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

By: Representative Zuber

HOUSE BILL NO. 1103

AN ACT TO BRING FORWARD SECTIONS 25-11-15, 25-11-101, 1
25-11-103, 25-11-105, 25-11-109, 25-11-111, 25-11-112, 25-11-113, 2
25-11-114, 25-11-115, 25-11-117, 25-11-117.1, 25-11-119, 3
25-11-120, 25-11-121, 25-11-123, 25-11-126, 25-11-127, 25-11-133 4
AND 25-11-147, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE 5
PUBLIC EMPLOYEES' RETIREMENT SYSTEM, FOR THE PURPOSE OF POSSIBLE 6
AMENDMENT; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 25-11-15, Mississippi Code of 1972, is 9
brought forward as follows: 10
25-11-15. (1) Board of trustees: The general 11
administration and responsibility for the proper operation of the 12
Public Employees' Retirement System and the federal-state 13
agreement and for making effective the provisions of Articles 1 14
and 3 are vested in a board of trustees. 15
(2) The board shall consist of ten (10) trustees, as 16
follows: 17
(a) The State Treasurer; 18
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(b) One (1) member who shall be appointed by the 19
Governor for a term of four (4) years, who shall be a member of 20
the system; 21
(c) Two (2) members of the system having at least ten 22
(10) years of creditable service who are state employees who are 23
not employees of the state institutions of higher learning, who 24
shall be elected by members of the system who are employees of 25
state agencies and by members of the Mississippi Highway Safety 26
Patrol Retirement System, but not by employees of the state 27
institutions of higher learning; 28
(d) Two (2) members of the system having at least ten 29
(10) years of creditable service who do not hold office in the 30
legislative or judicial departments of municipal or county 31
government, one (1) of whom shall be an employee of a 32
municipality, instrumentality or juristic entity thereof, who 33
shall be elected by members of the system who are employees of the 34
municipalities, instrumentalities or juristic entities thereof and 35
by members of the municipal systems and the firemen's and 36
policemen's disability and relief funds administered by the board 37
of trustees, and one (1) of whom shall be an employee of a county, 38
instrumentality or juristic entity thereof, who shall be elected 39
by members of the system who are employees of the counties, 40
instrumentalities or juristic entities thereof; 41
(e) One (1) member of the system having at least ten 42
(10) years of creditable service who is an employee of a state 43
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institution of higher learning, who shall be elected by members of 44
the system who are employees of the state institutions of higher 45
learning as included in Section 37-101-1. Any member of the board 46
on July 1, 1984, who is an employee of an institution of higher 47
learning shall serve as the member trustee representing the 48
institutions of higher learning until the end of the term for 49
which he or she was elected; 50
(f) Two (2) retired members who are receiving a 51
retirement allowance from the system, who shall be elected by the 52
retired members or beneficiaries receiving a retirement allowance 53
from the system and by the retired members or beneficiaries of the 54
municipal systems, the firemen's and policemen's disability and 55
relief funds and the Mississippi Highway Safety Patrol Retirement 56
System administered by the board of trustees, to serve for a term 57
of six (6) years under rules and regulations adopted by the board 58
to govern that election; however, any retired member of the board 59
in office on April 19, 1993, shall serve as a retired trustee 60
until the end of the term for which he or she was elected; 61
(g) One (1) member of the system having at least ten 62
(10) years of creditable service who is an employee of any public 63
school district or junior college or community college district 64
that participates in the system, who shall be elected by the 65
members of the system who are employees of any public school 66
district or junior college or community college district; however, 67
any member of the board on June 30, 1989, who is a certified 68
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classroom teacher shall serve as the member representing a 69
classroom teacher until the end of the term for which the member 70
was appointed; 71
(h) In the first election to be held for trustees one 72
(1) member shall be elected for a term of two (2) years, and one 73
(1) member for a term of four (4) years, and one (1) member for a 74
term of six (6) years. Thereafter, their successors shall be 75
elected for terms of six (6) years. All elections shall be held 76
in accordance with rules and regulations adopted by the board to 77
govern those elections and the board shall be the sole judge of 78
all questions arising incident to or connected with the elections. 79
(i) Any person eligible to vote for the election of a 80
member of the board of trustees and who meets the qualifications 81
for the office may seek election to the office and serve if 82
elected. For purposes of determining eligibility to seek office 83
as a member of the board of trustees, the required creditable 84
service in "the system" shall include each system administered by 85
the board of trustees in which the person is a member. 86
The members described above and serving on the board on June 87
30, 1989, shall continue to serve on the board until the 88
expiration of their terms. 89
(3) If a vacancy occurs in the office of a trustee, the 90
vacancy shall be filled for the unexpired term in the same manner 91
as the office was previously filled. However, if the unexpired 92
term is six (6) months or less, an election shall be held to fill 93
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the office vacated for the next succeeding full term of office, 94
and the person so elected to fill the next full term shall be 95
appointed by the board to fill the remainder of the unexpired 96
term. Whenever any member who is elected to a position to 97
represent a class of members ceases to be a member of that class, 98
that board member is no longer eligible for membership on the 99
board. The position shall be declared vacant, and the unexpired 100
term shall be filled in the same manner as the office was 101
previously filled. 102
(4) Each trustee shall, within ten (10) days after his or 103
her appointment or election, take an oath of office as provided by 104
law and, in addition, shall take an oath that he or she will 105
diligently and honestly administer the affairs of the board, and 106
that he or she will not knowingly violate or willingly permit to 107
be violated any of the provisions of law applicable to Articles 1 108
and 3. The oath shall be signed by the member making it, 109
certified by the officer before whom it is taken, and immediately 110
filed in the office of the Secretary of State. 111
(5) Each trustee shall be entitled to one (1) vote. Six (6) 112
members shall constitute a quorum at any meeting of the board, and 113
a majority of those present shall be necessary for a decision. 114
(6) Subject to the limitations of Articles 1 and 3, the 115
board shall establish rules and regulations for the administration 116
of the system created by those articles and for the transaction of 117
its business, and to give force and effect to the provisions of 118
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those articles wherever necessary to carry out the intent and 119
purposes of the Legislature. The cited articles are remedial law 120
and shall be liberally construed to accomplish their purposes. 121
(7) Notwithstanding any other law to the contrary, in the 122
event of a natural disaster or other occurrence that results in 123
the failure of the retirement system's computer system or a 124
significant disruption of the normal activities of the retirement 125
system, the executive director of the board, or his or her deputy, 126
shall be authorized to contract with another entity, governmental 127
or private, during the period of the failure or disruption, for 128
services, commodities, work space and supplies as necessary to 129
carry out the administration of all systems and programs 130
administered by the board. The board shall be authorized to pay 131
the reasonable cost of those services, commodities, work space and 132
supplies. At the meeting of the board next following the 133
execution of a contract authorized under this subsection, 134
documentation of the contract, including a description of the 135
services, commodities, work space or supplies, the price thereof 136
and the nature of the disaster or occurrence, shall be presented 137
to the board and placed on the minutes of the board. Because of 138
their emergency nature, purchases made under this subsection shall 139
not be required to comply with the provisions of Section 31-7-13 140
or any other law governing public purchases. 141
(8) The computer equipment and software owned by the Public 142
Employees' Retirement System are assets of the Trust Fund by 143
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virtue of the Constitution, Section 272-A and acquisition and 144
operation thereof shall be under the jurisdiction of the Public 145
Employees' Retirement System. 146
(9) The board shall elect a chairman and shall by a majority 147
vote of all of its members appoint a secretary whose title shall 148
be executive director, who shall serve at the will and pleasure of 149
the board, who shall not be a member of the board of trustees, who 150
shall be entitled to membership in the system, and who shall act 151
as secretary of the board. The board of trustees shall employ 152
such actuarial, clerical and other employees as are required to 153
transact the business of the system, and shall fix the 154
compensation of all employees, subject to the rules and 155
regulations of the State Personnel Board. 156
(10) Each member of the board shall receive as compensation 157
for his or her services Three Hundred Dollars ($300.00) per month. 158
All members of the board shall be reimbursed for their necessary 159
traveling expenses, which shall be paid in accordance with the 160
requirements of Section 25-3-41 or other applicable statutes with 161
respect to traveling expenses of state officials and employees on 162
official business. All members of the board shall be entitled to 163
be members of the system and shall be entitled to creditable 164
service for all time served as a member of the board, except for 165
the retired members, who shall not be entitled to be a member of 166
the system and who shall be eligible to receive the retirement 167
allowance and compensation for services from the system while 168
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serving as a member of the board. Members of the board who are 169
employed in state service (as defined in Section 25-11-103) shall 170
not be required to take annual leave from their state service 171
employment while performing his or her official duties as a member 172
of the board. 173
(11) All expenses of the board incurred in the 174
administration of Articles 1 and 3 shall be paid from such funds 175
as may be appropriated by the Legislature for that purpose or from 176
administrative fees collected from political subdivisions or 177
juristic entities of the state. Each political subdivision of the 178
state and each instrumentality of the state or of a political 179
subdivision or subdivisions that submit a plan for approval by the 180
board as provided in Section 25-11-11 shall reimburse the board, 181
for coverage into the administrative expense fund, its pro rata 182
share of the total expense of administering Articles 1 and 3 as 183
provided by regulations of the board. 184
(12) The Lieutenant Governor may designate two (2) Senators 185
and the Speaker of the House of Representatives may designate two 186
(2) Representatives to attend any meeting of the Board of Trustees 187
of the Public Employees' Retirement System. The appointing 188
authorities may designate alternate members from their respective 189
houses to serve when the regular designees are unable to attend 190
the meetings of the board. The legislative designees shall have 191
no jurisdiction or vote on any matter within the jurisdiction of 192
the board. For attending meetings of the board, the legislators 193
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shall receive per diem and expenses, which shall be paid from the 194
contingent expense funds of their respective houses in the same 195
amounts as provided for committee meetings when the Legislature is 196
not in session; however, no per diem and expenses for attending 197
meetings of the board will be paid while the Legislature is in 198
session. No per diem and expenses will be paid except for 199
attending meetings of the board without prior approval of the 200
proper committee in their respective houses. 201
SECTION 2. Section 25-11-101, Mississippi Code of 1972, is 202
brought forward as follows: 203
25-11-101. A retirement system is hereby established and 204
placed under the management of the board of trustees for the 205
purpose of providing retirement allowances and other benefits 206
under the provisions of this article for officers and employees in 207
the state service and their beneficiaries. The retirement system 208
provided by this article shall go into operation as of the first 209
day of the month following the effective date thereof, when 210
contributions by members shall begin and benefits shall become 211
payable. 212
This system shall be an agency of the State of Mississippi 213
having all the powers and privileges of a public corporation and 214
shall be known as the "Public Employees' Retirement System of 215
Mississippi." By such name all of its business shall be 216
transacted, all of its funds invested, and all of its cash and 217
securities and other property held; but in ordinary correspondence 218
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the word "system" may be used instead of the full title. After 219
appropriation for administrative expenses and after payment of 220
investment management fees and costs, all funds of the system 221
shall be held in trust in the custody of the board of trustees as 222
funds of the beneficiaries of the trust. The Joint Legislative 223
Committee on Performance Evaluation and Expenditure Review is 224
hereby authorized and directed to have performed random actuarial 225
evaluations, as necessary, of the funds and expenses of the Public 226
Employees' Retirement System and to make annual reports to the 227
Legislature on the financial soundness of the system. 228
SECTION 3. Section 25-11-103, Mississippi Code of 1972, is 229
brought forward as follows: 230
25-11-103. (1) The following words and phrases as used in 231
Articles 1 and 3, unless a different meaning is plainly required 232
by the context, have the following meanings: 233
(a) "Accumulated contributions" means the sum of all 234
the amounts deducted from the compensation of a member and 235
credited to his or her individual account in the annuity savings 236
account, together with regular interest as provided in Section 237
25-11-123. 238
(b) "Actuarial cost" means the amount of funds 239
presently required to provide future benefits as determined by the 240
board based on applicable tables and formulas provided by the 241
actuary. 242
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(c) "Actuarial equivalent" means a benefit of equal 243
value to the accumulated contributions, annuity or benefit, as the 244
case may be, when computed upon the basis of such mortality tables 245
as adopted by the board of trustees, and regular interest. 246
(d) "Actuarial tables" mean such tables of mortality 247
and rates of interest as adopted by the board in accordance with 248
the recommendation of the actuary. 249
(e) "Agency" means any governmental body employing 250
persons in the state service. 251
(f) "Average compensation" means, for persons who 252
became members of the system before March 1, 2026, the average of 253
the four (4) highest years of earned compensation reported for an 254
employee in a fiscal or calendar year period, or combination 255
thereof that do not overlap, or the last forty-eight (48) 256
consecutive months of earned compensation reported for an 257
employee. The four (4) years need not be successive or joined 258
years of service. "Average compensation" means, for persons who 259
became members of the system on or after March 1, 2026, the 260
average of the eight (8) highest consecutive years of earned 261
compensation reported for an employee in a fiscal or calendar year 262
period, or of the last ninety-six (96) consecutive months of 263
earned compensation reported for an employee, whichever is 264
greater. 265
In computing the average compensation for retirement, 266
disability or survivor benefits, any amount lawfully paid in a 267
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lump sum for personal leave or major medical leave shall be 268
included in the calculation to the extent that the amount does not 269
exceed an amount that is equal to thirty (30) days of earned 270
compensation and to the extent that it does not cause the 271
employee's earned compensation to exceed the maximum reportable 272
amount specified in paragraph (k) of this subsection; however, 273
this thirty-day limitation shall not prevent the inclusion in the 274
calculation of leave earned under federal regulations before July 275
1, 1976, and frozen as of that date as referred to in Section 276
25-3-99. In computing the average compensation, no amounts shall 277
be used that are in excess of the amount on which contributions 278
were required and paid, and no nontaxable amounts paid by the 279
employer for health or life insurance premiums for the employee 280
shall be used. If any member who is or has been granted any 281
increase in annual salary or compensation of more than eight 282
percent (8%) retires within twenty-four (24) months from the date 283
that the increase becomes effective, then the board shall exclude 284
that part of the increase in salary or compensation that exceeds 285
eight percent (8%) in calculating that member's average 286
compensation for retirement purposes. The board may enforce this 287
provision by rule or regulation. However, increases in 288
compensation in excess of eight percent (8%) per year granted 289
within twenty-four (24) months of the date of retirement may be 290
included in the calculation of average compensation if 291
satisfactory proof is presented to the board showing that the 292
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increase in compensation was the result of an actual change in the 293
position held or services rendered, or that the compensation 294
increase was authorized by the State Personnel Board or was 295
increased as a result of statutory enactment, and the employer 296
furnishes an affidavit stating that the increase granted within 297
the last twenty-four (24) months was not contingent on a promise 298
or agreement of the employee to retire. Nothing in Section 299
25-3-31 shall affect the calculation of the average compensation 300
of any member for the purposes of this article. The average 301
compensation of any member who retires before July 1, 1992, shall 302
not exceed the annual salary of the Governor. 303
(g) "Beneficiary" means any person entitled to receive 304
a retirement allowance, an annuity or other benefit as provided by 305
Articles 1 and 3. The term "beneficiary" may also include an 306
organization, estate, trust or entity; however, a beneficiary 307
designated or entitled to receive monthly payments under an 308
optional settlement based on life contingency or under a statutory 309
monthly benefit may only be a natural person. In the event of the 310
death before retirement of any member who became a member of the 311
system before July 1, 2007, and whose spouse and/or children are 312
not entitled to a retirement allowance on the basis that the 313
member has less than four (4) years of membership service credit, 314
or who became a member of the system on or after July 1, 2007, and 315
whose spouse and/or children are not entitled to a retirement 316
allowance on the basis that the member has less than eight (8) 317
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years of membership service credit, and/or has not been married 318
for a minimum of one (1) year or the spouse has waived his or her 319
entitlement to a retirement allowance under Section 25-11-114, the 320
lawful spouse of a member at the time of the death of the member 321
shall be the beneficiary of the member unless the member has 322
designated another beneficiary after the date of marriage in 323
writing, and filed that writing in the office of the executive 324
director of the board of trustees. No designation or change of 325
beneficiary shall be made in any other manner. 326
(h) "Board" means the board of trustees provided in 327
Section 25-11-15 to administer the retirement system created under 328
this article. 329
(i) "Creditable service" means "prior service," 330
"retroactive service" and all lawfully credited unused leave not 331
exceeding the accrual rates and limitations provided in Section 332
25-3-91 et seq., as of the date of withdrawal from service plus 333
"membership service" and other service for which credit is 334
allowable as provided in Section 25-11-109. Except to limit 335
creditable service reported to the system for the purpose of 336
computing an employee's retirement allowance or annuity or 337
benefits provided in this article, nothing in this paragraph shall 338
limit or otherwise restrict the power of the governing authority 339
of a municipality or other political subdivision of the state to 340
adopt such vacation and sick leave policies as it deems necessary. 341
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(j) "Child" means either a natural child of the member, 342
a child that has been made a child of the member by applicable 343
court action before the death of the member, or a child under the 344
permanent care of the member at the time of the latter's death, 345
which permanent care status shall be determined by evidence 346
satisfactory to the board. For purposes of this paragraph, a 347
natural child of the member is a child of the member that is 348
conceived before the death of the member. 349
(k) "Earned compensation" means the full amount earned 350
during a fiscal year by an employee not to exceed the employee 351
compensation limit set pursuant to Section 401(a)(17) of the 352
Internal Revenue Code for the calendar year in which the fiscal 353
year begins and proportionately for less than one (1) year of 354
service. Except as otherwise provided in this paragraph, the 355
value of maintenance furnished to an employee shall not be 356
included in earned compensation. Earned compensation shall not 357
include any amounts paid by the employer for health or life 358
insurance premiums for an employee. Earned compensation shall be 359
limited to the regular periodic compensation paid, exclusive of 360
litigation fees, bond fees, performance-based incentive payments, 361
and other similar extraordinary nonrecurring payments. In 362
addition, any member in a covered position, as defined by Public 363
Employees' Retirement System laws and regulations, who is also 364
employed by another covered agency or political subdivision shall 365
have the earnings of that additional employment reported to the 366
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Public Employees' Retirement System regardless of whether the 367
additional employment is sufficient in itself to be a covered 368
position. In addition, computation of earned compensation shall 369
be governed by the following: 370
(i) In the case of constables, the net earnings 371
from their office after deduction of expenses shall apply, except 372
that in no case shall earned compensation be less than the total 373
direct payments made by the state or governmental subdivisions to 374
the official. 375
(ii) In the case of chancery or circuit clerks, 376
the net earnings from their office after deduction of expenses 377
shall apply as expressed in Section 25-11-123(f)(4). 378
(iii) In the case of members of the State 379
Legislature, all remuneration or amounts paid, except mileage 380
allowance, shall apply. 381
(iv) The amount by which an eligible employee's 382
salary is reduced under a salary reduction agreement authorized 383
under Section 25-17-5 shall be included as earned compensation 384
under this paragraph, provided this inclusion does not conflict 385
with federal law, including federal regulations and federal 386
administrative interpretations under the federal law, pertaining 387
to the Federal Insurance Contributions Act or to Internal Revenue 388
Code Section 125 cafeteria plans. 389
(v) Compensation in addition to an employee's base 390
salary that is paid to the employee under the vacation and sick 391
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leave policies of a municipality or other political subdivision of 392
the state that employs him or her that exceeds the maximums 393
authorized by Section 25-3-91 et seq. shall be excluded from the 394
calculation of earned compensation under this article. 395
(vi) The maximum salary applicable for retirement 396
purposes before July 1, 1992, shall be the salary of the Governor. 397
(vii) Nothing in Section 25-3-31 shall affect the 398
determination of the earned compensation of any member for the 399
purposes of this article. 400
(viii) The value of maintenance furnished to an 401
