PERS; include first responders hired after March 1, 2026, in Tier 4 membership in the system.

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

By: Representative Carpenter

HOUSE BILL NO. 1559

AN ACT TO AMEND SECTIONS 25-11-103, 25-11-109, 25-11-111, 1
25-11-112, 25-11-114, 25-11-115, 25-11-117, 25-11-123 AND 2
25-11-147, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FIRST 3
RESPONDERS WHO BECOME MEMBERS OF THE PUBLIC EMPLOYEES' RETIREMENT 4
SYSTEM ON OR AFTER MARCH 1, 2026, SHALL BE INCLUDED IN TIER 4 5
MEMBERSHIP IN THE SYSTEM; TO DEFINE FIRST RESPONDERS AS LAW 6
ENFORCEMENT OFFICERS, FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 7
PROVIDERS; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 25-11-103, Mississippi Code of 1972, is 10
amended as follows: 11
25-11-103. (1) The following words and phrases as used in 12
Articles 1 and 3, unless a different meaning is plainly required 13
by the context, have the following meanings: 14
(a) "Accumulated contributions" means the sum of all 15
the amounts deducted from the compensation of a member and 16
credited to his or her individual account in the annuity savings 17
account, together with regular interest as provided in Section 18
25-11-123. 19
(b) "Actuarial cost" means the amount of funds 20
presently required to provide future benefits as determined by the 21
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board based on applicable tables and formulas provided by the 22
actuary. 23
(c) "Actuarial equivalent" means a benefit of equal 24
value to the accumulated contributions, annuity or benefit, as the 25
case may be, when computed upon the basis of such mortality tables 26
as adopted by the board of trustees, and regular interest. 27
(d) "Actuarial tables" mean such tables of mortality 28
and rates of interest as adopted by the board in accordance with 29
the recommendation of the actuary. 30
(e) "Agency" means any governmental body employing 31
persons in the state service. 32
(f) "Average compensation" means, for persons who 33
became members of the system before March 1, 2026, and for first 34
responders who became members of the system on or after March 1, 35
2026, the average of the four (4) highest years of earned 36
compensation reported for an employee in a fiscal or calendar year 37
period, or combination thereof that do not overlap, or the last 38
forty-eight (48) consecutive months of earned compensation 39
reported for an employee. The four (4) years need not be 40
successive or joined years of service. "Average compensation" 41
means, for persons who became members of the system on or after 42
March 1, 2026, except for first responders who became members of 43
the system on or after March 1, 2026, the average of the eight (8) 44
highest consecutive years of earned compensation reported for an 45
employee in a fiscal or calendar year period, or of the last 46
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ninety-six (96) consecutive months of earned compensation reported 47
for an employee, whichever is greater. 48
In computing the average compensation for retirement, 49
disability or survivor benefits, any amount lawfully paid in a 50
lump sum for personal leave or major medical leave shall be 51
included in the calculation to the extent that the amount does not 52
exceed an amount that is equal to thirty (30) days of earned 53
compensation and to the extent that it does not cause the 54
employee's earned compensation to exceed the maximum reportable 55
amount specified in paragraph (k) of this subsection; however, 56
this thirty-day limitation shall not prevent the inclusion in the 57
calculation of leave earned under federal regulations before July 58
1, 1976, and frozen as of that date as referred to in Section 59
25-3-99. In computing the average compensation, no amounts shall 60
be used that are in excess of the amount on which contributions 61
were required and paid, and no nontaxable amounts paid by the 62
employer for health or life insurance premiums for the employee 63
shall be used. If any member who is or has been granted any 64
increase in annual salary or compensation of more than eight 65
percent (8%) retires within twenty-four (24) months from the date 66
that the increase becomes effective, then the board shall exclude 67
that part of the increase in salary or compensation that exceeds 68
eight percent (8%) in calculating that member's average 69
compensation for retirement purposes. The board may enforce this 70
provision by rule or regulation. However, increases in 71
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compensation in excess of eight percent (8%) per year granted 72
within twenty-four (24) months of the date of retirement may be 73
included in the calculation of average compensation if 74
satisfactory proof is presented to the board showing that the 75
increase in compensation was the result of an actual change in the 76
position held or services rendered, or that the compensation 77
increase was authorized by the State Personnel Board or was 78
increased as a result of statutory enactment, and the employer 79
furnishes an affidavit stating that the increase granted within 80
the last twenty-four (24) months was not contingent on a promise 81
or agreement of the employee to retire. Nothing in Section 82
25-3-31 shall affect the calculation of the average compensation 83
of any member for the purposes of this article. The average 84
compensation of any member who retires before July 1, 1992, shall 85
not exceed the annual salary of the Governor. 86
(g) "Beneficiary" means any person entitled to receive 87
a retirement allowance, an annuity or other benefit as provided by 88
Articles 1 and 3. The term "beneficiary" may also include an 89
organization, estate, trust or entity; however, a beneficiary 90
designated or entitled to receive monthly payments under an 91
optional settlement based on life contingency or under a statutory 92
monthly benefit may only be a natural person. In the event of the 93
death before retirement of any member who became a member of the 94
system before July 1, 2007, and whose spouse and/or children are 95
not entitled to a retirement allowance on the basis that the 96
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member has less than four (4) years of membership service credit, 97
or who became a member of the system on or after July 1, 2007, and 98
whose spouse and/or children are not entitled to a retirement 99
allowance on the basis that the member has less than eight (8) 100
years of membership service credit, and/or has not been married 101
for a minimum of one (1) year or the spouse has waived his or her 102
entitlement to a retirement allowance under Section 25-11-114, the 103
lawful spouse of a member at the time of the death of the member 104
shall be the beneficiary of the member unless the member has 105
designated another beneficiary after the date of marriage in 106
writing, and filed that writing in the office of the executive 107
director of the board of trustees. No designation or change of 108
beneficiary shall be made in any other manner. 109
(h) "Board" means the board of trustees provided in 110
Section 25-11-15 to administer the retirement system created under 111
this article. 112
(i) "Creditable service" means "prior service," 113
"retroactive service" and all lawfully credited unused leave not 114
exceeding the accrual rates and limitations provided in Section 115
25-3-91 et seq., as of the date of withdrawal from service plus 116
"membership service" and other service for which credit is 117
allowable as provided in Section 25-11-109. Except to limit 118
creditable service reported to the system for the purpose of 119
computing an employee's retirement allowance or annuity or 120
benefits provided in this article, nothing in this paragraph shall 121
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limit or otherwise restrict the power of the governing authority 122
of a municipality or other political subdivision of the state to 123
adopt such vacation and sick leave policies as it deems necessary. 124
(j) "Child" means either a natural child of the member, 125
a child that has been made a child of the member by applicable 126
court action before the death of the member, or a child under the 127
permanent care of the member at the time of the latter's death, 128
which permanent care status shall be determined by evidence 129
satisfactory to the board. For purposes of this paragraph, a 130
natural child of the member is a child of the member that is 131
conceived before the death of the member. 132
(k) "Earned compensation" means the full amount earned 133
during a fiscal year by an employee not to exceed the employee 134
compensation limit set pursuant to Section 401(a)(17) of the 135
Internal Revenue Code for the calendar year in which the fiscal 136
year begins and proportionately for less than one (1) year of 137
service. Except as otherwise provided in this paragraph, the 138
value of maintenance furnished to an employee shall not be 139
included in earned compensation. Earned compensation shall not 140
include any amounts paid by the employer for health or life 141
insurance premiums for an employee. Earned compensation shall be 142
limited to the regular periodic compensation paid, exclusive of 143
litigation fees, bond fees, performance-based incentive payments, 144
and other similar extraordinary nonrecurring payments. In 145
addition, any member in a covered position, as defined by Public 146
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Employees' Retirement System laws and regulations, who is also 147
employed by another covered agency or political subdivision shall 148
have the earnings of that additional employment reported to the 149
Public Employees' Retirement System regardless of whether the 150
additional employment is sufficient in itself to be a covered 151
position. In addition, computation of earned compensation shall 152
be governed by the following: 153
(i) In the case of constables, the net earnings 154
from their office after deduction of expenses shall apply, except 155
that in no case shall earned compensation be less than the total 156
direct payments made by the state or governmental subdivisions to 157
the official. 158
(ii) In the case of chancery or circuit clerks, 159
the net earnings from their office after deduction of expenses 160
shall apply as expressed in Section 25-11-123(f)(4). 161
(iii) In the case of members of the State 162
Legislature, all remuneration or amounts paid, except mileage 163
allowance, shall apply. 164
(iv) The amount by which an eligible employee's 165
salary is reduced under a salary reduction agreement authorized 166
under Section 25-17-5 shall be included as earned compensation 167
under this paragraph, provided this inclusion does not conflict 168
with federal law, including federal regulations and federal 169
administrative interpretations under the federal law, pertaining 170
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to the Federal Insurance Contributions Act or to Internal Revenue 171
Code Section 125 cafeteria plans. 172
(v) Compensation in addition to an employee's base 173
salary that is paid to the employee under the vacation and sick 174
leave policies of a municipality or other political subdivision of 175
the state that employs him or her that exceeds the maximums 176
authorized by Section 25-3-91 et seq. shall be excluded from the 177
calculation of earned compensation under this article. 178
(vi) The maximum salary applicable for retirement 179
purposes before July 1, 1992, shall be the salary of the Governor. 180
(vii) Nothing in Section 25-3-31 shall affect the 181
determination of the earned compensation of any member for the 182
purposes of this article. 183
(viii) The value of maintenance furnished to an 184
employee before July 1, 2013, for which the proper amount of 185
employer and employee contributions have been paid, shall be 186
included in earned compensation. From and after July 1, 2013, the 187
value of maintenance furnished to an employee shall be reported as 188
earned compensation only if the proper amount of employer and 189
employee contributions have been paid on the maintenance and the 190
employee was receiving maintenance and having maintenance reported 191
to the system as of June 30, 2013. The value of maintenance when 192
not paid in money shall be fixed by the employing state agency, 193
and, in case of doubt, by the board of trustees as defined in 194
Section 25-11-15. 195
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(ix) Except as otherwise provided in this 196
paragraph, the value of any in-kind benefits provided by the 197
employer shall not be included in earned compensation. As used in 198
this subparagraph, "in-kind benefits" shall include, but not be 199
limited to, group life insurance premiums, health or dental 200
insurance premiums, nonpaid major medical and personal leave, 201
employer contributions for social security and retirement, tuition 202
reimbursement or educational funding, day care or transportation 203
benefits. 204
(l) "Employee" means any person legally occupying a 205
position in the state service, and shall include the employees of 206
the retirement system created under this article. 207
(m) "Employer" means the State of Mississippi or any of 208
its departments, agencies or subdivisions from which any employee 209
receives his or her compensation. 210
(n) "Executive director" means the secretary to the 211
board of trustees, as provided in Section 25-11-15(9), and the 212
administrator of the Public Employees' Retirement System and all 213
systems under the management of the board of trustees. Wherever 214
the term "Executive Secretary of the Public Employees' Retirement 215
System" or "executive secretary" appears in this article or in any 216
other provision of law, it shall be construed to mean the 217
Executive Director of the Public Employees' Retirement System. 218
(o) "Fiscal year" means the period beginning on July 1 219
of any year and ending on June 30 of the next succeeding year. 220
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(p) "Medical board" means the board of physicians or 221
any governmental or nongovernmental disability determination 222
service designated by the board of trustees that is qualified to 223
make disability determinations as provided for in Section 224
25-11-119. 225
(q) "Member" means any person included in the 226
membership of the system as provided in Section 25-11-105. For 227
purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 228
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 229
system withdrew from state service and received a refund of the 230
amount of the accumulated contributions to the credit of the 231
member in the annuity savings account before July 1, 2007, and the 232
person reenters state service and becomes a member of the system 233
again on or after July 1, 2007, and repays all or part of the 234
amount received as a refund and interest in order to receive 235
creditable service for service rendered before July 1, 2007, the 236
member shall be considered to have become a member of the system 237
on or after July 1, 2007, subject to the eight-year membership 238
service requirement, as applicable in those sections. For 239
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 240
25-11-115, if a member of the system withdrew from state service 241
and received a refund of the amount of the accumulated 242
contributions to the credit of the member in the annuity savings 243
