PERS; revise Tier 5 service years for retirement eligibility from 35 to 30 years.

H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~ G1/2
26/HR26/R1645
PAGE 1 (DJ\KW)

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

By: Representative Haney

HOUSE BILL NO. 1044

AN ACT TO AMEND SECTION 25-11-103, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DEFINITION OF "AVERAGE COMPENSATION" FOR MEMBERS IN 2
THE NEW TIER TO MEAN THE AVERAGE OF THE FOUR HIGHEST CONSECUTIVE 3
YEARS OF EARNED COMPENSATION, OR OF THE LAST 48 CONSECUTIVE MONTHS 4
OF EARNED COMPENSATION, WHICHEVER IS GREATER; TO BRING FORWARD 5
SECTION 25-11-109, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF 6
AMENDMENT; TO AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 1972, 7
TO PROVIDE THAT MEMBERS IN THE NEW TIER WHO HAVE COMPLETED AT 8
LEAST EIGHT YEARS OF MEMBERSHIP SERVICE SHALL BE ENTITLED TO 9
RECEIVE A RETIREMENT ALLOWANCE UPON WITHDRAWAL FROM SERVICE AT THE 10
AGE OF 60, AND MEMBERS WHO HAVE COMPLETED AT LEAST 30 YEARS OF 11
CREDITABLE SERVICE SHALL BE ENTITLED TO RECEIVE A RETIREMENT 12
ALLOWANCE UPON WITHDRAWAL FROM SERVICE REGARDLESS OF AGE; TO 13
PROVIDE THAT MEMBERS IN THE NEW TIER WHO WITHDRAW FROM SERVICE 14
BEFORE AGE 60 AND HAVE COMPLETED AT LEAST EIGHT YEARS OF 15
MEMBERSHIP SERVICE AND HAVE NOT RECEIVED A REFUND OF THEIR 16
CONTRIBUTIONS SHALL BE ENTITLED TO RECEIVE A RETIREMENT ALLOWANCE 17
UPON ATTAINING THE AGE OF 60; TO PROVIDE THAT THE ANNUAL 18
RETIREMENT ALLOWANCE OF A MEMBER WHO HAS ATTAINED THE AGE OF 60 19
BUT HAS NOT COMPLETED AT LEAST 30 YEARS OF CREDITABLE SERVICE 20
SHALL BE REDUCED BY AN ACTUARIAL EQUIVALENT FACTOR FOR EACH YEAR 21
OF CREDITABLE SERVICE BELOW 30 YEARS OR THE NUMBER OF YEARS IN AGE 22
THAT THE MEMBER IS BELOW AGE 65, WHICHEVER IS LESS; TO BRING 23
FORWARD SECTION 25-11-112, MISSISSIPPI CODE OF 1972, FOR PURPOSES 24
OF AMENDMENT; TO AMEND SECTION 25-11-114, MISSISSIPPI CODE OF 25
1972, TO CONFORM TO THE PROVISIONS OF THIS ACT WITH RESPECT TO 26
RETIREMENT ALLOWANCES FOR DEATH BEFORE RETIREMENT OR DEATH OR 27
DISABILITY IN THE LINE OF DUTY; TO BRING FORWARD SECTIONS 28
25-11-115, 25-11-117 AND 25-11-147, MISSISSIPPI CODE OF 1972, FOR 29
PURPOSES OF POSSIBLE AMENDMENTS; TO AMEND SECTION 25-11-123, 30
MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROCEEDING 31
PROVISIONS; AND FOR RELATED PURPOSES. 32
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 33
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 2 (DJ\KW)

SECTION 1. Section 25-11-103, Mississippi Code of 1972, is 34
amended as follows: 35
25-11-103. (1) The following words and phrases as used in 36
Articles 1 and 3, unless a different meaning is plainly required 37
by the context, have the following meanings: 38
(a) "Accumulated contributions" means the sum of all 39
the amounts deducted from the compensation of a member and 40
credited to his or her individual account in the annuity savings 41
account, together with regular interest as provided in Section 42
25-11-123. 43
(b) "Actuarial cost" means the amount of funds 44
presently required to provide future benefits as determined by the 45
board based on applicable tables and formulas provided by the 46
actuary. 47
(c) "Actuarial equivalent" means a benefit of equal 48
value to the accumulated contributions, annuity or benefit, as the 49
case may be, when computed upon the basis of such mortality tables 50
as adopted by the board of trustees, and regular interest. 51
(d) "Actuarial tables" mean such tables of mortality 52
and rates of interest as adopted by the board in accordance with 53
the recommendation of the actuary. 54
(e) "Agency" means any governmental body employing 55
persons in the state service. 56
(f) "Average compensation" means, for persons who 57
became members of the system before March 1, 2026, the average of 58
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 3 (DJ\KW)

the four (4) highest years of earned compensation reported for an 59
employee in a fiscal or calendar year period, or combination 60
thereof that do not overlap, or the last forty-eight (48) 61
consecutive months of earned compensation reported for an 62
employee. The four (4) years need not be successive or joined 63
years of service. "Average compensation" means, for persons who 64
became members of the system on or after March 1, 2026, the 65
average of the * * * four (4) highest consecutive years of earned 66
compensation reported for an employee in a fiscal or calendar year 67
period, or of the last * * * forty-eight (48) consecutive months 68
of earned compensation reported for an employee, whichever is 69
greater. 70
In computing the average compensation for retirement, 71
disability or survivor benefits, any amount lawfully paid in a 72
lump sum for personal leave or major medical leave shall be 73
included in the calculation to the extent that the amount does not 74
exceed an amount that is equal to thirty (30) days of earned 75
compensation and to the extent that it does not cause the 76
employee's earned compensation to exceed the maximum reportable 77
amount specified in paragraph (k) of this subsection; however, 78
this thirty-day limitation shall not prevent the inclusion in the 79
calculation of leave earned under federal regulations before July 80
1, 1976, and frozen as of that date as referred to in Section 81
25-3-99. In computing the average compensation, no amounts shall 82
be used that are in excess of the amount on which contributions 83
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 4 (DJ\KW)

were required and paid, and no nontaxable amounts paid by the 84
employer for health or life insurance premiums for the employee 85
shall be used. If any member who is or has been granted any 86
increase in annual salary or compensation of more than eight 87
percent (8%) retires within twenty-four (24) months from the date 88
that the increase becomes effective, then the board shall exclude 89
that part of the increase in salary or compensation that exceeds 90
eight percent (8%) in calculating that member's average 91
compensation for retirement purposes. The board may enforce this 92
provision by rule or regulation. However, increases in 93
compensation in excess of eight percent (8%) per year granted 94
within twenty-four (24) months of the date of retirement may be 95
included in the calculation of average compensation if 96
satisfactory proof is presented to the board showing that the 97
increase in compensation was the result of an actual change in the 98
position held or services rendered, or that the compensation 99
increase was authorized by the State Personnel Board or was 100
increased as a result of statutory enactment, and the employer 101
furnishes an affidavit stating that the increase granted within 102
the last twenty-four (24) months was not contingent on a promise 103
or agreement of the employee to retire. Nothing in Section 104
25-3-31 shall affect the calculation of the average compensation 105
of any member for the purposes of this article. The average 106
compensation of any member who retires before July 1, 1992, shall 107
not exceed the annual salary of the Governor. 108
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 5 (DJ\KW)

(g) "Beneficiary" means any person entitled to receive 109
a retirement allowance, an annuity or other benefit as provided by 110
Articles 1 and 3. The term "beneficiary" may also include an 111
organization, estate, trust or entity; however, a beneficiary 112
designated or entitled to receive monthly payments under an 113
optional settlement based on life contingency or under a statutory 114
monthly benefit may only be a natural person. In the event of the 115
death before retirement of any member who became a member of the 116
system before July 1, 2007, and whose spouse and/or children are 117
not entitled to a retirement allowance on the basis that the 118
member has less than four (4) years of membership service credit, 119
or who became a member of the system on or after July 1, 2007, and 120
whose spouse and/or children are not entitled to a retirement 121
allowance on the basis that the member has less than eight (8) 122
years of membership service credit, and/or has not been married 123
for a minimum of one (1) year or the spouse has waived his or her 124
entitlement to a retirement allowance under Section 25-11-114, the 125
lawful spouse of a member at the time of the death of the member 126
shall be the beneficiary of the member unless the member has 127
designated another beneficiary after the date of marriage in 128
writing, and filed that writing in the office of the executive 129
director of the board of trustees. No designation or change of 130
beneficiary shall be made in any other manner. 131
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 6 (DJ\KW)

(h) "Board" means the board of trustees provided in 132
Section 25-11-15 to administer the retirement system created under 133
this article. 134
(i) "Creditable service" means "prior service," 135
"retroactive service" and all lawfully credited unused leave not 136
exceeding the accrual rates and limitations provided in Section 137
25-3-91 et seq., as of the date of withdrawal from service plus 138
"membership service" and other service for which credit is 139
allowable as provided in Section 25-11-109. Except to limit 140
creditable service reported to the system for the purpose of 141
computing an employee's retirement allowance or annuity or 142
benefits provided in this article, nothing in this paragraph shall 143
limit or otherwise restrict the power of the governing authority 144
of a municipality or other political subdivision of the state to 145
adopt such vacation and sick leave policies as it deems necessary. 146
(j) "Child" means either a natural child of the member, 147
a child that has been made a child of the member by applicable 148
court action before the death of the member, or a child under the 149
permanent care of the member at the time of the latter's death, 150
which permanent care status shall be determined by evidence 151
satisfactory to the board. For purposes of this paragraph, a 152
natural child of the member is a child of the member that is 153
conceived before the death of the member. 154
(k) "Earned compensation" means the full amount earned 155
during a fiscal year by an employee not to exceed the employee 156
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 7 (DJ\KW)

compensation limit set pursuant to Section 401(a)(17) of the 157
Internal Revenue Code for the calendar year in which the fiscal 158
year begins and proportionately for less than one (1) year of 159
service. Except as otherwise provided in this paragraph, the 160
value of maintenance furnished to an employee shall not be 161
included in earned compensation. Earned compensation shall not 162
include any amounts paid by the employer for health or life 163
insurance premiums for an employee. Earned compensation shall be 164
limited to the regular periodic compensation paid, exclusive of 165
litigation fees, bond fees, performance-based incentive payments, 166
and other similar extraordinary nonrecurring payments. In 167
addition, any member in a covered position, as defined by Public 168
Employees' Retirement System laws and regulations, who is also 169
employed by another covered agency or political subdivision shall 170
have the earnings of that additional employment reported to the 171
Public Employees' Retirement System regardless of whether the 172
additional employment is sufficient in itself to be a covered 173
position. In addition, computation of earned compensation shall 174
be governed by the following: 175
(i) In the case of constables, the net earnings 176
from their office after deduction of expenses shall apply, except 177
that in no case shall earned compensation be less than the total 178
direct payments made by the state or governmental subdivisions to 179
the official. 180
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 8 (DJ\KW)

(ii) In the case of chancery or circuit clerks, 181
the net earnings from their office after deduction of expenses 182
shall apply as expressed in Section 25-11-123(f)(4). 183
(iii) In the case of members of the State 184
Legislature, all remuneration or amounts paid, except mileage 185
allowance, shall apply. 186
(iv) The amount by which an eligible employee's 187
salary is reduced under a salary reduction agreement authorized 188
under Section 25-17-5 shall be included as earned compensation 189
under this paragraph, provided this inclusion does not conflict 190
with federal law, including federal regulations and federal 191
administrative interpretations under the federal law, pertaining 192
to the Federal Insurance Contributions Act or to Internal Revenue 193
Code Section 125 cafeteria plans. 194
(v) Compensation in addition to an employee's base 195
salary that is paid to the employee under the vacation and sick 196
leave policies of a municipality or other political subdivision of 197
the state that employs him or her that exceeds the maximums 198
authorized by Section 25-3-91 et seq. shall be excluded from the 199
calculation of earned compensation under this article. 200
(vi) The maximum salary applicable for retirement 201
purposes before July 1, 1992, shall be the salary of the Governor. 202
(vii) Nothing in Section 25-3-31 shall affect the 203
determination of the earned compensation of any member for the 204
purposes of this article. 205
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 9 (DJ\KW)

