Mississippi Work and Save Program; create; revise certain PERS provisions.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Steverson

HOUSE BILL NO. 4073
(As Sent to Governor)

AN ACT TO CREATE THE MISSISSIPPI WORK AND SAVE PROGRAM, WHICH 1
IS A RETIREMENT SAVINGS PROGRAM SPONSORED BY THE STATE FOR CERTAIN 2
EMPLOYERS WHO DO NOT ALREADY OFFER A RETIREMENT PLAN THAT WILL 3
ALLOW THOSE EMPLOYERS TO OFFER ELIGIBLE EMPLOYEES THE VOLUNTARY 4
CHOICE TO CONTRIBUTE TO AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) 5
THROUGH A PAYROLL DEDUCTION; TO PROVIDE THE POWERS, AUTHORITY AND 6
DUTIES OF THE STATE TREASURER; TO PRESCRIBE THE REQUIREMENTS FOR 7
THE PROGRAM; TO PROVIDE THAT THE IRA TO WHICH CONTRIBUTIONS ARE 8
MADE WILL BE A ROTH IRA AND THE STANDARD PACKAGE WILL BE A ROTH 9
IRA WITH A TARGET DATE FUND INVESTMENT AND A SPECIFIED 10
CONTRIBUTION PERCENTAGE; TO PROVIDE CERTAIN PROTECTION FROM 11
LIABILITY FOR EMPLOYERS IN THE PROGRAM AND FOR THE STATE; TO 12
PROVIDE FOR THE CONFIDENTIALITY OF PARTICIPANT AND ACCOUNT 13
INFORMATION; TO CREATE THE MISSISSIPPI WORK AND SAVE 14
ADMINISTRATIVE FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO 15
PROVIDE THAT MONIES IN THE FUND SHALL BE EXPENDED UPON 16
APPROPRIATION OF THE LEGISLATURE, FOR THE PURPOSES AUTHORIZED IN 17
THE MISSISSIPPI WORK AND SAVE PROGRAM; TO AMEND SECTION 25-14-5, 18
MISSISSIPPI CODE OF 1972, TO ALLOW THE MISSISSIPPI DEFERRED 19
COMPENSATION PLAN AND TRUST TO OFFER ROTH ACCOUNTS AND OTHER 20
AFTER-TAX CONTRIBUTION VEHICLES; TO PROVIDE THAT A PARTICIPANT'S 21
ROTH OR OTHER ALLOWABLE AFTER-TAX CONTRIBUTION INTO A DEFERRED 22
COMPENSATION ACCOUNT SHALL BE TREATED BY THE EMPLOYER AS 23
INCLUDABLE IN THE PARTICIPANT'S INCOME AT THE TIME THE PARTICIPANT 24
WOULD HAVE RECEIVED THAT AMOUNT IN COMPENSATION IF THE PARTICIPANT 25
HAD NOT MADE A DEFERRED ELECTION; TO AUTHORIZE THE ISSUANCE OF 26
STATE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS FOR THE 27
MISSISSIPPI WORK AND SAVE ADMINISTRATIVE FUND; TO AMEND SECTION 28
25-14-15, MISSISSIPPI CODE OF 1972, TO CONFORM; TO AMEND SECTION 29
25-11-105, MISSISSIPPI CODE OF 1972, TO REQUIRE ANY TERMINATED 30
PLAN PREVIOUSLY APPROVED BY THE BOARD OF TRUSTEES OF THE PUBLIC 31
EMPLOYEES' RETIREMENT SYSTEM TO PAY TO THE BOARD ITS PORTION OF 32
THE NET PENSION LIABILITY AS OF JUNE 30, 2026, OR THE DATE OF 33
TERMINATION, WHICHEVER AMOUNT IS GREATER, IN A LUMP SUM BEFORE 34
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TERMINATION, AS PROVIDED BY BOARD REGULATIONS; TO AMEND SECTION 35
25-11-103, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF 36
"AVERAGE COMPENSATION" FOR MEMBERS OF THE PUBLIC EMPLOYEES' 37
RETIREMENT SYSTEM WHO BECAME MEMBERS ON OR AFTER MARCH 1, 2026; TO 38
AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 1972, TO REDUCE THE 39
CREDITABLE SERVICE REQUIREMENT FOR RETIREMENT REGARDLESS OF AGE 40
FROM 35 YEARS TO 30 YEARS FOR MEMBERS OF THE PUBLIC EMPLOYEES' 41
RETIREMENT SYSTEM WHO BECAME MEMBERS ON OR AFTER MARCH 1, 2026; TO 42
AMEND SECTION 25-11-127, MISSISSIPPI CODE OF 1972, TO CHANGE THE 43
REQUIRED SEPARATION PERIOD FOR RETIREES RETURNING TO WORK FROM 90 44
DAYS TO 30 DAYS; TO CREATE AN ALTERNATIVE RETURN-TO-WORK PROVISION 45
FOR RETIREES WHO ARE NOT SUBJECT TO AN ACTUARIAL REDUCTION IN 46
THEIR RETIREMENT ALLOWANCES, EXCEPT AS A RESULT OF TAKING A 47
PARTIAL LUMP-SUM DISTRIBUTION OR ANY OTHER OPTIONAL BENEFIT UNDER 48
SECTION 25-11-115; TO ALLOW A RETIREE TO RETURN TO WORK FOR A 49
PERIOD OF TIME AS AGREED TO BETWEEN THE EMPLOYEE AND THE EMPLOYER, 50
AT COMPENSATION IN AN AMOUNT NOT TO EXCEED 80% OF THE SALARY IN 51
EFFECT FOR THE POSITION AT THE TIME OF EMPLOYMENT; TO REQUIRE THE 52
EXECUTION OF A WRITTEN AGREEMENT AFTER THE CONCLUSION OF THE 53
SEPARATION PERIOD PROVIDING CERTAIN DETAILS OF THE EMPLOYMENT; TO 54
PROVIDE THAT THE EMPLOYER SHALL PAY TO THE BOARD OF TRUSTEES OF 55
THE SYSTEM THE FULL AMOUNT OF BOTH THE EMPLOYER'S AND THE 56
EMPLOYEE'S CONTRIBUTIONS ON THE AMOUNT OF COMPENSATION RECEIVED BY 57
THE RETIREE RETURNING TO WORK; TO SPECIFY THAT THE EMPLOYEE SHALL 58
NOT GAIN ANY ADDITIONAL RIGHTS OR BENEFITS TOWARD RETIREMENT FROM 59
RETURNING TO WORK UNDER THIS ALTERNATIVE RETURN-TO-WORK PROVISION; 60
TO SPECIFY THAT EMPLOYER CONTRIBUTIONS FOR EMPLOYEES RETURNING TO 61
WORK ARE DESIGNED TO OFFSET ANY PENSION LIABILITY CREATED BY THIS 62
PROVISION; TO PROHIBIT RETIREES FROM RETURNING TO WORK AS ELECTED 63
OFFICIALS, K-12 SCHOOL SUPERINTENDENTS, OR ADMINISTRATORS AT 64
UNIVERSITIES OR COMMUNITY OR JUNIOR COLLEGES UNDER THIS PROVISION; 65
TO PROVIDE FOR THE REPEAL OF THIS PROVISION ON JULY 1, 2036; TO 66
AMEND SECTION 25-11-126, MISSISSIPPI CODE OF 1972, TO CONFORM TO 67
THE REDUCTION IN THE REQUIRED SEPARATION PERIOD; AND FOR RELATED 68
PURPOSES. 69
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 70
SECTION 1. Title. Sections 1 through 13 of this act shall 71
be known and may be cited as the Mississippi Work and Save 72
Program. 73
SECTION 2. Definitions. For purposes of Sections 1 through 74
13 of this act, the following terms shall be defined as provided 75
in this section: 76
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(a) "Covered employee" means an individual who is 77
employed by a covered employer, who has wages or other 78
compensation that is allocable to the state, and who is at least 79
eighteen (18) years of age, and who voluntarily participates in 80
the program. The term "covered employee" does not include: 81
(i) Any employee covered under the federal Railway 82
Labor Act (45 USC Section 151). 83
(ii) Any employee on whose behalf an employer 84
makes contributions to a Taft-Hartley multiemployer pension trust 85
fund. 86
(iii) Any individual who is an employee of the 87
federal government, the state or any other state, any county or 88
municipality, or any of the state's, any other state's, or the 89
federal government's units or instrumentalities. 90
(b) "Covered employer" means a person or entity engaged 91
in a business, industry, profession, trade, or other enterprise in 92
the state, whether for profit or not for profit, excluding the 93
federal government, the state, any county, any municipal 94
corporation, or any of the state's or the federal government's 95
units or instrumentalities, and that voluntarily participates in 96
the program. The term "covered employer" does not include an 97
employer that maintains a specified tax-favored retirement plan 98
for its employees or has done so effective in form and operation 99
at any time within the current or two (2) preceding calendar 100
years. If an employer does not maintain a specified tax-favored 101
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retirement plan for a portion of a calendar year ending on or 102
after July 1, 2026, and adopts such a plan effective for the 103
remainder of that calendar year, the employer is exempt from 104
"covered employer" status for that remainder of the year. 105
(c) "ERISA" means the Employee Retirement Income 106
Security Act of 1974, as amended (29 USC Section 1001 et seq.). 107
(d) "Internal Revenue Code" means the Internal Revenue 108
Code of 1986, as amended (Title 26 of the United States Code). 109
(e) "IRA" means a traditional or Roth individual 110
retirement account or individual retirement annuity under Section 111
408(a), 408(b), or 408A of the Internal Revenue Code. 112
(f) "Mississippi Work and Save Administrative Fund," 113
"administrative fund" or "fund" is the fund established in Section 114
10 of this act that is established for the sole purpose of paying 115
the administrative costs and expenses of the program. 116
(g) "Mississippi Work and Save Program" or "program" 117
means the retirement savings program established by Sections 1 118
through 13 of this act. 119
(h) "Participant" means an individual who is 120
contributing to an IRA under the program or has an IRA account 121
balance under the program. 122
(i) "Participating employer" means a covered employer 123
that provides for covered employees a payroll deduction IRA 124
provided for by Sections 1 through 13 of this act. 125
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(j) "Payroll deduction IRA arrangement" or "payroll 126
deduction IRA" means an arrangement by which an employer allows 127
employees to contribute to an IRA by means of payroll deduction. 128
(k) "Roth IRA" means a Roth individual retirement 129
account or individual retirement annuity under Section 408A of the 130
Internal Revenue Code. 131
(l) "Specified tax-favored retirement plan" means a 132
retirement plan that is tax-qualified under or is described in and 133
satisfies the requirements of Section 401(a), 401(k), 403(a), 134
403(b), 408(k)(Simplified Employee Pension), or 408(p)(SIMPLE-IRA) 135
of the Internal Revenue Code. 136
(m) "Total fees and expenses" means all fees, costs, 137
and expenses, including, but not limited to, administrative 138
expenses, investment expenses, investment advice expenses, 139
accounting costs, actuarial costs, legal costs, marketing 140
expenses, education expenses, trading costs, insurance 141
annuitization costs, and other miscellaneous costs. 142
(n) "Traditional IRA" means a traditional individual 143
retirement account or traditional individual retirement annuity 144
under Section 408(a) or (b) of the Internal Revenue Code. 145
(o) "Trust" means the trust in which the assets of the 146
program are held. Where applicable, except as may be otherwise 147
specified, references throughout Sections 1 through 13 of this act 148
to the program generally are intended to refer also to the trust 149
(including the assets, facilities, costs and expenses, receipts, 150
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expenditures, activities, operations, administration, or 151
management). 152
SECTION 3. Powers, authority, and duties of the State 153
Treasurer. (1) The State Treasurer shall design, develop, and 154
implement the program, and, to that end, may conduct market, 155
legal, and feasibility analyses. 156
(2) The State Treasurer shall have the powers, authority, 157
and duties to: 158
(a) Establish, implement, and maintain the program; 159
(b) Cause the program, trust, and arrangements and 160
accounts established under the program to be designed, 161
established, and operated: 162
(i) In accordance with best practices for 163
retirement saving vehicles; 164
(ii) To encourage participation, saving, sound 165
investment practices, and appropriate selection of investment 166
options, including any default investments; 167
(iii) To maximize simplicity and ease of 168
administration for covered employers; 169
(iv) To minimize costs, including by collective 170
investment and other measures to achieve economies of scale and 171
other efficiencies in program design and administration; 172
(v) To promote portability of benefits; and 173
(vi) To avoid preemption of the program by federal 174
law; 175
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(c) Arrange for collective, common, and pooled 176
investment of assets of the program and trust, including 177
investments in conjunction with other funds with which these 178
assets are permitted by law to be collectively invested, with a 179
view to achieving economies of scale and other efficiencies 180
designed to minimize costs for the program and its participants; 181
(d) Develop and disseminate educational information 182
designed to educate participants and citizens about the benefits 183
of planning and saving for retirement and information to help them 184
decide the level of participation and savings strategies that may 185
be appropriate for them, including information in furtherance of 186
financial capability and financial literacy; 187
(e) If necessary, determine the eligibility of an 188
employer, employee, or other individual to participate in the 189
program; 190
(f) Adopt rules and regulations it deems necessary or 191
advisable for the implementation of Sections 1 through 13 of this 192
act and the administration and operation of the program consistent 193
with the Internal Revenue Code and regulations thereunder, 194
including to ensure that the program and arrangements established 195
under the program satisfy all criteria for favorable federal tax 196
treatment and complies, to the extent necessary, with any other 197
applicable federal or state law; 198
(g) Arrange for and facilitate compliance by the 199
program or arrangements established under the program with all 200
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applicable requirements for the program under the Internal Revenue 201
Code, including requirements for favorable tax treatment of the 202
IRAs, and under any other applicable federal or state law and 203
accounting requirements, including using its best efforts to 204
implement procedures minimizing the risk that covered employees 205
will contribute more to an IRA than the amount they are eligible 206
for under the Internal Revenue Code to contribute to the IRA on a 207
tax-favored basis, and otherwise providing or arranging for 208
assistance to covered employers and covered employees in complying 209
with applicable law and tax-related requirements in a 210
cost-effective manner. The State Treasurer may establish any 211
processes that he reasonably deems to be necessary or advisable to 212
verify whether an employer is a covered employer (including 213
reference to online data and possible use of questions in employer 214
state tax filings); 215
(h) Employ or retain a program administrator, executive 216
director, staff, trustee, recordkeeper, investment managers, 217
investment advisors, other administrative, professional, expert 218
advisors and service providers, and determine their duties and 219
compensation. The State Treasurer may authorize the executive 220
director and other officials to oversee requests for proposals or 221
other public competitions and enter into contracts. The State 222
Treasurer may authorize the executive director to enter into 223
contracts, as described in paragraph (n) of this subsection (2), 224
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on behalf of the State Treasurer or conduct any business necessary 225
for the efficient operation of the program; 226
(i) Establish procedures for the timely and fair 227
resolution of participant and other disputes related to accounts 228
or program operation; 229
(j) Develop and implement an investment policy that 230
defines the program's investment objectives, consistent with the 231
objectives of the program, and that provides for policies and 232
procedures consistent with those investment objectives. The State 233
Treasurer shall designate appropriate default investments that 234
include a mix of asset classes, such as target date and balanced 235
funds. The State Treasurer shall seek to minimize participant 236
fees and expenses of investment and administration. The State 237
Treasurer shall strive to design and implement investment options 238
available to holders of accounts established as part of the 239
program and other program features that are intended to achieve 240
maximum possible income replacement balanced with an appropriate 241
level of risk in an IRA-based environment consistent with the 242
investment objectives under the policy. The investment options 243
may encompass a range of risk and return opportunities and allow 244
for a rate of return commensurate with an appropriate level of 245
risk in view of the investment objectives under the policy. The 246
menu of investment options shall be determined taking into account 247
the nature and objectives of the program, the desirability (based 248
on behavioral research findings) of limiting investment choices 249
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under the program to a reasonable number, and the extensive 250
investment choices available to participants if they roll over to 251
an IRA outside the program. In accordance with paragraph (h) of 252
this subsection (2), the State Treasurer, to the extent he deems 253
it necessary or advisable, in his discretion, in carrying out his 254
responsibilities and exercising his powers under Sections 1 255
