PERS; reform Tier 5.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Brumfield

SENATE BILL NO. 2902

AN ACT TO AMEND SECTIONS 25-11-103, 25-11-105, 25-11-109, 1
25-11-111, 25-11-112, 25-11-113, 25-11-114, 25-11-115, 25-11-117, 2
25-11-119, 25-11-127 AND 25-11-147, MISSISSIPPI CODE OF 1972, TO 3
REFORM THE FIFTH TIER OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM 4
OF MISSISSIPPI; TO REDUCE THE VESTING PERIOD FROM EIGHT TO SIX 5
YEARS; TO REDUCE THE REQUIRED YEARS OF SERVICE FOR RETIRING 6
REGARDLESS OF AGE FROM 35 TO 30; TO ALLOW RETIREMENT WHEN THE SUM 7
OF A MEMBER'S AGE AND YEARS OF CREDITABLE SERVICE IS AT LEAST 80 8
YEARS; TO RAISE THE MULTIPLIER FOR THE DEFINED-BENEFIT PORTION OF 9
THE PLAN FROM 1% TO 1.25% FOR EACH YEAR OF SERVICE EXCEEDING 20 10
YEARS OF CREDITABLE SERVICE; TO PROVIDE FOR A COST-OF-LIVING 11
ADJUSTMENT (COLA) TIED TO THE CONSUMER PRICE INDEX FOR URBAN WAGE 12
EARNERS AND CLERICAL WORKERS (CPI-W) BUT CAPPED AT 1.5%; TO 13
PROVIDE THAT THERE SHALL BE NO COLA IF THE CPI-W FOR THE PAST 12 14
MONTHS IS ZERO OR LESS, OR IF THE UNFUNDED ACTUARIAL ACCRUED 15
LIABILITY OF THE SYSTEM IS GREATER THAN 15%; TO REQUIRE THE BOARD 16
TO CAUSE TO BE PUBLISHED ONLINE, ON AN ANNUAL BASIS, THE RESULTS 17
OF ACTUARIAL SURVEYS TO ENABLE LAWMAKERS AND THE PUBLIC TO MONITOR 18
THE FISCAL HEALTH OF THE SYSTEM; TO REQUIRE THE BOARD TO PROVIDE 19
ANNUAL RETIREMENT PLANNING SEMINARS FOR ALL MEMBERS OF THE SYSTEM; 20
TO PROVIDE FOR A DEFERRED RETIREMENT OPTION PLAN (DROP); TO 21
PROVIDE A MINIMUM EMPLOYER MATCH FOR THE DEFINED-CONTRIBUTION 22
PORTION OF 3%, OR A MINIMUM OF 5% FOR FIRST RESPONDERS; TO PROVIDE 23
AN ENHANCED MATCH OF AN ADDITIONAL 1% FOR EVERY ADDITIONAL FIVE 24
YEARS OF SERVICE AS A FIRST RESPONDER; TO PROVIDE THAT THE 25
EMPLOYER SHALL CONTRIBUTE $2,000.00 TO THE DEFINED CONTRIBUTION 26
ACCOUNT OF EVERY EMPLOYEE WHO HAS COMPLETED 10 YEARS OF MEMBERSHIP 27
SERVICE; TO ALLOW FIRST RESPONDERS WHO ARE VESTED TO BUY BACK UP 28
TO FIVE YEARS OF CREDITABLE SERVICE FOR SERVICE RENDERED BEFORE 29
MARCH 1, 2026; TO ALLOW A MEMBER TO RETIRE AT THE AGE OF 55 AFTER 30
20 YEARS OF SERVICE AS A FIRST RESPONDER, OR AFTER HAVING 31
COMPLETED AT LEAST 25 YEARS OF SERVICE AS A FIRST RESPONDER; TO 32
PROVIDE A MULTIPLIER FOR THE DEFINED-BENEFIT PORTION OF THE PLAN 33
OF 1.5% FOR FIRST RESPONDERS; TO PROVIDE A PARTIAL LUMP-SUM OPTION 34
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(PLSO); TO PROVIDE ENHANCED DISABILITY BENEFITS AND SURVIVOR 35
BENEFITS FOR FIRST RESPONDERS; TO BRING FORWARD SECTION 25-11-123, 36
MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; 37
AND FOR RELATED PURPOSES. 38
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 39
SECTION 1. Section 25-11-103, Mississippi Code of 1972, is 40
amended as follows: 41
25-11-103. (1) The following words and phrases as used in 42
Articles 1 and 3, unless a different meaning is plainly required 43
by the context, have the following meanings: 44
(a) "Accumulated contributions" means the sum of all 45
the amounts deducted from the compensation of a member and 46
credited to his or her individual account in the annuity savings 47
account, together with regular interest as provided in Section 48
25-11-123. 49
(b) "Actuarial cost" means the amount of funds 50
presently required to provide future benefits as determined by the 51
board based on applicable tables and formulas provided by the 52
actuary. 53
(c) "Actuarial equivalent" means a benefit of equal 54
value to the accumulated contributions, annuity or benefit, as the 55
case may be, when computed upon the basis of such mortality tables 56
as adopted by the board of trustees, and regular interest. 57
(d) "Actuarial tables" mean such tables of mortality 58
and rates of interest as adopted by the board in accordance with 59
the recommendation of the actuary. 60
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(e) "Agency" means any governmental body employing 61
persons in the state service. 62
(f) "Average compensation" means, for persons who 63
became members of the system before March 1, 2026, the average of 64
the four (4) highest years of earned compensation reported for an 65
employee in a fiscal or calendar year period, or combination 66
thereof that do not overlap, or the last forty-eight (48) 67
consecutive months of earned compensation reported for an 68
employee. The four (4) years need not be successive or joined 69
years of service. "Average compensation" means, for persons who 70
became members of the system on or after March 1, 2026, the 71
average of the * * * six (6) highest consecutive years of earned 72
compensation reported for an employee in a fiscal or calendar year 73
period, or of the last * * * seventy-two (72) consecutive months 74
of earned compensation reported for an employee, whichever is 75
greater. 76
In computing the average compensation for retirement, 77
disability or survivor benefits, any amount lawfully paid in a 78
lump sum for personal leave or major medical leave shall be 79
included in the calculation to the extent that the amount does not 80
exceed an amount that is equal to thirty (30) days of earned 81
compensation and to the extent that it does not cause the 82
employee's earned compensation to exceed the maximum reportable 83
amount specified in paragraph (k) of this subsection; however, 84
this thirty-day limitation shall not prevent the inclusion in the 85
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calculation of leave earned under federal regulations before July 86
1, 1976, and frozen as of that date as referred to in Section 87
25-3-99. In computing the average compensation, no amounts shall 88
be used that are in excess of the amount on which contributions 89
were required and paid, and no nontaxable amounts paid by the 90
employer for health or life insurance premiums for the employee 91
shall be used. If any member who is or has been granted any 92
increase in annual salary or compensation of more than eight 93
percent (8%) retires within twenty-four (24) months from the date 94
that the increase becomes effective, then the board shall exclude 95
that part of the increase in salary or compensation that exceeds 96
eight percent (8%) in calculating that member's average 97
compensation for retirement purposes. The board may enforce this 98
provision by rule or regulation. However, increases in 99
compensation in excess of eight percent (8%) per year granted 100
within twenty-four (24) months of the date of retirement may be 101
included in the calculation of average compensation if 102
satisfactory proof is presented to the board showing that the 103
increase in compensation was the result of an actual change in the 104
position held or services rendered, or that the compensation 105
increase was authorized by the State Personnel Board or was 106
increased as a result of statutory enactment, and the employer 107
furnishes an affidavit stating that the increase granted within 108
the last twenty-four (24) months was not contingent on a promise 109
or agreement of the employee to retire. Nothing in Section 110
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25-3-31 shall affect the calculation of the average compensation 111
of any member for the purposes of this article. The average 112
compensation of any member who retires before July 1, 1992, shall 113
not exceed the annual salary of the Governor. 114
(g) "Beneficiary" means any person entitled to receive 115
a retirement allowance, an annuity or other benefit as provided by 116
Articles 1 and 3. The term "beneficiary" may also include an 117
organization, estate, trust or entity; however, a beneficiary 118
designated or entitled to receive monthly payments under an 119
optional settlement based on life contingency or under a statutory 120
monthly benefit may only be a natural person. In the event of the 121
death before retirement of any member who became a member of the 122
system before July 1, 2007, and whose spouse and/or children are 123
not entitled to a retirement allowance on the basis that the 124
member has less than four (4) years of membership service credit, 125
or who became a member of the system on or after July 1, 2007, but 126
before March 1, 2026, and whose spouse and/or children are not 127
entitled to a retirement allowance on the basis that the member 128
has less than eight (8) years of membership service credit, or who 129
became a member of the system on or after March 1, 2026, and whose 130
spouse and/or children are not entitled to a retirement allowance 131
on the basis that the member has less than six (6) years of 132
membership service credit, and/or has not been married for a 133
minimum of one (1) year or the spouse has waived his or her 134
entitlement to a retirement allowance under Section 25-11-114, the 135
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lawful spouse of a member at the time of the death of the member 136
shall be the beneficiary of the member unless the member has 137
designated another beneficiary after the date of marriage in 138
writing, and filed that writing in the office of the executive 139
director of the board of trustees. No designation or change of 140
beneficiary shall be made in any other manner. 141
(h) "Board" means the board of trustees provided in 142
Section 25-11-15 to administer the retirement system created under 143
this article. 144
(i) "Creditable service" means "prior service," 145
"retroactive service" and all lawfully credited unused leave not 146
exceeding the accrual rates and limitations provided in Section 147
25-3-91 et seq., as of the date of withdrawal from service plus 148
"membership service" and other service for which credit is 149
allowable as provided in Section 25-11-109. Except to limit 150
creditable service reported to the system for the purpose of 151
computing an employee's retirement allowance or annuity or 152
benefits provided in this article, nothing in this paragraph shall 153
limit or otherwise restrict the power of the governing authority 154
of a municipality or other political subdivision of the state to 155
adopt such vacation and sick leave policies as it deems necessary. 156
(j) "Child" means either a natural child of the member, 157
a child that has been made a child of the member by applicable 158
court action before the death of the member, or a child under the 159
permanent care of the member at the time of the latter's death, 160
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which permanent care status shall be determined by evidence 161
satisfactory to the board. For purposes of this paragraph, a 162
natural child of the member is a child of the member that is 163
conceived before the death of the member. 164
(k) "Earned compensation" means the full amount earned 165
during a fiscal year by an employee not to exceed the employee 166
compensation limit set pursuant to Section 401(a)(17) of the 167
Internal Revenue Code for the calendar year in which the fiscal 168
year begins and proportionately for less than one (1) year of 169
service. Except as otherwise provided in this paragraph, the 170
value of maintenance furnished to an employee shall not be 171
included in earned compensation. Earned compensation shall not 172
include any amounts paid by the employer for health or life 173
insurance premiums for an employee. Earned compensation shall be 174
limited to the regular periodic compensation paid, exclusive of 175
litigation fees, bond fees, performance-based incentive payments, 176
and other similar extraordinary nonrecurring payments. In 177
