PERS; revise criteria and compensation scale for retired teachers who return to the teaching profession after retirement.

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To: Education;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Brown

HOUSE BILL NO. 1110

AN ACT TO AMEND SECTION 25-11-126, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE CRITERIA AND SCALE OF COMPENSATION FOR ELIGIBLE 2
RETIRED TEACHERS UNDER THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHO 3
RETURN TO THE TEACHING PROFESSION AFTER RETIREMENT; TO AMEND 4
SECTION 25-11-123, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE 5
PRECEDING PROVISIONS; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 25-11-126, Mississippi Code of 1972, is 8
amended as follows: 9
25-11-126. (1) Any person * * * who was employed as a 10
public school teacher at the time of his or her retirement, has 11
been retired at least ninety (90) days and is receiving a 12
retirement allowance, and holds a standard teaching license in 13
Mississippi, may be employed as a teacher in a public school 14
district after retirement, and choose to continue receiving the 15
retirement allowance under this article during his or her 16
employment as a teacher after retirement in addition to receiving 17
the salary authorized under this section, along with the local 18
contribution of the school district in which the retiree is 19
employed, at the discretion of the school district. Any teacher 20
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who has retired with at least twenty-five (25) years of creditable 21
service as of July 1, 2024, may also participate in this program 22
if the teacher otherwise qualifies under this section. 23
(2) A retired teacher * * * under the authority of this 24
section may * * * be hired to teach in * * * any school 25
district * * *, and shall hold the related standard teaching 26
license and/or endorsements to teach in the subject area for which 27
he or she is employed. The base compensation authorized for 28
returning retired teachers under Section 37-19-7 shall not be 29
graduated annually in the same manner as teachers who are employed 30
by a school district under traditional employment guidelines, but 31
shall remain static for the entirety of his or her * * * teaching 32
period as a retired teacher. 33
(3) (a) A retired teacher may be employed as a teacher, 34
continue receiving his or her retirement allowance and be a 35
contributing member of the system without accruing additional 36
retirement benefits * * *. 37
* * * A school district shall * * * adhere to the salary 38
schedule prescribed in Section 37-19-7 in considering the salary 39
for a retired teacher, which shall not be less than the amount 40
comparable to teacher's salary at his or her retirement as 41
determined by the teacher's years of service and license 42
type * * *. However, * * * the school district may allocate up to 43
one hundred and twenty-five percent (125%) of the amount provided 44
under the salary schedule comparable to the teacher's years of 45
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service and license type as salary and assessment under the 46
program. 47
* * * 48
(b) * * * The salary authorized under Section 37-19-7 49
for retired teachers shall be * * * adjusted accordingly to 50
reflect * * * the contractual agreement entered into by an 51
employing school district and a retired teacher * * * to perform 52
instructional responsibility on a part-time or full-time basis. 53
(c) The State Department of Education shall transfer to 54
the system the * * * total funding formula funds of local school 55
districts that on or after July 1, 2024, hire retired members as 56
teachers under this section and other funds that otherwise would 57
have been payable to the districts if the districts had not taken 58
advantage of this section. The crediting of assets and financing 59
shall follow the provisions of Section 25-11-123. 60
(d) Local educational agencies shall transfer to the 61
system * * * the total funding formula funds of local school 62
districts that on or after July 1, 2024, hire retired members as 63
teachers under this section and other funds that otherwise would 64
have been payable to the districts if the districts had not taken 65
advantage of this section. The crediting of assets and financing 66
must follow the provisions of Section 25-11-123. 67
* * * 68
( * * *4) A person may be hired under this section subject 69
to the following conditions: 70
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(a) The retired member holds any teacher's professional 71
license or certificate as may be required in Section 37-3-2, and 72
holds the related standard teaching license and/or endorsements to 73
teach in the applicable subject area of instruction provided to 74
students; 75
(b) The superintendent of the employing school district 76
certifies in writing to the State Department of Education that the 77
retired member has the requisite experience, training and 78
expertise for the position to be filled; 79
(c) The superintendent of the school district certifies 80
or the principal of the school certifies that there was no 81
preexisting arrangement for the person to be hired; and 82
(d) The person had a satisfactory performance review 83
for the most recent period before retirement * * *. 84
* * * 85
( * * *5) The State Superintendent of Public Education shall 86
report the persons who are employed under this section to the 87
Executive Director of the Public Employees' Retirement System. 88
( * * *6) The department of education shall promulgate 89
regulations that prescribe a salary schedule that reflects the 90
provisions of this section. Each school district shall create a 91
