PERS; first responders hired after 3-1-26 may receive retirement allowance after 25 years of service.

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

By: Representative Carpenter

HOUSE BILL NO. 1050

AN ACT TO AMEND SECTIONS 25-11-103, 25-11-109, 25-11-111, 1
25-11-112, 25-11-114, 25-11-115, 25-11-117, 25-11-123 AND 2
25-11-147, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT LAW 3
ENFORCEMENT OFFICERS, FIREFIGHTERS AND EMERGENCY MEDICAL SERVICES 4
PROVIDERS WHO BECOME MEMBERS OF THE PUBLIC EMPLOYEES' RETIREMENT 5
SYSTEM ON OR AFTER MARCH 1, 2026, SHALL BE ENTITLED TO RECEIVE A 6
RETIREMENT ALLOWANCE AFTER 25 YEARS OF SERVICE REGARDLESS OF AGE; 7
AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 25-11-103, Mississippi Code of 1972, is 10
amended as follows: 11
25-11-103. (1) The following words and phrases as used in 12
Articles 1 and 3, unless a different meaning is plainly required 13
by the context, have the following meanings: 14
(a) "Accumulated contributions" means the sum of all 15
the amounts deducted from the compensation of a member and 16
credited to his or her individual account in the annuity savings 17
account, together with regular interest as provided in Section 18
25-11-123. 19
(b) "Actuarial cost" means the amount of funds 20
presently required to provide future benefits as determined by the 21
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board based on applicable tables and formulas provided by the 22
actuary. 23
(c) "Actuarial equivalent" means a benefit of equal 24
value to the accumulated contributions, annuity or benefit, as the 25
case may be, when computed upon the basis of such mortality tables 26
as adopted by the board of trustees, and regular interest. 27
(d) "Actuarial tables" mean such tables of mortality 28
and rates of interest as adopted by the board in accordance with 29
the recommendation of the actuary. 30
(e) "Agency" means any governmental body employing 31
persons in the state service. 32
(f) "Average compensation" means, for persons who 33
became members of the system before March 1, 2026, and for first 34
responders who became members of the system on or after March 1, 35
2026, the average of the four (4) highest years of earned 36
compensation reported for an employee in a fiscal or calendar year 37
period, or combination thereof that do not overlap, or the last 38
forty-eight (48) consecutive months of earned compensation 39
reported for an employee. The four (4) years need not be 40
successive or joined years of service. "Average compensation" 41
means, for persons who became members of the system on or after 42
March 1, 2026, except for first responders who became members of 43
the system on or after March 1, 2026, the average of the eight (8) 44
highest consecutive years of earned compensation reported for an 45
employee in a fiscal or calendar year period, or of the last 46
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ninety-six (96) consecutive months of earned compensation reported 47
for an employee, whichever is greater. 48
In computing the average compensation for retirement, 49
disability or survivor benefits, any amount lawfully paid in a 50
lump sum for personal leave or major medical leave shall be 51
included in the calculation to the extent that the amount does not 52
exceed an amount that is equal to thirty (30) days of earned 53
compensation and to the extent that it does not cause the 54
employee's earned compensation to exceed the maximum reportable 55
amount specified in paragraph (k) of this subsection; however, 56
this thirty-day limitation shall not prevent the inclusion in the 57
calculation of leave earned under federal regulations before July 58
1, 1976, and frozen as of that date as referred to in Section 59
25-3-99. In computing the average compensation, no amounts shall 60
be used that are in excess of the amount on which contributions 61
were required and paid, and no nontaxable amounts paid by the 62
employer for health or life insurance premiums for the employee 63
shall be used. If any member who is or has been granted any 64
increase in annual salary or compensation of more than eight 65
percent (8%) retires within twenty-four (24) months from the date 66
that the increase becomes effective, then the board shall exclude 67
that part of the increase in salary or compensation that exceeds 68
eight percent (8%) in calculating that member's average 69
compensation for retirement purposes. The board may enforce this 70
provision by rule or regulation. However, increases in 71
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compensation in excess of eight percent (8%) per year granted 72
within twenty-four (24) months of the date of retirement may be 73
included in the calculation of average compensation if 74
satisfactory proof is presented to the board showing that the 75
increase in compensation was the result of an actual change in the 76
position held or services rendered, or that the compensation 77
increase was authorized by the State Personnel Board or was 78
increased as a result of statutory enactment, and the employer 79
furnishes an affidavit stating that the increase granted within 80
the last twenty-four (24) months was not contingent on a promise 81
or agreement of the employee to retire. Nothing in Section 82
25-3-31 shall affect the calculation of the average compensation 83
of any member for the purposes of this article. The average 84
compensation of any member who retires before July 1, 1992, shall 85
not exceed the annual salary of the Governor. 86
(g) "Beneficiary" means any person entitled to receive 87
a retirement allowance, an annuity or other benefit as provided by 88
Articles 1 and 3. The term "beneficiary" may also include an 89
organization, estate, trust or entity; however, a beneficiary 90
designated or entitled to receive monthly payments under an 91
optional settlement based on life contingency or under a statutory 92
monthly benefit may only be a natural person. In the event of the 93
death before retirement of any member who became a member of the 94
system before July 1, 2007, and whose spouse and/or children are 95
not entitled to a retirement allowance on the basis that the 96
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member has less than four (4) years of membership service credit, 97
or who became a member of the system on or after July 1, 2007, and 98
whose spouse and/or children are not entitled to a retirement 99
allowance on the basis that the member has less than eight (8) 100
years of membership service credit, and/or has not been married 101
for a minimum of one (1) year or the spouse has waived his or her 102
entitlement to a retirement allowance under Section 25-11-114, the 103
lawful spouse of a member at the time of the death of the member 104
shall be the beneficiary of the member unless the member has 105
designated another beneficiary after the date of marriage in 106
writing, and filed that writing in the office of the executive 107
director of the board of trustees. No designation or change of 108
beneficiary shall be made in any other manner. 109
(h) "Board" means the board of trustees provided in 110
Section 25-11-15 to administer the retirement system created under 111
this article. 112
(i) "Creditable service" means "prior service," 113
"retroactive service" and all lawfully credited unused leave not 114
exceeding the accrual rates and limitations provided in Section 115
25-3-91 et seq., as of the date of withdrawal from service plus 116
"membership service" and other service for which credit is 117
allowable as provided in Section 25-11-109. Except to limit 118
creditable service reported to the system for the purpose of 119
computing an employee's retirement allowance or annuity or 120
benefits provided in this article, nothing in this paragraph shall 121
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limit or otherwise restrict the power of the governing authority 122
of a municipality or other political subdivision of the state to 123
adopt such vacation and sick leave policies as it deems necessary. 124
(j) "Child" means either a natural child of the member, 125
a child that has been made a child of the member by applicable 126
court action before the death of the member, or a child under the 127
permanent care of the member at the time of the latter's death, 128
which permanent care status shall be determined by evidence 129
satisfactory to the board. For purposes of this paragraph, a 130
natural child of the member is a child of the member that is 131
conceived before the death of the member. 132
(k) "Earned compensation" means the full amount earned 133
during a fiscal year by an employee not to exceed the employee 134
compensation limit set pursuant to Section 401(a)(17) of the 135
Internal Revenue Code for the calendar year in which the fiscal 136
year begins and proportionately for less than one (1) year of 137
service. Except as otherwise provided in this paragraph, the 138
value of maintenance furnished to an employee shall not be 139
included in earned compensation. Earned compensation shall not 140
include any amounts paid by the employer for health or life 141
insurance premiums for an employee. Earned compensation shall be 142
limited to the regular periodic compensation paid, exclusive of 143
litigation fees, bond fees, performance-based incentive payments, 144
and other similar extraordinary nonrecurring payments. In 145
addition, any member in a covered position, as defined by Public 146
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Employees' Retirement System laws and regulations, who is also 147
employed by another covered agency or political subdivision shall 148
have the earnings of that additional employment reported to the 149
Public Employees' Retirement System regardless of whether the 150
additional employment is sufficient in itself to be a covered 151
position. In addition, computation of earned compensation shall 152
be governed by the following: 153
(i) In the case of constables, the net earnings 154
from their office after deduction of expenses shall apply, except 155
that in no case shall earned compensation be less than the total 156
direct payments made by the state or governmental subdivisions to 157
the official. 158
(ii) In the case of chancery or circuit clerks, 159
the net earnings from their office after deduction of expenses 160
shall apply as expressed in Section 25-11-123(f)(4). 161
(iii) In the case of members of the State 162
Legislature, all remuneration or amounts paid, except mileage 163
allowance, shall apply. 164
(iv) The amount by which an eligible employee's 165
salary is reduced under a salary reduction agreement authorized 166
under Section 25-17-5 shall be included as earned compensation 167
under this paragraph, provided this inclusion does not conflict 168
with federal law, including federal regulations and federal 169
administrative interpretations under the federal law, pertaining 170
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to the Federal Insurance Contributions Act or to Internal Revenue 171
Code Section 125 cafeteria plans. 172
(v) Compensation in addition to an employee's base 173
salary that is paid to the employee under the vacation and sick 174
leave policies of a municipality or other political subdivision of 175
the state that employs him or her that exceeds the maximums 176
authorized by Section 25-3-91 et seq. shall be excluded from the 177
calculation of earned compensation under this article. 178
(vi) The maximum salary applicable for retirement 179
purposes before July 1, 1992, shall be the salary of the Governor. 180
(vii) Nothing in Section 25-3-31 shall affect the 181
determination of the earned compensation of any member for the 182
purposes of this article. 183
(viii) The value of maintenance furnished to an 184
employee before July 1, 2013, for which the proper amount of 185
employer and employee contributions have been paid, shall be 186
included in earned compensation. From and after July 1, 2013, the 187
value of maintenance furnished to an employee shall be reported as 188
earned compensation only if the proper amount of employer and 189
employee contributions have been paid on the maintenance and the 190
employee was receiving maintenance and having maintenance reported 191
to the system as of June 30, 2013. The value of maintenance when 192
not paid in money shall be fixed by the employing state agency, 193
and, in case of doubt, by the board of trustees as defined in 194
Section 25-11-15. 195
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(ix) Except as otherwise provided in this 196
paragraph, the value of any in-kind benefits provided by the 197
employer shall not be included in earned compensation. As used in 198
this subparagraph, "in-kind benefits" shall include, but not be 199
limited to, group life insurance premiums, health or dental 200
insurance premiums, nonpaid major medical and personal leave, 201
employer contributions for social security and retirement, tuition 202
reimbursement or educational funding, day care or transportation 203
benefits. 204
(l) "Employee" means any person legally occupying a 205
position in the state service, and shall include the employees of 206
the retirement system created under this article. 207
(m) "Employer" means the State of Mississippi or any of 208
its departments, agencies or subdivisions from which any employee 209
receives his or her compensation. 210
(n) "Executive director" means the secretary to the 211
board of trustees, as provided in Section 25-11-15(9), and the 212
administrator of the Public Employees' Retirement System and all 213
systems under the management of the board of trustees. Wherever 214
the term "Executive Secretary of the Public Employees' Retirement 215
System" or "executive secretary" appears in this article or in any 216
other provision of law, it shall be construed to mean the 217
Executive Director of the Public Employees' Retirement System. 218
(o) "Fiscal year" means the period beginning on July 1 219
of any year and ending on June 30 of the next succeeding year. 220
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(p) "Medical board" means the board of physicians or 221
any governmental or nongovernmental disability determination 222
service designated by the board of trustees that is qualified to 223
make disability determinations as provided for in Section 224
25-11-119. 225
(q) "Member" means any person included in the 226
membership of the system as provided in Section 25-11-105. For 227
purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 228
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 229
system withdrew from state service and received a refund of the 230
amount of the accumulated contributions to the credit of the 231
member in the annuity savings account before July 1, 2007, and the 232
person reenters state service and becomes a member of the system 233
again on or after July 1, 2007, and repays all or part of the 234
amount received as a refund and interest in order to receive 235
creditable service for service rendered before July 1, 2007, the 236
member shall be considered to have become a member of the system 237
on or after July 1, 2007, subject to the eight-year membership 238
service requirement, as applicable in those sections. For 239
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 240
25-11-115, if a member of the system withdrew from state service 241
and received a refund of the amount of the accumulated 242
contributions to the credit of the member in the annuity savings 243
