The Mississippi Legislature has a golden parachute most state workers can only imagine.
The Supplemental Legislative Retirement Plan was created in 1989 by the Legislature to provide additional benefits to legislators and the lieutenant governor (who presides over the state Senate). The plan isn’t available for other state employees and gives legislators and the lieutenant governor benefits 1.5 times better than state employees.
Enrollment in SLRP is mandatory for legislators with no opt-out clause. While Mississippi is the only state with a supplemental pension fund for its legislators, seven states provide no pension benefits for legislators, most notably Alabama and Louisiana.
Better known by its nickname SL(U)RP, the system is icing on the cake for legislators who are already part of the state’s defined benefit pension system known as the Public Employees’ Retirement System of Mississippi or PERS.
PERS administrators also run the SLRP system in addition to PERS, some holdover municipal pension systems and the state trooper retirement fund.
The way the plan works is, like PERS, both taxpayers and the legislator provide contributions. Like PERS, taxpayers pick up a bigger chunk of the contributions to the fund. Members contribute 3 percent of their salary to SLRP, while taxpayers kick in 7.4 percent. The contribution rate for legislators hasn’t changed since the program’s inception, while the taxpayers’ contribution was last increased in 2012. Taxpayers contributed $513,000 for SLRP in 2018, while legislator contributions added up to only $207,000.
The SLRP is in good financial shape with $18 million in assets as of June 30, 3018. While PERS and the pension fund for state troopers languish with funding ratios of 62.5 percent and 67.2 percent respectively, the SLRP chug-a-lugs along with a funding ratio of 84.7 percent.
In 2018, contributions to SLRP added up to $720,00, while in 2017, the figure was $734,000. The plan made $1.412 million in investment income in 2018 after earning $2.264 million in 2017. SLRP paid out $1.41 million in pension benefits in 2018, up slightly from 2017 when $1.397 million were paid out to retirees and beneficiaries.
As for demographics, 174 active participants are supporting 207 retirees and beneficiaries. In 2010, 175 members were supporting 142 retirees. The demographic headwinds that face PERS (increasing numbers of retirees and a decreasing to flat number of active participants) aren’t as big a factor with SLRP since the number of contributing members is constant.
PERS has a $16.6 billion pension liability, while the state trooper fund is $173.3 million. The SLRP liability is only at $3.3 million.
In 2002, the Legislature made SLRP an even better perk. They inserted language into the law that allowed legislators with 33.5 years of PERS service to earn retirement benefits in excess of 100 percent of their average salaries, an advantage not enjoyed by the rest of PERS members.
It’s past time for the Legislature to eliminate this sweetheart deal, especially in light of their unwillingness to fix the structural issues with PERS since they fear the wrath of retirees at the voting booth. The SLRP needs to be phased out because it puts the legislators ahead of teachers, police and fire fighters when it comes to retirement benefits.
There also needs to be discussion on whether legislators merit retirement pay at all. Many who move on to a statewide elected office or an executive director position at a state agency will receive credit for their time in the Legislature and retire at the rate of pay of their last job (the last four rule). In addition, they will receive their SLRP benefits.
Shutting down the Supplemental Legislative Retirement Plan would end a practice that many consider to be unfair to state, municipal and county workers who do not receive similar perks and whose retirement is threatened due to the Legislature’s constant inaction on reform.
17 comments:
Not a fan of SLRP, but they won't change it because the base pay for the legislature hasn't been raised since 1980...1980. They need to come up with a reasonable pay and drop the SLRP.
Also, I like BPF's work, but this is disingenuous. SLRP is roughly equal to one molecule of water in the 50 gallon drum that is PERS' shortfall. Converting SLRP to PERS wouldn't pay for the one week of a PERS payout.
10:00 am - who cares what legislators make, it's a part-time job and they often use their roles as lawmakers to self-deal.
They are elected officials, yes; but they are also state employees and should be treated the same. Same goes for troopers, ditch their special treatment and make them special .... just like everybody else. Taxpayers are tired of this crap.
