PERS; certain education majors shall be considered as if they are Tier 4 members if employed by a public school district after graduation.

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

By: Representative Steverson

HOUSE BILL NO. 831

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