through 13 of this act, shall employ or retain appropriate 256
entities or personnel to assist or advise him or to whom to 257
delegate the carrying out of such responsibilities and exercise of 258
such powers; 259
(k) Discharge his duties as a fiduciary with respect to 260
the program solely in the interest of the participants as follows: 261
(i) For the exclusive purpose of providing 262
benefits to participants and defraying reasonable expenses of 263
administering the program; and 264
(ii) With the care, skill, prudence, and diligence 265
under the circumstances then prevailing that a prudent person 266
acting in a like capacity and familiar with those matters would 267
use in the conduct of an enterprise of a like character and with 268
like aims; 269
(l) Cause expenses incurred to initiate, implement, 270
maintain, and administer the program to be paid from contributions 271
to, or investment returns or assets of, the program or other money 272
collected by or for the program or pursuant to arrangements 273
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established under the program to the extent permitted under 274
federal and state law; 275
(m) Collect application, account, or administrative 276
fees and to accept any grants, gifts, legislative appropriation, 277
loans, and other monies from the state, any unit of federal, 278
state, or local government, or any other person, firm, or entity 279
to defray the costs of administering and operating the program; 280
(n) Make and enter into competitively procured 281
contracts, agreements, memoranda of understanding, arrangements, 282
partnerships, or other arrangements, to collaborate and cooperate 283
with, and to retain, employ, and contract with or for any of the 284
following to the extent necessary or desirable, for the effective 285
and efficient design, implementation, and administration of the 286
program consistent with the purposes set forth in Sections 1 287
through 13 of this act and to maximize outreach to covered 288
employers and covered employees: 289
(i) Services of private and public financial 290
institutions, depositories, consultants, actuaries, counsel, 291
auditors, investment advisors, investment administrators, 292
investment management firms, other investment firms, third-party 293
administrators, other professionals and service providers, and 294
state public retirement systems; 295
(ii) Research, technical, financial, 296
administrative, and other services; and 297
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(iii) Services of other state agencies to assist 298
the State Treasurer in the exercise of his powers and duties; 299
(o) Make and enter into contracts, agreements, 300
memoranda of understanding, arrangements, partnerships, or other 301
arrangements to collaborate, cooperate, coordinate, contract, or 302
combine resources, investments, or administrative functions with 303
other governmental entities, including states or their agencies or 304
instrumentalities that maintain or are establishing retirement 305
savings programs compatible with the program, including 306
collective, common, or pooled investments with other funds of 307
other states' programs with which the assets of the program and 308
trust are permitted by law to be collectively invested, to the 309
extent necessary or desirable for the effective and efficient 310
design, administration, and implementation of the program 311
consistent with the purposes set forth in Sections 1 through 13 of 312
this act, including the purpose of achieving economies of scale 313
and other efficiencies designed to minimize costs for the program 314
and its participants and the provisions of Section 4(j) and (l) of 315
this act; 316
(p) Develop and implement an outreach plan to gain 317
input and disseminate information regarding the program and 318
retirement savings in general, including timely information to 319
covered employers regarding the program and how it applies to 320
them, with special emphasis on their ability at any time to 321
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sponsor a specified tax-favored retirement plan that would exempt 322
them from any responsibilities under the program; 323
(q) Cause monies to be held and invested and reinvested 324
under the program; 325
(r) Ensure that all contributions to IRAs under the 326
program may be used only to: 327
(i) Pay benefits to participants under the 328
program; 329
(ii) Pay the cost of administering the program; 330
and 331
(iii) Make investments for the benefit of the 332
program, and that no assets of the program or trust are 333
transferred to the State General Fund or to any other fund of the 334
state or are otherwise encumbered or used for any purpose other 335
than those specified in this subsection (2); 336
(s) Make provision for the payment of costs of 337
administration and operation of the program and trust; 338
(t) Consider whether or not procedures should be 339
promulgated to allow employers that are not covered employers 340
because they are exempt from covered employer status to 341
voluntarily participate in the program by enrolling their 342
employees in payroll deduction IRAs, taking into account, among 343
other considerations, the potential legal consequences and the 344
degree of employer demand to participate or facilitate 345
participation by employees; 346
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(u) Evaluate the need for, and procure if and as 347
needed, insurance against any and all loss in connection with the 348
property, assets, or activities of the program, and evaluate the 349
need for, and procure if and as deemed necessary, pooled private 350
insurance; 351
(v) Indemnify, including procurement of insurance if 352
and as needed for this purpose, the State Treasurer from personal 353
loss or liability resulting from his action or inaction; 354
(w) Collaborate with, and evaluate the role of, 355
financial advisors or other financial professionals, including in 356
assisting and providing guidance for covered employees; and 357
(x) Carry out its powers and duties under the program 358
pursuant to Sections 1 through 13 of this act and exercise any and 359
all other powers as are appropriate for the effectuation of the 360
purposes, objectives, and provisions of Sections 1 through 13 of 361
this act pertaining to the program. 362
(3) The State Treasurer and his staff shall not: 363
(a) Directly or indirectly have any interest in the 364
making of any investment under the program or in gains or profits 365
accruing from any such investment; 366
(b) Borrow any program-related funds or deposits, or 367
use any such funds or deposits in any manner, for himself or 368
herself or as an agent or partner of others; or 369
(c) Become an endorser, surety, or obligor on 370
investments made under the program. 371
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SECTION 4. Requirements for the Mississippi Work and Save 372
Program. The program developed and established under Sections 1 373
through 13 of this act must: 374
(a) Allow eligible individuals in the state to 375
voluntarily choose whether or not to contribute to an IRA under 376
the program, including allowing covered employees in the state the 377
choice to contribute to an IRA through payroll deduction under the 378
program; 379
(b) Allow each covered employer to voluntarily offer 380
its employees the voluntary choice whether or not to contribute to 381
a payroll deduction IRA by permitting automatic enrollment where 382
employees may opt out of participation; 383
(c) Provide that the IRA to which contributions are 384
made will be a Roth IRA, except that the State Treasurer shall 385
have the authority at any time, to add an option for all 386
participants to affirmatively elect to contribute to a traditional 387
IRA as an alternative to the Roth IRA; 388
(d) Provide that the standard package shall be a Roth 389
IRA with a target date fund investment, and that the covered 390
employee can choose to stop participation altogether, can use a 391
traditional IRA and a different investment from among the options 392
available, and can contribute at a higher or lower contribution 393
rate, subject to the IRA contribution dollar limits applicable 394
under the Internal Revenue Code; 395
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(e) Provide on a uniform basis, if and when the State 396
Treasurer so determines, in its discretion, for annual increases 397
of each participant's contribution rate, by not more than one 398
percent (1%) of salary or wages per year up to a maximum of eight 399
percent (8%). Any such increases shall apply to participants, as 400
determined by the State Treasurer, by default or only if initiated 401
by affirmative participant election (including as part of the 402
standard package), in either case subject to the IRA contribution 403
limits applicable under the Internal Revenue Code; 404
(f) Provide for direct deposit of contributions into 405
investments under the program; 406
(g) Be professionally managed; 407
(h) Permit no employer contributions by covered 408
employers; 409
(i) Provide for reports on the status of each 410
participant's account to be provided to each participant at least 411
annually; 412
(j) When possible and practicable, use existing or new 413
employer, other private-sector, and public infrastructure and 414
common, collective, or pooled investment arrangements to the 415
extent desirable to facilitate and enhance the effectiveness and 416
efficiency of program outreach, enrollment, contributions, 417
recordkeeping, investment, distributions, compliance, and other 418
aspects of program design, administration and implementation 419
consistent with the purposes set forth in Sections 1 through 13 of 420
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this act, including the purpose of achieving economies of scale 421
and other efficiencies designed to minimize costs for the program 422
and its participants and the provisions of paragraph (l) of this 423
section; 424
(k) Provide that each account holder owns the 425
contributions to or earnings on amounts contributed to his or her 426
account under the program and that the state and employers have no 427
proprietary interest in those contributions or earnings; 428
(l) Be designed and implemented in a manner consistent 429
with federal law, including favorable federal tax treatment, to 430
the extent that it applies and is consistent with the program not 431
being preempted by ERISA; 432
(m) Make provision for the participation in the program 433
of individuals who are not employees; 434
(n) Keep total fees and expenses as low as practicable 435
and in any event each year not in excess of seventy-five 436
hundredths of one percent (0.75%) of the total assets of the 437
program, except that this limit shall not apply during a start-up 438
period of three (3) years beginning with the initial 439
implementation of the program; 440
(o) Establish rules and procedures governing the 441
distribution of funds from the program, including such 442
distributions as may be permitted or required by the program and 443
any applicable provisions of tax laws, with the objectives of 444
maximizing financial security in retirement, helping to protect 445
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spousal rights, and assisting participants with the challenges of 446
decumulation of savings. The State Treasurer shall have the 447
authority, in his discretion, to provide for one or more 448
reasonably priced distribution options to provide a source of 449
fixed regular retirement income, including income for life or for 450
the participant's life expectancy (or for joint lives and life 451
expectancies, as applicable); and 452
(p) Establish rules and procedures promoting 453
portability of benefits, including the ability to make tax-free 454
rollovers or transfers from IRAs under the program to other IRAs 455
or to tax-qualified plans that accept such rollovers or transfers 456
provided any rollover is initiated by participants and not 457
solicited by agents or brokers. 458
SECTION 5. Rules for the Mississippi Work and Save Program. 459
The State Treasurer shall adopt rules to implement the program 460
that: 461
(a) Establish the processes for enrollment and 462
contributions to payroll deduction IRAs under the program, 463
including elections by covered employees, withholding by covered 464
employers of employee payroll deduction contributions from wages 465
and remittance for deposit to IRAs, and voluntary enrollment and 466
contributions by others, including self-employed individuals and 467
independent contractors, through payroll deduction or otherwise; 468
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(b) Establish the processes for withdrawals, rollovers, 469
and direct transfers from IRAs under the program in the interest 470
of facilitating portability and maximization of benefits; 471
(c) Establish processes for phasing in enrollment of 472
eligible individuals; 473
(d) Conduct outreach to individuals, employers, other 474
stakeholders, and the public regarding the program. Specify the 475
contents, frequency, timing, and means of required disclosures 476
from the program to covered employees, participants, other 477
individuals eligible to participate in the program, covered 478
employers, and other interested parties. These disclosures shall 479
include, but need not be limited to: 480
(i) The benefits associated with tax-favored 481
retirement saving; 482
(ii) The potential advantages and disadvantages 483
associated with contributing to Roth IRAs and, if applicable, 484
traditional IRAs under the program; 485
(iii) The eligibility rules for Roth IRAs and, if 486
applicable, traditional IRAs; 487
(iv) That the individual (and not the employer, 488
the state, any state official, or the program) will be solely 489
responsible for determining whether, and, if so, how much, the 490
individual is eligible to contribute on a tax-favored basis to an 491
IRA; 492
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(v) The penalty for excess contributions to IRAs 493
and the method of correcting excess contributions; 494
(vi) Instructions for enrolling, making elections 495
to contribute or to decline to contribute, and making elections 496
regarding contribution rates, type of IRA, and investments; 497
(vii) Instructions for implementing and for 498
changing the elections; 499
(viii) The potential availability of a saver's tax 500
credit, including the eligibility conditions for the credit and 501
instructions on how to claim it; 502
(ix) That employees seeking tax, investment, or 503
other financial advice should contact appropriate professional 504
advisors, and that covered employers are not in a position to 505
provide such advice and are not liable for decisions individuals 506
make in relation to the program; 507
(x) That the payroll deduction IRAs are intended 508
not to be employer-sponsored retirement plans and that the program 509
is not an employer-sponsored retirement plan; 510
(xi) The potential implications of account 511
balances under the program for the application of asset limits 512
under certain public assistance programs; 513
(xii) That the account owner is solely responsible 514
for investment performance, including market gains and losses, and 515
that IRA accounts and rates of return are not guaranteed by any 516
employer, the state, any state official, or the program; 517
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(xiii) Additional information about retirement and 518
saving and other information designed to promote financial 519
literacy and capability (which may take the form of links to, or 520
explanations of how to obtain, such information); and 521
(xiv) How to obtain additional information about 522
the program. 523
SECTION 6. Protection from liability for employers. (1) A 524
covered employer or other employer is not and shall not be liable 525
for or bear responsibility for: 526
(a) An employee's decision to participate in or not to 527
participate in the program or a participant's specific elections 528
under the program; 529
(b) Participants' or the State Treasurer's investment 530
