Mississippi Professional Educators
222 N. President
Jackson, Mississippi 39201
800-523-0269
Greetings!
PERS Alert!!!
Two bills impacting PERS were filed by Senator Nancy Collins of Tupelo by this past Monday's deadline; however, the bills were just entered into the legislative bill tracking system this morning. Thus, I was not aware of them when I uploaded this morning's weekly email before leaving the office yesterday. The bills are as follows:
SB 2709: This bill appears to be the same bill that I emailed our membership with regards to during the first week of the legislative session. According to my preliminary review, SB 2709:
- Revises the composition of the PERS Board of Trustees, increasing the number of board members from 10 to 17. The 7 additional members include 3 gubernatorial appointees and 4 members appointed by the Lt. Governor.
- Changes vesting to four years of membership service for all members regardless of when the member joined the system.
- Changes retirement eligibility for all members in state service on or after July 1, 2013:
- Provides that any active member in state service on or after July 1, 2013, may retire with unreduced benefits after four years of membership service at age 65 or with reduced benefits after four years of membership service at age 62;
- Provides that any active member in state service on or after July 1, 2013, may retire with unreduced benefits after 30 years of creditable service at age 55 or with reduced benefits after 30 years of creditable service before age 55.
- Changes the Cost-of-Living Adjustment (COLA) for current members and retirees as follows:
- Freezes the COLA for three years (after July 1, 2013 through June 30, 2016) and thereafter (for full fiscal years in retirement after July 1, 2016) ties the COLA to the Consumer Price Index, not to exceed three percent annually;
- Provides that any active member in state service on or after July 1, 2013, will not receive a COLA until age 62;
- Provides that the COLA will be suspended if the funded status of the system is below 70 percent and will not resume until the funded status is at least 70 percent.
- Closes the Supplemental Legislative Retirement Plan (SLRP) effective January 1, 2011:
- Members include those elected before January 1, 2011;
- Members elected on or after January 1, 2011, will be refunded their contributions.
- Repeals the section of state law which requires the PERS Board to establish a healthcare plan for retirees when the plan reaches a certain funding level. This healthcare plan currently only exists in law, so this would delete the requirement for such plan.
While PERS bills are traditionally referred to the Senate Finance Committee, SB 2709 has been double referred to both the Senate Accountability, Efficiency and Transparency Committee, as well as the Senate Finance Committee. Senator Collins chairs the Accountability, Efficiency and Transparency Committee. SB 2709 will go to her committee before going to Senate Finance. In addition to Senator Collins, members of the committee include Senators Blount, Brown, Clarke, Fillingane, Hale, Hopson, Polk and Wilemon.
Members of the Senate Finance Committee, which is chaired by Senator Joey Fillingane, include Senators Browning, Bryan, Butler (38th), Chassaniol, Dawkins, Doty, Hale, Harkins, Hudson, Jones, Jordan, Kirby, Longwitz, Massey, Montogomery, Moran, Parks, Polk, Simmons (12th), Smith, Stone, Tollison, Ward and Watson.
SB 2727: SB 2727 creates a study commission and changes the composition of the PERS Board, including reducing the number of trustees elected by retirees and active employees. SB 2727:
- Creates a study commission to review personnel practices that have an impact on the determination of a retirees' creditable service and the compensation on which a retirement allowance is based. The 6-member study committee is comprised of the executive directors of the Public Employees' Retirement System, the State Personnel Board, the Department of Finance and Administration, the Mississippi Municipal League, the Mississippi Association of Educators, and the Mississippi Association of Supervisors.
- Establishes a process for determining when PERS is approaching imminent collapse. This process includes the Executive Director of PERS working with legislative advisors and the Attorney General.
- Requires the State Personnel Director, the Director of the Department of Finance and Administration and the State Economist to study the compensation offered to state employees to ensure that it is adequate to attract and retain a competent workforce.
- Reduces the number of trustees elected by and representing active state employees on the PERS Board from two to one effective July 1, 2014.
- Reduces the number of trustees elected by and representing retirees on the PERS Board from two to one effective July 1, 2013.
- Creates two new positions on the PERS Board, with one of these being appointed by the Governor and the other appointed by the Lt. Governor.
SB 2727 has been referred to the Senate Finance Committee.
Every MPE member - whether you are retired or still working - should pay close attention to these bills, as both bills impact educators throughout our state. We've posted legislative contact information in the "Quick Links" menu on our homepage (www.mpe.org), and our recent Winter 2012/2013 issue of the MPE Journal includes this contact information as well.
Senate Finance is scheduled to meet next Tuesday at 1:30 p.m., while Accountability, Efficiency and Transparency is scheduled to meet next Wednesday at 8:30 a.m. I'll attend both meetings and keep you posted as to developments.
Mississippi Professional Educators | 629 N. Jefferson St. | Jackson | MS | 39202
The mission of the Rankin County School District is to prepare every student with the cognitive and social skills necessary to be productive members of an ever-changing global society.
The mission of the Rankin County School District is to prepare every student with the cognitive and social skills necessary to be productive members of an ever-changing global society.
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