Supporters of the proposal say city and county governments across Mississippi would be forced to raise taxes and cut employees if a bill to reduce employer contributions to the state retirement system for government employees passes. It is said that there is a possibility that House Bill 1590 was not considered. If approved by a Senate committee by this week’s deadline, it would repeal the 2% increase in employer contributions to the state Public Employees’ Retirement System that was scheduled to go into effect July 1. PERS officials said additional funding is needed as it currently has $25 billion in funding. The state has an unfunded liability because it pays monthly retirement benefits to 300,000 state retirees. “We believe that this whole thing, including this first year, this 2% increase from 17.4 to 19.4, is the beginning of an unsustainable trend in how to fund retirement plans and unburden them. Barker is president of the Mississippi League of Cities, which represents about 300 cities, towns and villages in the state. “For Hattiesburg, that means we will need to come up with about $1.5 million in new funding by the time this three-year phase begins.” “For the existing staff that we have now,” Barker said. The House-passed bill would also eliminate PERS’ existing board of trustees, which is elected by retirees, and replace it with political appointees appointed by the governor and lieutenant governor. ”The fact that we have political appointees gives us great concern. Because I don’t know what their agenda is. We know what the agenda of this board is now,” said Sam Valentine, a member of the board of trustees for the Mississippi Association of Retired Public Employees. “The failure of the Lieutenant Governor and the Senate to address the long-term sustainability of the state’s retirement system is not just for PERS retirees and plan participants, but for Mississippi taxpayers,” said House Speaker Jason White. It’s also irresponsible.” “The long-term viability of the PERS system remains a serious concern. The Senate and House must work together to find a solution. “The Senate is committed to protecting the benefits of retirees and current employees while balancing the budget,” Lt. Gov. Delbert Hoseman said in a statement. Stated. Total your funds before the session ends.
Proponents of the proposal say city and county governments across Mississippi would be forced to raise taxes and cut employees if passed to reduce employer contributions to the state retirement system for government workers. there is a possibility.
House Bill 1590, which was not considered in a Senate committee by this week’s deadline, would cancel a 2% increase in employer contributions to the state Public Employees’ Retirement System that was scheduled to go into effect July 1. PERS officials said the bill needed to be introduced. The state currently has an unfunded liability of $25 billion as it pays monthly retirement benefits to 300,000 state retirees and will need additional funding.
“We believe that this whole thing, including this first year, this 2% increase from 17.4 to 19.4, is the beginning of an unsustainable trend in how to fund retirement plans and unburden them. I just think it’s unfairly passing it on to the people, the employers,” Hattiesburg Mayor Toby Barker said.
Barker is president of the Mississippi League of Cities, which represents about 300 cities, towns and villages in the state.
PERS plans to gradually increase employer contributions by 5% over the next three years.
“For Hattiesburg, that means we will need to come up with about $1.5 million in new funding just for our existing employees by the time this three-year phase begins,” Barker said. Told.
The House-passed bill would also eliminate PERS’ existing board of trustees, which is elected by retirees, and replace it with political appointees appointed by the governor and lieutenant governor.
“The idea of having political appointees gives us great concern because we don’t know what their agenda is. We don’t know what the agenda of this board we have now. ,” said Sam Valentine, a member of the association’s board of directors. Mississippi Retired Public Employees Association.
Valentine said he believes the current board has done a great job managing and growing the fund and is looking out for retirees.
“The failure of the Lieutenant Governor and the Senate to address the long-term sustainability of the state’s retirement system is not just for PERS retirees and plan participants, but for Mississippi taxpayers,” said House Speaker Jason White. It’s also irresponsible.”
“The long-term viability of the PERS system remains a serious concern. The Senate and House must work together to find a solution,” Lt. Gov. Delbert Hosemann said in a statement. He said transparency and trust from both parties is critical as we move forward. “The Senate is committed to protecting the benefits of retirees and current employees while balancing the budget. ing.”
Barker, a former member of Congress, said he hopes Congress can provide one-time funding for PERS before the end of the session.