On June 18, 1986, the Attorney General issued an official opinion stating that the Public Employees’ Retirement System (PERS) is not a state agency within the meaning of the law creating the Central Data Processing Authority (CDPA). After receiving the opinion, PERS spent $281,000 on computer equipment without CDPA’s approval. Due to the implications of the opinion, the Joint Legislative Budget Committee asked PEER to review the issue.
This report concludes that the opinion is manifestly wrong as an interpretation of Mississippi law. The opinion cites no legal basis for its conclusions except “public policy,” the making of which is exclusively the prerogative of the Legislature. Although there is a conflict in the statutes establishing PERS and CDPA, recognized and accepted rules of statutory construction require that PERS be considered an “agency” within the meaning of the statutes which establish CDPA.
The report also discusses implications of a constitutional amendment affecting the retirement system (SCR 518). The meaning of this amendment is clear: the Legislature cannot borrow PERS; funds, nor can it increase retirement benefits without providing funding therefor. But PERS is still a creature of statute and an agency of the state-there is no change in its status in this respect. The state may continue to make restrictions on PERS’ administrative expenditures.
The report recommends that the Legislature reverse the status quo and place PERS back under the rules and regulations of CDPA.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.