account before July 1, 2011, and the person reenters state service 244
and becomes a member of the system again on or after July 1, 2011, 245
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and repays all or part of the amount received as a refund and 246
interest in order to receive creditable service for service 247
rendered before July 1, 2011, the member shall be considered to 248
have become a member of the system on or after July 1, 2011. If a 249
member of the system withdrew from state service and received a 250
refund of the amount of the accumulated contributions to the 251
credit of the member in the annuity savings account before March 252
1, 2026, and the person reenters state service and becomes a 253
member of the system again on or after March 1, 2026, the member 254
shall be considered to have become a member of the system on or 255
after March 1, 2026, and may not receive creditable service for 256
service rendered before March 1, 2026. 257
(r) "Membership service" means service as an employee 258
in a covered position rendered while a contributing member of the 259
retirement system. 260
(s) "Position" means any office or any employment in 261
the state service, or two (2) or more of them, the duties of which 262
call for services to be rendered by one (1) person, including 263
positions jointly employed by federal and state agencies 264
administering federal and state funds. The employer shall 265
determine upon initial employment and during the course of 266
employment of an employee who does not meet the criteria for 267
coverage in the Public Employees' Retirement System based on the 268
position held, whether the employee is or becomes eligible for 269
coverage in the Public Employees' Retirement System based upon any 270
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other employment in a covered agency or political subdivision. If 271
or when the employee meets the eligibility criteria for coverage 272
in the other position, then the employer must withhold 273
contributions and report wages from the noncovered position in 274
accordance with the provisions for reporting of earned 275
compensation. Failure to deduct and report those contributions 276
shall not relieve the employee or employer of liability thereof. 277
The board shall adopt such rules and regulations as necessary to 278
implement and enforce this provision. 279
(t) "Prior service" means: 280
(i) For persons who became members of the system 281
before July 1, 2007, service rendered before February 1, 1953, for 282
which credit is allowable under Sections 25-11-105 and 25-11-109, 283
and which shall allow prior service for any person who is now or 284
becomes a member of the Public Employees' Retirement System and 285
who does contribute to the system for a minimum period of four (4) 286
years. 287
(ii) For persons who became members of the system 288
on or after July 1, 2007, service rendered before February 1, 289
1953, for which credit is allowable under Sections 25-11-105 and 290
25-11-109, and which shall allow prior service for any person who 291
is now or becomes a member of the Public Employees' Retirement 292
System and who does contribute to the system for a minimum period 293
of eight (8) years. 294
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(u) "Regular interest" means interest compounded 295
annually at such a rate as determined by the board in accordance 296
with Section 25-11-121. 297
(v) "Retirement allowance" means an annuity for life as 298
provided in this article, payable each year in twelve (12) equal 299
monthly installments beginning as of the date fixed by the board. 300
The retirement allowance shall be calculated in accordance with 301
Section 25-11-111. However, any spouse who received a spouse 302
retirement benefit in accordance with Section 25-11-111(d) before 303
March 31, 1971, and those benefits were terminated because of 304
eligibility for a social security benefit, may again receive his 305
or her spouse retirement benefit from and after making application 306
with the board of trustees to reinstate the spouse retirement 307
benefit. 308
(w) "Retroactive service" means service rendered after 309
February 1, 1953, for which credit is allowable under Section 310
25-11-105(b) and Section 25-11-105(k). 311
(x) "System" means the Public Employees' Retirement 312
System of Mississippi established and described in Section 313
25-11-101. 314
(y) "State" means the State of Mississippi or any 315
political subdivision thereof or instrumentality of the state. 316
(z) "State service" means all offices and positions of 317
trust or employment in the employ of the state, or any political 318
subdivision or instrumentality of the state, that elect to 319
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participate as provided by Section 25-11-105(f), including the 320
position of elected or fee officials of the counties and their 321
deputies and employees performing public services or any 322
department, independent agency, board or commission thereof, and 323
also includes all offices and positions of trust or employment in 324
the employ of joint state and federal agencies administering state 325
and federal funds and service rendered by employees of the public 326
schools. Effective July 1, 1973, all nonprofessional public 327
school employees, such as bus drivers, janitors, maids, 328
maintenance workers and cafeteria employees, shall have the option 329
to become members in accordance with Section 25-11-105(b), and 330
shall be eligible to receive credit for services before July 1, 331
1973, provided that the contributions and interest are paid by the 332
employee in accordance with that section; in addition, the county 333
or municipal separate school district may pay the employer 334
contribution and pro rata share of interest of the retroactive 335
service from available funds. "State service" shall not include 336
the President of the Mississippi Lottery Corporation and personnel 337
employed by the Mississippi Lottery Corporation. From and after 338
July 1, 1998, retroactive service credit shall be purchased at the 339
actuarial cost in accordance with Section 25-11-105(b). 340
(aa) "Withdrawal from service" or "termination from 341
service" means complete severance of employment in the state 342
service of any member by resignation, dismissal or discharge. 343
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(bb) "First responder" means a law enforcement officer, 344
firefighter or emergency medical services provider. 345
(cc) "Law enforcement officer" means any of the 346
following persons who are authorized to carry a firearm while in 347
the performance of their official duties and who have met the 348
minimum educational and training standards established by the 349
Board on Law Enforcement Officer Standards and Training for 350
permanent, full-time law enforcement officers and have received a 351
certificate from that board: 352
(i) Municipal police officers and narcotics 353
agents, but not officers who are engaged only in administrative or 354
civil duties; 355
(ii) Sheriffs and deputy sheriffs, but not deputy 356
sheriffs who are engaged only in administrative or civil duties; 357
(iii) Constables; 358
(iv) Conservation officers of the Department of 359
Wildlife, Fisheries and Parks; 360
(v) Enforcement officers of the Department of 361
Marine Resources; 362
(vi) Agents and inspectors of the Alcoholic 363
Beverage Control Division of the Department of Revenue; 364
(vii) Commercial transportation inspection station 365
employees, enforcement officers, field inspectors, railroad 366
inspectors and other inspectors of the Department of Public 367
Safety; 368
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(viii) Capitol Police officers of the Department 369
of Public Safety; 370
(ix) State correctional facility guards and 371
enforcement officers of the Department of Corrections; 372
(x) Municipal or county jail officers, guards and 373
enforcement officers; and 374
(xi) Any other full-time officer or employee of 375
the state or any county, municipality or other political 376
subdivision of the state, not listed in subparagraphs (i) through 377
(x) of this paragraph, who is authorized to carry a firearm while 378
in the performance of his or her official duties and who has met 379
the minimum educational and training standards established by the 380
Board on Law Enforcement Officer Standards and Training for 381
permanent, full-time law enforcement officers and has received a 382
certificate from that board. 383
(dd) "Firefighter" means a person who is trained for 384
the prevention and control of loss of life and property from fire 385
or other emergencies, who is assigned to firefighting activity and 386
is required to respond to alarms and perform emergency actions at 387
the location of a fire, hazardous materials or other emergency 388
incident, who is employed full time by the state or any county, 389
municipality or other political subdivision of the state, and who 390
has met the minimum educational and training standards established 391
by the Mississippi Fire Personnel Minimum Standards and 392
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Certification Board for permanent, full-time firefighters and has 393
received a certificate from that board. 394
(ee) "Emergency medical services provider" means a 395
person who is certified by the State Department of Health as one 396
of the types of emergency medical services personnel under Section 397
41-59-1 et seq., and who is employed full time by the state or any 398
county, municipality or other political subdivision of the state. 399
This term also includes 911 dispatchers who are employed full time 400
by the state or any county, municipality or other political 401
subdivision of the state. 402
( * * *ff) The masculine pronoun, wherever used, 403
includes the feminine pronoun. 404
(2) For purposes of this article, the term "political 405
subdivision" shall have the meaning ascribed to such term in 406
Section 25-11-5 and shall also include public charter schools. 407
SECTION 2. Section 25-11-109, Mississippi Code of 1972, is 408
amended as follows: 409
25-11-109. (1) Under such rules and regulations as the 410
board of trustees shall adopt, each person who becomes a member of 411
this retirement system, as provided in Section 25-11-105, on or 412
before July 1, 1953, or who became a member of the system before 413
July 1, 2007, and contributes to the system for a minimum period 414
of four (4) years, or who became a member of the system on or 415
after July 1, 2007, and contributes to the system for a minimum 416
period of eight (8) years, shall receive credit for all state 417
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service rendered before February 1, 1953. To receive that credit, 418
the member shall file a detailed statement of all services as an 419
employee rendered by him or her in the state service before 420
February 1, 1953. For any member who joined the system after July 421
1, 1953, and before July 1, 2007, any creditable service for which 422
the member is not required to make contributions shall not be 423
credited to the member until the member has contributed to the 424
system for a minimum period of at least four (4) years. For any 425
member who joined the system on or after July 1, 2007, but before 426
March 1, 2026, or for any first responder who became a member of 427
the system on or after March 1, 2026, any creditable service for 428
which the member is not required to make contributions shall not 429
be credited to the member until the member has contributed to the 430
system for a minimum period of at least eight (8) years. 431
(2) (a) (i) In the computation of creditable service for 432
service rendered before July 1, 2017, under the provisions of this 433
article, the total months of accumulative service during any 434
fiscal year shall be calculated in accordance with the schedule as 435
follows: ten (10) or more months of creditable service during any 436
fiscal year shall constitute a year of creditable service; seven 437
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 438
year of creditable service; four (4) months to six (6) months 439
inclusive, one-half (1/2) year of creditable service; one (1) 440
month to three (3) months inclusive, one-quarter (1/4) of a year 441
of creditable service. 442
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(ii) In the computation of creditable service 443
rendered on or after July 1, 2017, under the provisions of this 444
article, service credit shall be awarded in monthly increments in 445
a manner prescribed by regulations of the board. 446
(b) In no case shall credit be allowed for any period 447
of absence without compensation except for disability while in 448
receipt of a disability retirement allowance, nor shall less than 449
fifteen (15) days of service in any month, or service less than 450
the equivalent of one-half (1/2) of the normal working load for 451
the position and less than one-half (1/2) of the normal 452
compensation for the position in any month, constitute a month of 453
creditable service, nor shall more than one (1) year of service be 454
creditable for all services rendered in any one (1) fiscal year; 455
however, for a school employee, substantial completion of the 456
legal school term when and where the service was rendered shall 457
constitute a year of service credit. Any state or local elected 458
official shall be deemed a full-time employee for the purpose of 459
creditable service. However, an appointed or elected official 460
compensated on a per diem basis only shall not be allowed 461
creditable service for terms of office. 462
(c) In the computation of any retirement allowance or 463
any annuity or benefits provided in this article, any fractional 464
period of service of less than one (1) year shall be taken into 465
account and a proportionate amount of such retirement allowance, 466
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annuity or benefit shall be granted for any such fractional period 467
of service. 468
(d) (i) In the computation of unused leave for 469
creditable service authorized in Section 25-11-103, the following 470
shall govern for members who retire before July 1, 2017: 471
twenty-one (21) days of unused leave shall constitute one (1) 472
month of creditable service and in no case shall credit be allowed 473
for any period of unused leave of less than fifteen (15) days. 474
The number of months of unused leave shall determine the number of 475
quarters or years of creditable service in accordance with the 476
above schedule for membership and prior service. 477
(ii) In the computation of unused leave for 478
creditable service authorized in Section 25-11-103, the following 479
shall govern for members who retire on or after July 1, 2017: 480
creditable service for unused leave shall be calculated in monthly 481
increments in which one (1) month of service credit shall be 482
awarded for each twenty-one (21) days of unused leave, except that 483
the first fifteen (15) to fifty-seven (57) days of leave shall 484
constitute three (3) months of service for those who became a 485
member of the system before July 1, 2017. 486
(iii) In order for the member to receive 487
creditable service for the number of days of unused leave under 488
this paragraph, the system must receive certification from the 489
governing authority. 490
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(iv) For anyone who becomes a member of the system 491