employee before July 1, 2013, for which the proper amount of 402
employer and employee contributions have been paid, shall be 403
included in earned compensation. From and after July 1, 2013, the 404
value of maintenance furnished to an employee shall be reported as 405
earned compensation only if the proper amount of employer and 406
employee contributions have been paid on the maintenance and the 407
employee was receiving maintenance and having maintenance reported 408
to the system as of June 30, 2013. The value of maintenance when 409
not paid in money shall be fixed by the employing state agency, 410
and, in case of doubt, by the board of trustees as defined in 411
Section 25-11-15. 412
(ix) Except as otherwise provided in this 413
paragraph, the value of any in-kind benefits provided by the 414
employer shall not be included in earned compensation. As used in 415
this subparagraph, "in-kind benefits" shall include, but not be 416
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limited to, group life insurance premiums, health or dental 417
insurance premiums, nonpaid major medical and personal leave, 418
employer contributions for social security and retirement, tuition 419
reimbursement or educational funding, day care or transportation 420
benefits. 421
(l) "Employee" means any person legally occupying a 422
position in the state service, and shall include the employees of 423
the retirement system created under this article. 424
(m) "Employer" means the State of Mississippi or any of 425
its departments, agencies or subdivisions from which any employee 426
receives his or her compensation. 427
(n) "Executive director" means the secretary to the 428
board of trustees, as provided in Section 25-11-15(9), and the 429
administrator of the Public Employees' Retirement System and all 430
systems under the management of the board of trustees. Wherever 431
the term "Executive Secretary of the Public Employees' Retirement 432
System" or "executive secretary" appears in this article or in any 433
other provision of law, it shall be construed to mean the 434
Executive Director of the Public Employees' Retirement System. 435
(o) "Fiscal year" means the period beginning on July 1 436
of any year and ending on June 30 of the next succeeding year. 437
(p) "Medical board" means the board of physicians or 438
any governmental or nongovernmental disability determination 439
service designated by the board of trustees that is qualified to 440
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make disability determinations as provided for in Section 441
25-11-119. 442
(q) "Member" means any person included in the 443
membership of the system as provided in Section 25-11-105. For 444
purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 445
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 446
system withdrew from state service and received a refund of the 447
amount of the accumulated contributions to the credit of the 448
member in the annuity savings account before July 1, 2007, and the 449
person reenters state service and becomes a member of the system 450
again on or after July 1, 2007, and repays all or part of the 451
amount received as a refund and interest in order to receive 452
creditable service for service rendered before July 1, 2007, the 453
member shall be considered to have become a member of the system 454
on or after July 1, 2007, subject to the eight-year membership 455
service requirement, as applicable in those sections. For 456
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 457
25-11-115, if a member of the system withdrew from state service 458
and received a refund of the amount of the accumulated 459
contributions to the credit of the member in the annuity savings 460
account before July 1, 2011, and the person reenters state service 461
and becomes a member of the system again on or after July 1, 2011, 462
and repays all or part of the amount received as a refund and 463
interest in order to receive creditable service for service 464
rendered before July 1, 2011, the member shall be considered to 465
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have become a member of the system on or after July 1, 2011. If a 466
member of the system withdrew from state service and received a 467
refund of the amount of the accumulated contributions to the 468
credit of the member in the annuity savings account before March 469
1, 2026, and the person reenters state service and becomes a 470
member of the system again on or after March 1, 2026, the member 471
shall be considered to have become a member of the system on or 472
after March 1, 2026, and may not receive creditable service for 473
service rendered before March 1, 2026. 474
(r) "Membership service" means service as an employee 475
in a covered position rendered while a contributing member of the 476
retirement system. 477
(s) "Position" means any office or any employment in 478
the state service, or two (2) or more of them, the duties of which 479
call for services to be rendered by one (1) person, including 480
positions jointly employed by federal and state agencies 481
administering federal and state funds. The employer shall 482
determine upon initial employment and during the course of 483
employment of an employee who does not meet the criteria for 484
coverage in the Public Employees' Retirement System based on the 485
position held, whether the employee is or becomes eligible for 486
coverage in the Public Employees' Retirement System based upon any 487
other employment in a covered agency or political subdivision. If 488
or when the employee meets the eligibility criteria for coverage 489
in the other position, then the employer must withhold 490
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contributions and report wages from the noncovered position in 491
accordance with the provisions for reporting of earned 492
compensation. Failure to deduct and report those contributions 493
shall not relieve the employee or employer of liability thereof. 494
The board shall adopt such rules and regulations as necessary to 495
implement and enforce this provision. 496
(t) "Prior service" means: 497
(i) For persons who became members of the system 498
before July 1, 2007, service rendered before February 1, 1953, for 499
which credit is allowable under Sections 25-11-105 and 25-11-109, 500
and which shall allow prior service for any person who is now or 501
becomes a member of the Public Employees' Retirement System and 502
who does contribute to the system for a minimum period of four (4) 503
years. 504
(ii) For persons who became members of the system 505
on or after July 1, 2007, service rendered before February 1, 506
1953, for which credit is allowable under Sections 25-11-105 and 507
25-11-109, and which shall allow prior service for any person who 508
is now or becomes a member of the Public Employees' Retirement 509
System and who does contribute to the system for a minimum period 510
of eight (8) years. 511
(u) "Regular interest" means interest compounded 512
annually at such a rate as determined by the board in accordance 513
with Section 25-11-121. 514
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(v) "Retirement allowance" means an annuity for life as 515
provided in this article, payable each year in twelve (12) equal 516
monthly installments beginning as of the date fixed by the board. 517
The retirement allowance shall be calculated in accordance with 518
Section 25-11-111. However, any spouse who received a spouse 519
retirement benefit in accordance with Section 25-11-111(d) before 520
March 31, 1971, and those benefits were terminated because of 521
eligibility for a social security benefit, may again receive his 522
or her spouse retirement benefit from and after making application 523
with the board of trustees to reinstate the spouse retirement 524
benefit. 525
(w) "Retroactive service" means service rendered after 526
February 1, 1953, for which credit is allowable under Section 527
25-11-105(b) and Section 25-11-105(k). 528
(x) "System" means the Public Employees' Retirement 529
System of Mississippi established and described in Section 530
25-11-101. 531
(y) "State" means the State of Mississippi or any 532
political subdivision thereof or instrumentality of the state. 533
(z) "State service" means all offices and positions of 534
trust or employment in the employ of the state, or any political 535
subdivision or instrumentality of the state, that elect to 536
participate as provided by Section 25-11-105(f), including the 537
position of elected or fee officials of the counties and their 538
deputies and employees performing public services or any 539
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department, independent agency, board or commission thereof, and 540
also includes all offices and positions of trust or employment in 541
the employ of joint state and federal agencies administering state 542
and federal funds and service rendered by employees of the public 543
schools. Effective July 1, 1973, all nonprofessional public 544
school employees, such as bus drivers, janitors, maids, 545
maintenance workers and cafeteria employees, shall have the option 546
to become members in accordance with Section 25-11-105(b), and 547
shall be eligible to receive credit for services before July 1, 548
1973, provided that the contributions and interest are paid by the 549
employee in accordance with that section; in addition, the county 550
or municipal separate school district may pay the employer 551
contribution and pro rata share of interest of the retroactive 552
service from available funds. "State service" shall not include 553
the President of the Mississippi Lottery Corporation and personnel 554
employed by the Mississippi Lottery Corporation. From and after 555
July 1, 1998, retroactive service credit shall be purchased at the 556
actuarial cost in accordance with Section 25-11-105(b). 557
(aa) "Withdrawal from service" or "termination from 558
service" means complete severance of employment in the state 559
service of any member by resignation, dismissal or discharge. 560
(bb) The masculine pronoun, wherever used, includes the 561
feminine pronoun. 562
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(2) For purposes of this article, the term "political 563
subdivision" shall have the meaning ascribed to such term in 564
Section 25-11-5 and shall also include public charter schools. 565
SECTION 4. Section 25-11-105, Mississippi Code of 1972, is 566
brought forward as follows: 567
25-11-105. I. THOSE WHO ARE ELIGIBLE FOR MEMBERSHIP 568
The membership of this retirement system shall be composed as 569
follows: 570
(a) (i) All persons who become employees in the state 571
service after January 31, 1953, and whose wages are subject to 572
payroll taxes and are lawfully reported on IRS Form W-2, except 573
those specifically excluded, or as to whom election is provided in 574
Articles 1 and 3, shall become members of the retirement system as 575
a condition of their employment. 576
(ii) From and after July 1, 2002, any individual 577
who is employed by a governmental entity to perform professional 578
services shall become a member of the system if the individual is 579
paid regular periodic compensation for those services that is 580
subject to payroll taxes, is provided all other employee benefits 581
and meets the membership criteria established by the regulations 582
adopted by the board of trustees that apply to all other members 583
of the system; however, any active member employed in such a 584
position on July 1, 2002, will continue to be an active member for 585
as long as they are employed in any such position. 586
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(b) All persons who become employees in the state 587
service after January 31, 1953, except those specifically excluded 588
or as to whom election is provided in Articles 1 and 3, unless 589
they file with the board before the lapse of sixty (60) days of 590
employment or sixty (60) days after the effective date of the 591
cited articles, whichever is later, on a form prescribed by the 592
board, a notice of election not to be covered by the membership of 593
the retirement system and a duly executed waiver of all present 594
and prospective benefits that would otherwise inure to them on 595
account of their participation in the system, shall become members 596
of the retirement system; however, no credit for prior service 597
will be granted to members who became members of the system before 598
July 1, 2007, until they have contributed to Article 3 of the 599
retirement system for a minimum period of at least four (4) years, 600
or to members who became members of the system on or after July 1, 601
2007, until they have contributed to Article 3 of the retirement 602
system for a minimum period of at least eight (8) years. Those 603
members shall receive credit for services performed before January 604
1, 1953, in employment now covered by Article 3, but no credit 605
shall be granted for retroactive services between January 1, 1953, 606
and the date of their entry into the retirement system, unless the 607
employee pays into the retirement system both the employer's and 608
the employee's contributions on wages paid him during the period 609
from January 31, 1953, to the date of his becoming a contributing 610
member, together with interest at the rate determined by the board 611
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of trustees. Members reentering after withdrawal from service 612
shall qualify for prior service under the provisions of Section 613
25-11-117. From and after July 1, 1998, upon eligibility as noted 614
above, the member may receive credit for such retroactive service 615
provided: 616
(i) The member shall furnish proof satisfactory to 617
the board of trustees of certification of that service from the 618
covered employer where the services were performed; and 619
(ii) The member shall pay to the retirement system 620
on the date he or she is eligible for that credit or at any time 621
thereafter before the date of retirement the actuarial cost for 622
each year of that creditable service. The provisions of this 623
subparagraph (ii) shall be subject to the limitations of Section 624
415 of the Internal Revenue Code and regulations promulgated under 625
Section 415. 626
Nothing contained in this paragraph (b) shall be construed to 627
limit the authority of the board to allow the correction of 628
reporting errors or omissions based on the payment of the employee 629
and employer contributions plus applicable interest. 630
(c) All persons who become employees in the state 631
service after January 31, 1953, and who are eligible for 632
membership in any other retirement system shall become members of 633
this retirement system as a condition of their employment, unless 634
they elect at the time of their employment to become a member of 635
that other system. 636
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(d) All persons who are employees in the state service 637
on January 31, 1953, and who are members of any nonfunded 638
retirement system operated by the State of Mississippi, or any of 639
its departments or agencies, shall become members of this system 640
with prior service credit unless, before February 1, 1953, they 641
file a written notice with the board of trustees that they do not 642
elect to become members. 643
(e) All persons who are employees in the state service 644
on January 31, 1953, and who under existing laws are members of 645
any fund operated for the retirement of employees by the State of 646
Mississippi, or any of its departments or agencies, shall not be 647
entitled to membership in this retirement system unless, before 648
February 1, 1953, any such person indicates by a notice filed with 649
the board, on a form prescribed by the board, his individual 650
election and choice to participate in this system, but no such 651
person shall receive prior service credit unless he becomes a 652
member on or before February 1, 1953. 653
(f) Each political subdivision of the state and each 654
instrumentality of the state or a political subdivision, or both, 655
is authorized to submit, for approval by the board of trustees, a 656
plan for extending the benefits of this article to employees of 657
any such political subdivision or instrumentality. Each such plan 658
or any amendment to the plan for extending benefits thereof shall 659
be approved by the board of trustees if it finds that the plan, or 660
the plan as amended, is in conformity with such requirements as 661
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are provided in Articles 1 and 3; however, upon approval of the 662
plan or any such plan previously approved by the board of 663
trustees, the approved plan shall not be subject to cancellation 664
or termination by the political subdivision or instrumentality. 665
No such plan shall be approved unless: 666
(i) It provides that all services that constitute 667
employment as defined in Section 25-11-5 and are performed in the 668
employ of the political subdivision or instrumentality, by any 669
employees thereof, shall be covered by the plan, with the 670
exception of municipal employees who are already covered by 671
existing retirement plans; however, those employees in this class 672
may elect to come under the provisions of this article; 673
(ii) It specifies the source or sources from which 674
the funds necessary to make the payments required by paragraph (d) 675
of Section 25-11-123 and of paragraph (f)(v)2 and 3 of this 676
section are expected to be derived and contains reasonable 677
assurance that those sources will be adequate for that purpose; 678
(iii) It provides for such methods of 679
administration of the plan by the political subdivision or 680
instrumentality as are found by the board of trustees to be 681
necessary for the proper and efficient administration thereof; 682
(iv) It provides that the political subdivision or 683
instrumentality will make such reports, in such form and 684
containing such information, as the board of trustees may from 685
time to time require; 686
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(v) It authorizes the board of trustees to 687
terminate the plan in its entirety in the discretion of the board 688
if it finds that there has been a failure to comply substantially 689
with any provision contained in the plan, the termination to take 690
effect at the expiration of such notice and on such conditions as 691
may be provided by regulations of the board and as may be 692
consistent with applicable federal law. 693
1. The board of trustees shall not finally 694
refuse to approve a plan submitted under paragraph (f), and shall 695
not terminate an approved plan without reasonable notice and 696
opportunity for hearing to each political subdivision or 697
instrumentality affected by the board's decision. The board's 698
decision in any such case shall be final, conclusive and binding 699
unless an appeal is taken by the political subdivision or 700
instrumentality aggrieved by the decision to the Circuit Court of 701
the First Judicial District of Hinds County, Mississippi, in 702
accordance with the provisions of law with respect to civil causes 703
by certiorari. 704
2. Each political subdivision or 705
instrumentality as to which a plan has been approved under this 706
section shall pay into the contribution fund, with respect to 707
wages (as defined in Section 25-11-5), at such time or times as 708
the board of trustees may by regulation prescribe, contributions 709
in the amounts and at the rates specified in the applicable 710
agreement entered into by the board. 711
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3. Every political subdivision or 712
instrumentality required to make payments under paragraph (f)(v)2 713
of this section is authorized, in consideration of the employees' 714
retention in or entry upon employment after enactment of Articles 715
1 and 3, to impose upon its employees, as to services that are 716
covered by an approved plan, a contribution with respect to wages 717
(as defined in Section 25-11-5) not exceeding the amount provided 718
in Section 25-11-123(d) if those services constituted employment 719
within the meaning of Articles 1 and 3, and to deduct the amount 720
of the contribution from the wages as and when paid. 721
Contributions so collected shall be paid into the contribution 722
fund as partial discharge of the liability of the political 723
subdivisions or instrumentalities under paragraph (f)(v)2 of this 724
section. Failure to deduct the contribution shall not relieve the 725
employee or employer of liability for the contribution. 726
4. Any state agency, school, political 727
subdivision, instrumentality or any employer that is required to 728
submit contribution payments or wage reports under any section of 729
this chapter shall be assessed interest on delinquent payments or 730
wage reports as determined by the board of trustees in accordance 731
with rules and regulations adopted by the board and delinquent 732
payments, assessed interest and any other amount certified by the 733
board as owed by an employer, may be recovered by action in a 734
court of competent jurisdiction against the reporting agency 735
liable therefor or may, upon due certification of delinquency and 736
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at the request of the board of trustees, be deducted from any 737
other monies payable to the reporting agency by any department or 738
agency of the state. 739
5. Each political subdivision of the state 740
and each instrumentality of the state or a political subdivision 741
or subdivisions that submit a plan for approval of the board, as 742
provided in this section, shall reimburse the board for coverage 743
into the expense account, its pro rata share of the total expense 744
of administering Articles 1 and 3 as provided by regulations of 745
the board. 746
(g) The board may, in its discretion, deny the right of 747
membership in this system to any class of employees whose 748
compensation is only partly paid by the state or who are occupying 749
positions on a part-time or intermittent basis. The board may, in 750
its discretion, make optional with employees in any such classes 751
their individual entrance into this system. 752
(h) An employee whose membership in this system is 753
contingent on his own election, and who elects not to become a 754
member, may thereafter apply for and be admitted to membership; 755
but no such employee shall receive prior service credit unless he 756
becomes a member before July 1, 1953, except as provided in 757
paragraph (b). 758
(i) If any member of this system changes his employment 759
to any agency of the state having an actuarially funded retirement 760
system, the board of trustees may authorize the transfer of the 761
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member's creditable service and of the present value of the 762
member's employer's accumulation account and of the present value 763
of the member's accumulated membership contributions to that other 764
system, provided that the employee agrees to the transfer of his 765
accumulated membership contributions and provided that the other 766
system is authorized to receive and agrees to make the transfer. 767
If any member of any other actuarially funded system 768
maintained by an agency of the state changes his employment to an 769
agency covered by this system, the board of trustees may authorize 770
the receipt of the transfer of the member's creditable service and 771
of the present value of the member's employer's accumulation 772
account and of the present value of the member's accumulated 773
membership contributions from the other system, provided that the 774
employee agrees to the transfer of his accumulated membership 775
contributions to this system and provided that the other system is 776
authorized and agrees to make the transfer. 777
(j) Wherever state employment is referred to in this 778
section, it includes joint employment by state and federal 779
agencies of all kinds. 780
(k) Employees of a political subdivision or 781
instrumentality who were employed by the political subdivision or 782
instrumentality before an agreement between the entity and the 783
Public Employees' Retirement System to extend the benefits of this 784
article to its employees, and which agreement provides for the 785
establishment of retroactive service credit, and who became 786
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members of the retirement system before July 1, 2007, and have 787
remained contributors to the retirement system for four (4) years, 788
or who became members of the retirement system on or after July 1, 789
2007, and have remained contributors to the retirement system for 790
eight (8) years, may receive credit for that retroactive service 791
with the political subdivision or instrumentality, provided that 792
the employee and/or employer, as provided under the terms of the 793
modification of the joinder agreement in allowing that coverage, 794
pay into the retirement system the employer's and employee's 795
contributions on wages paid the member during the previous 796
employment, together with interest or actuarial cost as determined 797
by the board covering the period from the date the service was 798
rendered until the payment for the credit for the service was 799
made. Those wages shall be verified by the Social Security 800
Administration or employer payroll records. Effective July 1, 801
1998, upon eligibility as noted above, a member may receive credit 802
for that retroactive service with the political subdivision or 803