Haaaa if you think the legislature is going to touch this with a 10 ft. pole you are nuts. While it is wildly unfair to other PERS members and the taxpayers shelling out the $, it benefits them, and they are all self-preserving politicians after all. They didn't run for office to help their constituents despite what the paid actor granny on the tv may say, only to deepen their pockets. This is just another perk on top of their campaign finance war chest they are allowed to keep (nice job pushing the CF legislation full of holes through while touting "transparency" - we see what you did there), tax-payer funded luxury trips & hobnobbing, etc. Maybe we can get the teachers, the firemen, the police, the state employees and all the taxpayers that are tired of their elected officials gaming the system to meet down at the Capitol on day one of session and protest in order to demand better. Doubtful, because the uninformed voters of this state keep putting the same old trough lickers in office election year after election year.
10:15 am, I know right! A part time job half of them don't even show up for - check attendance records during the last 5 sessions and then please (10:00 am, a member of the legislature) tell me again how those hard working legislators deserve a pay raise over teachers, first responders & state employees. I am waiting...
@10:15 AM
Amen, Amen, AMEN!
"I voted for it but didn't read it first" said Rita Martinson (Madison) every time I asked her about her support for legislative perks. I can understand Ellis Bodron not reading it, but DAYUM!
You have a lot of other people milking the PERs tit. Look out in Brandon. You have Butch Lee who worked at the state fire Academy for years. Now he is making $75,000 as mayor of Brandon to get his average 4 years salary up. Now he is campaigning for Transportation Commissioner every day while on the clock as mayor. The next in line out there will be his pal Lou Coker who has been in private business for years as well as been on the board of aldermen. He's most likely vested now so he will try and take a shot at the mayor position once Butch leaves to make a little more for 4 years. Milking the PERs system while not being a "true state employee". There are many just like them all over the state bleeding the system dry. They start getting their years in on a cush job until they are vested then run for higher office to get the average 4 up then retire.
Get a leg to introduce a law changing the name of the program so that the acronym for this special welfare program becomes "SLURP".
Problem solved!
If I'm not mistaken, SLRP was funded with $4 million dollars that was "borrowed" from the State Treasury's unclaimed property fund. Over the years, the Legislature has "borrowed" millions and millions of dollars from this fun,
but has not paid one red cent back. This is a way where they can "balance the budget". This money does not belong to the State of Mississippi, but IT DOES BELONG to the citizens of the state who have unclaimed money that has been turned over to the State Treasury!
Do away with legislators retirement all together. Put the highway patrol under the regular state retirement where it should be anyway.
Please, if one person can justify a seperate retirement for mhp please share that with the rest of us, so we all will know.
2:30....sounds about right for the legislature...taking something they aren't entitled to, while nobody's looking, to benefit themselves. By the way, how long does one have to claim "unclaimed" property?
Surely Tate Reeves and the incoming Attorney General in Red would not have allowed the legislature to steal from the state treasury. You must be mistaken.
I'd bet Rita Martinson reads the amount of her monthly check for SLRP. Rita is like Nancy Pelosi who wouldn't read the Obamacare legislation she shoved into law. Remember that Congress has their own lifetime health plan that is far better than the legislation foisted on the rest of us minions.
Lawmakers are incredible hypocrites.
This State is run by unethical thieves and full of morons who keep putting them there, against their best interest. As long as a politician decries the evil Hollywood liberals and kisses a Bible while picking the citizens' pockets, they will keep getting elected. Smart people get the hell out of this state and encourage their children to do the same.
SLRP is wrong. It is unethical. But its a drop in the bucket unless you just like having arguments on principle.
The 13th check is what has PERS out of whack.
Unclaimed money stays under an individual name or company until they are claimed. Every three years, company turn over money that they have had for a number of years and having no contact with the owner. Some companies report every year. And yes the legislature “borrow “ money to fund the state budget. They did this this year!
6:23 - So, here's your argument: Running red lights is not nearly as dangerous as driving 90 in a 35, so we should ignore the running of red lights.
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