Retirement; PERS members convicted of job-related felonies shall be terminated from system.

H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~ G1/2
26/HR43/R455
PAGE 1 (RF\KP)

To: State Affairs;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Rushing

HOUSE BILL NO. 1018

AN ACT TO AMEND SECTION 25-11-105, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT A MEMBER OF THE PUBLIC EMPLOYEES' RETIREMENT 2
SYSTEM SHALL BE TERMINATED FROM MEMBERSHIP IN THE SYSTEM IF THE 3
MEMBER IS CONVICTED OF OR PLEADS GUILTY OR NOLO CONTENDERE TO A 4
FELONY THAT IS RELATED TO OR IN CONNECTION WITH THE MEMBER'S 5
EMPLOYMENT IN THE STATE SERVICE AND THAT IS COMMITTED ON OR AFTER 6
JULY 1, 2026; TO AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 7
1972, TO PROVIDE THAT A MEMBER WHO IS CHARGED WITH SUCH CRIME WHO 8
RETIRES AND RECEIVES A RETIREMENT ALLOWANCE AFTER BEING CHARGED 9
WITH THE CRIME SHALL CONTINUE TO RECEIVE THE RETIREMENT ALLOWANCE 10
UNTIL SUCH TIME AS THE MEMBER IS CONVICTED OF OR PLEADS GUILTY OR 11
NOLO CONTENDERE TO THE CRIME, AT WHICH TIME THE MEMBER'S 12
RETIREMENT ALLOWANCE SHALL BE TERMINATED; TO AMEND SECTION 13
25-11-117, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE REFUND 14
WITHOUT INTEREST OF THE ACCUMULATED CONTRIBUTIONS OF A MEMBER WHO 15
IS CONVICTED OF SUCH CRIME; TO AMEND SECTIONS 25-15-3 AND 16
25-15-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AN ACTIVE 17
MEMBER OF THE SYSTEM WHO IS PARTICIPATING IN THE STATE AND SCHOOL 18
EMPLOYEES LIFE AND HEALTH INSURANCE PLAN, AND WHO OTHERWISE WOULD 19
BE ELIGIBLE TO RECEIVE A RETIREMENT ALLOWANCE BUT IS TERMINATED 20
FROM MEMBERSHIP IN THE SYSTEM BECAUSE OF THE MEMBER'S CONVICTION 21
OF OR PLEA OF GUILTY OR NOLO CONTENDERE TO SUCH CRIME, IS ELIGIBLE 22
TO CONTINUE TO PARTICIPATE IN THE PLAN UNDER THE SAME CONDITIONS 23
AND COVERAGES FOR RETIRED EMPLOYEES; AND FOR RELATED PURPOSES. 24
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 25
SECTION 1. Section 25-11-105, Mississippi Code of 1972, is 26
amended as follows: 27
25-11-105. I. THOSE WHO ARE ELIGIBLE FOR MEMBERSHIP 28
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 2 (RF\KP)

The membership of this retirement system shall be composed as 29
follows: 30
(a) (i) All persons who become employees in the state 31
service after January 31, 1953, and whose wages are subject to 32
payroll taxes and are lawfully reported on IRS Form W-2, except 33
those specifically excluded, or as to whom election is provided in 34
Articles 1 and 3, shall become members of the retirement system as 35
a condition of their employment. 36
(ii) From and after July 1, 2002, any individual 37
who is employed by a governmental entity to perform professional 38
services shall become a member of the system if the individual is 39
paid regular periodic compensation for those services that is 40
subject to payroll taxes, is provided all other employee benefits 41
and meets the membership criteria established by the regulations 42
adopted by the board of trustees that apply to all other members 43
of the system; however, any active member employed in such a 44
position on July 1, 2002, will continue to be an active member for 45
as long as they are employed in any such position. 46
(b) All persons who become employees in the state 47
service after January 31, 1953, except those specifically excluded 48
or as to whom election is provided in Articles 1 and 3, unless 49
they file with the board before the lapse of sixty (60) days of 50
employment or sixty (60) days after the effective date of the 51
cited articles, whichever is later, on a form prescribed by the 52
board, a notice of election not to be covered by the membership of 53
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 3 (RF\KP)

the retirement system and a duly executed waiver of all present 54
and prospective benefits that would otherwise inure to them on 55
account of their participation in the system, shall become members 56
of the retirement system; however, no credit for prior service 57
will be granted to members who became members of the system before 58
July 1, 2007, until they have contributed to Article 3 of the 59
retirement system for a minimum period of at least four (4) years, 60
or to members who became members of the system on or after July 1, 61
2007, until they have contributed to Article 3 of the retirement 62
system for a minimum period of at least eight (8) years. Those 63
members shall receive credit for services performed before January 64
1, 1953, in employment now covered by Article 3, but no credit 65
shall be granted for retroactive services between January 1, 1953, 66
and the date of their entry into the retirement system, unless the 67
employee pays into the retirement system both the employer's and 68
the employee's contributions on wages paid him during the period 69
from January 31, 1953, to the date of his becoming a contributing 70
member, together with interest at the rate determined by the board 71
of trustees. Members reentering after withdrawal from service 72
shall qualify for prior service under the provisions of Section 73
25-11-117. From and after July 1, 1998, upon eligibility as noted 74
above, the member may receive credit for such retroactive service 75
provided: 76
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 4 (RF\KP)