(viii) The value of maintenance furnished to an 206
employee before July 1, 2013, for which the proper amount of 207
employer and employee contributions have been paid, shall be 208
included in earned compensation. From and after July 1, 2013, the 209
value of maintenance furnished to an employee shall be reported as 210
earned compensation only if the proper amount of employer and 211
employee contributions have been paid on the maintenance and the 212
employee was receiving maintenance and having maintenance reported 213
to the system as of June 30, 2013. The value of maintenance when 214
not paid in money shall be fixed by the employing state agency, 215
and, in case of doubt, by the board of trustees as defined in 216
Section 25-11-15. 217
(ix) Except as otherwise provided in this 218
paragraph, the value of any in-kind benefits provided by the 219
employer shall not be included in earned compensation. As used in 220
this subparagraph, "in-kind benefits" shall include, but not be 221
limited to, group life insurance premiums, health or dental 222
insurance premiums, nonpaid major medical and personal leave, 223
employer contributions for social security and retirement, tuition 224
reimbursement or educational funding, day care or transportation 225
benefits. 226
(l) "Employee" means any person legally occupying a 227
position in the state service, and shall include the employees of 228
the retirement system created under this article. 229
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 10 (DJ\KW)

(m) "Employer" means the State of Mississippi or any of 230
its departments, agencies or subdivisions from which any employee 231
receives his or her compensation. 232
(n) "Executive director" means the secretary to the 233
board of trustees, as provided in Section 25-11-15(9), and the 234
administrator of the Public Employees' Retirement System and all 235
systems under the management of the board of trustees. Wherever 236
the term "Executive Secretary of the Public Employees' Retirement 237
System" or "executive secretary" appears in this article or in any 238
other provision of law, it shall be construed to mean the 239
Executive Director of the Public Employees' Retirement System. 240
(o) "Fiscal year" means the period beginning on July 1 241
of any year and ending on June 30 of the next succeeding year. 242
(p) "Medical board" means the board of physicians or 243
any governmental or nongovernmental disability determination 244
service designated by the board of trustees that is qualified to 245
make disability determinations as provided for in Section 246
25-11-119. 247
(q) "Member" means any person included in the 248
membership of the system as provided in Section 25-11-105. For 249
purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 250
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 251
system withdrew from state service and received a refund of the 252
amount of the accumulated contributions to the credit of the 253
member in the annuity savings account before July 1, 2007, and the 254
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 11 (DJ\KW)

person reenters state service and becomes a member of the system 255
again on or after July 1, 2007, and repays all or part of the 256
amount received as a refund and interest in order to receive 257
creditable service for service rendered before July 1, 2007, the 258
member shall be considered to have become a member of the system 259
on or after July 1, 2007, subject to the eight-year membership 260
service requirement, as applicable in those sections. For 261
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 262
25-11-115, if a member of the system withdrew from state service 263
and received a refund of the amount of the accumulated 264
contributions to the credit of the member in the annuity savings 265
account before July 1, 2011, and the person reenters state service 266
and becomes a member of the system again on or after July 1, 2011, 267
and repays all or part of the amount received as a refund and 268
interest in order to receive creditable service for service 269
rendered before July 1, 2011, the member shall be considered to 270
have become a member of the system on or after July 1, 2011. If a 271
member of the system withdrew from state service and received a 272
refund of the amount of the accumulated contributions to the 273
credit of the member in the annuity savings account before March 274
1, 2026, and the person reenters state service and becomes a 275
member of the system again on or after March 1, 2026, the member 276
shall be considered to have become a member of the system on or 277
after March 1, 2026, and may not receive creditable service for 278
service rendered before March 1, 2026. 279
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 12 (DJ\KW)

(r) "Membership service" means service as an employee 280
in a covered position rendered while a contributing member of the 281
retirement system. 282
(s) "Position" means any office or any employment in 283
the state service, or two (2) or more of them, the duties of which 284
call for services to be rendered by one (1) person, including 285
positions jointly employed by federal and state agencies 286
administering federal and state funds. The employer shall 287
determine upon initial employment and during the course of 288
employment of an employee who does not meet the criteria for 289
coverage in the Public Employees' Retirement System based on the 290
position held, whether the employee is or becomes eligible for 291
coverage in the Public Employees' Retirement System based upon any 292
other employment in a covered agency or political subdivision. If 293
or when the employee meets the eligibility criteria for coverage 294
in the other position, then the employer must withhold 295
contributions and report wages from the noncovered position in 296
accordance with the provisions for reporting of earned 297
compensation. Failure to deduct and report those contributions 298
shall not relieve the employee or employer of liability thereof. 299
The board shall adopt such rules and regulations as necessary to 300
implement and enforce this provision. 301
(t) "Prior service" means: 302
(i) For persons who became members of the system 303
before July 1, 2007, service rendered before February 1, 1953, for 304
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 13 (DJ\KW)

which credit is allowable under Sections 25-11-105 and 25-11-109, 305
and which shall allow prior service for any person who is now or 306
becomes a member of the Public Employees' Retirement System and 307
who does contribute to the system for a minimum period of four (4) 308
years. 309
(ii) For persons who became members of the system 310
on or after July 1, 2007, service rendered before February 1, 311
1953, for which credit is allowable under Sections 25-11-105 and 312
25-11-109, and which shall allow prior service for any person who 313
is now or becomes a member of the Public Employees' Retirement 314
System and who does contribute to the system for a minimum period 315
of eight (8) years. 316
(u) "Regular interest" means interest compounded 317
annually at such a rate as determined by the board in accordance 318
with Section 25-11-121. 319
(v) "Retirement allowance" means an annuity for life as 320
provided in this article, payable each year in twelve (12) equal 321
monthly installments beginning as of the date fixed by the board. 322
The retirement allowance shall be calculated in accordance with 323
Section 25-11-111. However, any spouse who received a spouse 324
retirement benefit in accordance with Section 25-11-111(d) before 325
March 31, 1971, and those benefits were terminated because of 326
eligibility for a social security benefit, may again receive his 327
or her spouse retirement benefit from and after making application 328
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 14 (DJ\KW)

with the board of trustees to reinstate the spouse retirement 329
benefit. 330
(w) "Retroactive service" means service rendered after 331
February 1, 1953, for which credit is allowable under Section 332
25-11-105(b) and Section 25-11-105(k). 333
(x) "System" means the Public Employees' Retirement 334
System of Mississippi established and described in Section 335
25-11-101. 336
(y) "State" means the State of Mississippi or any 337
political subdivision thereof or instrumentality of the state. 338
(z) "State service" means all offices and positions of 339
trust or employment in the employ of the state, or any political 340
subdivision or instrumentality of the state, that elect to 341
participate as provided by Section 25-11-105(f), including the 342
position of elected or fee officials of the counties and their 343
deputies and employees performing public services or any 344
department, independent agency, board or commission thereof, and 345
also includes all offices and positions of trust or employment in 346
the employ of joint state and federal agencies administering state 347
and federal funds and service rendered by employees of the public 348
schools. Effective July 1, 1973, all nonprofessional public 349
school employees, such as bus drivers, janitors, maids, 350
maintenance workers and cafeteria employees, shall have the option 351
to become members in accordance with Section 25-11-105(b), and 352
shall be eligible to receive credit for services before July 1, 353
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 15 (DJ\KW)

1973, provided that the contributions and interest are paid by the 354
employee in accordance with that section; in addition, the county 355
or municipal separate school district may pay the employer 356
contribution and pro rata share of interest of the retroactive 357
service from available funds. "State service" shall not include 358
the President of the Mississippi Lottery Corporation and personnel 359
employed by the Mississippi Lottery Corporation. From and after 360
July 1, 1998, retroactive service credit shall be purchased at the 361
actuarial cost in accordance with Section 25-11-105(b). 362
(aa) "Withdrawal from service" or "termination from 363
service" means complete severance of employment in the state 364
service of any member by resignation, dismissal or discharge. 365
(bb) The masculine pronoun, wherever used, includes the 366
feminine pronoun. 367
(2) For purposes of this article, the term "political 368
subdivision" shall have the meaning ascribed to such term in 369
Section 25-11-5 and shall also include public charter schools. 370
SECTION 2. Section 25-11-109, Mississippi Code of 1972, is 371
brought forward as follows: 372
25-11-109. (1) Under such rules and regulations as the 373
board of trustees shall adopt, each person who becomes a member of 374
this retirement system, as provided in Section 25-11-105, on or 375
before July 1, 1953, or who became a member of the system before 376
July 1, 2007, and contributes to the system for a minimum period 377
of four (4) years, or who became a member of the system on or 378
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 16 (DJ\KW)

after July 1, 2007, and contributes to the system for a minimum 379
period of eight (8) years, shall receive credit for all state 380
service rendered before February 1, 1953. To receive that credit, 381
the member shall file a detailed statement of all services as an 382
employee rendered by him in the state service before February 1, 383
1953. For any member who joined the system after July 1, 1953, 384
and before July 1, 2007, any creditable service for which the 385
member is not required to make contributions shall not be credited 386
to the member until the member has contributed to the system for a 387
minimum period of at least four (4) years. For any member who 388
joined the system on or after July 1, 2007, but before March 1, 389
2026, any creditable service for which the member is not required 390
to make contributions shall not be credited to the member until 391
the member has contributed to the system for a minimum period of 392
at least eight (8) years. 393
(2) (a) (i) In the computation of creditable service for 394
service rendered before July 1, 2017, under the provisions of this 395
article, the total months of accumulative service during any 396
fiscal year shall be calculated in accordance with the schedule as 397
follows: ten (10) or more months of creditable service during any 398
fiscal year shall constitute a year of creditable service; seven 399
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 400
year of creditable service; four (4) months to six (6) months 401
inclusive, one-half (1/2) year of creditable service; one (1) 402
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 17 (DJ\KW)

month to three (3) months inclusive, one-quarter (1/4) of a year 403
of creditable service. 404
(ii) In the computation of creditable service 405
rendered on or after July 1, 2017, under the provisions of this 406
article, service credit shall be awarded in monthly increments in 407
a manner prescribed by regulations of the board. 408
(b) In no case shall credit be allowed for any period 409
of absence without compensation except for disability while in 410
receipt of a disability retirement allowance, nor shall less than 411
fifteen (15) days of service in any month, or service less than 412
the equivalent of one-half (1/2) of the normal working load for 413
the position and less than one-half (1/2) of the normal 414
compensation for the position in any month, constitute a month of 415
creditable service, nor shall more than one (1) year of service be 416
creditable for all services rendered in any one (1) fiscal year; 417
however, for a school employee, substantial completion of the 418
legal school term when and where the service was rendered shall 419
constitute a year of service credit. Any state or local elected 420
official shall be deemed a full-time employee for the purpose of 421
creditable service. However, an appointed or elected official 422
compensated on a per diem basis only shall not be allowed 423
creditable service for terms of office. 424
(c) In the computation of any retirement allowance or 425
any annuity or benefits provided in this article, any fractional 426
period of service of less than one (1) year shall be taken into 427
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 18 (DJ\KW)

account and a proportionate amount of such retirement allowance, 428
annuity or benefit shall be granted for any such fractional period 429
of service. 430
(d) (i) In the computation of unused leave for 431
creditable service authorized in Section 25-11-103, the following 432
shall govern for members who retire before July 1, 2017: 433
twenty-one (21) days of unused leave shall constitute one (1) 434
month of creditable service and in no case shall credit be allowed 435
for any period of unused leave of less than fifteen (15) days. 436
The number of months of unused leave shall determine the number of 437
quarters or years of creditable service in accordance with the 438
above schedule for membership and prior service. 439
(ii) In the computation of unused leave for 440
creditable service authorized in Section 25-11-103, the following 441
shall govern for members who retire on or after July 1, 2017: 442
creditable service for unused leave shall be calculated in monthly 443
increments in which one (1) month of service credit shall be 444
awarded for each twenty-one (21) days of unused leave, except that 445
the first fifteen (15) to fifty-seven (57) days of leave shall 446
constitute three (3) months of service for those who became a 447
member of the system before July 1, 2017. 448
(iii) In order for the member to receive 449
creditable service for the number of days of unused leave under 450
this paragraph, the system must receive certification from the 451
governing authority. 452
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 19 (DJ\KW)