decisions; 531
(c) The administration, investment, investment returns, 532
or investment performance of the program, including, without 533
limitation, any interest rate or other rate of return on any 534
contribution or account balance, provided they play no role; 535
(d) The program design or the benefits paid to 536
participants; 537
(e) Individuals' awareness of or compliance with the 538
conditions and other provisions of the tax laws that determine 539
which individuals are eligible to make tax-favored contributions 540
to IRAs, in what amount, and in what time frame and manner; or 541
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(f) Any loss, failure to realize any gain, or any other 542
adverse consequences, including, without limitation, any adverse 543
tax consequences or loss of favorable tax treatment, public 544
assistance, or other benefits, incurred by any person as a result 545
of participating in the program. 546
(2) No covered employer or other employer shall be, or shall 547
be considered to be, a fiduciary in relation to the program or 548
trust or any other arrangement under the program. 549
SECTION 7. Protection from liability for the state. (1) 550
The state, any state official, commission or agency, any member, 551
officer or employee thereof, and the program: 552
(a) Have no responsibility for compliance by 553
individuals with the conditions and other provisions of the 554
Internal Revenue Code that determine which individuals are 555
eligible to make tax-favored contributions to IRAs, in what 556
amount, and in what time frame and manner; 557
(b) Have no duty, responsibility, or liability to any 558
party for the payment of any benefits under the program, 559
regardless of whether sufficient funds are available under the 560
program to pay such benefits; 561
(c) Do not and shall not guarantee any interest rate or 562
other rate of return on or investment performance of any 563
contribution or account balance; and 564
(d) Are not and shall not be liable or responsible for 565
any loss, deficiency, failure to realize any gain, or any other 566
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adverse consequences, including, without limitation, any adverse 567
tax consequences or loss of favorable tax treatment, public 568
assistance or other benefits, incurred by any person as a result 569
of participating in the program. 570
(2) The debts, contracts, and obligations of the program are 571
not the debts, contracts, and obligations of the state, and 572
neither the faith and credit nor the taxing power of the state is 573
pledged directly or indirectly to the payment of the debts, 574
contracts, and obligations of the program. 575
SECTION 8. Confidentiality of participant and account 576
information. Individual account information relating to accounts 577
under the program and relating to individual participants 578
(including, but not limited to, names, addresses, telephone 579
numbers, email addresses, personal identification information, 580
investments, contributions, and earnings) is confidential and must 581
be maintained as confidential: 582
(a) Except to the extent necessary to administer the 583
program in a manner consistent with Sections 1 through 13 of this 584
act, the tax laws of this state, and the Internal Revenue Code; or 585
(b) Unless the individual who provides the information 586
or is the subject of the information expressly agrees in writing 587
to the disclosure of the information. 588
SECTION 9. Intergovernmental collaboration and cooperation. 589
The State Treasurer may enter into an intergovernmental agreement 590
or memorandum of understanding with the state and any agency of 591
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the state to receive outreach, technical assistance, enforcement 592
and compliance services, collection or dissemination of 593
information pertinent to the program (subject to such obligations 594
of confidentiality as may be agreed or required by law), or other 595
services or assistance. The state and any agencies of the state 596
that enter into such agreements or memoranda of understanding 597
shall collaborate to provide the outreach, assistance, 598
information, and compliance or other services or assistance to the 599
State Treasurer. The memoranda of understanding may cover the 600
sharing of costs incurred in gathering and disseminating 601
information and the reimbursement of costs for any enforcement 602
activities or assistance. 603
SECTION 10. Funding of program. (1) The Mississippi Work 604
and Save Administrative Fund is created as a special fund in the 605
State Treasury. Monies in the fund shall be expended by the State 606
Treasurer, upon appropriation of the Legislature, for the purposes 607
authorized in Sections 1 through 13 of this act. The fund shall 608
consist of: 609
(a) Monies appropriated to or transferred into the fund 610
by the Legislature, or otherwise made available by the Legislature 611
in any manner; 612
(b) Monies transferred to the fund from the federal 613
government, other state agencies, or local governments; 614
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(c) Monies from the payment of application, account, 615
administrative, or other fees and the payment of other monies due 616
the State Treasurer; 617
(d) Any gifts, donations, or grants made to the state 618
for deposit in the fund; 619
(e) Monies collected for the fund from contributions 620
to, or investment returns or assets of, the program or other 621
monies collected by or for the program or pursuant to arrangements 622
established under the program to the extent permitted under 623
federal and state law; and 624
(f) Earnings on monies in the fund. 625
(2) The State Treasurer shall accept any grants, gifts, 626
appropriations, or other monies from the state, any unit of 627
federal, state, or local government, or any other person, firm, 628
partnership, corporation, or other entity solely for deposit into 629
the fund, whether for investment or administrative expenses. 630
(3) Unexpended amounts remaining in the fund at the end of a 631
fiscal year shall not lapse into the State General Fund, and any 632
interest earned or investment earnings on amounts in the fund 633
shall be deposited into such fund. 634
(4) To enable or facilitate the start-up and continuing 635
operation, maintenance, administration, and management of the 636
program until the program accumulates sufficient balances and can 637
generate sufficient funding through fees assessed on program 638
accounts for the program to become financially self-sustaining: 639
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(a) The State Treasurer may borrow from the state, any 640
unit of federal, state, or local government, or any other person, 641
firm, partnership, corporation, or other entity working capital 642
funds and other funds as may be necessary for this purpose, 643
provided that such funds are borrowed in the name of the program 644
only and that any such borrowings shall be payable solely from the 645
revenues of the program; and 646
(b) The State Treasurer may enter into long-term 647
procurement contracts with one or more financial providers that 648
provide a fee structure that would assist the program in avoiding 649
or minimizing the need to borrow or to rely upon general assets of 650
the state. 651
(5) The state may pay administrative costs associated with 652
the creation, maintenance, operation, and management of the 653
program and trust until sufficient assets are available in the 654
fund for that purpose. Thereafter, all administrative costs of 655
the fund, including any repayment of start-up funds provided by 656
the state, shall be repaid only out of monies on deposit in the 657
fund. However, private funds or federal funding received in order 658
to implement the program until the fund is self-sustaining shall 659
not be repaid unless those funds were offered contingent upon the 660
promise of such repayment. 661
(6) The State Treasurer may use the monies in the fund 662
solely to pay the administrative costs and expenses of the program 663
and the administrative costs and expenses the State Treasurer 664
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incurs in the performance of his duties under Sections 1 through 665
13 of this act. 666
SECTION 11. Audits and annual reports. (1) The State 667
Treasurer shall cause an accurate account of all of the program's, 668
trust's, and State Treasurer's activities, operations, receipts, 669
and expenditures to be maintained. Each year, a full audit of the 670
books and accounts of the State Treasurer pertaining to those 671
activities, operations, receipts and expenditures, personnel, 672
services, or facilities shall be conducted by a certified public 673
accountant and shall include, but not be limited to, direct and 674
indirect costs attributable to the use of outside consultants, 675
independent contractors, and any other persons who are not state 676
employees for the administration of the program. For the purposes 677
of the audit, the auditors shall have access to the properties and 678
records of the program and may prescribe methods of accounting and 679
the rendering of periodic reports in relation to projects 680
undertaken by the program. 681
(2) By August 1 of each year, the State Treasurer shall 682
submit to the Governor, the State Treasurer, and the appropriate 683
committees of the Senate and House an audited financial report, 684
prepared in accordance with generally accepted accounting 685
principles, detailing the activities, operations, receipts, and 686
expenditures of the program during the preceding calendar year. 687
The report shall also include projected activities of the program 688
for the current calendar year. 689
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(3) The State Treasurer shall prepare an annual report on 690
the operation of the program to be available to all citizens and 691
provided to appropriate state officials. 692
SECTION 12. Applicability dates. (1) The State Treasurer 693
shall establish the program so that individuals can begin 694
contributing under the program not later than August 1, 2028. 695
(2) The State Treasurer may, in his discretion, phase in the 696
program so that the ability to contribute first applies on 697
different dates for different classes of individuals, including 698
employees of employers of different sizes or types and individuals 699
who are not employees (self-employed, independent contractors, 700
etc.). However, any such staged or phased-in implementation 701
schedule must be substantially completed not later than July 1, 702
2028. 703
(3) The State Treasurer shall not implement the program if 704
and to the extent that it determines that the program is preempted 705
by ERISA. Accordingly, if and as needed, the State Treasurer 706
shall implement the program in a severable fashion to the extent 707
practicable if and to the extent that the State Treasurer 708
determines: 709
(a) That a portion or aspect of the program is 710
preempted by ERISA, the State Treasurer shall not implement that 711
portion or aspect of the program but shall proceed to implement 712
the remainder of the program to the extent practicable; or 713
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(b) That some but not all of the payroll deduction IRA 714
arrangements or other arrangements under the program are or would 715
be employee benefit plans under ERISA, the State Treasurer shall 716
proceed to implement the program with respect to the other 717
arrangements under the program to the extent practicable. 718
SECTION 13. Bonds. (1) As used in this section, the 719
following words shall have the meanings ascribed herein unless the 720
context clearly requires otherwise: 721
(a) "Accreted value" of any bond means, as of any date 722
of computation, an amount equal to the sum of (i) the stated 723
initial value of such bond, plus (ii) the interest accrued thereon 724
from the issue date to the date of computation at the rate, 725
compounded semiannually, that is necessary to produce the 726
approximate yield to maturity shown for bonds of the same 727
maturity. 728
(b) "State" means the State of Mississippi. 729
(c) "Commission" means the State Bond Commission. 730
(2) (a) The commission, at one time, or from time to time, 731
may declare by resolution the necessity for issuance of general 732
obligation bonds of the State of Mississippi to provide funds for 733
the Mississippi Work and Save Administrative Fund created in 734
Section 10 of this act. Upon the adoption of a resolution by the 735
Department of Finance and Administration declaring the necessity 736
for the issuance of any part or all of the general obligation 737
bonds authorized by this subsection, the department shall deliver 738
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a certified copy of its resolution or resolutions to the 739
commission. Upon receipt of such resolution, the commission, in 740
its discretion, may act as the issuing agent, prescribe the form 741
of the bonds, determine the appropriate method for sale of the 742
bonds, advertise for and accept bids or negotiate the sale of the 743
bonds, issue and sell the bonds so authorized to be sold, and do 744
any and all other things necessary and advisable in connection 745
with the issuance and sale of such bonds. The total amount of 746
bonds issued under this section shall not exceed Two Hundred 747
Thousand Dollars ($200,000.00). No bonds authorized under this 748
section shall be issued after July 1, 2030. 749
(b) The proceeds of bonds issued pursuant to this 750
section shall be deposited into the Mississippi Work and Save 751
Administrative Fund created pursuant to Section 10 of this act. 752
Any investment earnings on bonds issued pursuant to this section 753
shall be used to pay debt service on bonds issued under this 754
section, in accordance with the proceedings authorizing issuance 755
of such bonds. 756
(3) The principal of and interest on the bonds authorized 757
under this section shall be payable in the manner provided in this 758
subsection. Such bonds shall bear such date or dates, be in such 759
denomination or denominations, bear interest at such rate or rates 760
(not to exceed the limits set forth in Section 75-17-101, 761
Mississippi Code of 1972), be payable at such place or places 762
within or without the State of Mississippi, shall mature 763
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absolutely at such time or times not to exceed twenty-five (25) 764
years from date of issue, be redeemable before maturity at such 765
time or times and upon such terms, with or without premium, shall 766
bear such registration privileges, and shall be substantially in 767
such form, all as shall be determined by resolution of the 768
commission. 769
(4) The bonds authorized by this section shall be signed by 770
the chairman of the commission, or by his facsimile signature, and 771
the official seal of the commission shall be affixed thereto, 772
attested by the secretary of the commission. The interest 773
coupons, if any, to be attached to such bonds may be executed by 774
the facsimile signatures of such officers. Whenever any such 775
bonds shall have been signed by the officials designated to sign 776
the bonds who were in office at the time of such signing but who 777
may have ceased to be such officers before the sale and delivery 778
of such bonds, or who may not have been in office on the date such 779
bonds may bear, the signatures of such officers upon such bonds 780
and coupons shall nevertheless be valid and sufficient for all 781
purposes and have the same effect as if the person so officially 782
signing such bonds had remained in office until their delivery to 783
the purchaser, or had been in office on the date such bonds may 784
bear. However, notwithstanding anything herein to the contrary, 785
such bonds may be issued as provided in the Registered Bond Act of 786
the State of Mississippi. 787
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(5) All bonds and interest coupons issued under the 788
