Open Letter to the MS Legislature

MRPEA Member Alert! As you may have heard, all PERS funding bills “officially” died on Tuesday, March 2. While this is disappointing, we want to express our appreciation to both the House and the Senate for actively working to fund PERS this year. We anticipate these efforts will continue during this year’s legislative session. We also extend our sincere gratitude to Senator Blount for his dedicated work to rectify Tier 5. However, we must stress that ultimately, neither the House nor the Senate plans funded the system in the way the actuaries have stressed the system needs to be funded. The legislature has been told repeatedly by the PERS staff, the PERS actuary, the PERS board, and MRPEA that additional funding is needed to sustain benefits for current and future retirees. The actuary recommends funding at the Actuarially Determined Contribution (ADC) level, which is estimated to bring the system to a 99% funded ratio by 2047. In contrast, legislative proposals like SB 2004 only projected a 68.7% funded ratio by 2047, creating a concerning 30% differential from what the actuary actually recommends. To this point, the plans of both the House and the Senate leave the system highly vulnerable. At a recent PERS board meeting, it was noted that, on average, PERS investments experience negative annual returns in two years out of every ten-year period. If the system experiences just a single 8% negative return in 2027, PERS's funded status under SB 2004 is projected to plummet from 56.7% at the end of 2025 down to just 40% in 2047. MRPEA will continue to urge the House and Senate to collaborate with the PERS Board, staff, and actuary to arrive at a funding plan that will truly stabilize PERS for its 373,393 members. This must include real solutions, such as cash infusions, dedicated revenue streams, and the continuation of incremental increases in the employer contribution rate. We need your help NOW! Please call your legislators and ask them to honor their commitment to PERS 373,393 members and fund the system based on what the actuary has said the system needs! Lt. Governor Delbert Hosemann - (601) 359-3200 Speaker of the House Jason White - (601) 359-3300 Leave a message for any legislator with the Capitol switchboard - (601) 359-3770 Thank you for your consideration of this request.  Dr. Kathy Clayton MRPEA President

Dear MRPEA Members, The 2026 Legislative Session has started with a bang. We want to provide you with an immediate update regarding the Senate's action on PERS funding, the facts regarding the numbers, and what we need you to do next. The Good News: Senate Passes $1 Billion Funding Package First, we must acknowledge a positive step forward. The Senate has passed Senate Bill 2004 , the "Mississippi PERS Stability Act." This bill demonstrates that the legislature is listening to our concerns. The plan includes: • A $500 million upfront transfer from the Capital Expense Fund to PERS on July 1, 2026. • An additional commitment of $50 million annually for the next 10 years . • Combined with recent employer contribution increases, this represents a significant step in addressing system funding needs. We thank the Senate for taking this action early in the session. The Facts: We Are Not Out of the Woods While we appreciate the Senate’s swift action, MRPEA believes in full transparency regarding the math. Our analysis compares the Senate’s plan against what the actuaries—the financial experts—recommend to ensure your promised retirement benefits are safe forever. • The Goal: The actuary’s funding policy recommends a path that would get PERS to 99% funding by 2047 . • The Senate Plan : Based on PERS projections, the current Senate proposal would only move the system to approximately 68.8% funding by 2047 . While the Senate bill is a positive move, there is a significant gap between 68.8% and the 99% recommendation. PERS members should request that any final legislation address system funding needs based on actuarial recommendations so that we aren't fighting this same battle again in future years. Call to Action: Contact Your Legislators Now It is early in the session, and this bill must still go through the House. We need you to contact your personal Senator and Representative immediately.  The Message: 1. Thank them for addressing PERS funding early in the session—positivity goes a long way. 2. Share the facts : Respectfully remind them that while the $1 billion is a great start, the numbers show it falls short of the actuarial recommendation for true long-term solvency. 3. Urge them to finish the job : Ask them to support a solution that closes the gap closer to the actuary's recommendation to protect the system for all retirees and current employees. Please make these calls or send emails this week . We must keep this issue in front of them. We are stronger together. Sincerely, MRPEA