on or after March 1, 2026, except for a first responder who became 492
a member of the system on or after March 1, 2026, no service 493
credit shall be awarded for unused leave. 494
(e) For the purposes of this subsection, members of the 495
system who retire on or after July 1, 2010, shall receive credit 496
for one-half (1/2) day of leave for each full year of membership 497
service accrued after June 30, 2010. The amount of leave received 498
by a member under this paragraph shall be added to the lawfully 499
credited unused leave for which creditable service is provided 500
under Section 25-11-103(i). 501
(f) For the purpose of this subsection, for members of 502
the system who are elected officers and who retire on or after 503
July 1, 1987, the following shall govern: 504
(i) For service before July 1, 1984, the members 505
shall receive credit for leave (combined personal and major 506
medical) for service as an elected official before that date at 507
the rate of thirty (30) days per year. 508
(ii) For service on and after July 1, 1984, the 509
member shall receive credit for personal and major medical leave 510
beginning July 1, 1984, at the rates authorized in Sections 511
25-3-93 and 25-3-95, computed as a full-time employee. 512
(iii) If a member is employed in a covered 513
nonelected position and a covered elected position simultaneously, 514
that member may not receive service credit for accumulated unused 515
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leave for both positions at retirement for the period during which 516
the member was dually employed. During the period during which 517
the member is dually employed, the member shall only receive 518
credit for leave as provided for in this paragraph for an elected 519
official. 520
(iv) For any elected official who becomes a member 521
of the system on or after March 1, 2026, except for an elected 522
official who is a first responder and who became a member of the 523
system on or after March 1, 2026, no service credit shall be 524
awarded for leave. 525
(3) Subject to the above restrictions and to such other 526
rules and regulations as the board may adopt, the board shall 527
verify, as soon as practicable after the filing of such statements 528
of service, the services therein claimed. 529
(4) Upon verification of the statement of prior service, the 530
board shall issue a prior service certificate certifying to each 531
member the length of prior service for which credit shall have 532
been allowed on the basis of his or her statement of service. So 533
long as membership continues, a prior service certificate shall be 534
final and conclusive for retirement purposes as to such service, 535
provided that any member may within five (5) years from the date 536
of issuance or modification of such certificate request the board 537
of trustees to modify or correct his or her prior service 538
certificate. Any modification or correction authorized shall only 539
apply prospectively. 540
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When membership ceases, such prior service certificates shall 541
become void. Should the employee again become a member, he or she 542
shall enter the system as an employee not entitled to prior 543
service credit except as provided in Sections 25-11-105(I), 544
25-11-113 and 25-11-117. 545
(5) Creditable service at retirement, on which the 546
retirement allowance of a member shall be based, shall consist of 547
the membership service rendered by him or her since he or she last 548
became a member, and also, if he or she has a prior service 549
certificate that is in full force and effect, the amount of the 550
service certified on his or her prior service certificate. 551
(6) Any member who served on active duty in the Armed Forces 552
of the United States, who served in the Commissioned Corps of the 553
United States Public Health Service before 1972 or who served in 554
maritime service during periods of hostility in World War II, 555
shall be entitled to creditable service at no cost for his or her 556
service on active duty in the Armed Forces, in the Commissioned 557
Corps of the United States Public Health Service before 1972 or in 558
such maritime service, provided he or she entered state service 559
after his or her discharge from the Armed Forces or entered state 560
service after he completed such maritime service. The maximum 561
period for such creditable service for all military service as 562
defined in this subsection (6) shall not exceed four (4) years 563
unless positive proof can be furnished by such person that he was 564
retained in the Armed Forces during World War II or in maritime 565
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service during World War II by causes beyond his control and 566
without opportunity of discharge. The member shall furnish proof 567
satisfactory to the board of trustees of certification of military 568
service or maritime service records showing dates of entrance into 569
active duty service and the date of discharge. From and after 570
July 1, 1993, no creditable service shall be granted for any 571
military service or maritime service to a member who qualifies for 572
a retirement allowance in another public retirement system 573
administered by the Board of Trustees of the Public Employees' 574
Retirement System based, in whole or in part, on such military or 575
maritime service. In no case shall the member receive creditable 576
service if the member received a dishonorable discharge from the 577
Armed Forces of the United States. 578
(7) (a) Any member of the Public Employees' Retirement 579
System whose membership service is interrupted as a result of 580
qualified military service within the meaning of Section 414(u)(5) 581
of the Internal Revenue Code, and who has received the maximum 582
service credit available under subsection (6) of this section, 583
shall receive creditable service for the period of qualified 584
military service that does not qualify as creditable service under 585
subsection (6) of this section upon reentering membership service 586
in an amount not to exceed five (5) years if: 587
(i) The member pays the contributions he or she 588
would have made to the retirement system if he or she had remained 589
in membership service for the period of qualified military service 590
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based upon his or her salary at the time his or her membership 591
service was interrupted; 592
(ii) The member returns to membership service 593
within ninety (90) days of the end of his or her qualified 594
military service; and 595
(iii) The employer at the time the member's 596
service was interrupted and to which employment the member returns 597
pays the contributions it would have made into the retirement 598
system for such period based on the member's salary at the time 599
the service was interrupted. 600
(b) The payments required to be made in paragraph 601
(a)(i) of this subsection may be made over a period beginning with 602
the date of return to membership service and not exceeding three 603
(3) times the member's qualified military service; however, in no 604
event shall such period exceed five (5) years. 605
(c) The member shall furnish proof satisfactory to the 606
board of trustees of certification of military service showing 607
dates of entrance into qualified service and the date of discharge 608
as well as proof that the member has returned to active employment 609
within the time specified. 610
(8) Any member of the Public Employees' Retirement System 611
who became a member of the system before July 1, 2007, and who has 612
at least four (4) years of membership service credit, or who 613
became a member of the system on or after July 1, 2007, but before 614
March 1, 2026, or any first responder who became a member of the 615
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system on or after March 1, 2026, and who has at least eight (8) 616
years of membership service credit, shall be entitled to receive a 617
maximum of five (5) years' creditable service for service rendered 618
in another state as a public employee of such other state, or a 619
political subdivision, public education system or other 620
governmental instrumentality thereof, or service rendered as a 621
teacher in American overseas dependent schools conducted by the 622
Armed Forces of the United States for children of citizens of the 623
United States residing in areas outside the continental United 624
States, provided that: 625
(a) The member shall furnish proof satisfactory to the 626
board of trustees of certification of such services from the 627
state, public education system, political subdivision or 628
retirement system of the state where the services were performed 629
or the governing entity of the American overseas dependent school 630
where the services were performed; and 631
(b) The member is not receiving or will not be entitled 632
to receive from the public retirement system of the other state or 633
from any other retirement plan, including optional retirement 634
plans, sponsored by the employer, a retirement allowance including 635
such services; and 636
(c) The member shall pay to the retirement system on 637
the date he or she is eligible for credit for such out-of-state 638
service or at any time thereafter before the date of retirement 639
the actuarial cost as determined by the actuary for each year of 640
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out-of-state creditable service. The provisions of this 641
subsection are subject to the limitations of Section 415 of the 642
Internal Revenue Code and regulations promulgated under that 643
section. 644
(9) Any member of the Public Employees' Retirement System 645
who became a member of the system before July 1, 2007, and has at 646
least four (4) years of membership service credit, or who became a 647
member of the system on or after July 1, 2007, but before March 1, 648
2026, or any first responder who became a member of the system on 649
or after March 1, 2026, and who has at least eight (8) years of 650
membership service credit, and who receives, or has received, 651
professional leave without compensation for professional purposes 652
directly related to the employment in state service shall receive 653
creditable service for the period of professional leave without 654
compensation provided: 655
(a) The professional leave is performed with a public 656
institution or public agency of this state, or another state or 657
federal agency; 658
(b) The employer approves the professional leave 659
showing the reason for granting the leave and makes a 660
determination that the professional leave will benefit the 661
employee and employer; 662
(c) Such professional leave shall not exceed two (2) 663
years during any ten-year period of state service; 664
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(d) The employee shall serve the employer on a 665
full-time basis for a period of time equivalent to the 666
professional leave period granted immediately following the 667
termination of the leave period; 668
(e) The contributing member shall pay to the retirement 669
system the actuarial cost as determined by the actuary for each 670
year of professional leave. The provisions of this subsection are 671
subject to the regulations of the Internal Revenue Code 672
limitations; 673
(f) Such other rules and regulations consistent 674
herewith as the board may adopt and in case of question, the board 675
shall have final power to decide the questions. 676
Any actively contributing member participating in the School 677
Administrator Sabbatical Program established in Section 37-9-77 678
shall qualify for continued participation under this subsection 679
(9). 680
(10) Any member of the Public Employees' Retirement System 681
who became a member of the system before July 1, 2007, and has at 682
least four (4) years of credited membership service, or who became 683
a member of the system on or after July 1, 2007, but before March 684
1, 2026, or any first responder who became a member of the system 685
on or after March 1, 2026, and who has at least eight (8) years of 686
credited membership service, shall be entitled to receive a 687
maximum of ten (10) years creditable service for: 688
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(a) Any service rendered as an employee of any 689
political subdivision of this state, or any instrumentality 690
thereof, that does not participate in the Public Employees' 691
Retirement System; or 692
(b) Any service rendered as an employee of any 693
political subdivision of this state, or any instrumentality 694
thereof, that participates in the Public Employees' Retirement 695
System but did not elect retroactive coverage; or 696
(c) Any service rendered as an employee of any 697
political subdivision of this state, or any instrumentality 698
thereof, for which coverage of the employee's position was or is 699
excluded; provided that the member pays into the retirement system 700
the actuarial cost as determined by the actuary for each year, or 701
portion thereof, of such service. After a member has made full 702
payment to the retirement system for all or any part of such 703
service, the member shall receive creditable service for the 704
period of such service for which full payment has been made to the 705
retirement system. 706
SECTION 3. Section 25-11-111, Mississippi Code of 1972, is 707
amended as follows: 708
25-11-111. (a) (1) Any member who became a member of the 709
system before July 1, 2007, upon withdrawal from service upon or 710
after attainment of the age of sixty (60) years who has completed 711
at least four (4) years of membership service, or any member who 712
became a member of the system before July 1, 2011, upon withdrawal 713
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from service regardless of age who has completed at least 714
twenty-five (25) years of creditable service, shall be entitled to 715
receive a retirement allowance, which shall begin on the first of 716
the month following the date the member's application for the 717
allowance is received by the board, but in no event before 718
withdrawal from service. 719
(2) Any member who became a member of the system on or 720
after July 1, 2007, but before March 1, 2026, or any first 721
responder who became a member of the system on or after March 1, 722
2026, upon withdrawal from service upon or after attainment of the 723
age of sixty (60) years who has completed at least eight (8) years 724
of membership service, or any member who became a member of the 725
system on or after July 1, 2011, but before March 1, 2026, or any 726
first responder who became a member of the system on or after 727
March 1, 2026, upon withdrawal from service regardless of age who 728
has completed at least thirty (30) years of creditable service, 729
shall be entitled to receive a retirement allowance, which shall 730
begin on the first of the month following the date the member's 731
application for the allowance is received by the board, but in no 732
event before withdrawal from service. 733
(3) Any member who became a member of the system on or 734
after March 1, 2026, except for a first responder who became a 735
member of the system on or after March 1, 2026, upon withdrawal 736
from service upon or after attainment of the age of sixty-two (62) 737
years who has completed at least eight (8) years of membership 738
