PERS; law enforcement officers and firefighters hired after 3-1-26 may receive retirement allowance after 25 years of service.

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

By: Representative Rushing

HOUSE BILL NO. 1036

AN ACT TO AMEND SECTIONS 25-11-103, 25-11-109, 25-11-111, 1
25-11-112, 25-11-114, 25-11-115, 25-11-117, 25-11-123 AND 2
25-11-147, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT LAW 3
ENFORCEMENT OFFICERS AND FIREFIGHTERS WHO BECOME MEMBERS OF THE 4
PUBLIC EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER MARCH 1, 2026, 5
SHALL BE ENTITLED TO RECEIVE A RETIREMENT ALLOWANCE AFTER 25 YEARS 6
OF SERVICE REGARDLESS OF AGE; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 25-11-103, Mississippi Code of 1972, is 9
amended as follows: 10
25-11-103. (1) The following words and phrases as used in 11
Articles 1 and 3, unless a different meaning is plainly required 12
by the context, have the following meanings: 13
(a) "Accumulated contributions" means the sum of all 14
the amounts deducted from the compensation of a member and 15
credited to his or her individual account in the annuity savings 16
account, together with regular interest as provided in Section 17
25-11-123. 18
(b) "Actuarial cost" means the amount of funds 19
presently required to provide future benefits as determined by the 20
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board based on applicable tables and formulas provided by the 21
actuary. 22
(c) "Actuarial equivalent" means a benefit of equal 23
value to the accumulated contributions, annuity or benefit, as the 24
case may be, when computed upon the basis of such mortality tables 25
as adopted by the board of trustees, and regular interest. 26
(d) "Actuarial tables" mean such tables of mortality 27
and rates of interest as adopted by the board in accordance with 28
the recommendation of the actuary. 29
(e) "Agency" means any governmental body employing 30
persons in the state service. 31
(f) "Average compensation" means, for persons who 32
became members of the system before March 1, 2026, and for first 33
responders who became members of the system on or after March 1, 34
2026, the average of the four (4) highest years of earned 35
compensation reported for an employee in a fiscal or calendar year 36
period, or combination thereof that do not overlap, or the last 37
forty-eight (48) consecutive months of earned compensation 38
reported for an employee. The four (4) years need not be 39
successive or joined years of service. "Average compensation" 40
means, for persons who became members of the system on or after 41
March 1, 2026, except for first responders who became members of 42
the system on or after March 1, 2026, the average of the eight (8) 43
highest consecutive years of earned compensation reported for an 44
employee in a fiscal or calendar year period, or of the last 45
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ninety-six (96) consecutive months of earned compensation reported 46
for an employee, whichever is greater. 47
In computing the average compensation for retirement, 48
disability or survivor benefits, any amount lawfully paid in a 49
lump sum for personal leave or major medical leave shall be 50
included in the calculation to the extent that the amount does not 51
exceed an amount that is equal to thirty (30) days of earned 52
compensation and to the extent that it does not cause the 53
employee's earned compensation to exceed the maximum reportable 54
amount specified in paragraph (k) of this subsection; however, 55
this thirty-day limitation shall not prevent the inclusion in the 56
calculation of leave earned under federal regulations before July 57
1, 1976, and frozen as of that date as referred to in Section 58
25-3-99. In computing the average compensation, no amounts shall 59
be used that are in excess of the amount on which contributions 60
were required and paid, and no nontaxable amounts paid by the 61
employer for health or life insurance premiums for the employee 62
shall be used. If any member who is or has been granted any 63
increase in annual salary or compensation of more than eight 64
percent (8%) retires within twenty-four (24) months from the date 65
that the increase becomes effective, then the board shall exclude 66
that part of the increase in salary or compensation that exceeds 67
eight percent (8%) in calculating that member's average 68
compensation for retirement purposes. The board may enforce this 69
provision by rule or regulation. However, increases in 70
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compensation in excess of eight percent (8%) per year granted 71
within twenty-four (24) months of the date of retirement may be 72
included in the calculation of average compensation if 73
satisfactory proof is presented to the board showing that the 74
increase in compensation was the result of an actual change in the 75
position held or services rendered, or that the compensation 76
increase was authorized by the State Personnel Board or was 77
increased as a result of statutory enactment, and the employer 78
furnishes an affidavit stating that the increase granted within 79
the last twenty-four (24) months was not contingent on a promise 80
or agreement of the employee to retire. Nothing in Section 81
25-3-31 shall affect the calculation of the average compensation 82
of any member for the purposes of this article. The average 83
compensation of any member who retires before July 1, 1992, shall 84
not exceed the annual salary of the Governor. 85
(g) "Beneficiary" means any person entitled to receive 86
a retirement allowance, an annuity or other benefit as provided by 87
Articles 1 and 3. The term "beneficiary" may also include an 88
organization, estate, trust or entity; however, a beneficiary 89
designated or entitled to receive monthly payments under an 90
optional settlement based on life contingency or under a statutory 91
monthly benefit may only be a natural person. In the event of the 92
death before retirement of any member who became a member of the 93
system before July 1, 2007, and whose spouse and/or children are 94
not entitled to a retirement allowance on the basis that the 95
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member has less than four (4) years of membership service credit, 96
or who became a member of the system on or after July 1, 2007, and 97
whose spouse and/or children are not entitled to a retirement 98
allowance on the basis that the member has less than eight (8) 99
years of membership service credit, and/or has not been married 100
for a minimum of one (1) year or the spouse has waived his or her 101
entitlement to a retirement allowance under Section 25-11-114, the 102
lawful spouse of a member at the time of the death of the member 103
shall be the beneficiary of the member unless the member has 104
designated another beneficiary after the date of marriage in 105
writing, and filed that writing in the office of the executive 106
director of the board of trustees. No designation or change of 107
beneficiary shall be made in any other manner. 108
(h) "Board" means the board of trustees provided in 109
Section 25-11-15 to administer the retirement system created under 110
this article. 111
(i) "Creditable service" means "prior service," 112
"retroactive service" and all lawfully credited unused leave not 113
exceeding the accrual rates and limitations provided in Section 114
25-3-91 et seq., as of the date of withdrawal from service plus 115
"membership service" and other service for which credit is 116
allowable as provided in Section 25-11-109. Except to limit 117
creditable service reported to the system for the purpose of 118
computing an employee's retirement allowance or annuity or 119
benefits provided in this article, nothing in this paragraph shall 120
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limit or otherwise restrict the power of the governing authority 121
of a municipality or other political subdivision of the state to 122
adopt such vacation and sick leave policies as it deems necessary. 123
(j) "Child" means either a natural child of the member, 124
a child that has been made a child of the member by applicable 125
court action before the death of the member, or a child under the 126
permanent care of the member at the time of the latter's death, 127
which permanent care status shall be determined by evidence 128
satisfactory to the board. For purposes of this paragraph, a 129
natural child of the member is a child of the member that is 130
conceived before the death of the member. 131
(k) "Earned compensation" means the full amount earned 132
during a fiscal year by an employee not to exceed the employee 133
compensation limit set pursuant to Section 401(a)(17) of the 134
Internal Revenue Code for the calendar year in which the fiscal 135
year begins and proportionately for less than one (1) year of 136
service. Except as otherwise provided in this paragraph, the 137
value of maintenance furnished to an employee shall not be 138
included in earned compensation. Earned compensation shall not 139
include any amounts paid by the employer for health or life 140
insurance premiums for an employee. Earned compensation shall be 141
limited to the regular periodic compensation paid, exclusive of 142
litigation fees, bond fees, performance-based incentive payments, 143
and other similar extraordinary nonrecurring payments. In 144
addition, any member in a covered position, as defined by Public 145
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Employees' Retirement System laws and regulations, who is also 146
employed by another covered agency or political subdivision shall 147
have the earnings of that additional employment reported to the 148
Public Employees' Retirement System regardless of whether the 149
additional employment is sufficient in itself to be a covered 150
position. In addition, computation of earned compensation shall 151
be governed by the following: 152
(i) In the case of constables, the net earnings 153
from their office after deduction of expenses shall apply, except 154
that in no case shall earned compensation be less than the total 155
direct payments made by the state or governmental subdivisions to 156
the official. 157
(ii) In the case of chancery or circuit clerks, 158
the net earnings from their office after deduction of expenses 159
shall apply as expressed in Section 25-11-123(f)(4). 160
(iii) In the case of members of the State 161
Legislature, all remuneration or amounts paid, except mileage 162
allowance, shall apply. 163
(iv) The amount by which an eligible employee's 164
salary is reduced under a salary reduction agreement authorized 165
under Section 25-17-5 shall be included as earned compensation 166
under this paragraph, provided this inclusion does not conflict 167
with federal law, including federal regulations and federal 168
administrative interpretations under the federal law, pertaining 169
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to the Federal Insurance Contributions Act or to Internal Revenue 170
Code Section 125 cafeteria plans. 171
(v) Compensation in addition to an employee's base 172
salary that is paid to the employee under the vacation and sick 173
leave policies of a municipality or other political subdivision of 174
the state that employs him or her that exceeds the maximums 175
authorized by Section 25-3-91 et seq. shall be excluded from the 176
calculation of earned compensation under this article. 177
(vi) The maximum salary applicable for retirement 178
purposes before July 1, 1992, shall be the salary of the Governor. 179
(vii) Nothing in Section 25-3-31 shall affect the 180
determination of the earned compensation of any member for the 181
purposes of this article. 182
(viii) The value of maintenance furnished to an 183
employee before July 1, 2013, for which the proper amount of 184
employer and employee contributions have been paid, shall be 185
included in earned compensation. From and after July 1, 2013, the 186
value of maintenance furnished to an employee shall be reported as 187
earned compensation only if the proper amount of employer and 188
employee contributions have been paid on the maintenance and the 189
employee was receiving maintenance and having maintenance reported 190
to the system as of June 30, 2013. The value of maintenance when 191
not paid in money shall be fixed by the employing state agency, 192
and, in case of doubt, by the board of trustees as defined in 193
Section 25-11-15. 194
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(ix) Except as otherwise provided in this 195
paragraph, the value of any in-kind benefits provided by the 196
employer shall not be included in earned compensation. As used in 197
this subparagraph, "in-kind benefits" shall include, but not be 198
limited to, group life insurance premiums, health or dental 199
insurance premiums, nonpaid major medical and personal leave, 200
employer contributions for social security and retirement, tuition 201
reimbursement or educational funding, day care or transportation 202
benefits. 203
(l) "Employee" means any person legally occupying a 204
position in the state service, and shall include the employees of 205
the retirement system created under this article. 206
(m) "Employer" means the State of Mississippi or any of 207
its departments, agencies or subdivisions from which any employee 208
receives his or her compensation. 209
(n) "Executive director" means the secretary to the 210
board of trustees, as provided in Section 25-11-15(9), and the 211
administrator of the Public Employees' Retirement System and all 212
systems under the management of the board of trustees. Wherever 213
the term "Executive Secretary of the Public Employees' Retirement 214
System" or "executive secretary" appears in this article or in any 215
other provision of law, it shall be construed to mean the 216
Executive Director of the Public Employees' Retirement System. 217
(o) "Fiscal year" means the period beginning on July 1 218
of any year and ending on June 30 of the next succeeding year. 219
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(p) "Medical board" means the board of physicians or 220
any governmental or nongovernmental disability determination 221
service designated by the board of trustees that is qualified to 222
make disability determinations as provided for in Section 223
25-11-119. 224
(q) "Member" means any person included in the 225
membership of the system as provided in Section 25-11-105. For 226
purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 227
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 228
system withdrew from state service and received a refund of the 229
amount of the accumulated contributions to the credit of the 230
member in the annuity savings account before July 1, 2007, and the 231
person reenters state service and becomes a member of the system 232
again on or after July 1, 2007, and repays all or part of the 233
amount received as a refund and interest in order to receive 234
creditable service for service rendered before July 1, 2007, the 235
member shall be considered to have become a member of the system 236
on or after July 1, 2007, subject to the eight-year membership 237
service requirement, as applicable in those sections. For 238
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 239
25-11-115, if a member of the system withdrew from state service 240
and received a refund of the amount of the accumulated 241