addition, any member in a covered position, as defined by Public 178
Employees' Retirement System laws and regulations, who is also 179
employed by another covered agency or political subdivision shall 180
have the earnings of that additional employment reported to the 181
Public Employees' Retirement System regardless of whether the 182
additional employment is sufficient in itself to be a covered 183
position. In addition, computation of earned compensation shall 184
be governed by the following: 185
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(i) In the case of constables, the net earnings 186
from their office after deduction of expenses shall apply, except 187
that in no case shall earned compensation be less than the total 188
direct payments made by the state or governmental subdivisions to 189
the official. 190
(ii) In the case of chancery or circuit clerks, 191
the net earnings from their office after deduction of expenses 192
shall apply as expressed in Section 25-11-123(f)(4). 193
(iii) In the case of members of the State 194
Legislature, all remuneration or amounts paid, except mileage 195
allowance, shall apply. 196
(iv) The amount by which an eligible employee's 197
salary is reduced under a salary reduction agreement authorized 198
under Section 25-17-5 shall be included as earned compensation 199
under this paragraph, provided this inclusion does not conflict 200
with federal law, including federal regulations and federal 201
administrative interpretations under the federal law, pertaining 202
to the Federal Insurance Contributions Act or to Internal Revenue 203
Code Section 125 cafeteria plans. 204
(v) Compensation in addition to an employee's base 205
salary that is paid to the employee under the vacation and sick 206
leave policies of a municipality or other political subdivision of 207
the state that employs him or her that exceeds the maximums 208
authorized by Section 25-3-91 et seq. shall be excluded from the 209
calculation of earned compensation under this article. 210
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(vi) The maximum salary applicable for retirement 211
purposes before July 1, 1992, shall be the salary of the Governor. 212
(vii) Nothing in Section 25-3-31 shall affect the 213
determination of the earned compensation of any member for the 214
purposes of this article. 215
(viii) The value of maintenance furnished to an 216
employee before July 1, 2013, for which the proper amount of 217
employer and employee contributions have been paid, shall be 218
included in earned compensation. From and after July 1, 2013, the 219
value of maintenance furnished to an employee shall be reported as 220
earned compensation only if the proper amount of employer and 221
employee contributions have been paid on the maintenance and the 222
employee was receiving maintenance and having maintenance reported 223
to the system as of June 30, 2013. The value of maintenance when 224
not paid in money shall be fixed by the employing state agency, 225
and, in case of doubt, by the board of trustees as defined in 226
Section 25-11-15. 227
(ix) Except as otherwise provided in this 228
paragraph, the value of any in-kind benefits provided by the 229
employer shall not be included in earned compensation. As used in 230
this subparagraph, "in-kind benefits" shall include, but not be 231
limited to, group life insurance premiums, health or dental 232
insurance premiums, nonpaid major medical and personal leave, 233
employer contributions for social security and retirement, tuition 234
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reimbursement or educational funding, day care or transportation 235
benefits. 236
(l) "Employee" means any person legally occupying a 237
position in the state service, and shall include the employees of 238
the retirement system created under this article. 239
(m) "Employer" means the State of Mississippi or any of 240
its departments, agencies or subdivisions from which any employee 241
receives his or her compensation. 242
(n) "Executive director" means the secretary to the 243
board of trustees, as provided in Section 25-11-15(9), and the 244
administrator of the Public Employees' Retirement System and all 245
systems under the management of the board of trustees. Wherever 246
the term "Executive Secretary of the Public Employees' Retirement 247
System" or "executive secretary" appears in this article or in any 248
other provision of law, it shall be construed to mean the 249
Executive Director of the Public Employees' Retirement System. 250
(o) "Fiscal year" means the period beginning on July 1 251
of any year and ending on June 30 of the next succeeding year. 252
(p) "Medical board" means the board of physicians or 253
any governmental or nongovernmental disability determination 254
service designated by the board of trustees that is qualified to 255
make disability determinations as provided for in Section 256
25-11-119. 257
(q) "Member" means any person included in the 258
membership of the system as provided in Section 25-11-105. For 259
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purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 260
25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the 261
system withdrew from state service and received a refund of the 262
amount of the accumulated contributions to the credit of the 263
member in the annuity savings account before July 1, 2007, and the 264
person reenters state service and becomes a member of the system 265
again on or after July 1, 2007, and repays all or part of the 266
amount received as a refund and interest in order to receive 267
creditable service for service rendered before July 1, 2007, the 268
member shall be considered to have become a member of the system 269
on or after July 1, 2007, subject to the eight-year membership 270
service requirement, as applicable in those sections. For 271
purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 272
25-11-115, if a member of the system withdrew from state service 273
and received a refund of the amount of the accumulated 274
contributions to the credit of the member in the annuity savings 275
account before July 1, 2011, and the person reenters state service 276
and becomes a member of the system again on or after July 1, 2011, 277
and repays all or part of the amount received as a refund and 278
interest in order to receive creditable service for service 279
rendered before July 1, 2011, the member shall be considered to 280
have become a member of the system on or after July 1, 2011. If a 281
member of the system withdrew from state service and received a 282
refund of the amount of the accumulated contributions to the 283
credit of the member in the annuity savings account before March 284
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1, 2026, and the person reenters state service and becomes a 285
member of the system again on or after March 1, 2026, the member 286
shall be considered to have become a member of the system on or 287
after March 1, 2026, and may not receive creditable service for 288
service rendered before March 1, 2026; however, if such person 289
completes six (6) years of service as a first responder, beginning 290
on or after March 1, 2026, he or she may repay all or part of the 291
amount received as a refund and interest in order to receive up to 292
five (5) years of creditable service for service rendered before 293
March 1, 2026, as provided in Section 25-11-117(3)(c)(ii), and the 294
member shall be considered to have become a member of the system 295
on or after March 1, 2026. 296
(r) "Membership service" means service as an employee 297
in a covered position rendered while a contributing member of the 298
retirement system. 299
(s) "Position" means any office or any employment in 300
the state service, or two (2) or more of them, the duties of which 301
call for services to be rendered by one (1) person, including 302
positions jointly employed by federal and state agencies 303
administering federal and state funds. The employer shall 304
determine upon initial employment and during the course of 305
employment of an employee who does not meet the criteria for 306
coverage in the Public Employees' Retirement System based on the 307
position held, whether the employee is or becomes eligible for 308
coverage in the Public Employees' Retirement System based upon any 309
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other employment in a covered agency or political subdivision. If 310
or when the employee meets the eligibility criteria for coverage 311
in the other position, then the employer must withhold 312
contributions and report wages from the noncovered position in 313
accordance with the provisions for reporting of earned 314
compensation. Failure to deduct and report those contributions 315
shall not relieve the employee or employer of liability thereof. 316
The board shall adopt such rules and regulations as necessary to 317
implement and enforce this provision. 318
(t) "Prior service" means: 319
(i) For persons who became members of the system 320
before July 1, 2007, service rendered before February 1, 1953, for 321
which credit is allowable under Sections 25-11-105 and 25-11-109, 322
and which shall allow prior service for any person who is now or 323
becomes a member of the Public Employees' Retirement System and 324
who does contribute to the system for a minimum period of four (4) 325
years. 326
(ii) For persons who became members of the system 327
on or after July 1, 2007, but before March 1, 2026, service 328
rendered before February 1, 1953, for which credit is allowable 329
under Sections 25-11-105 and 25-11-109, and which shall allow 330
prior service for any person who is now or becomes a member of the 331
Public Employees' Retirement System and who does contribute to the 332
system for a minimum period of eight (8) years. 333
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(iii) For persons who became members of the system 334
on or after March 1, 2026, service rendered before February 1, 335
1953, for which credit is allowable under Sections 25-11-105 and 336
25-11-109, and which shall allow prior service for any person who 337
is now or becomes a member of the Public Employees' Retirement 338
System and who does contribute to the system for a minimum period 339
of six (6) years. 340
(u) "Regular interest" means interest compounded 341
annually at such a rate as determined by the board in accordance 342
with Section 25-11-121. 343
(v) "Retirement allowance" means an annuity for life as 344
provided in this article, payable each year in twelve (12) equal 345
monthly installments beginning as of the date fixed by the board. 346
The retirement allowance shall be calculated in accordance with 347
Section 25-11-111. However, any spouse who received a spouse 348
retirement benefit in accordance with Section 25-11-111(d) before 349
March 31, 1971, and those benefits were terminated because of 350
eligibility for a social security benefit, may again receive his 351
or her spouse retirement benefit from and after making application 352
with the board of trustees to reinstate the spouse retirement 353
benefit. 354
(w) "Retroactive service" means service rendered after 355
February 1, 1953, for which credit is allowable under Section 356
25-11-105(b) and Section 25-11-105(k). 357
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(x) "System" means the Public Employees' Retirement 358
System of Mississippi established and described in Section 359
25-11-101. 360
(y) "State" means the State of Mississippi or any 361
