The Mississippi Retired Public Employees Association (MRPEA) represents the interests of more than 335,000 members, retirees and beneficiaries of the Public Employee Retirement System of Mississippi (PERS). We are pleased to offer these comments on PERS Regulation 34, Reemployment after Retirement. At its recent meeting on June 23, 2020 the PERS Board voted to revoke amendments to PERS Board Regulation 34 that became effective on December 17, 2019. As we understand it, Regulation 34 as amended removed the prohibition against PERS retirees continuing to receive a monthly retirement allowance while serving as a state legislator as long as the retiree 1) provides services for no more than half the normal working days or hours for the position, and 2) receives no more than half the salary, or the retiree works for a period of time that causes the retiree to receive no more than 25% of his or her average retirement compensation. The Board’s action to revoke Regulation 34 as amended was based on:

1. A letter from Attorney General Fitch to Ray Higgins dated May 20, 2020 suggesting revocation of PERS Board Regulation 34 as amended in part based on the Caldwell opinion issued by the Mississippi Attorney General’s office on May 19, 2020.
2. The Internal Revenue Service declining to issue a private letter ruling on the applicability of the Internal Revenue Service Code to PERS Board Regulation 34 as amended.
3. Advice received from the Board’s external legal advisor IceMiller on this matter.

PERS retirees represent a significant portion of the adult population in Mississippi. PERS members include not only state employees but also employees of Mississippi’s public schools, community colleges, universities, counties, cities and other political subdivisions. These individuals are committed to public service and Mississippi, understand the complexities of government and if allowed to do so, can help strengthen the Legislature by virtue of their education and diverse professional experience.

If this revocation stands, it will effectively prevent most PERS retirees from serving in the Legislature. PERS retirees are not wealthy people, on average receiving annual retirement allowances of only $24,433 in Fiscal Year 2019. While impediments exist to PERS retirees serving in the Legislature, they can serve in local government positions in Mississippi for which salaries are set by statute (for example, county boards of supervisors) without penalty of losing their monthly retirement allowance. In addition, retirees from the private and nonprofit sectors can serve in the Legislature without harming their retirement allowances at full legislative salary along with federal government retirees and government retirees from other states. Why would the State want to discriminate against PERS retirees in this manner? This situation has already had a chilling effect, impacting four retirees who were recently elected by voters in their districts to represent them in the Legislature.

We understand the difficult situation facing you and the PERS Board regarding this matter. One thing was made clear at the June 23, 2020 meeting of the PERS Board. This situation is fixable via a change in state statutes, and should be able to be done in a manner that passes muster with the IRS. MRPEA strongly urges the PERS Board to take any and all action necessary in support of removing the prohibition against PERS retirees receiving a monthly retirement allowance while serving as a state legislator. Rest assured you will have our full support.

The Mississippi Retired Public Employees’ Association (MRPEA) has published its Spring 2020 Issue of The Guardian

Catch up on current MRPEA-related news and events – as well as news related to the Public Employees’ Retirement System of Mississippi (PERS) – in this issue of The Guardian.

To maintain and supplement Mississippi’s workforce in hospitals and other governmental entities as needed in response to COVID-19, Governor Tate Reeves has signed Executive Order No. 1472. This order temporarily waives the required 90-day break in service for any Public Employees’ Retirement System of Mississippi (PERS) retiree whose effective date of retirement occurred prior to April 15, 2020.

“We greatly appreciate the efforts of Governor Reeves and other state leaders in response to the COVID-19 pandemic,” said PERS Executive Director Ray Higgins. “In consultation with the Attorney General’s Office and outside tax counsel, we assisted with the Executive Order and fully support its implementation. We believe the temporary waiver may help supplement the workforce during the state of emergency with no adverse impact to the System.”

Though the order waives the 90-day break-in-service requirement, retirees who return to work will need to adhere to one of the following so as to not suspend their retirement benefits:

Work no more than half the normal hours or days and earn no more than half the salary in effect for the position during the fiscal year or
Work for an amount of time in the fiscal year sufficient to earn up to a maximum of 25 percent of the retiree’s average compensation used for calculating retirement benefits.

Any PERS retiree who wishes to return to work with a PERS-covered employer must submit a completed PERS Form 4B, Reemployment of PERS Service Retiree Certification/Acknowledgement.

For more information, you may e-mail customerservice@pers.ms.gov with any questions.

Click here to view Executive Order 1472.

As rent and bills come due this week, many families are wondering how they will make ends meet. The health impact of the Coronavirus has been severe, but we are just beginning to see the level of damage to our family finances.

I want to thank the many businesses that have gone that extra mile to help their employees and their customers during this very difficult time, even as they suffer as well. It is heartwarming to hear about utilities suspending fees and landlords sitting down with their tenants to work out payment plans. We will get through this emergency and emerge stronger if we stand together.

I have gotten several questions about these personal financial matters and the help that may be available. I wanted to share some answers with all of you and I hope this guide is useful to you and your family as you try to navigate this crisis.
Rent and Mortgage Payments

The CARES Act, often called the Coronavirus stimulus package, included a temporary, nationwide eviction moratorium to renters whose landlords have a mortgage backed or owned by Fannie Mae, Freddie Mac, or other Federal entities. The moratorium is in place for 120 days from the date of passage, which was March 27. These landlords also can’t charge any fees or penalties for rent non-payment.

