Retirees; may be employed full time in critical need or shortage positions with PERS employer and draw full benefits.

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

By: Representative McMillan

HOUSE BILL NO. 946

AN ACT TO AMEND SECTION 25-11-127, MISSISSIPPI CODE OF 1972, 1
TO AUTHORIZE RETIRED MEMBERS OF THE PUBLIC EMPLOYEES' RETIREMENT 2
SYSTEM TO BE EMPLOYED IN A POSITION FOR WHICH THE EMPLOYER HAS A 3
CRITICAL NEED FOR OR SHORTAGE OF EMPLOYEES AND DRAW THE FULL 4
AMOUNT OF THE RETIREE'S RETIREMENT ALLOWANCE, DURING WHICH TIME 5
THE RETIREE MAY WORK THE FULL NUMBER OF NORMAL WORKING DAYS FOR 6
THE POSITION AND RECEIVE THE FULL AMOUNT OF THE SALARY IN EFFECT 7
FOR THE POSITION AT THE TIME OF EMPLOYMENT; TO PROVIDE THAT BEFORE 8
A RETIREE MAY BE EMPLOYED IN SUCH A POSITION, THE EMPLOYER MUST 9
PROVIDE SATISFACTORY EVIDENCE WITH QUANTIFIABLE NUMBERS TO THE 10
RETIREMENT SYSTEM OF THE EXISTENCE OF A CRITICAL NEED FOR OR 11
SHORTAGE OF EMPLOYEES IN THE EMPLOYER'S AGENCY, DEPARTMENT, 12
INSTITUTION OR POLITICAL SUBDIVISION, AND SATISFACTORY EVIDENCE 13
THAT THE EMPLOYEE HAS THE EDUCATION AND EXPERIENCE NECESSARY FOR 14
THE POSITION FOR WHICH THERE IS A CRITICAL NEED OR SHORTAGE AND IN 15
WHICH HE OR SHE WILL BE EMPLOYED; AND FOR RELATED PURPOSES. 16
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 17
SECTION 1. Section 25-11-127, Mississippi Code of 1972, is 18
amended as follows: 19
25-11-127. (1) (a) No person who is being paid a 20
retirement allowance or a pension after retirement under this 21
article shall be employed or paid for any service by the State of 22
Mississippi, including services as an employee, contract worker, 23
contractual employee or independent contractor, until the retired 24
person has been retired for not less than ninety (90) consecutive 25
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days from his or her effective date of retirement. After the 26
person has been retired for not less than ninety (90) consecutive 27
days from his or her effective date of retirement or such later 28
date as established by the board, he or she may be reemployed 29
while being paid a retirement allowance under the terms and 30
conditions provided in this section or in Section 25-11-126. 31
(b) No retiree of this retirement system who is 32
reemployed or is reelected to office after retirement shall 33
continue to draw retirement benefits while so reemployed, except 34
as provided in this section or in Section 25-11-126. 35
(c) No person employed or elected under the exceptions 36
provided for in this section shall become a member under Article 3 37
of the retirement system. 38
(2) Except as otherwise provided in Section 25-11-126, any 39
person who has been retired under the provisions of Article 3 and 40
who is later reemployed in service covered by this article shall 41
cease to receive benefits under this article and shall again 42
become a contributing member of the retirement system. When the 43
person retires again, if the reemployment exceeds six (6) months, 44
the person shall have his or her benefit recomputed, including 45
service after again becoming a member, provided that the total 46
retirement allowance paid to the retired member in his or her 47
previous retirement shall be deducted from the member's retirement 48
reserve and taken into consideration in recalculating the 49
retirement allowance under a new option selected. 50
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(3) The board shall have the right to prescribe rules and 51
regulations for carrying out the provisions of this section. 52
(4) The provisions of this section shall not be construed to 53
prohibit any retiree, regardless of age, from being employed and 54
drawing a retirement allowance either: 55
(a) For a period of time not to exceed one-half (1/2) 56
of the normal working days for the position in any fiscal year 57
during which the retiree will receive no more than one-half (1/2) 58
of the salary in effect for the position at the time of 59
employment, or 60
(b) For a period of time in any fiscal year sufficient 61
in length to permit a retiree to earn not in excess of twenty-five 62
percent (25%) of retiree's average compensation. 63
To determine the normal working days for a position under 64
paragraph (a) of this subsection, the employer shall determine the 65
required number of working days for the position on a full-time 66
basis and the equivalent number of hours representing the 67
full-time position. The retiree then may work up to one-half 68
(1/2) of the required number of working days or up to one-half 69
(1/2) of the equivalent number of hours and receive up to one-half 70
(1/2) of the salary for the position. In the case of employment 71
with multiple employers, the limitation shall equal one-half (1/2) 72
of the number of days or hours for a single full-time position. 73
Notice shall be given in writing to the executive director, 74