political subdivision thereof or instrumentality of the state. 362
(z) "State service" means all offices and positions of 363
trust or employment in the employ of the state, or any political 364
subdivision or instrumentality of the state, that elect to 365
participate as provided by Section 25-11-105(f), including the 366
position of elected or fee officials of the counties and their 367
deputies and employees performing public services or any 368
department, independent agency, board or commission thereof, and 369
also includes all offices and positions of trust or employment in 370
the employ of joint state and federal agencies administering state 371
and federal funds and service rendered by employees of the public 372
schools. Effective July 1, 1973, all nonprofessional public 373
school employees, such as bus drivers, janitors, maids, 374
maintenance workers and cafeteria employees, shall have the option 375
to become members in accordance with Section 25-11-105(b), and 376
shall be eligible to receive credit for services before July 1, 377
1973, provided that the contributions and interest are paid by the 378
employee in accordance with that section; in addition, the county 379
or municipal separate school district may pay the employer 380
contribution and pro rata share of interest of the retroactive 381
service from available funds. "State service" shall not include 382
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the President of the Mississippi Lottery Corporation and personnel 383
employed by the Mississippi Lottery Corporation. From and after 384
July 1, 1998, retroactive service credit shall be purchased at the 385
actuarial cost in accordance with Section 25-11-105(b). 386
(aa) "Withdrawal from service" or "termination from 387
service" means complete severance of employment in the state 388
service of any member by resignation, dismissal or discharge. 389
(bb) "First responder" means a law enforcement officer, 390
firefighter, emergency medical services provider, emergency 391
management personnel, or public safety telecommunicator. 392
(cc) "Law enforcement officer" means any of the 393
following persons who are authorized to carry a firearm while in 394
the performance of their official duties and who have met the 395
minimum educational and training standards established by the 396
Board on Law Enforcement Officer Standards and Training for 397
permanent, full-time law enforcement officers and have received a 398
certificate from that board: 399
(i) Municipal police officers and narcotics 400
agents, but not officers who are engaged only in administrative or 401
civil duties; 402
(ii) Sheriffs and deputy sheriffs, but not deputy 403
sheriffs who are engaged only in administrative or civil duties; 404
(iii) Constables; 405
(iv) Conservation officers of the Department of 406
Wildlife, Fisheries and Parks; 407
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(v) Enforcement officers of the Department of 408
Marine Resources; 409
(vi) Agents and inspectors of the Alcoholic 410
Beverage Control Division of the Department of Revenue; 411
(vii) Commercial transportation inspection station 412
employees, enforcement officers, field inspectors, railroad 413
inspectors and other inspectors of the Department of Public 414
Safety; 415
(viii) Capitol Police officers of the Department 416
of Public Safety; 417
(ix) State correctional facility guards and 418
enforcement officers of the Department of Corrections; 419
(x) Municipal or county jail officers, guards and 420
enforcement officers; and 421
(xi) Any other full-time officer or employee of 422
the state or any county, municipality or other political 423
subdivision of the state, not listed in subparagraphs (i) through 424
(x) of this paragraph, who is authorized to carry a firearm while 425
in the performance of his or her official duties and who has met 426
the minimum educational and training standards established by the 427
Board on Law Enforcement Officer Standards and Training for 428
permanent, full-time law enforcement officers and has received a 429
certificate from that board. However, the term "law enforcement 430
officer" does not include any person who is an active member of 431
the Mississippi Highway Safety Patrol Retirement System. 432
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(dd) "Firefighter" means a person who is trained for 433
the prevention and control of loss of life and property from fire 434
or other emergencies, who is assigned to firefighting activity and 435
is required to respond to alarms and perform emergency actions at 436
the location of a fire, hazardous materials or other emergency 437
incident, who is employed full time by the state or any county, 438
municipality or other political subdivision of the state, and who 439
has met the minimum educational and training standards established 440
by the Mississippi Fire Personnel Minimum Standards and 441
Certification Board for permanent, full-time firefighters and has 442
received a certificate from that board. 443
(ee) "Emergency medical services provider" means a 444
person who is certified by the State Department of Health as one 445
of the types of emergency medical services personnel under Section 446
41-59-1 et seq., and who is employed full time by the state or any 447
county, municipality or other political subdivision of the state. 448
This term also includes 911 dispatchers who are employed full time 449
by the state or any county, municipality or other political 450
subdivision of the state. 451
(ff) "Emergency management personnel" means any 452
full-time employee of the state, or any county, municipality, or 453
political subdivision of the state, whose primary duties involve 454
planning for, coordinating, or supporting emergency management 455
functions under the Mississippi Emergency Management Law, Section 456
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33-15-1 et seq., including preparedness response, recovery, 457
mitigation, and emergency operations center activities. 458
(gg) "Public safety telecommunicator" means any 459
full-time employee of the state, or any county, municipality, or 460
other political subdivision of the state, who is engaged in 461
receiving, processing, or dispatching requests for emergency 462
services for a public safety, fire, or emergency medical agency, 463
and who provides or relays emergency-related information by 464
telephone, radio, or other communication systems. 465
( * * *hh) The masculine pronoun, wherever used, 466
includes the feminine pronoun. 467
(2) For purposes of this article, the term "political 468
subdivision" shall have the meaning ascribed to such term in 469
Section 25-11-5 and shall also include public charter schools. 470
SECTION 2. Section 25-11-105, Mississippi Code of 1972, is 471
amended as follows: 472
25-11-105. I. THOSE WHO ARE ELIGIBLE FOR MEMBERSHIP 473
The membership of this retirement system shall be composed as 474
follows: 475
(a) (i) All persons who become employees in the state 476
service after January 31, 1953, and whose wages are subject to 477
payroll taxes and are lawfully reported on IRS Form W-2, except 478
those specifically excluded, or as to whom election is provided in 479
Articles 1 and 3, shall become members of the retirement system as 480
a condition of their employment. 481
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(ii) From and after July 1, 2002, any individual 482
who is employed by a governmental entity to perform professional 483
services shall become a member of the system if the individual is 484
paid regular periodic compensation for those services that is 485
subject to payroll taxes, is provided all other employee benefits 486
and meets the membership criteria established by the regulations 487
adopted by the board of trustees that apply to all other members 488
of the system; however, any active member employed in such a 489
position on July 1, 2002, will continue to be an active member for 490
as long as they are employed in any such position. 491
(b) All persons who become employees in the state 492
service after January 31, 1953, except those specifically excluded 493
or as to whom election is provided in Articles 1 and 3, unless 494
they file with the board before the lapse of sixty (60) days of 495
employment or sixty (60) days after the effective date of the 496
cited articles, whichever is later, on a form prescribed by the 497
board, a notice of election not to be covered by the membership of 498
the retirement system and a duly executed waiver of all present 499
and prospective benefits that would otherwise inure to them on 500
account of their participation in the system, shall become members 501
of the retirement system; however, no credit for prior service 502
will be granted to members who became members of the system before 503
July 1, 2007, until they have contributed to Article 3 of the 504
retirement system for a minimum period of at least four (4) years, 505
or to members who became members of the system on or after July 1, 506
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2007, but before March 1, 2026, until they have contributed to 507
Article 3 of the retirement system for a minimum period of at 508
least eight (8) years, or to members who became members of the 509
system on or after March 1, 2026, until they have contributed to 510
Article 3 of the retirement system for a minimum period of at 511
least six (6) years. Those members shall receive credit for 512
services performed before January 1, 1953, in employment now 513
covered by Article 3, but no credit shall be granted for 514
retroactive services between January 1, 1953, and the date of 515
their entry into the retirement system, unless the employee pays 516
into the retirement system both the employer's and the employee's 517
contributions on wages paid him during the period from January 31, 518
1953, to the date of his becoming a contributing member, together 519
with interest at the rate determined by the board of trustees. 520
Members reentering after withdrawal from service shall qualify for 521
prior service under the provisions of Section 25-11-117. From and 522
after July 1, 1998, upon eligibility as noted above, the member 523
may receive credit for such retroactive service provided: 524
(i) The member shall furnish proof satisfactory to 525
the board of trustees of certification of that service from the 526
covered employer where the services were performed; and 527
(ii) The member shall pay to the retirement system 528
on the date he or she is eligible for that credit or at any time 529
thereafter before the date of retirement the actuarial cost for 530
each year of that creditable service. The provisions of this 531
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subparagraph (ii) shall be subject to the limitations of Section 532
415 of the Internal Revenue Code and regulations promulgated under 533
Section 415. 534
Nothing contained in this paragraph (b) shall be construed to 535
limit the authority of the board to allow the correction of 536
reporting errors or omissions based on the payment of the employee 537
and employer contributions plus applicable interest. 538
(c) All persons who become employees in the state 539
service after January 31, 1953, and who are eligible for 540
membership in any other retirement system shall become members of 541
this retirement system as a condition of their employment, unless 542
they elect at the time of their employment to become a member of 543
that other system. 544
(d) All persons who are employees in the state service 545