instrumentality provided: 804
(i) The member shall furnish proof satisfactory to 805
the board of trustees of certification of those services from the 806
political subdivision or instrumentality where the services were 807
rendered or verification by the Social Security Administration; 808
and 809
(ii) The member shall pay to the retirement system 810
on the date he or she is eligible for that credit or at any time 811
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thereafter before the date of retirement the actuarial cost for 812
each year of that creditable service. The provisions of this 813
subparagraph (ii) shall be subject to the limitations of Section 814
415 of the Internal Revenue Code and regulations promulgated under 815
Section 415. 816
Nothing contained in this paragraph (k) shall be construed to 817
limit the authority of the board to allow the correction of 818
reporting errors or omissions based on the payment of employee and 819
employer contributions plus applicable interest. Payment for that 820
time shall be made beginning with the most recent service. Upon 821
the payment of all or part of the required contributions, plus 822
interest or the actuarial cost as provided above, the member shall 823
receive credit for the period of creditable service for which full 824
payment has been made to the retirement system. 825
(l) Through June 30, 1998, any state service eligible 826
for retroactive service credit, no part of which has ever been 827
reported, and requiring the payment of employee and employer 828
contributions plus interest, or, from and after July 1, 1998, any 829
state service eligible for retroactive service credit, no part of 830
which has ever been reported to the retirement system, and 831
requiring the payment of the actuarial cost for that creditable 832
service, may, at the member's option, be purchased in quarterly 833
increments as provided above at the time that its purchase is 834
otherwise allowed. 835
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(m) All rights to purchase retroactive service credit 836
or repay a refund as provided in Section 25-11-101 et seq. shall 837
terminate upon retirement. 838
II. THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP 839
The following classes of employees and officers shall not 840
become members of this retirement system, any other provisions of 841
Articles 1 and 3 to the contrary notwithstanding: 842
(a) Patient or inmate help in state charitable, penal 843
or correctional institutions; 844
(b) Students of any state educational institution 845
employed by any agency of the state for temporary, part-time or 846
intermittent work; 847
(c) Participants of Comprehensive Employment and 848
Training Act of 1973 (CETA) being Public Law 93-203, who enroll on 849
or after July l, 1979; 850
(d) From and after July 1, 2002, individuals who are 851
employed by a governmental entity to perform professional service 852
on less than a full-time basis who do not meet the criteria 853
established in I(a)(ii) of this section. 854
III. TERMINATION OF MEMBERSHIP 855
Membership in this system shall cease by a member withdrawing 856
his accumulated contributions, or by a member withdrawing from 857
active service with a retirement allowance, or by a member's 858
death. 859
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SECTION 5. Section 25-11-109, Mississippi Code of 1972, is 860
brought forward as follows: 861
25-11-109. (1) Under such rules and regulations as the 862
board of trustees shall adopt, each person who becomes a member of 863
this retirement system, as provided in Section 25-11-105, on or 864
before July 1, 1953, or who became a member of the system before 865
July 1, 2007, and contributes to the system for a minimum period 866
of four (4) years, or who became a member of the system on or 867
after July 1, 2007, and contributes to the system for a minimum 868
period of eight (8) years, shall receive credit for all state 869
service rendered before February 1, 1953. To receive that credit, 870
the member shall file a detailed statement of all services as an 871
employee rendered by him in the state service before February 1, 872
1953. For any member who joined the system after July 1, 1953, 873
and before July 1, 2007, any creditable service for which the 874
member is not required to make contributions shall not be credited 875
to the member until the member has contributed to the system for a 876
minimum period of at least four (4) years. For any member who 877
joined the system on or after July 1, 2007, but before March 1, 878
2026, any creditable service for which the member is not required 879
to make contributions shall not be credited to the member until 880
the member has contributed to the system for a minimum period of 881
at least eight (8) years. 882
(2) (a) (i) In the computation of creditable service for 883
service rendered before July 1, 2017, under the provisions of this 884
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article, the total months of accumulative service during any 885
fiscal year shall be calculated in accordance with the schedule as 886
follows: ten (10) or more months of creditable service during any 887
fiscal year shall constitute a year of creditable service; seven 888
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 889
year of creditable service; four (4) months to six (6) months 890
inclusive, one-half (1/2) year of creditable service; one (1) 891
month to three (3) months inclusive, one-quarter (1/4) of a year 892
of creditable service. 893
(ii) In the computation of creditable service 894
rendered on or after July 1, 2017, under the provisions of this 895
article, service credit shall be awarded in monthly increments in 896
a manner prescribed by regulations of the board. 897
(b) In no case shall credit be allowed for any period 898
of absence without compensation except for disability while in 899
receipt of a disability retirement allowance, nor shall less than 900
fifteen (15) days of service in any month, or service less than 901
the equivalent of one-half (1/2) of the normal working load for 902
the position and less than one-half (1/2) of the normal 903
compensation for the position in any month, constitute a month of 904
creditable service, nor shall more than one (1) year of service be 905
creditable for all services rendered in any one (1) fiscal year; 906
however, for a school employee, substantial completion of the 907
legal school term when and where the service was rendered shall 908
constitute a year of service credit. Any state or local elected 909
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official shall be deemed a full-time employee for the purpose of 910
creditable service. However, an appointed or elected official 911
compensated on a per diem basis only shall not be allowed 912
creditable service for terms of office. 913
(c) In the computation of any retirement allowance or 914
any annuity or benefits provided in this article, any fractional 915
period of service of less than one (1) year shall be taken into 916
account and a proportionate amount of such retirement allowance, 917
annuity or benefit shall be granted for any such fractional period 918
of service. 919
(d) (i) In the computation of unused leave for 920
creditable service authorized in Section 25-11-103, the following 921
shall govern for members who retire before July 1, 2017: 922
twenty-one (21) days of unused leave shall constitute one (1) 923
month of creditable service and in no case shall credit be allowed 924
for any period of unused leave of less than fifteen (15) days. 925
The number of months of unused leave shall determine the number of 926
quarters or years of creditable service in accordance with the 927
above schedule for membership and prior service. 928
(ii) In the computation of unused leave for 929
creditable service authorized in Section 25-11-103, the following 930
shall govern for members who retire on or after July 1, 2017: 931
creditable service for unused leave shall be calculated in monthly 932
increments in which one (1) month of service credit shall be 933
awarded for each twenty-one (21) days of unused leave, except that 934
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the first fifteen (15) to fifty-seven (57) days of leave shall 935
constitute three (3) months of service for those who became a 936
member of the system before July 1, 2017. 937
(iii) In order for the member to receive 938
creditable service for the number of days of unused leave under 939
this paragraph, the system must receive certification from the 940
governing authority. 941
(iv) For anyone who becomes a member of the system 942
on or after March 1, 2026, no service credit shall be awarded for 943
unused leave. 944
(e) For the purposes of this subsection, members of the 945
system who retire on or after July 1, 2010, shall receive credit 946
for one-half (1/2) day of leave for each full year of membership 947
service accrued after June 30, 2010. The amount of leave received 948
by a member under this paragraph shall be added to the lawfully 949
credited unused leave for which creditable service is provided 950
under Section 25-11-103(i). 951
(f) For the purpose of this subsection, for members of 952
the system who are elected officers and who retire on or after 953
July 1, 1987, the following shall govern: 954
(i) For service before July 1, 1984, the members 955
shall receive credit for leave (combined personal and major 956
medical) for service as an elected official before that date at 957
the rate of thirty (30) days per year. 958
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(ii) For service on and after July 1, 1984, the 959
member shall receive credit for personal and major medical leave 960
beginning July 1, 1984, at the rates authorized in Sections 961
25-3-93 and 25-3-95, computed as a full-time employee. 962
(iii) If a member is employed in a covered 963
nonelected position and a covered elected position simultaneously, 964
that member may not receive service credit for accumulated unused 965
leave for both positions at retirement for the period during which 966
the member was dually employed. During the period during which 967
the member is dually employed, the member shall only receive 968
credit for leave as provided for in this paragraph for an elected 969
official. 970
(iv) For any elected official who becomes a member 971
of the system on or after March 1, 2026, no service credit shall 972
be awarded for leave. 973
(3) Subject to the above restrictions and to such other 974
rules and regulations as the board may adopt, the board shall 975
verify, as soon as practicable after the filing of such statements 976
of service, the services therein claimed. 977
(4) Upon verification of the statement of prior service, the 978
board shall issue a prior service certificate certifying to each 979
member the length of prior service for which credit shall have 980
been allowed on the basis of his statement of service. So long as 981
membership continues, a prior service certificate shall be final 982
and conclusive for retirement purposes as to such service, 983
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provided that any member may within five (5) years from the date 984
of issuance or modification of such certificate request the board 985
of trustees to modify or correct his prior service certificate. 986
Any modification or correction authorized shall only apply 987
prospectively. 988
When membership ceases, such prior service certificates shall 989
become void. Should the employee again become a member, he shall 990
enter the system as an employee not entitled to prior service 991
credit except as provided in Sections 25-11-105(I), 25-11-113 and 992
25-11-117. 993
(5) Creditable service at retirement, on which the 994
retirement allowance of a member shall be based, shall consist of 995
the membership service rendered by him since he last became a 996
member, and also, if he has a prior service certificate that is in 997
full force and effect, the amount of the service certified on his 998
prior service certificate. 999
(6) Any member who served on active duty in the Armed Forces 1000
of the United States, who served in the Commissioned Corps of the 1001
United States Public Health Service before 1972 or who served in 1002
maritime service during periods of hostility in World War II, 1003
shall be entitled to creditable service at no cost for his service 1004
on active duty in the Armed Forces, in the Commissioned Corps of 1005
the United States Public Health Service before 1972 or in such 1006
maritime service, provided he entered state service after his 1007
discharge from the Armed Forces or entered state service after he 1008
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completed such maritime service. The maximum period for such 1009
creditable service for all military service as defined in this 1010
subsection (6) shall not exceed four (4) years unless positive 1011
proof can be furnished by such person that he was retained in the 1012
Armed Forces during World War II or in maritime service during 1013
World War II by causes beyond his control and without opportunity 1014
of discharge. The member shall furnish proof satisfactory to the 1015
board of trustees of certification of military service or maritime 1016
service records showing dates of entrance into active duty service 1017
and the date of discharge. From and after July 1, 1993, no 1018
creditable service shall be granted for any military service or 1019
maritime service to a member who qualifies for a retirement 1020
allowance in another public retirement system administered by the 1021
Board of Trustees of the Public Employees' Retirement System 1022
based, in whole or in part, on such military or maritime service. 1023
In no case shall the member receive creditable service if the 1024
member received a dishonorable discharge from the Armed Forces of 1025
the United States. 1026
(7) (a) Any member of the Public Employees' Retirement 1027
System whose membership service is interrupted as a result of 1028
qualified military service within the meaning of Section 414(u)(5) 1029
of the Internal Revenue Code, and who has received the maximum 1030
service credit available under subsection (6) of this section, 1031
shall receive creditable service for the period of qualified 1032
military service that does not qualify as creditable service under 1033
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subsection (6) of this section upon reentering membership service 1034
in an amount not to exceed five (5) years if: 1035
(i) The member pays the contributions he would 1036
have made to the retirement system if he had remained in 1037
membership service for the period of qualified military service 1038
based upon his salary at the time his membership service was 1039
interrupted; 1040
(ii) The member returns to membership service 1041
within ninety (90) days of the end of his qualified military 1042
service; and 1043
(iii) The employer at the time the member's 1044
service was interrupted and to which employment the member returns 1045
pays the contributions it would have made into the retirement 1046
system for such period based on the member's salary at the time 1047
the service was interrupted. 1048
(b) The payments required to be made in paragraph 1049
(a)(i) of this subsection may be made over a period beginning with 1050
the date of return to membership service and not exceeding three 1051
(3) times the member's qualified military service; however, in no 1052
event shall such period exceed five (5) years. 1053
(c) The member shall furnish proof satisfactory to the 1054
board of trustees of certification of military service showing 1055
dates of entrance into qualified service and the date of discharge 1056
as well as proof that the member has returned to active employment 1057
within the time specified. 1058
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(8) Any member of the Public Employees' Retirement System 1059
who became a member of the system before July 1, 2007, and who has 1060
at least four (4) years of membership service credit, or who 1061
became a member of the system on or after July 1, 2007, but before 1062
March 1, 2026, and who has at least eight (8) years of membership 1063
service credit, shall be entitled to receive a maximum of five (5) 1064
years' creditable service for service rendered in another state as 1065
a public employee of such other state, or a political subdivision, 1066
public education system or other governmental instrumentality 1067
thereof, or service rendered as a teacher in American overseas 1068
dependent schools conducted by the Armed Forces of the United 1069
States for children of citizens of the United States residing in 1070
areas outside the continental United States, provided that: 1071
(a) The member shall furnish proof satisfactory to the 1072
board of trustees of certification of such services from the 1073
state, public education system, political subdivision or 1074
retirement system of the state where the services were performed 1075
or the governing entity of the American overseas dependent school 1076
where the services were performed; and 1077
(b) The member is not receiving or will not be entitled 1078
to receive from the public retirement system of the other state or 1079
from any other retirement plan, including optional retirement 1080
plans, sponsored by the employer, a retirement allowance including 1081
such services; and 1082
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(c) The member shall pay to the retirement system on 1083
the date he or she is eligible for credit for such out-of-state 1084
service or at any time thereafter before the date of retirement 1085
the actuarial cost as determined by the actuary for each year of 1086
out-of-state creditable service. The provisions of this 1087
subsection are subject to the limitations of Section 415 of the 1088
Internal Revenue Code and regulations promulgated under that 1089
section. 1090
(9) Any member of the Public Employees' Retirement System 1091
who became a member of the system before July 1, 2007, and has at 1092
least four (4) years of membership service credit, or who became a 1093
member of the system on or after July 1, 2007, but before March 1, 1094
2026, and has at least eight (8) years of membership service 1095
credit, and who receives, or has received, professional leave 1096
without compensation for professional purposes directly related to 1097
the employment in state service shall receive creditable service 1098
for the period of professional leave without compensation 1099
provided: 1100
(a) The professional leave is performed with a public 1101
institution or public agency of this state, or another state or 1102
federal agency; 1103
(b) The employer approves the professional leave 1104
showing the reason for granting the leave and makes a 1105
determination that the professional leave will benefit the 1106
employee and employer; 1107
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(c) Such professional leave shall not exceed two (2) 1108
years during any ten-year period of state service; 1109
(d) The employee shall serve the employer on a 1110
full-time basis for a period of time equivalent to the 1111
professional leave period granted immediately following the 1112
termination of the leave period; 1113
(e) The contributing member shall pay to the retirement 1114
system the actuarial cost as determined by the actuary for each 1115
year of professional leave. The provisions of this subsection are 1116
subject to the regulations of the Internal Revenue Code 1117
limitations; 1118
(f) Such other rules and regulations consistent 1119
herewith as the board may adopt and in case of question, the board 1120
shall have final power to decide the questions. 1121
Any actively contributing member participating in the School 1122
Administrator Sabbatical Program established in Section 37-9-77 1123
shall qualify for continued participation under this subsection 1124
(9). 1125
(10) Any member of the Public Employees' Retirement System 1126
who became a member of the system before July 1, 2007, and has at 1127
least four (4) years of credited membership service, or who became 1128
a member of the system on or after July 1, 2007, but before March 1129
1, 2026, and has at least eight (8) years of credited membership 1130
service, shall be entitled to receive a maximum of ten (10) years 1131
creditable service for: 1132
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(a) Any service rendered as an employee of any 1133
political subdivision of this state, or any instrumentality 1134
thereof, that does not participate in the Public Employees' 1135
Retirement System; or 1136
(b) Any service rendered as an employee of any 1137
political subdivision of this state, or any instrumentality 1138
thereof, that participates in the Public Employees' Retirement 1139
System but did not elect retroactive coverage; or 1140
(c) Any service rendered as an employee of any 1141
political subdivision of this state, or any instrumentality 1142
thereof, for which coverage of the employee's position was or is 1143
excluded; provided that the member pays into the retirement system 1144
the actuarial cost as determined by the actuary for each year, or 1145
portion thereof, of such service. After a member has made full 1146
payment to the retirement system for all or any part of such 1147
service, the member shall receive creditable service for the 1148
period of such service for which full payment has been made to the 1149
retirement system. 1150
SECTION 6. Section 25-11-111, Mississippi Code of 1972, is 1151
brought forward as follows: 1152
25-11-111. (a) (1) Any member who became a member of the 1153
system before July 1, 2007, upon withdrawal from service upon or 1154
after attainment of the age of sixty (60) years who has completed 1155
at least four (4) years of membership service, or any member who 1156
became a member of the system before July 1, 2011, upon withdrawal 1157
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from service regardless of age who has completed at least 1158
twenty-five (25) years of creditable service, shall be entitled to 1159
receive a retirement allowance, which shall begin on the first of 1160
the month following the date the member's application for the 1161
allowance is received by the board, but in no event before 1162
withdrawal from service. 1163
(2) Any member who became a member of the system on or 1164
after July 1, 2007, but before March 1, 2026, upon withdrawal from 1165
service upon or after attainment of the age of sixty (60) years 1166
who has completed at least eight (8) years of membership service, 1167
or any member who became a member of the system on or after July 1168
1, 2011, but before March 1, 2026, upon withdrawal from service 1169
regardless of age who has completed at least thirty (30) years of 1170
creditable service, shall be entitled to receive a retirement 1171
allowance, which shall begin on the first of the month following 1172
the date the member's application for the allowance is received by 1173
the board, but in no event before withdrawal from service. 1174
(3) Any member who became a member of the system on or 1175
after March 1, 2026, upon withdrawal from service upon or after 1176
attainment of the age of sixty-two (62) years who has completed at 1177
least eight (8) years of membership service, or upon withdrawal 1178
from service regardless of age who has completed at least 1179
thirty-five (35) years of creditable service, shall be entitled to 1180
receive a retirement allowance, which shall begin on the first of 1181
the month following the date the member's application for the 1182
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allowance is received by the board, but in no event before 1183
withdrawal from service. 1184
(b) (1) Any member who became a member of the system before 1185
July 1, 2007, whose withdrawal from service occurs before 1186
attaining the age of sixty (60) years who has completed four (4) 1187
or more years of membership service and has not received a refund 1188
of his accumulated contributions, shall be entitled to receive a 1189
retirement allowance, beginning upon his attaining the age of 1190
sixty (60) years, of the amount earned and accrued at the date of 1191
withdrawal from service. The retirement allowance shall begin on 1192
the first of the month following the date the member's application 1193
for the allowance is received by the board, but in no event before 1194
withdrawal from service. 1195
(2) Any member who became a member of the system on or 1196
after July 1, 2007, but before March 1, 2026, whose withdrawal 1197
from service occurs before attaining the age of sixty (60) years 1198
who has completed eight (8) or more years of membership service 1199
and has not received a refund of his accumulated contributions, 1200
shall be entitled to receive a retirement allowance, beginning 1201
upon his attaining the age of sixty (60) years, of the amount 1202
earned and accrued at the date of withdrawal from service. The 1203
retirement allowance shall begin on the first of the month 1204
following the date the member's application for the allowance is 1205
received by the board, but in no event before withdrawal from 1206
service. 1207
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(3) Any member who became a member of the system on or 1208
after March 1, 2026, whose withdrawal from service occurs before 1209
attaining the age of sixty-two (62) years who has completed eight 1210
(8) or more years of membership service and has not received a 1211
refund of his accumulated contributions, shall be entitled to 1212
