Senate committee wastes no time in passing bill aimed at shoring up PERS

• The legislation would transfer $500 million from the Capital Expense Fund to the PERS account as of July 1, and would direct subsequent $50 million transfers through 2036.

The Mississippi Senate Appropriations Committee took less than five minutes Tuesday afternoon to approve transferring hundreds of millions of dollars in state funds to shore up the Public Employees’ Retirement System, or PERS, by unanimous vote.

The bill, SB 2004, would transfer $500 million from the Capital Expense Fund to the PERS account as of July 1. Subsequent transfers of $50 million would be moved from the Capital Expense Fund to PERS each year until July 2036.

The legislation, titled the Mississippi PERS Stability Act, states if the Capital Expense Fund has a balance below $50 million, the State Treasurer, along with the State Fiscal Officer, “shall transfer the balance of the unobligated funds from the Capital Expense Fund and a sum in the amount necessary from the State General Fund so that a total sum of Fifty Million Dollars” is transferred to PERS.

PERS currently has an unfunded liability of roughly $26 billion and serves nearly 370,000 members.

During a brief introduction of the bill, Senator Daniel Sparks (R), new to the Senate Appropriations Committee, said that with the bill’s infusion of funds along with the previously planned increase in contributions would inject about $3 billion into the state’s retirement system.

The one question asked during the committee meeting came from Senator Sollie Norwood (D), who inquired as to how much was in the Capital Expense fund. Senator Sparks said he believes it is hovering around $1.5 billion.

“I do believe this is something that both ends of the hall, both chambers, have talked about funding for PERS,” Sparks said.

The House of Representatives is also expected to introduce its own legislation to help buoy the solvency of the state retirement system. During an invitation-only press conference on Monday, Speaker Jason White (R) said he would favor legislation using mobile sports gaming revenue to assist in solving the PERS funding issue.