PERS; law enforcement officers hired after 3-1-26 may receive retirement allowance after 20 years of service.

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

By: Representative Hall

HOUSE BILL NO. 1579

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