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service, or upon withdrawal from service regardless of age who has 739
completed at least thirty-five (35) years of creditable service, 740
shall be entitled to receive a retirement allowance, which shall 741
begin on the first of the month following the date the member's 742
application for the allowance is received by the board, but in no 743
event before withdrawal from service. 744
(b) (1) Any member who became a member of the system before 745
July 1, 2007, whose withdrawal from service occurs before 746
attaining the age of sixty (60) years who has completed four (4) 747
or more years of membership service and has not received a refund 748
of his or her accumulated contributions, shall be entitled to 749
receive a retirement allowance, beginning upon his or her 750
attaining the age of sixty (60) years, of the amount earned and 751
accrued at the date of withdrawal from service. The retirement 752
allowance shall begin on the first of the month following the date 753
the member's application for the allowance is received by the 754
board, but in no event before withdrawal from service. 755
(2) Any member who became a member of the system on or 756
after July 1, 2007, but before March 1, 2026, or any first 757
responder who became a member of the system on or after March 1, 758
2026, whose withdrawal from service occurs before attaining the 759
age of sixty (60) years who has completed eight (8) or more years 760
of membership service and has not received a refund of his or her 761
accumulated contributions, shall be entitled to receive a 762
retirement allowance, beginning upon his or her attaining the age 763
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of sixty (60) years, of the amount earned and accrued at the date 764
of withdrawal from service. The retirement allowance shall begin 765
on the first of the month following the date the member's 766
application for the allowance is received by the board, but in no 767
event before withdrawal from service. 768
(3) Any member who became a member of the system on or 769
after March 1, 2026, except for a first responder who became a 770
member of the system on or after March 1, 2026, whose withdrawal 771
from service occurs before attaining the age of sixty-two (62) 772
years who has completed eight (8) or more years of membership 773
service and has not received a refund of his or her accumulated 774
contributions, shall be entitled to receive a retirement 775
allowance, beginning upon his or her attaining the age of 776
sixty-two (62) years, of the amount earned and accrued at the date 777
of withdrawal from service. The retirement allowance shall begin 778
on the first of the month following the date the member's 779
application for the allowance is received by the board, but in no 780
event before withdrawal from service. 781
(c) Any member in service who has qualified for retirement 782
benefits may select any optional method of settlement of 783
retirement benefits by notifying the Executive Director of the 784
Board of Trustees of the Public Employees' Retirement System in 785
writing, on a form prescribed by the board, of the option he or 786
she has selected and by naming the beneficiary of the option and 787
furnishing necessary proof of age. The option, once selected, may 788
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be changed at any time before actual retirement or death, but upon 789
the death or retirement of the member, the optional settlement 790
shall be placed in effect upon proper notification to the 791
executive director. 792
(d) Any member who became a member of the system before July 793
1, 2011, shall be entitled to an annual retirement allowance which 794
shall consist of: 795
(1) A member's annuity, which shall be the actuarial 796
equivalent of the accumulated contributions of the member at the 797
time of retirement computed according to the actuarial table in 798
use by the system; and 799
(2) An employer's annuity, which, together with the 800
member's annuity provided above, shall be equal to two percent 801
(2%) of the average compensation for each year of service up to 802
and including twenty-five (25) years of creditable service, and 803
two and one-half percent (2-1/2%) of the average compensation for 804
each year of service exceeding twenty-five (25) years of 805
creditable service. 806
(3) Any retired member or beneficiary thereof who was 807
eligible to receive a retirement allowance before July 1, 1991, 808
and who is still receiving a retirement allowance on July 1, 1992, 809
shall receive an increase in the annual retirement allowance of 810
the retired member equal to one-eighth of one percent (1/8 of 1%) 811
of the average compensation for each year of state service in 812
excess of twenty-five (25) years of membership service up to and 813
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including thirty (30) years. The maximum increase shall be 814
five-eighths of one percent (5/8 of 1%). In no case shall a 815
member who has been retired before July 1, 1987, receive less than 816
Ten Dollars ($10.00) per month for each year of creditable service 817
and proportionately for each quarter year thereof. Persons 818
retired on or after July 1, 1987, shall receive at least Ten 819
Dollars ($10.00) per month for each year of service and 820
proportionately for each quarter year thereof reduced for the 821
option selected. However, such Ten Dollars ($10.00) minimum per 822
month for each year of creditable service shall not apply to a 823
retirement allowance computed under Section 25-11-114 based on a 824
percentage of the member's average compensation. 825
(e) Any member who became a member of the system on or after 826
July 1, 2011, but before March 1, 2026, or any first responder who 827
became a member of the system on or after March 1, 2026, shall be 828
entitled to an annual retirement allowance which shall consist of: 829
(1) A member's annuity, which shall be the actuarial 830
equivalent of the accumulated contributions of the member at the 831
time of retirement computed according to the actuarial table in 832
use by the system; and 833
(2) An employer's annuity, which, together with the 834
member's annuity provided above, shall be equal to two percent 835
(2%) of the average compensation for each year of service up to 836
and including thirty (30) years of creditable service, and two and 837
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one-half percent (2-1/2%) of average compensation for each year of 838
service exceeding thirty (30) years of creditable service. 839
(f) Any member who became a member of the system on or after 840
July 1, 2011, but before March 1, 2026, or any first responder who 841
became a member of the system on or after March 1, 2026, upon 842
withdrawal from service upon or after attaining the age of sixty 843
(60) years who has completed at least eight (8) years of 844
membership service, or any such member upon withdrawal from 845
service regardless of age who has completed at least thirty (30) 846
years of creditable service, shall be entitled to receive a 847
retirement allowance computed in accordance with the formula set 848
forth in subsection (e) of this section. In the case of the 849
retirement of any member who has attained age sixty (60) but who 850
has not completed at least thirty (30) years of creditable 851
service, the retirement allowance shall be computed in accordance 852
with the formula set forth in subsection (e) of this section 853
except that the total annual retirement allowance shall be reduced 854
by an actuarial equivalent factor for each year of creditable 855
service below thirty (30) years or the number of years in age that 856
the member is below age sixty-five (65), whichever is less. 857
(g) Any member who became a member of the system on or after 858
March 1, 2026, except for a first responder who became a member of 859
the system on or after March 1, 2026, upon withdrawal from service 860
upon or after attainment of the age of sixty-five (65) years who 861
has completed at least eight (8) years of membership service, or 862
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upon withdrawal from service at the age of sixty-two (62) who has 863
completed at least thirty (30) years of creditable service, or 864
upon withdrawal from service regardless of age who has completed 865
at least thirty-five (35) years of creditable service, shall be 866
entitled to an annual retirement allowance which shall consist of 867
a member's annuity, which annuity shall be equal to one percent 868
(1%) of the average compensation for each year of creditable 869
service. In the case of the retirement of any member who has 870
attained the age of sixty-two (62) but has not completed at least 871
thirty (30) years of creditable service, the total annual 872
retirement allowance specified in this subsection (g) shall be 873
reduced by an actuarial equivalent factor for each year of 874
creditable service below thirty (30) years or the number of years 875
in age that the member is below age sixty-five (65), whichever is 876
less. 877
(h) No member, except members excluded by the Age 878
Discrimination in Employment Act Amendments of 1986 (Public Law 879
99-592), under either Article 1 or Article 3 in state service 880
shall be required to retire because of age. 881
(i) No payment on account of any benefit granted under the 882
provisions of this section shall become effective or begin to 883
accrue until January 1, 1953. 884
(j) (1) A retiree or beneficiary may, on a form prescribed 885
by and filed with the retirement system, irrevocably waive all or 886
a portion of any benefits from the retirement system to which the 887
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retiree or beneficiary is entitled. The waiver shall be binding 888
on the heirs and assigns of any retiree or beneficiary and the 889
same must agree to forever hold harmless the Public Employees' 890
Retirement System of Mississippi from any claim to the waived 891
retirement benefits. 892
(2) Any waiver under this subsection shall apply only 893
to the person executing the waiver. A beneficiary shall be 894
entitled to benefits according to the option selected by the 895
member at the time of retirement. However, a beneficiary may, at 896
the option of the beneficiary, execute a waiver of benefits under 897
this subsection. 898
(3) The retirement system shall retain in the annuity 899
reserve account amounts that are not used to pay benefits because 900
of a waiver executed under this subsection. 901
(4) The board of trustees may provide rules and 902
regulations for the administration of waivers under this 903
subsection. 904
SECTION 4. Section 25-11-112, Mississippi Code of 1972, is 905
amended as follows: 906
25-11-112. (1) Any member who became a member of the system 907
before March 1, 2026, or any first responder who became a member 908
of the system on or after March 1, 2026, who and is receiving a 909
retirement allowance for service or disability retirement, or any 910
beneficiary thereof, who has received a monthly benefit for at 911
least one (1) full fiscal year, shall be eligible to receive an 912
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additional benefit, on December 1 or July 1 of the year as 913
provided in subsection (3) of this section, equal to an amount 914
calculated under paragraph (a) or (b) below: 915
(a) For any member who became a member of the system 916
before July 1, 2011, the sum of: 917
(i) An amount equal to three percent (3%) of the 918
annual retirement allowance multiplied by the number of full 919
fiscal years in retirement before the end of the fiscal year in 920
which the member reaches age fifty-five (55), plus 921
(ii) An additional amount equal to three percent 922
(3%) compounded by the number of full fiscal years in retirement 923
beginning with the fiscal year in which the member reaches age 924
fifty-five (55), multiplied by the amount of the annual retirement 925
allowance. 926
(b) For any member who became a member of the system on 927
or after July 1, 2011, but before March 1, 2026, or for any first 928
responder who became a member of the system on or after March 1, 929
2026, the sum of: 930
(i) An amount equal to three percent (3%) of the 931
annual retirement allowance multiplied by the number of full 932
fiscal years in retirement before the end of the fiscal year in 933
which the member reaches age sixty (60), plus 934
(ii) An additional amount equal to three percent 935
(3%) compounded by the number of full fiscal years in retirement 936
beginning with the fiscal year in which the member reaches age 937
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sixty (60), multiplied by the amount of the annual retirement 938
allowance. 939
(2) The calculation of the beneficiary's additional benefit 940
under subsection (1)(a) or (b) of this section shall be based on 941
the member's age and full fiscal years in retirement as if the 942
member had lived. 943
(3) (a) The additional benefit provided for under this 944
section shall be paid in one (1) payment in December of each year 945
to those persons who are receiving a retirement allowance on 946
December 1 of that year, unless an election is made under this 947
subsection. However, if a retiree who is receiving a retirement 948
allowance that will terminate upon the retiree's death is 949
receiving the additional benefit in one (1) payment and dies on or 950
after July 1 but before December 1, the beneficiary designated on 951
the retirement application, if any, shall receive in a single 952
payment a fractional part of the additional benefit based on the 953
number of months in which a retirement allowance was received 954
during the fiscal year. Likewise, if a retiree is receiving a 955
retirement allowance that will terminate upon his or her death in 956
two (2) to six (6) monthly installments, any remaining payments of 957
the additional benefit will be paid in a lump sum to the 958
beneficiary designated on the application, or if none, pursuant to 959
Section 25-11-117.1(1). Any similar remaining payments of 960
additional benefits payable under this section to a deceased 961
beneficiary who was receiving a monthly benefit shall be payable 962
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in accordance with the provisions of Section 25-11-117.1(2). If 963
the additional monthly benefit is being received in one (1) 964
payment, the additional benefit shall also be prorated based on 965
the number of months in which a retirement allowance was received 966
during the fiscal year when (i) the monthly benefit payable to a 967
beneficiary terminates due to the expiration of an option, 968
remarriage or cessation of dependent status or due to the 969
retiree's return to covered employment, and (ii) the monthly 970
benefit terminates on or after July 1 and before December 1. The 971
board may, in its discretion, allow a retired member or a 972
beneficiary thereof who is receiving the additional annual payment 973
in the manner provided for in this paragraph to change the manner 974
in which the additional annual payment is received to that 975
provided for in paragraph (b) of this subsection if the retired 976
member or beneficiary submits satisfactory documentation that the 977
continued receipt of the additional annual payment as provided for 978
in this paragraph will cause a financial hardship to the retired 979
member or beneficiary. 980
(b) Retired members or beneficiaries thereof who on 981
