Gov. Barbour Forms PERS Study Commission

Twelve-member group will review finances, structure of retirement system JACKSON – Gov. Haley Barbour today announced the creation of the Public Employees’ Retirement System Study Commission to analyze the program’s structure and recommend improvements to keep PERS solvent and to protect the interests of taxpayers and current and retired state employees. The 12-member commission will provide a comprehensive report to Gov. Barbour and the Legislature by Nov. 15. “The current funding path for Mississippi’s pension system relies too heavily on increased contributions from taxpayers,” Gov. Barbour said. “Large benefit increases adopted in the 1990s and early 2000s coupled with the impact of the economic downturn have created a financially unsustainable system. The Commission will take a hard look at the tough decisions that need to be implemented to ensure the long-term solvency of the system.” The PERS Study Commission will recommend improvements to the system’s financial, management and investment structure.  The responsibilities of the commission include:

• Analyzing the financial structure and funding mechanism of PERS, including an analysis of the ratio of taxpayer to employee contributions;
• Analyzing the management structure of the agency, including the make up of the PERS Board of Trustees;
• Analyzing the investment structure of PERS, including any comparison to similarly sized funds, as well as larger funds, with respect to performance and fees charged; and
• Analyzing the legality of modifying the benefit structure for current and future state employees.

Gulfport Mayor George Schloegel will serve as chairman of the commission. Joining Mayor Schloegel is a wide array of business leaders and those with expertise in pension issues, including Will Flatt of Parkway Properties; former Supreme Court Justice Reuben Anderson; Harry Walker of Trustmark Bank; Seale Pylate of Phelps Dunbar; Bill Crawford, former legislator and businessman from Meridian; Bill Benson, Lee County Chancery Clerk and current chairman of the PERS Board of Trustees; and Kevin Upchurch, Department of Finance and Administration Director. Legislators who are non-voting members of the commission include: Sen. Hob Bryan, Sen. Dean Kirby, Rep. Preston Sullivan and Rep. Greg Snowden. The text of the executive order is included below.

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM STUDY COMMISSION

WHEREAS, a comprehensive and thorough study of the Public Employees’ Retirement System is necessary to ensure the solvency of the fund, to inform the public and current and future state employees, and to protect the interests of taxpayers, state employees, and retired state employees; and WHEREAS, Mississippi should review the financial, investment, and management structure of PERS to ensure its longterm sustainability; and WHEREAS, Mississippi is not unique in facing pension funding issues; in fact, many states across the nation have begun to look at ways to reform their public pension funds; and WHEREAS, before further reforms to the state’s pension fund are enacted, a thorough study should be conducted by knowledgeable and respected individuals to review all options with an eye toward informing and protecting both the beneficiaries (employees and retirees) and those who fund the system (taxpayers); NOW, THEREFORE, I, Haley Barbour, Governor of the State of Mississippi, under and by virtue of the Constitution and laws of this state, do hereby promulgate the following executive order, effective immediately. There is hereby created and established a Public Employees’ Retirement System Study Commission. The commission shall be independent of the Public Employees’ Retirement System, a state agency, and shall be charged with making recommendations on improving the financial, management, and investment structure of PERS. The responsibilities of the commission include, but are not limited to:

• Analyzing the financial structure and funding mechanism of PERS, including an analysis of the ratio of taxpayer to employee contributions;
• Analyzing the management structure of the agency, including the make up of the PERS Board of Trustees;
• Analyzing the investment structure of PERS, including any comparison to similarly sized
• funds, as well as larger funds, with respect to performance and fees charged;
• Analyzing the legality of modifying the benefit structure for current and future state employees;
• Analyzing any and all actuarial assumptions for the PERS plan;
• Analyzing what experts have been engaged by PERS, what their responsibilities are, how much they are paid, and what benefits and services PERS receives from these experts; and
• Analyzing any other issue related to PERS that will help promote solvency and ensure the
• interests of taxpayers, state employees, and retired state employees are protected.

The Public Employees’ Retirement System Study Commission shall be funded by any funds made available to the commission from any source, including local, state, and federal funds as well as private contributions. The Commission shall consist of twelve (12) members, who shall be appointed by the Governor and shall serve at his will and pleasure. Legislative members shall serve in an exofficio, nonvoting capacity. The Governor shall designate one member of the Commission to serve as its Chairman, who shall hold that post at the will and pleasure of the Governor. The Chairman has the exclusive authority to convene the Commission. The Public Employees’ Retirement System Study Commission shall meet at such time and in such location as determined by the chair of the commission. The commission shall provide a comprehensive analysis along with recommendations for improving the state’s retirement system to the Legislature and Governor no later than November 15, 2011.]]]]> ]]>

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