JACKSON, Miss. (WJTV) – Mississippi Senate lawmakers heard from the Public Employees’ Retirement System of Mississippi (PERS) on Tuesday. The Legislature is weighing their options to address the system.

Alarm bells have been ringing about the financial sustainability of PERS since Summer 2023. According to PERS, there are roughly $25 billion in unfunded liabilities in Mississippi.

During Tuesday’s hearing, PERS Executive Director Ray Higgins spoke to lawmakers about a direct appropriation into the retirement system and the possibility of a “fifth tier” of PERS. The new benefit system would impact future state employees.

“We think the, the proposed board-approved Tier Five request would help better sustain PERS long term. Now, it is important to realize that the Tier Five is, is not a quick fix. It’s a long term, for the next generation. It does not eliminate the current unfunded or eliminate the consideration of raising the contribution rate. It is more of a longer term solution, but we do think it would better sustain PERS long term,” said Higgins.

The Tier Five benefit plan would include a reduced employer contribution rate and no guarantee to a cost-of-living adjustment that exists in the current PERS benefit plan.