Category Archives: News

Thank YOU MRPEA Members!

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I would like to take this opportunity to thank each of you for your membership and to welcome all of our new members to the Mississippi Retired Public Employee Association. MRPEA needs every member we can get to strengthen our voice as there is power in numbers. I am asking each of you to continue to reach out to people you know who are members of the Mississippi Public Employee Retirement System and invite them to become members of MRPEA. It may be someone you go to church with, work with, or a family member. The reason most people are not current members is that they are probably unaware that our organization exists.

There is much work to be done to ensure that our organization is moving forward and growing. If you have a desire to play a role above and beyond membership in making that happen, feel free to reach out to our Executive Director, Emily Pote, and let her know. The Legislature is nearing the end of this year’s Regular Session. I know many of you contacted your local Senator or Representative and expressed your desire to continue the current structure of our benefits. Personal contact with these public servants is very important and key to the success of our mission to protect the financial security and benefits of PERS for current and future retirees.

As the pandemic seems to have quieted somewhat, it is my hope that we are able to hold an annual conference this year. We are currently working on plans to do this in the event it is possible. We will attempt to create an atmosphere that is safe as we all need to remain cautious. If a conference is able to take place, I am hopeful that many of you will be able to attend so we can network together and learn from one another.

The last two years have been very different and trying for all of us. Many of our friends and loved ones have tested positive and some have passed away. Our prayers are with everyone going forward and wish you the very best.

Steven Allen, MRPEA President

Welcome New MRPEA Members

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I would like to take this opportunity to thank each of you for your membership
and to welcome all of our new members to the Mississippi Retired Public Employee
Association. MRPEA needs every member. we can get to strengthen our voice as there is
power in numbers. I am asking each of you to continue to reach out to people you know
who are members of the Mississippi Public Employee Retirement System and invite them
to become members of MRPEA. It may be someone you go to church with, work with, or
a family member. The reason most people are not current members is that they are probably
unaware that our organization exists.
There is much work to be done to ensure that our organization is moving
forward and growing. If you have a desire to play a role above and beyond
membership in making that happen, feel free to reach out to our Executive Director,
Emily Pote, and let her know. The Legislature is nearing the end of this year’s Regular
Session. I know many of you contacted your local Senator or Representative and
expressed your desire to continue the current structure of our benefits. Personal
contact with these public servants is very important and key to the success of our
mission to protect the financial security and benefits of PERS for current and future
retirees.
As the pandemic seems to have quieted somewhat, it is my hope that we
are able to hold an annual conference this year. We are currently working on plans
to do this in the event it is possible. We will attempt to create an atmosphere that
is safe as we all need to remain cautious. If a conference is able to take place, I am
hopeful that many of you will be able to attend so we can network together and
learn from one another.
The last two years have been very different and trying for all of us. Many
of our friends and loved ones have tested positive and some have passed away. Our
prayers are with everyone going forward and wish all of you the best.

—Steven Allen, MRPEA President

Summary of House & Senate Bills

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House Bill 531 would:

  • Eliminate state income taxes for most taxpayers in 2023 and phase it out totally within about a decade
  • Increase the sales tax on most retail items from 7% to 8.5%, an increase of 20%.
  • Cut the grocery tax eventually from 7% to 4%
  • Cut car tags in half, by using state tax dollars to subsidize local government car tag fees.

Senate Bill 3164 would:

  • Phase-out the 4% state income tax bracket over four years. This would mean people would pay no state income tax on their first $26,600 of income, a savings of about $50 a year.
  • Reduce the state grocery tax from 7% to 5%, starting in July.
  • Provide up to a 5%, one-time income tax rebate in 2022 for those who paid taxes. The
    rebates would range from $100 to $1,000.
  • Eliminate the state fee on car tags going into the general fund, which would be about $5 off the cost of a new tag, $3.75 for renewals.

2022 Legislative Update

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House Bill (HB) 531 would increase the sales tax that all Mississippians pay on
most items by 20% raising the rate from 7% to 8.5%. The House plan would eliminate
state income taxes for most taxpayers in 2023 and phase it out totally in future
years. The state income tax accounts for 1/3 of general fund revenue at present.
If you are at least 59 years old, half Mississippi does not impose income tax
on your retirement income. This includes distributions from 401ks, IRAs, pensions, deferred compensation plans, and Social Security and applies to all Mississippi retirees (in both the private and public sectors). Because your retirement income is already exempt from state income tax, retirees living on a fixed income from these sources will receive no benefit from the elimination of the state income tax while paying 20% more sales tax on most items under HB 531.

