JACKSON, Miss. (WLBT) – Lawmakers’ decisions about the state’s public employee retirement system, known as PERS, will affect you whether you’re a public employee or not. Retirees and local leaders say there’s still work to be done, but the actions are a step in the right direction and one that will ultimately save you in taxes.
Your voices are being heard.
“The legislation that came out generated a lot of interest among retirees,” said Sam Valentine, board member of the Mississippi Association of Retired Public Employees. “Among the people who are in the system, they got a lot of calls and they understand, I think, now, how important the system is.”
The reactions were twofold. It came not only from public workers and pensioners, but also from local government leaders, who said they would not be able to afford the planned increase in the employer contribution rate.
“We’re excited that we’re not going to have a 2% increase,” Hattiesburg Mayor Toby Barker said. “From July 1, we will have a half percent increase. We have certainty for the next five years and even certainty beyond that if the PERS board wants to raise the significant contribution, they will have to go to the legislature for approval.”
Maybe you are not part of PERS. However, these decisions have a domino effect on you.
“I think the thing that helps cities do is probably avoid those property tax increases,” Barker noted.
It also gives your cities and towns more flexibility since they won’t have to keep paying more into the state system.
“If there are raises for first responders, if there are other requests that need to be made, they can do that,” Barker said of the flexibility. “It will also not be necessary to come out and discuss that you have to transfer many of the functions of your city.”
“We can look at infrastructure growth and those types of things,” added Vicksburg Mayor George Flaggs. “We can do a little more tweaking. This was a giant step forward. Put the money in the pockets of the workers because the workers of our cities in this state are underpaid.”
Retirees like Sam Valentine say they know the system needs more money.
“So we’re moving in the right direction,” Valentine said. “But there is much to be done if we are to fully fund benefits not only for current retirees but also for future retirees for years to come.”
We received this statement from the Executive Director of PERS.
“We understand the need for an appropriate level 5, as the Board previously recommended a change in benefits for new employees to reduce future liabilities and better support PERS.
However, it is also essential that the System receives adequate funding to meet the long-term needs of the plan. SB 3231 and the supplemental appropriation appear to be a short-term solution. Although a small step in the right direction monetarily, eventually the System will need funding more in line with actuarial recommendations and we must work together throughout the year to improve PERS.” –PERS Executive Director Ray Higgins.
Want more WLBT news in your inbox? Click here to subscribe to our newsletter.
See a spelling or grammar mistake in our story? Please Click here to report it and include the headline in your email.
Copyright 2024 WLBT. All rights reserved.
#PERS #benefits #unchanged #current #employees #retirees
Image Source : www.wlbt.com