receive a retirement allowance, beginning upon his attaining the 1213
age of sixty-two (62) years, of the amount earned and accrued at 1214
the date of withdrawal from service. The retirement allowance 1215
shall begin on the first of the month following the date the 1216
member's application for the allowance is received by the board, 1217
but in no event before withdrawal from service. 1218
(c) Any member in service who has qualified for retirement 1219
benefits may select any optional method of settlement of 1220
retirement benefits by notifying the Executive Director of the 1221
Board of Trustees of the Public Employees' Retirement System in 1222
writing, on a form prescribed by the board, of the option he has 1223
selected and by naming the beneficiary of the option and 1224
furnishing necessary proof of age. The option, once selected, may 1225
be changed at any time before actual retirement or death, but upon 1226
the death or retirement of the member, the optional settlement 1227
shall be placed in effect upon proper notification to the 1228
executive director. 1229
(d) Any member who became a member of the system before July 1230
1, 2011, shall be entitled to an annual retirement allowance which 1231
shall consist of: 1232
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(1) A member's annuity, which shall be the actuarial 1233
equivalent of the accumulated contributions of the member at the 1234
time of retirement computed according to the actuarial table in 1235
use by the system; and 1236
(2) An employer's annuity, which, together with the 1237
member's annuity provided above, shall be equal to two percent 1238
(2%) of the average compensation for each year of service up to 1239
and including twenty-five (25) years of creditable service, and 1240
two and one-half percent (2-1/2%) of the average compensation for 1241
each year of service exceeding twenty-five (25) years of 1242
creditable service. 1243
(3) Any retired member or beneficiary thereof who was 1244
eligible to receive a retirement allowance before July 1, 1991, 1245
and who is still receiving a retirement allowance on July 1, 1992, 1246
shall receive an increase in the annual retirement allowance of 1247
the retired member equal to one-eighth of one percent (1/8 of 1%) 1248
of the average compensation for each year of state service in 1249
excess of twenty-five (25) years of membership service up to and 1250
including thirty (30) years. The maximum increase shall be 1251
five-eighths of one percent (5/8 of 1%). In no case shall a 1252
member who has been retired before July 1, 1987, receive less than 1253
Ten Dollars ($10.00) per month for each year of creditable service 1254
and proportionately for each quarter year thereof. Persons 1255
retired on or after July 1, 1987, shall receive at least Ten 1256
Dollars ($10.00) per month for each year of service and 1257
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proportionately for each quarter year thereof reduced for the 1258
option selected. However, such Ten Dollars ($10.00) minimum per 1259
month for each year of creditable service shall not apply to a 1260
retirement allowance computed under Section 25-11-114 based on a 1261
percentage of the member's average compensation. 1262
(e) Any member who became a member of the system on or after 1263
July 1, 2011, but before March 1, 2026, shall be entitled to an 1264
annual retirement allowance which shall consist of: 1265
(1) A member's annuity, which shall be the actuarial 1266
equivalent of the accumulated contributions of the member at the 1267
time of retirement computed according to the actuarial table in 1268
use by the system; and 1269
(2) An employer's annuity, which, together with the 1270
member's annuity provided above, shall be equal to two percent 1271
(2%) of the average compensation for each year of service up to 1272
and including thirty (30) years of creditable service, and two and 1273
one-half percent (2-1/2%) of average compensation for each year of 1274
service exceeding thirty (30) years of creditable service. 1275
(f) Any member who became a member of the system on or after 1276
July 1, 2011, but before March 1, 2026, upon withdrawal from 1277
service upon or after attaining the age of sixty (60) years who 1278
has completed at least eight (8) years of membership service, or 1279
any such member upon withdrawal from service regardless of age who 1280
has completed at least thirty (30) years of creditable service, 1281
shall be entitled to receive a retirement allowance computed in 1282
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accordance with the formula set forth in subsection (e) of this 1283
section. In the case of the retirement of any member who has 1284
attained age sixty (60) but who has not completed at least thirty 1285
(30) years of creditable service, the retirement allowance shall 1286
be computed in accordance with the formula set forth in subsection 1287
(e) of this section except that the total annual retirement 1288
allowance shall be reduced by an actuarial equivalent factor for 1289
each year of creditable service below thirty (30) years or the 1290
number of years in age that the member is below age sixty-five 1291
(65), whichever is less. 1292
(g) Any member who became a member of the system on or after 1293
March 1, 2026, upon withdrawal from service upon or after 1294
attainment of the age of sixty-five (65) years who has completed 1295
at least eight (8) years of membership service, or upon withdrawal 1296
from service at the age of sixty-two (62) who has completed at 1297
least thirty (30) years of creditable service, or upon withdrawal 1298
from service regardless of age who has completed at least 1299
thirty-five (35) years of creditable service, shall be entitled to 1300
an annual retirement allowance which shall consist of a member's 1301
annuity, which annuity shall be equal to one percent (1%) of the 1302
average compensation for each year of creditable service. In the 1303
case of the retirement of any member who has attained the age of 1304
sixty-two (62) but has not completed at least thirty (30) years of 1305
creditable service, the total annual retirement allowance 1306
specified in this subsection (g) shall be reduced by an actuarial 1307
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equivalent factor for each year of creditable service below thirty 1308
(30) years or the number of years in age that the member is below 1309
age sixty-five (65), whichever is less. 1310
(h) No member, except members excluded by the Age 1311
Discrimination in Employment Act Amendments of 1986 (Public Law 1312
99-592), under either Article 1 or Article 3 in state service 1313
shall be required to retire because of age. 1314
(i) No payment on account of any benefit granted under the 1315
provisions of this section shall become effective or begin to 1316
accrue until January 1, 1953. 1317
(j) (1) A retiree or beneficiary may, on a form prescribed 1318
by and filed with the retirement system, irrevocably waive all or 1319
a portion of any benefits from the retirement system to which the 1320
retiree or beneficiary is entitled. The waiver shall be binding 1321
on the heirs and assigns of any retiree or beneficiary and the 1322
same must agree to forever hold harmless the Public Employees' 1323
Retirement System of Mississippi from any claim to the waived 1324
retirement benefits. 1325
(2) Any waiver under this subsection shall apply only 1326
to the person executing the waiver. A beneficiary shall be 1327
entitled to benefits according to the option selected by the 1328
member at the time of retirement. However, a beneficiary may, at 1329
the option of the beneficiary, execute a waiver of benefits under 1330
this subsection. 1331
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(3) The retirement system shall retain in the annuity 1332
reserve account amounts that are not used to pay benefits because 1333
of a waiver executed under this subsection. 1334
(4) The board of trustees may provide rules and 1335
regulations for the administration of waivers under this 1336
subsection. 1337
SECTION 7. Section 25-11-112, Mississippi Code of 1972, is 1338
brought forward as follows: 1339
25-11-112. (1) Any member who became a member of the system 1340
before March 1, 2026, and is receiving a retirement allowance for 1341
service or disability retirement, or any beneficiary thereof, who 1342
has received a monthly benefit for at least one (1) full fiscal 1343
year, shall be eligible to receive an additional benefit, on 1344
December 1 or July 1 of the year as provided in subsection (3) of 1345
this section, equal to an amount calculated under paragraph (a) or 1346
(b) below: 1347
(a) For any member who became a member of the system 1348
before July 1, 2011, the sum of: 1349
(i) An amount equal to three percent (3%) of the 1350
annual retirement allowance multiplied by the number of full 1351
fiscal years in retirement before the end of the fiscal year in 1352
which the member reaches age fifty-five (55), plus 1353
(ii) An additional amount equal to three percent 1354
(3%) compounded by the number of full fiscal years in retirement 1355
beginning with the fiscal year in which the member reaches age 1356
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fifty-five (55), multiplied by the amount of the annual retirement 1357
allowance. 1358
(b) For any member who became a member of the system on 1359
or after July 1, 2011, but before March 1, 2026, the sum of: 1360
(i) An amount equal to three percent (3%) of the 1361
annual retirement allowance multiplied by the number of full 1362
fiscal years in retirement before the end of the fiscal year in 1363
which the member reaches age sixty (60), plus 1364
(ii) An additional amount equal to three percent 1365
(3%) compounded by the number of full fiscal years in retirement 1366
beginning with the fiscal year in which the member reaches age 1367
sixty (60), multiplied by the amount of the annual retirement 1368
allowance. 1369
(2) The calculation of the beneficiary's additional benefit 1370
under subsection (1)(a) or (b) of this section shall be based on 1371
the member's age and full fiscal years in retirement as if the 1372
member had lived. 1373
(3) (a) The additional benefit provided for under this 1374
section shall be paid in one (1) payment in December of each year 1375
to those persons who are receiving a retirement allowance on 1376
December 1 of that year, unless an election is made under this 1377
subsection. However, if a retiree who is receiving a retirement 1378
allowance that will terminate upon the retiree's death is 1379
receiving the additional benefit in one (1) payment and dies on or 1380
after July 1 but before December 1, the beneficiary designated on 1381
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the retirement application, if any, shall receive in a single 1382
payment a fractional part of the additional benefit based on the 1383
number of months in which a retirement allowance was received 1384
during the fiscal year. Likewise, if a retiree is receiving a 1385
retirement allowance that will terminate upon his or her death in 1386
two (2) to six (6) monthly installments, any remaining payments of 1387
the additional benefit will be paid in a lump sum to the 1388
beneficiary designated on the application, or if none, pursuant to 1389
Section 25-11-117.1(1). Any similar remaining payments of 1390
additional benefits payable under this section to a deceased 1391
beneficiary who was receiving a monthly benefit shall be payable 1392
in accordance with the provisions of Section 25-11-117.1(2). If 1393
the additional monthly benefit is being received in one (1) 1394
payment, the additional benefit shall also be prorated based on 1395
the number of months in which a retirement allowance was received 1396
during the fiscal year when (i) the monthly benefit payable to a 1397
beneficiary terminates due to the expiration of an option, 1398
remarriage or cessation of dependent status or due to the 1399
retiree's return to covered employment, and (ii) the monthly 1400
benefit terminates on or after July 1 and before December 1. The 1401
board may, in its discretion, allow a retired member or a 1402
beneficiary thereof who is receiving the additional annual payment 1403
in the manner provided for in this paragraph to change the manner 1404
in which the additional annual payment is received to that 1405
provided for in paragraph (b) of this subsection if the retired 1406
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member or beneficiary submits satisfactory documentation that the 1407
continued receipt of the additional annual payment as provided for 1408
in this paragraph will cause a financial hardship to the retired 1409
member or beneficiary. 1410
(b) Retired members or beneficiaries thereof who on 1411
July 1, 1999, or July 1 of any fiscal year thereafter, are 1412
receiving a retirement allowance, may elect by an irrevocable 1413
agreement in writing filed in the Office of the Public Employees' 1414
Retirement System no less than thirty (30) days before July 1 of 1415
the appropriate year, to begin receiving the additional benefit 1416
provided for under this section in twelve (12) equal monthly 1417
installments beginning July 1, 1999, or July 1 of any fiscal year 1418
thereafter. This irrevocable agreement shall be binding on the 1419
member and subsequent beneficiaries. Payment of those monthly 1420
installments shall not extend beyond the month in which a 1421
retirement allowance is due and payable. The board may, in its 1422
discretion, allow a retired member or a beneficiary thereof who is 1423
receiving the additional annual payment in the manner provided for 1424
in this paragraph to change the manner in which the additional 1425
annual payment is received to that provided for in paragraph (a) 1426
of this subsection if the retired member or beneficiary submits 1427
satisfactory documentation that the continued receipt of the 1428
additional annual payment as provided for in this paragraph will 1429
cause a financial hardship to the retired member or beneficiary. 1430
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(4) The additional payment or payments provided for under 1431
this section are for the fiscal year in which they are paid. 1432
(5) (a) The amount provided for under subsection (1) 1433
(a)(ii) of this section is calculated using the following formula: 1434
[(1.03)n - 1] x [annual retirement allowance], 1435
where n is the number of full fiscal years in retirement beginning 1436
with the fiscal year in which the member reaches age fifty-five 1437
(55). 1438
(b) The amount provided for under subsection (1)(b)(ii) 1439
of this section is calculated using the following formula: 1440
[(1.03)n - 1] x [annual retirement allowance], 1441
where n is the number of full fiscal years in retirement beginning 1442
with the fiscal year in which the member reaches age sixty (60). 1443
(6) Any retired member or beneficiary thereof who has 1444
previously elected to receive the additional annual payment in 1445
monthly installments may elect, upon application on a form 1446
prescribed by the board of trustees, to have that payment made in 1447
one (1) additional payment each year. This written election must 1448
be filed in the Office of the Public Employees' Retirement System 1449
before June 1, 2000, and shall be effective for the fiscal year 1450
beginning July 1, 2000. 1451
(7) In the event of death of a retired member or a 1452
beneficiary thereof who is receiving the additional annual payment 1453
in two (2) to six (6) monthly installments pursuant to an election 1454
made before July 1, 1999, and who would otherwise be eligible to 1455
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receive the additional benefit provided for under this section in 1456
one (1) payment in December of the current fiscal year, any 1457
remaining amounts shall be paid in a lump sum to the designated 1458
beneficiary. 1459
(8) When a member retires after July 1 and has previously 1460
received a retirement allowance for one or more full fiscal years, 1461
the retired member shall be eligible immediately for the 1462
additional benefit. The additional benefit shall be based on the 1463
current retirement allowance and the number of full fiscal years 1464
in retirement and shall be prorated and paid in monthly 1465
installments based on the number of months a retirement allowance 1466
is paid during the fiscal year. 1467
(9) A member who became a member of the system on or after 1468
March 1, 2026, is not entitled to the additional annual benefit 1469
under this section; however, the Legislature may provide an 1470
additional benefit for a specific year. 1471
SECTION 8. Section 25-11-113, Mississippi Code of 1972, is 1472
brought forward as follows: 1473
25-11-113. (1) (a) Upon the application of a member or his 1474
employer, any active member in state service who became a member 1475
of the system before July 1, 2007, and who has at least four (4) 1476
years of membership service credit, or any active member in state 1477
service who became a member of the system on or after July 1, 1478
2007, who has at least eight (8) years of membership service 1479
credit, may be retired by the board of trustees on the first of 1480
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the month following the date of filing the application on a 1481
disability retirement allowance, but in no event shall the 1482
disability retirement allowance begin before termination of state 1483
service, provided that the medical board, after an evaluation of 1484
medical evidence that may or may not include an actual physical 1485
examination by the medical board, certifies that the member is 1486
mentally or physically incapacitated for the further performance 1487
of duty, that the incapacity is likely to be permanent, and that 1488
the member should be retired; however, the board of trustees may 1489
accept a disability medical determination from the Social Security 1490
Administration in lieu of a certification from the medical board. 1491
If a member who has been approved for a disability retirement 1492
allowance does not terminate state service within ninety (90) days 1493
after approval, the disability retirement and the application for 1494
disability retirement shall be void. For the purposes of 1495
disability determination, the medical board shall apply the 1496
following definition of disability: the inability to perform the 1497
usual duties of employment or the incapacity to perform such 1498
lesser duties, if any, as the employer, in its discretion, may 1499
assign without material reduction in compensation, or the 1500
incapacity to perform the duties of any employment covered by the 1501
Public Employees' Retirement System (Section 25-11-101 et seq.) 1502
that is actually offered and is within the same general 1503
territorial work area, without material reduction in compensation. 1504
The employer shall be required to furnish the job description and 1505
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duties of the member. The employer shall further certify whether 1506
the employer has offered the member other duties and has complied 1507
with the applicable provisions of the Americans With Disabilities 1508
Act in affording reasonable accommodations that would allow the 1509
employee to continue employment. 1510
(b) Any member applying for a disability retirement 1511
allowance must provide sufficient objective medical evidence in 1512
support of his or her claim. All disability determinations, 1513
whether the initial examination or reexamination, shall be based 1514
on objective medical evidence. "Objective medical evidence" means 1515
reports of examinations or treatments; medical signs that are 1516
anatomical, physiological, or psychological abnormalities that are 1517
observed and documented by medical professionals; psychiatric 1518
signs that are medically demonstrable phenomena indicating 1519
specific abnormalities of behavior, affect, thought, memory, 1520
orientation, or contact with reality; or laboratory findings that 1521
are anatomical, physiological, or psychological phenomena that are 1522
shown by medically acceptable laboratory diagnostic techniques, 1523
including, but not limited to, chemical tests, electrocardiograms, 1524
electroencephalograms, X-rays, and psychological tests. 1525
Nonmedical information shall not be considered objective medical 1526
evidence. 1527
(c) Any inactive member who became a member of the 1528
system before July 1, 2007, with four (4) or more years of 1529
membership service credit, or any inactive member who became a 1530
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member of the system on or after July 1, 2007, with eight (8) or 1531
more years of membership service credit, who has withdrawn from 1532
active state service, is not eligible for a disability retirement 1533
allowance unless the disability occurs within six (6) months of 1534
the termination of active service and unless satisfactory proof is 1535
presented to the board of trustees that the disability was the 1536
direct cause of withdrawal from state service. Application for a 1537
disability retirement allowance must be filed within one (1) year 1538
of termination from active service. This period may be extended 1539
by an additional year if it can be factually demonstrated to the 1540
satisfaction of the board of trustees that throughout the initial 1541
one-year period the member was incapable of applying for benefits 1542
by reason of mental or physical impairment as certified by a 1543
medical doctor. 1544
(d) Any member who is or becomes eligible for service 1545
retirement benefits under Section 25-11-111 while pursuing a 1546
disability retirement allowance under this section or Section 1547
25-11-114 may elect to receive a service retirement allowance 1548
pending a final determination on eligibility for a disability 1549
retirement allowance or withdrawal of the application for the 1550
disability retirement allowance. In such a case, an application 1551
for a disability retirement allowance must be on file with the 1552
system before the beginning of a service retirement allowance. If 1553
the application is approved, the option selected and beneficiary 1554
designated on the retirement application shall be used to 1555
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determine the disability retirement allowance. If the application 1556
is not approved or if the application is withdrawn, the service 1557
retirement allowance shall continue to be paid in accordance with 1558
the option selected. No person may apply for a disability 1559
retirement allowance after the person begins to receive a service 1560
retirement allowance. 1561
(e) If the medical board certifies that the member is 1562
not mentally or physically incapacitated for the future 1563
performance of duty, the member may request, within sixty (60) 1564
days, a hearing before the hearing officer as provided in Section 1565
25-11-120. All hearings shall be held in accordance with rules 1566
and regulations adopted by the board to govern those hearings. 1567
The hearing may be closed upon the request of the member. 1568
(f) The medical board may request additional medical 1569
evidence and/or other physicians to conduct an evaluation of the 1570
member's condition. If the medical board requests additional 1571
medical evidence and the member refuses the request, the 1572
application shall be considered void. 1573
(2) Allowance on disability retirement. 1574
(a) Upon retirement for disability, an eligible member 1575
shall receive a retirement allowance if he has attained the age of 1576
sixty (60) years. 1577
(b) Except as provided in paragraph (c) of this 1578
subsection (2), an eligible member who is retired for disability 1579
and who has not attained sixty (60) years of age shall receive a 1580
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disability benefit as computed in Section 25-11-111(d), which 1581
shall consist of: 1582
(i) A member's annuity, which shall be the 1583
actuarial equivalent of his accumulated contributions at the time 1584
of retirement; and 1585
(ii) An employer's annuity equal to the amount 1586
that would have been payable as a retirement allowance for 1587
eligible creditable service if the member had continued in service 1588
to the age of sixty (60) years, which shall apply to the allowance 1589
for disability retirement paid to retirees receiving such 1590
allowance upon and after April 12, 1977. This employer's annuity 1591
shall be computed on the basis of the average "earned 1592
compensation" as defined in Section 25-11-103. 1593
(c) For persons who become members after June 30, 1992, 1594
and for active members on June 30, 1992, who elect benefits under 1595
this paragraph (c) instead of those provided under paragraph (b) 1596
of this subsection (2), the disability allowance shall consist of 1597
two (2) parts: a temporary allowance and a deferred allowance. 1598
The temporary allowance shall equal the greater of (i) forty 1599
percent (40%) of average compensation at the time of disability, 1600
plus ten percent (10%) of average compensation for each of the 1601
first two (2) dependent children, as defined in Sections 25-11-103 1602
and 25-11-114, or (ii) the accrued benefit based on actual 1603
service. It shall be payable for a period of time based on the 1604
member's age at disability, as follows: 1605
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Age at Disability Duration 1606
60 and earlier to age 65 1607
61 to age 66 1608
62 to age 66 1609
63 to age 67 1610
64 to age 67 1611
65 to age 68 1612
66 to age 68 1613
67 to age 69 1614
68 to age 70 1615