The Senate has also filed a tax cut bill: SB 3164. Overall the Senate plan has a number of elements that could benefit PERS members and other retirees but does include a phase-out of the 4% state income tax bracket and up to a 5% one- time tax rebate in 2022 only for those who paid income taxes. Further erosion of the state income tax revenues is not in the best
interest of PERS members. Tax rebates which can be implemented periodically
based on available revenues represent a more prudent approach to managing the
state’s finances. However, these rebates should be made to all Mississippians who filed a tax return, not just those who paid income tax. This would benefit all retirees including PERS members who pay substantial amounts in sales, local and other taxes each year.

Recommended Action

Oppose HB 531. Request amendment of SB 3164 by eliminating the
proposed phase-out of the 4% income tax bracket and making the tax rebate in 2022
available to all Mississippians filing a tax return, not just those who paid income tax.
Contact Speaker of the House, Phillip Gunn, Ways and Means Chairman, Trey Lamar, Lieutenant Governor, Delbert Hosemann, Senate Finance Chairman, Josh Harkins, and your local Representative and Senator at the Capitol Switchboard (601) 359-2220.

What the State Economist’s Office says

The State Economist’s Office has studied the House tax cut plan and
determined that by 2032 it would result in a loss of population and a reduction
in employment and personal income in Mississippi. By 2035 there would be a
reduction in state gross domestic product. These findings have negative implications
for current and future PERS retirees and for the state as a whole.

What state business leaders say

“The Mississippi tax environment was not high profile nor even discussed
significantly as a priority,” said a report released by the Mississippi Economic
Council at the state Capitol on Wednesday, based on dozens of meetings and hundreds
of surveys of business leaders across the state last year.”
“A businessman raised the topic (at one meeting) and dismissed it as a bad
idea (a distraction issue, but not really a hindrance to most businesses).”
State business leaders consider the lack of skilled workers, Mississippi’s image, and problems from the pandemic far more pressing issues.

LEGISLATIVE ALERT: House Bill 1439 resurrected in Senate Bill 2971

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THE BILL: The controversial tax bill, HB1439 died on the Senate committee calendar on Monday, but was “miraculously” resurrected in SB 2971, a bond bill which I am assured is not relevant to the tax bill and to which there should have been opposition. This bill has very negative implications for retirees as it raised the sales tax on many of the items, leaving less money for those with fixed incomes.

OF NOTE: This bill was introduced by Speaker of the House Phillip Gunn who is no friend of PERS and is controlled by the national organization, ALEC, whose mission is to do away with public pension plans.

HOW TO HELP: This bill is before the House so call your representatives at (601) 359-3770, the general switchboard number or email them at “first name initial last name@house.ms.gov”. Please do this as soon as possible. Thanks for your help with protecting our PERS benefits.

LEGISLATIVE ALERT: Senate Bill 2296 UPDATE

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Senate Bill 2296 has now cleared the Senate and has been transmitted to the House Workforce Development Committee for consideration. The deadline for the Committee to Report this bill is Tuesday, March 2, 2021.

THE BILL: Senate bill 2296 is requesting an exemption from statutory salary caps for the Director of Workforce Development, but for the first time ever, it is also requesting exemption from having to pay into the retirement system.

WHY WE ARE WORRIED: While on the surface, the bill only affects one individual, it sets a dangerous precedent for future requests to exempt individuals, groups, job classes, etc., with the effect of the retirement fund being reduced. It could lead to going from the defined benefit program we currently have to a 401K, or optional retirement program that many legislators support.

WHAT YOU CAN DO: Once again, we are asking you to contact your House Members and the members of the House Workforce Development Committee and ask them to remove the language which allows this person to opt-out of paying into the retirement system. The future of our fund could depend on it.

HOUSE WORKFORCE DEVELOPMENT COMMITTEE:
Donnie Bell, Chairman
Kenneth Walker Vice-Chairman
Otis Anthony
Sam Creekmore, IV
Ronnie C. Crudup
Oscar Denton
Kevin Felsher
Jill Ford
Dale Goodin
Zakiya Summers
Rickey Thompson
Joseph Tubb

You may email any House Member at “first initial.last name@house.gov” or call 601-359-3770 and ask the person who answers to give your House Member a message. Thanks so much for protecting everyone’s retirement benefits.

February 2021 Legislative Alert

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LEGISLATIVE ALERT:
Once again, there is a bill that passed the Senate today, SB 2296, which could have long-range negative implications for retirees.

