PERS posted the SLRP* annual actuarial report for the fiscal year ending June 30, 2011 on its website recently. SLRP is the Supplemental Legislative Retirement Plan. Legislators (a part-time job) receive retirement benefits that are 150% of state employees.
The report states there are 174 active members and 147 retirees, little change from a year ago but a huge increase from 2002: 86 members. The assets increased from $11,079,000 a year ago to $13,737,000 (I am using the actual market value on page 1. I'm not using the assets number that is $21 million as it includes future contributions and assets.). The retirement pay is based on an average of the four highest-paid years of legislative service. Meanwhile, state employees are required to contribute 9.0% of their pay to their retirement plan while the state contributes 12.93%. The contribution rate for legislators is 3.00% and 7.40% for the "employer".
The funding level increased from 73.1% to 77.5%. The plan assumes a rate of return of 8.0%. Contributions were $663,000 and benefits payments were $828,000. The average benefit is $5,604 per year and the average age of the beneficiary is 69.3 years old (p.5). The average benefit is $467 per month.
2011 actuarial report
*SLRP is a special retirement program created in 1989 just for legislators giving them extra retirement pay in addition to the regular retirement they receive as members of PERS. Section 25-11-301 of the Mississippi Code states:
"There is hereby established and placed under the management of the Board of Trustees of the Public Employees' Retirement System of Mississippi a supplemental legislative retirement plan for the purpose of providing supplemental retirement allowances and other benefits under the provisions of this article for elected members of the State Legislature and the President of the Senate and their beneficiaries. The retirement plan provided by this article shall go into operation on July 1, 1989, when contributions by members shall begin and benefits shall become payable. This retirement plan is designed to supplement and is in addition to the provisions of Section 25-11-1 et seq. Under the terms of this article, the members of the State Legislature and the President of the Senate shall retain all social security benefits under Article 1 and additional state retirement and disability benefits under Article 3 of the Public Employees' Retirement Law of 1952, as amended. This article is a supplement to those sections, and is designed to provide more benefits for members of the State Legislature and the President of the Senate by reason of their service to the state." Section 25-11-301
Section 305 states SLRP shall include all members of the Legislature unless they choose to opt out of the program. Section 309 states "(1) The retirement allowance from the Supplemental Legislative Retirement Plan shall consist of fifty percent (50%) of an amount equal to the retirement allowance determined by creditable service"."
Editorial comment: The size of the SLRP fund is not that large and the amount of the monthly payments to um, beneficiaries is modest. However, there is no reason whatsoever why legislators should receive retirement benefits that are more than those received by state employees. You know, state troopers, teachers, social workers, even the mean ole lady at the DMV. In fact, the question should be asked if these legislators should even receive any retirement benefits as they are working in a part-time job. Tate Reeves and Philip Gunn should end SLRP and take a serious look at ending retirement benefits for legislators. Better yet, legislators CAN opt out of SLRP. Ask yours if he plans to do so and if not, why not.
Just for Shadowfax, who does not know how to use Google or a search box, links to earlier SLRP posts:
SLRP fund has over $11 million in 2010
SLRP: Supplemental retirement plan or pigs slurping at a trough?
Sunday, December 11, 2011
SLRP now has over $13 million
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6 comments:
this is what happens when the fox is guarding the hen house.
Where else can people make the rules that affect their own retirement but congress or state legislatures. Buzzards picking the flesh.
As a state employee for 24 years, I think I have the right to an opinion. It is sad to me the way that politicians on the state level, as well as the national level are given a higher status than the rest of us. If anyone is given extra benefits, to me it should be the state troopers, and all state law enforcement officers. They put their life on the line every day to protect us. Legislators are put in office to represent the people, not be above them or put in a higher status.
I would be ok with SLRP if the legislatures set their personal contribution rate to match the PERS rate of 9%, or better, set it at 10.4% and make SLRP a fully participant funded retirement account. That isn't a lot of money out of their check to make an embarrassing perk disappear.
I think the best solution I've heard so far is that they convert SLRP to a fully funded deferred compensation plan. That way, they keep their benefits, probably lower their personal contribution rate to sit in line with economic reality, and eventually the thing dies on the vine.
Political. problem. solved. And it would be a nice olive branch for any changes to PERS for both parties. However, I bet the Dems would scream that they should not have to give up benefits to continue to fund the COLA payment for a few more years.
Explain how legislators can 'opt out' of SLRP. Is SLRP different from PERS which requires participation by every state employee?
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