account before July 1, 2011, and the person reenters state service 244
and becomes a member of the system again on or after July 1, 2011, 245
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and repays all or part of the amount received as a refund and 246
interest in order to receive creditable service for service 247
rendered before July 1, 2011, the member shall be considered to 248
have become a member of the system on or after July 1, 2011. If a 249
member of the system withdrew from state service and received a 250
refund of the amount of the accumulated contributions to the 251
credit of the member in the annuity savings account before March 252
1, 2026, and the person reenters state service and becomes a 253
member of the system again on or after March 1, 2026, the member 254
shall be considered to have become a member of the system on or 255
after March 1, 2026, and may not receive creditable service for 256
service rendered before March 1, 2026. 257
(r) "Membership service" means service as an employee 258
in a covered position rendered while a contributing member of the 259
retirement system. 260
(s) "Position" means any office or any employment in 261
the state service, or two (2) or more of them, the duties of which 262
call for services to be rendered by one (1) person, including 263
positions jointly employed by federal and state agencies 264
administering federal and state funds. The employer shall 265
determine upon initial employment and during the course of 266
employment of an employee who does not meet the criteria for 267
coverage in the Public Employees' Retirement System based on the 268
position held, whether the employee is or becomes eligible for 269
coverage in the Public Employees' Retirement System based upon any 270
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other employment in a covered agency or political subdivision. If 271
or when the employee meets the eligibility criteria for coverage 272
in the other position, then the employer must withhold 273
contributions and report wages from the noncovered position in 274
accordance with the provisions for reporting of earned 275
compensation. Failure to deduct and report those contributions 276
shall not relieve the employee or employer of liability thereof. 277
The board shall adopt such rules and regulations as necessary to 278
implement and enforce this provision. 279
(t) "Prior service" means: 280
(i) For persons who became members of the system 281
before July 1, 2007, service rendered before February 1, 1953, for 282
which credit is allowable under Sections 25-11-105 and 25-11-109, 283
and which shall allow prior service for any person who is now or 284
becomes a member of the Public Employees' Retirement System and 285
who does contribute to the system for a minimum period of four (4) 286
years. 287
(ii) For persons who became members of the system 288
on or after July 1, 2007, service rendered before February 1, 289
1953, for which credit is allowable under Sections 25-11-105 and 290
25-11-109, and which shall allow prior service for any person who 291
is now or becomes a member of the Public Employees' Retirement 292
System and who does contribute to the system for a minimum period 293
of eight (8) years. 294
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(u) "Regular interest" means interest compounded 295
annually at such a rate as determined by the board in accordance 296
with Section 25-11-121. 297
(v) "Retirement allowance" means an annuity for life as 298
provided in this article, payable each year in twelve (12) equal 299
monthly installments beginning as of the date fixed by the board. 300
The retirement allowance shall be calculated in accordance with 301
Section 25-11-111. However, any spouse who received a spouse 302
retirement benefit in accordance with Section 25-11-111(d) before 303
March 31, 1971, and those benefits were terminated because of 304
eligibility for a social security benefit, may again receive his 305
or her spouse retirement benefit from and after making application 306
with the board of trustees to reinstate the spouse retirement 307
benefit. 308
(w) "Retroactive service" means service rendered after 309
February 1, 1953, for which credit is allowable under Section 310
25-11-105(b) and Section 25-11-105(k). 311
(x) "System" means the Public Employees' Retirement 312
System of Mississippi established and described in Section 313
25-11-101. 314
(y) "State" means the State of Mississippi or any 315
political subdivision thereof or instrumentality of the state. 316
(z) "State service" means all offices and positions of 317
trust or employment in the employ of the state, or any political 318
subdivision or instrumentality of the state, that elect to 319
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participate as provided by Section 25-11-105(f), including the 320
position of elected or fee officials of the counties and their 321
deputies and employees performing public services or any 322
department, independent agency, board or commission thereof, and 323
also includes all offices and positions of trust or employment in 324
the employ of joint state and federal agencies administering state 325
and federal funds and service rendered by employees of the public 326
schools. Effective July 1, 1973, all nonprofessional public 327
school employees, such as bus drivers, janitors, maids, 328
maintenance workers and cafeteria employees, shall have the option 329
to become members in accordance with Section 25-11-105(b), and 330
shall be eligible to receive credit for services before July 1, 331
1973, provided that the contributions and interest are paid by the 332
employee in accordance with that section; in addition, the county 333
or municipal separate school district may pay the employer 334
contribution and pro rata share of interest of the retroactive 335
service from available funds. "State service" shall not include 336
the President of the Mississippi Lottery Corporation and personnel 337
employed by the Mississippi Lottery Corporation. From and after 338
July 1, 1998, retroactive service credit shall be purchased at the 339
actuarial cost in accordance with Section 25-11-105(b). 340
(aa) "Withdrawal from service" or "termination from 341
service" means complete severance of employment in the state 342
service of any member by resignation, dismissal or discharge. 343
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(bb) "First responder" means a law enforcement officer, 344
firefighter or emergency medical services provider. 345
(cc) "Law enforcement officer" means any of the 346
following persons who are authorized to carry a firearm while in 347
the performance of their official duties and who have met the 348
minimum educational and training standards established by the 349
Board on Law Enforcement Officer Standards and Training for 350
permanent, full-time law enforcement officers and have received a 351
certificate from that board: 352
(i) Municipal police officers and narcotics 353
agents, but not officers who are engaged only in administrative or 354
civil duties; 355
(ii) Sheriffs and deputy sheriffs, but not deputy 356
sheriffs who are engaged only in administrative or civil duties; 357
(iii) Constables; 358
(iv) Conservation officers of the Department of 359
Wildlife, Fisheries and Parks; 360
(v) Enforcement officers of the Department of 361
Marine Resources; 362
(vi) Agents and inspectors of the Alcoholic 363
Beverage Control Division of the Department of Revenue; 364
(vii) Commercial transportation inspection station 365
employees, enforcement officers, field inspectors, railroad 366
inspectors and other inspectors of the Department of Public 367
Safety; 368
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(viii) Capitol Police officers of the Department 369
of Public Safety; 370
(ix) State correctional facility guards and 371
enforcement officers of the Department of Corrections; 372
(x) Municipal or county jail officers, guards and 373
enforcement officers; and 374
(xi) Any other full-time officer or employee of 375
the state or any county, municipality or other political 376
subdivision of the state, not listed in subparagraphs (i) through 377
(x) of this paragraph, who is authorized to carry a firearm while 378
in the performance of his or her official duties and who has met 379
the minimum educational and training standards established by the 380
Board on Law Enforcement Officer Standards and Training for 381
permanent, full-time law enforcement officers and has received a 382
certificate from that board. 383
(dd) "Firefighter" means a person who is trained for 384
the prevention and control of loss of life and property from fire 385
or other emergencies, who is assigned to firefighting activity and 386
is required to respond to alarms and perform emergency actions at 387
the location of a fire, hazardous materials or other emergency 388
incident, who is employed full time by the state or any county, 389
municipality or other political subdivision of the state, and who 390
has met the minimum educational and training standards established 391
by the Mississippi Fire Personnel Minimum Standards and 392
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Certification Board for permanent, full-time firefighters and has 393
received a certificate from that board. 394
(ee) "Emergency medical services provider" means a 395
person who is certified by the State Department of Health as one 396
of the types of emergency medical services personnel under Section 397
41-59-1 et seq., and who is employed full time by the state or any 398
county, municipality or other political subdivision of the state. 399
This term also includes 911 dispatchers who are employed full time 400
by the state or any county, municipality or other political 401
subdivision of the state. 402
( * * *ff) The masculine pronoun, wherever used, 403
includes the feminine pronoun. 404
(2) For purposes of this article, the term "political 405
subdivision" shall have the meaning ascribed to such term in 406
Section 25-11-5 and shall also include public charter schools. 407
SECTION 2. Section 25-11-109, Mississippi Code of 1972, is 408
amended as follows: 409
25-11-109. (1) Under such rules and regulations as the 410
board of trustees shall adopt, each person who becomes a member of 411
this retirement system, as provided in Section 25-11-105, on or 412
before July 1, 1953, or who became a member of the system before 413
July 1, 2007, and contributes to the system for a minimum period 414
of four (4) years, or who became a member of the system on or 415
after July 1, 2007, and contributes to the system for a minimum 416
period of eight (8) years, shall receive credit for all state 417
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service rendered before February 1, 1953. To receive that credit, 418
the member shall file a detailed statement of all services as an 419
employee rendered by him or her in the state service before 420
February 1, 1953. For any member who joined the system after July 421
1, 1953, and before July 1, 2007, any creditable service for which 422
the member is not required to make contributions shall not be 423
credited to the member until the member has contributed to the 424
system for a minimum period of at least four (4) years. For any 425
member who joined the system on or after July 1, 2007, but before 426
March 1, 2026, or for any first responder who became a member of 427
the system on or after March 1, 2026, any creditable service for 428
which the member is not required to make contributions shall not 429
be credited to the member until the member has contributed to the 430
system for a minimum period of at least eight (8) years. 431
(2) (a) (i) In the computation of creditable service for 432
service rendered before July 1, 2017, under the provisions of this 433
article, the total months of accumulative service during any 434
fiscal year shall be calculated in accordance with the schedule as 435
follows: ten (10) or more months of creditable service during any 436
fiscal year shall constitute a year of creditable service; seven 437
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 438
year of creditable service; four (4) months to six (6) months 439
inclusive, one-half (1/2) year of creditable service; one (1) 440
month to three (3) months inclusive, one-quarter (1/4) of a year 441
of creditable service. 442
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(ii) In the computation of creditable service 443
rendered on or after July 1, 2017, under the provisions of this 444
article, service credit shall be awarded in monthly increments in 445
a manner prescribed by regulations of the board. 446
(b) In no case shall credit be allowed for any period 447
of absence without compensation except for disability while in 448
receipt of a disability retirement allowance, nor shall less than 449
fifteen (15) days of service in any month, or service less than 450
the equivalent of one-half (1/2) of the normal working load for 451
the position and less than one-half (1/2) of the normal 452
compensation for the position in any month, constitute a month of 453
creditable service, nor shall more than one (1) year of service be 454
creditable for all services rendered in any one (1) fiscal year; 455
however, for a school employee, substantial completion of the 456
legal school term when and where the service was rendered shall 457
constitute a year of service credit. Any state or local elected 458
official shall be deemed a full-time employee for the purpose of 459
creditable service. However, an appointed or elected official 460
compensated on a per diem basis only shall not be allowed 461
creditable service for terms of office. 462
(c) In the computation of any retirement allowance or 463
any annuity or benefits provided in this article, any fractional 464
period of service of less than one (1) year shall be taken into 465
account and a proportionate amount of such retirement allowance, 466
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annuity or benefit shall be granted for any such fractional period 467
of service. 468
(d) (i) In the computation of unused leave for 469
creditable service authorized in Section 25-11-103, the following 470
shall govern for members who retire before July 1, 2017: 471
twenty-one (21) days of unused leave shall constitute one (1) 472
month of creditable service and in no case shall credit be allowed 473
for any period of unused leave of less than fifteen (15) days. 474
The number of months of unused leave shall determine the number of 475
quarters or years of creditable service in accordance with the 476
above schedule for membership and prior service. 477
(ii) In the computation of unused leave for 478
creditable service authorized in Section 25-11-103, the following 479
shall govern for members who retire on or after July 1, 2017: 480
creditable service for unused leave shall be calculated in monthly 481
increments in which one (1) month of service credit shall be 482
awarded for each twenty-one (21) days of unused leave, except that 483
the first fifteen (15) to fifty-seven (57) days of leave shall 484
constitute three (3) months of service for those who became a 485
member of the system before July 1, 2017. 486
(iii) In order for the member to receive 487
creditable service for the number of days of unused leave under 488
this paragraph, the system must receive certification from the 489
governing authority. 490
