Chapters

00:00 Introduction to Financial Resolutions for 2026

00:27 Building an Emergency Fund

01:32 Auditing Service Credit and Leave

02:23 Conducting an Annual Beneficiary Review

03:14 Establishing a Health Savings Account (HSA)

04:11 Maximizing Mississippi Deferred Compensation

05:18 Advanced Retirement Application

06:02 Calculating Your Net Worth

Transcript

Hi everyone, I'm Ryan Earley, host of the PERS Pro YouTube channel. With the new year comes new resolutions. Today, we are reviewing seven financial resolutions PERS members should be considering in 2026. Let's get started.

For each of the seven resolutions, I'll be describing what they are, the benefits they provide, action steps you should take now, and pro tips that go beyond the basics.

Resolution number one, establish an emergency fund. While your PERS pension provides a reliable long-term foundation, is not liquid. PERS does not allow for loans, partial refunds, or hardship withdrawals of your contributions. Resolve to build a cash cushion outside of PERS. This can be a separate savings account from your day-to-day checking account. Benefit. This ensures you can handle unexpected repairs or medical bills without going into debt. Pro tip, if you are a public servant in a high demand occupation, three months of living expenses may be enough for your emergency fund. If you have a spouse that stays home and does not work or a spouse that is self-employed six months rather than three months may be more appropriate. At a minimum though, consider setting a goal of having enough in your emergency fund to cover your highest property insurance deductible or medical out-of-pocket maximum, whichever is higher.

Resolution number two, audit your service credit and leave. Your annual member statement is your retirement scorecard. Action- resolve to verify that every year of service in all qualifying, unused, uncompensated personal and major medical leave from prior employers are recorded properly with PERS. Also, make sure your current accumulated unused leave record with your current employer is also accurate. Benefit. This removes anxiety around what PERS benefit payments you will be eligible for as you approach retirement. It also removes any potential delays in your retirement if the error is found closer to your desired retirement date. Pro tip, just 15 to 77 days of accrued leave can add a full quarter year of service credit to your account.

Resolution number three, conduct an annual beneficiary review. Let's face it, life changes. You have marriages, divorces, or you add new children to your family. These changes require immediate updates to your beneficiary file. PERS does not automatically update beneficiaries based on your will. Action- Resolve, review, and submit Form 1B, beneficiary designation, if any changes are needed to your beneficiaries. Benefit. This ensures that those persons you want to receive benefits after you pass actually do so. Pro tip, if you are an inactive member or retiree, your signature on this form must be notarized to be valid. Second pro tip, consider naming secondary beneficiaries in the event your primary beneficiary passes at the same time as you.

Resolution number four, establish an HSA if eligible. If you are enrolled in the base coverage health plan, you are in a qualifying high deductible health plan. Action. Resolve to open and fund a health savings account or HSA through your current employer or independently if one is not available. Benefit, an HSA offers a triple tax advantage. Contributions are tax deductible, growth is tax free, and withdrawals for medical expenses are also tax free. This is a powerful way to build a dedicated fund for healthcare costs. Pro tip, unlike FSA funds or flexible spending accounts, HSA funds do not need to be spent every year. In fact, any unused HSA funds at retirement can be used as a de facto retirement account subject to certain IRS regulations and taxation.

Resolution number five, participate in or maximize Mississippi deferred compensation. Mississippi Deferred Compensation, or MDC for short, is a 457B plan that supplements your pension. In 2026, the elective contribution limit is $24,500. Action. If you aren't participating in MDC, resolve to start with even a small amount of $25 per month. And if you are already participating consider increasing your contribution to go along with any promotion or raises and look at the catch-up provisions for those age 50 and older and those age 60 to 63 if you're eligible. Benefit. This allows you to accumulate additional pre-tax funds for retirement serving as a third leg of your retirement stool filling in any retirement income gaps alongside your PERS pension and Social Security payments. Pro-tip, consider participating in a 457B plan before participating in a 403B plan.

Resolution number six, file advanced retirement application if eligible. If you are already eligible to retire but haven't done so yet, this is your most critical safety net. Action, file form 16 to preselect a benefit payment option and name your beneficiaries. Benefit, this ensures that if you pass away before your official retirement date, your survivors and selected beneficiaries receive the specific lifetime benefit you intended rather than a standard statutory option. Pro tip, when contacting PERS prior to completing forum 16, you will receive an estimate of benefits for most of the benefit payment options.

Resolution number seven, calculate your net worth. This is the scale that measures your financial success. Whether you are just starting out and trying to get a positive net worth or have a goal of surpassing 10,000, 50,000, 100,000, a quarter of a million, half a million, one million, two million, or five million plus, tracking your net worth is the first and number one task I recommend every PERS member do. Action, resolve to list all your assets such as savings accounts, checking accounts, automobiles, certificates of deposit, investment accounts, homes, businesses, et cetera, and then subtract all your liabilities such as your mortgage, student loans, auto loans, credit cards, personal loans, et cetera. The balance is your net worth and you wanna do this once a year. Benefit. you get to see your financial progress year after year. I've been doing this for over a decade now, and it's been incredibly motivating and gratifying seeing our family's progress every year as we approach and then surpass big milestones along the way. Pro tip, don't forget to include the present value of your future pension payments. This is often a large portion of your current net worth.

That wraps up this video, and in our next video, I'm going to be reviewing the Blue Cross Blue Shield State Health Plan changes for 2026. Please make sure you subscribe so you don't miss our future videos. If you found this video helpful, can thank me by liking the video and sharing it with other PERS members. If you have a follow-up question about PERS or anything else related to personal finance that impacts PERS members, please visit our website at perspro.ms and submit your question for a future episode. Thank you for your valuable public service to the state of Mississippi. We'll see you next time.

Disclaimer, this video is for educational and informational purposes only. Neither the host nor this YouTube channel are officially affiliated with, endorsed by, or sponsored by the Public Employment Retirement System of Mississippi. Always consult a qualified professional for personal advice specific to your situation.