69 and over one year 1616
The deferred allowance shall begin when the temporary 1617
allowance ends and shall be payable for life. The deferred 1618
allowance shall equal the greater of (i) the allowance that would 1619
have been payable had the member continued in service to the 1620
termination age of the temporary allowance, but no more than forty 1621
percent (40%) of average compensation, or (ii) the accrued benefit 1622
based on actual service at the time of disability. The deferred 1623
allowance as determined at the time of disability shall be 1624
adjusted in accordance with Section 25-11-112 for the period 1625
during which the temporary annuity is payable. In no case shall a 1626
member receive less than Ten Dollars ($10.00) per month for each 1627
year of service and proportionately for each quarter year thereof 1628
reduced for the option selected. 1629
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(d) The member may elect to receive the actuarial 1630
equivalent of the disability retirement allowance in a reduced 1631
allowance payable throughout life under any of the provisions of 1632
the options provided under Section 25-11-115. 1633
(e) If a disability retiree who has not selected an 1634
option under Section 25-11-115 dies before being repaid in 1635
disability benefits the sum of his total contributions, then his 1636
named beneficiary shall receive the difference in cash, which 1637
shall apply to all deceased disability retirees from and after 1638
January 1, 1953. 1639
(3) Reexamination of retirees retired on account of 1640
disability. Except as otherwise provided in this section, once 1641
each year during the first five (5) years following retirement of 1642
a member on a disability retirement allowance, and once in every 1643
period of three (3) years thereafter, the board of trustees may, 1644
and upon his application shall, require any disability retiree who 1645
has not yet attained the age of sixty (60) years or the 1646
termination age of the temporary allowance under subsection (2)(c) 1647
of this section to undergo a medical examination, the examination 1648
to be made at the place of residence of the retiree or other place 1649
mutually agreed upon by a physician or physicians designated by 1650
the board. The board, however, in its discretion, may authorize 1651
the medical board to establish reexamination schedules appropriate 1652
to the medical condition of individual disability retirees. If 1653
any disability retiree who has not yet attained the age of sixty 1654
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(60) years or the termination age of the temporary allowance under 1655
subsection (2)(c) of this section refuses to submit to any medical 1656
examination provided in this section, his allowance may be 1657
discontinued until his withdrawal of that refusal; and if his 1658
refusal continues for one (1) year, all his rights to a disability 1659
benefit shall be revoked by the board of trustees. 1660
(4) If the medical board reports and certifies to the board 1661
of trustees, after a comparable job analysis or other similar 1662
study, that the disability retiree is engaged in, or is able to 1663
engage in, a gainful occupation paying more than the difference 1664
between his disability allowance, exclusive of cost-of-living 1665
adjustments, and the average compensation, and if the board of 1666
trustees concurs in the report, the disability benefit shall be 1667
reduced to an amount that, together with the amount earnable by 1668
him, equals the amount of his average compensation. If his 1669
earning capacity is later changed, the amount of the benefit may 1670
be further modified, provided that the revised benefit shall not 1671
exceed the amount originally granted. A retiree receiving a 1672
disability benefit who is restored to active service at a salary 1673
less than the average compensation shall not become a member of 1674
the retirement system. 1675
(5) If a disability retiree under the age of sixty (60) 1676
years or the termination age of the temporary allowance under 1677
subsection (2)(c) of this section is restored to active service at 1678
a compensation not less than his average compensation, his 1679
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disability benefit shall end, he shall again become a member of 1680
the retirement system, and contributions shall be withheld and 1681
reported. Any such prior service certificate, on the basis of 1682
which his service was computed at the time of retirement, shall be 1683
restored to full force and effect. In addition, upon his later 1684
retirement he shall be credited with all creditable service as a 1685
member, but the total retirement allowance paid to the retired 1686
member in his previous retirement shall be deducted from his 1687
retirement reserve and taken into consideration in recalculating 1688
the retirement allowance under a new option selected. 1689
(6) If following reexamination in accordance with the 1690
provisions contained in this section, the medical board determines 1691
that a retiree retired on account of disability is physically and 1692
mentally able to return to the employment from which he is 1693
retired, the board of trustees, upon certification of those 1694
findings from the medical board, shall, after a reasonable period 1695
of time, terminate the disability allowance, whether or not the 1696
retiree is reemployed or seeks that reemployment. In addition, if 1697
the board of trustees determines that the retiree is no longer 1698
sustaining a loss of income as established by documented evidence 1699
of the retiree's earned income, the eligibility for a disability 1700
allowance shall terminate and the allowance terminated within a 1701
reasonable period of time. If the retirement allowance is 1702
terminated under the provisions of this section, the retiree may 1703
later qualify for a retirement allowance under Section 25-11-111 1704
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based on actual years of service credit plus credit for the period 1705
during which a disability allowance was paid. 1706
(7) Any current member as of June 30, 1992, who retires on a 1707
disability retirement allowance after June 30, 1992, and who has 1708
not elected to receive benefits under subsection (2)(c) of this 1709
section, shall relinquish all rights under the Age Discrimination 1710
in Employment Act of 1967, as amended, with regard to the benefits 1711
payable under this section. 1712
SECTION 9. Section 25-11-114, Mississippi Code of 1972, is 1713
brought forward as follows: 1714
25-11-114. (1) The applicable benefits provided in 1715
subsections (2) and (3) of this section shall be paid to eligible 1716
beneficiaries of any member who became a member of the system 1717
before July 1, 2007, and has completed four (4) or more years of 1718
membership service, or who became a member of the system on or 1719
after July 1, 2007, and has completed eight (8) or more years of 1720
membership service, and who dies before retirement and who has not 1721
filed a Pre-Retirement Optional Retirement Form as provided in 1722
Section 25-11-111. 1723
(2) (a) The surviving spouse of a member who dies before 1724
retirement shall receive a monthly benefit computed in accordance 1725
with paragraph (d) of this subsection (2) as if the member had 1726
nominated his spouse as beneficiary if: 1727
(i) The member completed the requisite minimum 1728
number of years of membership service to qualify for a retirement 1729
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allowance at age sixty (60), for any member who became a member of 1730
the system before March 1, 2026, or at age sixty-two (62), for any 1731
member who became a member of the system on or after March 1, 1732
2026; 1733
(ii) The spouse has been married to the member for 1734
not less than one (1) year preceding the death of the member; 1735
(iii) The member has not exercised any other 1736
option. 1737
(b) If, at the time of the member's death, there are no 1738
dependent children, and the surviving spouse, who otherwise would 1739
receive the annuity under this subsection (2), has filed with the 1740
system a signed written waiver of his or her rights to the annuity 1741
and that waiver was in effect at the time of the member's death, a 1742
lump-sum distribution of the deceased member's accumulated 1743
contributions shall be refunded in accordance with Section 1744
25-11-117. 1745
(c) The spouse annuity shall begin on the first day of 1746
the month following the date of the member's death, but in case of 1747
late filing, retroactive payments will be made for a period of not 1748
more than one (1) year. 1749
(d) The spouse of a member who is eligible to receive a 1750
monthly benefit under paragraph (a) of this subsection (2) shall 1751
receive a benefit for life equal to the higher of the following: 1752
(i) The greater of twenty percent (20%) of the 1753
deceased member's average compensation as defined in Section 1754
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25-11-103 at the time of death or Fifty Dollars ($50.00) monthly; 1755
or 1756
(ii) Benefits calculated under Option 2 of Section 1757
25-11-115. The method of calculating the retirement benefits 1758
shall be on the same basis as provided in Section 25-11-111(d), 1759
(e) or (g), as applicable. However, if the member dies before 1760
being qualified for a full, unreduced retirement allowance, then 1761
the benefits shall be reduced by an actuarially determined 1762
percentage or factor based on the lesser of either the number of 1763
years of service credit or the number of years in age required to 1764
qualify for a full, unreduced retirement allowance in Section 1765
25-11-111(d), (e) or (g), as applicable. 1766
(e) The surviving spouse of a deceased member who 1767
previously received spouse retirement benefits under paragraph 1768
(d)(i) of this subsection from and after July 1, 1992, and whose 1769
benefits were terminated before July 1, 2004, because of 1770
remarriage, may again receive the retirement benefits authorized 1771
under paragraph (d)(i) of this subsection by making application 1772
with the board to reinstate those benefits. Any reinstatement of 1773
the benefits shall be prospective only and shall begin after the 1774
first of the month following the date of the application for 1775
reinstatement, but no earlier than July 1, 2004. From and after 1776
July 1, 2010, any spouse who chose Option 2 from and after July 1, 1777
1992, but before July 1, 2004, where the benefit, although payable 1778
for life, was less than the benefit available under the 1779
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calculation in paragraph (d)(i) of this subsection shall have his 1780
or her benefit increased to the amount which provides the greater 1781
benefit. 1782
(3) (a) Subject to the maximum limitation provided in this 1783
paragraph, the member's dependent children each shall receive an 1784
annuity of the greater of ten percent (10%) of the member's 1785
average compensation as defined in Section 25-11-103 at the time 1786
of the death of the member or Fifty Dollars ($50.00) monthly; 1787
however, if there are more than three (3) dependent children, each 1788
dependent child shall receive an equal share of a total annuity 1789
equal to thirty percent (30%) of the member's average 1790
compensation, provided that the total annuity shall not be less 1791
than One Hundred Fifty Dollars ($150.00) per month for all 1792
children. 1793
(b) A child shall be considered to be a dependent child 1794
until marriage, or the attainment of age nineteen (19), whichever 1795
comes first; however, this age limitation shall be extended beyond 1796
age nineteen (19), but in no event beyond the attainment of age 1797
twenty-three (23), as long as the child is a student regularly 1798
pursuing a full-time course of resident study or training in an 1799
accredited high school, trade school, technical or vocational 1800
institute, junior or community college, college, university or 1801
comparable recognized educational institution duly licensed by a 1802
state. A student child who is receiving a retirement allowance as 1803
of June 30, 2016, whose birthday falls during the school year 1804
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(September 1 through June 30) is considered not to reach age 1805
twenty-three (23) until the July 1 following the actual 1806
twenty-third birthday. A full-time course of resident study or 1807
training means a day or evening noncorrespondence course that 1808
includes school attendance at the rate of at least thirty-six (36) 1809
weeks per academic year or other applicable period with a subject 1810
load sufficient, if successfully completed, to attain the 1811
educational or training objective within the period generally 1812
accepted as minimum for completion, by a full-time day student, of 1813
the academic or training program concerned. Any child who is 1814
physically or mentally incompetent, as adjudged by either a 1815
Mississippi court of competent jurisdiction or by the board, shall 1816
receive benefits for as long as the incompetency exists. 1817
(c) If there are more than three (3) dependent 1818
children, upon a child's ceasing to be a dependent child, his 1819
annuity shall terminate and there shall be a redetermination of 1820
the amounts payable to any remaining dependent children. 1821
(d) Annuities payable under this subsection (3) shall 1822
begin the first day of the month following the date of the 1823
member's death or in case of late filing, retroactive payments 1824
will be made for a period of not more than one (1) year. Those 1825
benefits may be paid to a surviving parent or the lawful custodian 1826
of a dependent child for the use and benefit of the child without 1827
the necessity of appointment as guardian. 1828
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(4) (a) Death benefits in the line of duty. Regardless of 1829
the number of years of the member's creditable service, the spouse 1830
and/or the dependent children of an active member who is killed or 1831
dies as a direct result of a physical injury sustained from an 1832
accident or a traumatic event caused by external violence or 1833
physical force occurring in the line of performance of duty shall 1834
qualify, on approval of the board, for a retirement allowance on 1835
the first of the month following the date of death, but in the 1836
case of late filing, retroactive payments will be made for a 1837
period of not more than one (1) year. The spouse shall receive a 1838
retirement allowance for life equal to one-half (1/2) of the 1839
average compensation as defined in Section 25-11-103. In addition 1840
to the retirement allowance for the spouse, or if there is no 1841
surviving spouse, the member's dependent child shall receive a 1842
retirement allowance in the amount of one-fourth (1/4) of the 1843
member's average compensation as defined in Section 25-11-103; 1844
however, if there are two (2) or more dependent children, each 1845
dependent child shall receive an equal share of a total annuity 1846
equal to one-half (1/2) of the member's average compensation. If 1847
there are more than two (2) dependent children, upon a child's 1848
ceasing to be a dependent child, his annuity shall terminate and 1849
there shall be a redetermination of the amounts payable to any 1850
remaining dependent children. Those benefits shall cease to be 1851
paid for the support and maintenance of each child upon the child 1852
attaining the age of nineteen (19) years; however, the spouse 1853
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shall continue to be eligible for the aforesaid retirement 1854
allowance. Those benefits may be paid to a surviving parent or 1855
lawful custodian of the children for the use and benefit of the 1856
children without the necessity of appointment as guardian. Any 1857
spouse who received spouse retirement benefits under this 1858
paragraph (a) from and after April 4, 1984, and whose benefits 1859
were terminated before July 1, 2004, because of remarriage, may 1860
again receive the retirement benefits authorized under this 1861
paragraph (a) by making application with the board to reinstate 1862
those benefits. Any reinstatement of the benefits shall be 1863
prospective only and shall begin after the first of the month 1864
following the date of the application for reinstatement, but not 1865
earlier than July 1, 2004. 1866
(b) A child shall be considered to be a dependent child 1867
until marriage, or the attainment of age nineteen (19), whichever 1868
comes first; however, this age limitation shall be extended beyond 1869
age nineteen (19), but in no event beyond the attainment of age 1870
twenty-three (23), as long as the child is a student regularly 1871
pursuing a full-time course of resident study or training in an 1872
accredited high school, trade school, technical or vocational 1873
institute, junior or community college, college, university or 1874
comparable recognized educational institution duly licensed by a 1875
state. A student child who is receiving a retirement allowance as 1876
of June 30, 2016, whose birthday falls during the school year 1877
(September 1 through June 30) is considered not to reach age 1878
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twenty-three (23) until the July 1 following the actual 1879
twenty-third birthday. A full-time course of resident study or 1880
training means a day or evening noncorrespondence course that 1881
includes school attendance at the rate of at least thirty-six (36) 1882
weeks per academic year or other applicable period with a subject 1883
load sufficient, if successfully completed, to attain the 1884
educational or training objective within the period generally 1885
accepted as minimum for completion, by a full-time day student, of 1886
the academic or training program concerned. Any child who is 1887
physically or mentally incompetent, as adjudged by either a 1888
Mississippi court of competent jurisdiction or by the board, shall 1889
receive benefits for as long as the incompetency exists. 1890
(5) If all the annuities provided for in this section 1891
payable on account of the death of a member terminate before there 1892
has been paid an aggregate amount equal to the member's 1893
accumulated contributions standing to the member's credit in the 1894
annuity savings account at the time of the member's death, the 1895
difference between the accumulated contributions and the aggregate 1896
amount of annuity payments shall be paid to the person that the 1897
member has nominated by written designation duly executed and 1898
filed with the board. If there is no designated beneficiary 1899
surviving at termination of benefits, the difference shall be 1900
payable under Section 25-11-117.1(1). 1901
(6) Regardless of the number of years of creditable service, 1902
upon the application of a member or employer, any active member 1903
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who becomes disabled as a direct result of a physical injury 1904
sustained from an accident or traumatic event caused by external 1905
violence or physical force occurring in the line of performance of 1906
duty, provided that the medical board or other designated 1907
governmental agency after a medical examination certifies that the 1908
member is mentally or physically incapacitated for the further 1909
performance of duty and the incapacity is likely to be permanent, 1910
may be retired by the board of trustees on the first of the month 1911
following the date of filing the application but in no event shall 1912
the retirement allowance begin before the termination of state 1913
service. If a member who has been approved for a retirement 1914
allowance under this subsection does not terminate state service 1915
within ninety (90) days after the approval, the retirement 1916
allowance and the application for the allowance shall be void. 1917
The retirement allowance shall equal the allowance on disability 1918
retirement as provided in Section 25-11-113 but shall not be less 1919
than fifty percent (50%) of average compensation. Line of duty 1920
disability benefits under this section shall be administered in 1921
accordance with the provisions of Section 25-11-113(1)(b), (c), 1922
(d), (e) and (f), (3), (4), (5) and (6). 1923
(7) For purposes of determining death or disability benefits 1924
under this section, the following shall apply: 1925
(a) Death or permanent and total disability resulting 1926
from a cardiovascular, pulmonary or musculoskeletal condition that 1927
was not a direct result of a physical injury sustained from an 1928
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accident or a traumatic event caused by external violence or 1929
physical force occurring in the performance of duty shall be 1930
deemed a natural death or an ordinary disability. 1931
(b) A mental disability based exclusively on employment 1932
duties occurring on an ongoing basis shall be deemed an ordinary 1933
disability. 1934
(8) If the deceased or disabled member has less than four 1935
(4) years of membership service, the average compensation as 1936
defined in Section 25-11-103 shall be the average of all annual 1937
earned compensation in state service for the purposes of benefits 1938
provided in this section. 1939
(9) In case of death or total and permanent disability under 1940
subsection (4) or subsection (6) of this section and before the 1941
board shall consider any application for a retirement allowance, 1942
the employer must certify to the board that the member's death or 1943
disability was a direct result of an accident or a traumatic event 1944
occurring during and as a result of the performance of the regular 1945
and assigned duties of the employee and that the death or 1946
disability was not the result of the willful negligence of the 1947
employee. 1948
(10) The application for the retirement allowance must be 1949
filed within one (1) year after death of an active member who is 1950
killed in the line of performance of duty or dies as a direct 1951
result of an accident occurring in the line of performance of duty 1952
or traumatic event; but the board of trustees may consider an 1953
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application for disability filed after the one-year period if it 1954
can be factually demonstrated to the satisfaction of the board of 1955
trustees that the disability is due to the accident and that the 1956
filing was not accomplished within the one-year period due to a 1957
delayed manifestation of the disability or to circumstances beyond 1958
the control of the member. However, in case of late filing, 1959
retroactive payments will be made for a period of not more than 1960
one (1) year only. 1961
(11) (a) Notwithstanding any other section of this article 1962
and in lieu of any payments to a designated beneficiary for a 1963
refund of contributions under Section 25-11-117, the spouse and/or 1964
children shall be eligible for the benefits payable under this 1965
section, and the spouse may elect, for both the spouse and/or 1966
children, to receive benefits in accordance with either 1967
subsections (2) and (3) or subsection (4) of this section; 1968
otherwise, the contributions to the credit of the deceased member 1969
shall be refunded in accordance with Section 25-11-117. 1970
(b) Notwithstanding any other section of this article, 1971
a spouse who is entitled to receive a monthly benefit under either 1972
subsection (2) or (4) of this section and who is also the named 1973
beneficiary for a refund of accumulated contributions in the 1974
member's annuity savings account, may, after the death of the 1975
member, elect to receive a refund of accumulated contributions in 1976
lieu of a monthly allowance, provided that there are no dependent 1977
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children entitled to benefits under subsection (3) of this 1978
section. 1979
(12) If the member has previously received benefits from the 1980
system to which he was not entitled and has not repaid in full all 1981
amounts payable by him to the system, the annuity amounts 1982
otherwise provided by this section shall be withheld and used to 1983
effect repayment until the total of the withholdings repays in 1984
full all amounts payable by him to the system. 1985
SECTION 10. Section 25-11-115, Mississippi Code of 1972, is 1986
brought forward as follows: 1987
25-11-115. (1) Upon application for superannuation or 1988
disability retirement, any member may elect to receive his or her 1989
benefit in a retirement allowance payable throughout life with no 1990
further payments to anyone at the member's death, except that if 1991
the member's total retirement payments under this article do not 1992
equal the member's total contributions under this article, the 1993
named beneficiary shall receive the difference in cash at the 1994
member's death. Or the member may elect upon retirement, or upon 1995
becoming eligible for retirement, to receive the actuarial 1996
equivalent subject to the provisions of subsection (3) of this 1997
section of his or her retirement allowance in a reduced retirement 1998
allowance payable throughout life with the provision that: 1999
Option 1. If the retired member dies before he or she has 2000
received in annuity payment the value of the member's annuity 2001
savings account as it was at the time of the member's retirement, 2002
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the balance shall be paid to the legal representative or to such 2003
person as the member has nominated by written designation duly 2004
acknowledged and filed with the board; 2005