provisions of this section have all the qualities and incidents of 789
negotiable instruments under the provisions of the Uniform 790
Commercial Code, and in exercising the powers granted by this 791
section, the commission shall not be required to and need not 792
comply with the provisions of the Uniform Commercial Code. 793
(6) The commission shall act as the issuing agent for the 794
bonds authorized under this section, prescribe the form of the 795
bonds, determine the appropriate method for sale of the bonds, 796
advertise for and accept bids or negotiate the sale of the bonds, 797
issue and sell the bonds so authorized to be sold, pay all fees 798
and costs incurred in such issuance and sale, and do any and all 799
other things necessary and advisable in connection with the 800
issuance and sale of such bonds. The commission is authorized and 801
empowered to pay the costs that are incident to the sale, issuance 802
and delivery of the bonds authorized under this section from the 803
proceeds derived from the sale of such bonds. The commission 804
shall sell such bonds on sealed bids at public sale or may 805
negotiate the sale of the bonds for such price as it may determine 806
to be for the best interest of the State of Mississippi. All 807
interest accruing on such bonds so issued shall be payable 808
semiannually or annually. 809
If the bonds are to be sold on sealed bids at public sale, 810
notice of the sale of any such bonds shall be published at least 811
one time, not less than ten (10) days before the date of sale, and 812
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shall be so published in one or more newspapers published or 813
having a general circulation in the City of Jackson, Mississippi, 814
selected by the commission. 815
The commission, when issuing any bonds under the authority of 816
this section, may provide that bonds, at the option of the State 817
of Mississippi, may be called in for payment and redemption at the 818
call price named therein and accrued interest on such date or 819
dates named therein. 820
(7) The bonds issued under the provisions of this section 821
are general obligations of the State of Mississippi, and for the 822
payment thereof the full faith and credit of the State of 823
Mississippi is irrevocably pledged. If the funds appropriated by 824
the Legislature are insufficient to pay the principal of and the 825
interest on such bonds as they become due, then the deficiency 826
shall be paid by the State Treasurer from any funds in the State 827
Treasury not otherwise appropriated. All such bonds shall contain 828
recitals on their faces substantially covering the provisions of 829
this subsection. 830
(8) Upon the issuance and sale of bonds under the provisions 831
of this section, the commission shall transfer the proceeds of any 832
such sale or sales to the Mississippi Work and Save Administrative 833
Fund created in Section 10 of this act. The proceeds of such 834
bonds shall be disbursed as provided in such section under such 835
restrictions, if any, as may be contained in the resolution 836
providing for the issuance of the bonds. 837
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(9) The bonds authorized under this section may be issued 838
without any other proceedings or the happening of any other 839
conditions or things other than those proceedings, conditions and 840
things which are specified or required by this section. Any 841
resolution providing for the issuance of bonds under the 842
provisions of this section shall become effective immediately upon 843
its adoption by the commission, and any such resolution may be 844
adopted at any regular or special meeting of the commission by a 845
majority of its members. 846
(10) The bonds authorized under the authority of this 847
section may be validated in the Chancery Court of the First 848
Judicial District of Hinds County, Mississippi, in the manner and 849
with the force and effect provided by Chapter 13, Title 31, 850
Mississippi Code of 1972, for the validation of county, municipal, 851
school district and other bonds. The notice to taxpayers required 852
by such statutes shall be published in a newspaper published or 853
having a general circulation in the City of Jackson, Mississippi. 854
(11) Any holder of bonds issued under the provisions of this 855
section or of any of the interest coupons pertaining thereto may, 856
either at law or in equity, by suit, action, mandamus or other 857
proceeding, protect and enforce any and all rights granted under 858
this section, or under such resolution, and may enforce and compel 859
performance of all duties required by this section to be 860
performed, in order to provide for the payment of bonds and 861
interest thereon. 862
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(12) All bonds issued under the provisions of this section 863
shall be legal investments for trustees and other fiduciaries, and 864
for savings banks, trust companies and insurance companies 865
organized under the laws of the State of Mississippi, and such 866
bonds shall be legal securities which may be deposited with and 867
shall be received by all public officers and bodies of this state 868
and all municipalities and political subdivisions for the purpose 869
of securing the deposit of public funds. 870
(13) Bonds issued under the provisions of this section and 871
income therefrom shall be exempt from all taxation in the State of 872
Mississippi. 873
(14) The proceeds of the bonds issued under this section 874
shall be used solely for the purposes therein provided, including 875
the costs incident to the issuance and sale of such bonds. 876
(15) The State Treasurer is authorized, without further 877
process of law, to certify to the Department of Finance and 878
Administration the necessity for warrants, and the Department of 879
Finance and Administration is authorized and directed to issue 880
such warrants, in such amounts as may be necessary to pay when due 881
the principal of, premium, if any, and interest on, or the 882
accreted value of, all bonds issued under this section; and the 883
State Treasurer shall forward the necessary amount to the 884
designated place or places of payment of such bonds in ample time 885
to discharge such bonds, or the interest thereon, on the due dates 886
thereof. 887
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(16) This section shall be deemed to be full and complete 888
authority for the exercise of the powers therein granted, but this 889
section shall not be deemed to repeal or to be in derogation of 890
any existing law of this state. 891
SECTION 14. Section 25-14-5, Mississippi Code of 1972, is 892
amended as follows: 893
25-14-5. (1) The State of Mississippi, or any state agency, 894
county, municipality or other political subdivision may, by 895
contract, agree with any employee to defer, in whole or in part, 896
any portion of that employee's income, and a county, municipality 897
or other political subdivision, except community and junior 898
college districts, may make contributions to the plan on behalf of 899
actively participating members on a uniform basis through an 900
employer contribution agreement as provided for in the Mississippi 901
Deferred Compensation Plan and Trust Plan Document if making the 902
contribution does not conflict with any other state law. Those 903
funds may subsequently be used to purchase a fixed or variable 904
life insurance or annuity contract authorized for purchase by the 905
Public Employees' Retirement System of Mississippi for the purpose 906
of protecting its obligation to the deferred compensation program 907
for the employee from any life underwriter duly licensed by this 908
state who represents an insurance company licensed to contract 909
fixed and variable annuities and fixed or variable life insurance 910
business in this state and authorized by the Public Employees' 911
Retirement System of Mississippi to offer their products in the 912
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plan, or to purchase any investments authorized for purchase by 913
the Public Employees' Retirement System of Mississippi under 914
Section 25-11-121, or to invest those monies in a fund or funds 915
maintained by a corporate trustee, which fund or funds are used as 916
an investment media for retirement, pension or profit sharing 917
plans that are tax qualified for that purpose. However, in the 918
administration of this plan, the Public Employees' Retirement 919
System of Mississippi may adopt such regulations as are reasonable 920
and necessary to assure the orderly functioning of the plan, but 921
those regulations shall not unreasonably restrict all licensed 922
life underwriters and insurance companies described in this 923
section from concurrently participating in providing contracts 924
authorized under this section. 925
(2) Anything in any other law to the contrary 926
notwithstanding, except as provided in subsection (3) of this 927
section, the deferred portion of the employee's compensation, the 928
plan and the monies in the plan created by this chapter are exempt 929
from any state, county or municipal ad valorem taxes, income 930
taxes, premium taxes, privilege taxes, property taxes, sales and 931
use taxes and any other taxes not so named, until the deferred 932
compensation is paid to the employee or beneficiary and exempt 933
from levy, garnishment, attachment or any other process 934
whatsoever. 935
(3) The Mississippi Deferred Compensation Plan and Trust, or 936
any other deferred compensation plan established by this chapter, 937
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may include Roth accounts pursuant to 26 USC § 402A or any other 938
after-tax contribution vehicle allowed under the Internal Revenue 939
Code, if permitted by the plan document. A participant's Roth or 940
other allowable after-tax contribution into a deferred 941
compensation account shall be treated by the employer as 942
includable in the participant's income at the time the participant 943
would have received that amount in compensation if the participant 944
had not made a deferred election. 945
SECTION 15. Section 25-14-15, Mississippi Code of 1972, is 946
amended as follows: 947
25-14-15. Notwithstanding any other provision of this 948
chapter or any other provision of law to the contrary, except as 949
provided in Section 25-14-5(3), any sum deferred under the 950
deferred compensation program shall not be included for the 951
purposes of computation of any taxes withheld on behalf of any 952
employee. 953
SECTION 16. Section 25-11-105, Mississippi Code of 1972, is 954
amended as follows: 955
25-11-105. I. THOSE WHO ARE ELIGIBLE FOR MEMBERSHIP 956
The membership of this retirement system shall be composed as 957
follows: 958
(a) (i) All persons who become employees in the state 959
service after January 31, 1953, and whose wages are subject to 960
payroll taxes and are lawfully reported on IRS Form W-2, except 961
those specifically excluded, or as to whom election is provided in 962
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Articles 1 and 3, shall become members of the retirement system as 963
a condition of their employment. 964
(ii) From and after July 1, 2002, any individual 965
who is employed by a governmental entity to perform professional 966
services shall become a member of the system if the individual is 967
paid regular periodic compensation for those services that is 968
subject to payroll taxes, is provided all other employee benefits 969
and meets the membership criteria established by the regulations 970
adopted by the board of trustees that apply to all other members 971
of the system; however, any active member employed in such a 972
position on July 1, 2002, will continue to be an active member for 973
as long as they are employed in any such position. 974
(b) All persons who become employees in the state 975
service after January 31, 1953, except those specifically excluded 976
or as to whom election is provided in Articles 1 and 3, unless 977
they file with the board before the lapse of sixty (60) days of 978
employment or sixty (60) days after the effective date of the 979
cited articles, whichever is later, on a form prescribed by the 980
board, a notice of election not to be covered by the membership of 981
the retirement system and a duly executed waiver of all present 982
and prospective benefits that would otherwise inure to them on 983
account of their participation in the system, shall become members 984
of the retirement system; however, no credit for prior service 985
will be granted to members who became members of the system before 986
July 1, 2007, until they have contributed to Article 3 of the 987
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retirement system for a minimum period of at least four (4) years, 988
or to members who became members of the system on or after July 1, 989
2007, until they have contributed to Article 3 of the retirement 990
system for a minimum period of at least eight (8) years. Those 991
members shall receive credit for services performed before January 992
1, 1953, in employment now covered by Article 3, but no credit 993
shall be granted for retroactive services between January 1, 1953, 994
and the date of their entry into the retirement system, unless the 995
employee pays into the retirement system both the employer's and 996
the employee's contributions on wages paid him during the period 997
from January 31, 1953, to the date of his becoming a contributing 998
member, together with interest at the rate determined by the board 999
of trustees. Members reentering after withdrawal from service 1000
shall qualify for prior service under the provisions of Section 1001
25-11-117. From and after July 1, 1998, upon eligibility as noted 1002
above, the member may receive credit for such retroactive service 1003
provided: 1004
(i) The member shall furnish proof satisfactory to 1005
the board of trustees of certification of that service from the 1006
covered employer where the services were performed; and 1007
(ii) The member shall pay to the retirement system 1008
on the date he or she is eligible for that credit or at any time 1009
thereafter before the date of retirement the actuarial cost for 1010
each year of that creditable service. The provisions of this 1011
subparagraph (ii) shall be subject to the limitations of Section 1012
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415 of the Internal Revenue Code and regulations promulgated under 1013
Section 415. 1014
Nothing contained in this paragraph (b) shall be construed to 1015
limit the authority of the board to allow the correction of 1016
reporting errors or omissions based on the payment of the employee 1017
and employer contributions plus applicable interest. 1018
(c) All persons who become employees in the state 1019
service after January 31, 1953, and who are eligible for 1020
membership in any other retirement system shall become members of 1021
this retirement system as a condition of their employment, unless 1022
they elect at the time of their employment to become a member of 1023
that other system. 1024
(d) All persons who are employees in the state service 1025
on January 31, 1953, and who are members of any nonfunded 1026
retirement system operated by the State of Mississippi, or any of 1027
its departments or agencies, shall become members of this system 1028
with prior service credit unless, before February 1, 1953, they 1029
file a written notice with the board of trustees that they do not 1030
elect to become members. 1031
(e) All persons who are employees in the state service 1032
on January 31, 1953, and who under existing laws are members of 1033
any fund operated for the retirement of employees by the State of 1034
Mississippi, or any of its departments or agencies, shall not be 1035
entitled to membership in this retirement system unless, before 1036
February 1, 1953, any such person indicates by a notice filed with 1037
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the board, on a form prescribed by the board, his individual 1038
election and choice to participate in this system, but no such 1039
