Mississippi Today
Lawmakers ponder stripping state retirement system authority after board votes to raise rates
Lawmakers ponder stripping state retirement system authority after board votes to raise rates
After Public Employees Retirement System Board of Trustees voted to require an additional $345 million annually from state and local governmental entities to fund the pension plan for their current and former employees, lawmakers are considering changes to the system's authority.
The PERS board voted in December to increase the employer contribution rate, which is paid by state governmental agencies, school districts, county and city governmental entities. The current government contribution is 17.4% of the employees' paycheck. The board voted to increase the rate to 22.4%.
Ron Higgins, PERS executive director, said the increase is needed to ensure the system is properly funded long-term.
The increase means state agencies will have to provide an additional $265 million toward their employees' retirement, and local governmental entities will have to provide the rest. If more money is not appropriated by the Legislature to pay for the increase, the state agencies, university and community colleges and local school districts will have to make cuts in other areas so they can meet the mandate of the PERS Board. Local governmental entities also are required to provide the funds for the increase. Under current law, the Legislature cannot prevent the employer increase from going into effect.
A bill is pending in the Legislature, though — House Bill 605 — that could be used to give the Legislature final authority over whether to enact such an increase. Legislators have expressed frustration this year with the PERS board's decision to increase the employer contribution rate.
When asked if he planned to bring the bill up for consideration before the full chamber, House Appropriations Chair John Read, R-Gautier, said, “All I can say is the bill is on the calendar. It is out there. It might need some more research.”
During a recent meeting, Senate Appropriations Chair Briggs Hopson, R-Vicksburg, said he understands the need to ensure the pension plan is properly funded, but also expressed concern that the actions of the PERS Board have “a direct impact on the state agencies and programs and opportunities for other people to have jobs and salaries and not get laid off and have cuts in a number of areas.”
Higgins, the executive director of PERS, said, “We just have to make sure it is fiduciary (and) that the system is funded property.” Higgins said the board postponed recommendations of its financial experts to increase the rates in earlier years because of the impact it would have on state and local budgets.
But he said under state law, the only option the board has to correct any funding deficiencies is to increase the employer contribution rate. It would take the Legislature changing the law to allow the board to increase the employee contribution rate or to change the level of benefits. The Legislature has the authority to take such action.
Higgins said more than 300,000 people are members of the system, meaning they are current retirees receiving benefits or are eligible to receive benefits in future years because of their public service. He said the average retiree receives an annual benefit of $26,000.
The planned increase in the employer benefit, which is not slated to go into effect until October, comes on the heels of a year when the system lost more than 8% on its investments. The board postponed recommended increases in the employer contribution rate the past two years in part because of investment earnings of 32.71% in 2020.
But Higgins said the rate increase is not because of investment earnings for any one year. He said it is being enacted because of the long-term prognosis for the system.
The system's current full-funding ratio is about 61%, meaning it has the assets to pay the benefits of 61% of all the people in the system, ranging from the newest hires to those already retired. It is recommended that a state retirement system has a funding ratio of about 80%.
Hopson pointed out that the Mississippi Public Employee Retirement System employer contribution rate and the rate paid by employees (9% of their paycheck) is among the highest in the country. Higgins agreed, saying the national rate for employees in similar plansis about 6% of their paychecks, and for employers about 15%. The employer rate in Mississippi is currently 17.4%.
Lawmakers questioned whether the board is hiring competent experts to oversee the system and to make investments.
Higgins responded the system's investment earnings are comparable to those in other states.
But he said the system is stressed by the fact that additional benefits were added for employers in the late 1990s and early 2000s without a method to pay for those benefits.
In addition, the current governmental workforce is shrinking while the number of retirees in the system is growing. Higgins said during the past 10 years, the governmental workforce is down by about 10%, while the number of retirees has increased by more than 25%.
“Every time we take a public service at the state or local level that was performed by a PERS contributing employee and privatize and give it to a someone who is not contributing, that ratio gets more out of whack,” said Sen. David Blount, D-Jackson.
Higgins said the board could provide recommendations on how to reduce the cost to the system. In the past some legislators have talked about temporarily suspending or altering the annual automatic 3% cost of living increase. But outcry from retirees who represent about 10% of the state's population has stymied those efforts.
Higgins said another option would be to change the benefits for new hires. While that would help long term, Higgins said it would not be an immediate fix.