To help landlords, the Federal Housing Finance Agency announced on March 23rd that, amongst other things, Fannie Mae and Freddie Mac will offer mortgage forbearance for multi-family property owners that suspend evictions for renters unable to pay rent as a result of this crisis.

The stimulus package also prohibits lenders from foreclosing on single-family mortgages that are backed by Freddie Mac or Fannie Mae for 60 days. Borrowers with federally backed mortgage loans can also request forbearance on their payments for up to 6 months for a single-family home or 90 days for multi-family property. They will be asked to demonstrate financial hardship directly or indirectly related to the Coronavirus. Interest may accrue, but there will be no additional fees, penalties, or extra interest.

Ginnie Mae, which guarantees mortgages for 12 million homeowners, is also helping mortgage companies with a Pass-Through Assistance Program (PTAP). The PTAP will help ensure up to $100 billion in liquidity to make up shortfalls from missed mortgage payments.

I also want to thank the Mississippi Apartment Association and Mississippi Association of Affordable Housing Providers for their encouragement of apartment managers and landlords to work with renters who are unable to make their rent payments on time during this crisis. It is encouraging to see this kind of compassion and citizenship.
Stimulus Checks

The CARES Act included direct payments to citizens to help ease cash flow and financial problems caused by this crisis. The checks will be based on 2019 income taxes, or 2018 if you have not filed this year yet. Most adults will get $1,200, or $2,400 for a married couple. Those with adjusted gross income of $75,000 ($150,000 for married couples) or less will get the full amount. The amount gets phased out as incomes rise to $99,000 for individuals or $198,000 for couples Taxpayers filing as heads of household will get the full payment if they earn $112,500 or less.

An adult who is claimed as a dependent cannot get a payment of their own. For families with children, payments will include an additional $500 for each qualifying child age 16 or younger.

To see what your adjusted gross income is, look at Line 8b on your 1040. You do not have to do anything to get this check, which is technically an advance on a tax credit to your 2020 federal taxes. If the IRS has your bank information for direct deposit, it will be deposited. Otherwise, it will be mailed based on the address from your filings.

It is important to note that the IRS will NOT contact you to ask for your Social Security Number, bank account, or other personal information. If you are contacted by someone who claims to be from the IRS and asks for this information as a condition of getting your check, you should not share it.

Unemployment Benefits

With stores and restaurants closing or reducing hours as a result of this pandemic, many hard-working Mississippians are suddenly out of work. To help, unemployment insurance benefits have been expanded to include the self-employed, independent contractors, part-time workers, and even those who are only partly unemployed as a result of the Coronavirus pandemic. Determinations of eligibility will be made on a case-by-case basis.

Mississippi benefits can typically be collected for up to 26 weeks. Under the CARES Act, benefits can be extended an additional 13 weeks. Governor Reeves waived certain regular program directives, including work search requirements and the 1-week waiting period. Claims are typically effective the Sunday of the week you file your initial claim.

The maximum Mississippi benefit is typically $235 per week. But, eligible workers will get an extra $600 per week on top of State benefits This extra payment will last for up to four months, covering the weeks of unemployment ending with July 31, 2020. The extra $600 counts as income when determining eligibility for some means-tested programs, but not for Medicaid and the State Children’s Health Insurance Program.

The Mississippi Department of Employment Services (MDES) has set up a call center to help people apply at 1-888-844-3577 and it is available seven days a week. You can also apply online at www.mdes.ms.gov. MDES has also set up an email address to help answer questions: cv19@mdes.ms.gov.
Student Loans

Until September 30, 2020, there is an automatic payment suspension for any student loan held by the Federal government. Interest is frozen for that period as well. But, borrowers should check to make sure their servicers have reset their billing systems. An estimated 95% of borrowers have Federal loans.

The U.S. Department of Education will stop all requests to the U.S. Treasury to seize tax refunds, paychecks, or Social Security benefits on Federal student loans in default. It will not transfer any new accounts to its private debt collectors through September 30 as well. And, the Department of Education is returning $1.8 billion to more than 830,000 defaulted borrowers whose money was withheld on or after March 13, the day President Trump declared a national emergency.

Several private lenders are also offering help. For example, Discover Financial is allowing some borrowers to extend their payments or postpone them without accruing interest for 2 months. Citizens Bank is waiving late fees and offering forbearance for 3 months. Sallie Mae is offering a 3-month suspension of payments. And, Wells Fargo is providing a 90-day payment deferral.

401(k) and Retirement Funds

For calendar year 2020, there are no required minimum distributions from IRAs or workplace retirement savings plans. You can also borrow twice the usual amount from your 401(k) or other workplace savings plan. So, for 180 days, you can take out a loan up to $100,000, and the restriction against taking out more than half your balance is suspended. You can also withdraw up to $100,000 this year without incurring the 10% penalty.

You will have to show that your hardship is related to the Coronavirus pandemic. You can qualify if you, your spouse, or a dependent tested positive or if you experienced a negative economic consequence stemming from this emergency.

Utilities Payments

The Mississippi Public Service Commission (PSC) has suspended utility disconnections for 60 days. The PSC did remind customers that they still have a responsibility to pay current and past due bills even during this period. Entergy Mississippi, Mississippi Power Company, Atmos Energy, CenterPoint Energy, and Spire Gas are also working with the PSC to suspend fees for online convenience payments. I applaud this demonstration of good corporate citizenship in this time when people need a little extra help.

The stimulus package also included an additional $900 million for the Low Income Home Energy Assistance Program (LIHEAP).