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(iv) For anyone who becomes a member of the system 491
on or after March 1, 2026, except for a first responder who became 492
a member of the system on or after March 1, 2026, no service 493
credit shall be awarded for unused leave. 494
(e) For the purposes of this subsection, members of the 495
system who retire on or after July 1, 2010, shall receive credit 496
for one-half (1/2) day of leave for each full year of membership 497
service accrued after June 30, 2010. The amount of leave received 498
by a member under this paragraph shall be added to the lawfully 499
credited unused leave for which creditable service is provided 500
under Section 25-11-103(i). 501
(f) For the purpose of this subsection, for members of 502
the system who are elected officers and who retire on or after 503
July 1, 1987, the following shall govern: 504
(i) For service before July 1, 1984, the members 505
shall receive credit for leave (combined personal and major 506
medical) for service as an elected official before that date at 507
the rate of thirty (30) days per year. 508
(ii) For service on and after July 1, 1984, the 509
member shall receive credit for personal and major medical leave 510
beginning July 1, 1984, at the rates authorized in Sections 511
25-3-93 and 25-3-95, computed as a full-time employee. 512
(iii) If a member is employed in a covered 513
nonelected position and a covered elected position simultaneously, 514
that member may not receive service credit for accumulated unused 515
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leave for both positions at retirement for the period during which 516
the member was dually employed. During the period during which 517
the member is dually employed, the member shall only receive 518
credit for leave as provided for in this paragraph for an elected 519
official. 520
(iv) For any elected official who becomes a member 521
of the system on or after March 1, 2026, except for an elected 522
official who is a first responder and who became a member of the 523
system on or after March 1, 2026, no service credit shall be 524
awarded for leave. 525
(3) Subject to the above restrictions and to such other 526
rules and regulations as the board may adopt, the board shall 527
verify, as soon as practicable after the filing of such statements 528
of service, the services therein claimed. 529
(4) Upon verification of the statement of prior service, the 530
board shall issue a prior service certificate certifying to each 531
member the length of prior service for which credit shall have 532
been allowed on the basis of his or her statement of service. So 533
long as membership continues, a prior service certificate shall be 534
final and conclusive for retirement purposes as to such service, 535
provided that any member may within five (5) years from the date 536
of issuance or modification of such certificate request the board 537
of trustees to modify or correct his or her prior service 538
certificate. Any modification or correction authorized shall only 539
apply prospectively. 540
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When membership ceases, such prior service certificates shall 541
become void. Should the employee again become a member, he or she 542
shall enter the system as an employee not entitled to prior 543
service credit except as provided in Sections 25-11-105(I), 544
25-11-113 and 25-11-117. 545
(5) Creditable service at retirement, on which the 546
retirement allowance of a member shall be based, shall consist of 547
the membership service rendered by him or her since he or she last 548
became a member, and also, if he or she has a prior service 549
certificate that is in full force and effect, the amount of the 550
service certified on his or her prior service certificate. 551
(6) Any member who served on active duty in the Armed Forces 552
of the United States, who served in the Commissioned Corps of the 553
United States Public Health Service before 1972 or who served in 554
maritime service during periods of hostility in World War II, 555
shall be entitled to creditable service at no cost for his or her 556
service on active duty in the Armed Forces, in the Commissioned 557
Corps of the United States Public Health Service before 1972 or in 558
such maritime service, provided he or she entered state service 559
after his or her discharge from the Armed Forces or entered state 560
service after he completed such maritime service. The maximum 561
period for such creditable service for all military service as 562
defined in this subsection (6) shall not exceed four (4) years 563
unless positive proof can be furnished by such person that he was 564
retained in the Armed Forces during World War II or in maritime 565
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service during World War II by causes beyond his control and 566
without opportunity of discharge. The member shall furnish proof 567
satisfactory to the board of trustees of certification of military 568
service or maritime service records showing dates of entrance into 569
active duty service and the date of discharge. From and after 570
July 1, 1993, no creditable service shall be granted for any 571
military service or maritime service to a member who qualifies for 572
a retirement allowance in another public retirement system 573
administered by the Board of Trustees of the Public Employees' 574
Retirement System based, in whole or in part, on such military or 575
maritime service. In no case shall the member receive creditable 576
service if the member received a dishonorable discharge from the 577
Armed Forces of the United States. 578
(7) (a) Any member of the Public Employees' Retirement 579
System whose membership service is interrupted as a result of 580
qualified military service within the meaning of Section 414(u)(5) 581
of the Internal Revenue Code, and who has received the maximum 582
service credit available under subsection (6) of this section, 583
shall receive creditable service for the period of qualified 584
military service that does not qualify as creditable service under 585
subsection (6) of this section upon reentering membership service 586
in an amount not to exceed five (5) years if: 587
(i) The member pays the contributions he or she 588
would have made to the retirement system if he or she had remained 589
in membership service for the period of qualified military service 590
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based upon his or her salary at the time his or her membership 591
service was interrupted; 592
(ii) The member returns to membership service 593
within ninety (90) days of the end of his or her qualified 594
military service; and 595
(iii) The employer at the time the member's 596
service was interrupted and to which employment the member returns 597
pays the contributions it would have made into the retirement 598
system for such period based on the member's salary at the time 599
the service was interrupted. 600
(b) The payments required to be made in paragraph 601
(a)(i) of this subsection may be made over a period beginning with 602
the date of return to membership service and not exceeding three 603
(3) times the member's qualified military service; however, in no 604
event shall such period exceed five (5) years. 605
(c) The member shall furnish proof satisfactory to the 606
board of trustees of certification of military service showing 607
dates of entrance into qualified service and the date of discharge 608
as well as proof that the member has returned to active employment 609
within the time specified. 610
(8) Any member of the Public Employees' Retirement System 611
who became a member of the system before July 1, 2007, and who has 612
at least four (4) years of membership service credit, or who 613
became a member of the system on or after July 1, 2007, but before 614
March 1, 2026, or any first responder who became a member of the 615
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system on or after March 1, 2026, and who has at least eight (8) 616
years of membership service credit, shall be entitled to receive a 617
maximum of five (5) years' creditable service for service rendered 618
in another state as a public employee of such other state, or a 619
political subdivision, public education system or other 620
governmental instrumentality thereof, or service rendered as a 621
teacher in American overseas dependent schools conducted by the 622
Armed Forces of the United States for children of citizens of the 623
United States residing in areas outside the continental United 624
States, provided that: 625
(a) The member shall furnish proof satisfactory to the 626
board of trustees of certification of such services from the 627
state, public education system, political subdivision or 628
retirement system of the state where the services were performed 629
or the governing entity of the American overseas dependent school 630
where the services were performed; and 631
(b) The member is not receiving or will not be entitled 632
to receive from the public retirement system of the other state or 633
from any other retirement plan, including optional retirement 634
plans, sponsored by the employer, a retirement allowance including 635
such services; and 636
(c) The member shall pay to the retirement system on 637
the date he or she is eligible for credit for such out-of-state 638
service or at any time thereafter before the date of retirement 639
the actuarial cost as determined by the actuary for each year of 640
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out-of-state creditable service. The provisions of this 641
subsection are subject to the limitations of Section 415 of the 642
Internal Revenue Code and regulations promulgated under that 643
section. 644
(9) Any member of the Public Employees' Retirement System 645
who became a member of the system before July 1, 2007, and has at 646
least four (4) years of membership service credit, or who became a 647
member of the system on or after July 1, 2007, but before March 1, 648
2026, or any first responder who became a member of the system on 649
or after March 1, 2026, and who has at least eight (8) years of 650
membership service credit, and who receives, or has received, 651
professional leave without compensation for professional purposes 652
directly related to the employment in state service shall receive 653
creditable service for the period of professional leave without 654
compensation provided: 655
(a) The professional leave is performed with a public 656
institution or public agency of this state, or another state or 657
federal agency; 658
(b) The employer approves the professional leave 659
showing the reason for granting the leave and makes a 660
determination that the professional leave will benefit the 661
employee and employer; 662
(c) Such professional leave shall not exceed two (2) 663
years during any ten-year period of state service; 664
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(d) The employee shall serve the employer on a 665
full-time basis for a period of time equivalent to the 666
professional leave period granted immediately following the 667
termination of the leave period; 668
(e) The contributing member shall pay to the retirement 669
system the actuarial cost as determined by the actuary for each 670
year of professional leave. The provisions of this subsection are 671
subject to the regulations of the Internal Revenue Code 672
limitations; 673
(f) Such other rules and regulations consistent 674
herewith as the board may adopt and in case of question, the board 675
shall have final power to decide the questions. 676
Any actively contributing member participating in the School 677
Administrator Sabbatical Program established in Section 37-9-77 678
shall qualify for continued participation under this subsection 679
(9). 680
(10) Any member of the Public Employees' Retirement System 681
who became a member of the system before July 1, 2007, and has at 682
least four (4) years of credited membership service, or who became 683
a member of the system on or after July 1, 2007, but before March 684
1, 2026, or any first responder who became a member of the system 685
on or after March 1, 2026, and who has at least eight (8) years of 686
credited membership service, shall be entitled to receive a 687
maximum of ten (10) years creditable service for: 688
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(a) Any service rendered as an employee of any 689
political subdivision of this state, or any instrumentality 690
thereof, that does not participate in the Public Employees' 691
Retirement System; or 692
(b) Any service rendered as an employee of any 693
political subdivision of this state, or any instrumentality 694
thereof, that participates in the Public Employees' Retirement 695
System but did not elect retroactive coverage; or 696
(c) Any service rendered as an employee of any 697
political subdivision of this state, or any instrumentality 698
thereof, for which coverage of the employee's position was or is 699
excluded; provided that the member pays into the retirement system 700
the actuarial cost as determined by the actuary for each year, or 701
portion thereof, of such service. After a member has made full 702
payment to the retirement system for all or any part of such 703
service, the member shall receive creditable service for the 704
period of such service for which full payment has been made to the 705
retirement system. 706
SECTION 3. Section 25-11-111, Mississippi Code of 1972, is 707
amended as follows: 708
25-11-111. (a) (1) Any member who became a member of the 709
system before July 1, 2007, upon withdrawal from service upon or 710
after attainment of the age of sixty (60) years who has completed 711
at least four (4) years of membership service, or any member who 712
became a member of the system before July 1, 2011, or any first 713
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responder who became a member of the system on or after March 1, 714
2026, upon withdrawal from service regardless of age who has 715
completed at least twenty-five (25) years of creditable service, 716
shall be entitled to receive a retirement allowance, which shall 717
begin on the first of the month following the date the member's 718
application for the allowance is received by the board, but in no 719
event before withdrawal from service. 720
(2) Any member who became a member of the system on or 721
after July 1, 2007, but before March 1, 2026, or any first 722
responder who became a member of the system on or after March 1, 723
2026, upon withdrawal from service upon or after attainment of the 724
age of sixty (60) years who has completed at least eight (8) years 725
of membership service, or any member who became a member of the 726
system on or after July 1, 2011, but before March 1, 2026, upon 727
withdrawal from service regardless of age who has completed at 728
least thirty (30) years of creditable service, shall be entitled 729
to receive a retirement allowance, which shall begin on the first 730
of the month following the date the member's application for the 731
allowance is received by the board, but in no event before 732
withdrawal from service. 733
(3) Any member who became a member of the system on or 734
after March 1, 2026, except for a first responder who became a 735
member of the system on or after March 1, 2026, upon withdrawal 736
from service upon or after attainment of the age of sixty-two (62) 737
years who has completed at least eight (8) years of membership 738
