JACKSON, Miss. (WJTV) – Mississippi lawmakers hoped to tackle the issue of the Public Employees’ Retirement System (PERS) this Legislative Sessions. However, this year’s effort, House Bill 1590, died in the Mississippi Senate this week.

The bill would have restructured the PERS Board to consist of only political appointments while also halting the 2% employer contribution rate increase set to go into effect this summer.

Sam Valentine, a board member of the Mississippi Retired Public Employees’ Association, said he was glad to see the bill die.

“The board is not the problem that we’re facing right now with the system. The unfunded liability is the main issue,” he said.

The unfunded liability currently sits at more than $25 billion. The board seeks to remedy the issue through steadily increasing employer contribution rates. It’s a move that cities and towns across Mississippi say they cannot afford, and one that House Bill 1590 would have barred.

Hattiesburg Mayor Toby Barker, who is the president of the Mississippi Municipal League, expressed his disappointment over the House and Senate impasse.

“At least it kept us from having to increase employer contribution which could then find its way down to affecting local taxpayers. You’re going to start seeing cities, counties and school districts having to make hard decisions when we come to pass our budgets later this fall,” said Barker.

“This is not like we don’t share their concern. At the same time, $3.2 billion goes back out in the form of benefits that go into the state. That’s shared in all 82 counties,” said Valentine.

Both Barker and Valentine said they hope state lawmakers make a direct appropriation into PERS before the session ends to ensure its stability.