THE BILL: Senate bill 2296 is requesting an exemption from statutory salary caps for the Director of Workforce Development, but for the first time ever, it is also requesting exemption from having to pay into the retirement system.

WHY WE ARE WORRIED: While on the surface, the bill only affects one individual, it sets a dangerous precedent for future requests to exempt individuals, groups, job classes, etc., with the effect of the revenue stream going into the retirement fund being reduced and could lead to going from the defined benefit program we currently have to a 401K, or optional retirement program that many legislators support.

WHAT YOU CAN DO: The bill will come up again for reconsideration on Monday, February 15. Once again, I am asking you to contact your legislators and the Lt. Governor and tell them to remove the language which allows this person to opt-out of paying into the retirement system. The future of our fund could depend on it. You may email any legislator at “first initial.last name.senate.gov” or call 601-359-3770 and ask the person who answers to give your senator a message. Thanks so much for protecting everyone’s retirement benefits.

January 2021 Legislative Alert

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LEGISLATIVE ALERT
Sen. Josh Harkins, (R), Rankin County has introduced Senate Bill 2726 which would bring forward provisions of the PERS law for purposes of a possible amendment. The bill does not specify what the amendment may be, but if it is brought up in the Finance Committee, which Senator Harkins chairs, anyone on the committee can offer any amendment to the law including:

  • Changes to the COLA;
  • Changes from a defined benefit program to a 401K for new employees; or
  • ANY other change anyone on the committee would like to see made.

This is a dangerous bill for PERS members since it does not specify exactly what the bill is intended to do, but has the potential to do a great deal of damage to PERS.

WHAT TO DO: Please contact Sen. Harkins at (601) 359-3770, and let him know MRPEA does not want this bill to be brought out, ESPECIALLY those who live in Rankin County. You will be leaving a message with whoever answers the phone, You may also email Senator Harkins at jharkins@senate.ms.gov.

WHAT TO SAY: Be sure to mention that the bill opens PERS law for possible amendment as well as giving the bill number (SB 2726).

ARE THERE OTHER BILLS I SHOULD WORRY ABOUT: Five other bills have been introduced dealing with various PERS issues which also do not need to be brought out because they also open PERS law up for possible amendment.

WHO SERVES ON THE SENATE FINANCE COMMITTEE:

  • Senator Chris Johnson,
  • Senator Juan Barnett,
  • Senator Jason Barrett,
  • Senator Barbara Blackmon,
  • Senator David Blount,
  • Senator Nicole Boyd,
  • Senator Hob Bryan,
  • Senator Joel R. Carter, Jr.,
  • Senator Chris Caughman,
  • Senator Lydia Chassaniol,
  • Senator Jeremy England,
  • Senator Joey Fillingane,
  • Senator John Hohrn,
  • Senator David Jordan,
  • Senator Dean Kirby,
  • Senator Chris McDaniel,
  • Senator Chad McMahon,
  • Senator David Parker,
  • Senator Derrick T. Simmons,
  • Senator Melanie Sojourner,
  • Senator Daniel H. Sparks,
  • Senator Joseph Thomas,
  • Senator Mike Thompson,
  • Senator Neil S. Whaley, and
  • Senator Chuck Younger.

You may use the phone number above to send a message to any of these members ((601) 359-3770) or email them using their first initial, last name@senate.ms.gov.

The deadline for committees to report bills is February 11, 2021 so please contact as many of these legislators as you can prior to that time—especially Senator Harkins.

PERS Municipal Representative Candidates Elections Survey

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MRPEA surveyed the two candidates for the PERS Municipal Representative Elections. Rachel Foy completed our survey as requested while Kim Hanna replied with a written response. See both candidates’ responses below.

Rachel Foy’s Survey Response

Rachel Foy Survey

 

 

 

 

 

 

 

 

Kim Hanna’s Survey Response
I do support defined benefit plans. As a trustee, I support the cost of living adjustment as well as other benefits offered for existing, current and future employees.
However, I can only support the amended regulation 34 if there is a legislative change that would allow retirees to serve and draw their monthly retirement. I understand a legislative change would be the only way to allow this and not compromise PERS. We, the Board have already started the process of reversing the amendment based on legal advice.

I can support an increase in the contribution rate if necessary, even though this is not a PERS Board decision.

As a municipal representative with over 25 years of service, PERS is important me. My decisions have always been informed and I hope that COLA’s are not reduced by the legislature and that current and future employees, just like existing employees enjoy the benefits offered currently.

Some of the questions couldn’t be answered with a yes or no and I felt that I needed to explain some items further.

Thank you.
Kim