In fiscal year 2011, PERS distributed $1.8 billion in benefits, 93% of which stay within the state of Mississippi. Expenditures made by PERS retirees and beneficiaries in Mississippi provide a significant, steady economic stimulus to communities in virtually every county of the state. Each dollar in retirement benefits spent by PERS retirees ripples through the state economy, creating a multiplier effect. According to a 2012 study completed by the National Institute for Retirement Security, in 2009 PERS retirement plan benefit expenditures supported 14,442 jobs in the state. Virtually every industry sector in the state benefited from increased revenues due to the injection of these retirement system dollars into the state’s economy. Federal, state and local governments also benefited, receiving $225.6 million in tax revenues that year. Finally, the study found that each dollar invested by Mississippi tax payers through employer contributions to PERS generated $3.37 in total economic activity in the state. Most expenditures made by the state do not provide that kind of return for the taxpayers.

A recent study by the National Institute for Retirement Security concluded that the cost to
deliver the same level of retirement income to a group of employees is 46% lower in a DB plan than it is in a DC plan. So how is it, then, that employers save money by moving from DB to DC plans? The study notes that employers almost always cut the average employee benefit in the process through a reduction in employer contributions. Per the study, DB plans provide a more efficient use of taxpayer funds when offering retirement benefits to state and local government employees.

To our members:

MRPEA is pleased to introduce your new web site. It provides the facts you need to understand your retirement system and educate public officials and others about the system. The site facilitates joining MRPEA and will soon have options for electronic payment of membership as well as donations.

As the 2013 legislative session approaches, I encourage each of you to remain vigilant and dedicate some personal time to supporting your retirement system with legislators from your area and statewide and local public officials in Mississippi. The site facilitates tracking of legislation, and also enables you to identify your legislators, key legislative committees and their membership along with individual member voting records. In addition it provides contact information for statewide elected officials.

It also keeps you aware of upcoming meetings and events related to MRPEA/PERS. Finally you will find convenient links to other websites to assist you as a retiree.

Have a suggestion? Contact us. We want this site to evolve in ways that will help you as members of PERS and MRPEA.

Sam Valentine

President, MRPEA