(iv) For anyone who becomes a member of the system 453
on or after March 1, 2026, no service credit shall be awarded for 454
unused leave. 455
(e) For the purposes of this subsection, members of the 456
system who retire on or after July 1, 2010, shall receive credit 457
for one-half (1/2) day of leave for each full year of membership 458
service accrued after June 30, 2010. The amount of leave received 459
by a member under this paragraph shall be added to the lawfully 460
credited unused leave for which creditable service is provided 461
under Section 25-11-103(i). 462
(f) For the purpose of this subsection, for members of 463
the system who are elected officers and who retire on or after 464
July 1, 1987, the following shall govern: 465
(i) For service before July 1, 1984, the members 466
shall receive credit for leave (combined personal and major 467
medical) for service as an elected official before that date at 468
the rate of thirty (30) days per year. 469
(ii) For service on and after July 1, 1984, the 470
member shall receive credit for personal and major medical leave 471
beginning July 1, 1984, at the rates authorized in Sections 472
25-3-93 and 25-3-95, computed as a full-time employee. 473
(iii) If a member is employed in a covered 474
nonelected position and a covered elected position simultaneously, 475
that member may not receive service credit for accumulated unused 476
leave for both positions at retirement for the period during which 477
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 20 (DJ\KW)

the member was dually employed. During the period during which 478
the member is dually employed, the member shall only receive 479
credit for leave as provided for in this paragraph for an elected 480
official. 481
(iv) For any elected official who becomes a member 482
of the system on or after March 1, 2026, no service credit shall 483
be awarded for leave. 484
(3) Subject to the above restrictions and to such other 485
rules and regulations as the board may adopt, the board shall 486
verify, as soon as practicable after the filing of such statements 487
of service, the services therein claimed. 488
(4) Upon verification of the statement of prior service, the 489
board shall issue a prior service certificate certifying to each 490
member the length of prior service for which credit shall have 491
been allowed on the basis of his statement of service. So long as 492
membership continues, a prior service certificate shall be final 493
and conclusive for retirement purposes as to such service, 494
provided that any member may within five (5) years from the date 495
of issuance or modification of such certificate request the board 496
of trustees to modify or correct his prior service certificate. 497
Any modification or correction authorized shall only apply 498
prospectively. 499
When membership ceases, such prior service certificates shall 500
become void. Should the employee again become a member, he shall 501
enter the system as an employee not entitled to prior service 502
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 21 (DJ\KW)

credit except as provided in Sections 25-11-105(I), 25-11-113 and 503
25-11-117. 504
(5) Creditable service at retirement, on which the 505
retirement allowance of a member shall be based, shall consist of 506
the membership service rendered by him since he last became a 507
member, and also, if he has a prior service certificate that is in 508
full force and effect, the amount of the service certified on his 509
prior service certificate. 510
(6) Any member who served on active duty in the Armed Forces 511
of the United States, who served in the Commissioned Corps of the 512
United States Public Health Service before 1972 or who served in 513
maritime service during periods of hostility in World War II, 514
shall be entitled to creditable service at no cost for his service 515
on active duty in the Armed Forces, in the Commissioned Corps of 516
the United States Public Health Service before 1972 or in such 517
maritime service, provided he entered state service after his 518
discharge from the Armed Forces or entered state service after he 519
completed such maritime service. The maximum period for such 520
creditable service for all military service as defined in this 521
subsection (6) shall not exceed four (4) years unless positive 522
proof can be furnished by such person that he was retained in the 523
Armed Forces during World War II or in maritime service during 524
World War II by causes beyond his control and without opportunity 525
of discharge. The member shall furnish proof satisfactory to the 526
board of trustees of certification of military service or maritime 527
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 22 (DJ\KW)

service records showing dates of entrance into active duty service 528
and the date of discharge. From and after July 1, 1993, no 529
creditable service shall be granted for any military service or 530
maritime service to a member who qualifies for a retirement 531
allowance in another public retirement system administered by the 532
Board of Trustees of the Public Employees' Retirement System 533
based, in whole or in part, on such military or maritime service. 534
In no case shall the member receive creditable service if the 535
member received a dishonorable discharge from the Armed Forces of 536
the United States. 537
(7) (a) Any member of the Public Employees' Retirement 538
System whose membership service is interrupted as a result of 539
qualified military service within the meaning of Section 414(u)(5) 540
of the Internal Revenue Code, and who has received the maximum 541
service credit available under subsection (6) of this section, 542
shall receive creditable service for the period of qualified 543
military service that does not qualify as creditable service under 544
subsection (6) of this section upon reentering membership service 545
in an amount not to exceed five (5) years if: 546
(i) The member pays the contributions he would 547
have made to the retirement system if he had remained in 548
membership service for the period of qualified military service 549
based upon his salary at the time his membership service was 550
interrupted; 551
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 23 (DJ\KW)

(ii) The member returns to membership service 552
within ninety (90) days of the end of his qualified military 553
service; and 554
(iii) The employer at the time the member's 555
service was interrupted and to which employment the member returns 556
pays the contributions it would have made into the retirement 557
system for such period based on the member's salary at the time 558
the service was interrupted. 559
(b) The payments required to be made in paragraph 560
(a)(i) of this subsection may be made over a period beginning with 561
the date of return to membership service and not exceeding three 562
(3) times the member's qualified military service; however, in no 563
event shall such period exceed five (5) years. 564
(c) The member shall furnish proof satisfactory to the 565
board of trustees of certification of military service showing 566
dates of entrance into qualified service and the date of discharge 567
as well as proof that the member has returned to active employment 568
within the time specified. 569
(8) Any member of the Public Employees' Retirement System 570
who became a member of the system before July 1, 2007, and who has 571
at least four (4) years of membership service credit, or who 572
became a member of the system on or after July 1, 2007, but before 573
March 1, 2026, and who has at least eight (8) years of membership 574
service credit, shall be entitled to receive a maximum of five (5) 575
years' creditable service for service rendered in another state as 576
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 24 (DJ\KW)

a public employee of such other state, or a political subdivision, 577
public education system or other governmental instrumentality 578
thereof, or service rendered as a teacher in American overseas 579
dependent schools conducted by the Armed Forces of the United 580
States for children of citizens of the United States residing in 581
areas outside the continental United States, provided that: 582
(a) The member shall furnish proof satisfactory to the 583
board of trustees of certification of such services from the 584
state, public education system, political subdivision or 585
retirement system of the state where the services were performed 586
or the governing entity of the American overseas dependent school 587
where the services were performed; and 588
(b) The member is not receiving or will not be entitled 589
to receive from the public retirement system of the other state or 590
from any other retirement plan, including optional retirement 591
plans, sponsored by the employer, a retirement allowance including 592
such services; and 593
(c) The member shall pay to the retirement system on 594
the date he or she is eligible for credit for such out-of-state 595
service or at any time thereafter before the date of retirement 596
the actuarial cost as determined by the actuary for each year of 597
out-of-state creditable service. The provisions of this 598
subsection are subject to the limitations of Section 415 of the 599
Internal Revenue Code and regulations promulgated under that 600
section. 601
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 25 (DJ\KW)

(9) Any member of the Public Employees' Retirement System 602
who became a member of the system before July 1, 2007, and has at 603
least four (4) years of membership service credit, or who became a 604
member of the system on or after July 1, 2007, but before March 1, 605
2026, and has at least eight (8) years of membership service 606
credit, and who receives, or has received, professional leave 607
without compensation for professional purposes directly related to 608
the employment in state service shall receive creditable service 609
for the period of professional leave without compensation 610
provided: 611
(a) The professional leave is performed with a public 612
institution or public agency of this state, or another state or 613
federal agency; 614
(b) The employer approves the professional leave 615
showing the reason for granting the leave and makes a 616
determination that the professional leave will benefit the 617
employee and employer; 618
(c) Such professional leave shall not exceed two (2) 619
years during any ten-year period of state service; 620
(d) The employee shall serve the employer on a 621
full-time basis for a period of time equivalent to the 622
professional leave period granted immediately following the 623
termination of the leave period; 624
(e) The contributing member shall pay to the retirement 625
system the actuarial cost as determined by the actuary for each 626
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 26 (DJ\KW)

year of professional leave. The provisions of this subsection are 627
subject to the regulations of the Internal Revenue Code 628
limitations; 629
(f) Such other rules and regulations consistent 630
herewith as the board may adopt and in case of question, the board 631
shall have final power to decide the questions. 632
Any actively contributing member participating in the School 633
Administrator Sabbatical Program established in Section 37-9-77 634
shall qualify for continued participation under this subsection 635
(9). 636
(10) Any member of the Public Employees' Retirement System 637
who became a member of the system before July 1, 2007, and has at 638
least four (4) years of credited membership service, or who became 639
a member of the system on or after July 1, 2007, but before March 640
1, 2026, and has at least eight (8) years of credited membership 641
service, shall be entitled to receive a maximum of ten (10) years 642
creditable service for: 643
(a) Any service rendered as an employee of any 644
political subdivision of this state, or any instrumentality 645
thereof, that does not participate in the Public Employees' 646
Retirement System; or 647
(b) Any service rendered as an employee of any 648
political subdivision of this state, or any instrumentality 649
thereof, that participates in the Public Employees' Retirement 650
System but did not elect retroactive coverage; or 651
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 27 (DJ\KW)

(c) Any service rendered as an employee of any 652
political subdivision of this state, or any instrumentality 653
thereof, for which coverage of the employee's position was or is 654
excluded; provided that the member pays into the retirement system 655
the actuarial cost as determined by the actuary for each year, or 656
portion thereof, of such service. After a member has made full 657
payment to the retirement system for all or any part of such 658
service, the member shall receive creditable service for the 659
period of such service for which full payment has been made to the 660
retirement system. 661
SECTION 3. Section 25-11-111, Mississippi Code of 1972, is 662
amended as follows: 663
25-11-111. (a) (1) Any member who became a member of the 664
system before July 1, 2007, upon withdrawal from service upon or 665
after attainment of the age of sixty (60) years who has completed 666
at least four (4) years of membership service, or any member who 667
became a member of the system before July 1, 2011, upon withdrawal 668
from service regardless of age who has completed at least 669
twenty-five (25) years of creditable service, shall be entitled to 670
receive a retirement allowance, which shall begin on the first of 671
the month following the date the member's application for the 672
allowance is received by the board, but in no event before 673
withdrawal from service. 674
(2) Any member who became a member of the system on or 675
after July 1, 2007, * * * upon withdrawal from service upon or 676
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 28 (DJ\KW)

after attainment of the age of sixty (60) years who has completed 677
at least eight (8) years of membership service, or any member who 678
became a member of the system on or after July 1, 2011, * * * upon 679
withdrawal from service regardless of age who has completed at 680
least thirty (30) years of creditable service, shall be entitled 681
to receive a retirement allowance, which shall begin on the first 682
of the month following the date the member's application for the 683
allowance is received by the board, but in no event before 684
withdrawal from service. 685
* * * 686
(b) (1) Any member who became a member of the system before 687
July 1, 2007, whose withdrawal from service occurs before 688
attaining the age of sixty (60) years who has completed four (4) 689
or more years of membership service and has not received a refund 690
of his accumulated contributions, shall be entitled to receive a 691
retirement allowance, beginning upon his attaining the age of 692
sixty (60) years, of the amount earned and accrued at the date of 693
withdrawal from service. The retirement allowance shall begin on 694
the first of the month following the date the member's application 695
for the allowance is received by the board, but in no event before 696
withdrawal from service. 697
(2) Any member who became a member of the system on or 698
after July 1, 2007, * * * whose withdrawal from service occurs 699
before attaining the age of sixty (60) years who has completed 700
eight (8) or more years of membership service and has not received 701
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 29 (DJ\KW)

