Mississippi
Report shows Mississippi Legislature retirement reforms this year aren’t effective. See why
Lawmakers, PERS director agree they must work together in the future
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Problem Solved
State lawmakers will need to readdress concerns about the Public Employment Retirement System of Mississippi in 2025 if it is to remain viable long term, according to a July study.
Legislative actions in the 2024 Session to reduce public employer contribution rate hikes and increase state funding are not enough to address billions in unfunded future benefits to retirees, according to a report released by the Legislature’s third-party watchdog group, the Performance Evaluation and Expenditure Review Committee.
Projections show the state’s retirement plan being less than 50% fully funded by 2047 and having $25 billion in liabilities. According to several municipal leaders who spoke to the Clarion Ledger earlier this year, the legislative move from lawmakers in the past session should save public employers from cutting positions and raising taxes to keep and hire more public employees.
“Change in approach for increasing the employer contribution rate, in addition to the one-time funds transfer, reduces the plan’s projected future funded ratio from 65.5% to 49.9%,” the report reads. “…The PERS plan is currently expected to be at a lower-funded level in the future than it currently is today.”
PERS Executive Director Ray Higgins told the Clarion Ledger he wasn’t surprised by the report’s findings.
“The PEER analysis seems to be an accurate report and generally reconciles with our information,” Higgins said. “Also, the legislative action from last session appears to be a short-term solution.”
While the report does not list out any specific recommendations for lawmakers this coming year, it says continued work will be necessary to fix the retirement system that has 118,000 retirees receiving benefits and 147,000 active members paying into the system.
In 2023, the PERS governing board, made up of mostly elected members, as advised by financial actuaries who watch over the state’s retirement plan, passed a rate increase on public employers, such as cities, counties and school districts from 17.40% to 19.90% that was to take effect July 1. The rate would have continued to increase to 22.4% by 2027.
In the 2024 Session, the Legislature passed two bills. Senate 3231, prohibits the PERS Board’s plan to gradually increase the employer contribution rate and replaces it with a plan to increase to 19.90% over the next five years in 0.5% annual increases. SB 3231 also takes the board’s only regulatory power to increase rates and puts it in the hands of the Legislature.
SB 2468 enacts a one-time transfer of $110 million of capital expense funds into the PERS trust.
More on PERS bill MS Legislature passes bill restricting state retirement board’s authority
Lt. Gov. Delbert Hosemann’s Deputy Chief of Staff Leah Rupp Smith told the Clarion Ledger efforts Hosemann helped push forward that resulted in those bills’ passage led to a potentially more stable retirement system.
“To avoid this calamity while developing a future solution, the Legislature adopted a less-aggressive employer increase,” Smith wrote via email. “We are now informed the plan has a projected future funding ratio of 65.5% as of 2047, as compared to 48.6% projected one year ago.”
Republican House Speaker Jason White’s Communications Director Taylor Spillman did not reply to several emails requesting White’s comments on the report.
What are the big problems?
Higgins previously said the ratio of retirees to active members has seen a reverse trend since 2013, when there were 93,000 retirees and 162,000 active members. This increases the unfunded liability of the system as fewer people take jobs in government, reducing active members and more people retire, increasing the funding obligation of PERS.
The other issue lies with projections for the retirement plan’s future if state lawmakers decide not to take action in the years to come.
“While the ($110 million) funding for the first year is comparable, each year in the future could potentially see a greater deviation in expected employer contribution revenues for the PERS plan,” the report reads. “This deviation does not immediately constitute a problem for the PERS plan; however, careful evaluation of the plan’s future liabilities and funding needs will be necessary to ensure the sustainability of the PERS plan.”
Are there any solutions?
Higgins and Smith both said future work on PERS is still a top priority.
Higgins specifically mentioned a new retirement benefits package that could be offered to new public sector employees, which the PERS board has called tier 5.
“The Board has previously recommended a tier 5 for new employees to help better sustain PERS in the future and is currently considering what may be included or resubmitted in next year’s legislative package,” Higgins said.
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Earlier this year, Hosemann told the Clarion Ledger he wanted to see evidence that a new tier of benefits could help maintain the retirement system long term. Smith did not confirm whether Hosemann’s office is currently studying that idea in the legislative off season, but she did say the Legislature is looking at several ideas.
“The Legislature is exploring any option for a more viable plan,” Smith said. “The Lt. Governor continues to be committed to fulfilling current employee and retiree benefits, including the cost-of-living adjustment for these individuals.”
Grant McLaughlin covers state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.
Mississippi
George County High School senior killed in Highway 26 crash, MHP says
GEORGE COUNTY, Miss. (WLOX) — A George County High School senior is dead after an SUV hit him while bicycling on Highway 26 Friday night.
Mississippi Highway Patrol (MHP) officials said at 8:15 p.m. the MHP responded to a fatal crash on Highway 26 in George County.
Those officials said a Ford SUV traveling west on Highway 26 collided with 18-year-old Tyree Bradley of McLain, Mississippi, who was bicycling.