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service, or upon withdrawal from service regardless of age who has 739
completed at least thirty-five (35) years of creditable service, 740
shall be entitled to receive a retirement allowance, which shall 741
begin on the first of the month following the date the member's 742
application for the allowance is received by the board, but in no 743
event before withdrawal from service. 744
(b) (1) Any member who became a member of the system before 745
July 1, 2007, whose withdrawal from service occurs before 746
attaining the age of sixty (60) years who has completed four (4) 747
or more years of membership service and has not received a refund 748
of his or her accumulated contributions, shall be entitled to 749
receive a retirement allowance, beginning upon his or her 750
attaining the age of sixty (60) years, of the amount earned and 751
accrued at the date of withdrawal from service. The retirement 752
allowance shall begin on the first of the month following the date 753
the member's application for the allowance is received by the 754
board, but in no event before withdrawal from service. 755
(2) Any member who became a member of the system on or 756
after July 1, 2007, but before March 1, 2026, or any first 757
responder who became a member of the system on or after March 1, 758
2026, whose withdrawal from service occurs before attaining the 759
age of sixty (60) years who has completed eight (8) or more years 760
of membership service and has not received a refund of his or her 761
accumulated contributions, shall be entitled to receive a 762
retirement allowance, beginning upon his or her attaining the age 763
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of sixty (60) years, of the amount earned and accrued at the date 764
of withdrawal from service. The retirement allowance shall begin 765
on the first of the month following the date the member's 766
application for the allowance is received by the board, but in no 767
event before withdrawal from service. 768
(3) Any member who became a member of the system on or 769
after March 1, 2026, except for a first responder who became a 770
member of the system on or after March 1, 2026, whose withdrawal 771
from service occurs before attaining the age of sixty-two (62) 772
years who has completed eight (8) or more years of membership 773
service and has not received a refund of his or her accumulated 774
contributions, shall be entitled to receive a retirement 775
allowance, beginning upon his or her attaining the age of 776
sixty-two (62) years, of the amount earned and accrued at the date 777
of withdrawal from service. The retirement allowance shall begin 778
on the first of the month following the date the member's 779
application for the allowance is received by the board, but in no 780
event before withdrawal from service. 781
(c) Any member in service who has qualified for retirement 782
benefits may select any optional method of settlement of 783
retirement benefits by notifying the Executive Director of the 784
Board of Trustees of the Public Employees' Retirement System in 785
writing, on a form prescribed by the board, of the option he or 786
she has selected and by naming the beneficiary of the option and 787
furnishing necessary proof of age. The option, once selected, may 788
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be changed at any time before actual retirement or death, but upon 789
the death or retirement of the member, the optional settlement 790
shall be placed in effect upon proper notification to the 791
executive director. 792
(d) Any member who became a member of the system before July 793
1, 2011, or any first responder who became a member of the system 794
on or after March 1, 2026, shall be entitled to an annual 795
retirement allowance which shall consist of: 796
(1) A member's annuity, which shall be the actuarial 797
equivalent of the accumulated contributions of the member at the 798
time of retirement computed according to the actuarial table in 799
use by the system; and 800
(2) An employer's annuity, which, together with the 801
member's annuity provided above, shall be equal to two percent 802
(2%) of the average compensation for each year of service up to 803
and including twenty-five (25) years of creditable service, and 804
two and one-half percent (2-1/2%) of the average compensation for 805
each year of service exceeding twenty-five (25) years of 806
creditable service. 807
(3) Any retired member or beneficiary thereof who was 808
eligible to receive a retirement allowance before July 1, 1991, 809
and who is still receiving a retirement allowance on July 1, 1992, 810
shall receive an increase in the annual retirement allowance of 811
the retired member equal to one-eighth of one percent (1/8 of 1%) 812
of the average compensation for each year of state service in 813
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excess of twenty-five (25) years of membership service up to and 814
including thirty (30) years. The maximum increase shall be 815
five-eighths of one percent (5/8 of 1%). In no case shall a 816
member who has been retired before July 1, 1987, receive less than 817
Ten Dollars ($10.00) per month for each year of creditable service 818
and proportionately for each quarter year thereof. Persons 819
retired on or after July 1, 1987, shall receive at least Ten 820
Dollars ($10.00) per month for each year of service and 821
proportionately for each quarter year thereof reduced for the 822
option selected. However, such Ten Dollars ($10.00) minimum per 823
month for each year of creditable service shall not apply to a 824
retirement allowance computed under Section 25-11-114 based on a 825
percentage of the member's average compensation. 826
(e) Any member who became a member of the system on or after 827
July 1, 2011, but before March 1, 2026, shall be entitled to an 828
annual retirement allowance which shall consist of: 829
(1) A member's annuity, which shall be the actuarial 830
equivalent of the accumulated contributions of the member at the 831
time of retirement computed according to the actuarial table in 832
use by the system; and 833
(2) An employer's annuity, which, together with the 834
member's annuity provided above, shall be equal to two percent 835
(2%) of the average compensation for each year of service up to 836
and including thirty (30) years of creditable service, and two and 837
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one-half percent (2-1/2%) of average compensation for each year of 838
service exceeding thirty (30) years of creditable service. 839
(f) Any member who became a member of the system on or after 840
July 1, 2011, but before March 1, 2026, upon withdrawal from 841
service upon or after attaining the age of sixty (60) years who 842
has completed at least eight (8) years of membership service, or 843
any such member upon withdrawal from service regardless of age who 844
has completed at least thirty (30) years of creditable service, 845
shall be entitled to receive a retirement allowance computed in 846
accordance with the formula set forth in subsection (e) of this 847
section. In the case of the retirement of any member who has 848
attained age sixty (60) but who has not completed at least thirty 849
(30) years of creditable service, the retirement allowance shall 850
be computed in accordance with the formula set forth in subsection 851
(e) of this section except that the total annual retirement 852
allowance shall be reduced by an actuarial equivalent factor for 853
each year of creditable service below thirty (30) years or the 854
number of years in age that the member is below age sixty-five 855
(65), whichever is less. 856
(g) Any member who became a member of the system on or after 857
March 1, 2026, except for a first responder who became a member of 858
the system on or after March 1, 2026, upon withdrawal from service 859
upon or after attainment of the age of sixty-five (65) years who 860
has completed at least eight (8) years of membership service, or 861
upon withdrawal from service at the age of sixty-two (62) who has 862
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completed at least thirty (30) years of creditable service, or 863
upon withdrawal from service regardless of age who has completed 864
at least thirty-five (35) years of creditable service, shall be 865
entitled to an annual retirement allowance which shall consist of 866
a member's annuity, which annuity shall be equal to one percent 867
(1%) of the average compensation for each year of creditable 868
service. In the case of the retirement of any member who has 869
attained the age of sixty-two (62) but has not completed at least 870
thirty (30) years of creditable service, the total annual 871
retirement allowance specified in this subsection (g) shall be 872
reduced by an actuarial equivalent factor for each year of 873
creditable service below thirty (30) years or the number of years 874
in age that the member is below age sixty-five (65), whichever is 875
less. 876
(h) No member, except members excluded by the Age 877
Discrimination in Employment Act Amendments of 1986 (Public Law 878
99-592), under either Article 1 or Article 3 in state service 879
shall be required to retire because of age. 880
(i) No payment on account of any benefit granted under the 881
provisions of this section shall become effective or begin to 882
accrue until January 1, 1953. 883
(j) (1) A retiree or beneficiary may, on a form prescribed 884
by and filed with the retirement system, irrevocably waive all or 885
a portion of any benefits from the retirement system to which the 886
retiree or beneficiary is entitled. The waiver shall be binding 887
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on the heirs and assigns of any retiree or beneficiary and the 888
same must agree to forever hold harmless the Public Employees' 889
Retirement System of Mississippi from any claim to the waived 890
retirement benefits. 891
(2) Any waiver under this subsection shall apply only 892
to the person executing the waiver. A beneficiary shall be 893
entitled to benefits according to the option selected by the 894
member at the time of retirement. However, a beneficiary may, at 895
the option of the beneficiary, execute a waiver of benefits under 896
this subsection. 897
(3) The retirement system shall retain in the annuity 898
reserve account amounts that are not used to pay benefits because 899
of a waiver executed under this subsection. 900
(4) The board of trustees may provide rules and 901
regulations for the administration of waivers under this 902
subsection. 903
SECTION 4. Section 25-11-112, Mississippi Code of 1972, is 904
amended as follows: 905
25-11-112. (1) Any member who became a member of the system 906
before March 1, 2026, or any first responder who became a member 907
of the system on or after March 1, 2026, who and is receiving a 908
retirement allowance for service or disability retirement, or any 909
beneficiary thereof, who has received a monthly benefit for at 910
least one (1) full fiscal year, shall be eligible to receive an 911
additional benefit, on December 1 or July 1 of the year as 912
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provided in subsection (3) of this section, equal to an amount 913
calculated under paragraph (a) or (b) below: 914
(a) For any member who became a member of the system 915
before July 1, 2011, the sum of: 916
(i) An amount equal to three percent (3%) of the 917
annual retirement allowance multiplied by the number of full 918
fiscal years in retirement before the end of the fiscal year in 919
which the member reaches age fifty-five (55), plus 920
(ii) An additional amount equal to three percent 921
(3%) compounded by the number of full fiscal years in retirement 922
beginning with the fiscal year in which the member reaches age 923
fifty-five (55), multiplied by the amount of the annual retirement 924
allowance. 925
(b) For any member who became a member of the system on 926
or after July 1, 2011, but before March 1, 2026, or for any first 927
responder who became a member of the system on or after March 1, 928
2026, the sum of: 929
(i) An amount equal to three percent (3%) of the 930
annual retirement allowance multiplied by the number of full 931
fiscal years in retirement before the end of the fiscal year in 932
which the member reaches age sixty (60), plus 933
(ii) An additional amount equal to three percent 934
(3%) compounded by the number of full fiscal years in retirement 935
beginning with the fiscal year in which the member reaches age 936
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sixty (60), multiplied by the amount of the annual retirement 937
allowance. 938
(2) The calculation of the beneficiary's additional benefit 939
under subsection (1)(a) or (b) of this section shall be based on 940
the member's age and full fiscal years in retirement as if the 941
member had lived. 942
(3) (a) The additional benefit provided for under this 943
section shall be paid in one (1) payment in December of each year 944
to those persons who are receiving a retirement allowance on 945
December 1 of that year, unless an election is made under this 946
subsection. However, if a retiree who is receiving a retirement 947
allowance that will terminate upon the retiree's death is 948
receiving the additional benefit in one (1) payment and dies on or 949
after July 1 but before December 1, the beneficiary designated on 950
the retirement application, if any, shall receive in a single 951
payment a fractional part of the additional benefit based on the 952
number of months in which a retirement allowance was received 953
during the fiscal year. Likewise, if a retiree is receiving a 954
retirement allowance that will terminate upon his or her death in 955
two (2) to six (6) monthly installments, any remaining payments of 956
the additional benefit will be paid in a lump sum to the 957
beneficiary designated on the application, or if none, pursuant to 958
Section 25-11-117.1(1). Any similar remaining payments of 959
additional benefits payable under this section to a deceased 960
beneficiary who was receiving a monthly benefit shall be payable 961
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in accordance with the provisions of Section 25-11-117.1(2). If 962
the additional monthly benefit is being received in one (1) 963
payment, the additional benefit shall also be prorated based on 964
the number of months in which a retirement allowance was received 965
during the fiscal year when (i) the monthly benefit payable to a 966
beneficiary terminates due to the expiration of an option, 967
remarriage or cessation of dependent status or due to the 968
retiree's return to covered employment, and (ii) the monthly 969
benefit terminates on or after July 1 and before December 1. The 970
board may, in its discretion, allow a retired member or a 971
beneficiary thereof who is receiving the additional annual payment 972
in the manner provided for in this paragraph to change the manner 973
in which the additional annual payment is received to that 974
provided for in paragraph (b) of this subsection if the retired 975
member or beneficiary submits satisfactory documentation that the 976
continued receipt of the additional annual payment as provided for 977
in this paragraph will cause a financial hardship to the retired 978
member or beneficiary. 979
(b) Retired members or beneficiaries thereof who on 980
July 1, 1999, or July 1 of any fiscal year thereafter, are 981