(i) The member shall furnish proof satisfactory to 77
the board of trustees of certification of that service from the 78
covered employer where the services were performed; and 79
(ii) The member shall pay to the retirement system 80
on the date he or she is eligible for that credit or at any time 81
thereafter before the date of retirement the actuarial cost for 82
each year of that creditable service. The provisions of this 83
subparagraph (ii) shall be subject to the limitations of Section 84
415 of the Internal Revenue Code and regulations promulgated under 85
Section 415. 86
Nothing contained in this paragraph (b) shall be construed to 87
limit the authority of the board to allow the correction of 88
reporting errors or omissions based on the payment of the employee 89
and employer contributions plus applicable interest. 90
(c) All persons who become employees in the state 91
service after January 31, 1953, and who are eligible for 92
membership in any other retirement system shall become members of 93
this retirement system as a condition of their employment, unless 94
they elect at the time of their employment to become a member of 95
that other system. 96
(d) All persons who are employees in the state service 97
on January 31, 1953, and who are members of any nonfunded 98
retirement system operated by the State of Mississippi, or any of 99
its departments or agencies, shall become members of this system 100
with prior service credit unless, before February 1, 1953, they 101
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 5 (RF\KP)

file a written notice with the board of trustees that they do not 102
elect to become members. 103
(e) All persons who are employees in the state service 104
on January 31, 1953, and who under existing laws are members of 105
any fund operated for the retirement of employees by the State of 106
Mississippi, or any of its departments or agencies, shall not be 107
entitled to membership in this retirement system unless, before 108
February 1, 1953, any such person indicates by a notice filed with 109
the board, on a form prescribed by the board, his individual 110
election and choice to participate in this system, but no such 111
person shall receive prior service credit unless he becomes a 112
member on or before February 1, 1953. 113
(f) Each political subdivision of the state and each 114
instrumentality of the state or a political subdivision, or both, 115
is authorized to submit, for approval by the board of trustees, a 116
plan for extending the benefits of this article to employees of 117
any such political subdivision or instrumentality. Each such plan 118
or any amendment to the plan for extending benefits thereof shall 119
be approved by the board of trustees if it finds that the plan, or 120
the plan as amended, is in conformity with such requirements as 121
are provided in Articles 1 and 3; however, upon approval of the 122
plan or any such plan previously approved by the board of 123
trustees, the approved plan shall not be subject to cancellation 124
or termination by the political subdivision or instrumentality. 125
No such plan shall be approved unless: 126
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 6 (RF\KP)

(i) It provides that all services that constitute 127
employment as defined in Section 25-11-5 and are performed in the 128
employ of the political subdivision or instrumentality, by any 129
employees thereof, shall be covered by the plan, with the 130
exception of municipal employees who are already covered by 131
existing retirement plans; however, those employees in this class 132
may elect to come under the provisions of this article; 133
(ii) It specifies the source or sources from which 134
the funds necessary to make the payments required by paragraph (d) 135
of Section 25-11-123 and of paragraph (f)(v)2 and 3 of this 136
section are expected to be derived and contains reasonable 137
assurance that those sources will be adequate for that purpose; 138
(iii) It provides for such methods of 139
administration of the plan by the political subdivision or 140
instrumentality as are found by the board of trustees to be 141
necessary for the proper and efficient administration thereof; 142
(iv) It provides that the political subdivision or 143
instrumentality will make such reports, in such form and 144
containing such information, as the board of trustees may from 145
time to time require; 146
(v) It authorizes the board of trustees to 147
terminate the plan in its entirety in the discretion of the board 148
if it finds that there has been a failure to comply substantially 149
with any provision contained in the plan, the termination to take 150
effect at the expiration of such notice and on such conditions as 151
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 7 (RF\KP)

may be provided by regulations of the board and as may be 152
consistent with applicable federal law. 153
1. The board of trustees shall not finally 154
refuse to approve a plan submitted under paragraph (f), and shall 155
not terminate an approved plan without reasonable notice and 156
opportunity for hearing to each political subdivision or 157
instrumentality affected by the board's decision. The board's 158
decision in any such case shall be final, conclusive and binding 159
unless an appeal is taken by the political subdivision or 160
instrumentality aggrieved by the decision to the Circuit Court of 161
the First Judicial District of Hinds County, Mississippi, in 162
accordance with the provisions of law with respect to civil causes 163
by certiorari. 164
2. Each political subdivision or 165
instrumentality as to which a plan has been approved under this 166
section shall pay into the contribution fund, with respect to 167
wages (as defined in Section 25-11-5), at such time or times as 168
the board of trustees may by regulation prescribe, contributions 169
in the amounts and at the rates specified in the applicable 170
agreement entered into by the board. 171
3. Every political subdivision or 172
instrumentality required to make payments under paragraph (f)(v)2 173
of this section is authorized, in consideration of the employees' 174
retention in or entry upon employment after enactment of Articles 175
1 and 3, to impose upon its employees, as to services that are 176
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 8 (RF\KP)