July 1, 1999, or July 1 of any fiscal year thereafter, are 982
receiving a retirement allowance, may elect by an irrevocable 983
agreement in writing filed in the Office of the Public Employees' 984
Retirement System no less than thirty (30) days before July 1 of 985
the appropriate year, to begin receiving the additional benefit 986
provided for under this section in twelve (12) equal monthly 987
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installments beginning July 1, 1999, or July 1 of any fiscal year 988
thereafter. This irrevocable agreement shall be binding on the 989
member and subsequent beneficiaries. Payment of those monthly 990
installments shall not extend beyond the month in which a 991
retirement allowance is due and payable. The board may, in its 992
discretion, allow a retired member or a beneficiary thereof who is 993
receiving the additional annual payment in the manner provided for 994
in this paragraph to change the manner in which the additional 995
annual payment is received to that provided for in paragraph (a) 996
of this subsection if the retired member or beneficiary submits 997
satisfactory documentation that the continued receipt of the 998
additional annual payment as provided for in this paragraph will 999
cause a financial hardship to the retired member or beneficiary. 1000
(4) The additional payment or payments provided for under 1001
this section are for the fiscal year in which they are paid. 1002
(5) (a) The amount provided for under subsection (1) 1003
(a)(ii) of this section is calculated using the following formula: 1004
[(1.03)n - 1] x [annual retirement allowance], 1005
where n is the number of full fiscal years in retirement beginning 1006
with the fiscal year in which the member reaches age fifty-five 1007
(55). 1008
(b) The amount provided for under subsection (1)(b)(ii) 1009
of this section is calculated using the following formula: 1010
[(1.03)n - 1] x [annual retirement allowance], 1011
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where n is the number of full fiscal years in retirement beginning 1012
with the fiscal year in which the member reaches age sixty (60). 1013
(6) Any retired member or beneficiary thereof who has 1014
previously elected to receive the additional annual payment in 1015
monthly installments may elect, upon application on a form 1016
prescribed by the board of trustees, to have that payment made in 1017
one (1) additional payment each year. This written election must 1018
be filed in the Office of the Public Employees' Retirement System 1019
before June 1, 2000, and shall be effective for the fiscal year 1020
beginning July 1, 2000. 1021
(7) In the event of death of a retired member or a 1022
beneficiary thereof who is receiving the additional annual payment 1023
in two (2) to six (6) monthly installments pursuant to an election 1024
made before July 1, 1999, and who would otherwise be eligible to 1025
receive the additional benefit provided for under this section in 1026
one (1) payment in December of the current fiscal year, any 1027
remaining amounts shall be paid in a lump sum to the designated 1028
beneficiary. 1029
(8) When a member retires after July 1 and has previously 1030
received a retirement allowance for one or more full fiscal years, 1031
the retired member shall be eligible immediately for the 1032
additional benefit. The additional benefit shall be based on the 1033
current retirement allowance and the number of full fiscal years 1034
in retirement and shall be prorated and paid in monthly 1035
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installments based on the number of months a retirement allowance 1036
is paid during the fiscal year. 1037
(9) A member who became a member of the system on or after 1038
March 1, 2026, except for a first responder who became a member of 1039
the system on or after March 1, 2026, is not entitled to the 1040
additional annual benefit under this section; however, the 1041
Legislature may provide an additional benefit for a specific year. 1042
SECTION 5. Section 25-11-114, Mississippi Code of 1972, is 1043
amended as follows: 1044
25-11-114. (1) The applicable benefits provided in 1045
subsections (2) and (3) of this section shall be paid to eligible 1046
beneficiaries of any member who became a member of the system 1047
before July 1, 2007, and has completed four (4) or more years of 1048
membership service, or who became a member of the system on or 1049
after July 1, 2007, and has completed eight (8) or more years of 1050
membership service, and who dies before retirement and who has not 1051
filed a Pre-Retirement Optional Retirement Form as provided in 1052
Section 25-11-111. 1053
(2) (a) The surviving spouse of a member who dies before 1054
retirement shall receive a monthly benefit computed in accordance 1055
with paragraph (d) of this subsection (2) as if the member had 1056
nominated his or her spouse as beneficiary if: 1057
(i) The member completed the requisite minimum 1058
number of years of membership service to qualify for a retirement 1059
allowance at age sixty (60), for any member who became a member of 1060
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the system before March 1, 2026, or for any first responder who 1061
became a member of the system on or after March 1, 2026, or at age 1062
sixty-two (62), for any member who became a member of the system 1063
on or after March 1, 2026, except for any first responder who 1064
became a member of the system on or after March 1, 2026; 1065
(ii) The spouse has been married to the member for 1066
not less than one (1) year preceding the death of the member; 1067
(iii) The member has not exercised any other 1068
option. 1069
(b) If, at the time of the member's death, there are no 1070
dependent children, and the surviving spouse, who otherwise would 1071
receive the annuity under this subsection (2), has filed with the 1072
system a signed written waiver of his or her rights to the annuity 1073
and that waiver was in effect at the time of the member's death, a 1074
lump-sum distribution of the deceased member's accumulated 1075
contributions shall be refunded in accordance with Section 1076
25-11-117. 1077
(c) The spouse annuity shall begin on the first day of 1078
the month following the date of the member's death, but in case of 1079
late filing, retroactive payments will be made for a period of not 1080
more than one (1) year. 1081
(d) The spouse of a member who is eligible to receive a 1082
monthly benefit under paragraph (a) of this subsection (2) shall 1083
receive a benefit for life equal to the higher of the following: 1084
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(i) The greater of twenty percent (20%) of the 1085
deceased member's average compensation as defined in Section 1086
25-11-103 at the time of death or Fifty Dollars ($50.00) monthly; 1087
or 1088
(ii) Benefits calculated under Option 2 of Section 1089
25-11-115. The method of calculating the retirement benefits 1090
shall be on the same basis as provided in Section 25-11-111(d), 1091
(e) or (g), as applicable. However, if the member dies before 1092
being qualified for a full, unreduced retirement allowance, then 1093
the benefits shall be reduced by an actuarially determined 1094
percentage or factor based on the lesser of either the number of 1095
years of service credit or the number of years in age required to 1096
qualify for a full, unreduced retirement allowance in Section 1097
25-11-111(d), (e) or (g), as applicable. 1098
(e) The surviving spouse of a deceased member who 1099
previously received spouse retirement benefits under paragraph 1100
(d)(i) of this subsection from and after July 1, 1992, and whose 1101
benefits were terminated before July 1, 2004, because of 1102
remarriage, may again receive the retirement benefits authorized 1103
under paragraph (d)(i) of this subsection by making application 1104
with the board to reinstate those benefits. Any reinstatement of 1105
the benefits shall be prospective only and shall begin after the 1106
first of the month following the date of the application for 1107
reinstatement, but no earlier than July 1, 2004. From and after 1108
July 1, 2010, any spouse who chose Option 2 from and after July 1, 1109
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1992, but before July 1, 2004, where the benefit, although payable 1110
for life, was less than the benefit available under the 1111
calculation in paragraph (d)(i) of this subsection shall have his 1112
or her benefit increased to the amount which provides the greater 1113
benefit. 1114
(3) (a) Subject to the maximum limitation provided in this 1115
paragraph, the member's dependent children each shall receive an 1116
annuity of the greater of ten percent (10%) of the member's 1117
average compensation as defined in Section 25-11-103 at the time 1118
of the death of the member or Fifty Dollars ($50.00) monthly; 1119
however, if there are more than three (3) dependent children, each 1120
dependent child shall receive an equal share of a total annuity 1121
equal to thirty percent (30%) of the member's average 1122
compensation, provided that the total annuity shall not be less 1123
than One Hundred Fifty Dollars ($150.00) per month for all 1124
children. 1125
(b) A child shall be considered to be a dependent child 1126
until marriage, or the attainment of age nineteen (19), whichever 1127
comes first; however, this age limitation shall be extended beyond 1128
age nineteen (19), but in no event beyond the attainment of age 1129
twenty-three (23), as long as the child is a student regularly 1130
pursuing a full-time course of resident study or training in an 1131
accredited high school, trade school, technical or vocational 1132
institute, junior or community college, college, university or 1133
comparable recognized educational institution duly licensed by a 1134
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state. A student child who is receiving a retirement allowance as 1135
of June 30, 2016, whose birthday falls during the school year 1136
(September 1 through June 30) is considered not to reach age 1137
twenty-three (23) until the July 1 following the actual 1138
twenty-third birthday. A full-time course of resident study or 1139
training means a day or evening noncorrespondence course that 1140
includes school attendance at the rate of at least thirty-six (36) 1141
weeks per academic year or other applicable period with a subject 1142
load sufficient, if successfully completed, to attain the 1143
educational or training objective within the period generally 1144
accepted as minimum for completion, by a full-time day student, of 1145
the academic or training program concerned. Any child who is 1146
physically or mentally incompetent, as adjudged by either a 1147
Mississippi court of competent jurisdiction or by the board, shall 1148
receive benefits for as long as the incompetency exists. 1149
(c) If there are more than three (3) dependent 1150
children, upon a child's ceasing to be a dependent child, his or 1151
her annuity shall terminate and there shall be a redetermination 1152
of the amounts payable to any remaining dependent children. 1153
(d) Annuities payable under this subsection (3) shall 1154
begin the first day of the month following the date of the 1155
member's death or in case of late filing, retroactive payments 1156
will be made for a period of not more than one (1) year. Those 1157
benefits may be paid to a surviving parent or the lawful custodian 1158
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of a dependent child for the use and benefit of the child without 1159
the necessity of appointment as guardian. 1160
(4) (a) Death benefits in the line of duty. Regardless of 1161
the number of years of the member's creditable service, the spouse 1162
and/or the dependent children of an active member who is killed or 1163
dies as a direct result of a physical injury sustained from an 1164
accident or a traumatic event caused by external violence or 1165
physical force occurring in the line of performance of duty shall 1166
qualify, on approval of the board, for a retirement allowance on 1167
the first of the month following the date of death, but in the 1168
case of late filing, retroactive payments will be made for a 1169
period of not more than one (1) year. The spouse shall receive a 1170
retirement allowance for life equal to one-half (1/2) of the 1171
average compensation as defined in Section 25-11-103. In addition 1172
to the retirement allowance for the spouse, or if there is no 1173
surviving spouse, the member's dependent child shall receive a 1174
retirement allowance in the amount of one-fourth (1/4) of the 1175
member's average compensation as defined in Section 25-11-103; 1176
however, if there are two (2) or more dependent children, each 1177
dependent child shall receive an equal share of a total annuity 1178
equal to one-half (1/2) of the member's average compensation. If 1179
there are more than two (2) dependent children, upon a child's 1180
ceasing to be a dependent child, his or her annuity shall 1181
terminate and there shall be a redetermination of the amounts 1182
payable to any remaining dependent children. Those benefits shall 1183
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cease to be paid for the support and maintenance of each child 1184
upon the child attaining the age of nineteen (19) years; however, 1185
the spouse shall continue to be eligible for the aforesaid 1186
retirement allowance. Those benefits may be paid to a surviving 1187
parent or lawful custodian of the children for the use and benefit 1188
of the children without the necessity of appointment as guardian. 1189
Any spouse who received spouse retirement benefits under this 1190
paragraph (a) from and after April 4, 1984, and whose benefits 1191
were terminated before July 1, 2004, because of remarriage, may 1192
again receive the retirement benefits authorized under this 1193
paragraph (a) by making application with the board to reinstate 1194
those benefits. Any reinstatement of the benefits shall be 1195
prospective only and shall begin after the first of the month 1196
following the date of the application for reinstatement, but not 1197
earlier than July 1, 2004. 1198
(b) A child shall be considered to be a dependent child 1199
until marriage, or the attainment of age nineteen (19), whichever 1200
comes first; however, this age limitation shall be extended beyond 1201
age nineteen (19), but in no event beyond the attainment of age 1202
twenty-three (23), as long as the child is a student regularly 1203
pursuing a full-time course of resident study or training in an 1204
accredited high school, trade school, technical or vocational 1205
institute, junior or community college, college, university or 1206
comparable recognized educational institution duly licensed by a 1207
state. A student child who is receiving a retirement allowance as 1208
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of June 30, 2016, whose birthday falls during the school year 1209
(September 1 through June 30) is considered not to reach age 1210
twenty-three (23) until the July 1 following the actual 1211
twenty-third birthday. A full-time course of resident study or 1212
training means a day or evening noncorrespondence course that 1213
includes school attendance at the rate of at least thirty-six (36) 1214
weeks per academic year or other applicable period with a subject 1215
load sufficient, if successfully completed, to attain the 1216
educational or training objective within the period generally 1217