Bradley was fatally injured and died at the scene, MHP officials said.
The crash remains under investigation by the MHP.
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Mississippi
Mississippi State Drops Series Opener at Texas A&M Despite Late Chances
Some losses feel like they drag on longer than the box score suggests, and Mississippi State’s 3-1 opener at Texas A&M fits that category.
It wasn’t a blowout. It wasn’t a game where the Bulldogs looked outmatched.
It was just one of those nights where the early mistakes stuck around and the offense never quite found the swing that could shake them loose.
The frustrating part is how quickly the hole formed. Two solo homers and a wild pitch in the first two innings put Mississippi State behind 3-0, and that was basically the ballgame.
Against a top tier SEC team on the road, spotting three runs that early is a tough ask. The Bulldogs didn’t fold, but they also didn’t cash in when the door cracked open.
“I liked our fight. I think we’re really just working through some things offensively, and trying to stay together,” Mississippi State coach Samantha Ricketts said. “This team still believes, and we’re going to battle and fight every chance we get, and I think I saw a lot of that. I’m encouraged for what that means for us moving forward, but, you know, they’re a good hitting team, and we’ve got to be able to shut them down early. I don’t think Peja [Goold] had her best stuff, but she continued to battle out there and find ways to get outs.”
They had chances. Two runners stranded in the fifth. Two more in the sixth. Another in the seventh. Des Rivera finally got the Bulldogs on the board with an RBI single, but the big hit that usually shows up for this lineup never arrived.
It wasn’t a lack of traffic. It was a lack of finish.
If there was a bright spot, it came from the bullpen. Delainey Everett gave Mississippi State exactly what it needed after the rocky start.
“That was just a huge relief appearance by Delaney to keep us in it,” Ricketts said. “It’s really good to have her back and healthy these last few weeks because these are the moments where we really need her and rely on her. We know that she’s going to be a big part of the remainder of the season going forward as well.”
Three hitless innings, one baserunner, and a reminder that she’s quietly putting together a strong stretch.
There were individual positives too. Nadia Barbary keeps climbing the doubles list. Kiarra Sells keeps finding ways on base.
But the bigger picture is simple. Mississippi State is now 6-10 in the SEC, and the margin for error is shrinking. Nights like this one are the difference between climbing back into the race and staying stuck in the middle.
They get another shot this morning with the schedule bumped up for weather. The formula isn’t complicated.
Clean up the early innings, keep getting quality relief, and find one or two timely swings. The Bulldogs didn’t get them Friday. They’ll need them today.
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Mississippi
Mississippi farmers struggle through years without profit as war with Iran deepens crisis
YAZOO COUNTY, Miss. — Mississippi Delta farmers are facing another expensive planting season as fertilizer and fuel costs continue to climb.
Farmers in Yazoo and Sharkey counties, Clay Adcock and Jeffrey Mitchell, said it has been years since their crops turned a real profit.
“I guess it would be since 2022,” Adcock said.
“Last 2.5 to three years since we had a very profitable year,” Mitchell said.
Rising input costs squeeze farmers
Adcock said he was paying $300 per ton of fertilizer before the war with Iran broke out. He is now paying double for the same amount. Mitchell saw similar spikes.
“Fertilizer was up 25% before the Iranian conflict already,” Mitchell said. “Then since that started Diesel fuel is up 40% in the last six months.”
Survey and research from the American Farm Bureau show they are not the only ones feeling the pinch.
“We’ve got trouble with the farming community,” Adcock said. “And you can see that with the bankruptcies that are there and no young farmers that can afford the capital to get started.”
Mitchell said today’s farmers face a shrinking industry of suppliers. 75% of all fertilizer in the U.S. comes from four companies: Yara USA, CF Industries, Nutrien and Koch Industries.
“With the world market on fertilizer, pretty much everyone has the same price,” Mitchell said. “It’s not like you can go to store B, get a better price.”
forces
Oil and natural gas cut off in the Strait of Hormuz forces energy companies worldwide to compete for less supply. The spike in costs passes on to fertilizer producers, who pass higher prices on to distributors, leaving family farms at the end of the line with the most expensive bills.
“They deliver it to us and we’re at their mercy,” Adcock said.
Adcock said he would like to see more regulation to even the playing field among fertilizer companies and prevent potential price gouging.
“There should be guiderails in place to keep fertilizer producers within a range and if they get out of that range it throws up red flags as they do in the SEC with stocks,” Adcock said. “Have some consistency in our business.”
Mitchell said the costs will circle back to consumers at the store. The spike in diesel also increases the cost of transporting finished crops after harvest to stores.
“Everything will be higher once it gets to Kroger or Wal-Mart or wherever,” Mitchell said. “They’ll just pass it onto consumers.”
It is too early to tell what the final prices will look like once harvest season is over. Each farmer said one way consumers can help is to buy as much produce as possible directly from farmers at markets and buy American items.
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