covered by an approved plan, a contribution with respect to wages 177
(as defined in Section 25-11-5) not exceeding the amount provided 178
in Section 25-11-123(d) if those services constituted employment 179
within the meaning of Articles 1 and 3, and to deduct the amount 180
of the contribution from the wages as and when paid. 181
Contributions so collected shall be paid into the contribution 182
fund as partial discharge of the liability of the political 183
subdivisions or instrumentalities under paragraph (f)(v)2 of this 184
section. Failure to deduct the contribution shall not relieve the 185
employee or employer of liability for the contribution. 186
4. Any state agency, school, political 187
subdivision, instrumentality or any employer that is required to 188
submit contribution payments or wage reports under any section of 189
this chapter shall be assessed interest on delinquent payments or 190
wage reports as determined by the board of trustees in accordance 191
with rules and regulations adopted by the board and delinquent 192
payments, assessed interest and any other amount certified by the 193
board as owed by an employer, may be recovered by action in a 194
court of competent jurisdiction against the reporting agency 195
liable therefor or may, upon due certification of delinquency and 196
at the request of the board of trustees, be deducted from any 197
other monies payable to the reporting agency by any department or 198
agency of the state. 199
5. Each political subdivision of the state 200
and each instrumentality of the state or a political subdivision 201
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 9 (RF\KP)

or subdivisions that submit a plan for approval of the board, as 202
provided in this section, shall reimburse the board for coverage 203
into the expense account, its pro rata share of the total expense 204
of administering Articles 1 and 3 as provided by regulations of 205
the board. 206
(g) The board may, in its discretion, deny the right of 207
membership in this system to any class of employees whose 208
compensation is only partly paid by the state or who are occupying 209
positions on a part-time or intermittent basis. The board may, in 210
its discretion, make optional with employees in any such classes 211
their individual entrance into this system. 212
(h) An employee whose membership in this system is 213
contingent on his own election, and who elects not to become a 214
member, may thereafter apply for and be admitted to membership; 215
but no such employee shall receive prior service credit unless he 216
becomes a member before July 1, 1953, except as provided in 217
paragraph (b). 218
(i) If any member of this system changes his employment 219
to any agency of the state having an actuarially funded retirement 220
system, the board of trustees may authorize the transfer of the 221
member's creditable service and of the present value of the 222
member's employer's accumulation account and of the present value 223
of the member's accumulated membership contributions to that other 224
system, provided that the employee agrees to the transfer of his 225
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 10 (RF\KP)

accumulated membership contributions and provided that the other 226
system is authorized to receive and agrees to make the transfer. 227
If any member of any other actuarially funded system 228
maintained by an agency of the state changes his employment to an 229
agency covered by this system, the board of trustees may authorize 230
the receipt of the transfer of the member's creditable service and 231
of the present value of the member's employer's accumulation 232
account and of the present value of the member's accumulated 233
membership contributions from the other system, provided that the 234
employee agrees to the transfer of his accumulated membership 235
contributions to this system and provided that the other system is 236
authorized and agrees to make the transfer. 237
(j) Wherever state employment is referred to in this 238
section, it includes joint employment by state and federal 239
agencies of all kinds. 240
(k) Employees of a political subdivision or 241
instrumentality who were employed by the political subdivision or 242
instrumentality before an agreement between the entity and the 243
Public Employees' Retirement System to extend the benefits of this 244
article to its employees, and which agreement provides for the 245
establishment of retroactive service credit, and who became 246
members of the retirement system before July 1, 2007, and have 247
remained contributors to the retirement system for four (4) years, 248
or who became members of the retirement system on or after July 1, 249
2007, and have remained contributors to the retirement system for 250
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 11 (RF\KP)

eight (8) years, may receive credit for that retroactive service 251
with the political subdivision or instrumentality, provided that 252
the employee and/or employer, as provided under the terms of the 253
modification of the joinder agreement in allowing that coverage, 254
pay into the retirement system the employer's and employee's 255
contributions on wages paid the member during the previous 256
employment, together with interest or actuarial cost as determined 257
by the board covering the period from the date the service was 258
rendered until the payment for the credit for the service was 259
made. Those wages shall be verified by the Social Security 260
Administration or employer payroll records. Effective July 1, 261
1998, upon eligibility as noted above, a member may receive credit 262
for that retroactive service with the political subdivision or 263
instrumentality provided: 264
(i) The member shall furnish proof satisfactory to 265
the board of trustees of certification of those services from the 266
political subdivision or instrumentality where the services were 267
rendered or verification by the Social Security Administration; 268
and 269
(ii) The member shall pay to the retirement system 270
on the date he or she is eligible for that credit or at any time 271
thereafter before the date of retirement the actuarial cost for 272
each year of that creditable service. The provisions of this 273
subparagraph (ii) shall be subject to the limitations of Section 274
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 12 (RF\KP)