policy, approved by the local school board, related to the hiring 92
of retired teachers and including, but not limited to, the hiring 93
of full- and part-time retired teacher employees under this 94
section and Section 25-11-127. 95
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( * * *7) Any retired teacher who returns to work in 96
accordance with this section shall not be eligible to return to 97
work under the provisions of Section 25-11-127. 98
SECTION 2. Section 25-11-123, Mississippi Code of 1972, is 99
amended as follows: 100
25-11-123. All of the assets of the system shall be credited 101
according to the purpose for which they are held to one (1) of 102
four (4) reserves; namely, the annuity savings account, the 103
annuity reserve, the employer's accumulation account, and the 104
expense account; however, any employee who became a member of the 105
system on or after March 1, 2026, shall also have a defined 106
contribution plan administered by the system, as provided in 107
Section 25-11-147. 108
(a) Annuity savings account. In the annuity savings 109
account shall be accumulated the contributions made by members to 110
provide for their annuities, including interest thereon which 111
shall be posted monthly. Credits to and charges against the 112
annuity savings account shall be made as follows: 113
(1) Beginning July 1, 2010, except as otherwise 114
provided in Section 25-11-126, the employer shall cause to be 115
deducted from the salary of each member on each and every payroll 116
of the employer for each and every payroll period nine percent 117
(9%) of earned compensation as defined in Section 25-11-103; 118
however, for any employee who became a member of the system on or 119
after March 1, 2026, only four percent (4%) of such earned 120
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compensation shall be deposited into the annuity savings account, 121
with the remaining five percent (5%), to be deposited into the 122
employee's defined contribution account authorized in Section 123
25-11-147. Future contributions shall be fixed biennially by the 124
board on the basis of the liabilities of the retirement system for 125
the various allowances and benefits as shown by actuarial 126
valuation; however, any member earning at a rate less than Sixteen 127
Dollars and Sixty-seven Cents ($16.67) per month, or Two Hundred 128
Dollars ($200.00) per year, shall contribute not less than One 129
Dollar ($1.00) per month, or Twelve Dollars ($12.00) per year. 130
(2) The deductions provided in paragraph (1) of 131
this subsection shall be made notwithstanding that the minimum 132
compensation provided by law for any member is reduced by the 133
deduction. Every member shall be deemed to consent and agree to 134
the deductions made and provided for in paragraph (1) of this 135
subsection and shall receipt for his full salary or compensation, 136
and payment of salary or compensation less the deduction shall be 137
a full and complete discharge and acquittance of all claims and 138
demands whatsoever for the services rendered by the person during 139
the period covered by the payment, except as to the benefits 140
provided under Articles 1 and 3. The board shall provide by rules 141
for the methods of collection of contributions from members and 142
the employer. The board shall have full authority to require the 143
production of evidence necessary to verify the correctness of 144
amounts contributed. 145
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(b) Annuity reserve. The annuity reserve shall be the 146
account representing the actuarial value of all annuities in 147
force, and to it shall be charged all annuities and all benefits 148
in lieu of annuities, payable as provided in this article. If a 149
beneficiary retired on account of disability is restored to active 150
service with a compensation not less than his average final 151
compensation at the time of his last retirement, the remainder of 152
his contributions shall be transferred from the annuity reserve to 153
the annuity savings account and credited to his individual account 154
therein, and the balance of his annuity reserve shall be 155
transferred to the employer's accumulation account. 156
(c) Employer's accumulation account. The employer's 157
accumulation account shall represent the accumulation of all 158
reserves for the payment of all retirement allowances and other 159
benefits payable from contributions made by the employer, and 160
against this account shall be charged all retirement allowances 161
and other benefits on account of members. Credits to and charges 162
against the employer's accumulation account shall be made as 163
follows: 164
(1) (i) On account of each member who became a 165
member of the system before March 1, 2026, there shall be paid 166
monthly into the employer's accumulation account by the employers 167
for the preceding fiscal year an amount equal to a certain 168
percentage of the total earned compensation, as defined in Section 169
25-11-103, of each member. From and after May 9, 2024, the 170
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increase in the employer's contribution rate scheduled to take 171
effect on July 1, 2024, is rescinded and shall not take effect; 172
however, on July 1 of each year from 2024 through 2028, the 173
employer's contribution rate shall be increased by one-half 174
percent (1/2%). For each member who became a member of the system 175
on or after March 1, 2026, except as provided in Section 176
25-11-147, the employer's monthly payment under this paragraph (1) 177
shall be applied to the accrued liability contribution fund. 178
(ii) Persons who choose to continue receiving 179
a retirement allowance during their employment as teachers as 180