a refund of his accumulated contributions, shall be entitled to 702
receive a retirement allowance, beginning upon his attaining the 703
age of sixty (60) years, of the amount earned and accrued at the 704
date of withdrawal from service. The retirement allowance shall 705
begin on the first of the month following the date the member's 706
application for the allowance is received by the board, but in no 707
event before withdrawal from service. 708
* * * 709
(c) Any member in service who has qualified for retirement 710
benefits may select any optional method of settlement of 711
retirement benefits by notifying the Executive Director of the 712
Board of Trustees of the Public Employees' Retirement System in 713
writing, on a form prescribed by the board, of the option he has 714
selected and by naming the beneficiary of the option and 715
furnishing necessary proof of age. The option, once selected, may 716
be changed at any time before actual retirement or death, but upon 717
the death or retirement of the member, the optional settlement 718
shall be placed in effect upon proper notification to the 719
executive director. 720
(d) Any member who became a member of the system before July 721
1, 2011, shall be entitled to an annual retirement allowance which 722
shall consist of: 723
(1) A member's annuity, which shall be the actuarial 724
equivalent of the accumulated contributions of the member at the 725
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 30 (DJ\KW)

time of retirement computed according to the actuarial table in 726
use by the system; and 727
(2) An employer's annuity, which, together with the 728
member's annuity provided above, shall be equal to two percent 729
(2%) of the average compensation for each year of service up to 730
and including twenty-five (25) years of creditable service, and 731
two and one-half percent (2-1/2%) of the average compensation for 732
each year of service exceeding twenty-five (25) years of 733
creditable service. 734
(3) Any retired member or beneficiary thereof who was 735
eligible to receive a retirement allowance before July 1, 1991, 736
and who is still receiving a retirement allowance on July 1, 1992, 737
shall receive an increase in the annual retirement allowance of 738
the retired member equal to one-eighth of one percent (1/8 of 1%) 739
of the average compensation for each year of state service in 740
excess of twenty-five (25) years of membership service up to and 741
including thirty (30) years. The maximum increase shall be 742
five-eighths of one percent (5/8 of 1%). In no case shall a 743
member who has been retired before July 1, 1987, receive less than 744
Ten Dollars ($10.00) per month for each year of creditable service 745
and proportionately for each quarter year thereof. Persons 746
retired on or after July 1, 1987, shall receive at least Ten 747
Dollars ($10.00) per month for each year of service and 748
proportionately for each quarter year thereof reduced for the 749
option selected. However, such Ten Dollars ($10.00) minimum per 750
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 31 (DJ\KW)

month for each year of creditable service shall not apply to a 751
retirement allowance computed under Section 25-11-114 based on a 752
percentage of the member's average compensation. 753
(e) Any member who became a member of the system on or after 754
July 1, 2011, but before March 1, 2026, shall be entitled to an 755
annual retirement allowance which shall consist of: 756
(1) A member's annuity, which shall be the actuarial 757
equivalent of the accumulated contributions of the member at the 758
time of retirement computed according to the actuarial table in 759
use by the system; and 760
(2) An employer's annuity, which, together with the 761
member's annuity provided above, shall be equal to two percent 762
(2%) of the average compensation for each year of service up to 763
and including thirty (30) years of creditable service, and two and 764
one-half percent (2-1/2%) of average compensation for each year of 765
service exceeding thirty (30) years of creditable service. 766
(f) Any member who became a member of the system on or after 767
July 1, 2011, but before March 1, 2026, upon withdrawal from 768
service upon or after attaining the age of sixty (60) years who 769
has completed at least eight (8) years of membership service, or 770
any such member upon withdrawal from service regardless of age who 771
has completed at least thirty (30) years of creditable service, 772
shall be entitled to receive a retirement allowance computed in 773
accordance with the formula set forth in subsection (e) of this 774
section. In the case of the retirement of any member who has 775
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 32 (DJ\KW)

attained age sixty (60) but who has not completed at least thirty 776
(30) years of creditable service, the retirement allowance shall 777
be computed in accordance with the formula set forth in subsection 778
(e) of this section except that the total annual retirement 779
allowance shall be reduced by an actuarial equivalent factor for 780
each year of creditable service below thirty (30) years or the 781
number of years in age that the member is below age sixty-five 782
(65), whichever is less. 783
(g) Any member who became a member of the system on or after 784
March 1, 2026, upon withdrawal from service upon or after 785
attainment of the age of * * * sixty (60) years who has completed 786
at least eight (8) years of membership service, * * * or upon 787
withdrawal from service regardless of age who has completed at 788
least * * * thirty (30) years of creditable service, shall be 789
entitled to an annual retirement allowance which shall consist of 790
a member's annuity, which annuity shall be equal to one percent 791
(1%) of the average compensation for each year of creditable 792
service. In the case of the retirement of any member who has 793
attained the age of * * * sixty (60) but has not completed at 794
least thirty (30) years of creditable service, the total annual 795
retirement allowance specified in this subsection (g) shall be 796
reduced by an actuarial equivalent factor for each year of 797
creditable service below thirty (30) years or the number of years 798
in age that the member is below age sixty-five (65), whichever is 799
less. 800
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 33 (DJ\KW)

(h) No member, except members excluded by the Age 801
Discrimination in Employment Act Amendments of 1986 (Public Law 802
99-592), under either Article 1 or Article 3 in state service 803
shall be required to retire because of age. 804
(i) No payment on account of any benefit granted under the 805
provisions of this section shall become effective or begin to 806
accrue until January 1, 1953. 807
(j) (1) A retiree or beneficiary may, on a form prescribed 808
by and filed with the retirement system, irrevocably waive all or 809
a portion of any benefits from the retirement system to which the 810
retiree or beneficiary is entitled. The waiver shall be binding 811
on the heirs and assigns of any retiree or beneficiary and the 812
same must agree to forever hold harmless the Public Employees' 813
Retirement System of Mississippi from any claim to the waived 814
retirement benefits. 815
(2) Any waiver under this subsection shall apply only 816
to the person executing the waiver. A beneficiary shall be 817
entitled to benefits according to the option selected by the 818
member at the time of retirement. However, a beneficiary may, at 819
the option of the beneficiary, execute a waiver of benefits under 820
this subsection. 821
(3) The retirement system shall retain in the annuity 822
reserve account amounts that are not used to pay benefits because 823
of a waiver executed under this subsection. 824
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 34 (DJ\KW)

(4) The board of trustees may provide rules and 825
regulations for the administration of waivers under this 826
subsection. 827
SECTION 4. Section 25-11-112, Mississippi Code of 1972, is 828
brought forward as follows: 829
25-11-112. (1) Any member who became a member of the system 830
before March 1, 2026, and is receiving a retirement allowance for 831
service or disability retirement, or any beneficiary thereof, who 832
has received a monthly benefit for at least one (1) full fiscal 833
year, shall be eligible to receive an additional benefit, on 834
December 1 or July 1 of the year as provided in subsection (3) of 835
this section, equal to an amount calculated under paragraph (a) or 836
(b) below: 837
(a) For any member who became a member of the system 838
before July 1, 2011, the sum of: 839
(i) An amount equal to three percent (3%) of the 840
annual retirement allowance multiplied by the number of full 841
fiscal years in retirement before the end of the fiscal year in 842
which the member reaches age fifty-five (55), plus 843
(ii) An additional amount equal to three percent 844
(3%) compounded by the number of full fiscal years in retirement 845
beginning with the fiscal year in which the member reaches age 846
fifty-five (55), multiplied by the amount of the annual retirement 847
allowance. 848
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 35 (DJ\KW)

(b) For any member who became a member of the system on 849
or after July 1, 2011, but before March 1, 2026, the sum of: 850
(i) An amount equal to three percent (3%) of the 851
annual retirement allowance multiplied by the number of full 852
fiscal years in retirement before the end of the fiscal year in 853
which the member reaches age sixty (60), plus 854
(ii) An additional amount equal to three percent 855
(3%) compounded by the number of full fiscal years in retirement 856
beginning with the fiscal year in which the member reaches age 857
sixty (60), multiplied by the amount of the annual retirement 858
allowance. 859
(2) The calculation of the beneficiary's additional benefit 860
under subsection (1)(a) or (b) of this section shall be based on 861
the member's age and full fiscal years in retirement as if the 862
member had lived. 863
(3) (a) The additional benefit provided for under this 864
section shall be paid in one (1) payment in December of each year 865
to those persons who are receiving a retirement allowance on 866
December 1 of that year, unless an election is made under this 867
subsection. However, if a retiree who is receiving a retirement 868
allowance that will terminate upon the retiree's death is 869
receiving the additional benefit in one (1) payment and dies on or 870
after July 1 but before December 1, the beneficiary designated on 871
the retirement application, if any, shall receive in a single 872
payment a fractional part of the additional benefit based on the 873
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 36 (DJ\KW)

number of months in which a retirement allowance was received 874
during the fiscal year. Likewise, if a retiree is receiving a 875
retirement allowance that will terminate upon his or her death in 876
two (2) to six (6) monthly installments, any remaining payments of 877
the additional benefit will be paid in a lump sum to the 878
beneficiary designated on the application, or if none, pursuant to 879
Section 25-11-117.1(1). Any similar remaining payments of 880
additional benefits payable under this section to a deceased 881
beneficiary who was receiving a monthly benefit shall be payable 882
in accordance with the provisions of Section 25-11-117.1(2). If 883
the additional monthly benefit is being received in one (1) 884
payment, the additional benefit shall also be prorated based on 885
the number of months in which a retirement allowance was received 886
during the fiscal year when (i) the monthly benefit payable to a 887
beneficiary terminates due to the expiration of an option, 888
remarriage or cessation of dependent status or due to the 889
retiree's return to covered employment, and (ii) the monthly 890
benefit terminates on or after July 1 and before December 1. The 891
board may, in its discretion, allow a retired member or a 892
beneficiary thereof who is receiving the additional annual payment 893
in the manner provided for in this paragraph to change the manner 894
in which the additional annual payment is received to that 895
provided for in paragraph (b) of this subsection if the retired 896
member or beneficiary submits satisfactory documentation that the 897
continued receipt of the additional annual payment as provided for 898
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 37 (DJ\KW)

in this paragraph will cause a financial hardship to the retired 899
member or beneficiary. 900
(b) Retired members or beneficiaries thereof who on 901
July 1, 1999, or July 1 of any fiscal year thereafter, are 902
receiving a retirement allowance, may elect by an irrevocable 903
agreement in writing filed in the Office of the Public Employees' 904
Retirement System no less than thirty (30) days before July 1 of 905
the appropriate year, to begin receiving the additional benefit 906
provided for under this section in twelve (12) equal monthly 907
installments beginning July 1, 1999, or July 1 of any fiscal year 908
thereafter. This irrevocable agreement shall be binding on the 909
member and subsequent beneficiaries. Payment of those monthly 910
installments shall not extend beyond the month in which a 911
retirement allowance is due and payable. The board may, in its 912
discretion, allow a retired member or a beneficiary thereof who is 913
receiving the additional annual payment in the manner provided for 914
in this paragraph to change the manner in which the additional 915
annual payment is received to that provided for in paragraph (a) 916
of this subsection if the retired member or beneficiary submits 917
satisfactory documentation that the continued receipt of the 918
additional annual payment as provided for in this paragraph will 919
cause a financial hardship to the retired member or beneficiary. 920
(4) The additional payment or payments provided for under 921
this section are for the fiscal year in which they are paid. 922
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 38 (DJ\KW)