accepted as minimum for completion, by a full-time day student, of 1218
the academic or training program concerned. Any child who is 1219
physically or mentally incompetent, as adjudged by either a 1220
Mississippi court of competent jurisdiction or by the board, shall 1221
receive benefits for as long as the incompetency exists. 1222
(5) If all the annuities provided for in this section 1223
payable on account of the death of a member terminate before there 1224
has been paid an aggregate amount equal to the member's 1225
accumulated contributions standing to the member's credit in the 1226
annuity savings account at the time of the member's death, the 1227
difference between the accumulated contributions and the aggregate 1228
amount of annuity payments shall be paid to the person that the 1229
member has nominated by written designation duly executed and 1230
filed with the board. If there is no designated beneficiary 1231
surviving at termination of benefits, the difference shall be 1232
payable under Section 25-11-117.1(1). 1233
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(6) Regardless of the number of years of creditable service, 1234
upon the application of a member or employer, any active member 1235
who becomes disabled as a direct result of a physical injury 1236
sustained from an accident or traumatic event caused by external 1237
violence or physical force occurring in the line of performance of 1238
duty, provided that the medical board or other designated 1239
governmental agency after a medical examination certifies that the 1240
member is mentally or physically incapacitated for the further 1241
performance of duty and the incapacity is likely to be permanent, 1242
may be retired by the board of trustees on the first of the month 1243
following the date of filing the application but in no event shall 1244
the retirement allowance begin before the termination of state 1245
service. If a member who has been approved for a retirement 1246
allowance under this subsection does not terminate state service 1247
within ninety (90) days after the approval, the retirement 1248
allowance and the application for the allowance shall be void. 1249
The retirement allowance shall equal the allowance on disability 1250
retirement as provided in Section 25-11-113 but shall not be less 1251
than fifty percent (50%) of average compensation. Line of duty 1252
disability benefits under this section shall be administered in 1253
accordance with the provisions of Section 25-11-113(1)(b), (c), 1254
(d), (e) and (f), (3), (4), (5) and (6). 1255
(7) For purposes of determining death or disability benefits 1256
under this section, the following shall apply: 1257
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(a) Death or permanent and total disability resulting 1258
from a cardiovascular, pulmonary or musculoskeletal condition that 1259
was not a direct result of a physical injury sustained from an 1260
accident or a traumatic event caused by external violence or 1261
physical force occurring in the performance of duty shall be 1262
deemed a natural death or an ordinary disability. 1263
(b) A mental disability based exclusively on employment 1264
duties occurring on an ongoing basis shall be deemed an ordinary 1265
disability. 1266
(8) If the deceased or disabled member has less than four 1267
(4) years of membership service, the average compensation as 1268
defined in Section 25-11-103 shall be the average of all annual 1269
earned compensation in state service for the purposes of benefits 1270
provided in this section. 1271
(9) In case of death or total and permanent disability under 1272
subsection (4) or subsection (6) of this section and before the 1273
board shall consider any application for a retirement allowance, 1274
the employer must certify to the board that the member's death or 1275
disability was a direct result of an accident or a traumatic event 1276
occurring during and as a result of the performance of the regular 1277
and assigned duties of the employee and that the death or 1278
disability was not the result of the willful negligence of the 1279
employee. 1280
(10) The application for the retirement allowance must be 1281
filed within one (1) year after death of an active member who is 1282
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killed in the line of performance of duty or dies as a direct 1283
result of an accident occurring in the line of performance of duty 1284
or traumatic event; but the board of trustees may consider an 1285
application for disability filed after the one-year period if it 1286
can be factually demonstrated to the satisfaction of the board of 1287
trustees that the disability is due to the accident and that the 1288
filing was not accomplished within the one-year period due to a 1289
delayed manifestation of the disability or to circumstances beyond 1290
the control of the member. However, in case of late filing, 1291
retroactive payments will be made for a period of not more than 1292
one (1) year only. 1293
(11) (a) Notwithstanding any other section of this article 1294
and in lieu of any payments to a designated beneficiary for a 1295
refund of contributions under Section 25-11-117, the spouse and/or 1296
children shall be eligible for the benefits payable under this 1297
section, and the spouse may elect, for both the spouse and/or 1298
children, to receive benefits in accordance with either 1299
subsections (2) and (3) or subsection (4) of this section; 1300
otherwise, the contributions to the credit of the deceased member 1301
shall be refunded in accordance with Section 25-11-117. 1302
(b) Notwithstanding any other section of this article, 1303
a spouse who is entitled to receive a monthly benefit under either 1304
subsection (2) or (4) of this section and who is also the named 1305
beneficiary for a refund of accumulated contributions in the 1306
member's annuity savings account, may, after the death of the 1307
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member, elect to receive a refund of accumulated contributions in 1308
lieu of a monthly allowance, provided that there are no dependent 1309
children entitled to benefits under subsection (3) of this 1310
section. 1311
(12) If the member has previously received benefits from the 1312
system to which he or she was not entitled and has not repaid in 1313
full all amounts payable by him or her to the system, the annuity 1314
amounts otherwise provided by this section shall be withheld and 1315
used to effect repayment until the total of the withholdings 1316
repays in full all amounts payable by him or her to the system. 1317
SECTION 6. Section 25-11-115, Mississippi Code of 1972, is 1318
amended as follows: 1319
25-11-115. (1) Upon application for superannuation or 1320
disability retirement, any member may elect to receive his or her 1321
benefit in a retirement allowance payable throughout life with no 1322
further payments to anyone at the member's death, except that if 1323
the member's total retirement payments under this article do not 1324
equal the member's total contributions under this article, the 1325
named beneficiary shall receive the difference in cash at the 1326
member's death. Or the member may elect upon retirement, or upon 1327
becoming eligible for retirement, to receive the actuarial 1328
equivalent subject to the provisions of subsection (3) of this 1329
section of his or her retirement allowance in a reduced retirement 1330
allowance payable throughout life with the provision that: 1331
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Option 1. If the retired member dies before he or she has 1332
received in annuity payment the value of the member's annuity 1333
savings account as it was at the time of the member's retirement, 1334
the balance shall be paid to the legal representative or to such 1335
person as the member has nominated by written designation duly 1336
acknowledged and filed with the board; 1337
Option 2. Upon the retired member's death, his or her 1338
reduced retirement allowance shall be continued throughout the 1339
life of, and paid to, such person as the member has nominated by 1340
written designation duly acknowledged and filed with the board of 1341
trustees at the time of his or her retirement; 1342
Option 3. Upon the retired member's death, one-half (1/2) of 1343
his or her reduced retirement allowance shall be continued 1344
throughout the life of, and paid to, such person as the member has 1345
nominated by written designation duly acknowledged and filed with 1346
the board of trustees at the time of his or her retirement, and 1347
the other one-half (1/2) of his or her reduced retirement 1348
allowance to some other designated beneficiary; 1349
Option 4. Upon the retired member's death, three-fourths 1350
(3/4) of his or her reduced retirement allowance, or such other 1351
specified amount, shall be continued throughout the life of, and 1352
paid to, such person as the member has nominated by written 1353
designation duly acknowledged and filed with the board of trustees 1354
at the time of his or her retirement; 1355
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Option 4-A. Upon the retired member's death, one-half (1/2) 1356
of his or her reduced retirement allowance, or such other 1357
specified amount, shall be continued throughout the life of, and 1358
paid to, such person as the member has nominated by written 1359
designation duly acknowledged and filed with the board of trustees 1360
at the time of his or her retirement; 1361
Option 4-B. A reduced retirement allowance shall be 1362
continued throughout the life of the retirant, but with the 1363
further guarantee of payments to the named beneficiary or 1364
beneficiaries for a specified number of years certain. If the 1365
retired member or the last designated beneficiary both die before 1366
receiving all guaranteed payments due, the actuarial equivalent of 1367
the remaining payments shall be paid to the successors of the 1368
retired member under Section 25-11-117.1(1); 1369
Option 6. Any member who became a member of the system 1370
before July 1, 2007, and who has at least twenty-eight (28) years 1371
of creditable service at the time of retirement or who is at least 1372
sixty-three (63) years of age and eligible to retire, may select 1373
the maximum retirement benefit or an optional benefit as provided 1374
in this subsection together with a partial lump-sum distribution. 1375
Any member who became a member of the system on or after July 1, 1376
2007, but before July 1, 2011, and who has at least twenty-eight 1377
(28) years of creditable service at the time of retirement may 1378
select the maximum retirement benefit or any optional benefit as 1379
provided in this subsection together with a partial lump-sum 1380
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distribution. Any member who became a member of the system on or 1381
after July 1, 2011, but before March 1, 2026, or any first 1382
responder who became a member of the system on or after March 1, 1383
2026, and who has at least thirty-three (33) years of creditable 1384
service at the time of retirement may select the maximum 1385
retirement benefit or any optional benefit as provided in this 1386
subsection together with a partial lump-sum distribution. Any 1387
member who became a member of the system on or after March 1, 1388
2026, except for a first responder who became a member of the 1389
system on or after March 1, 2026, shall not be eligible for a 1390
partial lump-sum distribution. The amount of the lump-sum 1391
distribution under this option shall be equal to the maximum 1392
monthly benefit multiplied by twelve (12), twenty-four (24) or 1393
thirty-six (36) as selected by the member. The maximum retirement 1394
benefit shall be actuarially reduced to reflect the amount of the 1395
lump-sum distribution selected and further reduced for any other 1396
optional benefit selected. The annuity and lump-sum distribution 1397
shall be computed to result in no actuarial loss to the system. 1398
The lump-sum distribution shall be made as a single payment 1399
payable at the time the first monthly annuity payment is paid to 1400
the retiree. The amount of the lump-sum distribution shall be 1401
deducted from the member's annuity savings account in computing 1402
what contributions remain at the death of the retiree and/or a 1403
beneficiary. The lump-sum distribution option may be elected only 1404
once by a member upon initial retirement, and may not be elected 1405
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by a retiree, by members applying for a disability retirement 1406
annuity, or by survivors. 1407
(2) No change in the option selected shall be permitted 1408
after the member's death or after the member has received his or 1409
her first retirement check except as provided in subsections (3) 1410
and (4) of this section and in Section 25-11-127. Members who are 1411
pursuing a disability retirement allowance and simultaneously or 1412
later elect to begin to receive a service retirement allowance 1413
while continuing to pursue a disability retirement allowance, 1414
shall not be eligible to select Option 6 and that option may not 1415
be selected at a later time if the application for a disability 1416
retirement allowance is voided or denied. However, any retired 1417
member who is receiving a retirement allowance under Option 2 or 1418
Option 4-A upon July 1, 1992, and whose designated beneficiary 1419
predeceased him or her or whose marriage to a spouse who is his or 1420
her designated beneficiary is terminated by divorce or other 1421
dissolution, upon written notification to the retirement system of 1422
the death of the designated beneficiary or of the termination of 1423
the retired member's marriage to the designated beneficiary, the 1424
retirement allowance payable to the member after receipt of that 1425
notification by the retirement system shall be equal to the 1426
retirement allowance that would have been payable if the member 1427
had not elected the option. In addition, any retired member who 1428
is receiving the maximum retirement allowance for life, a 1429
retirement allowance under Option 1 or who is receiving a 1430
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retirement allowance under Option 2 or Option 4-A on July 1, 1992, 1431
may elect to provide survivor benefits under Option 2 or Option 1432
4-A to a spouse who was not previously the member's beneficiary 1433
and whom the member married before July 1, 1992. 1434
(3) Any retired member who is receiving a reduced retirement 1435
allowance under Option 2, Option 4 or Option 4-A whose designated 1436
beneficiary predeceases him or her, or whose marriage to a spouse 1437
who is his or her designated beneficiary is terminated by divorce 1438
or other dissolution, may elect to cancel the reduced retirement 1439
allowance and receive the maximum retirement allowance for life in 1440
an amount equal to the amount that would have been payable if the 1441
member had not elected Option 2, Option 4 or Option 4-A. That 1442
election must be made in writing to the office of the executive 1443
director of the system on a form prescribed by the board. Any 1444
such election shall be effective the first of the month following 1445
the date the election is received by the system; however, the 1446
election may be applied retroactively for not more than three (3) 1447
months but no earlier than the first of the month following the 1448
