Mississippi Senate Bill SB2905

Mississippi 2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 3/5/24

Caption

PERS; require any terminated plan to pay unfunded actuarial accrued liability to board in a lump sum before termination.

Impact

If enacted, this bill will have a significant impact on the management of retirement plans within the state. It will impose a stricter obligation on governmental entities seeking to terminate retirement plans, thereby ensuring that accumulated liabilities are settled prior to any termination. This measure is likely to lead to enhanced fiscal responsibility among public entities engaged with PERS, potentially reducing the financial burdens that could fall on the state or taxpayers in the face of underfunded plans.

Summary

Senate Bill 2905 aims to amend Section 25-11-105 of the Mississippi Code to legislate that any terminated retirement plan previously approved by the Board of Trustees of the Public Employees' Retirement System (PERS) must pay its share of the unfunded actuarial accrued liability in a lump sum before the termination can be finalized. This legislative change is intended to ensure that financial responsibilities related to retirement liabilities are handled appropriately and to safeguard the interests of current and future pension beneficiaries.

Contention

Notable points of contention surrounding SB2905 may arise regarding the imposition of additional financial burdens on governmental entities. Critics might argue that requiring lump sump payments could strain smaller municipalities or agencies that lack sufficient funding reserves. Additionally, there may be discussions about the fairness and implications of this regulation on taxpayers and public employees who could face impacts from either heightened costs or changes in retirement plan stability.