contributions to the credit of the member in the annuity savings 242
account before July 1, 2011, and the person reenters state service 243
and becomes a member of the system again on or after July 1, 2011, 244
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and repays all or part of the amount received as a refund and 245
interest in order to receive creditable service for service 246
rendered before July 1, 2011, the member shall be considered to 247
have become a member of the system on or after July 1, 2011. If a 248
member of the system withdrew from state service and received a 249
refund of the amount of the accumulated contributions to the 250
credit of the member in the annuity savings account before March 251
1, 2026, and the person reenters state service and becomes a 252
member of the system again on or after March 1, 2026, the member 253
shall be considered to have become a member of the system on or 254
after March 1, 2026, and may not receive creditable service for 255
service rendered before March 1, 2026. 256
(r) "Membership service" means service as an employee 257
in a covered position rendered while a contributing member of the 258
retirement system. 259
(s) "Position" means any office or any employment in 260
the state service, or two (2) or more of them, the duties of which 261
call for services to be rendered by one (1) person, including 262
positions jointly employed by federal and state agencies 263
administering federal and state funds. The employer shall 264
determine upon initial employment and during the course of 265
employment of an employee who does not meet the criteria for 266
coverage in the Public Employees' Retirement System based on the 267
position held, whether the employee is or becomes eligible for 268
coverage in the Public Employees' Retirement System based upon any 269
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other employment in a covered agency or political subdivision. If 270
or when the employee meets the eligibility criteria for coverage 271
in the other position, then the employer must withhold 272
contributions and report wages from the noncovered position in 273
accordance with the provisions for reporting of earned 274
compensation. Failure to deduct and report those contributions 275
shall not relieve the employee or employer of liability thereof. 276
The board shall adopt such rules and regulations as necessary to 277
implement and enforce this provision. 278
(t) "Prior service" means: 279
(i) For persons who became members of the system 280
before July 1, 2007, service rendered before February 1, 1953, for 281
which credit is allowable under Sections 25-11-105 and 25-11-109, 282
and which shall allow prior service for any person who is now or 283
becomes a member of the Public Employees' Retirement System and 284
who does contribute to the system for a minimum period of four (4) 285
years. 286
(ii) For persons who became members of the system 287
on or after July 1, 2007, service rendered before February 1, 288
1953, for which credit is allowable under Sections 25-11-105 and 289
25-11-109, and which shall allow prior service for any person who 290
is now or becomes a member of the Public Employees' Retirement 291
System and who does contribute to the system for a minimum period 292
of eight (8) years. 293
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(u) "Regular interest" means interest compounded 294
annually at such a rate as determined by the board in accordance 295
with Section 25-11-121. 296
(v) "Retirement allowance" means an annuity for life as 297
provided in this article, payable each year in twelve (12) equal 298
monthly installments beginning as of the date fixed by the board. 299
The retirement allowance shall be calculated in accordance with 300
Section 25-11-111. However, any spouse who received a spouse 301
retirement benefit in accordance with Section 25-11-111(d) before 302
March 31, 1971, and those benefits were terminated because of 303
eligibility for a social security benefit, may again receive his 304
or her spouse retirement benefit from and after making application 305
with the board of trustees to reinstate the spouse retirement 306
benefit. 307
(w) "Retroactive service" means service rendered after 308
February 1, 1953, for which credit is allowable under Section 309
25-11-105(b) and Section 25-11-105(k). 310
(x) "System" means the Public Employees' Retirement 311
System of Mississippi established and described in Section 312
25-11-101. 313
(y) "State" means the State of Mississippi or any 314
political subdivision thereof or instrumentality of the state. 315
(z) "State service" means all offices and positions of 316
trust or employment in the employ of the state, or any political 317
subdivision or instrumentality of the state, that elect to 318
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participate as provided by Section 25-11-105(f), including the 319
position of elected or fee officials of the counties and their 320
deputies and employees performing public services or any 321
department, independent agency, board or commission thereof, and 322
also includes all offices and positions of trust or employment in 323
the employ of joint state and federal agencies administering state 324
and federal funds and service rendered by employees of the public 325
schools. Effective July 1, 1973, all nonprofessional public 326
school employees, such as bus drivers, janitors, maids, 327
maintenance workers and cafeteria employees, shall have the option 328
to become members in accordance with Section 25-11-105(b), and 329
shall be eligible to receive credit for services before July 1, 330
1973, provided that the contributions and interest are paid by the 331
employee in accordance with that section; in addition, the county 332
or municipal separate school district may pay the employer 333
contribution and pro rata share of interest of the retroactive 334
service from available funds. "State service" shall not include 335
the President of the Mississippi Lottery Corporation and personnel 336
employed by the Mississippi Lottery Corporation. From and after 337
July 1, 1998, retroactive service credit shall be purchased at the 338
actuarial cost in accordance with Section 25-11-105(b). 339
(aa) "Withdrawal from service" or "termination from 340
service" means complete severance of employment in the state 341
service of any member by resignation, dismissal or discharge. 342
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(bb) "First responder" means a law enforcement officer 343
or firefighter. 344
(cc) "Law enforcement officer" means any of the 345
following persons who are authorized to carry a firearm while in 346
the performance of their official duties and who have met the 347
minimum educational and training standards established by the 348
Board on Law Enforcement Officer Standards and Training for 349
permanent, full-time law enforcement officers and have received a 350
certificate from that board: 351
(i) Municipal police officers and narcotics 352
agents, but not officers who are engaged only in administrative or 353
civil duties; 354
(ii) Sheriffs and deputy sheriffs, but not deputy 355
sheriffs who are engaged only in administrative or civil duties; 356
(iii) Constables; 357
(iv) Conservation officers of the Department of 358
Wildlife, Fisheries and Parks; 359
(v) Enforcement officers of the Department of 360
Marine Resources; 361
(vi) Agents and inspectors of the Alcoholic 362
Beverage Control Division of the Department of Revenue; 363
(vii) Commercial transportation inspection station 364
employees, enforcement officers, field inspectors, railroad 365
inspectors and other inspectors of the Department of Public 366
Safety; 367
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(viii) Capitol Police officers of the Department 368
of Public Safety; 369
(ix) State correctional facility guards and 370
enforcement officers of the Department of Corrections; 371
(x) Municipal or county jail officers, guards and 372
enforcement officers; and 373
(xi) Any other full-time officer or employee of 374
the state or any county, municipality or other political 375
subdivision of the state, not listed in subparagraphs (i) through 376
(x) of this paragraph, who is authorized to carry a firearm while 377
in the performance of his or her official duties and who has met 378
the minimum educational and training standards established by the 379
Board on Law Enforcement Officer Standards and Training for 380
permanent, full-time law enforcement officers and has received a 381
certificate from that board. 382
(dd) "Firefighter" means a person who is trained for 383
the prevention and control of loss of life and property from fire 384
or other emergencies, who is assigned to firefighting activity and 385
is required to respond to alarms and perform emergency actions at 386
the location of a fire, hazardous materials or other emergency 387
incident, who is employed full time by the state or any county, 388
municipality or other political subdivision of the state, and who 389
has met the minimum educational and training standards established 390
by the Mississippi Fire Personnel Minimum Standards and 391
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Certification Board for permanent, full-time firefighters and has 392
received a certificate from that board. 393
( * * *ee) The masculine pronoun, wherever used, 394
includes the feminine pronoun. 395
(2) For purposes of this article, the term "political 396
subdivision" shall have the meaning ascribed to such term in 397
Section 25-11-5 and shall also include public charter schools. 398
SECTION 2. Section 25-11-109, Mississippi Code of 1972, is 399
amended as follows: 400
25-11-109. (1) Under such rules and regulations as the 401
board of trustees shall adopt, each person who becomes a member of 402
this retirement system, as provided in Section 25-11-105, on or 403
before July 1, 1953, or who became a member of the system before 404
July 1, 2007, and contributes to the system for a minimum period 405
of four (4) years, or who became a member of the system on or 406
after July 1, 2007, and contributes to the system for a minimum 407
period of eight (8) years, shall receive credit for all state 408
service rendered before February 1, 1953. To receive that credit, 409
the member shall file a detailed statement of all services as an 410
employee rendered by him or her in the state service before 411
February 1, 1953. For any member who joined the system after July 412
1, 1953, and before July 1, 2007, any creditable service for which 413
the member is not required to make contributions shall not be 414
credited to the member until the member has contributed to the 415
system for a minimum period of at least four (4) years. For any 416
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member who joined the system on or after July 1, 2007, but before 417
March 1, 2026, or for any first responder who became a member of 418
the system on or after March 1, 2026, any creditable service for 419
which the member is not required to make contributions shall not 420
be credited to the member until the member has contributed to the 421
system for a minimum period of at least eight (8) years. 422
(2) (a) (i) In the computation of creditable service for 423
service rendered before July 1, 2017, under the provisions of this 424
article, the total months of accumulative service during any 425
fiscal year shall be calculated in accordance with the schedule as 426
follows: ten (10) or more months of creditable service during any 427
fiscal year shall constitute a year of creditable service; seven 428
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 429
year of creditable service; four (4) months to six (6) months 430
inclusive, one-half (1/2) year of creditable service; one (1) 431
month to three (3) months inclusive, one-quarter (1/4) of a year 432
of creditable service. 433
(ii) In the computation of creditable service 434
rendered on or after July 1, 2017, under the provisions of this 435
article, service credit shall be awarded in monthly increments in 436
a manner prescribed by regulations of the board. 437
(b) In no case shall credit be allowed for any period 438
of absence without compensation except for disability while in 439
receipt of a disability retirement allowance, nor shall less than 440
fifteen (15) days of service in any month, or service less than 441
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the equivalent of one-half (1/2) of the normal working load for 442
the position and less than one-half (1/2) of the normal 443
compensation for the position in any month, constitute a month of 444
creditable service, nor shall more than one (1) year of service be 445
creditable for all services rendered in any one (1) fiscal year; 446
however, for a school employee, substantial completion of the 447
legal school term when and where the service was rendered shall 448
constitute a year of service credit. Any state or local elected 449
official shall be deemed a full-time employee for the purpose of 450
creditable service. However, an appointed or elected official 451
compensated on a per diem basis only shall not be allowed 452
creditable service for terms of office. 453
(c) In the computation of any retirement allowance or 454
any annuity or benefits provided in this article, any fractional 455
period of service of less than one (1) year shall be taken into 456
account and a proportionate amount of such retirement allowance, 457
annuity or benefit shall be granted for any such fractional period 458
of service. 459
(d) (i) In the computation of unused leave for 460
creditable service authorized in Section 25-11-103, the following 461
shall govern for members who retire before July 1, 2017: 462
twenty-one (21) days of unused leave shall constitute one (1) 463
month of creditable service and in no case shall credit be allowed 464
for any period of unused leave of less than fifteen (15) days. 465
The number of months of unused leave shall determine the number of 466
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quarters or years of creditable service in accordance with the 467
above schedule for membership and prior service. 468
(ii) In the computation of unused leave for 469
creditable service authorized in Section 25-11-103, the following 470
shall govern for members who retire on or after July 1, 2017: 471
creditable service for unused leave shall be calculated in monthly 472
increments in which one (1) month of service credit shall be 473
awarded for each twenty-one (21) days of unused leave, except that 474
the first fifteen (15) to fifty-seven (57) days of leave shall 475
constitute three (3) months of service for those who became a 476
member of the system before July 1, 2017. 477
(iii) In order for the member to receive 478
creditable service for the number of days of unused leave under 479
this paragraph, the system must receive certification from the 480
governing authority. 481
(iv) For anyone who becomes a member of the system 482
on or after March 1, 2026, except for a first responder who became 483
a member of the system on or after March 1, 2026, no service 484
credit shall be awarded for unused leave. 485
(e) For the purposes of this subsection, members of the 486
system who retire on or after July 1, 2010, shall receive credit 487
for one-half (1/2) day of leave for each full year of membership 488
