Guardian Alert: WLBT covers HB 605

Mississippi’s retired public employees are raising a red flag about a bill pending at the State Capitol

By Courtney Ann Jackson
Published: Feb. 6, 2023, at 7:21 PM CST

JACKSON, Miss. (WLBT) – Retired public employees are keeping a close watch on the State Capitol. They’re worried a pending bill would insert the legislature into some decision-making for the retirement system.

For some background, public employees around the state pay into Public Employees’ Retirement System of Mississippi, known as PERS. Right now, decisions about how much employees’ current contributions are made by the PERS board. But pending legislation could put the legislature in the middle of those decisions.

House Bill 605 isn’t the same as when Rep. Charles Busby first filed it.

“I filed House Bill 605 as a bill to allow teachers that have retired, come back and teach in the classroom and still draw their retirement,” said Busby during a personal point of privilege on February 1.

Busby started getting flooded with calls and messages, and that’s when he realized it was “hijacked completely.”

“I was never told about it,” Busby said.

The bill went from 30 to 10 pages when it was amended in the appropriations committee. Now its aim? Require the legislature to sign off on any future contribution increases by PERS. It was those changes that spurred the calls to action from the Mississippi Retired Public Employees’ Association.

“When we retired, we were told what our benefits were gonna be,” said retiree and MRPEA board member Sam Valentine. “And we could plan our retirement income around that until, like, the day of our death.”

Retiree and MRPEA board member Sam Valentine says the board makes decisions based on financial advice to maintain the health of the system.

“We’ve got a lot of people who are retired that are elderly,” explained Valentine. “And to hear that there’s something jeopardizing their system is very upsetting to those individuals. And that’s one of the things that we don’t want to happen and hopefully will not happen.”

The association’s past president says the impacts could go beyond those who’ve already retired.

“To be quite honest, and I’m not saying that they necessarily would…but if the legislature would choose not to continue to make the contributions necessary to keep the system actuarily sound, it’s actually going to have more potential bad things happen to the people that are currently working,” described Ed LeGrand, MRPEA Past President.

The PERS board did vote in December to increase the employer contributions from 17.4 to 22.4% beginning in July of next year.

We received this statement from PERS Executive Director Ray Higgins.

“We are closely watching HB 605 and all other legislation that could affect PERS. The PERS Board has historically always acted as fiduciaries in the best interest of the membership, which they did recently when raising the employer contribution rate based on actuarial recommendations. Long term, ensuring the System is adequately funded is critical for those we serve. We are always willing to work with the Legislature, membership, and others for the betterment of PERS.” —Ray Higgins, PERS Executive Director.

The bill hasn’t been taken up by the full House yet. They have until Thursday to do so in order for it to clear the next deadline.

See the article on WLBT’s website below.

https://www.wlbt.com/2023/02/07/mississippis-retired-public-employees-are-raising-red-flag-about-bill-pending-state-capitol/?outputType=amp

Guardian Alert: Concerning House Bill 605 Passes today’s Deadline

We just received word that House Bill 605 has passed the appropriations committee. If voted into law, this bill would allow for the legislature to have veto power over the PERS board. It would greatly hinder the PERS board’s ability to make fiscally responsible decisions for the system, as well as allow the legislature to tie the board’s hands when making contribution increases. We cannot overstate how dangerous this would be for the health of the system. We ask you to call your legislators and let them know that as a PERS member, you do not support this bill! This will affect ACTIVE members just as much as it would retired members as it would jeopardize the health of the system. Please share this with your friends and neighbors and encourage them to call as well!

January 2021 Legislative Alert

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.

Guardian Alert: July 7, 2020

 
Tuesday, July 7 Updates

I hope everyone had a safe and happy weekend celebrating this country’s Independence Day. We are watching as much of the state issues mask orders and COVID numbers continue to rise. This week, we give you an update on what schools could look like, in the wake of this pandemic

We also bring you an update from the PERS board meeting, as well as the outcome of the most recent PERS Board Election.

Thank you for letting us serve you!

Emily Pote

MRPEA Executive Director

MRPEA Attends the June 23 PERS Board Meeting

Randy McCoy nominated for vice chair and Chris Howard was elected as the State Representative. Karen Lipscomb and Judy Clark confirmed to serve on the Insurance Committee. PERS will be doing actuarial study on the system this fiscal year.

State Auditor conducting performance audit, and engaging PEW to conduct stress tests on our system. The current rate of return for PERS is 7.75, and the audit will most likely assume a lower rate.

Possible future legislation on gambling proceeds from truck stops being dedicated to PERS.

PERS took a preliminary vote on changing the regulation allowing PERS retirees to be seated in the Legislature without the loss of retirement benefits. Final vote to be taken at next Board meeting on August 25, 2020.