on January 31, 1953, and who are members of any nonfunded 546
retirement system operated by the State of Mississippi, or any of 547
its departments or agencies, shall become members of this system 548
with prior service credit unless, before February 1, 1953, they 549
file a written notice with the board of trustees that they do not 550
elect to become members. 551
(e) All persons who are employees in the state service 552
on January 31, 1953, and who under existing laws are members of 553
any fund operated for the retirement of employees by the State of 554
Mississippi, or any of its departments or agencies, shall not be 555
entitled to membership in this retirement system unless, before 556
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February 1, 1953, any such person indicates by a notice filed with 557
the board, on a form prescribed by the board, his individual 558
election and choice to participate in this system, but no such 559
person shall receive prior service credit unless he becomes a 560
member on or before February 1, 1953. 561
(f) Each political subdivision of the state and each 562
instrumentality of the state or a political subdivision, or both, 563
is authorized to submit, for approval by the board of trustees, a 564
plan for extending the benefits of this article to employees of 565
any such political subdivision or instrumentality. Each such plan 566
or any amendment to the plan for extending benefits thereof shall 567
be approved by the board of trustees if it finds that the plan, or 568
the plan as amended, is in conformity with such requirements as 569
are provided in Articles 1 and 3; however, upon approval of the 570
plan or any such plan previously approved by the board of 571
trustees, the approved plan shall not be subject to cancellation 572
or termination by the political subdivision or instrumentality. 573
No such plan shall be approved unless: 574
(i) It provides that all services that constitute 575
employment as defined in Section 25-11-5 and are performed in the 576
employ of the political subdivision or instrumentality, by any 577
employees thereof, shall be covered by the plan, with the 578
exception of municipal employees who are already covered by 579
existing retirement plans; however, those employees in this class 580
may elect to come under the provisions of this article; 581
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(ii) It specifies the source or sources from which 582
the funds necessary to make the payments required by paragraph (d) 583
of Section 25-11-123 and of paragraph (f)(v)2 and 3 of this 584
section are expected to be derived and contains reasonable 585
assurance that those sources will be adequate for that purpose; 586
(iii) It provides for such methods of 587
administration of the plan by the political subdivision or 588
instrumentality as are found by the board of trustees to be 589
necessary for the proper and efficient administration thereof; 590
(iv) It provides that the political subdivision or 591
instrumentality will make such reports, in such form and 592
containing such information, as the board of trustees may from 593
time to time require; 594
(v) It authorizes the board of trustees to 595
terminate the plan in its entirety in the discretion of the board 596
if it finds that there has been a failure to comply substantially 597
with any provision contained in the plan, the termination to take 598
effect at the expiration of such notice and on such conditions as 599
may be provided by regulations of the board and as may be 600
consistent with applicable federal law. 601
1. The board of trustees shall not finally 602
refuse to approve a plan submitted under paragraph (f), and shall 603
not terminate an approved plan without reasonable notice and 604
opportunity for hearing to each political subdivision or 605
instrumentality affected by the board's decision. The board's 606
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decision in any such case shall be final, conclusive and binding 607
unless an appeal is taken by the political subdivision or 608
instrumentality aggrieved by the decision to the Circuit Court of 609
the First Judicial District of Hinds County, Mississippi, in 610
accordance with the provisions of law with respect to civil causes 611
by certiorari. 612
2. Each political subdivision or 613
instrumentality as to which a plan has been approved under this 614
section shall pay into the contribution fund, with respect to 615
wages (as defined in Section 25-11-5), at such time or times as 616
the board of trustees may by regulation prescribe, contributions 617
in the amounts and at the rates specified in the applicable 618
agreement entered into by the board. 619
3. Every political subdivision or 620
instrumentality required to make payments under paragraph (f)(v)2 621
of this section is authorized, in consideration of the employees' 622
retention in or entry upon employment after enactment of Articles 623
1 and 3, to impose upon its employees, as to services that are 624
covered by an approved plan, a contribution with respect to wages 625
(as defined in Section 25-11-5) not exceeding the amount provided 626
in Section 25-11-123(d) if those services constituted employment 627
within the meaning of Articles 1 and 3, and to deduct the amount 628
of the contribution from the wages as and when paid. 629
Contributions so collected shall be paid into the contribution 630
fund as partial discharge of the liability of the political 631
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subdivisions or instrumentalities under paragraph (f)(v)2 of this 632
section. Failure to deduct the contribution shall not relieve the 633
employee or employer of liability for the contribution. 634
4. Any state agency, school, political 635
subdivision, instrumentality or any employer that is required to 636
submit contribution payments or wage reports under any section of 637
this chapter shall be assessed interest on delinquent payments or 638
wage reports as determined by the board of trustees in accordance 639
with rules and regulations adopted by the board and delinquent 640
payments, assessed interest and any other amount certified by the 641
board as owed by an employer, may be recovered by action in a 642
court of competent jurisdiction against the reporting agency 643
liable therefor or may, upon due certification of delinquency and 644
at the request of the board of trustees, be deducted from any 645
other monies payable to the reporting agency by any department or 646
agency of the state. 647
5. Each political subdivision of the state 648
and each instrumentality of the state or a political subdivision 649
or subdivisions that submit a plan for approval of the board, as 650
provided in this section, shall reimburse the board for coverage 651
into the expense account, its pro rata share of the total expense 652
of administering Articles 1 and 3 as provided by regulations of 653
the board. 654
(g) The board may, in its discretion, deny the right of 655
membership in this system to any class of employees whose 656
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compensation is only partly paid by the state or who are occupying 657
positions on a part-time or intermittent basis. The board may, in 658
its discretion, make optional with employees in any such classes 659
their individual entrance into this system. 660
(h) An employee whose membership in this system is 661
contingent on his own election, and who elects not to become a 662
member, may thereafter apply for and be admitted to membership; 663
but no such employee shall receive prior service credit unless he 664
becomes a member before July 1, 1953, except as provided in 665
paragraph (b). 666
(i) If any member of this system changes his employment 667
to any agency of the state having an actuarially funded retirement 668
system, the board of trustees may authorize the transfer of the 669
member's creditable service and of the present value of the 670
member's employer's accumulation account and of the present value 671
of the member's accumulated membership contributions to that other 672
system, provided that the employee agrees to the transfer of his 673
accumulated membership contributions and provided that the other 674
system is authorized to receive and agrees to make the transfer. 675
If any member of any other actuarially funded system 676
maintained by an agency of the state changes his employment to an 677
agency covered by this system, the board of trustees may authorize 678
the receipt of the transfer of the member's creditable service and 679
of the present value of the member's employer's accumulation 680
account and of the present value of the member's accumulated 681
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membership contributions from the other system, provided that the 682
employee agrees to the transfer of his accumulated membership 683
contributions to this system and provided that the other system is 684
authorized and agrees to make the transfer. 685
(j) Wherever state employment is referred to in this 686
section, it includes joint employment by state and federal 687
agencies of all kinds. 688
(k) Employees of a political subdivision or 689
instrumentality who were employed by the political subdivision or 690
instrumentality before an agreement between the entity and the 691
Public Employees' Retirement System to extend the benefits of this 692
article to its employees, and which agreement provides for the 693
establishment of retroactive service credit, and who became 694
members of the retirement system before July 1, 2007, and have 695
remained contributors to the retirement system for four (4) years, 696
or who became members of the retirement system on or after July 1, 697
2007, but before March 1, 2026, and have remained contributors to 698
the retirement system for eight (8) years, or who became members 699
of the retirement system on or after March 1, 2026, and have 700
remained contributors to the retirement system for six (6) years, 701
may receive credit for that retroactive service with the political 702
subdivision or instrumentality, provided that the employee and/or 703
employer, as provided under the terms of the modification of the 704
joinder agreement in allowing that coverage, pay into the 705
retirement system the employer's and employee's contributions on 706
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wages paid the member during the previous employment, together 707
with interest or actuarial cost as determined by the board 708
covering the period from the date the service was rendered until 709
the payment for the credit for the service was made. Those wages 710
shall be verified by the Social Security Administration or 711
employer payroll records. Effective July 1, 1998, upon 712
eligibility as noted above, a member may receive credit for that 713
retroactive service with the political subdivision or 714
instrumentality provided: 715
(i) The member shall furnish proof satisfactory to 716
the board of trustees of certification of those services from the 717
political subdivision or instrumentality where the services were 718
rendered or verification by the Social Security Administration; 719
and 720
(ii) The member shall pay to the retirement system 721
on the date he or she is eligible for that credit or at any time 722
thereafter before the date of retirement the actuarial cost for 723
each year of that creditable service. The provisions of this 724
subparagraph (ii) shall be subject to the limitations of Section 725