(5) (a) The amount provided for under subsection (1) 923
(a)(ii) of this section is calculated using the following formula: 924
[(1.03)n - 1] x [annual retirement allowance], 925
where n is the number of full fiscal years in retirement beginning 926
with the fiscal year in which the member reaches age fifty-five 927
(55). 928
(b) The amount provided for under subsection (1)(b)(ii) 929
of this section is calculated using the following formula: 930
[(1.03)n - 1] x [annual retirement allowance], 931
where n is the number of full fiscal years in retirement beginning 932
with the fiscal year in which the member reaches age sixty (60). 933
(6) Any retired member or beneficiary thereof who has 934
previously elected to receive the additional annual payment in 935
monthly installments may elect, upon application on a form 936
prescribed by the board of trustees, to have that payment made in 937
one (1) additional payment each year. This written election must 938
be filed in the Office of the Public Employees' Retirement System 939
before June 1, 2000, and shall be effective for the fiscal year 940
beginning July 1, 2000. 941
(7) In the event of death of a retired member or a 942
beneficiary thereof who is receiving the additional annual payment 943
in two (2) to six (6) monthly installments pursuant to an election 944
made before July 1, 1999, and who would otherwise be eligible to 945
receive the additional benefit provided for under this section in 946
one (1) payment in December of the current fiscal year, any 947
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 39 (DJ\KW)

remaining amounts shall be paid in a lump sum to the designated 948
beneficiary. 949
(8) When a member retires after July 1 and has previously 950
received a retirement allowance for one or more full fiscal years, 951
the retired member shall be eligible immediately for the 952
additional benefit. The additional benefit shall be based on the 953
current retirement allowance and the number of full fiscal years 954
in retirement and shall be prorated and paid in monthly 955
installments based on the number of months a retirement allowance 956
is paid during the fiscal year. 957
(9) A member who became a member of the system on or after 958
March 1, 2026, is not entitled to the additional annual benefit 959
under this section; however, the Legislature may provide an 960
additional benefit for a specific year. 961
SECTION 5. Section 25-11-114, Mississippi Code of 1972, is 962
amended as follows: 963
25-11-114. (1) The applicable benefits provided in 964
subsections (2) and (3) of this section shall be paid to eligible 965
beneficiaries of any member who became a member of the system 966
before July 1, 2007, and has completed four (4) or more years of 967
membership service, or who became a member of the system on or 968
after July 1, 2007, and has completed eight (8) or more years of 969
membership service, and who dies before retirement and who has not 970
filed a Pre-Retirement Optional Retirement Form as provided in 971
Section 25-11-111. 972
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 40 (DJ\KW)

(2) (a) The surviving spouse of a member who dies before 973
retirement shall receive a monthly benefit computed in accordance 974
with paragraph (d) of this subsection (2) as if the member had 975
nominated his spouse as beneficiary if: 976
(i) The member completed the requisite minimum 977
number of years of membership service to qualify for a retirement 978
allowance at age sixty (60) * * *; 979
(ii) The spouse has been married to the member for 980
not less than one (1) year preceding the death of the member; 981
(iii) The member has not exercised any other 982
option. 983
(b) If, at the time of the member's death, there are no 984
dependent children, and the surviving spouse, who otherwise would 985
receive the annuity under this subsection (2), has filed with the 986
system a signed written waiver of his or her rights to the annuity 987
and that waiver was in effect at the time of the member's death, a 988
lump-sum distribution of the deceased member's accumulated 989
contributions shall be refunded in accordance with Section 990
25-11-117. 991
(c) The spouse annuity shall begin on the first day of 992
the month following the date of the member's death, but in case of 993
late filing, retroactive payments will be made for a period of not 994
more than one (1) year. 995
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 41 (DJ\KW)

(d) The spouse of a member who is eligible to receive a 996
monthly benefit under paragraph (a) of this subsection (2) shall 997
receive a benefit for life equal to the higher of the following: 998
(i) The greater of twenty percent (20%) of the 999
deceased member's average compensation as defined in Section 1000
25-11-103 at the time of death or Fifty Dollars ($50.00) monthly; 1001
or 1002
(ii) Benefits calculated under Option 2 of Section 1003
25-11-115. The method of calculating the retirement benefits 1004
shall be on the same basis as provided in Section 25-11-111(d), 1005
(e) or (g), as applicable. However, if the member dies before 1006
being qualified for a full, unreduced retirement allowance, then 1007
the benefits shall be reduced by an actuarially determined 1008
percentage or factor based on the lesser of either the number of 1009
years of service credit or the number of years in age required to 1010
qualify for a full, unreduced retirement allowance in Section 1011
25-11-111(d), (e) or (g), as applicable. 1012
(e) The surviving spouse of a deceased member who 1013
previously received spouse retirement benefits under paragraph 1014
(d)(i) of this subsection from and after July 1, 1992, and whose 1015
benefits were terminated before July 1, 2004, because of 1016
remarriage, may again receive the retirement benefits authorized 1017
under paragraph (d)(i) of this subsection by making application 1018
with the board to reinstate those benefits. Any reinstatement of 1019
the benefits shall be prospective only and shall begin after the 1020
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 42 (DJ\KW)

first of the month following the date of the application for 1021
reinstatement, but no earlier than July 1, 2004. From and after 1022
July 1, 2010, any spouse who chose Option 2 from and after July 1, 1023
1992, but before July 1, 2004, where the benefit, although payable 1024
for life, was less than the benefit available under the 1025
calculation in paragraph (d)(i) of this subsection shall have his 1026
or her benefit increased to the amount which provides the greater 1027
benefit. 1028
(3) (a) Subject to the maximum limitation provided in this 1029
paragraph, the member's dependent children each shall receive an 1030
annuity of the greater of ten percent (10%) of the member's 1031
average compensation as defined in Section 25-11-103 at the time 1032
of the death of the member or Fifty Dollars ($50.00) monthly; 1033
however, if there are more than three (3) dependent children, each 1034
dependent child shall receive an equal share of a total annuity 1035
equal to thirty percent (30%) of the member's average 1036
compensation, provided that the total annuity shall not be less 1037
than One Hundred Fifty Dollars ($150.00) per month for all 1038
children. 1039
(b) A child shall be considered to be a dependent child 1040
until marriage, or the attainment of age nineteen (19), whichever 1041
comes first; however, this age limitation shall be extended beyond 1042
age nineteen (19), but in no event beyond the attainment of age 1043
twenty-three (23), as long as the child is a student regularly 1044
pursuing a full-time course of resident study or training in an 1045
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 43 (DJ\KW)

accredited high school, trade school, technical or vocational 1046
institute, junior or community college, college, university or 1047
comparable recognized educational institution duly licensed by a 1048
state. A student child who is receiving a retirement allowance as 1049
of June 30, 2016, whose birthday falls during the school year 1050
(September 1 through June 30) is considered not to reach age 1051
twenty-three (23) until the July 1 following the actual 1052
twenty-third birthday. A full-time course of resident study or 1053
training means a day or evening noncorrespondence course that 1054
includes school attendance at the rate of at least thirty-six (36) 1055
weeks per academic year or other applicable period with a subject 1056
load sufficient, if successfully completed, to attain the 1057
educational or training objective within the period generally 1058
accepted as minimum for completion, by a full-time day student, of 1059
the academic or training program concerned. Any child who is 1060
physically or mentally incompetent, as adjudged by either a 1061
Mississippi court of competent jurisdiction or by the board, shall 1062
receive benefits for as long as the incompetency exists. 1063
(c) If there are more than three (3) dependent 1064
children, upon a child's ceasing to be a dependent child, his 1065
annuity shall terminate and there shall be a redetermination of 1066
the amounts payable to any remaining dependent children. 1067
(d) Annuities payable under this subsection (3) shall 1068
begin the first day of the month following the date of the 1069
member's death or in case of late filing, retroactive payments 1070
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 44 (DJ\KW)

will be made for a period of not more than one (1) year. Those 1071
benefits may be paid to a surviving parent or the lawful custodian 1072
of a dependent child for the use and benefit of the child without 1073
the necessity of appointment as guardian. 1074
(4) (a) Death benefits in the line of duty. Regardless of 1075
the number of years of the member's creditable service, the spouse 1076
and/or the dependent children of an active member who is killed or 1077
dies as a direct result of a physical injury sustained from an 1078
accident or a traumatic event caused by external violence or 1079
physical force occurring in the line of performance of duty shall 1080
qualify, on approval of the board, for a retirement allowance on 1081
the first of the month following the date of death, but in the 1082
case of late filing, retroactive payments will be made for a 1083
period of not more than one (1) year. The spouse shall receive a 1084
retirement allowance for life equal to one-half (1/2) of the 1085
average compensation as defined in Section 25-11-103. In addition 1086
to the retirement allowance for the spouse, or if there is no 1087
surviving spouse, the member's dependent child shall receive a 1088
retirement allowance in the amount of one-fourth (1/4) of the 1089
member's average compensation as defined in Section 25-11-103; 1090
however, if there are two (2) or more dependent children, each 1091
dependent child shall receive an equal share of a total annuity 1092
equal to one-half (1/2) of the member's average compensation. If 1093
there are more than two (2) dependent children, upon a child's 1094
ceasing to be a dependent child, his annuity shall terminate and 1095
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 45 (DJ\KW)

there shall be a redetermination of the amounts payable to any 1096
remaining dependent children. Those benefits shall cease to be 1097
paid for the support and maintenance of each child upon the child 1098
attaining the age of nineteen (19) years; however, the spouse 1099
shall continue to be eligible for the aforesaid retirement 1100
allowance. Those benefits may be paid to a surviving parent or 1101
lawful custodian of the children for the use and benefit of the 1102
children without the necessity of appointment as guardian. Any 1103
spouse who received spouse retirement benefits under this 1104
paragraph (a) from and after April 4, 1984, and whose benefits 1105
were terminated before July 1, 2004, because of remarriage, may 1106
again receive the retirement benefits authorized under this 1107
paragraph (a) by making application with the board to reinstate 1108
those benefits. Any reinstatement of the benefits shall be 1109
prospective only and shall begin after the first of the month 1110
following the date of the application for reinstatement, but not 1111
earlier than July 1, 2004. 1112
(b) A child shall be considered to be a dependent child 1113
until marriage, or the attainment of age nineteen (19), whichever 1114
comes first; however, this age limitation shall be extended beyond 1115
age nineteen (19), but in no event beyond the attainment of age 1116
twenty-three (23), as long as the child is a student regularly 1117
pursuing a full-time course of resident study or training in an 1118
accredited high school, trade school, technical or vocational 1119
institute, junior or community college, college, university or 1120
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 46 (DJ\KW)

comparable recognized educational institution duly licensed by a 1121
state. A student child who is receiving a retirement allowance as 1122
of June 30, 2016, whose birthday falls during the school year 1123
(September 1 through June 30) is considered not to reach age 1124
twenty-three (23) until the July 1 following the actual 1125
twenty-third birthday. A full-time course of resident study or 1126
training means a day or evening noncorrespondence course that 1127
includes school attendance at the rate of at least thirty-six (36) 1128
weeks per academic year or other applicable period with a subject 1129
load sufficient, if successfully completed, to attain the 1130
educational or training objective within the period generally 1131
accepted as minimum for completion, by a full-time day student, of 1132
the academic or training program concerned. Any child who is 1133
physically or mentally incompetent, as adjudged by either a 1134
Mississippi court of competent jurisdiction or by the board, shall 1135
receive benefits for as long as the incompetency exists. 1136
(5) If all the annuities provided for in this section 1137
payable on account of the death of a member terminate before there 1138
has been paid an aggregate amount equal to the member's 1139
accumulated contributions standing to the member's credit in the 1140
annuity savings account at the time of the member's death, the 1141
difference between the accumulated contributions and the aggregate 1142
amount of annuity payments shall be paid to the person that the 1143
member has nominated by written designation duly executed and 1144
filed with the board. If there is no designated beneficiary 1145
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 47 (DJ\KW)

surviving at termination of benefits, the difference shall be 1146
payable under Section 25-11-117.1(1). 1147
(6) Regardless of the number of years of creditable service, 1148
upon the application of a member or employer, any active member 1149
who becomes disabled as a direct result of a physical injury 1150
sustained from an accident or traumatic event caused by external 1151
violence or physical force occurring in the line of performance of 1152
duty, provided that the medical board or other designated 1153
governmental agency after a medical examination certifies that the 1154
member is mentally or physically incapacitated for the further 1155
performance of duty and the incapacity is likely to be permanent, 1156
may be retired by the board of trustees on the first of the month 1157
following the date of filing the application but in no event shall 1158
the retirement allowance begin before the termination of state 1159
service. If a member who has been approved for a retirement 1160
allowance under this subsection does not terminate state service 1161
within ninety (90) days after the approval, the retirement 1162
allowance and the application for the allowance shall be void. 1163
The retirement allowance shall equal the allowance on disability 1164
retirement as provided in Section 25-11-113 but shall not be less 1165
than fifty percent (50%) of average compensation. Line of duty 1166
disability benefits under this section shall be administered in 1167
accordance with the provisions of Section 25-11-113(1)(b), (c), 1168
(d), (e) and (f), (3), (4), (5) and (6). 1169
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 48 (DJ\KW)