Option 2. Upon the retired member's death, his or her 2006
reduced retirement allowance shall be continued throughout the 2007
life of, and paid to, such person as the member has nominated by 2008
written designation duly acknowledged and filed with the board of 2009
trustees at the time of his or her retirement; 2010
Option 3. Upon the retired member's death, one-half (1/2) of 2011
his or her reduced retirement allowance shall be continued 2012
throughout the life of, and paid to, such person as the member has 2013
nominated by written designation duly acknowledged and filed with 2014
the board of trustees at the time of his or her retirement, and 2015
the other one-half (1/2) of his or her reduced retirement 2016
allowance to some other designated beneficiary; 2017
Option 4. Upon the retired member's death, three-fourths 2018
(3/4) of his or her reduced retirement allowance, or such other 2019
specified amount, shall be continued throughout the life of, and 2020
paid to, such person as the member has nominated by written 2021
designation duly acknowledged and filed with the board of trustees 2022
at the time of his or her retirement; 2023
Option 4-A. Upon the retired member's death, one-half (1/2) 2024
of his or her reduced retirement allowance, or such other 2025
specified amount, shall be continued throughout the life of, and 2026
paid to, such person as the member has nominated by written 2027
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designation duly acknowledged and filed with the board of trustees 2028
at the time of his or her retirement; 2029
Option 4-B. A reduced retirement allowance shall be 2030
continued throughout the life of the retirant, but with the 2031
further guarantee of payments to the named beneficiary or 2032
beneficiaries for a specified number of years certain. If the 2033
retired member or the last designated beneficiary both die before 2034
receiving all guaranteed payments due, the actuarial equivalent of 2035
the remaining payments shall be paid to the successors of the 2036
retired member under Section 25-11-117.1(1); 2037
Option 6. Any member who became a member of the system 2038
before July 1, 2007, and who has at least twenty-eight (28) years 2039
of creditable service at the time of retirement or who is at least 2040
sixty-three (63) years of age and eligible to retire, may select 2041
the maximum retirement benefit or an optional benefit as provided 2042
in this subsection together with a partial lump-sum distribution. 2043
Any member who became a member of the system on or after July 1, 2044
2007, but before July 1, 2011, and who has at least twenty-eight 2045
(28) years of creditable service at the time of retirement may 2046
select the maximum retirement benefit or any optional benefit as 2047
provided in this subsection together with a partial lump-sum 2048
distribution. Any member who became a member of the system on or 2049
after July 1, 2011, but before March 1, 2026, and who has at least 2050
thirty-three (33) years of creditable service at the time of 2051
retirement may select the maximum retirement benefit or any 2052
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optional benefit as provided in this subsection together with a 2053
partial lump-sum distribution. Any member who became a member of 2054
the system on or after March 1, 2026, shall not be eligible for a 2055
partial lump-sum distribution. The amount of the lump-sum 2056
distribution under this option shall be equal to the maximum 2057
monthly benefit multiplied by twelve (12), twenty-four (24) or 2058
thirty-six (36) as selected by the member. The maximum retirement 2059
benefit shall be actuarially reduced to reflect the amount of the 2060
lump-sum distribution selected and further reduced for any other 2061
optional benefit selected. The annuity and lump-sum distribution 2062
shall be computed to result in no actuarial loss to the system. 2063
The lump-sum distribution shall be made as a single payment 2064
payable at the time the first monthly annuity payment is paid to 2065
the retiree. The amount of the lump-sum distribution shall be 2066
deducted from the member's annuity savings account in computing 2067
what contributions remain at the death of the retiree and/or a 2068
beneficiary. The lump-sum distribution option may be elected only 2069
once by a member upon initial retirement, and may not be elected 2070
by a retiree, by members applying for a disability retirement 2071
annuity, or by survivors. 2072
(2) No change in the option selected shall be permitted 2073
after the member's death or after the member has received his or 2074
her first retirement check except as provided in subsections (3) 2075
and (4) of this section and in Section 25-11-127. Members who are 2076
pursuing a disability retirement allowance and simultaneously or 2077
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later elect to begin to receive a service retirement allowance 2078
while continuing to pursue a disability retirement allowance, 2079
shall not be eligible to select Option 6 and that option may not 2080
be selected at a later time if the application for a disability 2081
retirement allowance is voided or denied. However, any retired 2082
member who is receiving a retirement allowance under Option 2 or 2083
Option 4-A upon July 1, 1992, and whose designated beneficiary 2084
predeceased him or her or whose marriage to a spouse who is his or 2085
her designated beneficiary is terminated by divorce or other 2086
dissolution, upon written notification to the retirement system of 2087
the death of the designated beneficiary or of the termination of 2088
the retired member's marriage to the designated beneficiary, the 2089
retirement allowance payable to the member after receipt of that 2090
notification by the retirement system shall be equal to the 2091
retirement allowance that would have been payable if the member 2092
had not elected the option. In addition, any retired member who 2093
is receiving the maximum retirement allowance for life, a 2094
retirement allowance under Option 1 or who is receiving a 2095
retirement allowance under Option 2 or Option 4-A on July 1, 1992, 2096
may elect to provide survivor benefits under Option 2 or Option 2097
4-A to a spouse who was not previously the member's beneficiary 2098
and whom the member married before July 1, 1992. 2099
(3) Any retired member who is receiving a reduced retirement 2100
allowance under Option 2, Option 4 or Option 4-A whose designated 2101
beneficiary predeceases him or her, or whose marriage to a spouse 2102
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who is his or her designated beneficiary is terminated by divorce 2103
or other dissolution, may elect to cancel the reduced retirement 2104
allowance and receive the maximum retirement allowance for life in 2105
an amount equal to the amount that would have been payable if the 2106
member had not elected Option 2, Option 4 or Option 4-A. That 2107
election must be made in writing to the office of the executive 2108
director of the system on a form prescribed by the board. Any 2109
such election shall be effective the first of the month following 2110
the date the election is received by the system; however, the 2111
election may be applied retroactively for not more than three (3) 2112
months but no earlier than the first of the month following the 2113
date of the death of the beneficiary. 2114
(4) Any retired member who is receiving the maximum 2115
retirement allowance for life, or a retirement allowance under 2116
Option 1, and who marries after his or her retirement may elect to 2117
cancel the maximum retirement allowance and receive a reduced 2118
retirement allowance under Option 2, Option 4 or Option 4-A to 2119
provide continuing lifetime benefits to his or her spouse. That 2120
election must be made in writing to the office of the executive 2121
director of the system on a form prescribed by the board not 2122
earlier than the date of the marriage and not later than one (1) 2123
year from the date of the marriage. Any such election shall be 2124
effective the first of the month following the date the election 2125
is received by the system. 2126
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(5) (a) Except as otherwise provided in this subsection, if 2127
the election of an optional benefit is made after the member has 2128
attained the age of sixty-five (65) years, the actuarial 2129
equivalent factor shall be used to compute the reduced retirement 2130
allowance as if the election had been made on his or her 2131
sixty-fifth birthday; however, from and after January 1, 2003, if 2132
there is an election of Option 6 after the member has attained the 2133
age of sixty-five (65) years, the actuarial equivalent factor 2134
based on the retiree's age at the time of retirement shall be used 2135
to compute the reduced maximum monthly retirement allowance. 2136
However, if a retiree marries or remarries after retirement and 2137
elects either Option 2 or Option 4-A as provided in subsection (2) 2138
or (4) of this section, the actuarial equivalent factor used to 2139
compute the reduced retirement allowance shall be the factor for 2140
the age of the retiree and his or her beneficiary at the time such 2141
election for recalculation of benefits is made. 2142
(b) For members who retire on or after July 1, 2012, 2143
the actuarial equivalent factor used to compute the reduced 2144
retirement allowance at retirement or upon any subsequent 2145
recalculation of the benefit shall be the factor for the age of 2146
the retiree and his or her beneficiary at the time of retirement 2147
or at the time an election for recalculation of benefits is made. 2148
(6) Notwithstanding any provision of Section 25-11-1 et 2149
seq., no payments may be made for a retirement allowance on a 2150
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monthly basis for a period of time in excess of that allowed by 2151
federal law. 2152
(7) If a retirant and his or her eligible beneficiary, if 2153
any, both die before they have received in annuity payments a 2154
total amount equal to the accumulated contributions standing to 2155
the retirant's credit in the annuity savings account at the time 2156
of his or her retirement, the difference between the accumulated 2157
contributions and the total amount of annuities received by them 2158
shall be paid to such persons as the retirant has nominated by 2159
written designation duly executed and filed in the office of the 2160
executive director. If no designated person survives the retirant 2161
and his or her beneficiary, the difference, if any, shall be paid 2162
under Section 25-11-117.1(1). 2163
(8) Any retired member who retired on Option 2(5) or 4-A(5) 2164
before July 1, 1992, who is still receiving a retirement allowance 2165
on July 1, 1994, shall receive an increase in the annual 2166
retirement allowance effective July 1, 1994, equal to the amount 2167
they would have received under Option 2 or Option 4-A without a 2168
reduction for Option 5 based on the ages at retirement of the 2169
retiree and beneficiary and option factors in effect on July 1, 2170
1992. That increase shall be prospective only. 2171
SECTION 11. Section 25-11-117, Mississippi Code of 1972, is 2172
brought forward as follows: 2173
25-11-117. (1) A member may be paid a refund of the amount 2174
of accumulated contributions to the credit of the member in the 2175
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annuity savings account, provided that the member has withdrawn 2176
from state service and has not returned to state service on the 2177
date the refund of the accumulated contributions would be paid. 2178
That refund of the contributions to the credit of the member in 2179
the annuity savings account shall be paid within ninety (90) days 2180
from receipt in the office of the retirement system of the 2181
properly completed form requesting the payment. In the event of 2182
death before retirement of any member whose spouse and/or children 2183
are not entitled to a retirement allowance, the accumulated 2184
contributions to the credit of the deceased member in the annuity 2185
savings account shall be paid to the designated beneficiary on 2186
file in writing in the office of the executive director of the 2187
board of trustees within ninety (90) days from receipt of a 2188
properly completed form requesting the payment. If there is no 2189
such designated beneficiary on file for the deceased member in the 2190
office of the system, upon the filing of a proper request with the 2191
board, the contributions to the credit of the deceased member in 2192
the annuity savings account shall be refunded under Section 2193
25-11-117.1(1). The payment of the refund shall discharge all 2194
obligations of the retirement system to the member on account of 2195
any creditable service rendered by the member before the receipt 2196
of the refund. By the acceptance of the refund, the member shall 2197
waive and relinquish all accrued rights in the system. 2198
(2) Under the Unemployment Compensation Amendments of 1992 2199
(Public Law 102-318 (UCA)), a member or the spouse of a member who 2200
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is an eligible beneficiary entitled to a refund under this section 2201
may elect, on a form prescribed by the board under rules and 2202
regulations established by the board, to have an eligible rollover 2203
distribution of accumulated contributions payable under this 2204
section paid directly to an eligible retirement plan, as defined 2205
under applicable federal law, or an individual retirement account. 2206
If the member or the spouse of a member who is an eligible 2207
beneficiary makes that election and specifies the eligible 2208
retirement plan or individual retirement account to which the 2209
distribution is to be paid, the distribution will be made in the 2210
form of a direct trustee-to-trustee transfer to the specified 2211
eligible retirement plan. A nonspouse beneficiary may elect to 2212
have an eligible rollover distribution paid in the form of a 2213
direct trustee-to-trustee transfer to an individual retirement 2214
account established to receive the distribution on behalf of the 2215
nonspouse beneficiary. Flexible rollovers under this subsection 2216
shall not be considered assignments under Section 25-11-129. 2217
(3) (a) If any person who has received a refund, reenters 2218
the state service and again becomes a member of the system before 2219
July 1, 2007, the member may repay all or part of the amounts 2220
previously received as a refund, together with regular interest 2221
covering the period from the date of refund to the date of 2222
repayment; however, the amounts that are repaid by the member and 2223
the creditable service related thereto shall not be used in any 2224
benefit calculation or determination until the member has remained 2225
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a contributor to the system for a period of at least four (4) 2226
years after the member's reentry into state service. Repayment 2227
for that time shall be made beginning with the most recent service 2228
for which refund has been made. Upon the repayment of all or part 2229
of that refund and interest, the member shall again receive credit 2230
for the period of creditable service for which full repayment has 2231
been made to the system. 2232
(b) If any person who has received a refund, reenters 2233
the state service and again becomes a member of the system on or 2234
after July 1, 2007, but before March 1, 2026, the member may repay 2235
all or part of the amounts previously received as a refund, 2236
together with regular interest covering the period from the date 2237
of refund to the date of repayment; however, the amounts that are 2238
repaid by the member and the creditable service related thereto 2239
shall not be used in any benefit calculation or determination 2240
until the member has remained a contributor to the system for a 2241
period of at least eight (8) years after the member's reentry into 2242
state service. Repayment for that time shall be made beginning 2243
with the most recent service for which refund has been made. Upon 2244
the repayment of all or part of that refund and interest, the 2245
member shall again receive credit for the period of creditable 2246
service for which full repayment has been made to the system. 2247
(c) If any person who has received a refund reenters 2248
state service and again becomes a member of the system on or after 2249
March 1, 2026, the member shall not be eligible to repay any 2250
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portion of amounts previously received as a refund and may not 2251
receive creditable service for service rendered before March 1, 2252
2026. 2253
(4) (a) In order to provide a source of income to members 2254
who have applied for disability benefits under Section 25-11-113 2255
or 25-11-114, the board may provide, at the employee's election, a 2256
temporary benefit to be paid from the member's accumulated 2257
contributions, if any, without forfeiting the right to pursue 2258
disability benefits, provided that the member has exhausted all 2259
personal and medical leave and has terminated his or her 2260
employment. The board may prescribe rules and regulations for 2261
carrying out the provisions of this subsection (4). 2262
(b) If a member who has elected to receive temporary 2263
benefits under this subsection later applies for a refund of his 2264
or her accumulated contributions, all amounts paid under this 2265
subsection shall be deducted from the accumulated contributions 2266
and the balance will be paid to the member. If a member who has 2267
elected to receive temporary benefits under this subsection is 2268
later approved for a disability retirement allowance, and a 2269
service retirement allowance or survivor benefits are paid on the 2270
account, the board shall adjust the benefits in such a manner that 2271
no more than the actuarial equivalent of the benefits to which the 2272
member or beneficiary was or is entitled shall be paid. 2273
(c) The board may study, develop and propose a 2274
disability benefit structure, including short- and long-term 2275
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disability benefits, provided that it is the actuarial equivalent 2276
of the benefits currently provided in Section 25-11-113 or 2277
25-11-114. 2278
SECTION 12. Section 25-11-117.1, Mississippi Code of 1972, 2279
is brought forward as follows: 2280
25-11-117.1. (1) Except as otherwise provided in subsection 2281
(2) of this section, where benefits are payable to a designated 2282
beneficiary or beneficiaries under this article and the designated 2283
beneficiary or beneficiaries as provided by the member on the most 2284
recent form filed with the system is deceased or otherwise 2285
disqualified at the time such benefits become payable, the 2286
following persons, in descending order of precedence, shall be 2287
eligible to receive such benefits: 2288
(a) The surviving spouse of the member or retiree; 2289
(b) The children of the member or retiree or their 2290
descendants, per stirpes; 2291
(c) The brothers and sisters of the member or retiree 2292
or their descendants, per stirpes; 2293
(d) The parents of the member or retiree; 2294
(e) The executor or administrator on behalf of the 2295
member or retiree’s estate; 2296
(f) The persons entitled by law to distribution of the 2297
member or retiree’s estate. 2298
(2) Any monthly benefits payable to a beneficiary who dies 2299
prior to cashing his or her final check(s) and/or any additional 2300
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benefits payable pursuant to Section 25-11-112 still payable at 2301
the death of a beneficiary receiving monthly benefits shall be 2302
paid as follows: 2303
(a) The surviving spouse of the beneficiary; 2304
(b) The children of the beneficiary or their 2305
descendants, per stirpes; 2306
(c) The brothers and sisters of the beneficiary or 2307
their descendants, per stirpes; 2308
(d) The parents of the beneficiary; 2309
(e) The executor or administrator on behalf of the 2310
beneficiary’s estate; 2311
(f) The persons entitled by law to distribution of the 2312
beneficiary’s estate. 2313
(3) In the event no claim is made by any individual listed 2314
in subsection (2) of this section, a distribution may be made 2315
pursuant to the provisions of subsection (1) of this section. 2316
(4) Payment under the provisions of this section shall bar 2317
recovery by any other person of the benefits distributed. Payment 2318
of benefits made to one or more members of a class of individuals 2319
are made on behalf of all members of the class. Any members of 2320
the class coming forward after payment is made must look to those 2321
who received the payment. 2322
SECTION 13. Section 25-11-119, Mississippi Code of 1972, is 2323
brought forward as follows: 2324
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25-11-119. (1) The board shall keep such data as shall be 2325
necessary for actuarial valuation of the assets and liabilities of 2326
the system and for checking its operating experience. 2327
(2) The board shall keep minutes which shall be open to 2328
public inspection. It shall have the accounts of the system 2329
audited annually by the State Audit Department and shall publish 2330
as of the end of each fiscal year a report showing the fiscal 2331
transactions of the system for the preceding fiscal year, the 2332
amount of the accumulated cash and securities of the system, a 2333
statement of income and expenditures, a statement of investments 2334
acquired and disposed of, and a balance sheet showing the 2335
financial condition of the system by means of an actuarial 2336
valuation of its assets and liabilities. It shall also publish a 2337
synopsis of the report. 2338
(3) The board shall establish a general office for the 2339
meeting of the board and for the administrative personnel; provide 2340
for the installation of an adequate system of books, accounts, and 2341
records which will give effect to all requirements of Articles 1 2342
and 3; and credit all assets received by the funds according to 2343
the purposes for which they are held. All books, accounts and 2344
records shall be kept in the general office of the board and shall 2345
be public records except for individual member records. The 2346
system shall not disclose the name, address or contents of any 2347
individual member records without the prior written consent of the 2348
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individual to whom the record pertains, except as authorized by 2349
regulations of the board. 2350
(4) The board shall hold regular meetings at least quarterly 2351
in each year and such special meetings as may be deemed necessary. 2352
All meetings shall be open to the public. 2353
(5) The board shall have power to make contracts, and to sue 2354
and be sued, under the name of the Board of Trustees of the Public 2355
Employees' Retirement System of Mississippi. 2356
(6) Legal advisor. The Attorney General shall be the legal 2357
advisor of the board; and the board may employ counsel when 2358
needed. 2359
(7) Medical board. The board may designate a medical board 2360
to be composed of three (3) physicians or may contract with 2361
another governmental agency or nongovernmental disability 2362
determination service that is qualified to make disability 2363
determinations. If required, other physicians may be engaged to 2364
report on special cases. The medical board or other governmental 2365
or nongovernmental disability determination service agency so 2366
designated shall arrange for, and pass upon, all medical 2367
examinations required under the provisions of this article; shall 2368
investigate all essential statements and certificates by or on 2369
behalf of a member in connection with an application for 2370
disability retirement; and shall report in writing to the board of 2371
trustees its conclusions and recommendations upon all the matters 2372
referred to it. 2373
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(8) Duties of actuary. The board of trustees shall 2374
designate an actuary who shall be the technical advisor of the 2375
board on matters regarding the operation of the system, and shall 2376
perform such other duties as are required in connection therewith. 2377
(9) At least once in each two-year period, the actuary shall 2378
make an actuarial survey of the mortality, service, withdrawal and 2379
compensation experience of the members and beneficiaries of the 2380
retirement system, and shall make a valuation of the assets and 2381
liabilities of the system. Taking into account the result of such 2382
investigation and valuation, the board of trustees shall adopt for 2383
the retirement system such mortality, service, and other tables as 2384
shall be deemed necessary. On the basis of such tables as the 2385
board of trustees shall adopt, the actuary shall make valuations 2386
of the assets and liabilities of the funds of the system. 2387
SECTION 14. Section 25-11-120, Mississippi Code of 1972, is 2388
brought forward as follows: 2389
25-11-120. (1) Any individual aggrieved by an 2390
administrative determination, including a determination of the 2391
medical board, relating to the eligibility for or payment of 2392
benefits, or the calculation of creditable service or other 2393
similar matters relating to the Public Employees' Retirement 2394
System or any other retirement system or program administered by 2395
the board, may request a hearing before a hearing officer 2396
designated by the board. Such hearings shall be conducted in 2397