setting forth the facts upon which the employment is being made, 75
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and the notice shall be given within five (5) days from the date 76
of employment and also from the date of termination of the 77
employment. 78
(5) The provisions of this section shall not be construed to 79
prohibit a retiree, regardless of age, from being employed in a 80
position for which the employer has a critical need for or 81
shortage of employees and drawing the full amount of the retiree's 82
retirement allowance, during which time the retiree may work the 83
full number of normal working days for the position and receive 84
the full amount of the salary in effect for the position at the 85
time of employment, subject to the following conditions: Before a 86
retiree may be employed in a position under this subsection, the 87
employer must provide (a) satisfactory evidence with quantifiable 88
numbers to the Public Employees' Retirement System of the 89
existence of a critical need for or shortage of employees in the 90
employer's agency, department, institution or political 91
subdivision, and (b) satisfactory evidence that the employee has 92
the education and experience necessary for the position for which 93
there is a critical need or shortage and in which he or she will 94
be employed. A retired teacher who is eligible to return to work 95
as a teacher in accordance with Section 25-11-126 shall not be 96
eligible to return to work as a teacher under the provisions of 97
this subsection (5). 98
(6) Except as otherwise provided in subsection ( * * *7) of 99
this section, the employer of any person who is receiving a 100
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retirement allowance and who is employed in service covered by 101
subsection (4) or (5) of this section as an employee or a 102
contractual employee shall pay to the board the full amount of the 103
employer's contribution on the amount of compensation received by 104
the retiree for his or her employment in accordance with 105
regulations prescribed by the board. The retiree shall not 106
receive any additional creditable service in the retirement system 107
as a result of the payment of the employer's contribution. This 108
subsection does not apply to persons who are receiving a 109
retirement allowance and who contract with an employer to provide 110
services as a true independent contractor, as defined by the board 111
through regulation. 112
( * * *7) (a) A member may retire and continue in municipal 113
or county elective office provided that the member has reached the 114
age and/or service requirement that will not result in a 115
prohibited in-service distribution as defined by the Internal 116
Revenue Service, or a retiree may be elected to a municipal or 117
county office, provided that the person: 118
(i) Files annually, in writing, in the office of 119
the employer and the office of the executive director of the 120
system before the person takes office or as soon as possible after 121
retirement, a waiver of all salary or compensation and elects to 122
receive in lieu of that salary or compensation a retirement 123
allowance as provided in this section, in which event no salary or 124
compensation shall thereafter be due or payable for those 125
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ST: Retirees; may be employed full time in
critical need or shortage positions with PERS
employer and draw full benefits.
services; however, any such officer or employee may receive, in 126
addition to the retirement allowance, office expense allowance, 127
mileage or travel expense authorized by any statute of the State 128
of Mississippi; or 129
(ii) Elects to receive compensation for that 130
elective office in an amount not to exceed twenty-five percent 131
(25%) of the retiree's average compensation. In order to receive 132
compensation as allowed in this subparagraph, the retiree shall 133
file annually, in writing, in the office of the employer and the 134
office of the executive director of the system, an election to 135
receive, in addition to a retirement allowance, compensation as 136
allowed in this subparagraph. 137
(b) The municipality or county in which the retired 138
person holds elective office shall pay to the board the amount of 139
the employer's contributions on the full amount of the regular 140
compensation for the elective office that the retired person 141
holds. 142
(c) As used in this subsection, the term "compensation" 143
does not include office expense allowance, mileage or travel 144
expense authorized by a statute of the State of Mississippi. 145
( * * *8) Any retired teacher who returns to work in 146
accordance with this section shall not be eligible to return to 147
work under the provisions of Section 25-11-126. 148
SECTION 2. This act shall take effect and be in force from 149
and after July 1, 2026. 150