authorized by Section 25-11-126, the percentage rate of the 181
contributions to be paid into the employer's accumulation account 182
by the employers of those persons shall be twenty-seven and four 183
tenths percent (27.4%) of the total earned compensation of those 184
persons as of July 1, 2025, and shall be increased by one-half 185
percent (1/2%) through July 1, 2028 in accordance with the 186
requirements of subparagraph (i) of this paragraph (1). However, 187
if after January 1, 2029, the Legislature increases the percentage 188
rate of the employer's contribution required under the provisions 189
of subparagraph (i) of this paragraph (1), or the Legislature 190
increases the percentage rate of the contribution required under 191
subsection (a)(1) of this section, or the Legislature increases 192
both of those percentage rates, then the percentage rate of the 193
contributions to be paid into the employer's accumulation account 194
by the employers of those persons under this subparagraph (ii) 195
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shall be increased by the total amount of the increase or 196
increases in the percentage rate or rates made by the Legislature. 197
(2) For the public good, any recommendation by the 198
board to adjust the employer contributions may be accompanied by 199
at least two (2) assessments from actuaries who are independent 200
from each other and the retirement plan. The actuaries shall 201
analyze the economic impact of any such recommendation to the 202
system and state, including, but not limited to, information 203
showing the fiscal impact to every agency and arm of the state, 204
including, but not limited to, state agencies, cities, counties 205
and school districts. The actuarial assessments, with any such 206
recommendation to adjust the employer contributions, shall be 207
submitted to the Lieutenant Governor, Speaker of the House, 208
Chairman of the Senate Appropriations Committee and Chairman of 209
the House Appropriations Committee. 210
(3) The board shall have the authority to make 211
recommendations regarding additional funding sources for the 212
retirement plan, including employer contribution increases, based 213
on the assets and liabilities of the retirement plan, and the 214
analyses required by paragraph (2) of this subsection (c). The 215
Legislature shall have the sole authority to implement any such 216
recommendations. It is the intent of the Legislature that, in the 217
2025 Regular Session, a law be enacted to create a new tier for 218
future members of the system, in furtherance of the system's 219
continued financial stability and sustainability. 220
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(4) This section shall not be construed to provide 221
authority to reduce or eliminate any earned benefits to be 222
provided by the state to persons who, before July 1, 2025, are 223
drawing a retirement allowance or are members of the system. 224
(5) On the basis of regular interest and of such 225
mortality and other tables as are adopted by the board of 226
trustees, the actuary engaged by the board to make each valuation 227
required by this article during the period over which the accrued 228
liability contribution is payable, immediately after making that 229
valuation, shall determine the uniform and constant percentage of 230
the earnable compensation of each member which, if contributed by 231
the employer on the basis of compensation of the member throughout 232
his entire period of membership service, would be sufficient to 233
provide for the payment of any retirement allowance payable on his 234
account for that service. The percentage rate so determined shall 235
be known as the "normal contribution rate." After the accrued 236
liability contribution has ceased to be payable, the normal 237
contribution rate shall be the percentage rate of the salary of 238
all members obtained by deducting from the total liabilities on 239
account of membership service the amount in the employer's 240
accumulation account, and dividing the remainder by one percent 241
(1%) of the present value of the prospective future salaries of 242
all members as computed on the basis of the mortality and service 243
tables adopted by the board of trustees and regular interest. The 244
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normal rate of contributions shall be determined by the actuary 245
after each valuation. 246
(6) The total amount payable in each year to the 247
employer's accumulation account shall not be less than the sum of 248
the percentage rate known as the "normal contribution rate" and 249
the "accrued liability contribution rate" of the total 250
compensation earnable by all members during the preceding year, 251
provided that the payment by the employer shall be sufficient, 252
when combined with the amounts in the account, to provide the 253
allowances and other benefits chargeable to this account during 254
the year then current. 255
(7) The accrued liability contribution shall be 256
discontinued as soon as the accumulated balance in the employer's 257
accumulation account shall equal the present value, computed on 258
the basis of the normal contribution rate then in force, or the 259
prospective normal contributions to be received on account of all 260
persons who are at that time members. 261
(8) All allowances and benefits in lieu thereof, 262
with the exception of those payable on account of members who 263
receive no prior service credit, payable from contributions of the 264
employer, shall be paid from the employer's accumulation account. 265
(9) Upon the retirement of a member, an amount 266
equal to his retirement allowance shall be transferred from the 267