person shall receive prior service credit unless he becomes a 1040
member on or before February 1, 1953. 1041
(f) Each political subdivision of the state and each 1042
instrumentality of the state or a political subdivision, or both, 1043
is authorized to submit, for approval by the board of trustees, a 1044
plan for extending the benefits of this article to employees of 1045
any such political subdivision or instrumentality. Each such plan 1046
or any amendment to the plan for extending benefits thereof shall 1047
be approved by the board of trustees if it finds that the plan, or 1048
the plan as amended, is in conformity with such requirements as 1049
are provided in Articles 1 and 3; however, upon approval of the 1050
plan or any such plan previously approved by the board of 1051
trustees, the approved plan shall not be subject to cancellation 1052
or termination by the political subdivision or instrumentality. 1053
Any plan terminated through legislation, privatization, sale, 1054
dissolution, actions of the board through subparagraph (v) of this 1055
paragraph, or any other method, shall pay to the board its portion 1056
of the net pension liability as of June 30, 2026, or the date of 1057
termination, whichever amount is greater, in a lump sum before 1058
termination, as provided by board regulations. No such plan shall 1059
be approved unless: 1060
(i) It provides that all services that constitute 1061
employment as defined in Section 25-11-5 and are performed in the 1062
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employ of the political subdivision or instrumentality, by any 1063
employees thereof, shall be covered by the plan, with the 1064
exception of municipal employees who are already covered by 1065
existing retirement plans; however, those employees in this class 1066
may elect to come under the provisions of this article; 1067
(ii) It specifies the source or sources from which 1068
the funds necessary to make the payments required by paragraph (d) 1069
of Section 25-11-123 and of paragraph (f)(v)2 and 3 of this 1070
section are expected to be derived and contains reasonable 1071
assurance that those sources will be adequate for that purpose; 1072
(iii) It provides for such methods of 1073
administration of the plan by the political subdivision or 1074
instrumentality as are found by the board of trustees to be 1075
necessary for the proper and efficient administration thereof; 1076
(iv) It provides that the political subdivision or 1077
instrumentality will make such reports, in such form and 1078
containing such information, as the board of trustees may from 1079
time to time require; 1080
(v) It authorizes the board of trustees to 1081
terminate the plan in its entirety in the discretion of the board 1082
if it finds that there has been a failure to comply substantially 1083
with any provision contained in the plan, the termination to take 1084
effect at the expiration of such notice and on such conditions as 1085
may be provided by regulations of the board and as may be 1086
consistent with applicable federal law. 1087
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1. The board of trustees shall not finally 1088
refuse to approve a plan submitted under paragraph (f), and shall 1089
not terminate an approved plan without reasonable notice and 1090
opportunity for hearing to each political subdivision or 1091
instrumentality affected by the board's decision. The board's 1092
decision in any such case shall be final, conclusive and binding 1093
unless an appeal is taken by the political subdivision or 1094
instrumentality aggrieved by the decision to the Circuit Court of 1095
the First Judicial District of Hinds County, Mississippi, in 1096
accordance with the provisions of law with respect to civil causes 1097
by certiorari. 1098
2. Each political subdivision or 1099
instrumentality as to which a plan has been approved under this 1100
section shall pay into the contribution fund, with respect to 1101
wages (as defined in Section 25-11-5), at such time or times as 1102
the board of trustees may by regulation prescribe, contributions 1103
in the amounts and at the rates specified in the applicable 1104
agreement entered into by the board. 1105
3. Every political subdivision or 1106
instrumentality required to make payments under paragraph (f)(v)2 1107
of this section is authorized, in consideration of the employees' 1108
retention in or entry upon employment after enactment of Articles 1109
1 and 3, to impose upon its employees, as to services that are 1110
covered by an approved plan, a contribution with respect to wages 1111
(as defined in Section 25-11-5) not exceeding the amount provided 1112
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in Section 25-11-123(d) if those services constituted employment 1113
within the meaning of Articles 1 and 3, and to deduct the amount 1114
of the contribution from the wages as and when paid. 1115
Contributions so collected shall be paid into the contribution 1116
fund as partial discharge of the liability of the political 1117
subdivisions or instrumentalities under paragraph (f)(v)2 of this 1118
section. Failure to deduct the contribution shall not relieve the 1119
employee or employer of liability for the contribution. 1120
4. Any state agency, school, political 1121
subdivision, instrumentality or any employer that is required to 1122
submit contribution payments, termination payments or wage reports 1123
under any section of this chapter shall be assessed interest on 1124
delinquent payments or wage reports as determined by the board of 1125
trustees in accordance with rules and regulations adopted by the 1126
board and delinquent payments, assessed interest and any other 1127
amount certified by the board as owed by an employer, may be 1128
recovered by action in a court of competent jurisdiction against 1129
the reporting agency liable therefor or may, upon due 1130
certification of delinquency and at the request of the board of 1131
trustees, be deducted from any other monies payable to the 1132
reporting agency by any department or agency of the state. 1133
5. Each political subdivision of the state 1134
and each instrumentality of the state or a political subdivision 1135
or subdivisions that submit a plan for approval of the board, as 1136
provided in this section, shall reimburse the board for coverage 1137
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into the expense account, its pro rata share of the total expense 1138
of administering Articles 1 and 3 as provided by regulations of 1139
the board. 1140
(g) The board may, in its discretion, deny the right of 1141
membership in this system to any class of employees whose 1142
compensation is only partly paid by the state or who are occupying 1143
positions on a part-time or intermittent basis. The board may, in 1144
its discretion, make optional with employees in any such classes 1145
their individual entrance into this system. 1146
(h) An employee whose membership in this system is 1147
contingent on his own election, and who elects not to become a 1148
member, may thereafter apply for and be admitted to membership; 1149
but no such employee shall receive prior service credit unless he 1150
becomes a member before July 1, 1953, except as provided in 1151
paragraph (b). 1152
(i) If any member of this system changes his employment 1153
to any agency of the state having an actuarially funded retirement 1154
system, the board of trustees may authorize the transfer of the 1155
member's creditable service and of the present value of the 1156
member's employer's accumulation account and of the present value 1157
of the member's accumulated membership contributions to that other 1158
system, provided that the employee agrees to the transfer of his 1159
accumulated membership contributions and provided that the other 1160
system is authorized to receive and agrees to make the transfer. 1161
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If any member of any other actuarially funded system 1162
maintained by an agency of the state changes his employment to an 1163
agency covered by this system, the board of trustees may authorize 1164
the receipt of the transfer of the member's creditable service and 1165
of the present value of the member's employer's accumulation 1166
account and of the present value of the member's accumulated 1167
membership contributions from the other system, provided that the 1168
employee agrees to the transfer of his accumulated membership 1169
contributions to this system and provided that the other system is 1170
authorized and agrees to make the transfer. 1171
(j) Wherever state employment is referred to in this 1172
section, it includes joint employment by state and federal 1173
agencies of all kinds. 1174
(k) Employees of a political subdivision or 1175
instrumentality who were employed by the political subdivision or 1176
instrumentality before an agreement between the entity and the 1177
Public Employees' Retirement System to extend the benefits of this 1178
article to its employees, and which agreement provides for the 1179
establishment of retroactive service credit, and who became 1180
members of the retirement system before July 1, 2007, and have 1181
remained contributors to the retirement system for four (4) years, 1182
or who became members of the retirement system on or after July 1, 1183
2007, and have remained contributors to the retirement system for 1184
eight (8) years, may receive credit for that retroactive service 1185
with the political subdivision or instrumentality, provided that 1186
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the employee and/or employer, as provided under the terms of the 1187
modification of the joinder agreement in allowing that coverage, 1188
pay into the retirement system the employer's and employee's 1189
contributions on wages paid the member during the previous 1190
employment, together with interest or actuarial cost as determined 1191
by the board covering the period from the date the service was 1192
rendered until the payment for the credit for the service was 1193
made. Those wages shall be verified by the Social Security 1194
Administration or employer payroll records. Effective July 1, 1195
1998, upon eligibility as noted above, a member may receive credit 1196
for that retroactive service with the political subdivision or 1197
instrumentality provided: 1198
(i) The member shall furnish proof satisfactory to 1199
the board of trustees of certification of those services from the 1200
political subdivision or instrumentality where the services were 1201
rendered or verification by the Social Security Administration; 1202
and 1203
(ii) The member shall pay to the retirement system 1204
on the date he or she is eligible for that credit or at any time 1205
thereafter before the date of retirement the actuarial cost for 1206
each year of that creditable service. The provisions of this 1207
subparagraph (ii) shall be subject to the limitations of Section 1208
415 of the Internal Revenue Code and regulations promulgated under 1209
Section 415. 1210
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Nothing contained in this paragraph (k) shall be construed to 1211
limit the authority of the board to allow the correction of 1212
reporting errors or omissions based on the payment of employee and 1213
employer contributions plus applicable interest. Payment for that 1214
time shall be made beginning with the most recent service. Upon 1215
the payment of all or part of the required contributions, plus 1216
interest or the actuarial cost as provided above, the member shall 1217
receive credit for the period of creditable service for which full 1218
payment has been made to the retirement system. 1219
(l) Through June 30, 1998, any state service eligible 1220
for retroactive service credit, no part of which has ever been 1221
reported, and requiring the payment of employee and employer 1222
contributions plus interest, or, from and after July 1, 1998, any 1223
state service eligible for retroactive service credit, no part of 1224
which has ever been reported to the retirement system, and 1225
requiring the payment of the actuarial cost for that creditable 1226
service, may, at the member's option, be purchased in quarterly 1227
increments as provided above at the time that its purchase is 1228
otherwise allowed. 1229
(m) All rights to purchase retroactive service credit 1230
or repay a refund as provided in Section 25-11-101 et seq. shall 1231
terminate upon retirement. 1232
II. THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP 1233
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The following classes of employees and officers shall not 1234
become members of this retirement system, any other provisions of 1235
Articles 1 and 3 to the contrary notwithstanding: 1236
(a) Patient or inmate help in state charitable, penal 1237
or correctional institutions; 1238
(b) Students of any state educational institution 1239
employed by any agency of the state for temporary, part-time or 1240
intermittent work; 1241
(c) Participants of Comprehensive Employment and 1242
Training Act of 1973 (CETA) being Public Law 93-203, who enroll on 1243
or after July l, 1979; 1244
(d) From and after July 1, 2002, individuals who are 1245
employed by a governmental entity to perform professional service 1246
on less than a full-time basis who do not meet the criteria 1247
established in I(a)(ii) of this section. 1248
III. TERMINATION OF MEMBERSHIP 1249
Membership in this system shall cease by a member withdrawing 1250
his accumulated contributions, or by a member withdrawing from 1251
active service with a retirement allowance, or by a member's 1252
death. 1253
SECTION 17. Section 25-11-103, Mississippi Code of 1972, is 1254
amended as follows: 1255
25-11-103. (1) The following words and phrases as used in 1256
Articles 1 and 3, unless a different meaning is plainly required 1257
by the context, have the following meanings: 1258
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(a) "Accumulated contributions" means the sum of all 1259
the amounts deducted from the compensation of a member and 1260
credited to his or her individual account in the annuity savings 1261
account, together with regular interest as provided in Section 1262
25-11-123. 1263
(b) "Actuarial cost" means the amount of funds 1264
presently required to provide future benefits as determined by the 1265
board based on applicable tables and formulas provided by the 1266
actuary. 1267
(c) "Actuarial equivalent" means a benefit of equal 1268
value to the accumulated contributions, annuity or benefit, as the 1269
case may be, when computed upon the basis of such mortality tables 1270
as adopted by the board of trustees, and regular interest. 1271
(d) "Actuarial tables" mean such tables of mortality 1272
and rates of interest as adopted by the board in accordance with 1273
the recommendation of the actuary. 1274
(e) "Agency" means any governmental body employing 1275
persons in the state service. 1276
(f) "Average compensation" means * * * the average of 1277
the four (4) highest years of earned compensation reported for an 1278
employee in a fiscal or calendar year period, or combination 1279
thereof that do not overlap, or the last forty-eight (48) 1280
consecutive months of earned compensation reported for an 1281
employee. The four (4) years need not be successive or joined 1282
years of service. * * * 1283
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In computing the average compensation for retirement, 1284
disability or survivor benefits, any amount lawfully paid in a 1285
lump sum for personal leave or major medical leave shall be 1286
included in the calculation to the extent that the amount does not 1287
exceed an amount that is equal to thirty (30) days of earned 1288
compensation and to the extent that it does not cause the 1289
employee's earned compensation to exceed the maximum reportable 1290
amount specified in paragraph (k) of this subsection; however, 1291
this thirty-day limitation shall not prevent the inclusion in the 1292
calculation of leave earned under federal regulations before July 1293
1, 1976, and frozen as of that date as referred to in Section 1294
