Mind Over Money

So the State legislature finally decided to pony up additional money to fund PERS appropriately. Their portion will increase from 14.26 percent to 15.75 percent. Of course, had they been funding it all along as outlined by the actuaries, this big jump would not be necessary. And how will the State of Mississippi come up [...]

Haley Barbour is ready for a life of retirement– golf, bouncing grandchildren on his knee, more golf, speechifying and lobbying. As Barbour hangs up his hat as governor of Mississippi, he will transition to a different type of life. After all, he’s 64 years old. It’s time for him to give up the nine to [...]

Sometimes we choose by not choosing. Behavioral economists have long recognized our tendency to avoid making decisions. The more difficult the decision, the more we avoid the question all together. Thaler and Sunstein wrote a book called “Nudge.” In it, they cite all kinds of instances of this tendency to avoid choosing. Of course, the [...]

I’ve never been to Wisconsin, but I’m imagining what it will be like when Wisconsin comes to Mississippi. Gov. Barbour has appointed a commission to “examine” the state retirement system, affectionately known as PERS. PERS is a defined benefit plan, aka pension plan. Its benefits are based on longevity, age at retirement, and salary. The [...]

The idea of retirement, much less a plan to cover it, is a modern one. In most countries, Grandma just moves in with you when she can’t support herself anymore. General Motors started the first private retirement plan in 1950 in the United States. It was a defined benefit plan, also known as a pension. [...]