MS Pension Contribution Hike Signed into Law

May 24, 2010 ( – Mississippi Governor Haley Barbour last week signed House Bill 1, which increases the contribution level paid by state, city, county, and school district employees into the Public Employees Retirement System.

A Barbour statement said the legislation raises the employees’ contribution from 7.25% to 9%, and is the first increase in employee contributions since 1991. The state contributes 12%.   

Barbour said he believes the legislation brings more equity among payments made by employees and taxpayers.  

“Had this bill not been approved, we would have been forced to shift $70 million from state agency budgets to shore up the retirement system, which would have undoubtedly resulted in significant layoffs of other employees,” Barbour said.