The current Mississippi state and local governmental employer’s Public Employees’ Retirement System (PERS) contribution rate is 9.75% of payroll, 5.53% to pay off the Public Employees’ Retirement System’s unfunded, accrued liability and 4.42% for current benefits. Given the 5.53% rate, the unfunded, accrued liability will be paid off by 2019. However, it is likely that the Legislature will be asked to increase benefits before that time, which could either require increases in contributions or push back the date at which the system will be fully funded. The method of financing the amortization period raises the issue of intergenerational equity: which generation of taxpayers will bear the burden of current retirement benefits?
This report recommends that the Legislature require the PERS board to adopt a market-related asset valuation in actuarial calculations and adopt a strategy for dealing with actuarial gains and losses.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.