PERS; allow retirees to work as law enforcement officer for another employer and draw retirement allowance and work full time.

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

By: Representative Haney

HOUSE BILL NO. 1045

AN ACT TO AMEND SECTION 25-11-127, MISSISSIPPI CODE OF 1972, 1
TO AUTHORIZE RETIRED MEMBERS OF THE PUBLIC EMPLOYEES' RETIREMENT 2
SYSTEM TO BE EMPLOYED AS A LAW ENFORCEMENT OFFICER WITH AN 3
EMPLOYER OTHER THAN THE EMPLOYER FOR WHICH THE RETIREE WAS WORKING 4
AT THE TIME OF RETIREMENT AND DRAW THE FULL AMOUNT OF THE 5
RETIREMENT ALLOWANCE, DURING WHICH TIME THE RETIREE MAY WORK THE 6
FULL NUMBER OF NORMAL WORKING DAYS FOR THE POSITION AND RECEIVE 7
THE FULL AMOUNT OF THE SALARY IN EFFECT FOR THE POSITION AT THE 8
TIME OF EMPLOYMENT; AND FOR RELATED PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. Section 25-11-127, Mississippi Code of 1972, is 11
amended as follows: 12
25-11-127. (1) (a) No person who is being paid a 13
retirement allowance or a pension after retirement under this 14
article shall be employed or paid for any service by the State of 15
Mississippi, including services as an employee, contract worker, 16
contractual employee or independent contractor, until the retired 17
person has been retired for not less than ninety (90) consecutive 18
days from his or her effective date of retirement. After the 19
person has been retired for not less than ninety (90) consecutive 20
days from his or her effective date of retirement or such later 21
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date as established by the board, he or she may be reemployed 22
while being paid a retirement allowance under the terms and 23
conditions provided in this section or in Section 25-11-126. 24
(b) No retiree of this retirement system who is 25
reemployed or is reelected to office after retirement shall 26
continue to draw retirement benefits while so reemployed, except 27
as provided in this section or in Section 25-11-126. 28
(c) No person employed or elected under the exceptions 29
provided for in this section shall become a member under Article 3 30
of the retirement system. 31
(2) Except as otherwise provided in Section 25-11-126, any 32
person who has been retired under the provisions of Article 3 and 33
who is later reemployed in service covered by this article shall 34
cease to receive benefits under this article and shall again 35
become a contributing member of the retirement system. When the 36
person retires again, if the reemployment exceeds six (6) months, 37
the person shall have his or her benefit recomputed, including 38
service after again becoming a member, provided that the total 39
retirement allowance paid to the retired member in his or her 40
previous retirement shall be deducted from the member's retirement 41
reserve and taken into consideration in recalculating the 42
retirement allowance under a new option selected. 43
(3) The board shall have the right to prescribe rules and 44
regulations for carrying out the provisions of this section. 45
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(4) The provisions of this section shall not be construed to 46
prohibit any retiree, regardless of age, from being employed and 47
drawing a retirement allowance either: 48
(a) For a period of time not to exceed one-half (1/2) 49
of the normal working days for the position in any fiscal year 50
during which the retiree will receive no more than one-half (1/2) 51
of the salary in effect for the position at the time of 52
employment, or 53
(b) For a period of time in any fiscal year sufficient 54
in length to permit a retiree to earn not in excess of twenty-five 55
percent (25%) of retiree's average compensation. 56
To determine the normal working days for a position under 57
paragraph (a) of this subsection, the employer shall determine the 58
required number of working days for the position on a full-time 59
basis and the equivalent number of hours representing the 60
full-time position. The retiree then may work up to one-half 61
(1/2) of the required number of working days or up to one-half 62
(1/2) of the equivalent number of hours and receive up to one-half 63
(1/2) of the salary for the position. In the case of employment 64
with multiple employers, the limitation shall equal one-half (1/2) 65
of the number of days or hours for a single full-time position. 66
Notice shall be given in writing to the executive director, 67
setting forth the facts upon which the employment is being made, 68
and the notice shall be given within five (5) days from the date 69
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of employment and also from the date of termination of the 70
employment. 71
(5) The provisions of this section shall not be construed to 72
prohibit any retiree, regardless of age, from being employed as a 73
law enforcement officer with an employer other than the employer 74
for which the retiree was working at the time of retirement and 75
drawing the full amount of the retiree's retirement allowance, 76
during which time the retiree may work the full number of normal 77
working days for the position and receive the full amount of the 78
salary in effect for the position at the time of employment. 79
(6) Except as otherwise provided in subsection ( * * *7) of 80
this section, the employer of any person who is receiving a 81
retirement allowance and who is employed in service covered by 82
subsection (4) or (5) of this section as an employee or a 83
contractual employee shall pay to the board the full amount of the 84
employer's contribution on the amount of compensation received by 85
the retiree for his or her employment in accordance with 86
regulations prescribed by the board. The retiree shall not 87
receive any additional creditable service in the retirement system 88
as a result of the payment of the employer's contribution. This 89
subsection does not apply to persons who are receiving a 90
retirement allowance and who contract with an employer to provide 91
services as a true independent contractor, as defined by the board 92
through regulation. 93
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( * * *7) (a) A member may retire and continue in municipal 94
or county elective office provided that the member has reached the 95
age and/or service requirement that will not result in a 96
prohibited in-service distribution as defined by the Internal 97
Revenue Service, or a retiree may be elected to a municipal or 98
county office, provided that the person: 99
(i) Files annually, in writing, in the office of 100
the employer and the office of the executive director of the 101
system before the person takes office or as soon as possible after 102
retirement, a waiver of all salary or compensation and elects to 103
receive in lieu of that salary or compensation a retirement 104
allowance as provided in this section, in which event no salary or 105
compensation shall thereafter be due or payable for those 106
services; however, any such officer or employee may receive, in 107
addition to the retirement allowance, office expense allowance, 108
mileage or travel expense authorized by any statute of the State 109
of Mississippi; or 110
(ii) Elects to receive compensation for that 111
elective office in an amount not to exceed twenty-five percent 112
(25%) of the retiree's average compensation. In order to receive 113
compensation as allowed in this subparagraph, the retiree shall 114
file annually, in writing, in the office of the employer and the 115
office of the executive director of the system, an election to 116
receive, in addition to a retirement allowance, compensation as 117
allowed in this subparagraph. 118
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ST: PERS; allow retirees to work as law
enforcement officer for another employer and
draw retirement allowance and work full time.
(b) The municipality or county in which the retired 119
person holds elective office shall pay to the board the amount of 120
the employer's contributions on the full amount of the regular 121
compensation for the elective office that the retired person 122
holds. 123
(c) As used in this subsection, the term "compensation" 124
does not include office expense allowance, mileage or travel 125
expense authorized by a statute of the State of Mississippi. 126
( * * *8) Any retired teacher who returns to work in 127
accordance with this section shall not be eligible to return to 128
work under the provisions of Section 25-11-126. 129
SECTION 2. This act shall take effect and be in force from 130
and after July 1, 2026. 131