receiving a retirement allowance, may elect by an irrevocable 982
agreement in writing filed in the Office of the Public Employees' 983
Retirement System no less than thirty (30) days before July 1 of 984
the appropriate year, to begin receiving the additional benefit 985
provided for under this section in twelve (12) equal monthly 986
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installments beginning July 1, 1999, or July 1 of any fiscal year 987
thereafter. This irrevocable agreement shall be binding on the 988
member and subsequent beneficiaries. Payment of those monthly 989
installments shall not extend beyond the month in which a 990
retirement allowance is due and payable. The board may, in its 991
discretion, allow a retired member or a beneficiary thereof who is 992
receiving the additional annual payment in the manner provided for 993
in this paragraph to change the manner in which the additional 994
annual payment is received to that provided for in paragraph (a) 995
of this subsection if the retired member or beneficiary submits 996
satisfactory documentation that the continued receipt of the 997
additional annual payment as provided for in this paragraph will 998
cause a financial hardship to the retired member or beneficiary. 999
(4) The additional payment or payments provided for under 1000
this section are for the fiscal year in which they are paid. 1001
(5) (a) The amount provided for under subsection (1) 1002
(a)(ii) of this section is calculated using the following formula: 1003
[(1.03)n - 1] x [annual retirement allowance], 1004
where n is the number of full fiscal years in retirement beginning 1005
with the fiscal year in which the member reaches age fifty-five 1006
(55). 1007
(b) The amount provided for under subsection (1)(b)(ii) 1008
of this section is calculated using the following formula: 1009
[(1.03)n - 1] x [annual retirement allowance], 1010
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where n is the number of full fiscal years in retirement beginning 1011
with the fiscal year in which the member reaches age sixty (60). 1012
(6) Any retired member or beneficiary thereof who has 1013
previously elected to receive the additional annual payment in 1014
monthly installments may elect, upon application on a form 1015
prescribed by the board of trustees, to have that payment made in 1016
one (1) additional payment each year. This written election must 1017
be filed in the Office of the Public Employees' Retirement System 1018
before June 1, 2000, and shall be effective for the fiscal year 1019
beginning July 1, 2000. 1020
(7) In the event of death of a retired member or a 1021
beneficiary thereof who is receiving the additional annual payment 1022
in two (2) to six (6) monthly installments pursuant to an election 1023
made before July 1, 1999, and who would otherwise be eligible to 1024
receive the additional benefit provided for under this section in 1025
one (1) payment in December of the current fiscal year, any 1026
remaining amounts shall be paid in a lump sum to the designated 1027
beneficiary. 1028
(8) When a member retires after July 1 and has previously 1029
received a retirement allowance for one or more full fiscal years, 1030
the retired member shall be eligible immediately for the 1031
additional benefit. The additional benefit shall be based on the 1032
current retirement allowance and the number of full fiscal years 1033
in retirement and shall be prorated and paid in monthly 1034
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installments based on the number of months a retirement allowance 1035
is paid during the fiscal year. 1036
(9) A member who became a member of the system on or after 1037
March 1, 2026, except for a first responder who became a member of 1038
the system on or after March 1, 2026, is not entitled to the 1039
additional annual benefit under this section; however, the 1040
Legislature may provide an additional benefit for a specific year. 1041
SECTION 5. Section 25-11-114, Mississippi Code of 1972, is 1042
amended as follows: 1043
25-11-114. (1) The applicable benefits provided in 1044
subsections (2) and (3) of this section shall be paid to eligible 1045
beneficiaries of any member who became a member of the system 1046
before July 1, 2007, and has completed four (4) or more years of 1047
membership service, or who became a member of the system on or 1048
after July 1, 2007, and has completed eight (8) or more years of 1049
membership service, and who dies before retirement and who has not 1050
filed a Pre-Retirement Optional Retirement Form as provided in 1051
Section 25-11-111. 1052
(2) (a) The surviving spouse of a member who dies before 1053
retirement shall receive a monthly benefit computed in accordance 1054
with paragraph (d) of this subsection (2) as if the member had 1055
nominated his or her spouse as beneficiary if: 1056
(i) The member completed the requisite minimum 1057
number of years of membership service to qualify for a retirement 1058
allowance at age sixty (60), for any member who became a member of 1059
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the system before March 1, 2026, or for any first responder who 1060
became a member of the system on or after March 1, 2026, or at age 1061
sixty-two (62), for any member who became a member of the system 1062
on or after March 1, 2026, except for any first responder who 1063
became a member of the system on or after March 1, 2026; 1064
(ii) The spouse has been married to the member for 1065
not less than one (1) year preceding the death of the member; 1066
(iii) The member has not exercised any other 1067
option. 1068
(b) If, at the time of the member's death, there are no 1069
dependent children, and the surviving spouse, who otherwise would 1070
receive the annuity under this subsection (2), has filed with the 1071
system a signed written waiver of his or her rights to the annuity 1072
and that waiver was in effect at the time of the member's death, a 1073
lump-sum distribution of the deceased member's accumulated 1074
contributions shall be refunded in accordance with Section 1075
25-11-117. 1076
(c) The spouse annuity shall begin on the first day of 1077
the month following the date of the member's death, but in case of 1078
late filing, retroactive payments will be made for a period of not 1079
more than one (1) year. 1080
(d) The spouse of a member who is eligible to receive a 1081
monthly benefit under paragraph (a) of this subsection (2) shall 1082
receive a benefit for life equal to the higher of the following: 1083
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(i) The greater of twenty percent (20%) of the 1084
deceased member's average compensation as defined in Section 1085
25-11-103 at the time of death or Fifty Dollars ($50.00) monthly; 1086
or 1087
(ii) Benefits calculated under Option 2 of Section 1088
25-11-115. The method of calculating the retirement benefits 1089
shall be on the same basis as provided in Section 25-11-111(d), 1090
(e) or (g), as applicable. However, if the member dies before 1091
being qualified for a full, unreduced retirement allowance, then 1092
the benefits shall be reduced by an actuarially determined 1093
percentage or factor based on the lesser of either the number of 1094
years of service credit or the number of years in age required to 1095
qualify for a full, unreduced retirement allowance in Section 1096
25-11-111(d), (e) or (g), as applicable. 1097
(e) The surviving spouse of a deceased member who 1098
previously received spouse retirement benefits under paragraph 1099
(d)(i) of this subsection from and after July 1, 1992, and whose 1100
benefits were terminated before July 1, 2004, because of 1101
remarriage, may again receive the retirement benefits authorized 1102
under paragraph (d)(i) of this subsection by making application 1103
with the board to reinstate those benefits. Any reinstatement of 1104
the benefits shall be prospective only and shall begin after the 1105
first of the month following the date of the application for 1106
reinstatement, but no earlier than July 1, 2004. From and after 1107
July 1, 2010, any spouse who chose Option 2 from and after July 1, 1108
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1992, but before July 1, 2004, where the benefit, although payable 1109
for life, was less than the benefit available under the 1110
calculation in paragraph (d)(i) of this subsection shall have his 1111
or her benefit increased to the amount which provides the greater 1112
benefit. 1113
(3) (a) Subject to the maximum limitation provided in this 1114
paragraph, the member's dependent children each shall receive an 1115
annuity of the greater of ten percent (10%) of the member's 1116
average compensation as defined in Section 25-11-103 at the time 1117
of the death of the member or Fifty Dollars ($50.00) monthly; 1118
however, if there are more than three (3) dependent children, each 1119
dependent child shall receive an equal share of a total annuity 1120
equal to thirty percent (30%) of the member's average 1121
compensation, provided that the total annuity shall not be less 1122
than One Hundred Fifty Dollars ($150.00) per month for all 1123
children. 1124
(b) A child shall be considered to be a dependent child 1125
until marriage, or the attainment of age nineteen (19), whichever 1126
comes first; however, this age limitation shall be extended beyond 1127
age nineteen (19), but in no event beyond the attainment of age 1128
twenty-three (23), as long as the child is a student regularly 1129
pursuing a full-time course of resident study or training in an 1130
accredited high school, trade school, technical or vocational 1131
institute, junior or community college, college, university or 1132
comparable recognized educational institution duly licensed by a 1133
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state. A student child who is receiving a retirement allowance as 1134
of June 30, 2016, whose birthday falls during the school year 1135
(September 1 through June 30) is considered not to reach age 1136
twenty-three (23) until the July 1 following the actual 1137
twenty-third birthday. A full-time course of resident study or 1138
training means a day or evening noncorrespondence course that 1139
includes school attendance at the rate of at least thirty-six (36) 1140
weeks per academic year or other applicable period with a subject 1141
load sufficient, if successfully completed, to attain the 1142
educational or training objective within the period generally 1143
accepted as minimum for completion, by a full-time day student, of 1144
the academic or training program concerned. Any child who is 1145
physically or mentally incompetent, as adjudged by either a 1146
Mississippi court of competent jurisdiction or by the board, shall 1147
receive benefits for as long as the incompetency exists. 1148
(c) If there are more than three (3) dependent 1149
children, upon a child's ceasing to be a dependent child, his or 1150
her annuity shall terminate and there shall be a redetermination 1151
of the amounts payable to any remaining dependent children. 1152
(d) Annuities payable under this subsection (3) shall 1153
begin the first day of the month following the date of the 1154
member's death or in case of late filing, retroactive payments 1155
will be made for a period of not more than one (1) year. Those 1156
benefits may be paid to a surviving parent or the lawful custodian 1157
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of a dependent child for the use and benefit of the child without 1158
the necessity of appointment as guardian. 1159
(4) (a) Death benefits in the line of duty. Regardless of 1160
the number of years of the member's creditable service, the spouse 1161
and/or the dependent children of an active member who is killed or 1162
dies as a direct result of a physical injury sustained from an 1163
accident or a traumatic event caused by external violence or 1164
physical force occurring in the line of performance of duty shall 1165
qualify, on approval of the board, for a retirement allowance on 1166
the first of the month following the date of death, but in the 1167
case of late filing, retroactive payments will be made for a 1168
period of not more than one (1) year. The spouse shall receive a 1169
retirement allowance for life equal to one-half (1/2) of the 1170
average compensation as defined in Section 25-11-103. In addition 1171
to the retirement allowance for the spouse, or if there is no 1172
surviving spouse, the member's dependent child shall receive a 1173
retirement allowance in the amount of one-fourth (1/4) of the 1174
member's average compensation as defined in Section 25-11-103; 1175
however, if there are two (2) or more dependent children, each 1176
dependent child shall receive an equal share of a total annuity 1177
equal to one-half (1/2) of the member's average compensation. If 1178
there are more than two (2) dependent children, upon a child's 1179
ceasing to be a dependent child, his or her annuity shall 1180
terminate and there shall be a redetermination of the amounts 1181
payable to any remaining dependent children. Those benefits shall 1182
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cease to be paid for the support and maintenance of each child 1183
upon the child attaining the age of nineteen (19) years; however, 1184
the spouse shall continue to be eligible for the aforesaid 1185
retirement allowance. Those benefits may be paid to a surviving 1186
parent or lawful custodian of the children for the use and benefit 1187
of the children without the necessity of appointment as guardian. 1188
Any spouse who received spouse retirement benefits under this 1189
paragraph (a) from and after April 4, 1984, and whose benefits 1190
were terminated before July 1, 2004, because of remarriage, may 1191
again receive the retirement benefits authorized under this 1192
paragraph (a) by making application with the board to reinstate 1193
those benefits. Any reinstatement of the benefits shall be 1194
prospective only and shall begin after the first of the month 1195
following the date of the application for reinstatement, but not 1196
earlier than July 1, 2004. 1197
(b) A child shall be considered to be a dependent child 1198
until marriage, or the attainment of age nineteen (19), whichever 1199
comes first; however, this age limitation shall be extended beyond 1200
age nineteen (19), but in no event beyond the attainment of age 1201
twenty-three (23), as long as the child is a student regularly 1202
pursuing a full-time course of resident study or training in an 1203
accredited high school, trade school, technical or vocational 1204
institute, junior or community college, college, university or 1205
comparable recognized educational institution duly licensed by a 1206
state. A student child who is receiving a retirement allowance as 1207
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of June 30, 2016, whose birthday falls during the school year 1208
(September 1 through June 30) is considered not to reach age 1209
twenty-three (23) until the July 1 following the actual 1210
twenty-third birthday. A full-time course of resident study or 1211
training means a day or evening noncorrespondence course that 1212
includes school attendance at the rate of at least thirty-six (36) 1213
weeks per academic year or other applicable period with a subject 1214
load sufficient, if successfully completed, to attain the 1215
educational or training objective within the period generally 1216
