Friday, February 3 Update
Good Morning!
Update on House Bill 605: A member alert was sent out by MRPEA on January 31 regarding the dangers posed by House Bill 605 to the Public Employee Retirement System (PERS) and its beneficiaries. As of 2/2/2023 House Bill 605 has passed out of the House Appropriations Committee and sits on the House calendar. Members are urged to immediately contact their State Representative and Senator to express their concerns regarding this legislation.
What the Bill does:
–It orders that current contribution rates for employees and employers shall not be increased unless authorized by the Legislature.
–It directs PERS to present recommendations for making changes to the retirement system that would apply to future members of the system.
Background: At present, the PERS Board and staff are responsible for ensuring the financial integrity of the retirement system. A vital part of this responsibility involves reviewing and acting on reports and recommendations of the actuary hired by the Board to study and monitor the financial soundness of the system. At its meeting on December 20, 2022, the Board heard recommendations from the actuary and voted based on those recommendations to increase employer contributions during the upcoming year. This action was taken in accordance with the standard operating procedures of PERS.
Talking points when contacting legislators:
–The professional staff and Board of PERS need to make decisions to ensure the financial integrity of PERS.
–Changes do not need to be made to the PERS system that would cut benefits to retirees, now or in the future.
–Retirees oppose House Bill 605
Quick facts on PERS:
–PERS system members total 353,000.
–PERS paid $3.1 billion in retirement benefits last year.
–92 percent of all benefits paid remain in the state.
–Millions in benefit payments flow to virtually every county benefiting Mississippi’s economy at the local and state levels.
–Over the 30-year period that ended June 30, 2022, member contributions and earnings from investments provided 72% of the retirement system’s total funding.
–Each dollar “invested” by Mississippi taxpayers in the plan supports $4.50 in total economic activity in the state.
Resources:
Senators and Representatives during session – 601-359-3770
Measure Search | MISSISSIPPI LEGISLATURE (ms.gov) Read the full text of House Bill 605
Find Your State Legislators – Open States