According to this Bloomberg report, Mississippi’s PERS funding ratio of 60.9% as of 2014 was the 10th worst in the nation. Here is a link.
Given the performance of the equity markets, it seems odd that Mississippi’s funding ratio decreased from 67.3% in 2009 to 60.9% in 2014.
Regardless, with asset values at all time highs and PERS heavily invested in stocks, things can get worse from here.
Consider this take via Bloomberg from investing expert Bill Gross:
“Pension funds and mom and pop on main street are looking forward to their pension of 7 or 8 percent, and if they don’t get it, they’re in trouble,” Gross said. Instead, investors should expect returns of around 4 percent, Gross said, reiterating the view from his recent monthly investment outlook that low interest rates have already hurt returns for banks, insurance companies, pension funds and savers.
A sustained 4% investment return for PERS would create an epic calamity for Mississippi’s budget.