Como and PERS

Published 12:00 am Friday, December 17, 2010

Como, PERS inch closer to agreement

By John Howell Sr. and Martha Garrison

Cash-strapped Como will pay the Public Employees Retirement System (PERS) of Mississippi $4,600 as an initial step in resolving a payment demand for almost $39,000 stemming from the retirement of a municipal employee who worked there in the mid-1980s.

Early last month PERS asked Como to pay them approximately $39,000 no later than November 25. When this communique was made public at the November Como Town Board meeting, McGehee Marsh, a private citizen, called Senator Nolan Mettetal and asked him to request that the director of PERS meet with a delegation from Como.

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With heartfelt support from Como Mayor Everette Hill, the requested meeting occurred in Jackson on November 29, with the result that PERS no longer is asking for immediate payment. Marsh along with her husband, David Marsh and Como Alderman Bill Mitchell met with PERS Director Pat Robertson and other PERS officials. Como Municipal Clerk Scott Rhines participated in the meeting by telephone.

Mitchell told town officials and citizens who attended Tuesday night’s meeting that the PERS director was at first “pretty cold to the whole thing; she wanted the money right then and there” but as the representatives from Como explained the origin of the debt and the town’s financial status, “she at least understood our situation. … If nothing else, it gave us time to try to put something together and come back to them,” Mitchell said.

McGehee Marsh said that the PERS director agreed to “not contact the Department of Revenue, which was their next step, to freeze that amount and that she would find out if she could stop the interest accruing.” Marsh said that

 The history behind this latest saga of financial trouble for Como began back in the 1980s, when Charles Jones was Mayor.  For a few years of that decade, 1983-1986, John Boyd was employed by the Town of Como, serving as Chief of Police.  During the years Boyd worked for Como, no retirement was withheld from his paycheck and sent to PERS nor did Como pay a matching amount to PERS on Boyd’s behalf.

Earlier this year John Boyd, in preparing for his retirement, “bought back” from PERS the amount he owed the retirement system. The action triggered the June request from PERS to Como for the $4,600 that Como would have sent to PERS on Boyd’s behalf plus eight per cent per annum interest, accrued over decades, bringing the total to $39,000 and growing.

Compounding the issue’s complexity is that Boyd’s wife, Barba Boyd, served as town clerk during the period of her husband’s employment and would have been responsible for withholding his retirement deductions. Rhines told the town officials that in a letter from Barba Boyd, replying to his inquiry, the former muncipal clerk stated “she was following the directives of the mayor and board; she didn’t know of any legal obligation that she had to do it (withhold the retirement), that she thought her duty was following the directives of the mayor and board.”

Rhines, who has also been corresponding with PERS attorney Kenny Grissett since the November 29 meeting, told town officials Tuesday night that PERS “…would like for us to give them some type of proposal by the end of the month.”

“Kenny also told me there’s no way they can forgive any of the penalty and interest,” Rhines added.

Aldermen approved a lengthy motion by Mitchell that included authorizing Rhines “to prepare financial statements that have been requested by PERS,” to compile the names of current and former Town of Como employees “to check for retirement contributions, …work with Margie Best to locate the bond on Mrs. Boyd,” and to “work with myself and PERS to develop a realistic and mutually agreeable payback plan.”

Further discussion revealed that the present mayor and aldermen could not enter a contract that extends beyond their current terms, which will end in 2013. The discussion also indicated that even if the town could collect from the former clerk’s maximum bond, it would probably amount to only $10,000.

“PERS is holding the town responsible … the agency, which is the town,” Rhines said. “If we’re going to go to all this trouble (searching for the former town clerk’s bond)… we should try to locate any kinds of bonds,” he continued, referring to bonds for the town elected officials who served during the period of John Boyd’s employment.  

Aldermen approved Mitchell’s motion unanimously.

Approval of the $4,600 payment to PERS came near the meeting’s end as aldermen considered what bills to pay with the limited funds then on hand.

“I want y’all to decide about the money to PERS, because I’m afraid if we don’t send a check, … “ Rhines said.

Aldermen Theresa Dishmon, Forster Ruhl and Bill Mitchell voted to pay the claims, including the $4,600, as the money becomes available. Alderman Clark Gregory abstained as is his custom with votes on the monthly claims payment. Alderman Ruby Higgenbottom was absent.