date of the death of the beneficiary. 1449
(4) Any retired member who is receiving the maximum 1450
retirement allowance for life, or a retirement allowance under 1451
Option 1, and who marries after his or her retirement may elect to 1452
cancel the maximum retirement allowance and receive a reduced 1453
retirement allowance under Option 2, Option 4 or Option 4-A to 1454
provide continuing lifetime benefits to his or her spouse. That 1455
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election must be made in writing to the office of the executive 1456
director of the system on a form prescribed by the board not 1457
earlier than the date of the marriage and not later than one (1) 1458
year from the date of the marriage. Any such election shall be 1459
effective the first of the month following the date the election 1460
is received by the system. 1461
(5) (a) Except as otherwise provided in this subsection, if 1462
the election of an optional benefit is made after the member has 1463
attained the age of sixty-five (65) years, the actuarial 1464
equivalent factor shall be used to compute the reduced retirement 1465
allowance as if the election had been made on his or her 1466
sixty-fifth birthday; however, from and after January 1, 2003, if 1467
there is an election of Option 6 after the member has attained the 1468
age of sixty-five (65) years, the actuarial equivalent factor 1469
based on the retiree's age at the time of retirement shall be used 1470
to compute the reduced maximum monthly retirement allowance. 1471
However, if a retiree marries or remarries after retirement and 1472
elects either Option 2 or Option 4-A as provided in subsection (2) 1473
or (4) of this section, the actuarial equivalent factor used to 1474
compute the reduced retirement allowance shall be the factor for 1475
the age of the retiree and his or her beneficiary at the time such 1476
election for recalculation of benefits is made. 1477
(b) For members who retire on or after July 1, 2012, 1478
the actuarial equivalent factor used to compute the reduced 1479
retirement allowance at retirement or upon any subsequent 1480
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recalculation of the benefit shall be the factor for the age of 1481
the retiree and his or her beneficiary at the time of retirement 1482
or at the time an election for recalculation of benefits is made. 1483
(6) Notwithstanding any provision of Section 25-11-1 et 1484
seq., no payments may be made for a retirement allowance on a 1485
monthly basis for a period of time in excess of that allowed by 1486
federal law. 1487
(7) If a retirant and his or her eligible beneficiary, if 1488
any, both die before they have received in annuity payments a 1489
total amount equal to the accumulated contributions standing to 1490
the retirant's credit in the annuity savings account at the time 1491
of his or her retirement, the difference between the accumulated 1492
contributions and the total amount of annuities received by them 1493
shall be paid to such persons as the retirant has nominated by 1494
written designation duly executed and filed in the office of the 1495
executive director. If no designated person survives the retirant 1496
and his or her beneficiary, the difference, if any, shall be paid 1497
under Section 25-11-117.1(1). 1498
(8) Any retired member who retired on Option 2(5) or 4-A(5) 1499
before July 1, 1992, who is still receiving a retirement allowance 1500
on July 1, 1994, shall receive an increase in the annual 1501
retirement allowance effective July 1, 1994, equal to the amount 1502
they would have received under Option 2 or Option 4-A without a 1503
reduction for Option 5 based on the ages at retirement of the 1504
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retiree and beneficiary and option factors in effect on July 1, 1505
1992. That increase shall be prospective only. 1506
SECTION 7. Section 25-11-117, Mississippi Code of 1972, is 1507
amended as follows: 1508
25-11-117. (1) A member may be paid a refund of the amount 1509
of accumulated contributions to the credit of the member in the 1510
annuity savings account, provided that the member has withdrawn 1511
from state service and has not returned to state service on the 1512
date the refund of the accumulated contributions would be paid. 1513
That refund of the contributions to the credit of the member in 1514
the annuity savings account shall be paid within ninety (90) days 1515
from receipt in the office of the retirement system of the 1516
properly completed form requesting the payment. In the event of 1517
death before retirement of any member whose spouse and/or children 1518
are not entitled to a retirement allowance, the accumulated 1519
contributions to the credit of the deceased member in the annuity 1520
savings account shall be paid to the designated beneficiary on 1521
file in writing in the office of the executive director of the 1522
board of trustees within ninety (90) days from receipt of a 1523
properly completed form requesting the payment. If there is no 1524
such designated beneficiary on file for the deceased member in the 1525
office of the system, upon the filing of a proper request with the 1526
board, the contributions to the credit of the deceased member in 1527
the annuity savings account shall be refunded under Section 1528
25-11-117.1(1). The payment of the refund shall discharge all 1529
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obligations of the retirement system to the member on account of 1530
any creditable service rendered by the member before the receipt 1531
of the refund. By the acceptance of the refund, the member shall 1532
waive and relinquish all accrued rights in the system. 1533
(2) Under the Unemployment Compensation Amendments of 1992 1534
(Public Law 102-318 (UCA)), a member or the spouse of a member who 1535
is an eligible beneficiary entitled to a refund under this section 1536
may elect, on a form prescribed by the board under rules and 1537
regulations established by the board, to have an eligible rollover 1538
distribution of accumulated contributions payable under this 1539
section paid directly to an eligible retirement plan, as defined 1540
under applicable federal law, or an individual retirement account. 1541
If the member or the spouse of a member who is an eligible 1542
beneficiary makes that election and specifies the eligible 1543
retirement plan or individual retirement account to which the 1544
distribution is to be paid, the distribution will be made in the 1545
form of a direct trustee-to-trustee transfer to the specified 1546
eligible retirement plan. A nonspouse beneficiary may elect to 1547
have an eligible rollover distribution paid in the form of a 1548
direct trustee-to-trustee transfer to an individual retirement 1549
account established to receive the distribution on behalf of the 1550
nonspouse beneficiary. Flexible rollovers under this subsection 1551
shall not be considered assignments under Section 25-11-129. 1552
(3) (a) If any person who has received a refund, reenters 1553
the state service and again becomes a member of the system before 1554
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July 1, 2007, the member may repay all or part of the amounts 1555
previously received as a refund, together with regular interest 1556
covering the period from the date of refund to the date of 1557
repayment; however, the amounts that are repaid by the member and 1558
the creditable service related thereto shall not be used in any 1559
benefit calculation or determination until the member has remained 1560
a contributor to the system for a period of at least four (4) 1561
years after the member's reentry into state service. Repayment 1562
for that time shall be made beginning with the most recent service 1563
for which refund has been made. Upon the repayment of all or part 1564
of that refund and interest, the member shall again receive credit 1565
for the period of creditable service for which full repayment has 1566
been made to the system. 1567
(b) If any person who has received a refund, reenters 1568
the state service and again becomes a member of the system on or 1569
after July 1, 2007, but before March 1, 2026, or if any first 1570
responder who became a member of the system on or after March 1, 1571
2026, has received a refund, reenters the state service and again 1572
becomes a member of the system, the member may repay all or part 1573
of the amounts previously received as a refund, together with 1574
regular interest covering the period from the date of refund to 1575
the date of repayment; however, the amounts that are repaid by the 1576
member and the creditable service related thereto shall not be 1577
used in any benefit calculation or determination until the member 1578
has remained a contributor to the system for a period of at least 1579
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eight (8) years after the member's reentry into state service. 1580
Repayment for that time shall be made beginning with the most 1581
recent service for which refund has been made. Upon the repayment 1582
of all or part of that refund and interest, the member shall again 1583
receive credit for the period of creditable service for which full 1584
repayment has been made to the system. 1585
(c) If any person who has received a refund reenters 1586
state service and again becomes a member of the system on or after 1587
March 1, 2026, except for a first responder who became a member of 1588
the system on or after March 1, 2026, the member shall not be 1589
eligible to repay any portion of amounts previously received as a 1590
refund and may not receive creditable service for service rendered 1591
before March 1, 2026. 1592
(4) (a) In order to provide a source of income to members 1593
who have applied for disability benefits under Section 25-11-113 1594
or 25-11-114, the board may provide, at the employee's election, a 1595
temporary benefit to be paid from the member's accumulated 1596
contributions, if any, without forfeiting the right to pursue 1597
disability benefits, provided that the member has exhausted all 1598
personal and medical leave and has terminated his or her 1599
employment. The board may prescribe rules and regulations for 1600
carrying out the provisions of this subsection (4). 1601
(b) If a member who has elected to receive temporary 1602
benefits under this subsection later applies for a refund of his 1603
or her accumulated contributions, all amounts paid under this 1604
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subsection shall be deducted from the accumulated contributions 1605
and the balance will be paid to the member. If a member who has 1606
elected to receive temporary benefits under this subsection is 1607
later approved for a disability retirement allowance, and a 1608
service retirement allowance or survivor benefits are paid on the 1609
account, the board shall adjust the benefits in such a manner that 1610
no more than the actuarial equivalent of the benefits to which the 1611
member or beneficiary was or is entitled shall be paid. 1612
(c) The board may study, develop and propose a 1613
disability benefit structure, including short- and long-term 1614
disability benefits, provided that it is the actuarial equivalent 1615
of the benefits currently provided in Section 25-11-113 or 1616
25-11-114. 1617
SECTION 8. Section 25-11-123, Mississippi Code of 1972, is 1618
amended as follows: 1619
25-11-123. All of the assets of the system shall be credited 1620
according to the purpose for which they are held to one (1) of 1621
four (4) reserves; namely, the annuity savings account, the 1622
annuity reserve, the employer's accumulation account, and the 1623
expense account; however, any employee who became a member of the 1624
system on or after March 1, 2026, except for a first responder who 1625
became a member of the system on or after March 1, 2026, shall 1626
also have a defined contribution plan administered by the system, 1627
as provided in Section 25-11-147. 1628
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(a) Annuity savings account. In the annuity savings 1629
account shall be accumulated the contributions made by members to 1630
provide for their annuities, including interest thereon which 1631
shall be posted monthly. Credits to and charges against the 1632
annuity savings account shall be made as follows: 1633
(1) Beginning July 1, 2010, except as otherwise 1634
provided in Section 25-11-126, the employer shall cause to be 1635
deducted from the salary of each member on each and every payroll 1636
of the employer for each and every payroll period nine percent 1637
(9%) of earned compensation as defined in Section 25-11-103; 1638
however, for any employee who became a member of the system on or 1639
after March 1, 2026, except for a first responder who became a 1640
member of the system on or after March 1, 2026, only four percent 1641
(4%) of such earned compensation shall be deposited into the 1642
annuity savings account, with the remaining five percent (5%), to 1643
be deposited into the employee's defined contribution account 1644
authorized in Section 25-11-147. Future contributions shall be 1645
fixed biennially by the board on the basis of the liabilities of 1646
the retirement system for the various allowances and benefits as 1647
shown by actuarial valuation; however, any member earning at a 1648
rate less than Sixteen Dollars and Sixty-seven Cents ($16.67) per 1649
month, or Two Hundred Dollars ($200.00) per year, shall contribute 1650
not less than One Dollar ($1.00) per month, or Twelve Dollars 1651
($12.00) per year. 1652
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(2) The deductions provided in paragraph (1) of 1653
this subsection shall be made notwithstanding that the minimum 1654
compensation provided by law for any member is reduced by the 1655
deduction. Every member shall be deemed to consent and agree to 1656
the deductions made and provided for in paragraph (1) of this 1657
subsection and shall receipt for his or her full salary or 1658
compensation, and payment of salary or compensation less the 1659
deduction shall be a full and complete discharge and acquittance 1660
of all claims and demands whatsoever for the services rendered by 1661
the person during the period covered by the payment, except as to 1662
the benefits provided under Articles 1 and 3. The board shall 1663
provide by rules for the methods of collection of contributions 1664
from members and the employer. The board shall have full 1665
authority to require the production of evidence necessary to 1666
verify the correctness of amounts contributed. 1667
(b) Annuity reserve. The annuity reserve shall be the 1668
account representing the actuarial value of all annuities in 1669
force, and to it shall be charged all annuities and all benefits 1670
in lieu of annuities, payable as provided in this article. If a 1671
beneficiary retired on account of disability is restored to active 1672
service with a compensation not less than his or her average final 1673
compensation at the time of his or her last retirement, the 1674
remainder of his or her contributions shall be transferred from 1675
the annuity reserve to the annuity savings account and credited to 1676
his or her individual account therein, and the balance of his or 1677
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her annuity reserve shall be transferred to the employer's 1678
accumulation account. 1679
(c) Employer's accumulation account. The employer's 1680