415 of the Internal Revenue Code and regulations promulgated under 726
Section 415. 727
Nothing contained in this paragraph (k) shall be construed to 728
limit the authority of the board to allow the correction of 729
reporting errors or omissions based on the payment of employee and 730
employer contributions plus applicable interest. Payment for that 731
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time shall be made beginning with the most recent service. Upon 732
the payment of all or part of the required contributions, plus 733
interest or the actuarial cost as provided above, the member shall 734
receive credit for the period of creditable service for which full 735
payment has been made to the retirement system. 736
(l) Through June 30, 1998, any state service eligible 737
for retroactive service credit, no part of which has ever been 738
reported, and requiring the payment of employee and employer 739
contributions plus interest, or, from and after July 1, 1998, any 740
state service eligible for retroactive service credit, no part of 741
which has ever been reported to the retirement system, and 742
requiring the payment of the actuarial cost for that creditable 743
service, may, at the member's option, be purchased in quarterly 744
increments as provided above at the time that its purchase is 745
otherwise allowed. 746
(m) All rights to purchase retroactive service credit 747
or repay a refund as provided in Section 25-11-101 et seq. shall 748
terminate upon retirement. 749
II. THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP 750
The following classes of employees and officers shall not 751
become members of this retirement system, any other provisions of 752
Articles 1 and 3 to the contrary notwithstanding: 753
(a) Patient or inmate help in state charitable, penal 754
or correctional institutions; 755
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(b) Students of any state educational institution 756
employed by any agency of the state for temporary, part-time or 757
intermittent work; 758
(c) Participants of Comprehensive Employment and 759
Training Act of 1973 (CETA) being Public Law 93-203, who enroll on 760
or after July l, 1979; 761
(d) From and after July 1, 2002, individuals who are 762
employed by a governmental entity to perform professional service 763
on less than a full-time basis who do not meet the criteria 764
established in I(a)(ii) of this section. 765
III. TERMINATION OF MEMBERSHIP 766
Membership in this system shall cease by a member withdrawing 767
his accumulated contributions, or by a member withdrawing from 768
active service with a retirement allowance, or by a member's 769
death. 770
SECTION 3. Section 25-11-109, Mississippi Code of 1972, is 771
amended as follows: 772
25-11-109. (1) Under such rules and regulations as the 773
board of trustees shall adopt, each person who becomes a member of 774
this retirement system, as provided in Section 25-11-105, on or 775
before July 1, 1953, or who became a member of the system before 776
July 1, 2007, and contributes to the system for a minimum period 777
of four (4) years, or who became a member of the system on or 778
after July 1, 2007, but before March 1, 2026, and contributes to 779
the system for a minimum period of eight (8) years, or who became 780
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a member of the system on or after March 1, 2026, and contributes 781
to the system for a minimum period of six (6) years, shall receive 782
credit for all state service rendered before February 1, 1953. To 783
receive that credit, the member shall file a detailed statement of 784
all services as an employee rendered by him in the state service 785
before February 1, 1953. For any member who joined the system 786
after July 1, 1953, and before July 1, 2007, any creditable 787
service for which the member is not required to make contributions 788
shall not be credited to the member until the member has 789
contributed to the system for a minimum period of at least four 790
(4) years. For any member who joined the system on or after July 791
1, 2007, but before March 1, 2026, any creditable service for 792
which the member is not required to make contributions shall not 793
be credited to the member until the member has contributed to the 794
system for a minimum period of at least eight (8) years. For any 795
member who joined the system on or after March 1, 2026, any 796
creditable service for which the member is not required to make 797
contributions shall not be credited to the member until the member 798
has contributed to the system for a minimum period of at least six 799
(6) years. 800
(2) (a) (i) In the computation of creditable service for 801
service rendered before July 1, 2017, under the provisions of this 802
article, the total months of accumulative service during any 803
fiscal year shall be calculated in accordance with the schedule as 804
follows: ten (10) or more months of creditable service during any 805
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fiscal year shall constitute a year of creditable service; seven 806
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 807
year of creditable service; four (4) months to six (6) months 808
inclusive, one-half (1/2) year of creditable service; one (1) 809
month to three (3) months inclusive, one-quarter (1/4) of a year 810
of creditable service. 811
(ii) In the computation of creditable service 812
rendered on or after July 1, 2017, under the provisions of this 813
article, service credit shall be awarded in monthly increments in 814
a manner prescribed by regulations of the board. 815
(b) In no case shall credit be allowed for any period 816
of absence without compensation except for disability while in 817
receipt of a disability retirement allowance, nor shall less than 818
fifteen (15) days of service in any month, or service less than 819
the equivalent of one-half (1/2) of the normal working load for 820
the position and less than one-half (1/2) of the normal 821
compensation for the position in any month, constitute a month of 822
creditable service, nor shall more than one (1) year of service be 823
creditable for all services rendered in any one (1) fiscal year; 824
however, for a school employee, substantial completion of the 825
legal school term when and where the service was rendered shall 826
constitute a year of service credit. Any state or local elected 827
official shall be deemed a full-time employee for the purpose of 828
creditable service. However, an appointed or elected official 829
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compensated on a per diem basis only shall not be allowed 830
creditable service for terms of office. 831
(c) In the computation of any retirement allowance or 832
any annuity or benefits provided in this article, any fractional 833
period of service of less than one (1) year shall be taken into 834
account and a proportionate amount of such retirement allowance, 835
annuity or benefit shall be granted for any such fractional period 836
of service. 837
(d) (i) In the computation of unused leave for 838
creditable service authorized in Section 25-11-103, the following 839
shall govern for members who retire before July 1, 2017: 840
twenty-one (21) days of unused leave shall constitute one (1) 841
month of creditable service and in no case shall credit be allowed 842
for any period of unused leave of less than fifteen (15) days. 843
The number of months of unused leave shall determine the number of 844
quarters or years of creditable service in accordance with the 845
above schedule for membership and prior service. 846
(ii) In the computation of unused leave for 847
creditable service authorized in Section 25-11-103, the following 848
shall govern for members who retire on or after July 1, 2017: 849
creditable service for unused leave shall be calculated in monthly 850
increments in which one (1) month of service credit shall be 851
awarded for each twenty-one (21) days of unused leave, except that 852
the first fifteen (15) to fifty-seven (57) days of leave shall 853
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constitute three (3) months of service for those who became a 854
member of the system before July 1, 2017. 855
(iii) In order for the member to receive 856
creditable service for the number of days of unused leave under 857
this paragraph, the system must receive certification from the 858
governing authority. 859
(iv) For anyone who becomes a member of the system 860
on or after March 1, 2026, no service credit shall be awarded for 861
unused leave. 862
(e) For the purposes of this subsection, members of the 863
system who retire on or after July 1, 2010, shall receive credit 864
for one-half (1/2) day of leave for each full year of membership 865
service accrued after June 30, 2010. The amount of leave received 866
by a member under this paragraph shall be added to the lawfully 867
credited unused leave for which creditable service is provided 868
under Section 25-11-103(i). 869
(f) For the purpose of this subsection, for members of 870
the system who are elected officers and who retire on or after 871
July 1, 1987, the following shall govern: 872
(i) For service before July 1, 1984, the members 873
shall receive credit for leave (combined personal and major 874
medical) for service as an elected official before that date at 875
the rate of thirty (30) days per year. 876
(ii) For service on and after July 1, 1984, the 877
member shall receive credit for personal and major medical leave 878
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beginning July 1, 1984, at the rates authorized in Sections 879
25-3-93 and 25-3-95, computed as a full-time employee. 880
(iii) If a member is employed in a covered 881
nonelected position and a covered elected position simultaneously, 882
that member may not receive service credit for accumulated unused 883
leave for both positions at retirement for the period during which 884
the member was dually employed. During the period during which 885
the member is dually employed, the member shall only receive 886
credit for leave as provided for in this paragraph for an elected 887
official. 888
(iv) For any elected official who becomes a member 889
of the system on or after March 1, 2026, no service credit shall 890
be awarded for leave. 891
(3) Subject to the above restrictions and to such other 892
rules and regulations as the board may adopt, the board shall 893
verify, as soon as practicable after the filing of such statements 894
of service, the services therein claimed. 895
(4) Upon verification of the statement of prior service, the 896
board shall issue a prior service certificate certifying to each 897
member the length of prior service for which credit shall have 898
been allowed on the basis of his statement of service. So long as 899
membership continues, a prior service certificate shall be final 900
and conclusive for retirement purposes as to such service, 901
provided that any member may within five (5) years from the date 902
of issuance or modification of such certificate request the board 903
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of trustees to modify or correct his prior service certificate. 904
Any modification or correction authorized shall only apply 905
prospectively. 906
When membership ceases, such prior service certificates shall 907
become void. Should the employee again become a member, he shall 908
enter the system as an employee not entitled to prior service 909
credit except as provided in Sections 25-11-105(I), 25-11-113 and 910