(7) For purposes of determining death or disability benefits 1170
under this section, the following shall apply: 1171
(a) Death or permanent and total disability resulting 1172
from a cardiovascular, pulmonary or musculoskeletal condition that 1173
was not a direct result of a physical injury sustained from an 1174
accident or a traumatic event caused by external violence or 1175
physical force occurring in the performance of duty shall be 1176
deemed a natural death or an ordinary disability. 1177
(b) A mental disability based exclusively on employment 1178
duties occurring on an ongoing basis shall be deemed an ordinary 1179
disability. 1180
(8) If the deceased or disabled member has less than four 1181
(4) years of membership service, the average compensation as 1182
defined in Section 25-11-103 shall be the average of all annual 1183
earned compensation in state service for the purposes of benefits 1184
provided in this section. 1185
(9) In case of death or total and permanent disability under 1186
subsection (4) or subsection (6) of this section and before the 1187
board shall consider any application for a retirement allowance, 1188
the employer must certify to the board that the member's death or 1189
disability was a direct result of an accident or a traumatic event 1190
occurring during and as a result of the performance of the regular 1191
and assigned duties of the employee and that the death or 1192
disability was not the result of the willful negligence of the 1193
employee. 1194
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 49 (DJ\KW)

(10) The application for the retirement allowance must be 1195
filed within one (1) year after death of an active member who is 1196
killed in the line of performance of duty or dies as a direct 1197
result of an accident occurring in the line of performance of duty 1198
or traumatic event; but the board of trustees may consider an 1199
application for disability filed after the one-year period if it 1200
can be factually demonstrated to the satisfaction of the board of 1201
trustees that the disability is due to the accident and that the 1202
filing was not accomplished within the one-year period due to a 1203
delayed manifestation of the disability or to circumstances beyond 1204
the control of the member. However, in case of late filing, 1205
retroactive payments will be made for a period of not more than 1206
one (1) year only. 1207
(11) (a) Notwithstanding any other section of this article 1208
and in lieu of any payments to a designated beneficiary for a 1209
refund of contributions under Section 25-11-117, the spouse and/or 1210
children shall be eligible for the benefits payable under this 1211
section, and the spouse may elect, for both the spouse and/or 1212
children, to receive benefits in accordance with either 1213
subsections (2) and (3) or subsection (4) of this section; 1214
otherwise, the contributions to the credit of the deceased member 1215
shall be refunded in accordance with Section 25-11-117. 1216
(b) Notwithstanding any other section of this article, 1217
a spouse who is entitled to receive a monthly benefit under either 1218
subsection (2) or (4) of this section and who is also the named 1219
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 50 (DJ\KW)

beneficiary for a refund of accumulated contributions in the 1220
member's annuity savings account, may, after the death of the 1221
member, elect to receive a refund of accumulated contributions in 1222
lieu of a monthly allowance, provided that there are no dependent 1223
children entitled to benefits under subsection (3) of this 1224
section. 1225
(12) If the member has previously received benefits from the 1226
system to which he was not entitled and has not repaid in full all 1227
amounts payable by him to the system, the annuity amounts 1228
otherwise provided by this section shall be withheld and used to 1229
effect repayment until the total of the withholdings repays in 1230
full all amounts payable by him to the system. 1231
SECTION 6. Section 25-11-115, Mississippi Code of 1972, is 1232
brought forward as follows: 1233
25-11-115. (1) Upon application for superannuation or 1234
disability retirement, any member may elect to receive his or her 1235
benefit in a retirement allowance payable throughout life with no 1236
further payments to anyone at the member's death, except that if 1237
the member's total retirement payments under this article do not 1238
equal the member's total contributions under this article, the 1239
named beneficiary shall receive the difference in cash at the 1240
member's death. Or the member may elect upon retirement, or upon 1241
becoming eligible for retirement, to receive the actuarial 1242
equivalent subject to the provisions of subsection (3) of this 1243
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 51 (DJ\KW)

section of his or her retirement allowance in a reduced retirement 1244
allowance payable throughout life with the provision that: 1245
Option 1. If the retired member dies before he or she has 1246
received in annuity payment the value of the member's annuity 1247
savings account as it was at the time of the member's retirement, 1248
the balance shall be paid to the legal representative or to such 1249
person as the member has nominated by written designation duly 1250
acknowledged and filed with the board; 1251
Option 2. Upon the retired member's death, his or her 1252
reduced retirement allowance shall be continued throughout the 1253
life of, and paid to, such person as the member has nominated by 1254
written designation duly acknowledged and filed with the board of 1255
trustees at the time of his or her retirement; 1256
Option 3. Upon the retired member's death, one-half (1/2) of 1257
his or her reduced retirement allowance shall be continued 1258
throughout the life of, and paid to, such person as the member has 1259
nominated by written designation duly acknowledged and filed with 1260
the board of trustees at the time of his or her retirement, and 1261
the other one-half (1/2) of his or her reduced retirement 1262
allowance to some other designated beneficiary; 1263
Option 4. Upon the retired member's death, three-fourths 1264
(3/4) of his or her reduced retirement allowance, or such other 1265
specified amount, shall be continued throughout the life of, and 1266
paid to, such person as the member has nominated by written 1267
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 52 (DJ\KW)

designation duly acknowledged and filed with the board of trustees 1268
at the time of his or her retirement; 1269
Option 4-A. Upon the retired member's death, one-half (1/2) 1270
of his or her reduced retirement allowance, or such other 1271
specified amount, shall be continued throughout the life of, and 1272
paid to, such person as the member has nominated by written 1273
designation duly acknowledged and filed with the board of trustees 1274
at the time of his or her retirement; 1275
Option 4-B. A reduced retirement allowance shall be 1276
continued throughout the life of the retirant, but with the 1277
further guarantee of payments to the named beneficiary or 1278
beneficiaries for a specified number of years certain. If the 1279
retired member or the last designated beneficiary both die before 1280
receiving all guaranteed payments due, the actuarial equivalent of 1281
the remaining payments shall be paid to the successors of the 1282
retired member under Section 25-11-117.1(1); 1283
Option 6. Any member who became a member of the system 1284
before July 1, 2007, and who has at least twenty-eight (28) years 1285
of creditable service at the time of retirement or who is at least 1286
sixty-three (63) years of age and eligible to retire, may select 1287
the maximum retirement benefit or an optional benefit as provided 1288
in this subsection together with a partial lump-sum distribution. 1289
Any member who became a member of the system on or after July 1, 1290
2007, but before July 1, 2011, and who has at least twenty-eight 1291
(28) years of creditable service at the time of retirement may 1292
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 53 (DJ\KW)

select the maximum retirement benefit or any optional benefit as 1293
provided in this subsection together with a partial lump-sum 1294
distribution. Any member who became a member of the system on or 1295
after July 1, 2011, but before March 1, 2026, and who has at least 1296
thirty-three (33) years of creditable service at the time of 1297
retirement may select the maximum retirement benefit or any 1298
optional benefit as provided in this subsection together with a 1299
partial lump-sum distribution. Any member who became a member of 1300
the system on or after March 1, 2026, shall not be eligible for a 1301
partial lump-sum distribution. The amount of the lump-sum 1302
distribution under this option shall be equal to the maximum 1303
monthly benefit multiplied by twelve (12), twenty-four (24) or 1304
thirty-six (36) as selected by the member. The maximum retirement 1305
benefit shall be actuarially reduced to reflect the amount of the 1306
lump-sum distribution selected and further reduced for any other 1307
optional benefit selected. The annuity and lump-sum distribution 1308
shall be computed to result in no actuarial loss to the system. 1309
The lump-sum distribution shall be made as a single payment 1310
payable at the time the first monthly annuity payment is paid to 1311
the retiree. The amount of the lump-sum distribution shall be 1312
deducted from the member's annuity savings account in computing 1313
what contributions remain at the death of the retiree and/or a 1314
beneficiary. The lump-sum distribution option may be elected only 1315
once by a member upon initial retirement, and may not be elected 1316
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 54 (DJ\KW)

by a retiree, by members applying for a disability retirement 1317
annuity, or by survivors. 1318
(2) No change in the option selected shall be permitted 1319
after the member's death or after the member has received his or 1320
her first retirement check except as provided in subsections (3) 1321
and (4) of this section and in Section 25-11-127. Members who are 1322
pursuing a disability retirement allowance and simultaneously or 1323
later elect to begin to receive a service retirement allowance 1324
while continuing to pursue a disability retirement allowance, 1325
shall not be eligible to select Option 6 and that option may not 1326
be selected at a later time if the application for a disability 1327
retirement allowance is voided or denied. However, any retired 1328
member who is receiving a retirement allowance under Option 2 or 1329
Option 4-A upon July 1, 1992, and whose designated beneficiary 1330
predeceased him or her or whose marriage to a spouse who is his or 1331
her designated beneficiary is terminated by divorce or other 1332
dissolution, upon written notification to the retirement system of 1333
the death of the designated beneficiary or of the termination of 1334
the retired member's marriage to the designated beneficiary, the 1335
retirement allowance payable to the member after receipt of that 1336
notification by the retirement system shall be equal to the 1337
retirement allowance that would have been payable if the member 1338
had not elected the option. In addition, any retired member who 1339
is receiving the maximum retirement allowance for life, a 1340
retirement allowance under Option 1 or who is receiving a 1341
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 55 (DJ\KW)

retirement allowance under Option 2 or Option 4-A on July 1, 1992, 1342
may elect to provide survivor benefits under Option 2 or Option 1343
4-A to a spouse who was not previously the member's beneficiary 1344
and whom the member married before July 1, 1992. 1345
(3) Any retired member who is receiving a reduced retirement 1346
allowance under Option 2, Option 4 or Option 4-A whose designated 1347
beneficiary predeceases him or her, or whose marriage to a spouse 1348
who is his or her designated beneficiary is terminated by divorce 1349
or other dissolution, may elect to cancel the reduced retirement 1350
allowance and receive the maximum retirement allowance for life in 1351
an amount equal to the amount that would have been payable if the 1352
member had not elected Option 2, Option 4 or Option 4-A. That 1353
election must be made in writing to the office of the executive 1354
director of the system on a form prescribed by the board. Any 1355
such election shall be effective the first of the month following 1356
the date the election is received by the system; however, the 1357
election may be applied retroactively for not more than three (3) 1358
months but no earlier than the first of the month following the 1359
date of the death of the beneficiary. 1360
(4) Any retired member who is receiving the maximum 1361
retirement allowance for life, or a retirement allowance under 1362
Option 1, and who marries after his or her retirement may elect to 1363
cancel the maximum retirement allowance and receive a reduced 1364
retirement allowance under Option 2, Option 4 or Option 4-A to 1365
provide continuing lifetime benefits to his or her spouse. That 1366
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 56 (DJ\KW)

election must be made in writing to the office of the executive 1367
director of the system on a form prescribed by the board not 1368
earlier than the date of the marriage and not later than one (1) 1369
year from the date of the marriage. Any such election shall be 1370
effective the first of the month following the date the election 1371
is received by the system. 1372
(5) (a) Except as otherwise provided in this subsection, if 1373
the election of an optional benefit is made after the member has 1374
attained the age of sixty-five (65) years, the actuarial 1375
equivalent factor shall be used to compute the reduced retirement 1376
allowance as if the election had been made on his or her 1377
sixty-fifth birthday; however, from and after January 1, 2003, if 1378
there is an election of Option 6 after the member has attained the 1379
age of sixty-five (65) years, the actuarial equivalent factor 1380
based on the retiree's age at the time of retirement shall be used 1381
to compute the reduced maximum monthly retirement allowance. 1382
However, if a retiree marries or remarries after retirement and 1383
elects either Option 2 or Option 4-A as provided in subsection (2) 1384
or (4) of this section, the actuarial equivalent factor used to 1385
compute the reduced retirement allowance shall be the factor for 1386
the age of the retiree and his or her beneficiary at the time such 1387
election for recalculation of benefits is made. 1388
(b) For members who retire on or after July 1, 2012, 1389
the actuarial equivalent factor used to compute the reduced 1390
retirement allowance at retirement or upon any subsequent 1391
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 57 (DJ\KW)

