The deferred compensation plan was created as a tax-free investment service in which state employees deferred all or a portion of their pay into one of various investment plans. The Public Employees’ Retirement System was responsible for the administration and investment of these deferred funds. In the past, only those employed by the state or by any political subdivision of the state could enroll in the plan. However, in January 1976, Medicaid providers were allowed to enroll.
The purpose of this report was to investigate and establish the reasons for the inclusion of Medicaid providers and to see if this inclusion was in keeping with legislative intent. The committee observed that the increase in the total amount of deferred compensation available for investment had enabled the Public Employees’ Retirement System to invest in a wider range of investment areas. However, other contractors that serve the state wanted eligibility status as well. If these contractors were allowed to enroll, it was possible that this benefit could evolve into a multi-million dollar tax dodge for contractors currently doing business in the state. In addition, the PEER Committee concluded that legislative intent did not appear to allow for these types of contractors to be eligible to enroll in this plan.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.