service accrued after June 30, 2010. The amount of leave received 489
by a member under this paragraph shall be added to the lawfully 490
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credited unused leave for which creditable service is provided 491
under Section 25-11-103(i). 492
(f) For the purpose of this subsection, for members of 493
the system who are elected officers and who retire on or after 494
July 1, 1987, the following shall govern: 495
(i) For service before July 1, 1984, the members 496
shall receive credit for leave (combined personal and major 497
medical) for service as an elected official before that date at 498
the rate of thirty (30) days per year. 499
(ii) For service on and after July 1, 1984, the 500
member shall receive credit for personal and major medical leave 501
beginning July 1, 1984, at the rates authorized in Sections 502
25-3-93 and 25-3-95, computed as a full-time employee. 503
(iii) If a member is employed in a covered 504
nonelected position and a covered elected position simultaneously, 505
that member may not receive service credit for accumulated unused 506
leave for both positions at retirement for the period during which 507
the member was dually employed. During the period during which 508
the member is dually employed, the member shall only receive 509
credit for leave as provided for in this paragraph for an elected 510
official. 511
(iv) For any elected official who becomes a member 512
of the system on or after March 1, 2026, except for an elected 513
official who is a first responder and who became a member of the 514
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system on or after March 1, 2026, no service credit shall be 515
awarded for leave. 516
(3) Subject to the above restrictions and to such other 517
rules and regulations as the board may adopt, the board shall 518
verify, as soon as practicable after the filing of such statements 519
of service, the services therein claimed. 520
(4) Upon verification of the statement of prior service, the 521
board shall issue a prior service certificate certifying to each 522
member the length of prior service for which credit shall have 523
been allowed on the basis of his or her statement of service. So 524
long as membership continues, a prior service certificate shall be 525
final and conclusive for retirement purposes as to such service, 526
provided that any member may within five (5) years from the date 527
of issuance or modification of such certificate request the board 528
of trustees to modify or correct his or her prior service 529
certificate. Any modification or correction authorized shall only 530
apply prospectively. 531
When membership ceases, such prior service certificates shall 532
become void. Should the employee again become a member, he or she 533
shall enter the system as an employee not entitled to prior 534
service credit except as provided in Sections 25-11-105(I), 535
25-11-113 and 25-11-117. 536
(5) Creditable service at retirement, on which the 537
retirement allowance of a member shall be based, shall consist of 538
the membership service rendered by him or her since he or she last 539
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became a member, and also, if he or she has a prior service 540
certificate that is in full force and effect, the amount of the 541
service certified on his or her prior service certificate. 542
(6) Any member who served on active duty in the Armed Forces 543
of the United States, who served in the Commissioned Corps of the 544
United States Public Health Service before 1972 or who served in 545
maritime service during periods of hostility in World War II, 546
shall be entitled to creditable service at no cost for his or her 547
service on active duty in the Armed Forces, in the Commissioned 548
Corps of the United States Public Health Service before 1972 or in 549
such maritime service, provided he or she entered state service 550
after his or her discharge from the Armed Forces or entered state 551
service after he completed such maritime service. The maximum 552
period for such creditable service for all military service as 553
defined in this subsection (6) shall not exceed four (4) years 554
unless positive proof can be furnished by such person that he was 555
retained in the Armed Forces during World War II or in maritime 556
service during World War II by causes beyond his control and 557
without opportunity of discharge. The member shall furnish proof 558
satisfactory to the board of trustees of certification of military 559
service or maritime service records showing dates of entrance into 560
active duty service and the date of discharge. From and after 561
July 1, 1993, no creditable service shall be granted for any 562
military service or maritime service to a member who qualifies for 563
a retirement allowance in another public retirement system 564
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administered by the Board of Trustees of the Public Employees' 565
Retirement System based, in whole or in part, on such military or 566
maritime service. In no case shall the member receive creditable 567
service if the member received a dishonorable discharge from the 568
Armed Forces of the United States. 569
(7) (a) Any member of the Public Employees' Retirement 570
System whose membership service is interrupted as a result of 571
qualified military service within the meaning of Section 414(u)(5) 572
of the Internal Revenue Code, and who has received the maximum 573
service credit available under subsection (6) of this section, 574
shall receive creditable service for the period of qualified 575
military service that does not qualify as creditable service under 576
subsection (6) of this section upon reentering membership service 577
in an amount not to exceed five (5) years if: 578
(i) The member pays the contributions he or she 579
would have made to the retirement system if he or she had remained 580
in membership service for the period of qualified military service 581
based upon his or her salary at the time his or her membership 582
service was interrupted; 583
(ii) The member returns to membership service 584
within ninety (90) days of the end of his or her qualified 585
military service; and 586
(iii) The employer at the time the member's 587
service was interrupted and to which employment the member returns 588
pays the contributions it would have made into the retirement 589
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system for such period based on the member's salary at the time 590
the service was interrupted. 591
(b) The payments required to be made in paragraph 592
(a)(i) of this subsection may be made over a period beginning with 593
the date of return to membership service and not exceeding three 594
(3) times the member's qualified military service; however, in no 595
event shall such period exceed five (5) years. 596
(c) The member shall furnish proof satisfactory to the 597
board of trustees of certification of military service showing 598
dates of entrance into qualified service and the date of discharge 599
as well as proof that the member has returned to active employment 600
within the time specified. 601
(8) Any member of the Public Employees' Retirement System 602
who became a member of the system before July 1, 2007, and who has 603
at least four (4) years of membership service credit, or who 604
became a member of the system on or after July 1, 2007, but before 605
March 1, 2026, or any first responder who became a member of the 606
system on or after March 1, 2026, and who has at least eight (8) 607
years of membership service credit, shall be entitled to receive a 608
maximum of five (5) years' creditable service for service rendered 609
in another state as a public employee of such other state, or a 610
political subdivision, public education system or other 611
governmental instrumentality thereof, or service rendered as a 612
teacher in American overseas dependent schools conducted by the 613
Armed Forces of the United States for children of citizens of the 614
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United States residing in areas outside the continental United 615
States, provided that: 616
(a) The member shall furnish proof satisfactory to the 617
board of trustees of certification of such services from the 618
state, public education system, political subdivision or 619
retirement system of the state where the services were performed 620
or the governing entity of the American overseas dependent school 621
where the services were performed; and 622
(b) The member is not receiving or will not be entitled 623
to receive from the public retirement system of the other state or 624
from any other retirement plan, including optional retirement 625
plans, sponsored by the employer, a retirement allowance including 626
such services; and 627
(c) The member shall pay to the retirement system on 628
the date he or she is eligible for credit for such out-of-state 629
service or at any time thereafter before the date of retirement 630
the actuarial cost as determined by the actuary for each year of 631
out-of-state creditable service. The provisions of this 632
subsection are subject to the limitations of Section 415 of the 633
Internal Revenue Code and regulations promulgated under that 634
section. 635
(9) Any member of the Public Employees' Retirement System 636
who became a member of the system before July 1, 2007, and has at 637
least four (4) years of membership service credit, or who became a 638
member of the system on or after July 1, 2007, but before March 1, 639
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2026, or any first responder who became a member of the system on 640
or after March 1, 2026, and who has at least eight (8) years of 641
membership service credit, and who receives, or has received, 642
professional leave without compensation for professional purposes 643
directly related to the employment in state service shall receive 644
creditable service for the period of professional leave without 645
compensation provided: 646
(a) The professional leave is performed with a public 647
institution or public agency of this state, or another state or 648
federal agency; 649
(b) The employer approves the professional leave 650
showing the reason for granting the leave and makes a 651
determination that the professional leave will benefit the 652
employee and employer; 653
(c) Such professional leave shall not exceed two (2) 654
years during any ten-year period of state service; 655
(d) The employee shall serve the employer on a 656
full-time basis for a period of time equivalent to the 657
professional leave period granted immediately following the 658
termination of the leave period; 659
(e) The contributing member shall pay to the retirement 660
system the actuarial cost as determined by the actuary for each 661
year of professional leave. The provisions of this subsection are 662
subject to the regulations of the Internal Revenue Code 663
limitations; 664
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(f) Such other rules and regulations consistent 665
herewith as the board may adopt and in case of question, the board 666
shall have final power to decide the questions. 667
Any actively contributing member participating in the School 668
Administrator Sabbatical Program established in Section 37-9-77 669
shall qualify for continued participation under this subsection 670
(9). 671
(10) Any member of the Public Employees' Retirement System 672
who became a member of the system before July 1, 2007, and has at 673
least four (4) years of credited membership service, or who became 674
a member of the system on or after July 1, 2007, but before March 675
1, 2026, or any first responder who became a member of the system 676
on or after March 1, 2026, and who has at least eight (8) years of 677
credited membership service, shall be entitled to receive a 678
maximum of ten (10) years creditable service for: 679
(a) Any service rendered as an employee of any 680
political subdivision of this state, or any instrumentality 681
thereof, that does not participate in the Public Employees' 682
Retirement System; or 683
(b) Any service rendered as an employee of any 684
political subdivision of this state, or any instrumentality 685
thereof, that participates in the Public Employees' Retirement 686
System but did not elect retroactive coverage; or 687
(c) Any service rendered as an employee of any 688
political subdivision of this state, or any instrumentality 689
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thereof, for which coverage of the employee's position was or is 690
excluded; provided that the member pays into the retirement system 691
the actuarial cost as determined by the actuary for each year, or 692
portion thereof, of such service. After a member has made full 693
payment to the retirement system for all or any part of such 694
service, the member shall receive creditable service for the 695
period of such service for which full payment has been made to the 696
retirement system. 697
SECTION 3. Section 25-11-111, Mississippi Code of 1972, is 698
amended as follows: 699
25-11-111. (a) (1) Any member who became a member of the 700
system before July 1, 2007, upon withdrawal from service upon or 701
after attainment of the age of sixty (60) years who has completed 702
at least four (4) years of membership service, or any member who 703
became a member of the system before July 1, 2011, or any first 704
responder who became a member of the system on or after March 1, 705
2026, upon withdrawal from service regardless of age who has 706
completed at least twenty-five (25) years of creditable service, 707
shall be entitled to receive a retirement allowance, which shall 708
begin on the first of the month following the date the member's 709
application for the allowance is received by the board, but in no 710
event before withdrawal from service. 711
(2) Any member who became a member of the system on or 712
after July 1, 2007, but before March 1, 2026, or any first 713
responder who became a member of the system on or after March 1, 714
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2026, upon withdrawal from service upon or after attainment of the 715
age of sixty (60) years who has completed at least eight (8) years 716
of membership service, or any member who became a member of the 717
system on or after July 1, 2011, but before March 1, 2026, upon 718
withdrawal from service regardless of age who has completed at 719
least thirty (30) years of creditable service, shall be entitled 720
to receive a retirement allowance, which shall begin on the first 721
of the month following the date the member's application for the 722
allowance is received by the board, but in no event before 723
withdrawal from service. 724
(3) Any member who became a member of the system on or 725
after March 1, 2026, except for a first responder who became a 726
member of the system on or after March 1, 2026, upon withdrawal 727
from service upon or after attainment of the age of sixty-two (62) 728
years who has completed at least eight (8) years of membership 729
service, or upon withdrawal from service regardless of age who has 730
completed at least thirty-five (35) years of creditable service, 731
shall be entitled to receive a retirement allowance, which shall 732
begin on the first of the month following the date the member's 733
application for the allowance is received by the board, but in no 734