accepted as minimum for completion, by a full-time day student, of 1217
the academic or training program concerned. Any child who is 1218
physically or mentally incompetent, as adjudged by either a 1219
Mississippi court of competent jurisdiction or by the board, shall 1220
receive benefits for as long as the incompetency exists. 1221
(5) If all the annuities provided for in this section 1222
payable on account of the death of a member terminate before there 1223
has been paid an aggregate amount equal to the member's 1224
accumulated contributions standing to the member's credit in the 1225
annuity savings account at the time of the member's death, the 1226
difference between the accumulated contributions and the aggregate 1227
amount of annuity payments shall be paid to the person that the 1228
member has nominated by written designation duly executed and 1229
filed with the board. If there is no designated beneficiary 1230
surviving at termination of benefits, the difference shall be 1231
payable under Section 25-11-117.1(1). 1232
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(6) Regardless of the number of years of creditable service, 1233
upon the application of a member or employer, any active member 1234
who becomes disabled as a direct result of a physical injury 1235
sustained from an accident or traumatic event caused by external 1236
violence or physical force occurring in the line of performance of 1237
duty, provided that the medical board or other designated 1238
governmental agency after a medical examination certifies that the 1239
member is mentally or physically incapacitated for the further 1240
performance of duty and the incapacity is likely to be permanent, 1241
may be retired by the board of trustees on the first of the month 1242
following the date of filing the application but in no event shall 1243
the retirement allowance begin before the termination of state 1244
service. If a member who has been approved for a retirement 1245
allowance under this subsection does not terminate state service 1246
within ninety (90) days after the approval, the retirement 1247
allowance and the application for the allowance shall be void. 1248
The retirement allowance shall equal the allowance on disability 1249
retirement as provided in Section 25-11-113 but shall not be less 1250
than fifty percent (50%) of average compensation. Line of duty 1251
disability benefits under this section shall be administered in 1252
accordance with the provisions of Section 25-11-113(1)(b), (c), 1253
(d), (e) and (f), (3), (4), (5) and (6). 1254
(7) For purposes of determining death or disability benefits 1255
under this section, the following shall apply: 1256
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(a) Death or permanent and total disability resulting 1257
from a cardiovascular, pulmonary or musculoskeletal condition that 1258
was not a direct result of a physical injury sustained from an 1259
accident or a traumatic event caused by external violence or 1260
physical force occurring in the performance of duty shall be 1261
deemed a natural death or an ordinary disability. 1262
(b) A mental disability based exclusively on employment 1263
duties occurring on an ongoing basis shall be deemed an ordinary 1264
disability. 1265
(8) If the deceased or disabled member has less than four 1266
(4) years of membership service, the average compensation as 1267
defined in Section 25-11-103 shall be the average of all annual 1268
earned compensation in state service for the purposes of benefits 1269
provided in this section. 1270
(9) In case of death or total and permanent disability under 1271
subsection (4) or subsection (6) of this section and before the 1272
board shall consider any application for a retirement allowance, 1273
the employer must certify to the board that the member's death or 1274
disability was a direct result of an accident or a traumatic event 1275
occurring during and as a result of the performance of the regular 1276
and assigned duties of the employee and that the death or 1277
disability was not the result of the willful negligence of the 1278
employee. 1279
(10) The application for the retirement allowance must be 1280
filed within one (1) year after death of an active member who is 1281
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killed in the line of performance of duty or dies as a direct 1282
result of an accident occurring in the line of performance of duty 1283
or traumatic event; but the board of trustees may consider an 1284
application for disability filed after the one-year period if it 1285
can be factually demonstrated to the satisfaction of the board of 1286
trustees that the disability is due to the accident and that the 1287
filing was not accomplished within the one-year period due to a 1288
delayed manifestation of the disability or to circumstances beyond 1289
the control of the member. However, in case of late filing, 1290
retroactive payments will be made for a period of not more than 1291
one (1) year only. 1292
(11) (a) Notwithstanding any other section of this article 1293
and in lieu of any payments to a designated beneficiary for a 1294
refund of contributions under Section 25-11-117, the spouse and/or 1295
children shall be eligible for the benefits payable under this 1296
section, and the spouse may elect, for both the spouse and/or 1297
children, to receive benefits in accordance with either 1298
subsections (2) and (3) or subsection (4) of this section; 1299
otherwise, the contributions to the credit of the deceased member 1300
shall be refunded in accordance with Section 25-11-117. 1301
(b) Notwithstanding any other section of this article, 1302
a spouse who is entitled to receive a monthly benefit under either 1303
subsection (2) or (4) of this section and who is also the named 1304
beneficiary for a refund of accumulated contributions in the 1305
member's annuity savings account, may, after the death of the 1306
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member, elect to receive a refund of accumulated contributions in 1307
lieu of a monthly allowance, provided that there are no dependent 1308
children entitled to benefits under subsection (3) of this 1309
section. 1310
(12) If the member has previously received benefits from the 1311
system to which he or she was not entitled and has not repaid in 1312
full all amounts payable by him or her to the system, the annuity 1313
amounts otherwise provided by this section shall be withheld and 1314
used to effect repayment until the total of the withholdings 1315
repays in full all amounts payable by him or her to the system. 1316
SECTION 6. Section 25-11-115, Mississippi Code of 1972, is 1317
amended as follows: 1318
25-11-115. (1) Upon application for superannuation or 1319
disability retirement, any member may elect to receive his or her 1320
benefit in a retirement allowance payable throughout life with no 1321
further payments to anyone at the member's death, except that if 1322
the member's total retirement payments under this article do not 1323
equal the member's total contributions under this article, the 1324
named beneficiary shall receive the difference in cash at the 1325
member's death. Or the member may elect upon retirement, or upon 1326
becoming eligible for retirement, to receive the actuarial 1327
equivalent subject to the provisions of subsection (3) of this 1328
section of his or her retirement allowance in a reduced retirement 1329
allowance payable throughout life with the provision that: 1330
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Option 1. If the retired member dies before he or she has 1331
received in annuity payment the value of the member's annuity 1332
savings account as it was at the time of the member's retirement, 1333
the balance shall be paid to the legal representative or to such 1334
person as the member has nominated by written designation duly 1335
acknowledged and filed with the board; 1336
Option 2. Upon the retired member's death, his or her 1337
reduced retirement allowance shall be continued throughout the 1338
life of, and paid to, such person as the member has nominated by 1339
written designation duly acknowledged and filed with the board of 1340
trustees at the time of his or her retirement; 1341
Option 3. Upon the retired member's death, one-half (1/2) of 1342
his or her reduced retirement allowance shall be continued 1343
throughout the life of, and paid to, such person as the member has 1344
nominated by written designation duly acknowledged and filed with 1345
the board of trustees at the time of his or her retirement, and 1346
the other one-half (1/2) of his or her reduced retirement 1347
allowance to some other designated beneficiary; 1348
Option 4. Upon the retired member's death, three-fourths 1349
(3/4) of his or her reduced retirement allowance, or such other 1350
specified amount, shall be continued throughout the life of, and 1351
paid to, such person as the member has nominated by written 1352
designation duly acknowledged and filed with the board of trustees 1353
at the time of his or her retirement; 1354
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Option 4-A. Upon the retired member's death, one-half (1/2) 1355
of his or her reduced retirement allowance, or such other 1356
specified amount, shall be continued throughout the life of, and 1357
paid to, such person as the member has nominated by written 1358
designation duly acknowledged and filed with the board of trustees 1359
at the time of his or her retirement; 1360
Option 4-B. A reduced retirement allowance shall be 1361
continued throughout the life of the retirant, but with the 1362
further guarantee of payments to the named beneficiary or 1363
beneficiaries for a specified number of years certain. If the 1364
retired member or the last designated beneficiary both die before 1365
receiving all guaranteed payments due, the actuarial equivalent of 1366
the remaining payments shall be paid to the successors of the 1367
retired member under Section 25-11-117.1(1); 1368
Option 6. Any member who became a member of the system 1369
before July 1, 2007, and who has at least twenty-eight (28) years 1370
of creditable service at the time of retirement or who is at least 1371
sixty-three (63) years of age and eligible to retire, may select 1372
the maximum retirement benefit or an optional benefit as provided 1373
in this subsection together with a partial lump-sum distribution. 1374
Any member who became a member of the system on or after July 1, 1375
2007, but before July 1, 2011, and who has at least twenty-eight 1376
(28) years of creditable service at the time of retirement may 1377
select the maximum retirement benefit or any optional benefit as 1378
provided in this subsection together with a partial lump-sum 1379
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distribution. Any member who became a member of the system on or 1380
after July 1, 2011, but before March 1, 2026, or any first 1381
responder who became a member of the system on or after March 1, 1382
2026, and who has at least thirty-three (33) years of creditable 1383
service at the time of retirement may select the maximum 1384
retirement benefit or any optional benefit as provided in this 1385
subsection together with a partial lump-sum distribution. Any 1386
member who became a member of the system on or after March 1, 1387
2026, except for a first responder who became a member of the 1388
system on or after March 1, 2026, shall not be eligible for a 1389
partial lump-sum distribution. The amount of the lump-sum 1390
distribution under this option shall be equal to the maximum 1391
monthly benefit multiplied by twelve (12), twenty-four (24) or 1392
thirty-six (36) as selected by the member. The maximum retirement 1393
benefit shall be actuarially reduced to reflect the amount of the 1394
lump-sum distribution selected and further reduced for any other 1395
optional benefit selected. The annuity and lump-sum distribution 1396
shall be computed to result in no actuarial loss to the system. 1397
The lump-sum distribution shall be made as a single payment 1398
payable at the time the first monthly annuity payment is paid to 1399
the retiree. The amount of the lump-sum distribution shall be 1400
deducted from the member's annuity savings account in computing 1401
what contributions remain at the death of the retiree and/or a 1402
beneficiary. The lump-sum distribution option may be elected only 1403
once by a member upon initial retirement, and may not be elected 1404
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by a retiree, by members applying for a disability retirement 1405
annuity, or by survivors. 1406
(2) No change in the option selected shall be permitted 1407
after the member's death or after the member has received his or 1408
her first retirement check except as provided in subsections (3) 1409
and (4) of this section and in Section 25-11-127. Members who are 1410
pursuing a disability retirement allowance and simultaneously or 1411
later elect to begin to receive a service retirement allowance 1412
while continuing to pursue a disability retirement allowance, 1413
shall not be eligible to select Option 6 and that option may not 1414
be selected at a later time if the application for a disability 1415
retirement allowance is voided or denied. However, any retired 1416
member who is receiving a retirement allowance under Option 2 or 1417
Option 4-A upon July 1, 1992, and whose designated beneficiary 1418
predeceased him or her or whose marriage to a spouse who is his or 1419
her designated beneficiary is terminated by divorce or other 1420
dissolution, upon written notification to the retirement system of 1421
the death of the designated beneficiary or of the termination of 1422
the retired member's marriage to the designated beneficiary, the 1423
retirement allowance payable to the member after receipt of that 1424
notification by the retirement system shall be equal to the 1425
retirement allowance that would have been payable if the member 1426
had not elected the option. In addition, any retired member who 1427
is receiving the maximum retirement allowance for life, a 1428
retirement allowance under Option 1 or who is receiving a 1429
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retirement allowance under Option 2 or Option 4-A on July 1, 1992, 1430
may elect to provide survivor benefits under Option 2 or Option 1431
4-A to a spouse who was not previously the member's beneficiary 1432
and whom the member married before July 1, 1992. 1433
(3) Any retired member who is receiving a reduced retirement 1434
allowance under Option 2, Option 4 or Option 4-A whose designated 1435
beneficiary predeceases him or her, or whose marriage to a spouse 1436
who is his or her designated beneficiary is terminated by divorce 1437
or other dissolution, may elect to cancel the reduced retirement 1438
allowance and receive the maximum retirement allowance for life in 1439
an amount equal to the amount that would have been payable if the 1440
member had not elected Option 2, Option 4 or Option 4-A. That 1441
election must be made in writing to the office of the executive 1442
director of the system on a form prescribed by the board. Any 1443
such election shall be effective the first of the month following 1444
the date the election is received by the system; however, the 1445
election may be applied retroactively for not more than three (3) 1446
months but no earlier than the first of the month following the 1447
date of the death of the beneficiary. 1448