25-11-117. 911
(5) Creditable service at retirement, on which the 912
retirement allowance of a member shall be based, shall consist of 913
the membership service rendered by him since he last became a 914
member, and also, if he has a prior service certificate that is in 915
full force and effect, the amount of the service certified on his 916
prior service certificate. 917
(6) Any member who served on active duty in the Armed Forces 918
of the United States, who served in the Commissioned Corps of the 919
United States Public Health Service before 1972 or who served in 920
maritime service during periods of hostility in World War II, 921
shall be entitled to creditable service at no cost for his service 922
on active duty in the Armed Forces, in the Commissioned Corps of 923
the United States Public Health Service before 1972 or in such 924
maritime service, provided he entered state service after his 925
discharge from the Armed Forces or entered state service after he 926
completed such maritime service. The maximum period for such 927
creditable service for all military service as defined in this 928
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subsection (6) shall not exceed four (4) years unless positive 929
proof can be furnished by such person that he was retained in the 930
Armed Forces during World War II or in maritime service during 931
World War II by causes beyond his control and without opportunity 932
of discharge. The member shall furnish proof satisfactory to the 933
board of trustees of certification of military service or maritime 934
service records showing dates of entrance into active duty service 935
and the date of discharge. From and after July 1, 1993, no 936
creditable service shall be granted for any military service or 937
maritime service to a member who qualifies for a retirement 938
allowance in another public retirement system administered by the 939
Board of Trustees of the Public Employees' Retirement System 940
based, in whole or in part, on such military or maritime service. 941
In no case shall the member receive creditable service if the 942
member received a dishonorable discharge from the Armed Forces of 943
the United States. 944
(7) (a) Any member of the Public Employees' Retirement 945
System whose membership service is interrupted as a result of 946
qualified military service within the meaning of Section 414(u)(5) 947
of the Internal Revenue Code, and who has received the maximum 948
service credit available under subsection (6) of this section, 949
shall receive creditable service for the period of qualified 950
military service that does not qualify as creditable service under 951
subsection (6) of this section upon reentering membership service 952
in an amount not to exceed five (5) years if: 953
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(i) The member pays the contributions he would 954
have made to the retirement system if he had remained in 955
membership service for the period of qualified military service 956
based upon his salary at the time his membership service was 957
interrupted; 958
(ii) The member returns to membership service 959
within ninety (90) days of the end of his qualified military 960
service; and 961
(iii) The employer at the time the member's 962
service was interrupted and to which employment the member returns 963
pays the contributions it would have made into the retirement 964
system for such period based on the member's salary at the time 965
the service was interrupted. 966
(b) The payments required to be made in paragraph 967
(a)(i) of this subsection may be made over a period beginning with 968
the date of return to membership service and not exceeding three 969
(3) times the member's qualified military service; however, in no 970
event shall such period exceed five (5) years. 971
(c) The member shall furnish proof satisfactory to the 972
board of trustees of certification of military service showing 973
dates of entrance into qualified service and the date of discharge 974
as well as proof that the member has returned to active employment 975
within the time specified. 976
(8) Any member of the Public Employees' Retirement System 977
who became a member of the system before July 1, 2007, and who has 978
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at least four (4) years of membership service credit, or who 979
became a member of the system on or after July 1, 2007, but before 980
March 1, 2026, and who has at least eight (8) years of membership 981
service credit, or who became a member of the system on or after 982
March 1, 2026, and who has at least six (6) years of membership 983
service credit as a first responder, shall be entitled to receive 984
a maximum of five (5) years' creditable service for service 985
rendered in another state as a public employee of such other 986
state, or a political subdivision, public education system or 987
other governmental instrumentality thereof, or service rendered as 988
a teacher in American overseas dependent schools conducted by the 989
Armed Forces of the United States for children of citizens of the 990
United States residing in areas outside the continental United 991
States, provided that: 992
(a) The member shall furnish proof satisfactory to the 993
board of trustees of certification of such services from the 994
state, public education system, political subdivision or 995
retirement system of the state where the services were performed 996
or the governing entity of the American overseas dependent school 997
where the services were performed; * * * 998
(b) The member is not receiving or will not be entitled 999
to receive from the public retirement system of the other state or 1000
from any other retirement plan, including optional retirement 1001
plans, sponsored by the employer, a retirement allowance including 1002
such services; * * * 1003
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(c) The member shall pay to the retirement system on 1004
the date he or she is eligible for credit for such out-of-state 1005
service or at any time thereafter before the date of retirement 1006
the actuarial cost as determined by the actuary for each year of 1007
out-of-state creditable service. The provisions of this 1008
subsection are subject to the limitations of Section 415 of the 1009
Internal Revenue Code and regulations promulgated under that 1010
section * * *; and 1011
(d) A member who became a member of the system on or 1012
after March 1, 2026, and who has at least six (6) years of 1013
membership service credit as a first responder may receive no more 1014
than five (5) years of service credit in the aggregate under this 1015
subsection (8), subsections (9) and (10) of this section, and 1016
Section 25-11-117(3)(c)(ii). 1017
(9) Any member of the Public Employees' Retirement System 1018
who became a member of the system before July 1, 2007, and has at 1019
least four (4) years of membership service credit, or who became a 1020
member of the system on or after July 1, 2007, but before March 1, 1021
2026, and has at least eight (8) years of membership service 1022
credit, or who became a member of the system on or after March 1, 1023
2026, and has at least six (6) years of membership service credit 1024
as a first responder, and who receives, or has received, 1025
professional leave without compensation for professional purposes 1026
directly related to the employment in state service shall receive 1027
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creditable service for the period of professional leave without 1028
compensation provided: 1029
(a) The professional leave is performed with a public 1030
institution or public agency of this state, or another state or 1031
federal agency; 1032
(b) The employer approves the professional leave 1033
showing the reason for granting the leave and makes a 1034
determination that the professional leave will benefit the 1035
employee and employer; 1036
(c) Such professional leave shall not exceed two (2) 1037
years during any ten-year period of state service; 1038
(d) The employee shall serve the employer on a 1039
full-time basis for a period of time equivalent to the 1040
professional leave period granted immediately following the 1041
termination of the leave period; 1042
(e) The contributing member shall pay to the retirement 1043
system the actuarial cost as determined by the actuary for each 1044
year of professional leave. The provisions of this subsection are 1045
subject to the regulations of the Internal Revenue Code 1046
limitations; and 1047
(f) A member who became a member of the system on or 1048
after March 1, 2026, and who has at least six (6) years of 1049
membership service credit as a first responder may receive no more 1050
than five (5) years of service credit in the aggregate under this 1051
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subsection (9), subsections (8) and (10) of this section, and 1052
Section 25-11-117(3)(c)(ii). 1053
( * * *g) Such other rules and regulations consistent 1054
herewith as the board may adopt and in case of question, the board 1055
shall have final power to decide the questions. 1056
Any actively contributing member participating in the School 1057
Administrator Sabbatical Program established in Section 37-9-77 1058
shall qualify for continued participation under this subsection 1059
(9). 1060
(10) Any member of the Public Employees' Retirement System 1061
who became a member of the system before July 1, 2007, and has at 1062
least four (4) years of credited membership service, or who became 1063
a member of the system on or after July 1, 2007, but before March 1064
1, 2026, and has at least eight (8) years of credited membership 1065
service, or who became a member of the system on or after March 1, 1066
2026, and has at least six (6) years of credited membership 1067
service, shall be entitled to receive a maximum of ten (10) years 1068
creditable service for: 1069
(a) Any service rendered as an employee of any 1070
political subdivision of this state, or any instrumentality 1071
thereof, that does not participate in the Public Employees' 1072
Retirement System; or 1073
(b) Any service rendered as an employee of any 1074
political subdivision of this state, or any instrumentality 1075
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thereof, that participates in the Public Employees' Retirement 1076
System but did not elect retroactive coverage; or 1077
(c) Any service rendered as an employee of any 1078
political subdivision of this state, or any instrumentality 1079
thereof, for which coverage of the employee's position was or is 1080
excluded; provided that the member pays into the retirement system 1081
the actuarial cost as determined by the actuary for each year, or 1082
portion thereof, of such service. After a member has made full 1083
payment to the retirement system for all or any part of such 1084
service, the member shall receive creditable service for the 1085
period of such service for which full payment has been made to the 1086
retirement system. 1087
A member who became a member of the system on or after March 1088
1, 2026, and who has at least six (6) years of membership service 1089
credit as a first responder may receive no more than five (5) 1090
years of service credit in the aggregate under this subsection 1091
(10), subsections (8) and (9) of this section, and Section 1092
25-11-117(3)(c)(ii). 1093
SECTION 4. Section 25-11-111, Mississippi Code of 1972, is 1094
amended as follows: 1095