recalculation of the benefit shall be the factor for the age of 1392
the retiree and his or her beneficiary at the time of retirement 1393
or at the time an election for recalculation of benefits is made. 1394
(6) Notwithstanding any provision of Section 25-11-1 et 1395
seq., no payments may be made for a retirement allowance on a 1396
monthly basis for a period of time in excess of that allowed by 1397
federal law. 1398
(7) If a retirant and his or her eligible beneficiary, if 1399
any, both die before they have received in annuity payments a 1400
total amount equal to the accumulated contributions standing to 1401
the retirant's credit in the annuity savings account at the time 1402
of his or her retirement, the difference between the accumulated 1403
contributions and the total amount of annuities received by them 1404
shall be paid to such persons as the retirant has nominated by 1405
written designation duly executed and filed in the office of the 1406
executive director. If no designated person survives the retirant 1407
and his or her beneficiary, the difference, if any, shall be paid 1408
under Section 25-11-117.1(1). 1409
(8) Any retired member who retired on Option 2(5) or 4-A(5) 1410
before July 1, 1992, who is still receiving a retirement allowance 1411
on July 1, 1994, shall receive an increase in the annual 1412
retirement allowance effective July 1, 1994, equal to the amount 1413
they would have received under Option 2 or Option 4-A without a 1414
reduction for Option 5 based on the ages at retirement of the 1415
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 58 (DJ\KW)

retiree and beneficiary and option factors in effect on July 1, 1416
1992. That increase shall be prospective only. 1417
SECTION 7. Section 25-11-117, Mississippi Code of 1972, is 1418
brought forward as follows: 1419
25-11-117. (1) A member may be paid a refund of the amount 1420
of accumulated contributions to the credit of the member in the 1421
annuity savings account, provided that the member has withdrawn 1422
from state service and has not returned to state service on the 1423
date the refund of the accumulated contributions would be paid. 1424
That refund of the contributions to the credit of the member in 1425
the annuity savings account shall be paid within ninety (90) days 1426
from receipt in the office of the retirement system of the 1427
properly completed form requesting the payment. In the event of 1428
death before retirement of any member whose spouse and/or children 1429
are not entitled to a retirement allowance, the accumulated 1430
contributions to the credit of the deceased member in the annuity 1431
savings account shall be paid to the designated beneficiary on 1432
file in writing in the office of the executive director of the 1433
board of trustees within ninety (90) days from receipt of a 1434
properly completed form requesting the payment. If there is no 1435
such designated beneficiary on file for the deceased member in the 1436
office of the system, upon the filing of a proper request with the 1437
board, the contributions to the credit of the deceased member in 1438
the annuity savings account shall be refunded under Section 1439
25-11-117.1(1). The payment of the refund shall discharge all 1440
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 59 (DJ\KW)

obligations of the retirement system to the member on account of 1441
any creditable service rendered by the member before the receipt 1442
of the refund. By the acceptance of the refund, the member shall 1443
waive and relinquish all accrued rights in the system. 1444
(2) Under the Unemployment Compensation Amendments of 1992 1445
(Public Law 102-318 (UCA)), a member or the spouse of a member who 1446
is an eligible beneficiary entitled to a refund under this section 1447
may elect, on a form prescribed by the board under rules and 1448
regulations established by the board, to have an eligible rollover 1449
distribution of accumulated contributions payable under this 1450
section paid directly to an eligible retirement plan, as defined 1451
under applicable federal law, or an individual retirement account. 1452
If the member or the spouse of a member who is an eligible 1453
beneficiary makes that election and specifies the eligible 1454
retirement plan or individual retirement account to which the 1455
distribution is to be paid, the distribution will be made in the 1456
form of a direct trustee-to-trustee transfer to the specified 1457
eligible retirement plan. A nonspouse beneficiary may elect to 1458
have an eligible rollover distribution paid in the form of a 1459
direct trustee-to-trustee transfer to an individual retirement 1460
account established to receive the distribution on behalf of the 1461
nonspouse beneficiary. Flexible rollovers under this subsection 1462
shall not be considered assignments under Section 25-11-129. 1463
(3) (a) If any person who has received a refund, reenters 1464
the state service and again becomes a member of the system before 1465
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 60 (DJ\KW)

July 1, 2007, the member may repay all or part of the amounts 1466
previously received as a refund, together with regular interest 1467
covering the period from the date of refund to the date of 1468
repayment; however, the amounts that are repaid by the member and 1469
the creditable service related thereto shall not be used in any 1470
benefit calculation or determination until the member has remained 1471
a contributor to the system for a period of at least four (4) 1472
years after the member's reentry into state service. Repayment 1473
for that time shall be made beginning with the most recent service 1474
for which refund has been made. Upon the repayment of all or part 1475
of that refund and interest, the member shall again receive credit 1476
for the period of creditable service for which full repayment has 1477
been made to the system. 1478
(b) If any person who has received a refund, reenters 1479
the state service and again becomes a member of the system on or 1480
after July 1, 2007, but before March 1, 2026, the member may repay 1481
all or part of the amounts previously received as a refund, 1482
together with regular interest covering the period from the date 1483
of refund to the date of repayment; however, the amounts that are 1484
repaid by the member and the creditable service related thereto 1485
shall not be used in any benefit calculation or determination 1486
until the member has remained a contributor to the system for a 1487
period of at least eight (8) years after the member's reentry into 1488
state service. Repayment for that time shall be made beginning 1489
with the most recent service for which refund has been made. Upon 1490
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 61 (DJ\KW)

the repayment of all or part of that refund and interest, the 1491
member shall again receive credit for the period of creditable 1492
service for which full repayment has been made to the system. 1493
(c) If any person who has received a refund reenters 1494
state service and again becomes a member of the system on or after 1495
March 1, 2026, the member shall not be eligible to repay any 1496
portion of amounts previously received as a refund and may not 1497
receive creditable service for service rendered before March 1, 1498
2026. 1499
(4) (a) In order to provide a source of income to members 1500
who have applied for disability benefits under Section 25-11-113 1501
or 25-11-114, the board may provide, at the employee's election, a 1502
temporary benefit to be paid from the member's accumulated 1503
contributions, if any, without forfeiting the right to pursue 1504
disability benefits, provided that the member has exhausted all 1505
personal and medical leave and has terminated his or her 1506
employment. The board may prescribe rules and regulations for 1507
carrying out the provisions of this subsection (4). 1508
(b) If a member who has elected to receive temporary 1509
benefits under this subsection later applies for a refund of his 1510
or her accumulated contributions, all amounts paid under this 1511
subsection shall be deducted from the accumulated contributions 1512
and the balance will be paid to the member. If a member who has 1513
elected to receive temporary benefits under this subsection is 1514
later approved for a disability retirement allowance, and a 1515
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 62 (DJ\KW)

service retirement allowance or survivor benefits are paid on the 1516
account, the board shall adjust the benefits in such a manner that 1517
no more than the actuarial equivalent of the benefits to which the 1518
member or beneficiary was or is entitled shall be paid. 1519
(c) The board may study, develop and propose a 1520
disability benefit structure, including short- and long-term 1521
disability benefits, provided that it is the actuarial equivalent 1522
of the benefits currently provided in Section 25-11-113 or 1523
25-11-114. 1524
SECTION 8. Section 25-11-123, Mississippi Code of 1972, is 1525
amended as follows: 1526
25-11-123. All of the assets of the system shall be credited 1527
according to the purpose for which they are held to one (1) of 1528
four (4) reserves; namely, the annuity savings account, the 1529
annuity reserve, the employer's accumulation account, and the 1530
expense account; however, any employee who became a member of the 1531
system on or after March 1, 2026, shall also have a defined 1532
contribution plan administered by the system, as provided in 1533
Section 25-11-147. 1534
(a) Annuity savings account. In the annuity savings 1535
account shall be accumulated the contributions made by members to 1536
provide for their annuities, including interest thereon which 1537
shall be posted monthly. Credits to and charges against the 1538
annuity savings account shall be made as follows: 1539
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 63 (DJ\KW)

(1) Beginning July 1, 2010, except as otherwise 1540
provided in Section 25-11-126, the employer shall cause to be 1541
deducted from the salary of each member on each and every payroll 1542
of the employer for each and every payroll period nine percent 1543
(9%) of earned compensation as defined in Section 25-11-103; 1544
however, for any employee who became a member of the system on or 1545
after March 1, 2026, only four percent (4%) of such earned 1546
compensation shall be deposited into the annuity savings account, 1547
with the remaining five percent (5%), to be deposited into the 1548
employee's defined contribution account authorized in Section 1549
25-11-147. Future contributions shall be fixed biennially by the 1550
board on the basis of the liabilities of the retirement system for 1551
the various allowances and benefits as shown by actuarial 1552
valuation; however, any member earning at a rate less than Sixteen 1553
Dollars and Sixty-seven Cents ($16.67) per month, or Two Hundred 1554
Dollars ($200.00) per year, shall contribute not less than One 1555
Dollar ($1.00) per month, or Twelve Dollars ($12.00) per year. 1556
(2) The deductions provided in paragraph (1) of 1557
this subsection shall be made notwithstanding that the minimum 1558
compensation provided by law for any member is reduced by the 1559
deduction. Every member shall be deemed to consent and agree to 1560
the deductions made and provided for in paragraph (1) of this 1561
subsection and shall receipt for his full salary or compensation, 1562
and payment of salary or compensation less the deduction shall be 1563
a full and complete discharge and acquittance of all claims and 1564
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 64 (DJ\KW)

demands whatsoever for the services rendered by the person during 1565
the period covered by the payment, except as to the benefits 1566
provided under Articles 1 and 3. The board shall provide by rules 1567
for the methods of collection of contributions from members and 1568
the employer. The board shall have full authority to require the 1569
production of evidence necessary to verify the correctness of 1570
amounts contributed. 1571
(b) Annuity reserve. The annuity reserve shall be the 1572
account representing the actuarial value of all annuities in 1573
force, and to it shall be charged all annuities and all benefits 1574
in lieu of annuities, payable as provided in this article. If a 1575
beneficiary retired on account of disability is restored to active 1576
service with a compensation not less than his average final 1577
compensation at the time of his last retirement, the remainder of 1578
his contributions shall be transferred from the annuity reserve to 1579
the annuity savings account and credited to his individual account 1580
therein, and the balance of his annuity reserve shall be 1581
transferred to the employer's accumulation account. 1582
(c) Employer's accumulation account. The employer's 1583
accumulation account shall represent the accumulation of all 1584
reserves for the payment of all retirement allowances and other 1585
benefits payable from contributions made by the employer, and 1586
against this account shall be charged all retirement allowances 1587
and other benefits on account of members. Credits to and charges 1588
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 65 (DJ\KW)

against the employer's accumulation account shall be made as 1589
follows: 1590
(1) (i) On account of each member who became a 1591
member of the system before March 1, 2026, there shall be paid 1592
monthly into the employer's accumulation account by the employers 1593
for the preceding fiscal year an amount equal to a certain 1594
percentage of the total earned compensation, as defined in Section 1595
25-11-103, of each member. From and after May 9, 2024, the 1596
increase in the employer's contribution rate scheduled to take 1597
effect on July 1, 2024, is rescinded and shall not take effect; 1598
however, on July 1 of each year from 2024 through 2028, the 1599
employer's contribution rate shall be increased by one-half 1600
percent (1/2%). For each member who became a member of the system 1601
on or after March 1, 2026, except as provided in Section 1602
25-11-147, the employer's monthly payment under this paragraph (1) 1603
shall be applied to the accrued liability contribution fund. 1604
(ii) Persons who choose to continue receiving 1605
a retirement allowance during their employment as teachers as 1606
authorized by Section 25-11-126, the percentage rate of the 1607
contributions to be paid into the employer's accumulation account 1608
by the employers of those persons shall be twenty-seven and four 1609
tenths percent (27.4%) of the total earned compensation of those 1610
persons as of July 1, 2025, and shall be increased by one-half 1611
percent (1/2%) through July 1, 2028 in accordance with the 1612
requirements of subparagraph (i) of this paragraph (1). However, 1613
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 66 (DJ\KW)

