Jackson Jambalaya reported on November 5 about the latest development in Mississippi’s PERS time bomb. Here is the post, which uses charts that graphically depict how deep of a hole PERS is getting into.
The good news is that the PERS investment return improved to 13.4%. The bad news is that despite the improved (and unsustainable) investment performance, the funding deficit grew by $3 million. The reason is that there are not enough active members in the system to support the growing number of retirees.
As an aside, it seems like shrinking the size of government by reducing the number of state employees will make the problem worse. Not that we should have state employees just to support PERS.
As Kingfish notes:
However, the deficit still grew after a great year in the markets and an increase in employer contributions. What will happen if PERS only enjoys a 2% or 6% return in the market?
I’ll tell you what will happen. Chaos.
So why is this ticking time bomb not being addressed? Kingfish says:
Nearly $21 billion in assets, $15 billion in unfunded liabilities, funded at a level of 57.7% yet not a peep out of the Treasurer. Actually, not a peep out of the legislature and Governor either. Several sources have told me no one will take a lead on this problem unless it is a concerted effort by both sides as it will generate no small amount of controversy. No surprise as Moak and Cottonchicken see PERS as a chance to smear Republicans and win elections, the actual problems be damned. Frankly, I think few of any on both sides of the aisle are even smart enough to address the problem and those who are such as Bryan would rather manipulate the politics than actually solve the problem.
I agree that Mississippi politicians are battling to see who can ignore the PERS problem the longest. We need someone in Mississippi politics to lead on this issue. Put away your guns, tone down the crazy talk and focus on something that everyone should be able to agree will be a huge problem. It doesn’t matter if its a Democrat or Republican. Anyone will do. This is a bipartisan problem that should be addressed sooner rather than later.
But don’t hold your breath waiting for it to happen. It’s going to get worse before it gets better.