Sen. Jason Barrett, R-Brookhaven, asked if the board had made any recommendations for the 2023 Legislature to consider. Higgins said it has not, but added it is his understanding that there is not an appetite to address the issue during an election year. But he said the board could provide recommendation.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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Mississippi Today
On this day in 1850
May 3, 1850
Shadrach Minkins, already separated from his family, escaped from the Norfolk, Virginia, home, where he was enslaved. He made his way to Boston, where he did odd jobs until he began working as a waiter at Taft's Cornhill Coffee House.
Months later, Congress passed the Fugitive Slave Act, which gave authorities the power to go into free states and arrest Black Americans who had escaped slavery.
A slave catcher named John Caphart arrived in Boston, with papers for Minkins. While serving breakfast at the coffee house, federal authorities arrested Minkins.
Several local lawyers, including Robert Morris, volunteered to represent him. Three days later, a group of abolitionists, led by African-American abolitionist Lewis Hayden, broke into the Boston courthouse and rescued a surprised Minkins.
“The rescuers headed north along Court Street, 200 or more following like the tail of a comet,” author Gary Collison wrote. They guided him across the Charles River to the Cambridge home of the Rev. Joseph C. Lovejoy, whose brother, Elijah, had been lynched by a pro-slavery mob in Illinois in 1837.
Another Black leader, John J. Smith, helped Minkins get a wagon with horses, and from Cambridge, Hayden, Smith and Minkins traveled to Concord, where Minkins stayed with the Bigelow family, which guided him to the Underground Railroad, making his way to Montreal, spending the rest of his life in Canada as a free man.
Abolitionists cheered his escape, and President Millard Fillmore fumed. Morris, Hayden and others were charged, but sympathetic juries acquitted them. Meanwhile in Montreal, Minkins met fellow fugitives, married, had four children and continued to work as a waiter before operating his own restaurants.
He ended his career running a barbershop before dying in 1875. A play performed in Boston in 2016 told the dramatic story of his escape.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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Mississippi Today
Medgar Evers will receive Presidential Medal of Freedom
At her husband's funeral in 1963, Myrlie Evers heard NAACP Executive Director Roy Wilkins declare, “Medgar Evers believed in his country. It remains to be seen if his country believes in him.”
Later today, his country will declare its belief in him when the family of the slain Mississippi NAACP leader receives the Presidential Medal of Freedom, the highest civilian honor.
But Medgar Evers was more than a civilian. He fought the Nazis in World War II, only to return home and fight racism, this time in the form of Jim Crow, which barred Black Mississippians from the ballot box.
On his 21st birthday, he and other Black veterans of the war went to vote at the courthouse in Decatur, where they were met by white men with guns.
Afterward, he vowed he would never be defeated again and that he would keep fighting by joining others dedicated to the cause of the civil rights movement.
“The movement for equality was always on his mind, and whites' denial of his right to vote in his hometown served as one cog of many in the overall wheel of injustice, a wheel of which he was bound and determined to break,” said Michael Vinson Williams, author of “Medgar Evers: Mississippi Martyr.”
Myrlie Beasley met Medgar Evers on the first day of her freshman year at Alcorn A&M College in fall 1950. As she leaned against a light pole, she said he told her to be careful, “you might get shocked.”
And shocked she was when she fell in love and married him a year later. He was one of those military veterans that her family had warned her about. And he was involved in the movement that her family had avoided.
She joined him in the fight, and they moved to Mississippi's only all-Black town, Mound Bayou, where he helped Dr. T.R.M. Howard lead a boycott. They distributed thousands of fluorescent bumper stickers that read, “Don't Buy Gas Where You Can't Use the Restroom.”
In January 1954, the University of Mississippi School of Law turned Medgar Evers away because of the color of his skin. NAACP officials considered taking his case to court, but they were so impressed with him they hired him instead as the first field secretary for the Mississippi NAACP.
Myrlie Evers worked as his secretary. She said he insisted they call each other “Mr. Evers” and “Mrs. Evers” in the office.
He spent much of his time on the road, putting 40,000 miles a year on his car, recruiting new members, reviving branches and inspiring young people to participate in the movement, including Joyce Ladner, who invited him to speak to the NAACP Youth Council in Hattiesburg.
“He had a quiet courage,” she recalled. “I was always amazed that he drove up and down Mississippi's two-lane highways alone at night. He was a marked man, but he kept on going.”