25-11-111. (a) (1) Any member who became a member of the 1096
system before July 1, 2007, upon withdrawal from service upon or 1097
after attainment of the age of sixty (60) years who has completed 1098
at least four (4) years of membership service, or any member who 1099
became a member of the system before July 1, 2011, upon withdrawal 1100
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from service regardless of age who has completed at least 1101
twenty-five (25) years of creditable service, shall be entitled to 1102
receive a retirement allowance, which shall begin on the first of 1103
the month following the date the member's application for the 1104
allowance is received by the board, but in no event before 1105
withdrawal from service. 1106
(2) Any member who became a member of the system on or 1107
after July 1, 2007, but before March 1, 2026, upon withdrawal from 1108
service upon or after attainment of the age of sixty (60) years 1109
who has completed at least eight (8) years of membership service, 1110
or any member who became a member of the system on or after July 1111
1, 2011, but before March 1, 2026, upon withdrawal from service 1112
regardless of age who has completed at least thirty (30) years of 1113
creditable service, shall be entitled to receive a retirement 1114
allowance, which shall begin on the first of the month following 1115
the date the member's application for the allowance is received by 1116
the board, but in no event before withdrawal from service. 1117
(3) Any member who became a member of the system on or 1118
after March 1, 2026, upon withdrawal from service upon or after 1119
attainment of the age of sixty-two (62) years who has completed at 1120
least * * * six (6) years of membership service, or upon 1121
withdrawal from service regardless of age who has completed at 1122
least * * * thirty (30) years of creditable service, or upon 1123
withdrawal from service when the sum of the member's age and years 1124
of creditable service is at least eighty (80) years, or upon 1125
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withdrawal from service upon or after attainment of the age of 1126
fifty-five (55) years who has completed at least twenty (20) years 1127
of membership service as a first responder, or upon withdrawal 1128
from service regardless of age who has completed at least 1129
twenty-five (25) years of membership service as a first responder, 1130
shall be entitled to receive a retirement allowance, which shall 1131
begin on the first of the month following the date the member's 1132
application for the allowance is received by the board, but in no 1133
event before withdrawal from service. 1134
(b) (1) Any member who became a member of the system before 1135
July 1, 2007, whose withdrawal from service occurs before 1136
attaining the age of sixty (60) years who has completed four (4) 1137
or more years of membership service and has not received a refund 1138
of his accumulated contributions, shall be entitled to receive a 1139
retirement allowance, beginning upon his attaining the age of 1140
sixty (60) years, of the amount earned and accrued at the date of 1141
withdrawal from service. The retirement allowance shall begin on 1142
the first of the month following the date the member's application 1143
for the allowance is received by the board, but in no event before 1144
withdrawal from service. 1145
(2) Any member who became a member of the system on or 1146
after July 1, 2007, but before March 1, 2026, whose withdrawal 1147
from service occurs before attaining the age of sixty (60) years 1148
who has completed eight (8) or more years of membership service 1149
and has not received a refund of his accumulated contributions, 1150
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shall be entitled to receive a retirement allowance, beginning 1151
upon his attaining the age of sixty (60) years, of the amount 1152
earned and accrued at the date of withdrawal from service. The 1153
retirement allowance shall begin on the first of the month 1154
following the date the member's application for the allowance is 1155
received by the board, but in no event before withdrawal from 1156
service. 1157
(3) Any member who became a member of the system on or 1158
after March 1, 2026, whose withdrawal from service occurs before 1159
attaining the age of sixty-two (62) years who has completed * * * 1160
six (6) or more years of membership service and has not received a 1161
refund of his accumulated contributions, shall be entitled to 1162
receive a retirement allowance, beginning upon his attaining the 1163
age of sixty-two (62) years, of the amount earned and accrued at 1164
the date of withdrawal from service. The retirement allowance 1165
shall begin on the first of the month following the date the 1166
member's application for the allowance is received by the board, 1167
but in no event before withdrawal from service. 1168
(c) Any member in service who has qualified for retirement 1169
benefits may select any optional method of settlement of 1170
retirement benefits by notifying the Executive Director of the 1171
Board of Trustees of the Public Employees' Retirement System in 1172
writing, on a form prescribed by the board, of the option he has 1173
selected and by naming the beneficiary of the option and 1174
furnishing necessary proof of age. The option, once selected, may 1175
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be changed at any time before actual retirement or death, but upon 1176
the death or retirement of the member, the optional settlement 1177
shall be placed in effect upon proper notification to the 1178
executive director. 1179
(d) Any member who became a member of the system before July 1180
1, 2011, shall be entitled to an annual retirement allowance which 1181
shall consist of: 1182
(1) A member's annuity, which shall be the actuarial 1183
equivalent of the accumulated contributions of the member at the 1184
time of retirement computed according to the actuarial table in 1185
use by the system; and 1186
(2) An employer's annuity, which, together with the 1187
member's annuity provided above, shall be equal to two percent 1188
(2%) of the average compensation for each year of service up to 1189
and including twenty-five (25) years of creditable service, and 1190
two and one-half percent (2-1/2%) of the average compensation for 1191
each year of service exceeding twenty-five (25) years of 1192
creditable service. 1193
(3) Any retired member or beneficiary thereof who was 1194
eligible to receive a retirement allowance before July 1, 1991, 1195
and who is still receiving a retirement allowance on July 1, 1992, 1196
shall receive an increase in the annual retirement allowance of 1197
the retired member equal to one-eighth of one percent (1/8 of 1%) 1198
of the average compensation for each year of state service in 1199
excess of twenty-five (25) years of membership service up to and 1200
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including thirty (30) years. The maximum increase shall be 1201
five-eighths of one percent (5/8 of 1%). In no case shall a 1202
member who has been retired before July 1, 1987, receive less than 1203
Ten Dollars ($10.00) per month for each year of creditable service 1204
and proportionately for each quarter year thereof. Persons 1205
retired on or after July 1, 1987, shall receive at least Ten 1206
Dollars ($10.00) per month for each year of service and 1207
proportionately for each quarter year thereof reduced for the 1208
option selected. However, such Ten Dollars ($10.00) minimum per 1209
month for each year of creditable service shall not apply to a 1210
retirement allowance computed under Section 25-11-114 based on a 1211
percentage of the member's average compensation. 1212
(e) Any member who became a member of the system on or after 1213
July 1, 2011, but before March 1, 2026, shall be entitled to an 1214
annual retirement allowance which shall consist of: 1215
(1) A member's annuity, which shall be the actuarial 1216
equivalent of the accumulated contributions of the member at the 1217
time of retirement computed according to the actuarial table in 1218
use by the system; and 1219
(2) An employer's annuity, which, together with the 1220
member's annuity provided above, shall be equal to two percent 1221
(2%) of the average compensation for each year of service up to 1222
and including thirty (30) years of creditable service, and two and 1223
one-half percent (2-1/2%) of average compensation for each year of 1224
service exceeding thirty (30) years of creditable service. 1225
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(f) Any member who became a member of the system on or after 1226
July 1, 2011, but before March 1, 2026, upon withdrawal from 1227
service upon or after attaining the age of sixty (60) years who 1228
has completed at least eight (8) years of membership service, or 1229
any such member upon withdrawal from service regardless of age who 1230
has completed at least thirty (30) years of creditable service, 1231
shall be entitled to receive a retirement allowance computed in 1232
accordance with the formula set forth in subsection (e) of this 1233
section. In the case of the retirement of any member who has 1234
attained age sixty (60) but who has not completed at least thirty 1235
(30) years of creditable service, the retirement allowance shall 1236
be computed in accordance with the formula set forth in subsection 1237
(e) of this section except that the total annual retirement 1238
allowance shall be reduced by an actuarial equivalent factor for 1239
each year of creditable service below thirty (30) years or the 1240
number of years in age that the member is below age sixty-five 1241
(65), whichever is less. 1242
(g) Any member who became a member of the system on or after 1243
March 1, 2026, upon withdrawal from service upon or after 1244
attainment of the age of sixty-five (65) years who has completed 1245
at least * * * six (6) years of membership service, * * * or upon 1246
withdrawal from service regardless of age who has completed at 1247
least * * * thirty (30) years of creditable service, or upon 1248
withdrawal from service when the sum of the member's age and years 1249
of creditable service is at least eighty (80) years, or upon 1250
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withdrawal from service upon or after attainment of the age of 1251
fifty-five (55) years who has completed at least twenty (20) years 1252
of membership service as a first responder, or upon withdrawal 1253
from service regardless of age who has completed at least 1254
twenty-five (25) years of membership service as a first responder, 1255
shall be entitled to an annual retirement allowance which shall 1256
consist of a member's annuity, which annuity shall be, for first 1257
responders, equal to one and one-half percent (1.5%) of the 1258
average compensation for each year of service, and for all other 1259
members, equal to one percent (1%) of the average compensation for 1260
each year of service up to and including twenty (20) years of 1261
creditable service, and one and one-quarter percent (1.25%) of the 1262
average compensation for each year of service exceeding twenty 1263
(20) years of creditable service. In the case of the retirement 1264
of any member who has attained the age of sixty-two (62) but has 1265
not completed at least thirty (30) years of creditable service, 1266
other than a member who has completed at least six (6) years of 1267
membership service as a first responder, the total annual 1268