25-3-99. In computing the average compensation, no amounts shall 1295
be used that are in excess of the amount on which contributions 1296
were required and paid, and no nontaxable amounts paid by the 1297
employer for health or life insurance premiums for the employee 1298
shall be used. If any member who is or has been granted any 1299
increase in annual salary or compensation of more than eight 1300
percent (8%) retires within twenty-four (24) months from the date 1301
that the increase becomes effective, then the board shall exclude 1302
that part of the increase in salary or compensation that exceeds 1303
eight percent (8%) in calculating that member's average 1304
compensation for retirement purposes. The board may enforce this 1305
provision by rule or regulation. However, increases in 1306
compensation in excess of eight percent (8%) per year granted 1307
within twenty-four (24) months of the date of retirement may be 1308
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included in the calculation of average compensation if 1309
satisfactory proof is presented to the board showing that the 1310
increase in compensation was the result of an actual change in the 1311
position held or services rendered, or that the compensation 1312
increase was authorized by the State Personnel Board or was 1313
increased as a result of statutory enactment, and the employer 1314
furnishes an affidavit stating that the increase granted within 1315
the last twenty-four (24) months was not contingent on a promise 1316
or agreement of the employee to retire. Nothing in Section 1317
25-3-31 shall affect the calculation of the average compensation 1318
of any member for the purposes of this article. The average 1319
compensation of any member who retires before July 1, 1992, shall 1320
not exceed the annual salary of the Governor. 1321
(g) "Beneficiary" means any person entitled to receive 1322
a retirement allowance, an annuity or other benefit as provided by 1323
Articles 1 and 3. The term "beneficiary" may also include an 1324
organization, estate, trust or entity; however, a beneficiary 1325
designated or entitled to receive monthly payments under an 1326
optional settlement based on life contingency or under a statutory 1327
monthly benefit may only be a natural person. In the event of the 1328
death before retirement of any member who became a member of the 1329
system before July 1, 2007, and whose spouse and/or children are 1330
not entitled to a retirement allowance on the basis that the 1331
member has less than four (4) years of membership service credit, 1332
or who became a member of the system on or after July 1, 2007, and 1333
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whose spouse and/or children are not entitled to a retirement 1334
allowance on the basis that the member has less than eight (8) 1335
years of membership service credit, and/or has not been married 1336
for a minimum of one (1) year or the spouse has waived his or her 1337
entitlement to a retirement allowance under Section 25-11-114, the 1338
lawful spouse of a member at the time of the death of the member 1339
shall be the beneficiary of the member unless the member has 1340
designated another beneficiary after the date of marriage in 1341
writing, and filed that writing in the office of the executive 1342
director of the board of trustees. No designation or change of 1343
beneficiary shall be made in any other manner. 1344
(h) "Board" means the board of trustees provided in 1345
Section 25-11-15 to administer the retirement system created under 1346
this article. 1347
(i) "Creditable service" means "prior service," 1348
"retroactive service" and all lawfully credited unused leave not 1349
exceeding the accrual rates and limitations provided in Section 1350
25-3-91 et seq., as of the date of withdrawal from service plus 1351
"membership service" and other service for which credit is 1352
allowable as provided in Section 25-11-109. Except to limit 1353
creditable service reported to the system for the purpose of 1354
computing an employee's retirement allowance or annuity or 1355
benefits provided in this article, nothing in this paragraph shall 1356
limit or otherwise restrict the power of the governing authority 1357
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of a municipality or other political subdivision of the state to 1358
adopt such vacation and sick leave policies as it deems necessary. 1359
(j) "Child" means either a natural child of the member, 1360
a child that has been made a child of the member by applicable 1361
court action before the death of the member, or a child under the 1362
permanent care of the member at the time of the latter's death, 1363
which permanent care status shall be determined by evidence 1364
satisfactory to the board. For purposes of this paragraph, a 1365
natural child of the member is a child of the member that is 1366
conceived before the death of the member. 1367
(k) "Earned compensation" means the full amount earned 1368
during a fiscal year by an employee not to exceed the employee 1369
compensation limit set pursuant to Section 401(a)(17) of the 1370
Internal Revenue Code for the calendar year in which the fiscal 1371
year begins and proportionately for less than one (1) year of 1372
service. Except as otherwise provided in this paragraph, the 1373
value of maintenance furnished to an employee shall not be 1374
included in earned compensation. Earned compensation shall not 1375
include any amounts paid by the employer for health or life 1376
insurance premiums for an employee. Earned compensation shall be 1377
limited to the regular periodic compensation paid, exclusive of 1378
litigation fees, bond fees, performance-based incentive payments, 1379
and other similar extraordinary nonrecurring payments. In 1380
addition, any member in a covered position, as defined by Public 1381
Employees' Retirement System laws and regulations, who is also 1382
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employed by another covered agency or political subdivision shall 1383
have the earnings of that additional employment reported to the 1384
Public Employees' Retirement System regardless of whether the 1385
additional employment is sufficient in itself to be a covered 1386
position. In addition, computation of earned compensation shall 1387
be governed by the following: 1388
(i) In the case of constables, the net earnings 1389
from their office after deduction of expenses shall apply, except 1390
that in no case shall earned compensation be less than the total 1391
direct payments made by the state or governmental subdivisions to 1392
the official. 1393
(ii) In the case of chancery or circuit clerks, 1394
the net earnings from their office after deduction of expenses 1395
shall apply as expressed in Section 25-11-123(f)(4). 1396
(iii) In the case of members of the State 1397
Legislature, all remuneration or amounts paid, except mileage 1398
allowance, shall apply. 1399
(iv) The amount by which an eligible employee's 1400
salary is reduced under a salary reduction agreement authorized 1401
under Section 25-17-5 shall be included as earned compensation 1402
under this paragraph, provided this inclusion does not conflict 1403
with federal law, including federal regulations and federal 1404
administrative interpretations under the federal law, pertaining 1405
to the Federal Insurance Contributions Act or to Internal Revenue 1406
Code Section 125 cafeteria plans. 1407
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(v) Compensation in addition to an employee's base 1408
salary that is paid to the employee under the vacation and sick 1409
leave policies of a municipality or other political subdivision of 1410
the state that employs him or her that exceeds the maximums 1411
authorized by Section 25-3-91 et seq. shall be excluded from the 1412
calculation of earned compensation under this article. 1413
(vi) The maximum salary applicable for retirement 1414
purposes before July 1, 1992, shall be the salary of the Governor. 1415
(vii) Nothing in Section 25-3-31 shall affect the 1416
determination of the earned compensation of any member for the 1417
purposes of this article. 1418
(viii) The value of maintenance furnished to an 1419
employee before July 1, 2013, for which the proper amount of 1420
employer and employee contributions have been paid, shall be 1421
included in earned compensation. From and after July 1, 2013, the 1422
value of maintenance furnished to an employee shall be reported as 1423
earned compensation only if the proper amount of employer and 1424
employee contributions have been paid on the maintenance and the 1425
employee was receiving maintenance and having maintenance reported 1426
to the system as of June 30, 2013. The value of maintenance when 1427
not paid in money shall be fixed by the employing state agency, 1428
and, in case of doubt, by the board of trustees as defined in 1429
Section 25-11-15. 1430
(ix) Except as otherwise provided in this 1431
paragraph, the value of any in-kind benefits provided by the 1432
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employer shall not be included in earned compensation. As used in 1433
this subparagraph, "in-kind benefits" shall include, but not be 1434
limited to, group life insurance premiums, health or dental 1435
insurance premiums, nonpaid major medical and personal leave, 1436
employer contributions for social security and retirement, tuition 1437
reimbursement or educational funding, day care or transportation 1438
benefits. 1439
(l) "Employee" means any person legally occupying a 1440
position in the state service, and shall include the employees of 1441
the retirement system created under this article. 1442
(m) "Employer" means the State of Mississippi or any of 1443
its departments, agencies or subdivisions from which any employee 1444
receives his or her compensation. 1445
(n) "Executive director" means the secretary to the 1446
board of trustees, as provided in Section 25-11-15(9), and the 1447
administrator of the Public Employees' Retirement System and all 1448
systems under the management of the board of trustees. Wherever 1449
the term "Executive Secretary of the Public Employees' Retirement 1450
System" or "executive secretary" appears in this article or in any 1451
other provision of law, it shall be construed to mean the 1452
Executive Director of the Public Employees' Retirement System. 1453
(o) "Fiscal year" means the period beginning on July 1 1454
of any year and ending on June 30 of the next succeeding year. 1455
(p) "Medical board" means the board of physicians or 1456
any governmental or nongovernmental disability determination 1457
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service designated by the board of trustees that is qualified to 1458
make disability determinations as provided for in Section 1459
25-11-119. 1460
(q) "Member" means any person included in the 1461
membership of the system as provided in Section 25-11-105. For 1462
purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 1463
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 1464
system withdrew from state service and received a refund of the 1465
amount of the accumulated contributions to the credit of the 1466
member in the annuity savings account before July 1, 2007, and the 1467
person reenters state service and becomes a member of the system 1468
again on or after July 1, 2007, and repays all or part of the 1469
amount received as a refund and interest in order to receive 1470
creditable service for service rendered before July 1, 2007, the 1471
member shall be considered to have become a member of the system 1472
on or after July 1, 2007, subject to the eight-year membership 1473
service requirement, as applicable in those sections. For 1474
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 1475
25-11-115, if a member of the system withdrew from state service 1476
and received a refund of the amount of the accumulated 1477
contributions to the credit of the member in the annuity savings 1478
account before July 1, 2011, and the person reenters state service 1479
and becomes a member of the system again on or after July 1, 2011, 1480
and repays all or part of the amount received as a refund and 1481
interest in order to receive creditable service for service 1482
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rendered before July 1, 2011, the member shall be considered to 1483
have become a member of the system on or after July 1, 2011. If a 1484
member of the system withdrew from state service and received a 1485
refund of the amount of the accumulated contributions to the 1486
credit of the member in the annuity savings account before March 1487
1, 2026, and the person reenters state service and becomes a 1488
member of the system again on or after March 1, 2026, the member 1489
shall be considered to have become a member of the system on or 1490
after March 1, 2026, and may not receive creditable service for 1491
service rendered before March 1, 2026. 1492
(r) "Membership service" means service as an employee 1493
in a covered position rendered while a contributing member of the 1494
retirement system. 1495
(s) "Position" means any office or any employment in 1496
the state service, or two (2) or more of them, the duties of which 1497
call for services to be rendered by one (1) person, including 1498
positions jointly employed by federal and state agencies 1499
administering federal and state funds. The employer shall 1500
determine upon initial employment and during the course of 1501
employment of an employee who does not meet the criteria for 1502
coverage in the Public Employees' Retirement System based on the 1503
position held, whether the employee is or becomes eligible for 1504
coverage in the Public Employees' Retirement System based upon any 1505
other employment in a covered agency or political subdivision. If 1506
or when the employee meets the eligibility criteria for coverage 1507
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in the other position, then the employer must withhold 1508
contributions and report wages from the noncovered position in 1509
accordance with the provisions for reporting of earned 1510
compensation. Failure to deduct and report those contributions 1511
shall not relieve the employee or employer of liability thereof. 1512
The board shall adopt such rules and regulations as necessary to 1513
implement and enforce this provision. 1514
(t) "Prior service" means: 1515
(i) For persons who became members of the system 1516
before July 1, 2007, service rendered before February 1, 1953, for 1517
which credit is allowable under Sections 25-11-105 and 25-11-109, 1518
and which shall allow prior service for any person who is now or 1519
becomes a member of the Public Employees' Retirement System and 1520
who does contribute to the system for a minimum period of four (4) 1521
years. 1522
(ii) For persons who became members of the system 1523
on or after July 1, 2007, service rendered before February 1, 1524
1953, for which credit is allowable under Sections 25-11-105 and 1525
25-11-109, and which shall allow prior service for any person who 1526
is now or becomes a member of the Public Employees' Retirement 1527
System and who does contribute to the system for a minimum period 1528
of eight (8) years. 1529
(u) "Regular interest" means interest compounded 1530
annually at such a rate as determined by the board in accordance 1531
with Section 25-11-121. 1532
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(v) "Retirement allowance" means an annuity for life as 1533
provided in this article, payable each year in twelve (12) equal 1534
monthly installments beginning as of the date fixed by the board. 1535
The retirement allowance shall be calculated in accordance with 1536
Section 25-11-111. However, any spouse who received a spouse 1537
retirement benefit in accordance with Section 25-11-111(d) before 1538
March 31, 1971, and those benefits were terminated because of 1539
eligibility for a social security benefit, may again receive his 1540
or her spouse retirement benefit from and after making application 1541