415 of the Internal Revenue Code and regulations promulgated under 275
Section 415. 276
Nothing contained in this paragraph (k) shall be construed to 277
limit the authority of the board to allow the correction of 278
reporting errors or omissions based on the payment of employee and 279
employer contributions plus applicable interest. Payment for that 280
time shall be made beginning with the most recent service. Upon 281
the payment of all or part of the required contributions, plus 282
interest or the actuarial cost as provided above, the member shall 283
receive credit for the period of creditable service for which full 284
payment has been made to the retirement system. 285
(l) Through June 30, 1998, any state service eligible 286
for retroactive service credit, no part of which has ever been 287
reported, and requiring the payment of employee and employer 288
contributions plus interest, or, from and after July 1, 1998, any 289
state service eligible for retroactive service credit, no part of 290
which has ever been reported to the retirement system, and 291
requiring the payment of the actuarial cost for that creditable 292
service, may, at the member's option, be purchased in quarterly 293
increments as provided above at the time that its purchase is 294
otherwise allowed. 295
(m) All rights to purchase retroactive service credit 296
or repay a refund as provided in Section 25-11-101 et seq. shall 297
terminate upon retirement. 298
II. THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP 299
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 13 (RF\KP)

The following classes of employees and officers shall not 300
become members of this retirement system, any other provisions of 301
Articles 1 and 3 to the contrary notwithstanding: 302
(a) Patient or inmate help in state charitable, penal 303
or correctional institutions; 304
(b) Students of any state educational institution 305
employed by any agency of the state for temporary, part-time or 306
intermittent work; 307
(c) Participants of Comprehensive Employment and 308
Training Act of 1973 (CETA) being Public Law 93-203, who enroll on 309
or after July l, 1979; 310
(d) From and after July 1, 2002, individuals who are 311
employed by a governmental entity to perform professional service 312
on less than a full-time basis who do not meet the criteria 313
established in I(a)(ii) of this section. 314
III. TERMINATION OF MEMBERSHIP 315
Membership in this system shall cease by: 316
(a) A member withdrawing his or her accumulated 317
contributions * * *; 318
(b) A member withdrawing from active service with a 319
retirement allowance * * *; 320
(c) A member's death * * *; or 321
(d) A member's conviction of or plea of guilty or nolo 322
contendere to a felony that is related to or in connection with 323
the member's employment in the state service and that is committed 324
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 14 (RF\KP)

on or after July 1, 2026. A member who is terminated from the 325
system because of such a conviction or plea shall have his or her 326
contributions refunded, without interest, in accordance with 327
Section 25-11-117. A member who was convicted is not terminated 328
from membership under this paragraph (d) until all appeals of the 329
conviction have been concluded finally or the time for an appeal 330
from the conviction has expired. The member's employer shall 331
notify the system of the member's conviction or plea, and if the 332
member was convicted, when all appeals of the conviction have been 333
concluded finally or the time for an appeal from the conviction 334
has expired. 335
SECTION 2. Section 25-11-111, Mississippi Code of 1972, is 336
amended as follows: 337
25-11-111. (a) (1) Any member who became a member of the 338
system before July 1, 2007, upon withdrawal from service upon or 339
after attainment of the age of sixty (60) years who has completed 340
at least four (4) years of membership service, or any member who 341
became a member of the system before July 1, 2011, upon withdrawal 342
from service regardless of age who has completed at least 343
twenty-five (25) years of creditable service, shall be entitled to 344
receive a retirement allowance, which shall begin on the first of 345
the month following the date the member's application for the 346
allowance is received by the board, but in no event before 347
withdrawal from service. 348
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 15 (RF\KP)