event before withdrawal from service. 735
(b) (1) Any member who became a member of the system before 736
July 1, 2007, whose withdrawal from service occurs before 737
attaining the age of sixty (60) years who has completed four (4) 738
or more years of membership service and has not received a refund 739
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of his or her accumulated contributions, shall be entitled to 740
receive a retirement allowance, beginning upon his or her 741
attaining the age of sixty (60) years, of the amount earned and 742
accrued at the date of withdrawal from service. The retirement 743
allowance shall begin on the first of the month following the date 744
the member's application for the allowance is received by the 745
board, but in no event before withdrawal from service. 746
(2) Any member who became a member of the system on or 747
after July 1, 2007, but before March 1, 2026, or any first 748
responder who became a member of the system on or after March 1, 749
2026, whose withdrawal from service occurs before attaining the 750
age of sixty (60) years who has completed eight (8) or more years 751
of membership service and has not received a refund of his or her 752
accumulated contributions, shall be entitled to receive a 753
retirement allowance, beginning upon his or her attaining the age 754
of sixty (60) years, of the amount earned and accrued at the date 755
of withdrawal from service. The retirement allowance shall begin 756
on the first of the month following the date the member's 757
application for the allowance is received by the board, but in no 758
event before withdrawal from service. 759
(3) Any member who became a member of the system on or 760
after March 1, 2026, except for a first responder who became a 761
member of the system on or after March 1, 2026, whose withdrawal 762
from service occurs before attaining the age of sixty-two (62) 763
years who has completed eight (8) or more years of membership 764
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service and has not received a refund of his or her accumulated 765
contributions, shall be entitled to receive a retirement 766
allowance, beginning upon his or her attaining the age of 767
sixty-two (62) years, of the amount earned and accrued at the date 768
of withdrawal from service. The retirement allowance shall begin 769
on the first of the month following the date the member's 770
application for the allowance is received by the board, but in no 771
event before withdrawal from service. 772
(c) Any member in service who has qualified for retirement 773
benefits may select any optional method of settlement of 774
retirement benefits by notifying the Executive Director of the 775
Board of Trustees of the Public Employees' Retirement System in 776
writing, on a form prescribed by the board, of the option he or 777
she has selected and by naming the beneficiary of the option and 778
furnishing necessary proof of age. The option, once selected, may 779
be changed at any time before actual retirement or death, but upon 780
the death or retirement of the member, the optional settlement 781
shall be placed in effect upon proper notification to the 782
executive director. 783
(d) Any member who became a member of the system before July 784
1, 2011, or any first responder who became a member of the system 785
on or after March 1, 2026, shall be entitled to an annual 786
retirement allowance which shall consist of: 787
(1) A member's annuity, which shall be the actuarial 788
equivalent of the accumulated contributions of the member at the 789
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time of retirement computed according to the actuarial table in 790
use by the system; and 791
(2) An employer's annuity, which, together with the 792
member's annuity provided above, shall be equal to two percent 793
(2%) of the average compensation for each year of service up to 794
and including twenty-five (25) years of creditable service, and 795
two and one-half percent (2-1/2%) of the average compensation for 796
each year of service exceeding twenty-five (25) years of 797
creditable service. 798
(3) Any retired member or beneficiary thereof who was 799
eligible to receive a retirement allowance before July 1, 1991, 800
and who is still receiving a retirement allowance on July 1, 1992, 801
shall receive an increase in the annual retirement allowance of 802
the retired member equal to one-eighth of one percent (1/8 of 1%) 803
of the average compensation for each year of state service in 804
excess of twenty-five (25) years of membership service up to and 805
including thirty (30) years. The maximum increase shall be 806
five-eighths of one percent (5/8 of 1%). In no case shall a 807
member who has been retired before July 1, 1987, receive less than 808
Ten Dollars ($10.00) per month for each year of creditable service 809
and proportionately for each quarter year thereof. Persons 810
retired on or after July 1, 1987, shall receive at least Ten 811
Dollars ($10.00) per month for each year of service and 812
proportionately for each quarter year thereof reduced for the 813
option selected. However, such Ten Dollars ($10.00) minimum per 814
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month for each year of creditable service shall not apply to a 815
retirement allowance computed under Section 25-11-114 based on a 816
percentage of the member's average compensation. 817
(e) Any member who became a member of the system on or after 818
July 1, 2011, but before March 1, 2026, shall be entitled to an 819
annual retirement allowance which shall consist of: 820
(1) A member's annuity, which shall be the actuarial 821
equivalent of the accumulated contributions of the member at the 822
time of retirement computed according to the actuarial table in 823
use by the system; and 824
(2) An employer's annuity, which, together with the 825
member's annuity provided above, shall be equal to two percent 826
(2%) of the average compensation for each year of service up to 827
and including thirty (30) years of creditable service, and two and 828
one-half percent (2-1/2%) of average compensation for each year of 829
service exceeding thirty (30) years of creditable service. 830
(f) Any member who became a member of the system on or after 831
July 1, 2011, but before March 1, 2026, upon withdrawal from 832
service upon or after attaining the age of sixty (60) years who 833
has completed at least eight (8) years of membership service, or 834
any such member upon withdrawal from service regardless of age who 835
has completed at least thirty (30) years of creditable service, 836
shall be entitled to receive a retirement allowance computed in 837
accordance with the formula set forth in subsection (e) of this 838
section. In the case of the retirement of any member who has 839
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attained age sixty (60) but who has not completed at least thirty 840
(30) years of creditable service, the retirement allowance shall 841
be computed in accordance with the formula set forth in subsection 842
(e) of this section except that the total annual retirement 843
allowance shall be reduced by an actuarial equivalent factor for 844
each year of creditable service below thirty (30) years or the 845
number of years in age that the member is below age sixty-five 846
(65), whichever is less. 847
(g) Any member who became a member of the system on or after 848
March 1, 2026, except for a first responder who became a member of 849
the system on or after March 1, 2026, upon withdrawal from service 850
upon or after attainment of the age of sixty-five (65) years who 851
has completed at least eight (8) years of membership service, or 852
upon withdrawal from service at the age of sixty-two (62) who has 853
completed at least thirty (30) years of creditable service, or 854
upon withdrawal from service regardless of age who has completed 855
at least thirty-five (35) years of creditable service, shall be 856
entitled to an annual retirement allowance which shall consist of 857
a member's annuity, which annuity shall be equal to one percent 858
(1%) of the average compensation for each year of creditable 859
service. In the case of the retirement of any member who has 860
attained the age of sixty-two (62) but has not completed at least 861
thirty (30) years of creditable service, the total annual 862
retirement allowance specified in this subsection (g) shall be 863
reduced by an actuarial equivalent factor for each year of 864
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creditable service below thirty (30) years or the number of years 865
in age that the member is below age sixty-five (65), whichever is 866
less. 867
(h) No member, except members excluded by the Age 868
Discrimination in Employment Act Amendments of 1986 (Public Law 869
99-592), under either Article 1 or Article 3 in state service 870
shall be required to retire because of age. 871
(i) No payment on account of any benefit granted under the 872
provisions of this section shall become effective or begin to 873
accrue until January 1, 1953. 874
(j) (1) A retiree or beneficiary may, on a form prescribed 875
by and filed with the retirement system, irrevocably waive all or 876
a portion of any benefits from the retirement system to which the 877
retiree or beneficiary is entitled. The waiver shall be binding 878
on the heirs and assigns of any retiree or beneficiary and the 879
same must agree to forever hold harmless the Public Employees' 880
Retirement System of Mississippi from any claim to the waived 881
retirement benefits. 882
(2) Any waiver under this subsection shall apply only 883
to the person executing the waiver. A beneficiary shall be 884
entitled to benefits according to the option selected by the 885
member at the time of retirement. However, a beneficiary may, at 886
the option of the beneficiary, execute a waiver of benefits under 887
this subsection. 888
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(3) The retirement system shall retain in the annuity 889
reserve account amounts that are not used to pay benefits because 890
of a waiver executed under this subsection. 891
(4) The board of trustees may provide rules and 892
regulations for the administration of waivers under this 893
subsection. 894
SECTION 4. Section 25-11-112, Mississippi Code of 1972, is 895
amended as follows: 896
25-11-112. (1) Any member who became a member of the system 897
before March 1, 2026, or any first responder who became a member 898
of the system on or after March 1, 2026, who and is receiving a 899
retirement allowance for service or disability retirement, or any 900
beneficiary thereof, who has received a monthly benefit for at 901
least one (1) full fiscal year, shall be eligible to receive an 902
additional benefit, on December 1 or July 1 of the year as 903
provided in subsection (3) of this section, equal to an amount 904
calculated under paragraph (a) or (b) below: 905
(a) For any member who became a member of the system 906
before July 1, 2011, the sum of: 907
(i) An amount equal to three percent (3%) of the 908
annual retirement allowance multiplied by the number of full 909
fiscal years in retirement before the end of the fiscal year in 910
which the member reaches age fifty-five (55), plus 911
(ii) An additional amount equal to three percent 912
(3%) compounded by the number of full fiscal years in retirement 913
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beginning with the fiscal year in which the member reaches age 914
fifty-five (55), multiplied by the amount of the annual retirement 915
allowance. 916
(b) For any member who became a member of the system on 917
or after July 1, 2011, but before March 1, 2026, or for any first 918
responder who became a member of the system on or after March 1, 919
2026, the sum of: 920
(i) An amount equal to three percent (3%) of the 921
annual retirement allowance multiplied by the number of full 922
fiscal years in retirement before the end of the fiscal year in 923
which the member reaches age sixty (60), plus 924
(ii) An additional amount equal to three percent 925
(3%) compounded by the number of full fiscal years in retirement 926
beginning with the fiscal year in which the member reaches age 927
sixty (60), multiplied by the amount of the annual retirement 928
allowance. 929
(2) The calculation of the beneficiary's additional benefit 930
under subsection (1)(a) or (b) of this section shall be based on 931
the member's age and full fiscal years in retirement as if the 932
member had lived. 933
(3) (a) The additional benefit provided for under this 934
section shall be paid in one (1) payment in December of each year 935
to those persons who are receiving a retirement allowance on 936
December 1 of that year, unless an election is made under this 937
subsection. However, if a retiree who is receiving a retirement 938
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allowance that will terminate upon the retiree's death is 939
receiving the additional benefit in one (1) payment and dies on or 940
after July 1 but before December 1, the beneficiary designated on 941
the retirement application, if any, shall receive in a single 942
payment a fractional part of the additional benefit based on the 943
number of months in which a retirement allowance was received 944
during the fiscal year. Likewise, if a retiree is receiving a 945
retirement allowance that will terminate upon his or her death in 946
two (2) to six (6) monthly installments, any remaining payments of 947
the additional benefit will be paid in a lump sum to the 948
beneficiary designated on the application, or if none, pursuant to 949
Section 25-11-117.1(1). Any similar remaining payments of 950
additional benefits payable under this section to a deceased 951
beneficiary who was receiving a monthly benefit shall be payable 952
in accordance with the provisions of Section 25-11-117.1(2). If 953
the additional monthly benefit is being received in one (1) 954
payment, the additional benefit shall also be prorated based on 955
the number of months in which a retirement allowance was received 956
during the fiscal year when (i) the monthly benefit payable to a 957
beneficiary terminates due to the expiration of an option, 958
remarriage or cessation of dependent status or due to the 959
retiree's return to covered employment, and (ii) the monthly 960
benefit terminates on or after July 1 and before December 1. The 961
board may, in its discretion, allow a retired member or a 962
beneficiary thereof who is receiving the additional annual payment 963
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in the manner provided for in this paragraph to change the manner 964
in which the additional annual payment is received to that 965
provided for in paragraph (b) of this subsection if the retired 966
member or beneficiary submits satisfactory documentation that the 967
continued receipt of the additional annual payment as provided for 968
in this paragraph will cause a financial hardship to the retired 969
member or beneficiary. 970
(b) Retired members or beneficiaries thereof who on 971
July 1, 1999, or July 1 of any fiscal year thereafter, are 972
receiving a retirement allowance, may elect by an irrevocable 973
agreement in writing filed in the Office of the Public Employees' 974
Retirement System no less than thirty (30) days before July 1 of 975
the appropriate year, to begin receiving the additional benefit 976
