According to data from the Public Employees’ Retirement System of Mississippi, the annual cost of living adjustment (COLA) given to retirees, often in a year-ending lump sum known as the “13th check,” is threatening to hollow out the pension fund’s finances.
On February 29, an article in Forbes came out with an article detailing a US 2nd District Court opinion that involved Mississippi litigation outsourced by Jim Hood that involved a lawsuit involving an alleged kickback scheme.
A briefing on Mississippi’s economy given by the state economist and treasurer to leaders of the legislature on Wednesday reveal a stagnant economy and a growing debt.
Mississippi’s defined-benefit pension system — which serves most state, county and municipal employees — has $16 billion in unfunded liabilities and is far below an 80 percent funding level, considered the benchmark for a healthy pension fund.
The good news is that they lowered the investment assumption from 8% to 7.75%. The bad news is that they don’t actually expect the fund’s investments to return anywhere close to 7.75%.
Actuaries reported in October that the PERS funding percentage — the share of future obligations covered by current assets — ticked down to 60.4 percent from 61 percent the year before.
Remember that ‘temporary’ tax hike for California schools? Most is now going to public worker retirements. By STEVE MALANGA | www.wsj.com | January 13, 2015 California Gov. Jerry Brown sold a $6 billion tax increase to voters in 2012 by promising that nearly half of the money would go to bolster public schools. Critics argued that much […]
“This spells trouble for the millions of baby boomers who are quickly approaching retirement age and expect to collect the pensions promised to them by government officials,” IBD Editorials | Posted 11/19/2014 | news.investors.com State Finances: Voters in the midterm elections gave Republicans control of 31 governorships and 23 state legislatures, the most since 1929. A big reason […]
The state’s unfunded liability with PERS as a percentage of the state’s gross domestic product was third worst behind New Mexico and Illinois, according to the study by Robert Sarvis. By Steve Wilson | Mississippi Watchdog | July 21, 2014 We’ll take pension reform for a thousand. Make no mistake, Mississippi is playing “Jeopardy” with its […]
A new report on Alabama’s public pension system offers some startling facts on the system’s woes, but offers a prescription for reform that could be a blueprint for Mississippi’s system. A new report on Alabama’s public pension system offers some startling facts on the system’s woes, but offers a prescription for reform that could be a blueprint for Mississippi’s […]