PERS; members are not required to be retired for 90 days to return to work when the position in which they are employed is not covered under.

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

By: Representative McGee

HOUSE BILL NO. 1163

AN ACT TO AMEND SECTION 25-11-127, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT A MEMBER OF THE PUBLIC EMPLOYEES' RETIREMENT 2
SYSTEM DOES NOT HAVE TO BE RETIRED FOR 90 DAYS TO WORK AFTER 3
RETIREMENT WHEN THE OFFICE OR POSITION IN WHICH THE PERSON IS 4
EMPLOYED AFTER RETIREMENT IS NOT COVERED UNDER THE SYSTEM, OR WHEN 5
THE PERSON IS EMPLOYED IN AN OFFICE OR POSITION THAT IS NOT 6
COVERED UNDER THE SYSTEM AT THE TIME OF RETIREMENT AND WISHES TO 7
CONTINUE IN EMPLOYMENT IN THAT OFFICE OR POSITION; AND FOR RELATED 8
PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. Section 25-11-127, Mississippi Code of 1972, is 11
amended as follows: 12
25-11-127. (1) (a) No person who is being paid a 13
retirement allowance or a pension after retirement under this 14
article shall be employed or paid for any service by the State of 15
Mississippi, including services as an employee, contract worker, 16
contractual employee or independent contractor, until the retired 17
person has been retired for not less than ninety (90) consecutive 18
days from his or her effective date of retirement, except as 19
otherwise provided in paragraph (b) of this subsection. After the 20
person has been retired for not less than ninety (90) consecutive 21
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days from his or her effective date of retirement or such later 22
date as established by the board, he or she may be reemployed 23
while being paid a retirement allowance under the terms and 24
conditions provided in this section or in Section 25-11-126. 25
(b) The requirement that a person be retired for not 26
less than ninety (90) days before the person may be employed for 27
any service by the State of Mississippi and receive a retirement 28
allowance does not apply in either of the following circumstances: 29
(i) When the person is employed after the date of 30
retirement in an office or position that is not covered under the 31
system; 32
(ii) When the person is employed in an office or 33
position that is not covered under the system at the time of 34
retirement and wishes to continue in employment in that office or 35
position. 36
(c) No retiree of this retirement system who is 37
reemployed or is reelected to office after retirement shall 38
continue to draw retirement benefits while so reemployed, except 39
as provided in this section or in Section 25-11-126. 40
( * * *d) No person employed or elected under the 41
exceptions provided for in this section shall become a member 42
under Article 3 of the retirement system. 43
(2) Except as otherwise provided in Section 25-11-126, any 44
person who has been retired under the provisions of Article 3 and 45
who is later reemployed in service covered by this article shall 46
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cease to receive benefits under this article and shall again 47
become a contributing member of the retirement system. When the 48
person retires again, if the reemployment exceeds six (6) months, 49
the person shall have his or her benefit recomputed, including 50
service after again becoming a member, provided that the total 51
retirement allowance paid to the retired member in his or her 52
previous retirement shall be deducted from the member's retirement 53
reserve and taken into consideration in recalculating the 54
retirement allowance under a new option selected. 55
(3) The board shall have the right to prescribe rules and 56
regulations for carrying out the provisions of this section. 57
(4) The provisions of this section shall not be construed to 58
prohibit any retiree, regardless of age, from being employed and 59
drawing a retirement allowance either: 60
(a) For a period of time not to exceed one-half (1/2) 61
of the normal working days for the position in any fiscal year 62
during which the retiree will receive no more than one-half (1/2) 63
of the salary in effect for the position at the time of 64
employment, or 65
(b) For a period of time in any fiscal year sufficient 66
in length to permit a retiree to earn not in excess of twenty-five 67
percent (25%) of retiree's average compensation. 68
To determine the normal working days for a position under 69
paragraph (a) of this subsection, the employer shall determine the 70
required number of working days for the position on a full-time 71
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basis and the equivalent number of hours representing the 72
full-time position. The retiree then may work up to one-half 73
(1/2) of the required number of working days or up to one-half 74
(1/2) of the equivalent number of hours and receive up to one-half 75
(1/2) of the salary for the position. In the case of employment 76
with multiple employers, the limitation shall equal one-half (1/2) 77
of the number of days or hours for a single full-time position. 78
Notice shall be given in writing to the executive director, 79
setting forth the facts upon which the employment is being made, 80
and the notice shall be given within five (5) days from the date 81
of employment and also from the date of termination of the 82
employment. 83
(5) Except as otherwise provided in subsection (6) of this 84
section, the employer of any person who is receiving a retirement 85
allowance and who is employed in service covered by subsection (4) 86
of this section as an employee or a contractual employee shall pay 87
to the board the full amount of the employer's contribution on the 88
amount of compensation received by the retiree for his or her 89
employment in accordance with regulations prescribed by the board. 90
The retiree shall not receive any additional creditable service in 91
the retirement system as a result of the payment of the employer's 92
contribution. This subsection does not apply to persons who are 93
receiving a retirement allowance and who contract with an employer 94
to provide services as a true independent contractor, as defined 95
by the board through regulation. 96
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(6) (a) A member may retire and continue in municipal or 97
county elective office provided that the member has reached the 98
age and/or service requirement that will not result in a 99
prohibited in-service distribution as defined by the Internal 100
Revenue Service, or a retiree may be elected to a municipal or 101
county office, provided that the person: 102
(i) Files annually, in writing, in the office of 103
the employer and the office of the executive director of the 104
system before the person takes office or as soon as possible after 105
retirement, a waiver of all salary or compensation and elects to 106
receive in lieu of that salary or compensation a retirement 107
allowance as provided in this section, in which event no salary or 108
compensation shall thereafter be due or payable for those 109
services; however, any such officer or employee may receive, in 110
addition to the retirement allowance, office expense allowance, 111
mileage or travel expense authorized by any statute of the State 112
of Mississippi; or 113
(ii) Elects to receive compensation for that 114
elective office in an amount not to exceed twenty-five percent 115
(25%) of the retiree's average compensation. In order to receive 116
compensation as allowed in this subparagraph, the retiree shall 117
file annually, in writing, in the office of the employer and the 118
office of the executive director of the system, an election to 119
receive, in addition to a retirement allowance, compensation as 120
allowed in this subparagraph. 121
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ST: PERS; members are not required to be
retired for 90 days to return to work when the
position in which they are employed is not
covered under.
(b) The municipality or county in which the retired 122
person holds elective office shall pay to the board the amount of 123
the employer's contributions on the full amount of the regular 124
compensation for the elective office that the retired person 125
holds. 126
(c) As used in this subsection, the term "compensation" 127
does not include office expense allowance, mileage or travel 128
expense authorized by a statute of the State of Mississippi. 129
(7) Any retired teacher who returns to work in accordance 130
with this section shall not be eligible to return to work under 131
the provisions of Section 25-11-126. 132
SECTION 2. This act shall take effect and be in force from 133
and after July 1, 2026. 134