Editor’s Note: Senate Bill 2405, which would have created the Mississippi Windstorm Mitigation Association, died in committee on Feb. 4 and will not be considered by the full Mississippi Senate. This article was originally published on Feb. 3.

JACKSON — Mississippi lawmakers are prioritizing Public Employees’ Retirement System of Mississippi reform, teacher recruitment and insurance relief as key legislative goals for their 2025 session. 

The proposals include diverting state lottery revenue to stabilize PERS, offering incentives to recruit and retain educators, and developing policies to curb rising homeowner and business insurance costs. 

Shoring up PERS through lottery funding 

The state Public Employees’ Retirement System faces a $26.5 billion unfunded liability as of 2024. To address this, House Bill 1, known as the “Build Up Mississippi Act,” would divert $100 million annually from state lottery revenue to PERS until the system reaches an 80% funded ratio, meaning it has enough money to cover 80% of what it owes retirees.

Any additional lottery funds would be redirected to the Education Enhancement Fund, which supports state-funded pre-K schools as well as K-12 schools; the Board of Trustees of State Institutions of Higher Learning, which oversees the state’s eight public universities; and the Mississippi Community College Board, which manages the state’s 15 community colleges.

PERS has struggled as the ratio of active employees paying into the system compared to retirees drawing benefits has dropped significantly. Petal Republican Rep. Larry Byrd said when he entered the legislature in 2008, three public employees contributed to PERS for every retiree, but today, the ratio is 1-to-1. 

“That’s got to be addressed, and I think (diverting lottery revenue is) the most painless thing we can do right now to keep PERS going,” Byrd said. 

In 2024, lawmakers rescinded the PERS governing board’s authority to raise employer contribution rates. Instead of a proposed 5% increase over 3 years, legislators approved a smaller 0.5% increase annually over 5 years, bringing the employer contribution rate to 17.9% of payroll. 

Byrd added that raising employer contributions to PERS could strain government budgets. 

Recruiting and retaining Mississippi educators 

Mississippi continues to struggle with teacher shortages, particularly in special education and science, technology, engineering and math fields. Some lawmakers — like Sen. Dennis DeBar, a Republican from Leakesville — want to reinforce Mississippi’s commitment to fully funding the new Mississippi Student Funding Formula, which prioritizes additional resources for low-income students, English-language learners, gifted students and career-technical programs. 

DeBar, chair of the Senate Education Committee, said targeted financial incentives could help recruit educators in these high-need areas. 

“(It could be) a supplement to help any math teachers or science teachers or dyslexia therapy teachers — we need more of them,” DeBar said. “If there’s a way to incentivize more individuals or students to go into those career fields and teach our students, that’s something I’m really looking at.” 

Rising health insurance costs have undercut recent state-funded teacher pay raises. A 2024 report from Mississippi First found Mississippi teachers, as state employees, pay some of the highest family health insurance premiums in the southeastern United States.

According to the report, in 2024, state of Florida employees paid $702 less per month for family coverage while receiving $490 more in benefits compared to state of Mississippi employees. 

“We’re losing teachers to other states because they can’t afford their insurance,” DeBar said. “It’s unsustainable to pay $1,000 a month or more for health insurance.” 

Public school teachers in the Magnolia State currently have two state health plan options: 

• The “Base” plan, which has lower premiums and fewer benefits.
• The “Select” plan, which costs about $100 more per month and offers broader coverage.

For state employees covering their families, monthly premiums range from $612 to $1,284, a 5% increase from 2023 

DeBar is considering legislation to help offset these costs by increasing pre-tax contributions for teachers, allowing them to retain more take-home pay. 

“I’d like to find a way to supplement the cost of that insurance to put more money in their pocket that would be above the line, so it’s not taxed,” he said. 

In 2024, legislatures did not approve additional teacher compensation, meaning Mississippi teachers have not received a raise beyond scheduled step increases since a 2022 increase.

According to Mississippi First, the inflation-adjusted average teacher salary is now lower than at any point in the 21st century. 

Several proposed measures to increase teacher compensation — recommended in Mississippi First’s 2023 report — “Falling Behind: Teacher Compensation and the Race Against Inflation“, died in committee, including: 

• House Bill 1702: A stipend for teachers in critical shortage areas
• House Bill 1694: A proposal to reduce health insurance premiums for employees on the state health plan
• House Bill 1566: A $4,000 across-the-board raise for teachers

Addressing rising property insurance costs 

Lawmakers are also working to lower insurance rates for homeowners and businesses, particularly in Mississippi’s Gulf Coast region and rural communities. 

Harrison County Sen. Scott DeLano, a Republican, said insurance rate hikes — which have surged from 15% to 70% — have placed severe financial pressure on property owners. The increases are being driven, in part, by inflation and natural disasters. 

“Those issues now are creeping into central Mississippi, the Pine Belt area, and going north,” DeLano said. 

A 2023 Sun Herald report found Mississippi’s Gulf Coast has some of the highest rates of insurance nonrenewal in the nation. 

To counter these rising costs, DeLano said he supports statewide building codes to make structures more storm-resistant. The Mississippi Insurance Department is also launching a pilot program to provide storm-fortified roof replacements to reduce insurance claim payouts after natural disasters. 

Meanwhile, Sen. Brian Rhodes, a Republican from Jackson, and DeBar are promoting Senate Bill 2405 which would establish the Mississippi Windstorm Mitigation Association and focus on lowering insurance risks for homeowners and businesses. 

DeBar also noted poultry farmers —who oversee a key economic sector in Mississippi — are facing skyrocketing insurance costs, which could cut into profits or force farm closures. 

“The reevaluation of our poultry houses this year is going to drive up property taxes on them by 50% in some cases,” DeBar said. “With rising property insurance costs due to tornadoes, this could bankrupt or drastically reduce the profit margin for poultry house owners.” 

What’s next? 

The state House of Representatives approved House Bill 1 — which also cuts the state grocery tax and raises sales and gasoline taxes — on Jan. 17. The matter now sits with the state Senate. 

Senate Bill 2405 has been referred to the upper chamber’s insurance and appropriations committees. Those committees have until Feb. 4 to report, or present, the bill to the full Senate. 

The 2025 legislative session will conclude on April 6.