In 1961, Joan Trumpaeur Mulholland was one of more than 400 Freedom Riders, half of them white, who challenged segregation laws in the South. She and other Riders were arrested and sent to serve their time at the State Penitentiary at Parchman.
When she and other Riders needed a lawyer, Medgar Evers “was the one who took care of it,” she said.
He became a model for her and others in character and courage, talking often to Tougaloo College students, she recalled. “He wasn't intimidated.”
In 1962, Evers installed Leslie McLemore as president of the Rust College chapter of the Mississippi NAACP. “Medgar Evers was really a brilliant man,” he said. “He had an incisive mind and personality that drew people to him. In another era, he could have been a U.S. senator from Mississippi or maybe even President.”
Evers investigated countless cases of intimidation and violence against Black Americans, including the 1955 murder of Emmett Till. Evers often dressed as a sharecropper in those investigations.
No matter where he went, threats of violence followed. He bought an Oldsmobile 88 with a V-8 engine so powerful it would leave most cars behind. On some dark nights across the Mississippi Delta, he floored it to escape those hell-bent on harming him.
His name appeared on Ku Klux Klan “death lists,” and his home telephone rang at all hours with threats to him and his family.
When his daughter, Reena, answered the phone one time, she heard a man saying he planned to torture and kill her father.
In spite of these threats, he stayed. He told Ebony magazine, “The state is beautiful, it is home, I love it here. A man's state is like his house. If it has defects, he tries to remedy them. That's what my job is here.”
On May 20, 1963, Evers talked on television about the mistreatment of Black Mississippians. “If I die, it will be a good cause,” he told The New York Times. “I'm fighting for America just as much as the soldiers in Vietnam.”
Weeks later, President Kennedy delivered his first and only civil rights speech, telling the millions watching on television, “If an American, because his skin is dark, cannot eat lunch in a restaurant open to the public, if he cannot send his children to the best public school available, if he cannot vote for the public officials who will represent him, if, in short, he cannot enjoy the full and free life which all of us want, then who among us would be content to have the color of his skin changed and stand in his place?”
Evers smiled. He and other Black leaders had urged Kennedy to push Congress for a civil rights bill, and now that seemed certain to happen.
Hours later, returning home from a late civil rights meeting, Evers was shot in the back in the driveway of his Jackson home.
Myrlie Evers and their three children dashed outside, saw the blood and screamed. “Daddy!” Reena yelled. “Please get up, Daddy.”
He never did.
“He had the courage to hold an impossible job at a crucial turning point in American history,” said Taylor Branch, the Pulitzer Prize-winning author of a trilogy on the civil rights movement.
For the first time, members of the mainstream press didn't call such a killing “a lynching,” he said. “They called it an assassination.”
In his book, “Parting the Waters,” he wrote, “White people who had never heard of Medgar Evers spoke his name over and over, as though the words themselves had the ring of legend. It seemed fitting that the casket was placed on a slow train through the South, bound for Washington so that the body could lie in state.”
After the casket arrived, Medgar Evers was buried with full military honors at Arlington National Cemetery.
“The tragedy of his martyrdom is eloquent testimony to the courage and dedication of a leader who — in his lifetime — deserved the respect and support of the powerful people who later publicly identified with this man and his cause,” said John Dittmer, author of “Local People: The Struggle for Civil Rights in Mississippi.” “Though long overdue, this award is a fitting tribute to Medgar Evers and his family.”
A year after Evers' assassination, Congress passed the Civil Rights Act on his birthday, and President Lyndon B. Johnson signed the bill into law hours later.
“Medgar Wiley Evers boldly stood against injustice, against oppression, against this country's determination to keep Black people as second-class citizens,” Williams said, “and he was murdered because of his commitment to truth, justice and the struggle for civil and human rights.”
Before leaving office as governor in 1984, William Winter hosted Myrlie Evers and her family at the mansion, where he remarked that Medgar Evers did more than just free Black Mississippians, he freed white Mississippians as well from the bonds of racial segregation, oppression and hate, he said. “We were all prisoners of that system.”
It took three decades before Evers' killer was finally brought to justice in 1994, and that verdict helped to inspire the reopenings of other cases. There have been 24 convictions in civil rights cold cases.
Myrlie Evers' courage to press for justice in her husband's case started all of this, said Leslie McLemore, who helped found the Fannie Lou Hamer National Institute on Citizenship and Democracy. “It would not have happened without her persistence.”