The Attorney General has released an Opinion stating that if your annual salary fixed by the MS code it cannot be reduced or waived. This opinion was accompanied by a letter from the AG recommending revocation of the regulation.

PERS has been advised that this situation cannot be fixed via a change in regulations, that it must be done via a law change. A precedent already exists in that retired local gov. employees can hold municipal and county elective positions without harming their retirement.

We will continue to monitor the situation with the AG’s opinion as we do all thing that affect PERS and YOUR retirement!

PERS Board seeks nominations for municipal representative
June 25, 2020

The PERS Board of Trustees is seeking candidate nominations for its municipal employee representative position. The six-year term will begin January 1, 2021, and end December 31, 2026.

Deadline for nominations is 5 p.m., July 27, 2020.

Click here for Nomination Packet

 
Chris HowardHoward re-elected to PERS Board of Trustees, McCoy voted vice chair Chris Howard, of Madison and executive director of the Mississippi Department of Rehabilitation Services, has been re-elected to the Public Employees’ Retirement System of Mississippi (PERS) Board of Trustees as one of its two state employee representatives.

At its June 23 meeting, the Board certified the runoff election results between Howard, who has served as a state employee representative since July 1, 2014, and Misti Munroe, Mississippi Legislative Budget Office chief revenue officer. Howard’s new six-year term will run from July 1, 2020, to June 30, 2026. He begins his term by transitioning from vice chair to chair of the Board for fiscal year 2020, which begins July 1. He succeeds Dr. Brian Rutledge, University of Mississippi Medical Center chief of staff, as chair.

Randy McCoyDr. Randy McCoy, retired superintendent of Tupelo Public School District and one of two retiree representatives on the Board, was elected by the Board June 23 to serve as vice chair for fiscal year 2020.

The chair presides at board meetings, appoints members of board committees, and can call special meetings. The vice chair transitions to chair after one year and serves as chair when the current chair is absent. 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/junior 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.

State unveils options for K-12 schools to reopen in the fall

by Kayleigh Skinner, Mississippi Today
June 11, 2020

This week the Mississippi Department of Education released guidelines for how K-12 schools should reopen in the fall.

In a document titled “Considerations for reopening Mississippi Schools,” the department outlines a three month timeline with information for school districts to consider as they plan for the upcoming school year. These guidelines were created with a group of 10 superintendents across the state, and list three options for how schools should reopen: traditional, hybrid, or virtual. The guidelines will be updated every three months depending on the coronavirus and its effects. The Institutions of Higher Learning already made the decision that the state’s public colleges and universities will “resume traditional operations” in the fall.

Traditional reopening would mean students are physically present in school so long as districts can continue to follow Centers for Disease Control and Prevention and state department of health guidelines. This plan suggests schools make adjustments to transportation, screen students daily, and limit student movement and gatherings so that social distancing is possible. Additionally, schools are encouraged to create a plan for students and staff who are unable to come to school due to health issues.

A hybrid reopening would mean some combination of in-person instruction and distance learning. Schools could adopt “A/B days,” meaning students would be split into two groups which report to school on alternating days. The guidelines also have the option for elementary students to report to school for in-person instruction, while students in higher grades complete their work through distance learning. Schools could also do some combination of the two options, the guidelines state.

Virtual reopening would have students return to school entirely through distance learning, but the guideline warns that districts must take into consideration whether their community has sufficient internet bandwidth and can mitigate “the digital divide among families.”

The state is not mandating which option districts take. “Local school districts are responsible for designing school schedules that best meet the needs of their communities,” the department said in a press release. 

At a Mississippi State Board of Education meeting Thursday, members suspended several policies to help school districts meet requirements and choose one of these three avenues.

For example, in the past the department has required that all students receive 5.5 hours of instructional time per day. That has now been reduced to 4 hours. A similar exception was made for high schools that use Carnegie unit credits to measure course completion. Previously, there was a 140-hour instructional requirement for one-credit courses and a 70-hour instructional requirement for half-credit courses. Now, that will be waived as long as districts, “develop a plan to ensure students master the course content,” the press release states. 

Those plans must be approved by districts’ local school boards and posted to their websites by September 30. 

Also, school districts no longer have to seek a waiver from the State Board of Education or Commission on School Accreditation if they can’t comply with student-teacher ratios. 

Some policies that have been in place will remain for the 2020-2021 school year —districts still have to establish graduation requirements that meet the state’s minimum graduation requirements. 

Before the first day of school, local school districts also have to create criteria for whether a student can move on to the next grade as well as come up with “uniform grading policies,” MDE stated in its press release.  