(2) Any member who became a member of the system on or 349
after July 1, 2007, but before March 1, 2026, upon withdrawal from 350
service upon or after attainment of the age of sixty (60) years 351
who has completed at least eight (8) years of membership service, 352
or any member who became a member of the system on or after July 353
1, 2011, but before March 1, 2026, upon withdrawal from service 354
regardless of age who has completed at least thirty (30) years of 355
creditable service, shall be entitled to receive a retirement 356
allowance, which shall begin on the first of the month following 357
the date the member's application for the allowance is received by 358
the board, but in no event before withdrawal from service. 359
(3) Any member who became a member of the system on or 360
after March 1, 2026, upon withdrawal from service upon or after 361
attainment of the age of sixty-two (62) years who has completed at 362
least eight (8) years of membership service, or upon withdrawal 363
from service regardless of age who has completed at least 364
thirty-five (35) years of creditable service, shall be entitled to 365
receive a retirement allowance, which shall begin on the first of 366
the month following the date the member's application for the 367
allowance is received by the board, but in no event before 368
withdrawal from service. 369
(b) (1) Any member who became a member of the system before 370
July 1, 2007, whose withdrawal from service occurs before 371
attaining the age of sixty (60) years who has completed four (4) 372
or more years of membership service and has not received a refund 373
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 16 (RF\KP)

of his accumulated contributions, shall be entitled to receive a 374
retirement allowance, beginning upon his attaining the age of 375
sixty (60) years, of the amount earned and accrued at the date of 376
withdrawal from service. The retirement allowance shall begin on 377
the first of the month following the date the member's application 378
for the allowance is received by the board, but in no event before 379
withdrawal from service. 380
(2) Any member who became a member of the system on or 381
after July 1, 2007, but before March 1, 2026, whose withdrawal 382
from service occurs before attaining the age of sixty (60) years 383
who has completed eight (8) or more years of membership service 384
and has not received a refund of his accumulated contributions, 385
shall be entitled to receive a retirement allowance, beginning 386
upon his attaining the age of sixty (60) years, of the amount 387
earned and accrued at the date of withdrawal from service. The 388
retirement allowance shall begin on the first of the month 389
following the date the member's application for the allowance is 390
received by the board, but in no event before withdrawal from 391
service. 392
(3) Any member who became a member of the system on or 393
after March 1, 2026, whose withdrawal from service occurs before 394
attaining the age of sixty-two (62) years who has completed eight 395
(8) or more years of membership service and has not received a 396
refund of his accumulated contributions, shall be entitled to 397
receive a retirement allowance, beginning upon his attaining the 398
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 17 (RF\KP)

age of sixty-two (62) years, of the amount earned and accrued at 399
the date of withdrawal from service. The retirement allowance 400
shall begin on the first of the month following the date the 401
member's application for the allowance is received by the board, 402
but in no event before withdrawal from service. 403
(c) Any member in service who has qualified for retirement 404
benefits may select any optional method of settlement of 405
retirement benefits by notifying the Executive Director of the 406
Board of Trustees of the Public Employees' Retirement System in 407
writing, on a form prescribed by the board, of the option he has 408
selected and by naming the beneficiary of the option and 409
furnishing necessary proof of age. The option, once selected, may 410
be changed at any time before actual retirement or death, but upon 411
the death or retirement of the member, the optional settlement 412
shall be placed in effect upon proper notification to the 413
executive director. 414
(d) Any member who became a member of the system before July 415
1, 2011, shall be entitled to an annual retirement allowance which 416
shall consist of: 417
(1) A member's annuity, which shall be the actuarial 418
equivalent of the accumulated contributions of the member at the 419
time of retirement computed according to the actuarial table in 420
use by the system; and 421
(2) An employer's annuity, which, together with the 422
member's annuity provided above, shall be equal to two percent 423
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 18 (RF\KP)

(2%) of the average compensation for each year of service up to 424
and including twenty-five (25) years of creditable service, and 425
two and one-half percent (2-1/2%) of the average compensation for 426
each year of service exceeding twenty-five (25) years of 427
creditable service. 428
(3) Any retired member or beneficiary thereof who was 429
eligible to receive a retirement allowance before July 1, 1991, 430
and who is still receiving a retirement allowance on July 1, 1992, 431
shall receive an increase in the annual retirement allowance of 432
the retired member equal to one-eighth of one percent (1/8 of 1%) 433
of the average compensation for each year of state service in 434
excess of twenty-five (25) years of membership service up to and 435
including thirty (30) years. The maximum increase shall be 436
five-eighths of one percent (5/8 of 1%). In no case shall a 437
member who has been retired before July 1, 1987, receive less than 438
Ten Dollars ($10.00) per month for each year of creditable service 439
and proportionately for each quarter year thereof. Persons 440
retired on or after July 1, 1987, shall receive at least Ten 441
Dollars ($10.00) per month for each year of service and 442
proportionately for each quarter year thereof reduced for the 443
option selected. However, such Ten Dollars ($10.00) minimum per 444
month for each year of creditable service shall not apply to a 445
retirement allowance computed under Section 25-11-114 based on a 446
percentage of the member's average compensation. 447
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 19 (RF\KP)