When she learned last week about the Presidential Medal of Freedom honoring her late husband, she exclaimed to her daughter, Reena Evers-Everette, “Oh, my God!”
Then Myrlie Evers grew silent.
“I'm just utterly speechless,” she said, “and frozen with gratitude.”
Evers-Everette still misses the man she knows as “Daddy,” but she perseveres as the executive director for the Medgar and Myrlie Evers Institute, because his spirit inspires her.
“I feel him around me all the time,” she said. “I marvel at his courage, stamina, vision, and commitment for equality and justice for his people and all of humanity. I pray for his love and wisdom as I pursue this work, because I don't want him to have died in vain.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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Mississippi Today
Legislative leaders: Medicaid expansion measure set to die Thursday night
An effort in the Mississippi Legislature to accept billions of dollars in federal money to expand Medicaid coverage to the working poor – a policy which medical experts, clergy and business leaders advocated – was expected to die on a Thursday night deadline, according to House leaders.
House Medicaid Chair Missy McGee, R-Hattiesburg, told reporters that she delivered a proposal to Senate negotiators on Thursday morning that would have allowed voters to have the final say on a statewide referendum in November whether the state should expand Medicaid.
But the Forrest County lawmaker said she had not heard a response from the Senate at all on Thursday, leading her to believe expansion is certain to die by an 8 p.m. Thursday deadline.
“It's disappointing,” McGee said. “We worked really hard on it, and we fought to the bitter end.”
The bill's death would mark an end to months of intense debate at the Capitol and scores of rallies urging legislators to adopt expansion under the federal Affordable Care Act.
For a brief moment on Wednesday, it appeared both chambers at the Capitol might adopt a compromise, but expansion under that proposal contained stipulations the federal government is not likely to approve and could have held expansion here in limbo for years.
House and Senate negotiators on Tuesday night agreed on a compromise that would have expanded Medicaid coverage to individuals who make roughly $20,000 but only if the federal government signed off on a work proposal for recipients – something the federal government was almost certain to reject.
But the deal fell apart after rumors circulated in the Capitol that the Senate did not have enough votes to support the plan and after a large portion of Democrats in the House objected to the work requirement.
House Speaker Jason White, R-West, said he would have had the votes Wednesday in the House to pass the compromise, even with the loss of a significant number of Democratic votes.
But the speaker opted to send the proposal back to negotiations after being told by Senate leaders that the Senate only had 28 votes – not enough to pass it by a needed three-fifths majority.
White said his negotiators offered the referendum option as a compromise that he hoped more Senate Republicans could support. He said he knew it was a long shot that the Senate would accept the proposal, but he thought it was worth a try.
“I am not casting blame,” White said when asked about what he said was the lack of votes in the Senate. “… But I had to act on that information.”
White said he was disappointed that Medicaid expansion did not pass this session, but he said he is glad it was debated and discussed during the session.
“It was a good first step,” he said. “Whether we will look at it next year or the next, I don't know. We will have to reassess.”
White, in his first year as speaker, was the first Republican legislative leader to bring up legislation to enact Medicaid expansion. That original proposal passed by an overwhelming bipartisan vote in the House.
When asked about whether the Senate had the votes to pass the compromise on Wednesday, a spokesperson for Lt. Gov. Delbert Hosemann said, “The Senate was working to secure the votes, but that effort stalled when House Democrats indicated they did not support the bill.”
Democratic leaders in a statement said they have been “crystal clear” about what they were willing to accept in a Medicaid expansion compromise, but whether House Republicans wanted to listen to is “beyond our control.”
“Unfortunately, neither House nor Senate leadership chose to act on the language we proposed,” the statement read. “Instead, we will leave Jackson without a plan to solve our state's increasingly dangerous healthcare crisis.”
If the expansion legislation dies as expected, lawmakers will have to wait until next year during the 2025 session to reconsider the policy that 40 other states have adopted.
Bishop Ronnie Crudup, Sr., the Mid-South Diocese of the Fellowship of International Church who has been advocating for expansion for months at the Capitol, told Mississippi Today he was still hoping the two chambers could reach a “dramatic” last minute compromise.
“But we will continue to advocate for Medicaid expansion,” Cruddup said. “If something dramatic doesn't happen, we will be looking for other routes to make this happen.”
Lawmakers on Thursday said they expect to end the 2024 legislative session early Saturday.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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