(4) Any retired member who is receiving the maximum 1449
retirement allowance for life, or a retirement allowance under 1450
Option 1, and who marries after his or her retirement may elect to 1451
cancel the maximum retirement allowance and receive a reduced 1452
retirement allowance under Option 2, Option 4 or Option 4-A to 1453
provide continuing lifetime benefits to his or her spouse. That 1454
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election must be made in writing to the office of the executive 1455
director of the system on a form prescribed by the board not 1456
earlier than the date of the marriage and not later than one (1) 1457
year from the date of the marriage. Any such election shall be 1458
effective the first of the month following the date the election 1459
is received by the system. 1460
(5) (a) Except as otherwise provided in this subsection, if 1461
the election of an optional benefit is made after the member has 1462
attained the age of sixty-five (65) years, the actuarial 1463
equivalent factor shall be used to compute the reduced retirement 1464
allowance as if the election had been made on his or her 1465
sixty-fifth birthday; however, from and after January 1, 2003, if 1466
there is an election of Option 6 after the member has attained the 1467
age of sixty-five (65) years, the actuarial equivalent factor 1468
based on the retiree's age at the time of retirement shall be used 1469
to compute the reduced maximum monthly retirement allowance. 1470
However, if a retiree marries or remarries after retirement and 1471
elects either Option 2 or Option 4-A as provided in subsection (2) 1472
or (4) of this section, the actuarial equivalent factor used to 1473
compute the reduced retirement allowance shall be the factor for 1474
the age of the retiree and his or her beneficiary at the time such 1475
election for recalculation of benefits is made. 1476
(b) For members who retire on or after July 1, 2012, 1477
the actuarial equivalent factor used to compute the reduced 1478
retirement allowance at retirement or upon any subsequent 1479
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recalculation of the benefit shall be the factor for the age of 1480
the retiree and his or her beneficiary at the time of retirement 1481
or at the time an election for recalculation of benefits is made. 1482
(6) Notwithstanding any provision of Section 25-11-1 et 1483
seq., no payments may be made for a retirement allowance on a 1484
monthly basis for a period of time in excess of that allowed by 1485
federal law. 1486
(7) If a retirant and his or her eligible beneficiary, if 1487
any, both die before they have received in annuity payments a 1488
total amount equal to the accumulated contributions standing to 1489
the retirant's credit in the annuity savings account at the time 1490
of his or her retirement, the difference between the accumulated 1491
contributions and the total amount of annuities received by them 1492
shall be paid to such persons as the retirant has nominated by 1493
written designation duly executed and filed in the office of the 1494
executive director. If no designated person survives the retirant 1495
and his or her beneficiary, the difference, if any, shall be paid 1496
under Section 25-11-117.1(1). 1497
(8) Any retired member who retired on Option 2(5) or 4-A(5) 1498
before July 1, 1992, who is still receiving a retirement allowance 1499
on July 1, 1994, shall receive an increase in the annual 1500
retirement allowance effective July 1, 1994, equal to the amount 1501
they would have received under Option 2 or Option 4-A without a 1502
reduction for Option 5 based on the ages at retirement of the 1503
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retiree and beneficiary and option factors in effect on July 1, 1504
1992. That increase shall be prospective only. 1505
SECTION 7. Section 25-11-117, Mississippi Code of 1972, is 1506
amended as follows: 1507
25-11-117. (1) A member may be paid a refund of the amount 1508
of accumulated contributions to the credit of the member in the 1509
annuity savings account, provided that the member has withdrawn 1510
from state service and has not returned to state service on the 1511
date the refund of the accumulated contributions would be paid. 1512
That refund of the contributions to the credit of the member in 1513
the annuity savings account shall be paid within ninety (90) days 1514
from receipt in the office of the retirement system of the 1515
properly completed form requesting the payment. In the event of 1516
death before retirement of any member whose spouse and/or children 1517
are not entitled to a retirement allowance, the accumulated 1518
contributions to the credit of the deceased member in the annuity 1519
savings account shall be paid to the designated beneficiary on 1520
file in writing in the office of the executive director of the 1521
board of trustees within ninety (90) days from receipt of a 1522
properly completed form requesting the payment. If there is no 1523
such designated beneficiary on file for the deceased member in the 1524
office of the system, upon the filing of a proper request with the 1525
board, the contributions to the credit of the deceased member in 1526
the annuity savings account shall be refunded under Section 1527
25-11-117.1(1). The payment of the refund shall discharge all 1528
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obligations of the retirement system to the member on account of 1529
any creditable service rendered by the member before the receipt 1530
of the refund. By the acceptance of the refund, the member shall 1531
waive and relinquish all accrued rights in the system. 1532
(2) Under the Unemployment Compensation Amendments of 1992 1533
(Public Law 102-318 (UCA)), a member or the spouse of a member who 1534
is an eligible beneficiary entitled to a refund under this section 1535
may elect, on a form prescribed by the board under rules and 1536
regulations established by the board, to have an eligible rollover 1537
distribution of accumulated contributions payable under this 1538
section paid directly to an eligible retirement plan, as defined 1539
under applicable federal law, or an individual retirement account. 1540
If the member or the spouse of a member who is an eligible 1541
beneficiary makes that election and specifies the eligible 1542
retirement plan or individual retirement account to which the 1543
distribution is to be paid, the distribution will be made in the 1544
form of a direct trustee-to-trustee transfer to the specified 1545
eligible retirement plan. A nonspouse beneficiary may elect to 1546
have an eligible rollover distribution paid in the form of a 1547
direct trustee-to-trustee transfer to an individual retirement 1548
account established to receive the distribution on behalf of the 1549
nonspouse beneficiary. Flexible rollovers under this subsection 1550
shall not be considered assignments under Section 25-11-129. 1551
(3) (a) If any person who has received a refund, reenters 1552
the state service and again becomes a member of the system before 1553
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July 1, 2007, the member may repay all or part of the amounts 1554
previously received as a refund, together with regular interest 1555
covering the period from the date of refund to the date of 1556
repayment; however, the amounts that are repaid by the member and 1557
the creditable service related thereto shall not be used in any 1558
benefit calculation or determination until the member has remained 1559
a contributor to the system for a period of at least four (4) 1560
years after the member's reentry into state service. Repayment 1561
for that time shall be made beginning with the most recent service 1562
for which refund has been made. Upon the repayment of all or part 1563
of that refund and interest, the member shall again receive credit 1564
for the period of creditable service for which full repayment has 1565
been made to the system. 1566
(b) If any person who has received a refund, reenters 1567
the state service and again becomes a member of the system on or 1568
after July 1, 2007, but before March 1, 2026, or if any first 1569
responder who became a member of the system on or after March 1, 1570
2026, has received a refund, reenters the state service and again 1571
becomes a member of the system, the member may repay all or part 1572
of the amounts previously received as a refund, together with 1573
regular interest covering the period from the date of refund to 1574
the date of repayment; however, the amounts that are repaid by the 1575
member and the creditable service related thereto shall not be 1576
used in any benefit calculation or determination until the member 1577
has remained a contributor to the system for a period of at least 1578
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eight (8) years after the member's reentry into state service. 1579
Repayment for that time shall be made beginning with the most 1580
recent service for which refund has been made. Upon the repayment 1581
of all or part of that refund and interest, the member shall again 1582
receive credit for the period of creditable service for which full 1583
repayment has been made to the system. 1584
(c) If any person who has received a refund reenters 1585
state service and again becomes a member of the system on or after 1586
March 1, 2026, except for a first responder who became a member of 1587
the system on or after March 1, 2026, the member shall not be 1588
eligible to repay any portion of amounts previously received as a 1589
refund and may not receive creditable service for service rendered 1590
before March 1, 2026. 1591
(4) (a) In order to provide a source of income to members 1592
who have applied for disability benefits under Section 25-11-113 1593
or 25-11-114, the board may provide, at the employee's election, a 1594
temporary benefit to be paid from the member's accumulated 1595
contributions, if any, without forfeiting the right to pursue 1596
disability benefits, provided that the member has exhausted all 1597
personal and medical leave and has terminated his or her 1598
employment. The board may prescribe rules and regulations for 1599
carrying out the provisions of this subsection (4). 1600
(b) If a member who has elected to receive temporary 1601
benefits under this subsection later applies for a refund of his 1602
or her accumulated contributions, all amounts paid under this 1603
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subsection shall be deducted from the accumulated contributions 1604
and the balance will be paid to the member. If a member who has 1605
elected to receive temporary benefits under this subsection is 1606
later approved for a disability retirement allowance, and a 1607
service retirement allowance or survivor benefits are paid on the 1608
account, the board shall adjust the benefits in such a manner that 1609
no more than the actuarial equivalent of the benefits to which the 1610
member or beneficiary was or is entitled shall be paid. 1611
(c) The board may study, develop and propose a 1612
disability benefit structure, including short- and long-term 1613
disability benefits, provided that it is the actuarial equivalent 1614
of the benefits currently provided in Section 25-11-113 or 1615
25-11-114. 1616
SECTION 8. Section 25-11-123, Mississippi Code of 1972, is 1617
amended as follows: 1618
25-11-123. All of the assets of the system shall be credited 1619
according to the purpose for which they are held to one (1) of 1620
four (4) reserves; namely, the annuity savings account, the 1621
annuity reserve, the employer's accumulation account, and the 1622
expense account; however, any employee who became a member of the 1623
system on or after March 1, 2026, except for a first responder who 1624
became a member of the system on or after March 1, 2026, shall 1625
also have a defined contribution plan administered by the system, 1626
as provided in Section 25-11-147. 1627
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(a) Annuity savings account. In the annuity savings 1628
account shall be accumulated the contributions made by members to 1629
provide for their annuities, including interest thereon which 1630
shall be posted monthly. Credits to and charges against the 1631
annuity savings account shall be made as follows: 1632
(1) Beginning July 1, 2010, except as otherwise 1633
provided in Section 25-11-126, the employer shall cause to be 1634
deducted from the salary of each member on each and every payroll 1635
of the employer for each and every payroll period nine percent 1636
(9%) of earned compensation as defined in Section 25-11-103; 1637
however, for any employee who became a member of the system on or 1638
after March 1, 2026, except for a first responder who became a 1639
member of the system on or after March 1, 2026, only four percent 1640
(4%) of such earned compensation shall be deposited into the 1641
annuity savings account, with the remaining five percent (5%), to 1642
be deposited into the employee's defined contribution account 1643
authorized in Section 25-11-147. Future contributions shall be 1644
fixed biennially by the board on the basis of the liabilities of 1645
the retirement system for the various allowances and benefits as 1646
shown by actuarial valuation; however, any member earning at a 1647
rate less than Sixteen Dollars and Sixty-seven Cents ($16.67) per 1648
month, or Two Hundred Dollars ($200.00) per year, shall contribute 1649
not less than One Dollar ($1.00) per month, or Twelve Dollars 1650
($12.00) per year. 1651
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(2) The deductions provided in paragraph (1) of 1652
this subsection shall be made notwithstanding that the minimum 1653
compensation provided by law for any member is reduced by the 1654
deduction. Every member shall be deemed to consent and agree to 1655
the deductions made and provided for in paragraph (1) of this 1656
subsection and shall receipt for his or her full salary or 1657
compensation, and payment of salary or compensation less the 1658
deduction shall be a full and complete discharge and acquittance 1659
of all claims and demands whatsoever for the services rendered by 1660
the person during the period covered by the payment, except as to 1661
the benefits provided under Articles 1 and 3. The board shall 1662
provide by rules for the methods of collection of contributions 1663
from members and the employer. The board shall have full 1664
authority to require the production of evidence necessary to 1665
verify the correctness of amounts contributed. 1666
(b) Annuity reserve. The annuity reserve shall be the 1667
account representing the actuarial value of all annuities in 1668
force, and to it shall be charged all annuities and all benefits 1669
in lieu of annuities, payable as provided in this article. If a 1670
beneficiary retired on account of disability is restored to active 1671
service with a compensation not less than his or her average final 1672
compensation at the time of his or her last retirement, the 1673
remainder of his or her contributions shall be transferred from 1674
the annuity reserve to the annuity savings account and credited to 1675
his or her individual account therein, and the balance of his or 1676
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her annuity reserve shall be transferred to the employer's 1677
accumulation account. 1678
(c) Employer's accumulation account. The employer's 1679
accumulation account shall represent the accumulation of all 1680