with the board of trustees to reinstate the spouse retirement 1542
benefit. 1543
(w) "Retroactive service" means service rendered after 1544
February 1, 1953, for which credit is allowable under Section 1545
25-11-105(b) and Section 25-11-105(k). 1546
(x) "System" means the Public Employees' Retirement 1547
System of Mississippi established and described in Section 1548
25-11-101. 1549
(y) "State" means the State of Mississippi or any 1550
political subdivision thereof or instrumentality of the state. 1551
(z) "State service" means all offices and positions of 1552
trust or employment in the employ of the state, or any political 1553
subdivision or instrumentality of the state, that elect to 1554
participate as provided by Section 25-11-105(f), including the 1555
position of elected or fee officials of the counties and their 1556
deputies and employees performing public services or any 1557
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department, independent agency, board or commission thereof, and 1558
also includes all offices and positions of trust or employment in 1559
the employ of joint state and federal agencies administering state 1560
and federal funds and service rendered by employees of the public 1561
schools. Effective July 1, 1973, all nonprofessional public 1562
school employees, such as bus drivers, janitors, maids, 1563
maintenance workers and cafeteria employees, shall have the option 1564
to become members in accordance with Section 25-11-105(b), and 1565
shall be eligible to receive credit for services before July 1, 1566
1973, provided that the contributions and interest are paid by the 1567
employee in accordance with that section; in addition, the county 1568
or municipal separate school district may pay the employer 1569
contribution and pro rata share of interest of the retroactive 1570
service from available funds. "State service" shall not include 1571
the President of the Mississippi Lottery Corporation and personnel 1572
employed by the Mississippi Lottery Corporation. From and after 1573
July 1, 1998, retroactive service credit shall be purchased at the 1574
actuarial cost in accordance with Section 25-11-105(b). 1575
(aa) "Withdrawal from service" or "termination from 1576
service" means complete severance of employment in the state 1577
service of any member by resignation, dismissal or discharge. 1578
(bb) The masculine pronoun, wherever used, includes the 1579
feminine pronoun. 1580
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(2) For purposes of this article, the term "political 1581
subdivision" shall have the meaning ascribed to such term in 1582
Section 25-11-5 and shall also include public charter schools. 1583
SECTION 18. Section 25-11-111, Mississippi Code of 1972, is 1584
amended as follows: 1585
25-11-111. (a) (1) Any member who became a member of the 1586
system before July 1, 2007, upon withdrawal from service upon or 1587
after attainment of the age of sixty (60) years who has completed 1588
at least four (4) years of membership service, or any member who 1589
became a member of the system before July 1, 2011, upon withdrawal 1590
from service regardless of age who has completed at least 1591
twenty-five (25) years of creditable service, shall be entitled to 1592
receive a retirement allowance, which shall begin on the first of 1593
the month following the date the member's application for the 1594
allowance is received by the board, but in no event before 1595
withdrawal from service. 1596
(2) Any member who became a member of the system on or 1597
after July 1, 2007, but before March 1, 2026, upon withdrawal from 1598
service upon or after attainment of the age of sixty (60) years 1599
who has completed at least eight (8) years of membership service, 1600
or any member who became a member of the system on or after July 1601
1, 2011, but before March 1, 2026, upon withdrawal from service 1602
regardless of age who has completed at least thirty (30) years of 1603
creditable service, shall be entitled to receive a retirement 1604
allowance, which shall begin on the first of the month following 1605
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the date the member's application for the allowance is received by 1606
the board, but in no event before withdrawal from service. 1607
(3) Any member who became a member of the system on or 1608
after March 1, 2026, upon withdrawal from service upon or after 1609
attainment of the age of sixty-two (62) years who has completed at 1610
least eight (8) years of membership service, or upon withdrawal 1611
from service regardless of age who has completed at least * * * 1612
thirty (30) years of creditable service, shall be entitled to 1613
receive a retirement allowance, which shall begin on the first of 1614
the month following the date the member's application for the 1615
allowance is received by the board, but in no event before 1616
withdrawal from service. 1617
(b) (1) Any member who became a member of the system before 1618
July 1, 2007, whose withdrawal from service occurs before 1619
attaining the age of sixty (60) years who has completed four (4) 1620
or more years of membership service and has not received a refund 1621
of his accumulated contributions, shall be entitled to receive a 1622
retirement allowance, beginning upon his attaining the age of 1623
sixty (60) years, of the amount earned and accrued at the date of 1624
withdrawal from service. The retirement allowance shall begin on 1625
the first of the month following the date the member's application 1626
for the allowance is received by the board, but in no event before 1627
withdrawal from service. 1628
(2) Any member who became a member of the system on or 1629
after July 1, 2007, but before March 1, 2026, whose withdrawal 1630
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from service occurs before attaining the age of sixty (60) years 1631
who has completed eight (8) or more years of membership service 1632
and has not received a refund of his accumulated contributions, 1633
shall be entitled to receive a retirement allowance, beginning 1634
upon his attaining the age of sixty (60) years, of the amount 1635
earned and accrued at the date of withdrawal from service. The 1636
retirement allowance shall begin on the first of the month 1637
following the date the member's application for the allowance is 1638
received by the board, but in no event before withdrawal from 1639
service. 1640
(3) Any member who became a member of the system on or 1641
after March 1, 2026, whose withdrawal from service occurs before 1642
attaining the age of sixty-two (62) years who has completed eight 1643
(8) or more years of membership service and has not received a 1644
refund of his accumulated contributions, shall be entitled to 1645
receive a retirement allowance, beginning upon his attaining the 1646
age of sixty-two (62) years, of the amount earned and accrued at 1647
the date of withdrawal from service. The retirement allowance 1648
shall begin on the first of the month following the date the 1649
member's application for the allowance is received by the board, 1650
but in no event before withdrawal from service. 1651
(c) Any member in service who has qualified for retirement 1652
benefits may select any optional method of settlement of 1653
retirement benefits by notifying the Executive Director of the 1654
Board of Trustees of the Public Employees' Retirement System in 1655
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writing, on a form prescribed by the board, of the option he has 1656
selected and by naming the beneficiary of the option and 1657
furnishing necessary proof of age. The option, once selected, may 1658
be changed at any time before actual retirement or death, but upon 1659
the death or retirement of the member, the optional settlement 1660
shall be placed in effect upon proper notification to the 1661
executive director. 1662
(d) Any member who became a member of the system before July 1663
1, 2011, shall be entitled to an annual retirement allowance which 1664
shall consist of: 1665
(1) A member's annuity, which shall be the actuarial 1666
equivalent of the accumulated contributions of the member at the 1667
time of retirement computed according to the actuarial table in 1668
use by the system; and 1669
(2) An employer's annuity, which, together with the 1670
member's annuity provided above, shall be equal to two percent 1671
(2%) of the average compensation for each year of service up to 1672
and including twenty-five (25) years of creditable service, and 1673
two and one-half percent (2-1/2%) of the average compensation for 1674
each year of service exceeding twenty-five (25) years of 1675
creditable service. 1676
(3) Any retired member or beneficiary thereof who was 1677
eligible to receive a retirement allowance before July 1, 1991, 1678
and who is still receiving a retirement allowance on July 1, 1992, 1679
shall receive an increase in the annual retirement allowance of 1680
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the retired member equal to one-eighth of one percent (1/8 of 1%) 1681
of the average compensation for each year of state service in 1682
excess of twenty-five (25) years of membership service up to and 1683
including thirty (30) years. The maximum increase shall be 1684
five-eighths of one percent (5/8 of 1%). In no case shall a 1685
member who has been retired before July 1, 1987, receive less than 1686
Ten Dollars ($10.00) per month for each year of creditable service 1687
and proportionately for each quarter year thereof. Persons 1688
retired on or after July 1, 1987, shall receive at least Ten 1689
Dollars ($10.00) per month for each year of service and 1690
proportionately for each quarter year thereof reduced for the 1691
option selected. However, such Ten Dollars ($10.00) minimum per 1692
month for each year of creditable service shall not apply to a 1693
retirement allowance computed under Section 25-11-114 based on a 1694
percentage of the member's average compensation. 1695
(e) Any member who became a member of the system on or after 1696
July 1, 2011, but before March 1, 2026, shall be entitled to an 1697
annual retirement allowance which shall consist of: 1698
(1) A member's annuity, which shall be the actuarial 1699
equivalent of the accumulated contributions of the member at the 1700
time of retirement computed according to the actuarial table in 1701
use by the system; and 1702
(2) An employer's annuity, which, together with the 1703
member's annuity provided above, shall be equal to two percent 1704
(2%) of the average compensation for each year of service up to 1705
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and including thirty (30) years of creditable service, and two and 1706
one-half percent (2-1/2%) of average compensation for each year of 1707
service exceeding thirty (30) years of creditable service. 1708
(f) Any member who became a member of the system on or after 1709
July 1, 2011, but before March 1, 2026, upon withdrawal from 1710
service upon or after attaining the age of sixty (60) years who 1711
has completed at least eight (8) years of membership service, or 1712
any such member upon withdrawal from service regardless of age who 1713
has completed at least thirty (30) years of creditable service, 1714
shall be entitled to receive a retirement allowance computed in 1715
accordance with the formula set forth in subsection (e) of this 1716
section. In the case of the retirement of any member who has 1717
attained age sixty (60) but who has not completed at least thirty 1718
(30) years of creditable service, the retirement allowance shall 1719
be computed in accordance with the formula set forth in subsection 1720
(e) of this section except that the total annual retirement 1721
allowance shall be reduced by an actuarial equivalent factor for 1722
each year of creditable service below thirty (30) years or the 1723
number of years in age that the member is below age sixty-five 1724
(65), whichever is less. 1725
(g) Any member who became a member of the system on or after 1726
March 1, 2026, upon withdrawal from service upon or after 1727
attainment of the age of sixty-five (65) years who has completed 1728
at least eight (8) years of membership service, * * * or upon 1729
withdrawal from service regardless of age who has completed at 1730
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least * * * thirty (30) years of creditable service, shall be 1731
entitled to an annual retirement allowance which shall consist of 1732
a member's annuity, which annuity shall be equal to one percent 1733
(1%) of the average compensation for each year of creditable 1734
service. In the case of the retirement of any member who has 1735
attained the age of sixty-two (62) but has not completed at least 1736
thirty (30) years of creditable service, the total annual 1737
retirement allowance specified in this subsection (g) shall be 1738
reduced by an actuarial equivalent factor for each year of 1739
creditable service below thirty (30) years or the number of years 1740
in age that the member is below age sixty-five (65), whichever is 1741
less. 1742
(h) No member, except members excluded by the Age 1743
Discrimination in Employment Act Amendments of 1986 (Public Law 1744
99-592), under either Article 1 or Article 3 in state service 1745
shall be required to retire because of age. 1746
(i) No payment on account of any benefit granted under the 1747
provisions of this section shall become effective or begin to 1748
accrue until January 1, 1953. 1749
(j) (1) A retiree or beneficiary may, on a form prescribed 1750
by and filed with the retirement system, irrevocably waive all or 1751
a portion of any benefits from the retirement system to which the 1752
retiree or beneficiary is entitled. The waiver shall be binding 1753
on the heirs and assigns of any retiree or beneficiary and the 1754
same must agree to forever hold harmless the Public Employees' 1755
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Retirement System of Mississippi from any claim to the waived 1756
retirement benefits. 1757
(2) Any waiver under this subsection shall apply only 1758
to the person executing the waiver. A beneficiary shall be 1759
entitled to benefits according to the option selected by the 1760
member at the time of retirement. However, a beneficiary may, at 1761
the option of the beneficiary, execute a waiver of benefits under 1762
this subsection. 1763
(3) The retirement system shall retain in the annuity 1764
reserve account amounts that are not used to pay benefits because 1765
of a waiver executed under this subsection. 1766
(4) The board of trustees may provide rules and 1767
regulations for the administration of waivers under this 1768
subsection. 1769
SECTION 19. Section 25-11-127, Mississippi Code of 1972, is 1770
amended as follows: 1771
25-11-127. (1) (a) No person who is being paid a 1772
retirement allowance or a pension after retirement under this 1773
article shall be employed or paid for any service by the State of 1774
Mississippi, including services as an employee, contract worker, 1775
contractual employee or independent contractor, until the retired 1776
person has been retired for not less than * * * thirty (30) 1777
consecutive days from his or her effective date of retirement. 1778
After the person has been retired for not less than * * * thirty 1779
(30) consecutive days from his or her effective date of retirement 1780
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or such later date as established by the board, he or she may be 1781
reemployed while being paid a retirement allowance under the terms 1782
and conditions provided in this section or in Section 25-11-126. 1783
(b) No retiree of this retirement system who is 1784
reemployed or is reelected to office after retirement shall 1785
continue to draw retirement benefits while so reemployed, except 1786
as provided in this section or in Section 25-11-126. 1787
(c) No person employed or elected under the exceptions 1788
provided for in this section shall become a member under Article 3 1789
of the retirement system. 1790
(2) Except as otherwise provided in Section 25-11-126, any 1791
person who has been retired under the provisions of Article 3 and 1792
