Groups

HB 176 – Jeff Smith – Removes the prohibition on school board members being members of PERS.

HB 877 – Bubba Carpenter – Creates a separate retirement system for law enforcement officers, emergency management personnel, and firefighters.

SB 2161 – Gray Tollison – Authorizes charter schools to join PERS in order to allow charter school employees to participate in PERS.

SB 2691 – Fillingane – Authorize Optional Retirement Plan participants to join PERS under certain circumstances.

SB 2730 – Dean Kirby – Establishes a separate retirement system for first responders.

Pending Bills Related to Purchase of Service/Creditable Service

HB 185 – Jeff Smith – Allows certain members of PERS a brief window of opportunity to purchase creditable service at actuarial cost for service rendered as a public junior/community college trustee.

HB 855 – Trey Lamar – Allows vested members of PERS to purchase up to ten years of creditable service ar actuarial cost for service with non-PERS employers.

HB 901 – Jeramey Anderson – Allows members in the Mississippi Highway Safety Patrol Retirement System with a four-year college degree to purchase up to four years of service at actuarial cost.

SB 2043 – Robert Jackson (11th) – Appears to allow a public school teacher who transfers from one public school district in Mississippi to another to transfer any unused portion of the total sick or personal leave allowance to the new school district. Currently, such leave may only be transferred to PERS.

Bills Related to Post-Retirement Employment with a PERS-Covered Employer

HB 902 – Randy Boyd – Prohibits a PERS retiree from receiving a retirement allowance from PERS while under contract with a state agency as a consultant or advisor.

SB 2082 – Bob Dearing – Allows members of the State Legislature to retire, receive a retirement allowance, and continue in service in the Legislature under certain circumstances.

Bills Related to Forfeiture of Benefits by Convicted Felons

HB 278 – Randy Rushing – Terminates membership in PERS for any member who is convicted of a job-related felony.

HB 341 – Bill Kinkade – Suspends PERS benefits for any member who is convicted of a job-related felony until the individual has made full restitution.

HB 385 – Greg Haney – Requires forfeiture of benefits for any member convicted of a job-related felony.

HB 879 – Oscar Denton – Provides that elected officials convicted of certain felonies shall have benefits withheld until full restitution has been paid.

HB 900 – Oscar Denton – Provides that elected officials convicted of certain felonies shall have benefits suspended until full restitution has been made.

SB 2099 – Gray Tollison – Requires forfeiture of benefits for any member convicted of a job-related felony.

SB 2260 – Rita Parks – Requires forfeiture of benefits for any member convicted of a job-related felony.

The Public Employees’ Retirement System of Mississippi (PERS) has published its quarterly investment report for the quarter that ended December 31, 2015. The investment report is prepared quarterly by the PERS Investment Department. The report provides PERS’ current asset allocation, lists the top 10 holdings, gives an overview of agency investment returns, and lists the current investment managers. Questions about the report should be directed to PERS at 601-359-3589 or 800-444-7377.

PERS Investment Report

The Public Employees’ Retirement System of Mississippi (PERS) is sponsoring the following bills that have recently been filed for consideration by the Mississippi Legislature during the 2016 Regular Session. Questions regarding PERS-sponsored legislation should be directed to PERS at 601-359-3589 or 800-444-7377. Tues., Feb. 23 is the deadline for committees to take action on these bills.

House Bill 880 (pending before House Appropriations Committee) and Senate Bill 2017 (pending before Senate Finance Committee) are companion bills related to vesting that, if enacted as introduced, would change the number of years required to vest in PERS from eight years to four years for all members of PERS, regardless of the date upon which they became a member. PERS contends that a shorter vesting period might facilitate public employee recruitment and retention.

House Bill 899 (pending before House Appropriations Committee) and Senate Bill 2087 (pending before Senate Finance Committee) are companion bills related to the administration of PERS that, if enacted as introduced, would make numerous technical amendments to PERS law. One of the most significant proposed amendments within these bills provides that for periods of time after July 1, 2017, creditable service would be awarded in monthly increments rather than quarterly increments, and, for members who retire on or after July 1, 2017, creditable service for unused leave would likewise be awarded in monthly increments rather than quarterly increments. Most of the other proposed amendments seek to clarify the law to conform with agency practice and procedure and/or current regulations.

House Bill 903 (pending before House Appropriations Committee) and Senate Bill 2086 (pending before Senate Finance Committee) are companion bills related to the Government Employees’ Deferred Compensation Plan law that, if enacted as introduced, would (1) define certain terms, (2) clarify investment options, and (3) clarify the administration of the Mississippi Deferred Compensation Plan and Trust, as well as the administration of any other deferred compensation plan authorized under the applicable law. This legislation appears to have little affect on plan participants.