reserves for the payment of all retirement allowances and other 1681
benefits payable from contributions made by the employer, and 1682
against this account shall be charged all retirement allowances 1683
and other benefits on account of members. Credits to and charges 1684
against the employer's accumulation account shall be made as 1685
follows: 1686
(1) On account of each member who became a member 1687
of the system before March 1, 2026, and each first responder who 1688
became a member of the system on or after March 1, 2026, there 1689
shall be paid monthly into the employer's accumulation account by 1690
the employers for the preceding fiscal year an amount equal to a 1691
certain percentage of the total earned compensation, as defined in 1692
Section 25-11-103, of each member. From and after May 9, 2024, 1693
the increase in the employer's contribution rate scheduled to take 1694
effect on July 1, 2024, is rescinded and shall not take effect; 1695
however, on July 1 of each year from 2024 through 2028, the 1696
employer's contribution rate shall be increased by one-half 1697
percent (1/2%). For each member who became a member of the system 1698
on or after March 1, 2026, except for a first responder who became 1699
a member of the system on or after March 1, 2026, and except as 1700
provided in Section 25-11-147, the employer's monthly payment 1701
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under this paragraph (1) shall be applied to the accrued liability 1702
contribution fund. 1703
(2) For the public good, any recommendation by the 1704
board to adjust the employer contributions may be accompanied by 1705
at least two (2) assessments from actuaries who are independent 1706
from each other and the retirement plan. The actuaries shall 1707
analyze the economic impact of any such recommendation to the 1708
system and state, including, but not limited to, information 1709
showing the fiscal impact to every agency and arm of the state, 1710
including, but not limited to, state agencies, cities, counties 1711
and school districts. The actuarial assessments, with any such 1712
recommendation to adjust the employer contributions, shall be 1713
submitted to the Lieutenant Governor, Speaker of the House, 1714
Chairman of the Senate Appropriations Committee and Chairman of 1715
the House Appropriations Committee. 1716
(3) The board shall have the authority to make 1717
recommendations regarding additional funding sources for the 1718
retirement plan, including employer contribution increases, based 1719
on the assets and liabilities of the retirement plan, and the 1720
analyses required by paragraph (2) of this subsection (c). The 1721
Legislature shall have the sole authority to implement any such 1722
recommendations. It is the intent of the Legislature that, in the 1723
2025 Regular Session, a law be enacted to create a new tier for 1724
future members of the system, in furtherance of the system's 1725
continued financial stability and sustainability. 1726
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(4) This section shall not be construed to provide 1727
authority to reduce or eliminate any earned benefits to be 1728
provided by the state to persons who, before July 1, 2025, are 1729
drawing a retirement allowance or are members of the system. 1730
(5) On the basis of regular interest and of such 1731
mortality and other tables as are adopted by the board of 1732
trustees, the actuary engaged by the board to make each valuation 1733
required by this article during the period over which the accrued 1734
liability contribution is payable, immediately after making that 1735
valuation, shall determine the uniform and constant percentage of 1736
the earnable compensation of each member which, if contributed by 1737
the employer on the basis of compensation of the member throughout 1738
his or her entire period of membership service, would be 1739
sufficient to provide for the payment of any retirement allowance 1740
payable on his or her account for that service. The percentage 1741
rate so determined shall be known as the "normal contribution 1742
rate." After the accrued liability contribution has ceased to be 1743
payable, the normal contribution rate shall be the percentage rate 1744
of the salary of all members obtained by deducting from the total 1745
liabilities on account of membership service the amount in the 1746
employer's accumulation account, and dividing the remainder by one 1747
percent (1%) of the present value of the prospective future 1748
salaries of all members as computed on the basis of the mortality 1749
and service tables adopted by the board of trustees and regular 1750
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interest. The normal rate of contributions shall be determined by 1751
the actuary after each valuation. 1752
(6) The total amount payable in each year to the 1753
employer's accumulation account shall not be less than the sum of 1754
the percentage rate known as the "normal contribution rate" and 1755
the "accrued liability contribution rate" of the total 1756
compensation earnable by all members during the preceding year, 1757
provided that the payment by the employer shall be sufficient, 1758
when combined with the amounts in the account, to provide the 1759
allowances and other benefits chargeable to this account during 1760
the year then current. 1761
(7) The accrued liability contribution shall be 1762
discontinued as soon as the accumulated balance in the employer's 1763
accumulation account shall equal the present value, computed on 1764
the basis of the normal contribution rate then in force, or the 1765
prospective normal contributions to be received on account of all 1766
persons who are at that time members. 1767
(8) All allowances and benefits in lieu thereof, 1768
with the exception of those payable on account of members who 1769
receive no prior service credit, payable from contributions of the 1770
employer, shall be paid from the employer's accumulation account. 1771
(9) Upon the retirement of a member, an amount 1772
equal to his or her retirement allowance shall be transferred from 1773
the employer's accumulation account to the annuity reserve. 1774
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(10) The employer's accumulation account shall be 1775
credited with any assets authorized by law to be credited to the 1776
account. 1777
(d) Expense account. The expense account shall be the 1778
account to which the expenses of the administration of the system 1779
shall be charged, exclusive of amounts payable as retirement 1780
allowances and as other benefits provided herein. The Legislature 1781
shall make annual appropriations in amounts sufficient to 1782
administer the system, which shall be credited to this account. 1783
There shall be transferred to the State Treasury from this 1784
account, not less than once per month, an amount sufficient for 1785
payment of the estimated expenses of the system for the succeeding 1786
thirty (30) days. Any interest earned on the expense account 1787
shall accrue to the benefit of the system. However, 1788
notwithstanding the provisions of Sections 25-11-15(10) and 1789
25-11-105(f)(v)5, all expenses of the administration of the system 1790
shall be paid from the interest earnings, provided the interest 1791
earnings are in excess of the actuarial interest assumption as 1792
determined by the board, and provided the present cost of the 1793
administrative expense fee of two percent (2%) of the 1794
contributions reported by the political subdivisions and 1795
instrumentalities shall be reduced to one percent (1%) from and 1796
after July 1, 1983, through June 30, 1984, and shall be eliminated 1797
thereafter. 1798
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(e) Collection of contributions. The employer shall 1799
cause to be deducted on each and every payroll of a member for 1800
each and every payroll period, beginning subsequent to January 31, 1801
1953, the contributions payable by the member as provided in 1802
Articles 1 and 3. 1803
The employer shall make deductions from salaries of employees 1804
as provided in Articles 1 and 3 and shall transmit monthly, or at 1805
such time as the board of trustees designates, the amount 1806
specified to be deducted to the Executive Director of the Public 1807
Employees' Retirement System. The executive director, after 1808
making a record of all those receipts, shall deposit such amounts 1809
as provided by law. 1810
(f) (1) The sum of the normal contribution rate and 1811
the accrued liability contribution rate shall be known as the 1812
"employer's contribution rate." 1813
(2) The amount payable by the employer on account 1814
of normal and accrued liability contributions shall be determined 1815
by applying the employer's contribution rate to the amount of 1816
compensation earned by employees who are members of the system. 1817
Monthly, or at such time as the board of trustees designates, each 1818
department or agency shall compute the amount of the employer's 1819
contribution payable, with respect to the salaries of its 1820
employees who are members of the system, and shall cause that 1821
amount to be paid to the board of trustees from the personal 1822
service allotment of the amount appropriated for the operation of 1823
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the department or agency, or from funds otherwise available to the 1824
agency, for the payment of salaries to its employees. 1825
(3) Except as otherwise provided in Section 1826
25-11-106: 1827
(i) Constables shall pay employer and 1828
employee contributions on their net fee income as well as the 1829
employee contributions on all direct treasury or county payroll 1830
income. 1831
(ii) The county shall be responsible for the 1832
employer contribution on all direct treasury or county payroll 1833
income of constables. 1834
(4) Except as otherwise provided in Section 1835
25-11-106.1, chancery and circuit clerks shall be responsible for 1836
both the employer and employee share of contributions on the 1837
proportionate share of net income attributable to fees, as well as 1838
the employee share of net income attributable to direct treasury 1839
or county payroll income, and the employing county shall be 1840
responsible for the employer contributions on the net income 1841
attributable to direct treasury or county payroll income. 1842
(5) Once each year, under procedures established 1843
by the system, each employer shall submit to the Public Employees' 1844
Retirement System a copy of their report to Social Security of all 1845
employees' earnings. 1846
(6) The board shall provide by rules for the 1847
methods of collection of contributions of employers and members. 1848
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The amounts determined due by an agency to the various funds as 1849
specified in Articles 1 and 3 are made obligations of the agency 1850
to the board and shall be paid as provided herein. Failure to 1851
deduct those contributions shall not relieve the employee and 1852
employer from liability thereof. Delinquent employee 1853
contributions and any accrued interest shall be the obligation of 1854
the employee and delinquent employer contributions and any accrued 1855
interest shall be the obligation of the employer. The employer 1856
may, in its discretion, elect to pay any or all of the interest on 1857
delinquent employee contributions. From and after July 1, 1996, 1858
under rules and regulations established by the board, all 1859
employers are authorized and shall transfer all funds due to the 1860
Public Employees' Retirement System electronically and shall 1861
transmit any wage or other reports by computerized reporting 1862
systems. 1863
SECTION 9. Section 25-11-147, Mississippi Code of 1972, is 1864
amended as follows: 1865
25-11-147. (1) Each person becoming a member of the system 1866
on or after March 1, 2026, except for a first responder who became 1867
a member of the system on or after March 1, 2026, shall have, in 1868
addition to the defined benefit plan under this article, a defined 1869
contribution plan meeting the requirements of Section 401(a) of 1870
the Internal Revenue Code. A portion of the employee's 1871
contributions shall be deposited into the employee's defined 1872
contribution account, as provided in Section 25-11-123, and in 1873
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addition, the employer may elect to contribute an amount up to the 1874
maximum pretax amount allowable under federal law for plans under 1875
Section 401(a) of the Internal Revenue Code. Members shall be 1876
vested immediately in the defined contribution plan. 1877
(2) (a) Pursuant to Section 401(a) of the Internal Revenue 1878
Code, the board may establish a defined contribution, qualified 1879
plan under which a portion of the employee's mandatory 1880
contributions shall be deposited and which meets all requirements 1881
under federal and state law. To the extent state law conflicts 1882
with federal law, federal law shall govern the plan document to 1883
maintain the federal tax qualified status. The board, in its 1884
fiduciary capacity, may seek approval from the Internal Revenue 1885
Service. 1886
(b) The administration of the defined contribution plan 1887
shall be under the direction of the system. The defined 1888
contribution plan shall be operated in accordance with the 1889
guidelines established by the Internal Revenue Service for Section 1890
401(a) plans as reflected in the plan document, as may be modified 1891
from time to time by the board of trustees, and including optional 1892
variable employer contributions and a process for hardship 1893
withdrawals by members. Payroll reductions shall be made, in each 1894
instance, by the appropriate payroll officer. The administrator 1895
of the defined contribution plan may contract with a private 1896
corporation or institution for providing consolidated billing and 1897
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ST: PERS; first responders hired after 3-1-26
may receive retirement allowance after 25 years
of service.
other administrative services if deemed necessary by the 1898
administrator. 1899
(c) The board of trustees may assess the employer an 1900
amount, out of the employer's contribution rate under Section 1901
25-11-123, up to two-tenths percent (0.2%) of the participant's 1902
total earned compensation as defined in Section 25-11-103 to 1903
provide for the administrative expenses of operating the defined 1904
contribution plan, including, but not limited to, the services of 1905
auditors, consultants, money managers and third-party 1906
administrators. 1907
(3) Each participating member shall direct the investment of 1908
the individual's accumulated employer and employee contributions 1909
and earnings to one or more investment choices within available 1910
categories of investment provided by the board. The board shall 1911
provide an investment menu of investment options. In establishing 1912
the investment options, the board shall: 1913
(a) Include predetermined investment portfolio options 1914
constructed to reflect different risk profiles that automatically 1915
reallocate and rebalance contributions as a participating member 1916
ages; and 1917
(b) Allow a participating member to construct an 1918
investment portfolio using some or all of the investment options. 1919
SECTION 10. This act shall take effect and be in force from 1920
and after March 1, 2026. 1921