accordance with rules and regulations adopted by the board and 2398
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formal rules of evidence shall not apply. The hearing officer is 2399
authorized to administer oaths, hear testimony of witnesses and 2400
receive documentary and other evidence. In case of disability 2401
appeals, the hearing officer shall have the authority to defer a 2402
decision in order to request a medical evaluation or test or 2403
additional existing medical records not previously furnished by 2404
the claimant. After the hearing and the receipt of any additional 2405
medical evidence requested by the hearing officer, the hearing 2406
officer shall certify the record to the board, which shall include 2407
the hearing officer's proposed statement of facts, conclusions of 2408
law and recommendation. The record may include a taped recording 2409
of the proceedings of the hearing in lieu of a transcribed copy of 2410
the proceedings. The board shall receive the record and make its 2411
determination based solely on matters contained therein. 2412
(2) Any individual aggrieved by the determination of the 2413
board may appeal to the Circuit Court of the First Judicial 2414
District of Hinds County, Mississippi, in accordance with the 2415
Uniform Circuit Court Rules governing appeals to the circuit court 2416
in civil cases. Such appeal shall be made solely on the record 2417
before the board and this procedure shall be the exclusive method 2418
of appealing determinations of the board. 2419
(3) The board is authorized to appoint a committee of the 2420
board to serve as hearing officer or to employ or contract with 2421
qualified personnel to perform the duties of hearing officer and 2422
court reporter as may be necessary for conducting, recording and 2423
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transcribing such hearings. The board may assess and collect fees 2424
to offset costs related to such hearings. Those fees shall be 2425
deposited to the credit of the Public Employees' Retirement 2426
System. 2427
(4) Interest shall not be paid on any benefits, including, 2428
but not limited to, benefits that are delayed as a result of an 2429
administrative determination or an appeal from an administrative 2430
determination. 2431
SECTION 15. Section 25-11-121, Mississippi Code of 1972, is 2432
brought forward as follows: 2433
25-11-121. (1) The board shall, from time to time, 2434
determine the current requirements for benefit payments and 2435
administrative expense which shall be maintained as a cash working 2436
balance, except that such cash working balance shall not exceed at 2437
any time an amount necessary to meet the current obligations of 2438
the system for a period of ninety (90) days. Any amounts in 2439
excess of such cash working balance shall be invested, as follows: 2440
(a) Funds may be deposited in any institution insured 2441
by the Federal Deposit Insurance Corporation that maintains a 2442
facility that takes deposits in the State of Mississippi or a 2443
custodial bank; 2444
(b) Corporate bonds and taxable municipal bonds; or 2445
corporate short-term obligations of corporations or of wholly 2446
owned subsidiaries of corporations, whose short-term obligations 2447
are rated A-2 or better by Standard and Poor's, rated P-2 or 2448
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better by Moody's Investment Service, F-2 or better by Fitch 2449
Ratings, Ltd., or the equivalent of these ratings if assigned by 2450
another United States Securities and Exchange Commission 2451
designated Nationally Recognized Statistical Rating Organization; 2452
(c) Agency and nonagency residential and commercial 2453
mortgage-backed securities and collateralized mortgage 2454
obligations; 2455
(d) Asset-backed securities; 2456
(e) Bank loans; 2457
(f) Convertible bonds; 2458
(g) Bonds of the Tennessee Valley Authority; 2459
(h) Bonds, notes, certificates and other valid 2460
obligations of the United States, and other valid obligations of 2461
any federal instrumentality that issues securities under authority 2462
of an act of Congress and are exempt from registration with the 2463
Securities and Exchange Commission; 2464
(i) Bonds, notes, debentures and other securities 2465
issued by any federal instrumentality and fully guaranteed by the 2466
United States; 2467
(j) Interest-bearing revenue bonds or notes or bonds or 2468
notes which are general obligations of any state in the United 2469
States or of any city or county therein; 2470
(k) Bonds of established non-United States companies 2471
and foreign government securities. The board may take requisite 2472
action to effectuate or hedge transactions or invest in currency 2473
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through foreign or domestic banks, including the purchase and 2474
sale, transfer, exchange, or otherwise disposal of, and generally 2475
deal in foreign exchange through the use of foreign currency, 2476
interbank forward contracts, futures contracts, options contracts, 2477
swaps and other related derivative instruments, notwithstanding 2478
any other provisions of this article to the contrary; 2479
(l) Shares of stocks, common and/or preferred, of 2480
corporations created by or existing under the laws of the United 2481
States or any state, district or territory thereof and shares of 2482
stocks, common and/or preferred, and convertible securities of 2483
non-United States companies; provided: 2484
(i) The maximum investments in stocks shall not 2485
exceed eighty percent (80%) of the total book value of the total 2486
investment fund of the system; 2487
(ii) The stock of such corporation shall: 2488
1. Be listed on a national stock exchange; or 2489
2. Be traded in the over-the-counter market; 2490
(iii) The outstanding shares of such corporation 2491
shall have a total market value of not less than Fifty Million 2492
Dollars ($50,000,000.00); 2493
(iv) The amount of investment in any one (1) 2494
corporation shall not exceed three percent (3%) of the book value 2495
of the assets of the system; 2496
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(v) The shares of any one (1) corporation owned by 2497
the system shall not exceed five percent (5%) of that 2498
corporation's outstanding stock. 2499
The board may take requisite action utilizing foreign 2500
currency as an investment vehicle, or to effectuate or hedge 2501
transactions for shares of stocks and convertible securities of 2502
non-United States companies through foreign or domestic banks, 2503
including the purchase and sale, transfer, exchange, or otherwise 2504
disposal of, and generally deal in foreign exchange through the 2505
use of foreign currency, interbank forward contracts, futures 2506
contracts, options contracts, swaps and other related derivative 2507
instruments, notwithstanding any other provisions of this article 2508
to the contrary; 2509
(m) Covered call and put options on securities or 2510
indices traded on one or more of the regulated exchanges; 2511
(n) Pooled or commingled funds managed by a corporate 2512
trustee or by a Securities and Exchange Commission registered 2513
investment advisory firm retained as an investment manager by the 2514
board of trustees, and shares of investment companies and unit 2515
investment trusts registered under the Investment Company Act of 2516
1940, where such pooled or commingled funds or shares are 2517
comprised of common or preferred stocks, bonds, money market 2518
instruments or other investments authorized under this section. 2519
Such investment in commingled funds or shares shall be held in 2520
trust; provided that the total book value of investments under 2521
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this paragraph shall at no time exceed five percent (5%) of the 2522
total book value of all investments of the system. Any investment 2523
manager approved by the board of trustees shall invest such 2524
commingled funds or shares as a fiduciary; 2525
(o) Pooled or commingled real estate funds or real 2526
estate securities managed by a corporate trustee or by a 2527
Securities and Exchange Commission registered investment advisory 2528
firm retained as an investment manager by the board of trustees. 2529
Such investment in commingled funds or shares shall be held in 2530
trust; provided that the total book value of investments under 2531
this paragraph shall at no time exceed ten percent (10%) of the 2532
total book value of all investments of the system. Any investment 2533
manager approved by the board of trustees shall invest such 2534
commingled funds or shares as a fiduciary. The ten percent (10%) 2535
limitation in this paragraph shall not be subject to the five 2536
percent (5%) limitation in paragraph (n) of this subsection; 2537
(p) Types of investments not specifically authorized by 2538
this subsection if the investments are in the form of a separate 2539
account managed by a Securities and Exchange Commission registered 2540
investment advisory firm retained as an investment manager by the 2541
board; or a limited partnership or commingled fund approved by the 2542
board; provided that the total book value of investments under 2543
this paragraph shall at no time exceed twenty percent (20%) of the 2544
total book value of all investments of the system. Any person or 2545
entity who exercises any discretionary authority or discretionary 2546
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control respecting management of the separate account, limited 2547
partnership or commingled fund, or who exercises any authority or 2548
control respecting management or disposition of the assets of the 2549
separate account, limited partnership or commingled fund, shall 2550
exercise such authority or control as a fiduciary. 2551
(2) All investments shall be acquired at prices not 2552
exceeding the prevailing market values for such investments. 2553
(3) Any limitations herein set forth shall be applicable 2554
only at the time of purchase and shall not require the liquidation 2555
of any investment at any time. All investments shall be clearly 2556
marked to indicate ownership by the system and to the extent 2557
possible shall be registered in the name of the system. 2558
(4) Subject to the above terms, conditions, limitations and 2559
restrictions, the board shall have power to sell, assign, transfer 2560
and dispose of any of the securities and investments of the 2561
system, provided that said sale, assignment or transfer has the 2562
majority approval of the entire board. The board may employ or 2563
contract with investment managers, evaluation services or other 2564
such services as determined by the board to be necessary for the 2565
effective and efficient operation of the system. 2566
(5) Except as otherwise provided herein, no trustee and no 2567
employee of the board shall have any direct or indirect interest 2568
in the income, gains or profits of any investment made by the 2569
board, nor shall any such person receive any pay or emolument for 2570
his services in connection with any investment made by the board. 2571
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No trustee or employee of the board shall become an endorser or 2572
surety, or in any manner an obligor for money loaned by or 2573
borrowed from the system. 2574
(6) All interest derived from investments and any gains from 2575
the sale or exchange of investments shall be credited by the board 2576
to the account of the system. 2577
(7) The board of trustees shall credit regular interest to 2578
the annuity savings account monthly. Regular interest shall mean 2579
such per centum rate to be compounded annually as set by the board 2580
of trustees through regulation. 2581
(8) The board of trustees shall be the custodian of the 2582
funds of the system. All retirement allowance payrolls shall be 2583
certified by the executive director who shall furnish the board a 2584
surety bond in a company authorized to do business in Mississippi 2585
in such an amount as shall be required by the board, the premium 2586
to be paid by the board from the expense account. 2587
(9) For the purpose of meeting disbursements for retirement 2588
allowances, annuities and other payments, cash may be kept 2589
available, not exceeding the requirements of the system for a 2590
period of ninety (90) days, on deposit in one or more banks or 2591
trust companies organized under the laws of the State of 2592
Mississippi or the laws of the United States, provided that the 2593
sum on deposit in any one (1) bank or trust company shall not 2594
exceed thirty-five percent (35%) of the paid-up capital and 2595
regular surplus of such bank or trust company. 2596
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(10) The board, the executive director and employees shall 2597
discharge their duties with respect to the investments of the 2598
system solely for the interest of the system with the care, skill, 2599
prudence and diligence under the circumstances then prevailing 2600
that a prudent investor acting in a like capacity and familiar 2601
with such matters would use in the conduct of an enterprise of a 2602
like character and with like aims, including diversifying the 2603
investments of the system so as to minimize the risk of large 2604
losses, unless under the circumstances it is clearly prudent not 2605
to do so. 2606
(11) Documentary material or data made or received by the 2607
system which consists of trade secrets or commercial or financial 2608
information that relates to the investments of the system shall be 2609
exempt from the Mississippi Public Records Act of 1983 if the 2610
disclosure of the material or data is likely to impair the 2611
system's ability to obtain such information in the future, or is 2612
likely to cause substantial harm to the competitive position of 2613
the person or entity from whom the information was obtained. 2614
SECTION 16. Section 25-11-123, Mississippi Code of 1972, is 2615
brought forward as follows: 2616
25-11-123. All of the assets of the system shall be credited 2617
according to the purpose for which they are held to one (1) of 2618
four (4) reserves; namely, the annuity savings account, the 2619
annuity reserve, the employer's accumulation account, and the 2620
expense account; however, any employee who became a member of the 2621
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system on or after March 1, 2026, shall also have a defined 2622
contribution plan administered by the system, as provided in 2623
Section 25-11-147. 2624
(a) Annuity savings account. In the annuity savings 2625
account shall be accumulated the contributions made by members to 2626
provide for their annuities, including interest thereon which 2627
shall be posted monthly. Credits to and charges against the 2628
annuity savings account shall be made as follows: 2629
(1) Beginning July 1, 2010, except as otherwise 2630
provided in Section 25-11-126, the employer shall cause to be 2631
deducted from the salary of each member on each and every payroll 2632
of the employer for each and every payroll period nine percent 2633
(9%) of earned compensation as defined in Section 25-11-103; 2634
however, for any employee who became a member of the system on or 2635
after March 1, 2026, only four percent (4%) of such earned 2636
compensation shall be deposited into the annuity savings account, 2637
with the remaining five percent (5%), to be deposited into the 2638
employee's defined contribution account authorized in Section 2639
25-11-147. Future contributions shall be fixed biennially by the 2640
board on the basis of the liabilities of the retirement system for 2641
the various allowances and benefits as shown by actuarial 2642
valuation; however, any member earning at a rate less than Sixteen 2643
Dollars and Sixty-seven Cents ($16.67) per month, or Two Hundred 2644
Dollars ($200.00) per year, shall contribute not less than One 2645
Dollar ($1.00) per month, or Twelve Dollars ($12.00) per year. 2646
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(2) The deductions provided in paragraph (1) of 2647
this subsection shall be made notwithstanding that the minimum 2648
compensation provided by law for any member is reduced by the 2649
deduction. Every member shall be deemed to consent and agree to 2650
the deductions made and provided for in paragraph (1) of this 2651
subsection and shall receipt for his full salary or compensation, 2652
and payment of salary or compensation less the deduction shall be 2653
a full and complete discharge and acquittance of all claims and 2654
demands whatsoever for the services rendered by the person during 2655
the period covered by the payment, except as to the benefits 2656
provided under Articles 1 and 3. The board shall provide by rules 2657
for the methods of collection of contributions from members and 2658
the employer. The board shall have full authority to require the 2659
production of evidence necessary to verify the correctness of 2660
amounts contributed. 2661
(b) Annuity reserve. The annuity reserve shall be the 2662
account representing the actuarial value of all annuities in 2663
force, and to it shall be charged all annuities and all benefits 2664
in lieu of annuities, payable as provided in this article. If a 2665
beneficiary retired on account of disability is restored to active 2666
service with a compensation not less than his average final 2667
compensation at the time of his last retirement, the remainder of 2668
his contributions shall be transferred from the annuity reserve to 2669
the annuity savings account and credited to his individual account 2670
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therein, and the balance of his annuity reserve shall be 2671
transferred to the employer's accumulation account. 2672
(c) Employer's accumulation account. The employer's 2673
accumulation account shall represent the accumulation of all 2674
reserves for the payment of all retirement allowances and other 2675
benefits payable from contributions made by the employer, and 2676
against this account shall be charged all retirement allowances 2677
and other benefits on account of members. Credits to and charges 2678
against the employer's accumulation account shall be made as 2679
follows: 2680
(1) On account of each member who became a member 2681
of the system before March 1, 2026, there shall be paid monthly 2682
into the employer's accumulation account by the employers for the 2683
preceding fiscal year an amount equal to a certain percentage of 2684
the total earned compensation, as defined in Section 25-11-103, of 2685
each member. From and after May 9, 2024, the increase in the 2686
employer's contribution rate scheduled to take effect on July 1, 2687
2024, is rescinded and shall not take effect; however, on July 1 2688
of each year from 2024 through 2028, the employer's contribution 2689
rate shall be increased by one-half percent (1/2%). For each 2690
member who became a member of the system on or after March 1, 2691
2026, except as provided in Section 25-11-147, the employer's 2692
monthly payment under this paragraph (1) shall be applied to the 2693
accrued liability contribution fund. 2694
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(2) For the public good, any recommendation by the 2695
board to adjust the employer contributions may be accompanied by 2696
at least two (2) assessments from actuaries who are independent 2697
from each other and the retirement plan. The actuaries shall 2698
analyze the economic impact of any such recommendation to the 2699
system and state, including, but not limited to, information 2700
showing the fiscal impact to every agency and arm of the state, 2701
including, but not limited to, state agencies, cities, counties 2702
and school districts. The actuarial assessments, with any such 2703
recommendation to adjust the employer contributions, shall be 2704
submitted to the Lieutenant Governor, Speaker of the House, 2705
Chairman of the Senate Appropriations Committee and Chairman of 2706
the House Appropriations Committee. 2707
(3) The board shall have the authority to make 2708
recommendations regarding additional funding sources for the 2709
retirement plan, including employer contribution increases, based 2710
on the assets and liabilities of the retirement plan, and the 2711
analyses required by paragraph (2) of this subsection (c). The 2712
Legislature shall have the sole authority to implement any such 2713
recommendations. It is the intent of the Legislature that, in the 2714
2025 Regular Session, a law be enacted to create a new tier for 2715
future members of the system, in furtherance of the system's 2716
continued financial stability and sustainability. 2717
(4) This section shall not be construed to provide 2718
authority to reduce or eliminate any earned benefits to be 2719
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provided by the state to persons who, before July 1, 2025, are 2720
drawing a retirement allowance or are members of the system. 2721
(5) On the basis of regular interest and of such 2722
mortality and other tables as are adopted by the board of 2723
trustees, the actuary engaged by the board to make each valuation 2724
required by this article during the period over which the accrued 2725
liability contribution is payable, immediately after making that 2726
valuation, shall determine the uniform and constant percentage of 2727
the earnable compensation of each member which, if contributed by 2728
the employer on the basis of compensation of the member throughout 2729
his entire period of membership service, would be sufficient to 2730
provide for the payment of any retirement allowance payable on his 2731
account for that service. The percentage rate so determined shall 2732
be known as the "normal contribution rate." After the accrued 2733
liability contribution has ceased to be payable, the normal 2734
contribution rate shall be the percentage rate of the salary of 2735
all members obtained by deducting from the total liabilities on 2736
account of membership service the amount in the employer's 2737
accumulation account, and dividing the remainder by one percent 2738
(1%) of the present value of the prospective future salaries of 2739
all members as computed on the basis of the mortality and service 2740
tables adopted by the board of trustees and regular interest. The 2741
normal rate of contributions shall be determined by the actuary 2742
after each valuation. 2743
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(6) The total amount payable in each year to the 2744
employer's accumulation account shall not be less than the sum of 2745
the percentage rate known as the "normal contribution rate" and 2746
the "accrued liability contribution rate" of the total 2747
compensation earnable by all members during the preceding year, 2748
provided that the payment by the employer shall be sufficient, 2749
when combined with the amounts in the account, to provide the 2750
allowances and other benefits chargeable to this account during 2751
the year then current. 2752
(7) The accrued liability contribution shall be 2753
discontinued as soon as the accumulated balance in the employer's 2754
accumulation account shall equal the present value, computed on 2755
the basis of the normal contribution rate then in force, or the 2756
prospective normal contributions to be received on account of all 2757
persons who are at that time members. 2758
(8) All allowances and benefits in lieu thereof, 2759
with the exception of those payable on account of members who 2760
receive no prior service credit, payable from contributions of the 2761
employer, shall be paid from the employer's accumulation account. 2762
(9) Upon the retirement of a member, an amount 2763
equal to his retirement allowance shall be transferred from the 2764
employer's accumulation account to the annuity reserve. 2765
(10) The employer's accumulation account shall be 2766
credited with any assets authorized by law to be credited to the 2767
account. 2768
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(d) Expense account. The expense account shall be the 2769
account to which the expenses of the administration of the system 2770
shall be charged, exclusive of amounts payable as retirement 2771
allowances and as other benefits provided herein. The Legislature 2772
shall make annual appropriations in amounts sufficient to 2773
administer the system, which shall be credited to this account. 2774
There shall be transferred to the State Treasury from this 2775
account, not less than once per month, an amount sufficient for 2776
payment of the estimated expenses of the system for the succeeding 2777
thirty (30) days. Any interest earned on the expense account 2778
shall accrue to the benefit of the system. However, 2779
notwithstanding the provisions of Sections 25-11-15(10) and 2780
25-11-105(f)(v)5, all expenses of the administration of the system 2781
shall be paid from the interest earnings, provided the interest 2782
earnings are in excess of the actuarial interest assumption as 2783
determined by the board, and provided the present cost of the 2784
administrative expense fee of two percent (2%) of the 2785
contributions reported by the political subdivisions and 2786
instrumentalities shall be reduced to one percent (1%) from and 2787
after July 1, 1983, through June 30, 1984, and shall be eliminated 2788
thereafter. 2789
(e) Collection of contributions. The employer shall 2790
cause to be deducted on each and every payroll of a member for 2791
each and every payroll period, beginning subsequent to January 31, 2792
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1953, the contributions payable by the member as provided in 2793
Articles 1 and 3. 2794