provided for under this section in twelve (12) equal monthly 977
installments beginning July 1, 1999, or July 1 of any fiscal year 978
thereafter. This irrevocable agreement shall be binding on the 979
member and subsequent beneficiaries. Payment of those monthly 980
installments shall not extend beyond the month in which a 981
retirement allowance is due and payable. The board may, in its 982
discretion, allow a retired member or a beneficiary thereof who is 983
receiving the additional annual payment in the manner provided for 984
in this paragraph to change the manner in which the additional 985
annual payment is received to that provided for in paragraph (a) 986
of this subsection if the retired member or beneficiary submits 987
satisfactory documentation that the continued receipt of the 988
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additional annual payment as provided for in this paragraph will 989
cause a financial hardship to the retired member or beneficiary. 990
(4) The additional payment or payments provided for under 991
this section are for the fiscal year in which they are paid. 992
(5) (a) The amount provided for under subsection (1) 993
(a)(ii) of this section is calculated using the following formula: 994
[(1.03)n - 1] x [annual retirement allowance], 995
where n is the number of full fiscal years in retirement beginning 996
with the fiscal year in which the member reaches age fifty-five 997
(55). 998
(b) The amount provided for under subsection (1)(b)(ii) 999
of this section is calculated using the following formula: 1000
[(1.03)n - 1] x [annual retirement allowance], 1001
where n is the number of full fiscal years in retirement beginning 1002
with the fiscal year in which the member reaches age sixty (60). 1003
(6) Any retired member or beneficiary thereof who has 1004
previously elected to receive the additional annual payment in 1005
monthly installments may elect, upon application on a form 1006
prescribed by the board of trustees, to have that payment made in 1007
one (1) additional payment each year. This written election must 1008
be filed in the Office of the Public Employees' Retirement System 1009
before June 1, 2000, and shall be effective for the fiscal year 1010
beginning July 1, 2000. 1011
(7) In the event of death of a retired member or a 1012
beneficiary thereof who is receiving the additional annual payment 1013
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in two (2) to six (6) monthly installments pursuant to an election 1014
made before July 1, 1999, and who would otherwise be eligible to 1015
receive the additional benefit provided for under this section in 1016
one (1) payment in December of the current fiscal year, any 1017
remaining amounts shall be paid in a lump sum to the designated 1018
beneficiary. 1019
(8) When a member retires after July 1 and has previously 1020
received a retirement allowance for one or more full fiscal years, 1021
the retired member shall be eligible immediately for the 1022
additional benefit. The additional benefit shall be based on the 1023
current retirement allowance and the number of full fiscal years 1024
in retirement and shall be prorated and paid in monthly 1025
installments based on the number of months a retirement allowance 1026
is paid during the fiscal year. 1027
(9) A member who became a member of the system on or after 1028
March 1, 2026, except for a first responder who became a member of 1029
the system on or after March 1, 2026, is not entitled to the 1030
additional annual benefit under this section; however, the 1031
Legislature may provide an additional benefit for a specific year. 1032
SECTION 5. Section 25-11-114, Mississippi Code of 1972, is 1033
amended as follows: 1034
25-11-114. (1) The applicable benefits provided in 1035
subsections (2) and (3) of this section shall be paid to eligible 1036
beneficiaries of any member who became a member of the system 1037
before July 1, 2007, and has completed four (4) or more years of 1038
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membership service, or who became a member of the system on or 1039
after July 1, 2007, and has completed eight (8) or more years of 1040
membership service, and who dies before retirement and who has not 1041
filed a Pre-Retirement Optional Retirement Form as provided in 1042
Section 25-11-111. 1043
(2) (a) The surviving spouse of a member who dies before 1044
retirement shall receive a monthly benefit computed in accordance 1045
with paragraph (d) of this subsection (2) as if the member had 1046
nominated his or her spouse as beneficiary if: 1047
(i) The member completed the requisite minimum 1048
number of years of membership service to qualify for a retirement 1049
allowance at age sixty (60), for any member who became a member of 1050
the system before March 1, 2026, or for any first responder who 1051
became a member of the system on or after March 1, 2026, or at age 1052
sixty-two (62), for any member who became a member of the system 1053
on or after March 1, 2026, except for any first responder who 1054
became a member of the system on or after March 1, 2026; 1055
(ii) The spouse has been married to the member for 1056
not less than one (1) year preceding the death of the member; 1057
(iii) The member has not exercised any other 1058
option. 1059
(b) If, at the time of the member's death, there are no 1060
dependent children, and the surviving spouse, who otherwise would 1061
receive the annuity under this subsection (2), has filed with the 1062
system a signed written waiver of his or her rights to the annuity 1063
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and that waiver was in effect at the time of the member's death, a 1064
lump-sum distribution of the deceased member's accumulated 1065
contributions shall be refunded in accordance with Section 1066
25-11-117. 1067
(c) The spouse annuity shall begin on the first day of 1068
the month following the date of the member's death, but in case of 1069
late filing, retroactive payments will be made for a period of not 1070
more than one (1) year. 1071
(d) The spouse of a member who is eligible to receive a 1072
monthly benefit under paragraph (a) of this subsection (2) shall 1073
receive a benefit for life equal to the higher of the following: 1074
(i) The greater of twenty percent (20%) of the 1075
deceased member's average compensation as defined in Section 1076
25-11-103 at the time of death or Fifty Dollars ($50.00) monthly; 1077
or 1078
(ii) Benefits calculated under Option 2 of Section 1079
25-11-115. The method of calculating the retirement benefits 1080
shall be on the same basis as provided in Section 25-11-111(d), 1081
(e) or (g), as applicable. However, if the member dies before 1082
being qualified for a full, unreduced retirement allowance, then 1083
the benefits shall be reduced by an actuarially determined 1084
percentage or factor based on the lesser of either the number of 1085
years of service credit or the number of years in age required to 1086
qualify for a full, unreduced retirement allowance in Section 1087
25-11-111(d), (e) or (g), as applicable. 1088
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(e) The surviving spouse of a deceased member who 1089
previously received spouse retirement benefits under paragraph 1090
(d)(i) of this subsection from and after July 1, 1992, and whose 1091
benefits were terminated before July 1, 2004, because of 1092
remarriage, may again receive the retirement benefits authorized 1093
under paragraph (d)(i) of this subsection by making application 1094
with the board to reinstate those benefits. Any reinstatement of 1095
the benefits shall be prospective only and shall begin after the 1096
first of the month following the date of the application for 1097
reinstatement, but no earlier than July 1, 2004. From and after 1098
July 1, 2010, any spouse who chose Option 2 from and after July 1, 1099
1992, but before July 1, 2004, where the benefit, although payable 1100
for life, was less than the benefit available under the 1101
calculation in paragraph (d)(i) of this subsection shall have his 1102
or her benefit increased to the amount which provides the greater 1103
benefit. 1104
(3) (a) Subject to the maximum limitation provided in this 1105
paragraph, the member's dependent children each shall receive an 1106
annuity of the greater of ten percent (10%) of the member's 1107
average compensation as defined in Section 25-11-103 at the time 1108
of the death of the member or Fifty Dollars ($50.00) monthly; 1109
however, if there are more than three (3) dependent children, each 1110
dependent child shall receive an equal share of a total annuity 1111
equal to thirty percent (30%) of the member's average 1112
compensation, provided that the total annuity shall not be less 1113
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than One Hundred Fifty Dollars ($150.00) per month for all 1114
children. 1115
(b) A child shall be considered to be a dependent child 1116
until marriage, or the attainment of age nineteen (19), whichever 1117
comes first; however, this age limitation shall be extended beyond 1118
age nineteen (19), but in no event beyond the attainment of age 1119
twenty-three (23), as long as the child is a student regularly 1120
pursuing a full-time course of resident study or training in an 1121
accredited high school, trade school, technical or vocational 1122
institute, junior or community college, college, university or 1123
comparable recognized educational institution duly licensed by a 1124
state. A student child who is receiving a retirement allowance as 1125
of June 30, 2016, whose birthday falls during the school year 1126
(September 1 through June 30) is considered not to reach age 1127
twenty-three (23) until the July 1 following the actual 1128
twenty-third birthday. A full-time course of resident study or 1129
training means a day or evening noncorrespondence course that 1130
includes school attendance at the rate of at least thirty-six (36) 1131
weeks per academic year or other applicable period with a subject 1132
load sufficient, if successfully completed, to attain the 1133
educational or training objective within the period generally 1134
accepted as minimum for completion, by a full-time day student, of 1135
the academic or training program concerned. Any child who is 1136
physically or mentally incompetent, as adjudged by either a 1137
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Mississippi court of competent jurisdiction or by the board, shall 1138
receive benefits for as long as the incompetency exists. 1139
(c) If there are more than three (3) dependent 1140
children, upon a child's ceasing to be a dependent child, his or 1141
her annuity shall terminate and there shall be a redetermination 1142
of the amounts payable to any remaining dependent children. 1143
(d) Annuities payable under this subsection (3) shall 1144
begin the first day of the month following the date of the 1145
member's death or in case of late filing, retroactive payments 1146
will be made for a period of not more than one (1) year. Those 1147
benefits may be paid to a surviving parent or the lawful custodian 1148
of a dependent child for the use and benefit of the child without 1149
the necessity of appointment as guardian. 1150
(4) (a) Death benefits in the line of duty. Regardless of 1151
the number of years of the member's creditable service, the spouse 1152
and/or the dependent children of an active member who is killed or 1153
dies as a direct result of a physical injury sustained from an 1154
accident or a traumatic event caused by external violence or 1155
physical force occurring in the line of performance of duty shall 1156
qualify, on approval of the board, for a retirement allowance on 1157
the first of the month following the date of death, but in the 1158
case of late filing, retroactive payments will be made for a 1159
period of not more than one (1) year. The spouse shall receive a 1160
retirement allowance for life equal to one-half (1/2) of the 1161
average compensation as defined in Section 25-11-103. In addition 1162
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to the retirement allowance for the spouse, or if there is no 1163
surviving spouse, the member's dependent child shall receive a 1164
retirement allowance in the amount of one-fourth (1/4) of the 1165
member's average compensation as defined in Section 25-11-103; 1166
however, if there are two (2) or more dependent children, each 1167
dependent child shall receive an equal share of a total annuity 1168
equal to one-half (1/2) of the member's average compensation. If 1169
there are more than two (2) dependent children, upon a child's 1170
ceasing to be a dependent child, his or her annuity shall 1171
terminate and there shall be a redetermination of the amounts 1172
payable to any remaining dependent children. Those benefits shall 1173
cease to be paid for the support and maintenance of each child 1174
upon the child attaining the age of nineteen (19) years; however, 1175
the spouse shall continue to be eligible for the aforesaid 1176
retirement allowance. Those benefits may be paid to a surviving 1177
parent or lawful custodian of the children for the use and benefit 1178
of the children without the necessity of appointment as guardian. 1179
Any spouse who received spouse retirement benefits under this 1180
paragraph (a) from and after April 4, 1984, and whose benefits 1181
were terminated before July 1, 2004, because of remarriage, may 1182
again receive the retirement benefits authorized under this 1183
paragraph (a) by making application with the board to reinstate 1184
those benefits. Any reinstatement of the benefits shall be 1185
prospective only and shall begin after the first of the month 1186
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following the date of the application for reinstatement, but not 1187
earlier than July 1, 2004. 1188
(b) A child shall be considered to be a dependent child 1189
until marriage, or the attainment of age nineteen (19), whichever 1190
comes first; however, this age limitation shall be extended beyond 1191
age nineteen (19), but in no event beyond the attainment of age 1192
twenty-three (23), as long as the child is a student regularly 1193
pursuing a full-time course of resident study or training in an 1194
accredited high school, trade school, technical or vocational 1195
institute, junior or community college, college, university or 1196
comparable recognized educational institution duly licensed by a 1197
state. A student child who is receiving a retirement allowance as 1198
of June 30, 2016, whose birthday falls during the school year 1199
(September 1 through June 30) is considered not to reach age 1200
twenty-three (23) until the July 1 following the actual 1201
twenty-third birthday. A full-time course of resident study or 1202
training means a day or evening noncorrespondence course that 1203
includes school attendance at the rate of at least thirty-six (36) 1204
weeks per academic year or other applicable period with a subject 1205
load sufficient, if successfully completed, to attain the 1206
educational or training objective within the period generally 1207
accepted as minimum for completion, by a full-time day student, of 1208
the academic or training program concerned. Any child who is 1209
physically or mentally incompetent, as adjudged by either a 1210
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Mississippi court of competent jurisdiction or by the board, shall 1211