(e) Any member who became a member of the system on or after 448
July 1, 2011, but before March 1, 2026, shall be entitled to an 449
annual retirement allowance which shall consist of: 450
(1) A member's annuity, which shall be the actuarial 451
equivalent of the accumulated contributions of the member at the 452
time of retirement computed according to the actuarial table in 453
use by the system; and 454
(2) An employer's annuity, which, together with the 455
member's annuity provided above, shall be equal to two percent 456
(2%) of the average compensation for each year of service up to 457
and including thirty (30) years of creditable service, and two and 458
one-half percent (2-1/2%) of average compensation for each year of 459
service exceeding thirty (30) years of creditable service. 460
(f) Any member who became a member of the system on or after 461
July 1, 2011, but before March 1, 2026, upon withdrawal from 462
service upon or after attaining the age of sixty (60) years who 463
has completed at least eight (8) years of membership service, or 464
any such member upon withdrawal from service regardless of age who 465
has completed at least thirty (30) years of creditable service, 466
shall be entitled to receive a retirement allowance computed in 467
accordance with the formula set forth in subsection (e) of this 468
section. In the case of the retirement of any member who has 469
attained age sixty (60) but who has not completed at least thirty 470
(30) years of creditable service, the retirement allowance shall 471
be computed in accordance with the formula set forth in subsection 472
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 20 (RF\KP)

(e) of this section except that the total annual retirement 473
allowance shall be reduced by an actuarial equivalent factor for 474
each year of creditable service below thirty (30) years or the 475
number of years in age that the member is below age sixty-five 476
(65), whichever is less. 477
(g) Any member who became a member of the system on or after 478
March 1, 2026, upon withdrawal from service upon or after 479
attainment of the age of sixty-five (65) years who has completed 480
at least eight (8) years of membership service, or upon withdrawal 481
from service at the age of sixty-two (62) who has completed at 482
least thirty (30) years of creditable service, or upon withdrawal 483
from service regardless of age who has completed at least 484
thirty-five (35) years of creditable service, shall be entitled to 485
an annual retirement allowance which shall consist of a member's 486
annuity, which annuity shall be equal to one percent (1%) of the 487
average compensation for each year of creditable service. In the 488
case of the retirement of any member who has attained the age of 489
sixty-two (62) but has not completed at least thirty (30) years of 490
creditable service, the total annual retirement allowance 491
specified in this subsection (g) shall be reduced by an actuarial 492
equivalent factor for each year of creditable service below thirty 493
(30) years or the number of years in age that the member is below 494
age sixty-five (65), whichever is less. 495
(h) A person who is charged with a felony that is related to 496
or in connection with the member's employment in the state service 497
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 21 (RF\KP)

and that is committed on or after July 1, 2026, who withdraws from 498
service and receives a retirement allowance under this section 499
after being charged with the crime, shall continue to receive the 500
retirement allowance until such time as the member is convicted of 501
or pleads guilty or nolo contendere to the crime, and if the 502
member was convicted, until such time as all appeals of the 503
conviction have been concluded finally or the time for an appeal 504
from the conviction has expired, at which time the member's 505
retirement allowance shall be terminated. If a member's 506
retirement allowance is terminated under this subsection and the 507
total amount that the member received from the retirement 508
allowance is less than the amount of the member's accumulated 509
contributions, the member shall be refunded the difference between 510
the amount received from the retirement allowance and the amount 511
of his or her contributions in accordance with Section 25-11-117. 512
The member's employer shall notify the system of the member's 513
conviction or plea, and if the member was convicted, when all 514
appeals of the conviction have been concluded finally or the time 515
for an appeal from the conviction has expired. 516
(i) No member, except members excluded by the Age 517
Discrimination in Employment Act Amendments of 1986 (Public Law 518
99-592), under either Article 1 or Article 3 in state service 519
shall be required to retire because of age. 520
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 22 (RF\KP)

( * * *j) No payment on account of any benefit granted under 521
the provisions of this section shall become effective or begin to 522
accrue until January 1, 1953. 523
( * * *k) (1) A retiree or beneficiary may, on a form 524
prescribed by and filed with the retirement system, irrevocably 525
waive all or a portion of any benefits from the retirement system 526
to which the retiree or beneficiary is entitled. The waiver shall 527
be binding on the heirs and assigns of any retiree or beneficiary 528
and the same must agree to forever hold harmless the Public 529
Employees' Retirement System of Mississippi from any claim to the 530
waived retirement benefits. 531
(2) Any waiver under this subsection shall apply only 532
to the person executing the waiver. A beneficiary shall be 533
entitled to benefits according to the option selected by the 534
member at the time of retirement. However, a beneficiary may, at 535
the option of the beneficiary, execute a waiver of benefits under 536
this subsection. 537
(3) The retirement system shall retain in the annuity 538
reserve account amounts that are not used to pay benefits because 539
of a waiver executed under this subsection. 540
(4) The board of trustees may provide rules and 541
regulations for the administration of waivers under this 542
subsection. 543
SECTION 3. Section 25-11-117, Mississippi Code of 1972, is 544
amended as follows: 545
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 23 (RF\KP)