if after January 1, 2029, the Legislature increases the percentage 1614
rate of the employer's contribution required under the provisions 1615
of subparagraph (i) of this paragraph (1), or the Legislature 1616
increases the percentage rate of the contribution required under 1617
subsection (a)(1) of this section, or the Legislature increases 1618
both of those percentage rates, then the percentage rate of the 1619
contributions to be paid into the employer's accumulation account 1620
by the employers of those persons under this subparagraph (ii) 1621
shall be increased by the total amount of the increase or 1622
increases in the percentage rate or rates made by the Legislature. 1623
(2) For the public good, any recommendation by the 1624
board to adjust the employer contributions may be accompanied by 1625
at least two (2) assessments from actuaries who are independent 1626
from each other and the retirement plan. The actuaries shall 1627
analyze the economic impact of any such recommendation to the 1628
system and state, including, but not limited to, information 1629
showing the fiscal impact to every agency and arm of the state, 1630
including, but not limited to, state agencies, cities, counties 1631
and school districts. The actuarial assessments, with any such 1632
recommendation to adjust the employer contributions, shall be 1633
submitted to the Lieutenant Governor, Speaker of the House, 1634
Chairman of the Senate Appropriations Committee and Chairman of 1635
the House Appropriations Committee. 1636
(3) The board shall have the authority to make 1637
recommendations regarding additional funding sources for the 1638
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 67 (DJ\KW)

retirement plan, including employer contribution increases, based 1639
on the assets and liabilities of the retirement plan, and the 1640
analyses required by paragraph (2) of this subsection (c). The 1641
Legislature shall have the sole authority to implement any such 1642
recommendations. It is the intent of the Legislature that, in the 1643
2025 Regular Session, a law be enacted to create a new tier for 1644
future members of the system, in furtherance of the system's 1645
continued financial stability and sustainability. 1646
(4) This section shall not be construed to provide 1647
authority to reduce or eliminate any earned benefits to be 1648
provided by the state to persons who, before July 1, 2025, are 1649
drawing a retirement allowance or are members of the system. 1650
(5) On the basis of regular interest and of such 1651
mortality and other tables as are adopted by the board of 1652
trustees, the actuary engaged by the board to make each valuation 1653
required by this article during the period over which the accrued 1654
liability contribution is payable, immediately after making that 1655
valuation, shall determine the uniform and constant percentage of 1656
the earnable compensation of each member which, if contributed by 1657
the employer on the basis of compensation of the member throughout 1658
his entire period of membership service, would be sufficient to 1659
provide for the payment of any retirement allowance payable on his 1660
account for that service. The percentage rate so determined shall 1661
be known as the "normal contribution rate." After the accrued 1662
liability contribution has ceased to be payable, the normal 1663
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 68 (DJ\KW)

contribution rate shall be the percentage rate of the salary of 1664
all members obtained by deducting from the total liabilities on 1665
account of membership service the amount in the employer's 1666
accumulation account, and dividing the remainder by one percent 1667
(1%) of the present value of the prospective future salaries of 1668
all members as computed on the basis of the mortality and service 1669
tables adopted by the board of trustees and regular interest. The 1670
normal rate of contributions shall be determined by the actuary 1671
after each valuation. 1672
(6) The total amount payable in each year to the 1673
employer's accumulation account shall not be less than the sum of 1674
the percentage rate known as the "normal contribution rate" and 1675
the "accrued liability contribution rate" of the total 1676
compensation earnable by all members during the preceding year, 1677
provided that the payment by the employer shall be sufficient, 1678
when combined with the amounts in the account, to provide the 1679
allowances and other benefits chargeable to this account during 1680
the year then current. 1681
(7) The accrued liability contribution shall be 1682
discontinued as soon as the accumulated balance in the employer's 1683
accumulation account shall equal the present value, computed on 1684
the basis of the normal contribution rate then in force, or the 1685
prospective normal contributions to be received on account of all 1686
persons who are at that time members. 1687
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 69 (DJ\KW)

(8) All allowances and benefits in lieu thereof, 1688
with the exception of those payable on account of members who 1689
receive no prior service credit, payable from contributions of the 1690
employer, shall be paid from the employer's accumulation account. 1691
(9) Upon the retirement of a member, an amount 1692
equal to his retirement allowance shall be transferred from the 1693
employer's accumulation account to the annuity reserve. 1694
(10) The employer's accumulation account shall be 1695
credited with any assets authorized by law to be credited to the 1696
account. 1697
(d) Expense account. The expense account shall be the 1698
account to which the expenses of the administration of the system 1699
shall be charged, exclusive of amounts payable as retirement 1700
allowances and as other benefits provided herein. The Legislature 1701
shall make annual appropriations in amounts sufficient to 1702
administer the system, which shall be credited to this account. 1703
There shall be transferred to the State Treasury from this 1704
account, not less than once per month, an amount sufficient for 1705
payment of the estimated expenses of the system for the succeeding 1706
thirty (30) days. Any interest earned on the expense account 1707
shall accrue to the benefit of the system. However, 1708
notwithstanding the provisions of Sections 25-11-15(10) and 1709
25-11-105(f)(v)5, all expenses of the administration of the system 1710
shall be paid from the interest earnings, provided the interest 1711
earnings are in excess of the actuarial interest assumption as 1712
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 70 (DJ\KW)

determined by the board, and provided the present cost of the 1713
administrative expense fee of two percent (2%) of the 1714
contributions reported by the political subdivisions and 1715
instrumentalities shall be reduced to one percent (1%) from and 1716
after July 1, 1983, through June 30, 1984, and shall be eliminated 1717
thereafter. 1718
(e) Collection of contributions. The employer shall 1719
cause to be deducted on each and every payroll of a member for 1720
each and every payroll period, beginning subsequent to January 31, 1721
1953, the contributions payable by the member as provided in 1722
Articles 1 and 3. 1723
The employer shall make deductions from salaries of employees 1724
as provided in Articles 1 and 3 and shall transmit monthly, or at 1725
such time as the board of trustees designates, the amount 1726
specified to be deducted to the Executive Director of the Public 1727
Employees' Retirement System. The executive director, after 1728
making a record of all those receipts, shall deposit such amounts 1729
as provided by law. 1730
(f) (1) The sum of the normal contribution rate and 1731
the accrued liability contribution rate shall be known as the 1732
"employer's contribution rate." 1733
(2) The amount payable by the employer on account 1734
of normal and accrued liability contributions shall be determined 1735
by applying the employer's contribution rate to the amount of 1736
compensation earned by employees who are members of the system. 1737
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 71 (DJ\KW)

Monthly, or at such time as the board of trustees designates, each 1738
department or agency shall compute the amount of the employer's 1739
contribution payable, with respect to the salaries of its 1740
employees who are members of the system, and shall cause that 1741
amount to be paid to the board of trustees from the personal 1742
service allotment of the amount appropriated for the operation of 1743
the department or agency, or from funds otherwise available to the 1744
agency, for the payment of salaries to its employees. 1745
(3) Except as otherwise provided in Section 1746
25-11-106: 1747
(i) Constables shall pay employer and 1748
employee contributions on their net fee income as well as the 1749
employee contributions on all direct treasury or county payroll 1750
income. 1751
(ii) The county shall be responsible for the 1752
employer contribution on all direct treasury or county payroll 1753
income of constables. 1754
(4) Except as otherwise provided in Section 1755
25-11-106.1, chancery and circuit clerks shall be responsible for 1756
both the employer and employee share of contributions on the 1757
proportionate share of net income attributable to fees, as well as 1758
the employee share of net income attributable to direct treasury 1759
or county payroll income, and the employing county shall be 1760
responsible for the employer contributions on the net income 1761
attributable to direct treasury or county payroll income. 1762
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 72 (DJ\KW)

(5) Once each year, under procedures established 1763
by the system, each employer shall submit to the Public Employees' 1764
Retirement System a copy of their report to Social Security of all 1765
employees' earnings. 1766
(6) The board shall provide by rules for the 1767
methods of collection of contributions of employers and members. 1768
The amounts determined due by an agency to the various funds as 1769
specified in Articles 1 and 3 are made obligations of the agency 1770
to the board and shall be paid as provided herein. Failure to 1771
deduct those contributions shall not relieve the employee and 1772
employer from liability thereof. Delinquent employee 1773
contributions and any accrued interest shall be the obligation of 1774
the employee and delinquent employer contributions and any accrued 1775
interest shall be the obligation of the employer. The employer 1776
may, in its discretion, elect to pay any or all of the interest on 1777
delinquent employee contributions. From and after July 1, 1996, 1778
under rules and regulations established by the board, all 1779
employers are authorized and shall transfer all funds due to the 1780
Public Employees' Retirement System electronically and shall 1781
transmit any wage or other reports by computerized reporting 1782
systems. 1783
SECTION 9. Section 25-11-147, Mississippi Code of 1972, is 1784
brought forward as follows: 1785
25-11-147. (1) Each person becoming a member of the system 1786
on or after March 1, 2026, shall have, in addition to the defined 1787
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 73 (DJ\KW)

benefit plan under this article, a defined contribution plan 1788
meeting the requirements of Section 401(a) of the Internal Revenue 1789
Code. A portion of the employee's contributions shall be 1790
deposited into the employee's defined contribution account, as 1791
provided in Section 25-11-123, and in addition, the employer may 1792
elect to contribute an amount up to the maximum pretax amount 1793
allowable under federal law for plans under Section 401(a) of the 1794
Internal Revenue Code. Members shall be vested immediately in the 1795
defined contribution plan. 1796
(2) (a) Pursuant to Section 401(a) of the Internal Revenue 1797
Code, the board may establish a defined contribution, qualified 1798
plan under which a portion of the employee's mandatory 1799
contributions shall be deposited and which meets all requirements 1800
under federal and state law. To the extent state law conflicts 1801
with federal law, federal law shall govern the plan document to 1802
maintain the federal tax qualified status. The board, in its 1803
fiduciary capacity, may seek approval from the Internal Revenue 1804
Service. 1805
(b) The administration of the defined contribution plan 1806
shall be under the direction of the system. The defined 1807
contribution plan shall be operated in accordance with the 1808
guidelines established by the Internal Revenue Service for Section 1809
401(a) plans as reflected in the plan document, as may be modified 1810
from time to time by the board of trustees, and including optional 1811
variable employer contributions and a process for hardship 1812
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 74 (DJ\KW)

withdrawals by members. Payroll reductions shall be made, in each 1813
instance, by the appropriate payroll officer. The administrator 1814
of the defined contribution plan may contract with a private 1815
corporation or institution for providing consolidated billing and 1816
other administrative services if deemed necessary by the 1817
administrator. 1818
(c) The board of trustees may assess the employer an 1819
amount, out of the employer's contribution rate under Section 1820
25-11-123, up to two-tenths percent (0.2%) of the participant's 1821
total earned compensation as defined in Section 25-11-103 to 1822
provide for the administrative expenses of operating the defined 1823
contribution plan, including, but not limited to, the services of 1824
auditors, consultants, money managers and third-party 1825
administrators. 1826
(3) Each participating member shall direct the investment of 1827
the individual's accumulated employer and employee contributions 1828
and earnings to one or more investment choices within available 1829
categories of investment provided by the board. The board shall 1830
provide an investment menu of investment options. In establishing 1831
the investment options, the board shall: 1832
(a) Include predetermined investment portfolio options 1833
constructed to reflect different risk profiles that automatically 1834
reallocate and rebalance contributions as a participating member 1835
ages; and 1836
H. B. No. 1044 *HR26/R1645* ~ OFFICIAL ~
26/HR26/R1645
PAGE 75 (DJ\KW)
ST: PERS; revise Tier 5 service years for
retirement eligibility from 35 to 30 years.
(b) Allow a participating member to construct an 1837
investment portfolio using some or all of the investment options. 1838
SECTION 10. This act shall take effect and be in force from 1839
and after July 1, 2026. 1840