The employer shall make deductions from salaries of employees 2795
as provided in Articles 1 and 3 and shall transmit monthly, or at 2796
such time as the board of trustees designates, the amount 2797
specified to be deducted to the Executive Director of the Public 2798
Employees' Retirement System. The executive director, after 2799
making a record of all those receipts, shall deposit such amounts 2800
as provided by law. 2801
(f) (1) The sum of the normal contribution rate and 2802
the accrued liability contribution rate shall be known as the 2803
"employer's contribution rate." 2804
(2) The amount payable by the employer on account 2805
of normal and accrued liability contributions shall be determined 2806
by applying the employer's contribution rate to the amount of 2807
compensation earned by employees who are members of the system. 2808
Monthly, or at such time as the board of trustees designates, each 2809
department or agency shall compute the amount of the employer's 2810
contribution payable, with respect to the salaries of its 2811
employees who are members of the system, and shall cause that 2812
amount to be paid to the board of trustees from the personal 2813
service allotment of the amount appropriated for the operation of 2814
the department or agency, or from funds otherwise available to the 2815
agency, for the payment of salaries to its employees. 2816
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(3) Except as otherwise provided in Section 2817
25-11-106: 2818
(i) Constables shall pay employer and 2819
employee contributions on their net fee income as well as the 2820
employee contributions on all direct treasury or county payroll 2821
income. 2822
(ii) The county shall be responsible for the 2823
employer contribution on all direct treasury or county payroll 2824
income of constables. 2825
(4) Except as otherwise provided in Section 2826
25-11-106.1, chancery and circuit clerks shall be responsible for 2827
both the employer and employee share of contributions on the 2828
proportionate share of net income attributable to fees, as well as 2829
the employee share of net income attributable to direct treasury 2830
or county payroll income, and the employing county shall be 2831
responsible for the employer contributions on the net income 2832
attributable to direct treasury or county payroll income. 2833
(5) Once each year, under procedures established 2834
by the system, each employer shall submit to the Public Employees' 2835
Retirement System a copy of their report to Social Security of all 2836
employees' earnings. 2837
(6) The board shall provide by rules for the 2838
methods of collection of contributions of employers and members. 2839
The amounts determined due by an agency to the various funds as 2840
specified in Articles 1 and 3 are made obligations of the agency 2841
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to the board and shall be paid as provided herein. Failure to 2842
deduct those contributions shall not relieve the employee and 2843
employer from liability thereof. Delinquent employee 2844
contributions and any accrued interest shall be the obligation of 2845
the employee and delinquent employer contributions and any accrued 2846
interest shall be the obligation of the employer. The employer 2847
may, in its discretion, elect to pay any or all of the interest on 2848
delinquent employee contributions. From and after July 1, 1996, 2849
under rules and regulations established by the board, all 2850
employers are authorized and shall transfer all funds due to the 2851
Public Employees' Retirement System electronically and shall 2852
transmit any wage or other reports by computerized reporting 2853
systems. 2854
SECTION 17. Section 25-11-126, Mississippi Code of 1972, is 2855
brought forward as follows: 2856
25-11-126. (1) Any person who has at least thirty (30) 2857
years of creditable service, who was employed as a public school 2858
teacher at the time of his or her retirement, has been retired at 2859
least ninety (90) days and is receiving a retirement allowance, 2860
and holds a standard teaching license in Mississippi, may be 2861
employed as a teacher in a public school district after 2862
retirement, and choose to continue receiving the retirement 2863
allowance under this article during his or her employment as a 2864
teacher after retirement in addition to receiving the salary 2865
authorized under this section, along with the local contribution 2866
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of the school district in which the retiree is employed, at the 2867
discretion of the school district. Any teacher who has retired 2868
with at least twenty-five (25) years of creditable service as of 2869
July 1, 2024, may also participate in this program if the teacher 2870
otherwise qualifies under this section. 2871
(2) A retired teacher may only be hired to teach in a school 2872
district designated by the Department of Education as having 2873
critical shortages and/or critical subject-area shortages, and 2874
shall hold the related standard teaching license and/or 2875
endorsements to teach in the subject area. The base compensation 2876
authorized for returning retired teachers under Section 37-19-7 2877
shall not be graduated annually in the same manner as teachers who 2878
are employed by a school district under traditional employment 2879
guidelines, but shall remain static for the entirety of his or her 2880
eligible teaching period as a retired teacher. 2881
(3) (a) A retired teacher may be employed as a teacher, 2882
continue receiving his or her retirement allowance and be a 2883
contributing member of the system without accruing additional 2884
retirement benefits for a total of five (5) years, which may be 2885
performed consecutively or intermittently. This method is 2886
designed specifically to provide funding for the system to 2887
actuarially offset any pension liability created by this section. 2888
Each school district hiring retired teachers under the authority 2889
of this section, shall make a direct payment to PERS, which shall 2890
serve as pension liability participation assessment. The pension 2891
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liability participation assessment and the retired teacher's 2892
salary for returning to work shall be determined as follows: 2893
(i) A school district shall rely on the salary 2894
schedule in Section 37-19-7 in considering the salary for a 2895
retired teacher; provided, however, that the school district may 2896
allocate up to one hundred and twenty-five percent (125%) of the 2897
amount provided under the salary schedule comparable to the 2898
teacher's years of service and license type as salary and 2899
assessment under the program. 2900
(ii) After determining the retired teacher's 2901
compensation, the school district may pay no more than fifty 2902
percent (50%) of the retired teacher's compensation as salary to 2903
the retired teacher; and 2904
(iii) The remaining fifty percent (50%) of the 2905
retired teacher's compensation as salary shall be paid by the 2906
school district to PERS as a pension liability participation 2907
assessment. 2908
(b) If a retired teacher, reemployed under the 2909
authority of this section, works in a school district for any 2910
portion of a scholastic year less than a full contractual term of 2911
traditional teachers, the time worked by the retired teacher shall 2912
constitute one (1) of the five (5) years of post retirement 2913
teaching eligibility. A retired teacher, under the authority of 2914
this section, shall be entitled to work in any applicable school 2915
district and shall not be obligated to remain in any one (1) 2916
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school district for the entirety of his or her post retirement 2917
teaching eligibility, but shall be cumulative in nature so as not 2918
to exceed five (5) years. The salary authorized under Section 2919
37-19-7 for retired teachers shall be prorated for any period 2920
worked by the retired teacher that is less than one (1) full 2921
academic year. 2922
(c) The State Department of Education shall transfer to 2923
the system the Mississippi Adequate Education Program funds of 2924
local school districts that on or after July 1, 2024, hire retired 2925
members as teachers under this section and other funds that 2926
otherwise would have been payable to the districts if the 2927
districts had not taken advantage of this section. The crediting 2928
of assets and financing shall follow the provisions of Section 2929
25-11-123. 2930
(d) Local educational agencies shall transfer to the 2931
system Mississippi Adequate Education Program funds of local 2932
school districts that on or after July 1, 2024, hire retired 2933
members as teachers under this section and other funds that 2934
otherwise would have been payable to the districts if the 2935
districts had not taken advantage of this section. The crediting 2936
of assets and financing must follow the provisions of Section 2937
25-11-123. 2938
(4) Under the authority of this section, school districts 2939
may employ retired teachers based on criteria established by the 2940
department of education for critical teacher shortage areas and 2941
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critical subject-matter areas. A school district that is not 2942
within a critical teacher shortage area may employ teachers for 2943
critical subject-matter areas. 2944
(5) A person may be hired under this section subject to the 2945
following conditions: 2946
(a) The retired member holds any teacher's professional 2947
license or certificate as may be required in Section 37-3-2, and 2948
holds the related standard teaching license and/or endorsements to 2949
teach in the applicable subject area; 2950
(b) The superintendent of the employing school district 2951
certifies in writing to the State Department of Education that the 2952
retired member has the requisite experience, training and 2953
expertise for the position to be filled; 2954
(c) The superintendent of the school district certifies 2955
or the principal of the school certifies that there was no 2956
preexisting arrangement for the person to be hired; 2957
(d) The person had a satisfactory performance review 2958
for the most recent period before retirement; and 2959
(e) The person is hired to teach in a critical 2960
subject-matter area or in a critical teacher shortage area. 2961
(6) The State Superintendent of Public Education shall 2962
report the persons who are employed under this section to the 2963
Executive Director of the Public Employees' Retirement System. 2964
(7) The department of education shall promulgate regulations 2965
that prescribe a salary schedule that reflects the provisions of 2966
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this section. Each school district shall create a policy, 2967
approved by the local school board, related to the hiring of 2968
retired teachers and including, but not limited to, the hiring of 2969
full- and part-time retired teacher employees under this section 2970
and Section 25-11-127. 2971
(8) Any retired teacher who returns to work in accordance 2972
with this section shall not be eligible to return to work under 2973
the provisions of Section 25-11-127. 2974
SECTION 18. Section 25-11-127, Mississippi Code of 1972, is 2975
brought forward as follows: 2976
25-11-127. (1) (a) No person who is being paid a 2977
retirement allowance or a pension after retirement under this 2978
article shall be employed or paid for any service by the State of 2979
Mississippi, including services as an employee, contract worker, 2980
contractual employee or independent contractor, until the retired 2981
person has been retired for not less than ninety (90) consecutive 2982
days from his or her effective date of retirement. After the 2983
person has been retired for not less than ninety (90) consecutive 2984
days from his or her effective date of retirement or such later 2985
date as established by the board, he or she may be reemployed 2986
while being paid a retirement allowance under the terms and 2987
conditions provided in this section or in Section 25-11-126. 2988
(b) No retiree of this retirement system who is 2989
reemployed or is reelected to office after retirement shall 2990
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continue to draw retirement benefits while so reemployed, except 2991
as provided in this section or in Section 25-11-126. 2992
(c) No person employed or elected under the exceptions 2993
provided for in this section shall become a member under Article 3 2994
of the retirement system. 2995
(2) Except as otherwise provided in Section 25-11-126, any 2996
person who has been retired under the provisions of Article 3 and 2997
who is later reemployed in service covered by this article shall 2998
cease to receive benefits under this article and shall again 2999
become a contributing member of the retirement system. When the 3000
person retires again, if the reemployment exceeds six (6) months, 3001
the person shall have his or her benefit recomputed, including 3002
service after again becoming a member, provided that the total 3003
retirement allowance paid to the retired member in his or her 3004
previous retirement shall be deducted from the member's retirement 3005
reserve and taken into consideration in recalculating the 3006
retirement allowance under a new option selected. 3007
(3) The board shall have the right to prescribe rules and 3008
regulations for carrying out the provisions of this section. 3009
(4) The provisions of this section shall not be construed to 3010
prohibit any retiree, regardless of age, from being employed and 3011
drawing a retirement allowance either: 3012
(a) For a period of time not to exceed one-half (1/2) 3013
of the normal working days for the position in any fiscal year 3014
during which the retiree will receive no more than one-half (1/2) 3015
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of the salary in effect for the position at the time of 3016
employment, or 3017
(b) For a period of time in any fiscal year sufficient 3018
in length to permit a retiree to earn not in excess of twenty-five 3019
percent (25%) of retiree's average compensation. 3020
To determine the normal working days for a position under 3021
paragraph (a) of this subsection, the employer shall determine the 3022
required number of working days for the position on a full-time 3023
basis and the equivalent number of hours representing the 3024
full-time position. The retiree then may work up to one-half 3025
(1/2) of the required number of working days or up to one-half 3026
(1/2) of the equivalent number of hours and receive up to one-half 3027
(1/2) of the salary for the position. In the case of employment 3028
with multiple employers, the limitation shall equal one-half (1/2) 3029
of the number of days or hours for a single full-time position. 3030
Notice shall be given in writing to the executive director, 3031
setting forth the facts upon which the employment is being made, 3032
and the notice shall be given within five (5) days from the date 3033
of employment and also from the date of termination of the 3034
employment. 3035
(5) Except as otherwise provided in subsection (6) of this 3036
section, the employer of any person who is receiving a retirement 3037
allowance and who is employed in service covered by subsection (4) 3038
of this section as an employee or a contractual employee shall pay 3039
to the board the full amount of the employer's contribution on the 3040
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amount of compensation received by the retiree for his or her 3041
employment in accordance with regulations prescribed by the board. 3042
The retiree shall not receive any additional creditable service in 3043
the retirement system as a result of the payment of the employer's 3044
contribution. This subsection does not apply to persons who are 3045
receiving a retirement allowance and who contract with an employer 3046
to provide services as a true independent contractor, as defined 3047
by the board through regulation. 3048
(6) (a) A member may retire and continue in municipal or 3049
county elective office provided that the member has reached the 3050
age and/or service requirement that will not result in a 3051
prohibited in-service distribution as defined by the Internal 3052
Revenue Service, or a retiree may be elected to a municipal or 3053
county office, provided that the person: 3054
(i) Files annually, in writing, in the office of 3055
the employer and the office of the executive director of the 3056
system before the person takes office or as soon as possible after 3057
retirement, a waiver of all salary or compensation and elects to 3058
receive in lieu of that salary or compensation a retirement 3059
allowance as provided in this section, in which event no salary or 3060
compensation shall thereafter be due or payable for those 3061
services; however, any such officer or employee may receive, in 3062
addition to the retirement allowance, office expense allowance, 3063
mileage or travel expense authorized by any statute of the State 3064
of Mississippi; or 3065
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(ii) Elects to receive compensation for that 3066
elective office in an amount not to exceed twenty-five percent 3067
(25%) of the retiree's average compensation. In order to receive 3068
compensation as allowed in this subparagraph, the retiree shall 3069
file annually, in writing, in the office of the employer and the 3070
office of the executive director of the system, an election to 3071
receive, in addition to a retirement allowance, compensation as 3072
allowed in this subparagraph. 3073
(b) The municipality or county in which the retired 3074
person holds elective office shall pay to the board the amount of 3075
the employer's contributions on the full amount of the regular 3076
compensation for the elective office that the retired person 3077
holds. 3078
(c) As used in this subsection, the term "compensation" 3079
does not include office expense allowance, mileage or travel 3080
expense authorized by a statute of the State of Mississippi. 3081
(7) Any retired teacher who returns to work in accordance 3082
with this section shall not be eligible to return to work under 3083
the provisions of Section 25-11-126. 3084
SECTION 19. Section 25-11-133, Mississippi Code of 1972, is 3085
brought forward as follows: 3086
25-11-133. (1) The maintenance of actuarial reserves for 3087
the various allowances and benefits under Articles 1 and 3, and 3088
the payment of all annuities, retirement allowances, refunds and 3089
other benefits granted hereunder are made obligations of the 3090
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employer's accumulation accounts. All income, interest and 3091
dividends derived from deposits and investments authorized by 3092
those articles shall be used for the payment of the obligations of 3093
the system. 3094
(2) In the event of the termination of the Public Employees' 3095
Retirement System established pursuant to the provisions of 3096
Section 25-11-101 et seq., all members of the system as of the 3097
date of termination of the system shall be deemed to have a vested 3098
right to benefits to the extent and in the same manner that rights 3099
would be vested under the statute existing as of the date of 3100
termination of the system, except that any member who, because of 3101
a termination of the system has not fulfilled the requirements for 3102
length of service, shall nonetheless be entitled to compensation 3103
as of the date that such member would otherwise be eligible, with 3104
such compensation to be computed on the basis of time actually a 3105
member of the service and compensation actually earned during the 3106
time a member, in the manner now provided by statute. 3107
In the event of a deficit in the availability of funds for 3108
payment due under the provisions of the Public Employees' 3109
Retirement System, an appropriation shall be made sufficient for 3110
the payment thereof as an obligation of the state. 3111
(3) (a) Notwithstanding any provisions of this section or 3112
this title to the contrary, the maximum annual retirement 3113
allowance attributable to the employer contributions payable by 3114
the system to a member shall be subject to the limitations set 3115
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forth in Section 415 of the Internal Revenue Code and any 3116
regulations issued thereunder as applicable to governmental plans 3117
as the term is defined under Section 414(d) of the Internal 3118
Revenue Code. 3119
(b) The board is authorized to provide by rule or 3120
regulation for the payment of benefits as provided under this 3121
chapter to members or beneficiaries of the retirement system at a 3122
time and under circumstances not otherwise provided for in this 3123
chapter to the extent that the payment is required to maintain the 3124
system as a qualified retirement plan for purposes of federal 3125
income tax laws. 3126
(4) Notwithstanding any other provision of this plan, all 3127
distributions from this plan shall conform to the regulations 3128
issued under Section 401(a)(9) of the Internal Revenue Code, 3129
applicable to governmental plans, as defined in Section 414(d) of 3130
the Internal Revenue Code, including the incidental death benefit 3131
provisions of Section 401(a)(9)(G) of the Internal Revenue Code. 3132
Further, the regulations shall override any plan provision that is 3133
inconsistent with Section 401(a)(9) of the Internal Revenue Code. 3134
(5) The actuarial assumptions used to convert a retirement 3135
allowance from the normal form of payment to an optional form of 3136
payment shall be an appendix to Article 3 and subject to approval 3137
by the board based upon certification by the actuary. 3138
(6) Notwithstanding any other provision of this plan, the 3139
maximum compensation that can be considered for all plan purposes 3140
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shall not be greater than that allowed under Section 401(a)(17) of 3141
the Internal Revenue Code. 3142
SECTION 20. Section 25-11-147, Mississippi Code of 1972, is 3143
brought forward as follows: 3144
25-11-147. (1) Each person becoming a member of the system 3145
on or after March 1, 2026, shall have, in addition to the defined 3146
benefit plan under this article, a defined contribution plan 3147
meeting the requirements of Section 401(a) of the Internal Revenue 3148
Code. A portion of the employee's contributions shall be 3149
deposited into the employee's defined contribution account, as 3150
provided in Section 25-11-123, and in addition, the employer may 3151
elect to contribute an amount up to the maximum pretax amount 3152
allowable under federal law for plans under Section 401(a) of the 3153
Internal Revenue Code. Members shall be vested immediately in the 3154
defined contribution plan. 3155
(2) (a) Pursuant to Section 401(a) of the Internal Revenue 3156
Code, the board may establish a defined contribution, qualified 3157
plan under which a portion of the employee's mandatory 3158
contributions shall be deposited and which meets all requirements 3159
under federal and state law. To the extent state law conflicts 3160
with federal law, federal law shall govern the plan document to 3161
maintain the federal tax qualified status. The board, in its 3162
fiduciary capacity, may seek approval from the Internal Revenue 3163
Service. 3164
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(b) The administration of the defined contribution plan 3165
shall be under the direction of the system. The defined 3166
contribution plan shall be operated in accordance with the 3167
guidelines established by the Internal Revenue Service for Section 3168
401(a) plans as reflected in the plan document, as may be modified 3169
from time to time by the board of trustees, and including optional 3170
variable employer contributions and a process for hardship 3171
withdrawals by members. Payroll reductions shall be made, in each 3172
instance, by the appropriate payroll officer. The administrator 3173
of the defined contribution plan may contract with a private 3174
corporation or institution for providing consolidated billing and 3175
other administrative services if deemed necessary by the 3176
administrator. 3177
(c) The board of trustees may assess the employer an 3178
amount, out of the employer's contribution rate under Section 3179
25-11-123, up to two-tenths percent (0.2%) of the participant's 3180
total earned compensation as defined in Section 25-11-103 to 3181
provide for the administrative expenses of operating the defined 3182
contribution plan, including, but not limited to, the services of 3183
auditors, consultants, money managers and third-party 3184
administrators. 3185
(3) Each participating member shall direct the investment of 3186
the individual's accumulated employer and employee contributions 3187
and earnings to one or more investment choices within available 3188
categories of investment provided by the board. The board shall 3189
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provide an investment menu of investment options. In establishing 3190
the investment options, the board shall: 3191
(a) Include predetermined investment portfolio options 3192
constructed to reflect different risk profiles that automatically 3193
reallocate and rebalance contributions as a participating member 3194
ages; and 3195
(b) Allow a participating member to construct an 3196
investment portfolio using some or all of the investment options. 3197
SECTION 21. This act shall take effect and be in force from 3198
and after July 1, 2026. 3199