Mississippi’s Public Employees’ Retirement System (PERS) began operations in February 1953. As of June 30, 1982, the system, which covers state employees, teachers, employees of the state’s public schools, junior and senior colleges and, by agreement, employees of the state’s political subdivisions and juristic entities, had 119,682 members and total assets for purposes of actuarial valuation of $1,338,145,614.
In its examination of PERS’ investment policies, procedures and performance, PEER staff found that the system’s rate of return on investments for the seven-year period ending June 30, 1982, lagged behind other public and private systems and market indices. The staff attributed PERS’ poor relative rate of return to the conservatism inherent in PERS’ investments law, the conservative philosophy of the Board of Trustees, lack of adequate diversification in portfolio management styles and the system’s failure to establish explicit investment goals and to codify board policies and procedures. The report also addresses inadequacies of PERS’ annual reports in accurately reflecting the system’s investments performance and financial condition.
An addendum to the report discusses significant changes in investment policies and procedures which PERS made during the course of PEER’s review as well as an update of investment performance through the quarter ending March 31, 1983. Recommendations contained in this report address several procedural areas that should enhance PERS’s investments performance as well as the members’ understanding and perception of that performance.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.