employer's accumulation account to the annuity reserve. 268
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(10) The employer's accumulation account shall be 269
credited with any assets authorized by law to be credited to the 270
account. 271
(d) Expense account. The expense account shall be the 272
account to which the expenses of the administration of the system 273
shall be charged, exclusive of amounts payable as retirement 274
allowances and as other benefits provided herein. The Legislature 275
shall make annual appropriations in amounts sufficient to 276
administer the system, which shall be credited to this account. 277
There shall be transferred to the State Treasury from this 278
account, not less than once per month, an amount sufficient for 279
payment of the estimated expenses of the system for the succeeding 280
thirty (30) days. Any interest earned on the expense account 281
shall accrue to the benefit of the system. However, 282
notwithstanding the provisions of Sections 25-11-15(10) and 283
25-11-105(f)(v)5, all expenses of the administration of the system 284
shall be paid from the interest earnings, provided the interest 285
earnings are in excess of the actuarial interest assumption as 286
determined by the board, and provided the present cost of the 287
administrative expense fee of two percent (2%) of the 288
contributions reported by the political subdivisions and 289
instrumentalities shall be reduced to one percent (1%) from and 290
after July 1, 1983, through June 30, 1984, and shall be eliminated 291
thereafter. 292
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(e) Collection of contributions. The employer shall 293
cause to be deducted on each and every payroll of a member for 294
each and every payroll period, beginning subsequent to January 31, 295
1953, the contributions payable by the member as provided in 296
Articles 1 and 3. 297
The employer shall make deductions from salaries of employees 298
as provided in Articles 1 and 3 and shall transmit monthly, or at 299
such time as the board of trustees designates, the amount 300
specified to be deducted to the Executive Director of the Public 301
Employees' Retirement System. The executive director, after 302
making a record of all those receipts, shall deposit such amounts 303
as provided by law. 304
(f) (1) The sum of the normal contribution rate and 305
the accrued liability contribution rate shall be known as the 306
"employer's contribution rate." 307
(2) The amount payable by the employer on account 308
of normal and accrued liability contributions shall be determined 309
by applying the employer's contribution rate to the amount of 310
compensation earned by employees who are members of the system. 311
Monthly, or at such time as the board of trustees designates, each 312
department or agency shall compute the amount of the employer's 313
contribution payable, with respect to the salaries of its 314
employees who are members of the system, and shall cause that 315
amount to be paid to the board of trustees from the personal 316
service allotment of the amount appropriated for the operation of 317
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the department or agency, or from funds otherwise available to the 318
agency, for the payment of salaries to its employees. 319
(3) Except as otherwise provided in Section 320
25-11-106: 321
(i) Constables shall pay employer and 322
employee contributions on their net fee income as well as the 323
employee contributions on all direct treasury or county payroll 324
income. 325
(ii) The county shall be responsible for the 326
employer contribution on all direct treasury or county payroll 327
income of constables. 328
(4) Except as otherwise provided in Section 329
25-11-106.1, chancery and circuit clerks shall be responsible for 330
both the employer and employee share of contributions on the 331
proportionate share of net income attributable to fees, as well as 332
the employee share of net income attributable to direct treasury 333
or county payroll income, and the employing county shall be 334
responsible for the employer contributions on the net income 335
attributable to direct treasury or county payroll income. 336
(5) Once each year, under procedures established 337
by the system, each employer shall submit to the Public Employees' 338
Retirement System a copy of their report to Social Security of all 339
employees' earnings. 340
(6) The board shall provide by rules for the 341
methods of collection of contributions of employers and members. 342
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ST: PERS; revise criteria and compensation
scale for retired teachers who return to the
teaching profession after retirement.
The amounts determined due by an agency to the various funds as 343
specified in Articles 1 and 3 are made obligations of the agency 344
to the board and shall be paid as provided herein. Failure to 345
deduct those contributions shall not relieve the employee and 346
employer from liability thereof. Delinquent employee 347
contributions and any accrued interest shall be the obligation of 348
the employee and delinquent employer contributions and any accrued 349
interest shall be the obligation of the employer. The employer 350
may, in its discretion, elect to pay any or all of the interest on 351
delinquent employee contributions. From and after July 1, 1996, 352
under rules and regulations established by the board, all 353
employers are authorized and shall transfer all funds due to the 354
Public Employees' Retirement System electronically and shall 355
transmit any wage or other reports by computerized reporting 356
systems. 357
SECTION 3. This act shall take effect and be in force from 358
and after July 1, 2026. 359