accumulation account shall represent the accumulation of all 1681
reserves for the payment of all retirement allowances and other 1682
benefits payable from contributions made by the employer, and 1683
against this account shall be charged all retirement allowances 1684
and other benefits on account of members. Credits to and charges 1685
against the employer's accumulation account shall be made as 1686
follows: 1687
(1) On account of each member who became a member 1688
of the system before March 1, 2026, and each first responder who 1689
became a member of the system on or after March 1, 2026, there 1690
shall be paid monthly into the employer's accumulation account by 1691
the employers for the preceding fiscal year an amount equal to a 1692
certain percentage of the total earned compensation, as defined in 1693
Section 25-11-103, of each member. From and after May 9, 2024, 1694
the increase in the employer's contribution rate scheduled to take 1695
effect on July 1, 2024, is rescinded and shall not take effect; 1696
however, on July 1 of each year from 2024 through 2028, the 1697
employer's contribution rate shall be increased by one-half 1698
percent (1/2%). For each member who became a member of the system 1699
on or after March 1, 2026, except for a first responder who became 1700
a member of the system on or after March 1, 2026, and except as 1701
provided in Section 25-11-147, the employer's monthly payment 1702
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under this paragraph (1) shall be applied to the accrued liability 1703
contribution fund. 1704
(2) For the public good, any recommendation by the 1705
board to adjust the employer contributions may be accompanied by 1706
at least two (2) assessments from actuaries who are independent 1707
from each other and the retirement plan. The actuaries shall 1708
analyze the economic impact of any such recommendation to the 1709
system and state, including, but not limited to, information 1710
showing the fiscal impact to every agency and arm of the state, 1711
including, but not limited to, state agencies, cities, counties 1712
and school districts. The actuarial assessments, with any such 1713
recommendation to adjust the employer contributions, shall be 1714
submitted to the Lieutenant Governor, Speaker of the House, 1715
Chairman of the Senate Appropriations Committee and Chairman of 1716
the House Appropriations Committee. 1717
(3) The board shall have the authority to make 1718
recommendations regarding additional funding sources for the 1719
retirement plan, including employer contribution increases, based 1720
on the assets and liabilities of the retirement plan, and the 1721
analyses required by paragraph (2) of this subsection (c). The 1722
Legislature shall have the sole authority to implement any such 1723
recommendations. It is the intent of the Legislature that, in the 1724
2025 Regular Session, a law be enacted to create a new tier for 1725
future members of the system, in furtherance of the system's 1726
continued financial stability and sustainability. 1727
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(4) This section shall not be construed to provide 1728
authority to reduce or eliminate any earned benefits to be 1729
provided by the state to persons who, before July 1, 2025, are 1730
drawing a retirement allowance or are members of the system. 1731
(5) On the basis of regular interest and of such 1732
mortality and other tables as are adopted by the board of 1733
trustees, the actuary engaged by the board to make each valuation 1734
required by this article during the period over which the accrued 1735
liability contribution is payable, immediately after making that 1736
valuation, shall determine the uniform and constant percentage of 1737
the earnable compensation of each member which, if contributed by 1738
the employer on the basis of compensation of the member throughout 1739
his or her entire period of membership service, would be 1740
sufficient to provide for the payment of any retirement allowance 1741
payable on his or her account for that service. The percentage 1742
rate so determined shall be known as the "normal contribution 1743
rate." After the accrued liability contribution has ceased to be 1744
payable, the normal contribution rate shall be the percentage rate 1745
of the salary of all members obtained by deducting from the total 1746
liabilities on account of membership service the amount in the 1747
employer's accumulation account, and dividing the remainder by one 1748
percent (1%) of the present value of the prospective future 1749
salaries of all members as computed on the basis of the mortality 1750
and service tables adopted by the board of trustees and regular 1751
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interest. The normal rate of contributions shall be determined by 1752
the actuary after each valuation. 1753
(6) The total amount payable in each year to the 1754
employer's accumulation account shall not be less than the sum of 1755
the percentage rate known as the "normal contribution rate" and 1756
the "accrued liability contribution rate" of the total 1757
compensation earnable by all members during the preceding year, 1758
provided that the payment by the employer shall be sufficient, 1759
when combined with the amounts in the account, to provide the 1760
allowances and other benefits chargeable to this account during 1761
the year then current. 1762
(7) The accrued liability contribution shall be 1763
discontinued as soon as the accumulated balance in the employer's 1764
accumulation account shall equal the present value, computed on 1765
the basis of the normal contribution rate then in force, or the 1766
prospective normal contributions to be received on account of all 1767
persons who are at that time members. 1768
(8) All allowances and benefits in lieu thereof, 1769
with the exception of those payable on account of members who 1770
receive no prior service credit, payable from contributions of the 1771
employer, shall be paid from the employer's accumulation account. 1772
(9) Upon the retirement of a member, an amount 1773
equal to his or her retirement allowance shall be transferred from 1774
the employer's accumulation account to the annuity reserve. 1775
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(10) The employer's accumulation account shall be 1776
credited with any assets authorized by law to be credited to the 1777
account. 1778
(d) Expense account. The expense account shall be the 1779
account to which the expenses of the administration of the system 1780
shall be charged, exclusive of amounts payable as retirement 1781
allowances and as other benefits provided herein. The Legislature 1782
shall make annual appropriations in amounts sufficient to 1783
administer the system, which shall be credited to this account. 1784
There shall be transferred to the State Treasury from this 1785
account, not less than once per month, an amount sufficient for 1786
payment of the estimated expenses of the system for the succeeding 1787
thirty (30) days. Any interest earned on the expense account 1788
shall accrue to the benefit of the system. However, 1789
notwithstanding the provisions of Sections 25-11-15(10) and 1790
25-11-105(f)(v)5, all expenses of the administration of the system 1791
shall be paid from the interest earnings, provided the interest 1792
earnings are in excess of the actuarial interest assumption as 1793
determined by the board, and provided the present cost of the 1794
administrative expense fee of two percent (2%) of the 1795
contributions reported by the political subdivisions and 1796
instrumentalities shall be reduced to one percent (1%) from and 1797
after July 1, 1983, through June 30, 1984, and shall be eliminated 1798
thereafter. 1799
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(e) Collection of contributions. The employer shall 1800
cause to be deducted on each and every payroll of a member for 1801
each and every payroll period, beginning subsequent to January 31, 1802
1953, the contributions payable by the member as provided in 1803
Articles 1 and 3. 1804
The employer shall make deductions from salaries of employees 1805
as provided in Articles 1 and 3 and shall transmit monthly, or at 1806
such time as the board of trustees designates, the amount 1807
specified to be deducted to the Executive Director of the Public 1808
Employees' Retirement System. The executive director, after 1809
making a record of all those receipts, shall deposit such amounts 1810
as provided by law. 1811
(f) (1) The sum of the normal contribution rate and 1812
the accrued liability contribution rate shall be known as the 1813
"employer's contribution rate." 1814
(2) The amount payable by the employer on account 1815
of normal and accrued liability contributions shall be determined 1816
by applying the employer's contribution rate to the amount of 1817
compensation earned by employees who are members of the system. 1818
Monthly, or at such time as the board of trustees designates, each 1819
department or agency shall compute the amount of the employer's 1820
contribution payable, with respect to the salaries of its 1821
employees who are members of the system, and shall cause that 1822
amount to be paid to the board of trustees from the personal 1823
service allotment of the amount appropriated for the operation of 1824
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the department or agency, or from funds otherwise available to the 1825
agency, for the payment of salaries to its employees. 1826
(3) Except as otherwise provided in Section 1827
25-11-106: 1828
(i) Constables shall pay employer and 1829
employee contributions on their net fee income as well as the 1830
employee contributions on all direct treasury or county payroll 1831
income. 1832
(ii) The county shall be responsible for the 1833
employer contribution on all direct treasury or county payroll 1834
income of constables. 1835
(4) Except as otherwise provided in Section 1836
25-11-106.1, chancery and circuit clerks shall be responsible for 1837
both the employer and employee share of contributions on the 1838
proportionate share of net income attributable to fees, as well as 1839
the employee share of net income attributable to direct treasury 1840
or county payroll income, and the employing county shall be 1841
responsible for the employer contributions on the net income 1842
attributable to direct treasury or county payroll income. 1843
(5) Once each year, under procedures established 1844
by the system, each employer shall submit to the Public Employees' 1845
Retirement System a copy of their report to Social Security of all 1846
employees' earnings. 1847
(6) The board shall provide by rules for the 1848
methods of collection of contributions of employers and members. 1849
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The amounts determined due by an agency to the various funds as 1850
specified in Articles 1 and 3 are made obligations of the agency 1851
to the board and shall be paid as provided herein. Failure to 1852
deduct those contributions shall not relieve the employee and 1853
employer from liability thereof. Delinquent employee 1854
contributions and any accrued interest shall be the obligation of 1855
the employee and delinquent employer contributions and any accrued 1856
interest shall be the obligation of the employer. The employer 1857
may, in its discretion, elect to pay any or all of the interest on 1858
delinquent employee contributions. From and after July 1, 1996, 1859
under rules and regulations established by the board, all 1860
employers are authorized and shall transfer all funds due to the 1861
Public Employees' Retirement System electronically and shall 1862
transmit any wage or other reports by computerized reporting 1863
systems. 1864
SECTION 9. Section 25-11-147, Mississippi Code of 1972, is 1865
amended as follows: 1866
25-11-147. (1) Each person becoming a member of the system 1867
on or after March 1, 2026, except for a first responder who became 1868
a member of the system on or after March 1, 2026, shall have, in 1869
addition to the defined benefit plan under this article, a defined 1870
contribution plan meeting the requirements of Section 401(a) of 1871
the Internal Revenue Code. A portion of the employee's 1872
contributions shall be deposited into the employee's defined 1873
contribution account, as provided in Section 25-11-123, and in 1874
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addition, the employer may elect to contribute an amount up to the 1875
maximum pretax amount allowable under federal law for plans under 1876
Section 401(a) of the Internal Revenue Code. Members shall be 1877
vested immediately in the defined contribution plan. 1878
(2) (a) Pursuant to Section 401(a) of the Internal Revenue 1879
Code, the board may establish a defined contribution, qualified 1880
plan under which a portion of the employee's mandatory 1881
contributions shall be deposited and which meets all requirements 1882
under federal and state law. To the extent state law conflicts 1883
with federal law, federal law shall govern the plan document to 1884
maintain the federal tax qualified status. The board, in its 1885
fiduciary capacity, may seek approval from the Internal Revenue 1886
Service. 1887
(b) The administration of the defined contribution plan 1888
shall be under the direction of the system. The defined 1889
contribution plan shall be operated in accordance with the 1890
guidelines established by the Internal Revenue Service for Section 1891
401(a) plans as reflected in the plan document, as may be modified 1892
from time to time by the board of trustees, and including optional 1893
variable employer contributions and a process for hardship 1894
withdrawals by members. Payroll reductions shall be made, in each 1895
instance, by the appropriate payroll officer. The administrator 1896
of the defined contribution plan may contract with a private 1897
corporation or institution for providing consolidated billing and 1898
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ST: PERS; include first responders hired after
March 1, 2026, in Tier 4 membership in the
system.
other administrative services if deemed necessary by the 1899
administrator. 1900
(c) The board of trustees may assess the employer an 1901
amount, out of the employer's contribution rate under Section 1902
25-11-123, up to two-tenths percent (0.2%) of the participant's 1903
total earned compensation as defined in Section 25-11-103 to 1904
provide for the administrative expenses of operating the defined 1905
contribution plan, including, but not limited to, the services of 1906
auditors, consultants, money managers and third-party 1907
administrators. 1908
(3) Each participating member shall direct the investment of 1909
the individual's accumulated employer and employee contributions 1910
and earnings to one or more investment choices within available 1911
categories of investment provided by the board. The board shall 1912
provide an investment menu of investment options. In establishing 1913
the investment options, the board shall: 1914
(a) Include predetermined investment portfolio options 1915
constructed to reflect different risk profiles that automatically 1916
reallocate and rebalance contributions as a participating member 1917
ages; and 1918
(b) Allow a participating member to construct an 1919
investment portfolio using some or all of the investment options. 1920
SECTION 10. This act shall take effect and be in force from 1921
and after March 1, 2026. 1922