Despite years of publicly disputing critics’ claims that there is a PERS crisis and a record 10 year bull market, PERS raised employer contribution rates in July to address the funding shortfalls. This Northside Sun editorial explains the increase and why it’s not enough.
The cost of the increase is expected to be $77 million for state government and $23 million for cities and counties.
In July Jackson Jambalya had another excellent PERS analysis.
It’s a start. Long overdue, not enough of a fix, but a start.
How can a city like Jackson with an infrastructure crisis afford a mandatory PERS contribution increase?
There is no credible argument that PERS is going to work out. PERS cheerleaders’ argument ends after “it used to be worse” and “most other states are in the same boat we are.”
The plan is there is no plan. Pray for a miracle is a prayer, not a plan.
Yet, there is no secret where this is headed. One day, PERS will be scrapped for a 401(k) style retirement system for state workers. Current participants will be grandfathered in, but will have to take a haircut on their expected benefits. State and local governments will have to use more funds to pay PERS obligations instead of paving roads.
PERS has had some changes in leadership in the last year. Hopefully, it will become more realistic about the crisis.