receive benefits for as long as the incompetency exists. 1212
(5) If all the annuities provided for in this section 1213
payable on account of the death of a member terminate before there 1214
has been paid an aggregate amount equal to the member's 1215
accumulated contributions standing to the member's credit in the 1216
annuity savings account at the time of the member's death, the 1217
difference between the accumulated contributions and the aggregate 1218
amount of annuity payments shall be paid to the person that the 1219
member has nominated by written designation duly executed and 1220
filed with the board. If there is no designated beneficiary 1221
surviving at termination of benefits, the difference shall be 1222
payable under Section 25-11-117.1(1). 1223
(6) Regardless of the number of years of creditable service, 1224
upon the application of a member or employer, any active member 1225
who becomes disabled as a direct result of a physical injury 1226
sustained from an accident or traumatic event caused by external 1227
violence or physical force occurring in the line of performance of 1228
duty, provided that the medical board or other designated 1229
governmental agency after a medical examination certifies that the 1230
member is mentally or physically incapacitated for the further 1231
performance of duty and the incapacity is likely to be permanent, 1232
may be retired by the board of trustees on the first of the month 1233
following the date of filing the application but in no event shall 1234
the retirement allowance begin before the termination of state 1235
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service. If a member who has been approved for a retirement 1236
allowance under this subsection does not terminate state service 1237
within ninety (90) days after the approval, the retirement 1238
allowance and the application for the allowance shall be void. 1239
The retirement allowance shall equal the allowance on disability 1240
retirement as provided in Section 25-11-113 but shall not be less 1241
than fifty percent (50%) of average compensation. Line of duty 1242
disability benefits under this section shall be administered in 1243
accordance with the provisions of Section 25-11-113(1)(b), (c), 1244
(d), (e) and (f), (3), (4), (5) and (6). 1245
(7) For purposes of determining death or disability benefits 1246
under this section, the following shall apply: 1247
(a) Death or permanent and total disability resulting 1248
from a cardiovascular, pulmonary or musculoskeletal condition that 1249
was not a direct result of a physical injury sustained from an 1250
accident or a traumatic event caused by external violence or 1251
physical force occurring in the performance of duty shall be 1252
deemed a natural death or an ordinary disability. 1253
(b) A mental disability based exclusively on employment 1254
duties occurring on an ongoing basis shall be deemed an ordinary 1255
disability. 1256
(8) If the deceased or disabled member has less than four 1257
(4) years of membership service, the average compensation as 1258
defined in Section 25-11-103 shall be the average of all annual 1259
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earned compensation in state service for the purposes of benefits 1260
provided in this section. 1261
(9) In case of death or total and permanent disability under 1262
subsection (4) or subsection (6) of this section and before the 1263
board shall consider any application for a retirement allowance, 1264
the employer must certify to the board that the member's death or 1265
disability was a direct result of an accident or a traumatic event 1266
occurring during and as a result of the performance of the regular 1267
and assigned duties of the employee and that the death or 1268
disability was not the result of the willful negligence of the 1269
employee. 1270
(10) The application for the retirement allowance must be 1271
filed within one (1) year after death of an active member who is 1272
killed in the line of performance of duty or dies as a direct 1273
result of an accident occurring in the line of performance of duty 1274
or traumatic event; but the board of trustees may consider an 1275
application for disability filed after the one-year period if it 1276
can be factually demonstrated to the satisfaction of the board of 1277
trustees that the disability is due to the accident and that the 1278
filing was not accomplished within the one-year period due to a 1279
delayed manifestation of the disability or to circumstances beyond 1280
the control of the member. However, in case of late filing, 1281
retroactive payments will be made for a period of not more than 1282
one (1) year only. 1283
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(11) (a) Notwithstanding any other section of this article 1284
and in lieu of any payments to a designated beneficiary for a 1285
refund of contributions under Section 25-11-117, the spouse and/or 1286
children shall be eligible for the benefits payable under this 1287
section, and the spouse may elect, for both the spouse and/or 1288
children, to receive benefits in accordance with either 1289
subsections (2) and (3) or subsection (4) of this section; 1290
otherwise, the contributions to the credit of the deceased member 1291
shall be refunded in accordance with Section 25-11-117. 1292
(b) Notwithstanding any other section of this article, 1293
a spouse who is entitled to receive a monthly benefit under either 1294
subsection (2) or (4) of this section and who is also the named 1295
beneficiary for a refund of accumulated contributions in the 1296
member's annuity savings account, may, after the death of the 1297
member, elect to receive a refund of accumulated contributions in 1298
lieu of a monthly allowance, provided that there are no dependent 1299
children entitled to benefits under subsection (3) of this 1300
section. 1301
(12) If the member has previously received benefits from the 1302
system to which he or she was not entitled and has not repaid in 1303
full all amounts payable by him or her to the system, the annuity 1304
amounts otherwise provided by this section shall be withheld and 1305
used to effect repayment until the total of the withholdings 1306
repays in full all amounts payable by him or her to the system. 1307
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SECTION 6. Section 25-11-115, Mississippi Code of 1972, is 1308
amended as follows: 1309
25-11-115. (1) Upon application for superannuation or 1310
disability retirement, any member may elect to receive his or her 1311
benefit in a retirement allowance payable throughout life with no 1312
further payments to anyone at the member's death, except that if 1313
the member's total retirement payments under this article do not 1314
equal the member's total contributions under this article, the 1315
named beneficiary shall receive the difference in cash at the 1316
member's death. Or the member may elect upon retirement, or upon 1317
becoming eligible for retirement, to receive the actuarial 1318
equivalent subject to the provisions of subsection (3) of this 1319
section of his or her retirement allowance in a reduced retirement 1320
allowance payable throughout life with the provision that: 1321
Option 1. If the retired member dies before he or she has 1322
received in annuity payment the value of the member's annuity 1323
savings account as it was at the time of the member's retirement, 1324
the balance shall be paid to the legal representative or to such 1325
person as the member has nominated by written designation duly 1326
acknowledged and filed with the board; 1327
Option 2. Upon the retired member's death, his or her 1328
reduced retirement allowance shall be continued throughout the 1329
life of, and paid to, such person as the member has nominated by 1330
written designation duly acknowledged and filed with the board of 1331
trustees at the time of his or her retirement; 1332
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Option 3. Upon the retired member's death, one-half (1/2) of 1333
his or her reduced retirement allowance shall be continued 1334
throughout the life of, and paid to, such person as the member has 1335
nominated by written designation duly acknowledged and filed with 1336
the board of trustees at the time of his or her retirement, and 1337
the other one-half (1/2) of his or her reduced retirement 1338
allowance to some other designated beneficiary; 1339
Option 4. Upon the retired member's death, three-fourths 1340
(3/4) of his or her reduced retirement allowance, or such other 1341
specified amount, shall be continued throughout the life of, and 1342
paid to, such person as the member has nominated by written 1343
designation duly acknowledged and filed with the board of trustees 1344
at the time of his or her retirement; 1345
Option 4-A. Upon the retired member's death, one-half (1/2) 1346
of his or her reduced retirement allowance, or such other 1347
specified amount, shall be continued throughout the life of, and 1348
paid to, such person as the member has nominated by written 1349
designation duly acknowledged and filed with the board of trustees 1350
at the time of his or her retirement; 1351
Option 4-B. A reduced retirement allowance shall be 1352
continued throughout the life of the retirant, but with the 1353
further guarantee of payments to the named beneficiary or 1354
beneficiaries for a specified number of years certain. If the 1355
retired member or the last designated beneficiary both die before 1356
receiving all guaranteed payments due, the actuarial equivalent of 1357
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the remaining payments shall be paid to the successors of the 1358
retired member under Section 25-11-117.1(1); 1359
Option 6. Any member who became a member of the system 1360
before July 1, 2007, and who has at least twenty-eight (28) years 1361
of creditable service at the time of retirement or who is at least 1362
sixty-three (63) years of age and eligible to retire, may select 1363
the maximum retirement benefit or an optional benefit as provided 1364
in this subsection together with a partial lump-sum distribution. 1365
Any member who became a member of the system on or after July 1, 1366
2007, but before July 1, 2011, and who has at least twenty-eight 1367
(28) years of creditable service at the time of retirement may 1368
select the maximum retirement benefit or any optional benefit as 1369
provided in this subsection together with a partial lump-sum 1370
distribution. Any member who became a member of the system on or 1371
after July 1, 2011, but before March 1, 2026, or any first 1372
responder who became a member of the system on or after March 1, 1373
2026, and who has at least thirty-three (33) years of creditable 1374
service at the time of retirement may select the maximum 1375
retirement benefit or any optional benefit as provided in this 1376
subsection together with a partial lump-sum distribution. Any 1377
member who became a member of the system on or after March 1, 1378
2026, except for a first responder who became a member of the 1379
system on or after March 1, 2026, shall not be eligible for a 1380
partial lump-sum distribution. The amount of the lump-sum 1381
distribution under this option shall be equal to the maximum 1382
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monthly benefit multiplied by twelve (12), twenty-four (24) or 1383
thirty-six (36) as selected by the member. The maximum retirement 1384
benefit shall be actuarially reduced to reflect the amount of the 1385
lump-sum distribution selected and further reduced for any other 1386
optional benefit selected. The annuity and lump-sum distribution 1387
shall be computed to result in no actuarial loss to the system. 1388
The lump-sum distribution shall be made as a single payment 1389
payable at the time the first monthly annuity payment is paid to 1390
the retiree. The amount of the lump-sum distribution shall be 1391
deducted from the member's annuity savings account in computing 1392
what contributions remain at the death of the retiree and/or a 1393
beneficiary. The lump-sum distribution option may be elected only 1394
once by a member upon initial retirement, and may not be elected 1395
by a retiree, by members applying for a disability retirement 1396
annuity, or by survivors. 1397
(2) No change in the option selected shall be permitted 1398
after the member's death or after the member has received his or 1399
her first retirement check except as provided in subsections (3) 1400
and (4) of this section and in Section 25-11-127. Members who are 1401
pursuing a disability retirement allowance and simultaneously or 1402
later elect to begin to receive a service retirement allowance 1403
while continuing to pursue a disability retirement allowance, 1404
shall not be eligible to select Option 6 and that option may not 1405
be selected at a later time if the application for a disability 1406
retirement allowance is voided or denied. However, any retired 1407
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member who is receiving a retirement allowance under Option 2 or 1408
Option 4-A upon July 1, 1992, and whose designated beneficiary 1409
predeceased him or her or whose marriage to a spouse who is his or 1410
her designated beneficiary is terminated by divorce or other 1411
dissolution, upon written notification to the retirement system of 1412
the death of the designated beneficiary or of the termination of 1413
the retired member's marriage to the designated beneficiary, the 1414
retirement allowance payable to the member after receipt of that 1415
notification by the retirement system shall be equal to the 1416
retirement allowance that would have been payable if the member 1417
had not elected the option. In addition, any retired member who 1418
is receiving the maximum retirement allowance for life, a 1419
retirement allowance under Option 1 or who is receiving a 1420
retirement allowance under Option 2 or Option 4-A on July 1, 1992, 1421
may elect to provide survivor benefits under Option 2 or Option 1422
4-A to a spouse who was not previously the member's beneficiary 1423
and whom the member married before July 1, 1992. 1424
(3) Any retired member who is receiving a reduced retirement 1425
allowance under Option 2, Option 4 or Option 4-A whose designated 1426
beneficiary predeceases him or her, or whose marriage to a spouse 1427
who is his or her designated beneficiary is terminated by divorce 1428
or other dissolution, may elect to cancel the reduced retirement 1429
allowance and receive the maximum retirement allowance for life in 1430
an amount equal to the amount that would have been payable if the 1431
member had not elected Option 2, Option 4 or Option 4-A. That 1432
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election must be made in writing to the office of the executive 1433
director of the system on a form prescribed by the board. Any 1434
such election shall be effective the first of the month following 1435
the date the election is received by the system; however, the 1436
election may be applied retroactively for not more than three (3) 1437
months but no earlier than the first of the month following the 1438
date of the death of the beneficiary. 1439
(4) Any retired member who is receiving the maximum 1440
retirement allowance for life, or a retirement allowance under 1441