If the previous school year is any indication, a hybrid return will likely be popular option. During the 2019-20 school year when school buildings closed because of the pandemic, the department surveyed school districts on how they were delivering instruction. In all, 13 said they were using distance or virtual learning, 16 were sending home packets, and 134 were using a blended approach of the two methods. Five districts said they were using alternative approaches, such as phone calls and peer tutoring, according to the department.

Going entirely virtual is a complicated and expensive undertaking the department is actively working on, as the start of a new school year is roughly eight weeks away. Online learning is not currently a reality in many districts. Census Bureau data shows that statewide, almost one-fifth of Mississippi households do not have a computer and nearly one-third don’t have broadband, the federal standard for internet speeds.

Last month, State Superintendent Carey Wright presented a digital learning plan to the Mississippi Legislature which highlighted five main areas: technology, curriculum, training, computer security and internet connectivity as resources needed for districts to fully implement a digital learning plan. Requirements would include roughly 300,000 laptops or tablets, 40,000 WiFi hotspots, eight high-quality curricula programs, training for students and families, professional development for 30,000 teachers and 450 technology staff, device management support and software licenses, costing nearly $250 million. 

The state received millions in federal funds via the Coronavirus Aid, Relief and Economic Security Act which the department intends to use to help pay for this. Gov. Tate Reeves received $34.6 million in a specific fund to be used for education, and the state’s K-12 schools received $169.8 million through the Elementary and Secondary School Emergency Relief Fund. Separately, the Mississippi Legislature has control of $1.2 billion in federal funds to be used for coronavirus relief efforts. 

To pay for the $250 million price tag, the department has requested $200 million from the Legislature’s portion of federal funds. The Legislature is still in session working out the state budget, so whether the department is granted those funds remains to be seen.

To pay for the rest, $33 million would have to come from local school districts’ portion of ESSER funds; $5 million from the department’s CARES Act funds; $5 million from the governor’s portion of education CARES Act funds, and $7 million in private funds were requested from the Mississippi Alliance of Nonprofits, according to the department.

“This is such a wonderful opportunity for the state, and…absent COVID-19 and the funding that comes with that, we probably would never have seen this kind of investment in the school districts of Mississippi in my lifetime,” said board member John Kelly during the Thursday meeting.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Guardian Alert: June 30, 2020

Tuesday, June 30 Updates

Well, we’ve officially made it halfway through 2020. As we look towards the next half of this year, we hope that everyone is staying healthy and following all health guidelines and suggestions. Many cities now have mandated face mask orders due to our state’s rising COVID-19 numbers. We continue to watch and listen to our local, state, and federal officials for guidance in this trying times.

Thank you for letting us serve you!

Emily Pote

MRPEA Executive Director

 

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Retirement

Scammers Targeting Retirement Savings

The CARES Act of 2020 provides significant relief for businesses and individuals affected by the COVID-19 pandemic. This includes allowing retirement investors affected by the coronavirus to gain up to $100,000 of their retirement savings without being subject to early withdrawal penalties. Unfortunately, deceitful promoters have used these CARES Act benefits to encourage investors to take money from their 401(k)s or traditional IRAs, not for current emergency financial needs, but to buy investments (often riskier ones) in an account at a firm the promoter recommends or in the investor’s existing account.

If you are considering making an investment with retirement money, the Financial Industry Regulatory Authority urges you to consider these factors:

  • You may pay high fees to the promoter. Ask if there are any up front or ongoing fees or commissions before investing.
  • It may be difficult or costly to sell the promoted investment. Before investing, ask if there are fees or restrictions on early withdrawal or sale.
  • Selling at low prices locks in your losses.
  • You may lose out on compounding.
  • You may significantly increase your risk because you are investing with borrowed funds from your 401(k).
  • Eligibility and availability are designed to address hardships, not increase investment options. People who are eligible are those whose spouse or dependent is diagnosed with COVID-19, and who has experienced financial consequences from COVID-19.

Click here for more tips and resources.

 

 

Mississippi COVID-19 Update

Reported Monday, June 29

  • New cases of COVID-19: 675

Positive test results reported to MSDH as of 6 p.m. Sunday, June 28. Tests may have been made during the past several days, and represent individuals who became ill a week ago or more.

  • New deaths reported: 20*

* 18 of these deaths occurred between May 5 and June 22, and were identified from death certificate reports.

COVID-19 related deaths reported to MSDH from hospitals, medical examiners and coroners.

Long-Term Care Facilities

  • New LTC cases: 27

New cases, included in the total case count for 6/29, among residents of long-term care or residential facilities.

  • Active outbreaks: 87

An outbreak is considered any COVID-19 case in the staff or residents of a long-term care or residential facility.

