JACKSON, Miss. (WJTV) – Mississippi towns and cities are taking a sigh of relief after lawmakers made a deal in the final days of the Legislative Session to address the Public Employees’ Retirement System (PERS).

The bill now awaits Governor Tate Reeves’ signature.

The proposal strips power away from the PERS Board and mandates that any employer contribution increase come as a recommendation to the Legislature. Previously, the Board could vote amongst themselves to increase rates.

The bill also halts the immediate 5% employer contribution increase. The PERS Board will implement an increase of half a percentage point over the next five years, if the bill is signed into law.

Hattiesburg Mayor Toby Barker, who is the president of the Mississippi Municipal League, said this is just the first step in an issue that won’t be going away any time soon.

“I think both sides saw the need as they heard from cities and school districts on how much this was going to cost them. If this five-point employer contribution was allowed to go forward, and then a potential additional contribution of five more points as the executive director had sort of indicated might happen, I think this is the first point of engagement on what will be a series of hard decisions, hard conversations as we go forward,” Barker said.

The Legislature also allocated $110 million into PERS.