Option 1, and who marries after his or her retirement may elect to 1442
cancel the maximum retirement allowance and receive a reduced 1443
retirement allowance under Option 2, Option 4 or Option 4-A to 1444
provide continuing lifetime benefits to his or her spouse. That 1445
election must be made in writing to the office of the executive 1446
director of the system on a form prescribed by the board not 1447
earlier than the date of the marriage and not later than one (1) 1448
year from the date of the marriage. Any such election shall be 1449
effective the first of the month following the date the election 1450
is received by the system. 1451
(5) (a) Except as otherwise provided in this subsection, if 1452
the election of an optional benefit is made after the member has 1453
attained the age of sixty-five (65) years, the actuarial 1454
equivalent factor shall be used to compute the reduced retirement 1455
allowance as if the election had been made on his or her 1456
sixty-fifth birthday; however, from and after January 1, 2003, if 1457
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there is an election of Option 6 after the member has attained the 1458
age of sixty-five (65) years, the actuarial equivalent factor 1459
based on the retiree's age at the time of retirement shall be used 1460
to compute the reduced maximum monthly retirement allowance. 1461
However, if a retiree marries or remarries after retirement and 1462
elects either Option 2 or Option 4-A as provided in subsection (2) 1463
or (4) of this section, the actuarial equivalent factor used to 1464
compute the reduced retirement allowance shall be the factor for 1465
the age of the retiree and his or her beneficiary at the time such 1466
election for recalculation of benefits is made. 1467
(b) For members who retire on or after July 1, 2012, 1468
the actuarial equivalent factor used to compute the reduced 1469
retirement allowance at retirement or upon any subsequent 1470
recalculation of the benefit shall be the factor for the age of 1471
the retiree and his or her beneficiary at the time of retirement 1472
or at the time an election for recalculation of benefits is made. 1473
(6) Notwithstanding any provision of Section 25-11-1 et 1474
seq., no payments may be made for a retirement allowance on a 1475
monthly basis for a period of time in excess of that allowed by 1476
federal law. 1477
(7) If a retirant and his or her eligible beneficiary, if 1478
any, both die before they have received in annuity payments a 1479
total amount equal to the accumulated contributions standing to 1480
the retirant's credit in the annuity savings account at the time 1481
of his or her retirement, the difference between the accumulated 1482
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contributions and the total amount of annuities received by them 1483
shall be paid to such persons as the retirant has nominated by 1484
written designation duly executed and filed in the office of the 1485
executive director. If no designated person survives the retirant 1486
and his or her beneficiary, the difference, if any, shall be paid 1487
under Section 25-11-117.1(1). 1488
(8) Any retired member who retired on Option 2(5) or 4-A(5) 1489
before July 1, 1992, who is still receiving a retirement allowance 1490
on July 1, 1994, shall receive an increase in the annual 1491
retirement allowance effective July 1, 1994, equal to the amount 1492
they would have received under Option 2 or Option 4-A without a 1493
reduction for Option 5 based on the ages at retirement of the 1494
retiree and beneficiary and option factors in effect on July 1, 1495
1992. That increase shall be prospective only. 1496
SECTION 7. Section 25-11-117, Mississippi Code of 1972, is 1497
amended as follows: 1498
25-11-117. (1) A member may be paid a refund of the amount 1499
of accumulated contributions to the credit of the member in the 1500
annuity savings account, provided that the member has withdrawn 1501
from state service and has not returned to state service on the 1502
date the refund of the accumulated contributions would be paid. 1503
That refund of the contributions to the credit of the member in 1504
the annuity savings account shall be paid within ninety (90) days 1505
from receipt in the office of the retirement system of the 1506
properly completed form requesting the payment. In the event of 1507
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death before retirement of any member whose spouse and/or children 1508
are not entitled to a retirement allowance, the accumulated 1509
contributions to the credit of the deceased member in the annuity 1510
savings account shall be paid to the designated beneficiary on 1511
file in writing in the office of the executive director of the 1512
board of trustees within ninety (90) days from receipt of a 1513
properly completed form requesting the payment. If there is no 1514
such designated beneficiary on file for the deceased member in the 1515
office of the system, upon the filing of a proper request with the 1516
board, the contributions to the credit of the deceased member in 1517
the annuity savings account shall be refunded under Section 1518
25-11-117.1(1). The payment of the refund shall discharge all 1519
obligations of the retirement system to the member on account of 1520
any creditable service rendered by the member before the receipt 1521
of the refund. By the acceptance of the refund, the member shall 1522
waive and relinquish all accrued rights in the system. 1523
(2) Under the Unemployment Compensation Amendments of 1992 1524
(Public Law 102-318 (UCA)), a member or the spouse of a member who 1525
is an eligible beneficiary entitled to a refund under this section 1526
may elect, on a form prescribed by the board under rules and 1527
regulations established by the board, to have an eligible rollover 1528
distribution of accumulated contributions payable under this 1529
section paid directly to an eligible retirement plan, as defined 1530
under applicable federal law, or an individual retirement account. 1531
If the member or the spouse of a member who is an eligible 1532
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beneficiary makes that election and specifies the eligible 1533
retirement plan or individual retirement account to which the 1534
distribution is to be paid, the distribution will be made in the 1535
form of a direct trustee-to-trustee transfer to the specified 1536
eligible retirement plan. A nonspouse beneficiary may elect to 1537
have an eligible rollover distribution paid in the form of a 1538
direct trustee-to-trustee transfer to an individual retirement 1539
account established to receive the distribution on behalf of the 1540
nonspouse beneficiary. Flexible rollovers under this subsection 1541
shall not be considered assignments under Section 25-11-129. 1542
(3) (a) If any person who has received a refund, reenters 1543
the state service and again becomes a member of the system before 1544
July 1, 2007, the member may repay all or part of the amounts 1545
previously received as a refund, together with regular interest 1546
covering the period from the date of refund to the date of 1547
repayment; however, the amounts that are repaid by the member and 1548
the creditable service related thereto shall not be used in any 1549
benefit calculation or determination until the member has remained 1550
a contributor to the system for a period of at least four (4) 1551
years after the member's reentry into state service. Repayment 1552
for that time shall be made beginning with the most recent service 1553
for which refund has been made. Upon the repayment of all or part 1554
of that refund and interest, the member shall again receive credit 1555
for the period of creditable service for which full repayment has 1556
been made to the system. 1557
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(b) If any person who has received a refund, reenters 1558
the state service and again becomes a member of the system on or 1559
after July 1, 2007, but before March 1, 2026, or if any first 1560
responder who became a member of the system on or after March 1, 1561
2026, has received a refund, reenters the state service and again 1562
becomes a member of the system, the member may repay all or part 1563
of the amounts previously received as a refund, together with 1564
regular interest covering the period from the date of refund to 1565
the date of repayment; however, the amounts that are repaid by the 1566
member and the creditable service related thereto shall not be 1567
used in any benefit calculation or determination until the member 1568
has remained a contributor to the system for a period of at least 1569
eight (8) years after the member's reentry into state service. 1570
Repayment for that time shall be made beginning with the most 1571
recent service for which refund has been made. Upon the repayment 1572
of all or part of that refund and interest, the member shall again 1573
receive credit for the period of creditable service for which full 1574
repayment has been made to the system. 1575
(c) If any person who has received a refund reenters 1576
state service and again becomes a member of the system on or after 1577
March 1, 2026, except for a first responder who became a member of 1578
the system on or after March 1, 2026, the member shall not be 1579
eligible to repay any portion of amounts previously received as a 1580
refund and may not receive creditable service for service rendered 1581
before March 1, 2026. 1582
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(4) (a) In order to provide a source of income to members 1583
who have applied for disability benefits under Section 25-11-113 1584
or 25-11-114, the board may provide, at the employee's election, a 1585
temporary benefit to be paid from the member's accumulated 1586
contributions, if any, without forfeiting the right to pursue 1587
disability benefits, provided that the member has exhausted all 1588
personal and medical leave and has terminated his or her 1589
employment. The board may prescribe rules and regulations for 1590
carrying out the provisions of this subsection (4). 1591
(b) If a member who has elected to receive temporary 1592
benefits under this subsection later applies for a refund of his 1593
or her accumulated contributions, all amounts paid under this 1594
subsection shall be deducted from the accumulated contributions 1595
and the balance will be paid to the member. If a member who has 1596
elected to receive temporary benefits under this subsection is 1597
later approved for a disability retirement allowance, and a 1598
service retirement allowance or survivor benefits are paid on the 1599
account, the board shall adjust the benefits in such a manner that 1600
no more than the actuarial equivalent of the benefits to which the 1601
member or beneficiary was or is entitled shall be paid. 1602
(c) The board may study, develop and propose a 1603
disability benefit structure, including short- and long-term 1604
disability benefits, provided that it is the actuarial equivalent 1605
of the benefits currently provided in Section 25-11-113 or 1606
25-11-114. 1607
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SECTION 8. Section 25-11-123, Mississippi Code of 1972, is 1608
amended as follows: 1609
25-11-123. All of the assets of the system shall be credited 1610
according to the purpose for which they are held to one (1) of 1611
four (4) reserves; namely, the annuity savings account, the 1612
annuity reserve, the employer's accumulation account, and the 1613
expense account; however, any employee who became a member of the 1614
system on or after March 1, 2026, except for a first responder who 1615
became a member of the system on or after March 1, 2026, shall 1616
also have a defined contribution plan administered by the system, 1617
as provided in Section 25-11-147. 1618
(a) Annuity savings account. In the annuity savings 1619
account shall be accumulated the contributions made by members to 1620
provide for their annuities, including interest thereon which 1621
shall be posted monthly. Credits to and charges against the 1622
annuity savings account shall be made as follows: 1623
(1) Beginning July 1, 2010, except as otherwise 1624
provided in Section 25-11-126, the employer shall cause to be 1625
deducted from the salary of each member on each and every payroll 1626
of the employer for each and every payroll period nine percent 1627
(9%) of earned compensation as defined in Section 25-11-103; 1628
however, for any employee who became a member of the system on or 1629
after March 1, 2026, except for a first responder who became a 1630
member of the system on or after March 1, 2026, only four percent 1631
(4%) of such earned compensation shall be deposited into the 1632
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annuity savings account, with the remaining five percent (5%), to 1633
be deposited into the employee's defined contribution account 1634
authorized in Section 25-11-147. Future contributions shall be 1635
fixed biennially by the board on the basis of the liabilities of 1636
the retirement system for the various allowances and benefits as 1637
shown by actuarial valuation; however, any member earning at a 1638
rate less than Sixteen Dollars and Sixty-seven Cents ($16.67) per 1639
month, or Two Hundred Dollars ($200.00) per year, shall contribute 1640
not less than One Dollar ($1.00) per month, or Twelve Dollars 1641
($12.00) per year. 1642
(2) The deductions provided in paragraph (1) of 1643
this subsection shall be made notwithstanding that the minimum 1644
compensation provided by law for any member is reduced by the 1645
deduction. Every member shall be deemed to consent and agree to 1646
the deductions made and provided for in paragraph (1) of this 1647
subsection and shall receipt for his or her full salary or 1648
compensation, and payment of salary or compensation less the 1649
deduction shall be a full and complete discharge and acquittance 1650
of all claims and demands whatsoever for the services rendered by 1651
the person during the period covered by the payment, except as to 1652
the benefits provided under Articles 1 and 3. The board shall 1653
provide by rules for the methods of collection of contributions 1654
from members and the employer. The board shall have full 1655
authority to require the production of evidence necessary to 1656
verify the correctness of amounts contributed. 1657
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(b) Annuity reserve. The annuity reserve shall be the 1658
account representing the actuarial value of all annuities in 1659
force, and to it shall be charged all annuities and all benefits 1660
in lieu of annuities, payable as provided in this article. If a 1661
beneficiary retired on account of disability is restored to active 1662
service with a compensation not less than his or her average final 1663
compensation at the time of his or her last retirement, the 1664
remainder of his or her contributions shall be transferred from 1665
the annuity reserve to the annuity savings account and credited to 1666
his or her individual account therein, and the balance of his or 1667
her annuity reserve shall be transferred to the employer's 1668
accumulation account. 1669
(c) Employer's accumulation account. The employer's 1670
accumulation account shall represent the accumulation of all 1671
reserves for the payment of all retirement allowances and other 1672
benefits payable from contributions made by the employer, and 1673