Hospitalizations

  • Persons currently hospitalized in Mississippi for confirmed COVID-19: 513
  • Persons currently hospitalized in Mississippi for suspected COVID-19: 206

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State Trend

Totals of all Mississippi cases and deaths since March 11, 2020.

  • Total COVID-19 cases: 26,567
  • Total COVID-19 related deaths: 1,059

What You Can Do

  • Social distancing is still critical to stop the spread of COVID-19. Keep plenty of distance between yourself and others.
  • Wearing a mask or face covering can sharply reduce the risk of passing COVID-19 on to others.
  • Most people spreading COVID-19 do not know they are infected.
  • Remind others that precautions remain essential, and set an example by your actions.

Find Out More

 

Public retirees likely to lose ability to serve in Legislature without losing retirement benefits

by Bobby Harrison, Mississippi Today
June 4, 2020

The board that governs Mississippi’s public employees retirement system could revisit and reverse its ruling that retired educators and state and local government retirees can serve in the Legislature while continuing to draw their pensions.

The Public Employees Retirement System Board had requested an IRS ruling on whether its decision could negatively impact the federal tax exempt status of the system, which could be detrimental for the system and its members.

The board had voted in 2019 to change its regulation to allow the public retirees to serve in the Legislature and draw their pension as they do in other states, such as Florida. But in making the change, board members said they needed approval of the IRS.

In a letter sent to the PERS Board in early May, officials at the IRS said: “In this particular instance we have determined that we cannot issue a ruling based on the factual nature of the matter involved.”

When contacted, the IRS refused to provide any additional details. And PERS officials only referenced the letter and indicated the issue would be discussed by its governing board as early as its next regular meeting on June 23.

Members of the House leadership believe the IRS ruling – or lack of ruling – means that the PERS Board will have to reverse its ruling allowing public retirees to serve in the Legislature and draw their pension or risk losing the tax exempt status.

“My understanding of the issue is the absence of the IRS endorsement changes everything,” said House Speaker Philip Gunn, R-Clinton. “It puts the tax exempt status of the plan in jeopardy.”

House Pro Tem Jason White, R-West agreed. He said if a request is made and the request is not granted: “Isn’t it the same as saying you can’t do that?”

The House leadership has opposed the change in regulation to allow public retirees to serve and draw their pension from the very beginning. Gunn argued the PERS change conflicted with existing state law.

For years, PERS’ regulations prevented public employees from serving in the Legislature and drawing their pension. But in late 2018, former Attorney General Jim Hood issued an opinion – based on a question from an elective official – saying that public employees could serve in the Legislature and draw their pension as long as they received only a portion of their legislative pay. Public employee retirees already can work part time for other governmental agencies. Hood ruled that they also should be allowed to serve in the Legislature.

In the 2019 election, four public retirees – all Republicans – were elected to the House with the expectation that they could draw their pension while receiving partial legislative pay. But the House leadership – despite the PERS change in regulation – refused to reduce the pay of the four members, meaning they were ineligible to receive retirement pay.

Two of the four members – Ramona Blackledge, former Jones County tax assessor/collector, and Billy Andrews, former Lamar County judge – already have stepped down from the legislative seats. The other two, Jerry Darnell of DeSoto County and Dale Goodin of Richton, both retired educators, are still serving and forgoing their monthly retirement benefits.

“It will eventually be resolved,” Goodin said. “You can’t continue to take people’s rights away.” Goodin and others have argued not allowing retired public employees to serve and draw their pension takes away a right from them that others, such as retirees from the private sector, have.

When PERS board members changed the regulation, they did so with the understanding that they might have to rescind the change if not approved by the IRS.

Retired public employees in other states are allowed to serve in their legislatures without their system being penalized by the IRS. The four elected officials told Mississippi Today this year that they do not understand why Mississippi is different.

For instance, Florida law says specifically “any retired state employee who is presently drawing retirement benefits under any state retirement system may, as any other citizen, serve in the Legislature without affecting in any way his or her retirement status or the receipt of retirement funds while a member of the Legislature.”

PERS Executive Director Ray Higgins said earlier the IRS might allow public employee retirees to serve in the legislature in other states without losing their pension and not allow it in Mississippi because “each state has different laws, regulations, and retirement plan designs.”

Most employees of state and local governments, public schools K-12 and university employees, participate in Mississippi’s retirement system, contributing 9 percent of their salary for retirement benefits.

According to PERS data, the average benefit is more than $23,100 annually for the more than 100,000 people drawing benefits. In total, more than 300,000 are in the public employees retirement system either drawing benefits, having paid into the system or currently paying into the system.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.