11/20/2025
Commissioner Andy Gipson’s comments about first responders and Tier 5 are a must read. Please see below.
A Call to Action: Mississippi Must Stabilize and Strengthen PERS to Avoid Future Crisis
As we look to the future of Mississippi, there is a huge challenge ahead that must be prioritized and tackled - sooner rather than later. The State of Mississippi’s commitment to our State employees and retirees in the PERS system is unquestionable; it is a covenant the State has made with its employees, and this is an issue that cannot be ignored or kicked down the road any longer. Tens of thousands of State employees ranging from teachers in the classroom to law enforcement patroling the streets have devoted decades of their lives in public service - for lower wages - and they have rightfully relied on and counted on the long term PERS retirement benefits for their later years in life.
But let me be crystal clear: the State PERS retirement system is in danger. Independent credit ratings agencies have warned the State for years, and according to Moody’s Ratings Services this summer, the PERS changes that were made last year will not result in meaningful savings quickly enough to help stabilize the existing plan anytime soon. See attached cover page of the June, 2025 Moody’s report.
In addition, many State employers including law enforcement and schools have pointed out recently that the new “Tier 5” plan effective March 1, 2026 will likely not help, but will harm the agencies’ ability to hire future employees at local, county and state agencies, which could further erode future funding of the PERS plan.
Mississippi policymakers should take these concerns very seriously for the sake of our law enforcement, first responders and others who already are paid far too little for putting their lives on the line. We owe it to our men and women in law enforcement, teachers in education and other state employees to consider their recommendations.
You might ask, “why should Mississippi taxpayers care?” The answer is because this affects every single Mississippian. The underfunding of PERS has affected and will affect the State’s overall credit rating, which in turn affects our State’s ability to fund and finance important infrastructure and similar projects for the future - Infrastructure such as roads and bridges we desperately need to build and improve, and other important projects for future economic development in Mississippi.
Experts tell us - and ratings agencies confirm - that significantly more attention is needed by the State Legislature to shore up PERS and position the PERS fund to a point of long-term viability. Moody’s warns that even a short-term serious downturn in the investment markets could suddenly tank the system by the 2030’s - unless contributions are increased. See the third paragraph in the attachment.
I raise this issue because as a longtime securities attorney in the private sector, as a policymaker and now as an executive agency head, I have grown to believe this is one of the greatest challenges Mississippi will face over the next decade. Failure to act meaningfully - before it’s too late - could well result in disastrous consequences for our retirees, our State employees and the overall financial condition of the State of Mississippi, affecting all our taxpayers.
Some good news - I am encouraged that our Legislature currently seems interested in addressing the issue and the need for action going forward. House and Senate Committees alike have studied and reviewed this issue over the last year.
The bottom line is, a significant amount of future dedicated funding for PERS will be required over several years from the State Budget to address the credit rating concerns such as Moody’s concerns.
I encourage all Mississippians to understand these issues, and to work together toward a common goal of solving the PERS problem before it becomes a PERS crisis for our retirees, employees and a State financial crisis for our taxpayers. We know the problem - now let’s fix it.
Andy Gipson