25-11-117. (1) A member may be paid a refund of the amount 546
of accumulated contributions to the credit of the member in the 547
annuity savings account, provided that the member has withdrawn 548
from state service and has not returned to state service on the 549
date the refund of the accumulated contributions would be paid. 550
That refund of the contributions to the credit of the member in 551
the annuity savings account shall be paid within ninety (90) days 552
from receipt in the office of the retirement system of the 553
properly completed form requesting the payment. The accumulated 554
contributions of a member who is terminated from membership in the 555
system because of the member's conviction of or plea of guilty or 556
nolo contendere to a crime, as provided for under Section 557
25-11-105 III(d), or the amount of the member's accumulated 558
contributions that the member has not received from a retirement 559
allowance, as provided under Section 25-11-111(h), shall be 560
refunded, without interest, to the member within ninety (90) days 561
from the date that the retirement system receives notice from the 562
member's employer of the member's conviction or plea, and if the 563
member was convicted, the date that all appeals of the conviction 564
have been concluded finally or the time for an appeal from the 565
conviction has expired. In the event of death before retirement 566
of any member whose spouse and/or children are not entitled to a 567
retirement allowance, the accumulated contributions to the credit 568
of the deceased member in the annuity savings account shall be 569
paid to the designated beneficiary on file in writing in the 570
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 24 (RF\KP)

office of the executive director of the board of trustees within 571
ninety (90) days from receipt of a properly completed form 572
requesting the payment. If there is no such designated 573
beneficiary on file for the deceased member in the office of the 574
system, upon the filing of a proper request with the board, the 575
contributions to the credit of the deceased member in the annuity 576
savings account shall be refunded under Section 25-11-117.1(1). 577
The payment of the refund shall discharge all obligations of the 578
retirement system to the member on account of any creditable 579
service rendered by the member before the receipt of the refund. 580
By the acceptance of the refund, the member shall waive and 581
relinquish all accrued rights in the system. 582
(2) Under the Unemployment Compensation Amendments of 1992 583
(Public Law 102-318 (UCA)), a member or the spouse of a member who 584
is an eligible beneficiary entitled to a refund under this section 585
may elect, on a form prescribed by the board under rules and 586
regulations established by the board, to have an eligible rollover 587
distribution of accumulated contributions payable under this 588
section paid directly to an eligible retirement plan, as defined 589
under applicable federal law, or an individual retirement account. 590
If the member or the spouse of a member who is an eligible 591
beneficiary makes that election and specifies the eligible 592
retirement plan or individual retirement account to which the 593
distribution is to be paid, the distribution will be made in the 594
form of a direct trustee-to-trustee transfer to the specified 595
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 25 (RF\KP)

eligible retirement plan. A nonspouse beneficiary may elect to 596
have an eligible rollover distribution paid in the form of a 597
direct trustee-to-trustee transfer to an individual retirement 598
account established to receive the distribution on behalf of the 599
nonspouse beneficiary. Flexible rollovers under this subsection 600
shall not be considered assignments under Section 25-11-129. 601
(3) (a) If any person who has received a refund, reenters 602
the state service and again becomes a member of the system before 603
July 1, 2007, the member may repay all or part of the amounts 604
previously received as a refund, together with regular interest 605
covering the period from the date of refund to the date of 606
repayment; however, the amounts that are repaid by the member and 607
the creditable service related thereto shall not be used in any 608
benefit calculation or determination until the member has remained 609
a contributor to the system for a period of at least four (4) 610
years after the member's reentry into state service. Repayment 611
for that time shall be made beginning with the most recent service 612
for which refund has been made. Upon the repayment of all or part 613
of that refund and interest, the member shall again receive credit 614
for the period of creditable service for which full repayment has 615
been made to the system. 616
(b) If any person who has received a refund, reenters 617
the state service and again becomes a member of the system on or 618
after July 1, 2007, but before March 1, 2026, the member may repay 619
all or part of the amounts previously received as a refund, 620
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 26 (RF\KP)

together with regular interest covering the period from the date 621
of refund to the date of repayment; however, the amounts that are 622
repaid by the member and the creditable service related thereto 623
shall not be used in any benefit calculation or determination 624
until the member has remained a contributor to the system for a 625
period of at least eight (8) years after the member's reentry into 626
state service. Repayment for that time shall be made beginning 627
with the most recent service for which refund has been made. Upon 628
the repayment of all or part of that refund and interest, the 629
member shall again receive credit for the period of creditable 630
service for which full repayment has been made to the system. 631
(c) If any person who has received a refund reenters 632
state service and again becomes a member of the system on or after 633
March 1, 2026, the member shall not be eligible to repay any 634
portion of amounts previously received as a refund and may not 635
receive creditable service for service rendered before March 1, 636
2026. 637
(4) (a) In order to provide a source of income to members 638
who have applied for disability benefits under Section 25-11-113 639
or 25-11-114, the board may provide, at the employee's election, a 640
temporary benefit to be paid from the member's accumulated 641
contributions, if any, without forfeiting the right to pursue 642
disability benefits, provided that the member has exhausted all 643
personal and medical leave and has terminated his or her 644
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 27 (RF\KP)