against this account shall be charged all retirement allowances 1674
and other benefits on account of members. Credits to and charges 1675
against the employer's accumulation account shall be made as 1676
follows: 1677
(1) On account of each member who became a member 1678
of the system before March 1, 2026, and each first responder who 1679
became a member of the system on or after March 1, 2026, there 1680
shall be paid monthly into the employer's accumulation account by 1681
the employers for the preceding fiscal year an amount equal to a 1682
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certain percentage of the total earned compensation, as defined in 1683
Section 25-11-103, of each member. From and after May 9, 2024, 1684
the increase in the employer's contribution rate scheduled to take 1685
effect on July 1, 2024, is rescinded and shall not take effect; 1686
however, on July 1 of each year from 2024 through 2028, the 1687
employer's contribution rate shall be increased by one-half 1688
percent (1/2%). For each member who became a member of the system 1689
on or after March 1, 2026, except for a first responder who became 1690
a member of the system on or after March 1, 2026, and except as 1691
provided in Section 25-11-147, the employer's monthly payment 1692
under this paragraph (1) shall be applied to the accrued liability 1693
contribution fund. 1694
(2) For the public good, any recommendation by the 1695
board to adjust the employer contributions may be accompanied by 1696
at least two (2) assessments from actuaries who are independent 1697
from each other and the retirement plan. The actuaries shall 1698
analyze the economic impact of any such recommendation to the 1699
system and state, including, but not limited to, information 1700
showing the fiscal impact to every agency and arm of the state, 1701
including, but not limited to, state agencies, cities, counties 1702
and school districts. The actuarial assessments, with any such 1703
recommendation to adjust the employer contributions, shall be 1704
submitted to the Lieutenant Governor, Speaker of the House, 1705
Chairman of the Senate Appropriations Committee and Chairman of 1706
the House Appropriations Committee. 1707
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(3) The board shall have the authority to make 1708
recommendations regarding additional funding sources for the 1709
retirement plan, including employer contribution increases, based 1710
on the assets and liabilities of the retirement plan, and the 1711
analyses required by paragraph (2) of this subsection (c). The 1712
Legislature shall have the sole authority to implement any such 1713
recommendations. It is the intent of the Legislature that, in the 1714
2025 Regular Session, a law be enacted to create a new tier for 1715
future members of the system, in furtherance of the system's 1716
continued financial stability and sustainability. 1717
(4) This section shall not be construed to provide 1718
authority to reduce or eliminate any earned benefits to be 1719
provided by the state to persons who, before July 1, 2025, are 1720
drawing a retirement allowance or are members of the system. 1721
(5) On the basis of regular interest and of such 1722
mortality and other tables as are adopted by the board of 1723
trustees, the actuary engaged by the board to make each valuation 1724
required by this article during the period over which the accrued 1725
liability contribution is payable, immediately after making that 1726
valuation, shall determine the uniform and constant percentage of 1727
the earnable compensation of each member which, if contributed by 1728
the employer on the basis of compensation of the member throughout 1729
his or her entire period of membership service, would be 1730
sufficient to provide for the payment of any retirement allowance 1731
payable on his or her account for that service. The percentage 1732
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rate so determined shall be known as the "normal contribution 1733
rate." After the accrued liability contribution has ceased to be 1734
payable, the normal contribution rate shall be the percentage rate 1735
of the salary of all members obtained by deducting from the total 1736
liabilities on account of membership service the amount in the 1737
employer's accumulation account, and dividing the remainder by one 1738
percent (1%) of the present value of the prospective future 1739
salaries of all members as computed on the basis of the mortality 1740
and service tables adopted by the board of trustees and regular 1741
interest. The normal rate of contributions shall be determined by 1742
the actuary after each valuation. 1743
(6) The total amount payable in each year to the 1744
employer's accumulation account shall not be less than the sum of 1745
the percentage rate known as the "normal contribution rate" and 1746
the "accrued liability contribution rate" of the total 1747
compensation earnable by all members during the preceding year, 1748
provided that the payment by the employer shall be sufficient, 1749
when combined with the amounts in the account, to provide the 1750
allowances and other benefits chargeable to this account during 1751
the year then current. 1752
(7) The accrued liability contribution shall be 1753
discontinued as soon as the accumulated balance in the employer's 1754
accumulation account shall equal the present value, computed on 1755
the basis of the normal contribution rate then in force, or the 1756
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prospective normal contributions to be received on account of all 1757
persons who are at that time members. 1758
(8) All allowances and benefits in lieu thereof, 1759
with the exception of those payable on account of members who 1760
receive no prior service credit, payable from contributions of the 1761
employer, shall be paid from the employer's accumulation account. 1762
(9) Upon the retirement of a member, an amount 1763
equal to his or her retirement allowance shall be transferred from 1764
the employer's accumulation account to the annuity reserve. 1765
(10) The employer's accumulation account shall be 1766
credited with any assets authorized by law to be credited to the 1767
account. 1768
(d) Expense account. The expense account shall be the 1769
account to which the expenses of the administration of the system 1770
shall be charged, exclusive of amounts payable as retirement 1771
allowances and as other benefits provided herein. The Legislature 1772
shall make annual appropriations in amounts sufficient to 1773
administer the system, which shall be credited to this account. 1774
There shall be transferred to the State Treasury from this 1775
account, not less than once per month, an amount sufficient for 1776
payment of the estimated expenses of the system for the succeeding 1777
thirty (30) days. Any interest earned on the expense account 1778
shall accrue to the benefit of the system. However, 1779
notwithstanding the provisions of Sections 25-11-15(10) and 1780
25-11-105(f)(v)5, all expenses of the administration of the system 1781
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shall be paid from the interest earnings, provided the interest 1782
earnings are in excess of the actuarial interest assumption as 1783
determined by the board, and provided the present cost of the 1784
administrative expense fee of two percent (2%) of the 1785
contributions reported by the political subdivisions and 1786
instrumentalities shall be reduced to one percent (1%) from and 1787
after July 1, 1983, through June 30, 1984, and shall be eliminated 1788
thereafter. 1789
(e) Collection of contributions. The employer shall 1790
cause to be deducted on each and every payroll of a member for 1791
each and every payroll period, beginning subsequent to January 31, 1792
1953, the contributions payable by the member as provided in 1793
Articles 1 and 3. 1794
The employer shall make deductions from salaries of employees 1795
as provided in Articles 1 and 3 and shall transmit monthly, or at 1796
such time as the board of trustees designates, the amount 1797
specified to be deducted to the Executive Director of the Public 1798
Employees' Retirement System. The executive director, after 1799
making a record of all those receipts, shall deposit such amounts 1800
as provided by law. 1801
(f) (1) The sum of the normal contribution rate and 1802
the accrued liability contribution rate shall be known as the 1803
"employer's contribution rate." 1804
(2) The amount payable by the employer on account 1805
of normal and accrued liability contributions shall be determined 1806
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by applying the employer's contribution rate to the amount of 1807
compensation earned by employees who are members of the system. 1808
Monthly, or at such time as the board of trustees designates, each 1809
department or agency shall compute the amount of the employer's 1810
contribution payable, with respect to the salaries of its 1811
employees who are members of the system, and shall cause that 1812
amount to be paid to the board of trustees from the personal 1813
service allotment of the amount appropriated for the operation of 1814
the department or agency, or from funds otherwise available to the 1815
agency, for the payment of salaries to its employees. 1816
(3) Except as otherwise provided in Section 1817
25-11-106: 1818
(i) Constables shall pay employer and 1819
employee contributions on their net fee income as well as the 1820
employee contributions on all direct treasury or county payroll 1821
income. 1822
(ii) The county shall be responsible for the 1823
employer contribution on all direct treasury or county payroll 1824
income of constables. 1825
(4) Except as otherwise provided in Section 1826
25-11-106.1, chancery and circuit clerks shall be responsible for 1827
both the employer and employee share of contributions on the 1828
proportionate share of net income attributable to fees, as well as 1829
the employee share of net income attributable to direct treasury 1830
or county payroll income, and the employing county shall be 1831
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responsible for the employer contributions on the net income 1832
attributable to direct treasury or county payroll income. 1833
(5) Once each year, under procedures established 1834
by the system, each employer shall submit to the Public Employees' 1835
Retirement System a copy of their report to Social Security of all 1836
employees' earnings. 1837
(6) The board shall provide by rules for the 1838
methods of collection of contributions of employers and members. 1839
The amounts determined due by an agency to the various funds as 1840
specified in Articles 1 and 3 are made obligations of the agency 1841
to the board and shall be paid as provided herein. Failure to 1842
deduct those contributions shall not relieve the employee and 1843
employer from liability thereof. Delinquent employee 1844
contributions and any accrued interest shall be the obligation of 1845
the employee and delinquent employer contributions and any accrued 1846
interest shall be the obligation of the employer. The employer 1847
may, in its discretion, elect to pay any or all of the interest on 1848
delinquent employee contributions. From and after July 1, 1996, 1849
under rules and regulations established by the board, all 1850
employers are authorized and shall transfer all funds due to the 1851
Public Employees' Retirement System electronically and shall 1852
transmit any wage or other reports by computerized reporting 1853
systems. 1854
SECTION 9. Section 25-11-147, Mississippi Code of 1972, is 1855
amended as follows: 1856
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25-11-147. (1) Each person becoming a member of the system 1857
on or after March 1, 2026, except for a first responder who became 1858
a member of the system on or after March 1, 2026, shall have, in 1859
addition to the defined benefit plan under this article, a defined 1860
contribution plan meeting the requirements of Section 401(a) of 1861
the Internal Revenue Code. A portion of the employee's 1862
contributions shall be deposited into the employee's defined 1863
contribution account, as provided in Section 25-11-123, and in 1864
addition, the employer may elect to contribute an amount up to the 1865
maximum pretax amount allowable under federal law for plans under 1866
Section 401(a) of the Internal Revenue Code. Members shall be 1867
vested immediately in the defined contribution plan. 1868
(2) (a) Pursuant to Section 401(a) of the Internal Revenue 1869
Code, the board may establish a defined contribution, qualified 1870
plan under which a portion of the employee's mandatory 1871
contributions shall be deposited and which meets all requirements 1872
under federal and state law. To the extent state law conflicts 1873
with federal law, federal law shall govern the plan document to 1874
maintain the federal tax qualified status. The board, in its 1875
fiduciary capacity, may seek approval from the Internal Revenue 1876
Service. 1877
(b) The administration of the defined contribution plan 1878
shall be under the direction of the system. The defined 1879
contribution plan shall be operated in accordance with the 1880
guidelines established by the Internal Revenue Service for Section 1881
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401(a) plans as reflected in the plan document, as may be modified 1882
from time to time by the board of trustees, and including optional 1883
variable employer contributions and a process for hardship 1884
withdrawals by members. Payroll reductions shall be made, in each 1885
instance, by the appropriate payroll officer. The administrator 1886
of the defined contribution plan may contract with a private 1887
corporation or institution for providing consolidated billing and 1888
other administrative services if deemed necessary by the 1889
administrator. 1890
(c) The board of trustees may assess the employer an 1891
amount, out of the employer's contribution rate under Section 1892
25-11-123, up to two-tenths percent (0.2%) of the participant's 1893
total earned compensation as defined in Section 25-11-103 to 1894
provide for the administrative expenses of operating the defined 1895
contribution plan, including, but not limited to, the services of 1896
auditors, consultants, money managers and third-party 1897
administrators. 1898
(3) Each participating member shall direct the investment of 1899
the individual's accumulated employer and employee contributions 1900
and earnings to one or more investment choices within available 1901
categories of investment provided by the board. The board shall 1902
provide an investment menu of investment options. In establishing 1903
the investment options, the board shall: 1904
(a) Include predetermined investment portfolio options 1905
constructed to reflect different risk profiles that automatically 1906
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ST: PERS; law enforcement officers and
firefighters hired after 3-1-26 may receive
retirement allowance after 25 years of service.
reallocate and rebalance contributions as a participating member 1907
ages; and 1908
(b) Allow a participating member to construct an 1909
investment portfolio using some or all of the investment options. 1910
SECTION 10. This act shall take effect and be in force from 1911
and after March 1, 2026. 1912