who is later reemployed in service covered by this article shall 1793
cease to receive benefits under this article and shall again 1794
become a contributing member of the retirement system. When the 1795
person retires again, if the reemployment exceeds six (6) months, 1796
the person shall have his or her benefit recomputed, including 1797
service after again becoming a member, provided that the total 1798
retirement allowance paid to the retired member in his or her 1799
previous retirement shall be deducted from the member's retirement 1800
reserve and taken into consideration in recalculating the 1801
retirement allowance under a new option selected. 1802
(3) The board shall have the right to prescribe rules and 1803
regulations for carrying out the provisions of this section. 1804
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(4) The provisions of this section shall not be construed to 1805
prohibit any retiree, regardless of age, from being employed and 1806
drawing a retirement allowance either: 1807
(a) For a period of time not to exceed one-half (1/2) 1808
of the normal working days for the position in any fiscal year 1809
during which the retiree will receive no more than one-half (1/2) 1810
of the salary in effect for the position at the time of 1811
employment * * *; 1812
(b) For a period of time in any fiscal year sufficient 1813
in length to permit a retiree to earn not in excess of twenty-five 1814
percent (25%) of retiree's average compensation * * *; or 1815
(c) For a period of time as agreed to between the 1816
employee and the employer, at compensation in an amount not to 1817
exceed eighty percent (80%) of the salary in effect for the 1818
position at the time of employment. Under this paragraph (c), a 1819
written agreement must be executed after the conclusion of the 1820
thirty-day separation period detailing the covered employment 1821
position, the full salary for the position, and the percentage of 1822
salary the employee returning to work will receive as 1823
compensation. The employer and the employee must sign the 1824
agreement and provide a copy to the system, and any subsequent 1825
amendment to the terms and conditions of the agreement must be in 1826
writing, signed by both the employer and the employee, and 1827
provided to the system within twenty (20) working days of the 1828
execution of the amendment. Any agreement under this paragraph 1829
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(c) shall state that the employer shall be responsible for the 1830
entire amount of required contributions to the system, and that 1831
the employee shall not gain any additional rights or benefits 1832
toward retirement. The employer shall be responsible for an 1833
amount equal to the sum of the current employer contribution rate 1834
and the current employee contribution rate in effect in the year 1835
of the return-to-work employment. The employee shall not gain any 1836
additional rights or benefits toward retirement from returning to 1837
work under this paragraph (c). Employer contributions for 1838
employees returning to work under this paragraph (c) are designed 1839
to offset any pension liability created by this paragraph (c). No 1840
retiree may return to work under this paragraph (c) as an elected 1841
official, a K-12 school superintendent, or an administrator at a 1842
university or a community or junior college. No retiree whose 1843
retirement allowance is subject to an actuarial reduction, other 1844
than as a result of taking a partial lump-sum distribution or any 1845
other optional benefit under Section 25-11-115, may return to work 1846
under this paragraph (c). This paragraph (c) shall stand repealed 1847
on July 1, 2036. 1848
To determine the normal working days for a position under 1849
paragraph (a) of this subsection, the employer shall determine the 1850
required number of working days for the position on a full-time 1851
basis and the equivalent number of hours representing the 1852
full-time position. The retiree then may work up to one-half 1853
(1/2) of the required number of working days or up to one-half 1854
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(1/2) of the equivalent number of hours and receive up to one-half 1855
(1/2) of the salary for the position. In the case of employment 1856
with multiple employers, the limitation shall equal one-half (1/2) 1857
of the number of days or hours for a single full-time position. 1858
Notice shall be given in writing to the executive director, 1859
setting forth the facts upon which the employment is being made, 1860
and the notice shall be given within five (5) days from the date 1861
of employment and also from the date of termination of the 1862
employment. 1863
(5) Except as otherwise provided in subsection (6) of this 1864
section, the employer of any person who is receiving a retirement 1865
allowance and who is employed in service covered by subsection (4) 1866
of this section as an employee or a contractual employee shall pay 1867
to the board the full amount of the employer's contribution on the 1868
amount of compensation received by the retiree for his or her 1869
employment in accordance with regulations prescribed by the board; 1870
however, in the case of a person who is receiving a retirement 1871
allowance and who is employed in service covered by subsection 1872
(4)(c) of this section, the employer shall also pay to the board 1873
the full amount of the employee's contribution on the amount of 1874
compensation received by the retiree for his or her employment. 1875
The retiree shall not receive any additional creditable service in 1876
the retirement system as a result of the payment of the employer's 1877
contribution. This subsection does not apply to persons who are 1878
receiving a retirement allowance and who contract with an employer 1879
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to provide services as a true independent contractor, as defined 1880
by the board through regulation. 1881
(6) (a) A member may retire and continue in municipal or 1882
county elective office provided that the member has reached the 1883
age and/or service requirement that will not result in a 1884
prohibited in-service distribution as defined by the Internal 1885
Revenue Service, or a retiree may be elected to a municipal or 1886
county office, provided that the person: 1887
(i) Files annually, in writing, in the office of 1888
the employer and the office of the executive director of the 1889
system before the person takes office or as soon as possible after 1890
retirement, a waiver of all salary or compensation and elects to 1891
receive in lieu of that salary or compensation a retirement 1892
allowance as provided in this section, in which event no salary or 1893
compensation shall thereafter be due or payable for those 1894
services; however, any such officer or employee may receive, in 1895
addition to the retirement allowance, office expense allowance, 1896
mileage or travel expense authorized by any statute of the State 1897
of Mississippi; or 1898
(ii) Elects to receive compensation for that 1899
elective office in an amount not to exceed twenty-five percent 1900
(25%) of the retiree's average compensation. In order to receive 1901
compensation as allowed in this subparagraph, the retiree shall 1902
file annually, in writing, in the office of the employer and the 1903
office of the executive director of the system, an election to 1904
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receive, in addition to a retirement allowance, compensation as 1905
allowed in this subparagraph. 1906
(b) The municipality or county in which the retired 1907
person holds elective office shall pay to the board the amount of 1908
the employer's contributions on the full amount of the regular 1909
compensation for the elective office that the retired person 1910
holds. 1911
(c) As used in this subsection, the term "compensation" 1912
does not include office expense allowance, mileage or travel 1913
expense authorized by a statute of the State of Mississippi. 1914
(7) Any retired teacher who returns to work in accordance 1915
with this section shall not be eligible to return to work under 1916
the provisions of Section 25-11-126. 1917
SECTION 20. Section 25-11-126, Mississippi Code of 1972, is 1918
amended as follows: 1919
25-11-126. (1) Any person who has at least thirty (30) 1920
years of creditable service, who was employed as a public school 1921
teacher at the time of his or her retirement, has been retired at 1922
least * * * thirty (30) days and is receiving a retirement 1923
allowance, and holds a standard teaching license in Mississippi, 1924
may be employed as a teacher in a public school district after 1925
retirement, and choose to continue receiving the retirement 1926
allowance under this article during his or her employment as a 1927
teacher after retirement in addition to receiving the salary 1928
authorized under this section, along with the local contribution 1929
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of the school district in which the retiree is employed, at the 1930
discretion of the school district. Any teacher who has retired 1931
with at least twenty-five (25) years of creditable service as of 1932
July 1, 2024, may also participate in this program if the teacher 1933
otherwise qualifies under this section. 1934
(2) A retired teacher may only be hired to teach in a school 1935
district designated by the Department of Education as having 1936
critical shortages and/or critical subject-area shortages, and 1937
shall hold the related standard teaching license and/or 1938
endorsements to teach in the subject area. The base compensation 1939
authorized for returning retired teachers under Section 37-19-7 1940
shall not be graduated annually in the same manner as teachers who 1941
are employed by a school district under traditional employment 1942
guidelines, but shall remain static for the entirety of his or her 1943
eligible teaching period as a retired teacher. 1944
(3) (a) A retired teacher may be employed as a teacher, 1945
continue receiving his or her retirement allowance and be a 1946
contributing member of the system without accruing additional 1947
retirement benefits for a total of five (5) years, which may be 1948
performed consecutively or intermittently. This method is 1949
designed specifically to provide funding for the system to 1950
actuarially offset any pension liability created by this section. 1951
Each school district hiring retired teachers under the authority 1952
of this section, shall make a direct payment to PERS, which shall 1953
serve as pension liability participation assessment. The pension 1954
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liability participation assessment and the retired teacher's 1955
salary for returning to work shall be determined as follows: 1956
(i) A school district shall rely on the salary 1957
schedule in Section 37-19-7 in considering the salary for a 1958
retired teacher; provided, however, that the school district may 1959
allocate up to one hundred and twenty-five percent (125%) of the 1960
amount provided under the salary schedule comparable to the 1961
teacher's years of service and license type as salary and 1962
assessment under the program * * *; 1963
(ii) After determining the retired teacher's 1964
compensation, the school district may pay no more than fifty 1965
percent (50%) of the retired teacher's compensation as salary to 1966
the retired teacher; and 1967
(iii) The remaining fifty percent (50%) of the 1968
retired teacher's compensation as salary shall be paid by the 1969
school district to PERS as a pension liability participation 1970
assessment. 1971
(b) If a retired teacher, reemployed under the 1972
authority of this section, works in a school district for any 1973
portion of a scholastic year less than a full contractual term of 1974
traditional teachers, the time worked by the retired teacher shall 1975
constitute one (1) of the five (5) years of post retirement 1976
teaching eligibility. A retired teacher, under the authority of 1977
this section, shall be entitled to work in any applicable school 1978
district and shall not be obligated to remain in any one (1) 1979
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school district for the entirety of his or her post retirement 1980
teaching eligibility, but shall be cumulative in nature so as not 1981
to exceed five (5) years. The salary authorized under Section 1982
37-19-7 for retired teachers shall be prorated for any period 1983
worked by the retired teacher that is less than one (1) full 1984
academic year. 1985
(c) The State Department of Education shall transfer to 1986
the system the Mississippi Adequate Education Program funds of 1987
local school districts that on or after July 1, 2024, hire retired 1988
members as teachers under this section and other funds that 1989
otherwise would have been payable to the districts if the 1990
districts had not taken advantage of this section. The crediting 1991
of assets and financing shall follow the provisions of Section 1992
25-11-123. 1993
(d) Local educational agencies shall transfer to the 1994
system Mississippi Adequate Education Program funds of local 1995
school districts that on or after July 1, 2024, hire retired 1996
members as teachers under this section and other funds that 1997
otherwise would have been payable to the districts if the 1998
districts had not taken advantage of this section. The crediting 1999
of assets and financing must follow the provisions of Section 2000
25-11-123. 2001
(4) Under the authority of this section, school districts 2002
may employ retired teachers based on criteria established by the 2003
Department of Education for critical teacher shortage areas and 2004
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critical subject-matter areas. A school district that is not 2005
within a critical teacher shortage area may employ teachers for 2006
critical subject-matter areas. 2007
(5) A person may be hired under this section subject to the 2008
following conditions: 2009
(a) The retired member holds any teacher's professional 2010
license or certificate as may be required in Section 37-3-2, and 2011
holds the related standard teaching license and/or endorsements to 2012
teach in the applicable subject area; 2013
(b) The superintendent of the employing school district 2014
certifies in writing to the State Department of Education that the 2015
retired member has the requisite experience, training and 2016
expertise for the position to be filled; 2017
(c) The superintendent of the school district certifies 2018
or the principal of the school certifies that there was no 2019
preexisting arrangement for the person to be hired; 2020
(d) The person had a satisfactory performance review 2021
for the most recent period before retirement; and 2022
(e) The person is hired to teach in a critical 2023
subject-matter area or in a critical teacher shortage area. 2024
(6) The State Superintendent of Public Education shall 2025
report the persons who are employed under this section to the 2026
Executive Director of the Public Employees' Retirement System. 2027
(7) The Department of Education shall promulgate regulations 2028
that prescribe a salary schedule that reflects the provisions of 2029
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ST: Mississippi Work and Save Program; create;
revise certain PERS provisions.
this section. Each school district shall create a policy, 2030
approved by the local school board, related to the hiring of 2031
retired teachers and including, but not limited to, the hiring of 2032
full- and part-time retired teacher employees under this section 2033
and Section 25-11-127. 2034
(8) Any retired teacher who returns to work in accordance 2035
with this section shall not be eligible to return to work under 2036
the provisions of Section 25-11-127. 2037
SECTION 21. Sections 17 and 18 of this act shall take effect 2038
and be in force from and after March 1, 2026, and the remaining 2039
sections of this act shall take effect and be in force from and 2040
after July 1, 2026. 2041