employment. The board may prescribe rules and regulations for 645
carrying out the provisions of this subsection (4). 646
(b) If a member who has elected to receive temporary 647
benefits under this subsection later applies for a refund of his 648
or her accumulated contributions, all amounts paid under this 649
subsection shall be deducted from the accumulated contributions 650
and the balance will be paid to the member. If a member who has 651
elected to receive temporary benefits under this subsection is 652
later approved for a disability retirement allowance, and a 653
service retirement allowance or survivor benefits are paid on the 654
account, the board shall adjust the benefits in such a manner that 655
no more than the actuarial equivalent of the benefits to which the 656
member or beneficiary was or is entitled shall be paid. 657
(c) The board may study, develop and propose a 658
disability benefit structure, including short- and long-term 659
disability benefits, provided that it is the actuarial equivalent 660
of the benefits currently provided in Section 25-11-113 or 661
25-11-114. 662
SECTION 4. Section 25-15-3, Mississippi Code of 1972, is 663
amended as follows: 664
25-15-3. For the purposes of this article, the words and 665
phrases used * * * in this section shall have the following 666
meanings: 667
(a) "Employee" means a person who works full time for 668
the State of Mississippi and receives his compensation in a direct 669
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 28 (RF\KP)

payment from a department, agency or institution of the state 670
government and any person who works full time for any school 671
district, community/junior college, public library or 672
university-based program authorized under Section 37-23-31 for 673
deaf, aphasic and emotionally disturbed children or any regular 674
nonstudent bus driver. This * * * term include legislators, 675
employees of the legislative branch and the judicial branch of the 676
state and "employees" shall include full-time salaried judges and 677
full-time district attorneys and their staff and full-time 678
compulsory school attendance officers. For the purposes of this 679
article, any "employee" making contributions to the * * * Public 680
Employees' Retirement System or the Highway Safety Patrol 681
Retirement System shall be considered a full-time employee. For 682
purposes of this article, "employee" shall not mean contract 683
personnel. 684
(b) "Department" means the Department of Finance and 685
Administration. 686
(c) "Plan" means the State and School Employees Life 687
and Health Insurance Plan created under this article. 688
(d) "Fund" means the State and School Employees 689
Insurance Fund set up under this article. 690
(e) "Retiree" "or retired employee" means any employee 691
retired under * * * Public Employees' Retirement System or the 692
Highway Safety Patrol Retirement System, and any person who is 693
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 29 (RF\KP)

participating in the plan under the authority of Section 694
25-15-13(2). 695
(f) "Board" means the State and School Employees Health 696
Insurance Management Board created under Section 25-15-303. 697
SECTION 5. Section 25-15-13, Mississippi Code of 1972, is 698
amended as follows: 699
25-15-13. (1) Each eligible employee may participate in the 700
plan by signing up for the plan at the time of employment. Each 701
eligible employee who declines coverage under the plan must sign a 702
waiver of coverage. After acceptance in the plan, the employee 703
may cease his or her participation by filing a specific disclaimer 704
with the board. Forms for this purpose shall be prescribed and 705
issued by the board. All eligible employees will be eligible to 706
participate in the plan on the effective date of the plan or on 707
the date on which they are employed by the state, whichever is 708
later, provided they make the necessary contributions as provided 709
in this article. Spouses of employees, unmarried dependent 710
children from birth to age nineteen (19) years, unmarried 711
dependent children who are full-time students up to age 712
twenty-five (25) years, and children with physical or mental 713
disabilities, regardless of age, are eligible under the plan as of 714
the date the employee becomes eligible. If both spouses are 715
eligible employees who participate in the plan, the benefits shall 716
apply individually to each spouse by virtue of his or her 717
participation in the plan. If those spouses also have one or more 718
H. B. No. 1018 *HR43/R455* ~ OFFICIAL ~
26/HR43/R455
PAGE 30 (RF\KP)
ST: Retirement; PERS members convicted of job-
related felonies shall be terminated from
system.
eligible dependents participating in the plan, the cost of their 719
dependents shall be calculated at a special family plan rate. The 720
cost for participation by the dependents shall be paid by the 721
spouse who elects to carry such dependents under his or her 722
coverage. 723
(2) An active member of the Public Employees' Retirement 724
System who is participating in the plan, and who otherwise would 725
be eligible to receive a retirement allowance under Section 726
25-11-111 but is terminated from membership in the system because 727
of the member's conviction of or plea of guilty or nolo contendere 728
to a crime, as provided for under Section 25-11-105 III(d), is 729
eligible to continue to participate in the plan under the same 730
conditions and coverages for retired employees. 731
SECTION 6. This act shall take effect and be in force from 732
and after July 1, 2026. 733