retirement allowance specified in this subsection (g) shall be 1269
reduced by an actuarial equivalent factor for each year of 1270
creditable service below thirty (30) years or the number of years 1271
in age that the member is below age sixty-five (65), whichever is 1272
less. 1273
(h) No member, except members excluded by the Age 1274
Discrimination in Employment Act Amendments of 1986 (Public Law 1275
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99-592), under either Article 1 or Article 3 in state service 1276
shall be required to retire because of age. 1277
(i) No payment on account of any benefit granted under the 1278
provisions of this section shall become effective or begin to 1279
accrue until January 1, 1953. 1280
(j) (1) A retiree or beneficiary may, on a form prescribed 1281
by and filed with the retirement system, irrevocably waive all or 1282
a portion of any benefits from the retirement system to which the 1283
retiree or beneficiary is entitled. The waiver shall be binding 1284
on the heirs and assigns of any retiree or beneficiary and the 1285
same must agree to forever hold harmless the Public Employees' 1286
Retirement System of Mississippi from any claim to the waived 1287
retirement benefits. 1288
(2) Any waiver under this subsection shall apply only 1289
to the person executing the waiver. A beneficiary shall be 1290
entitled to benefits according to the option selected by the 1291
member at the time of retirement. However, a beneficiary may, at 1292
the option of the beneficiary, execute a waiver of benefits under 1293
this subsection. 1294
(3) The retirement system shall retain in the annuity 1295
reserve account amounts that are not used to pay benefits because 1296
of a waiver executed under this subsection. 1297
(4) The board of trustees may provide rules and 1298
regulations for the administration of waivers under this 1299
subsection. 1300
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SECTION 5. Section 25-11-112, Mississippi Code of 1972, is 1301
amended as follows: 1302
25-11-112. (1) Any member who became a member of the system 1303
before March 1, 2026, and is receiving a retirement allowance for 1304
service or disability retirement, or any beneficiary thereof, who 1305
has received a monthly benefit for at least one (1) full fiscal 1306
year, shall be eligible to receive an additional benefit, on 1307
December 1 or July 1 of the year as provided in subsection (3) of 1308
this section, equal to an amount calculated under paragraph 1309
(a) * * *, (b) or (c) below: 1310
(a) For any member who became a member of the system 1311
before July 1, 2011, the sum of: 1312
(i) An amount equal to three percent (3%) of the 1313
annual retirement allowance multiplied by the number of full 1314
fiscal years in retirement before the end of the fiscal year in 1315
which the member reaches age fifty-five (55), plus 1316
(ii) An additional amount equal to three percent 1317
(3%) compounded by the number of full fiscal years in retirement 1318
beginning with the fiscal year in which the member reaches age 1319
fifty-five (55), multiplied by the amount of the annual retirement 1320
allowance. 1321
(b) For any member who became a member of the system on 1322
or after July 1, 2011, but before March 1, 2026, the sum of: 1323
(i) An amount equal to three percent (3%) of the 1324
annual retirement allowance multiplied by the number of full 1325
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fiscal years in retirement before the end of the fiscal year in 1326
which the member reaches age sixty (60), plus 1327
(ii) An additional amount equal to three percent 1328
(3%) compounded by the number of full fiscal years in retirement 1329
beginning with the fiscal year in which the member reaches age 1330
sixty (60), multiplied by the amount of the annual retirement 1331
allowance. 1332
(c) For any member who became a member of the system on 1333
or after March 1, 2026, the sum of: 1334
(i) An amount equal to a certain percent of the 1335
annual retirement allowance, as specified in the last part of this 1336
paragraph (c), multiplied by the number of full fiscal years in 1337
retirement before the end of the fiscal year in which the member 1338
reaches age sixty-two (62), plus 1339
(ii) An additional amount equal to a certain 1340
percent of the annual retirement allowance, as specified in the 1341
last part of this paragraph (c), compounded by the number of full 1342
fiscal years in retirement beginning with the fiscal year in which 1343
the member reaches age sixty-two (62), multiplied by the amount of 1344
the annual retirement allowance. 1345
The percentage of the annual retirement allowance that shall 1346
be used in the calculations made in subparagraphs (i) and (ii) of 1347
this paragraph (c) shall be the average Consumer Price Index for 1348
Urban Wage Earners and Clerical Workers (CPI-W) for the 1349
twelve-month period ending with the preceding June, but shall not 1350
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exceed one and one-half percent (1.5%). If the CPI-W is zero or 1351
less, there will no additional benefit paid from the assets of the 1352
system. In addition, in any year in which an independent actuary 1353
hired by the system makes a written determination that the 1354
unfunded actuarial accrued liability of the system is greater than 1355
fifteen percent (15%), there will be no additional benefit paid 1356
from the assets of the system. 1357
(2) The calculation of the beneficiary's additional benefit 1358
under subsection (1)(a) * * *, (b) or (c) of this section shall be 1359
based on the member's age and full fiscal years in retirement as 1360
if the member had lived. 1361
(3) (a) The additional benefit provided for under this 1362
section shall be paid in one (1) payment in December of each year 1363
to those persons who are receiving a retirement allowance on 1364
December 1 of that year, unless an election is made under this 1365
subsection. However, if a retiree who is receiving a retirement 1366
allowance that will terminate upon the retiree's death is 1367
receiving the additional benefit in one (1) payment and dies on or 1368
after July 1 but before December 1, the beneficiary designated on 1369
the retirement application, if any, shall receive in a single 1370
payment a fractional part of the additional benefit based on the 1371
number of months in which a retirement allowance was received 1372
during the fiscal year. Likewise, if a retiree is receiving a 1373
retirement allowance that will terminate upon his or her death in 1374
two (2) to six (6) monthly installments, any remaining payments of 1375
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the additional benefit will be paid in a lump sum to the 1376
beneficiary designated on the application, or if none, pursuant to 1377
Section 25-11-117.1(1). Any similar remaining payments of 1378
additional benefits payable under this section to a deceased 1379
beneficiary who was receiving a monthly benefit shall be payable 1380
in accordance with the provisions of Section 25-11-117.1(2). If 1381
the additional monthly benefit is being received in one (1) 1382
payment, the additional benefit shall also be prorated based on 1383
the number of months in which a retirement allowance was received 1384
during the fiscal year when (i) the monthly benefit payable to a 1385
beneficiary terminates due to the expiration of an option, 1386
remarriage or cessation of dependent status or due to the 1387
retiree's return to covered employment, and (ii) the monthly 1388
benefit terminates on or after July 1 and before December 1. The 1389
board may, in its discretion, allow a retired member or a 1390
beneficiary thereof who is receiving the additional annual payment 1391
in the manner provided for in this paragraph to change the manner 1392
in which the additional annual payment is received to that 1393
provided for in paragraph (b) of this subsection if the retired 1394
member or beneficiary submits satisfactory documentation that the 1395
continued receipt of the additional annual payment as provided for 1396
in this paragraph will cause a financial hardship to the retired 1397
member or beneficiary. 1398
(b) Retired members or beneficiaries thereof who on 1399
July 1, 1999, or July 1 of any fiscal year thereafter, are 1400
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receiving a retirement allowance, may elect by an irrevocable 1401
agreement in writing filed in the Office of the Public Employees' 1402
Retirement System no less than thirty (30) days before July 1 of 1403
the appropriate year, to begin receiving the additional benefit 1404
provided for under this section in twelve (12) equal monthly 1405
installments beginning July 1, 1999, or July 1 of any fiscal year 1406
thereafter. This irrevocable agreement shall be binding on the 1407
member and subsequent beneficiaries. Payment of those monthly 1408
installments shall not extend beyond the month in which a 1409
retirement allowance is due and payable. The board may, in its 1410
discretion, allow a retired member or a beneficiary thereof who is 1411
receiving the additional annual payment in the manner provided for 1412
in this paragraph to change the manner in which the additional 1413
annual payment is received to that provided for in paragraph (a) 1414
of this subsection if the retired member or beneficiary submits 1415
satisfactory documentation that the continued receipt of the 1416
additional annual payment as provided for in this paragraph will 1417
cause a financial hardship to the retired member or beneficiary. 1418
(4) The additional payment or payments provided for under 1419
this section are for the fiscal year in which they are paid. 1420
(5) (a) The amount provided for under subsection (1) 1421
(a)(ii) of this section is calculated using the following formula: 1422
[(1.03)n - 1] x [annual retirement allowance], 1423
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where n is the number of full fiscal years in retirement beginning 1424
with the fiscal year in which the member reaches age fifty-five 1425
(55). 1426
(b) The amount provided for under subsection (1)(b)(ii) 1427
of this section is calculated using the following formula: 1428
[(1.03)n - 1] x [annual retirement allowance], 1429
where n is the number of full fiscal years in retirement beginning 1430
with the fiscal year in which the member reaches age sixty (60). 1431
(c) The amount provided for under subsection (1)(c)(ii) 1432
of this section is calculated using the following formula: 1433
[(1 + CPI-W)n - 1] x [annual retirement allowance], 1434
where "CPI-W" means the average Consumer Price Index for Urban 1435
Wage Earners and Clerical Workers for the twelve-month period 1436
ending with the preceding June, and n is the number of full fiscal 1437
years in retirement beginning with the fiscal year in which the 1438
member reaches age sixty-two (62). 1439
(6) Any retired member or beneficiary thereof who has 1440
previously elected to receive the additional annual payment in 1441
monthly installments may elect, upon application on a form 1442
prescribed by the board of trustees, to have that payment made in 1443
one (1) additional payment each year. This written election must 1444
be filed in the Office of the Public Employees' Retirement System 1445
before June 1, 2000, and shall be effective for the fiscal year 1446
beginning July 1, 2000. 1447
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(7) In the event of death of a retired member or a 1448
beneficiary thereof who is receiving the additional annual payment 1449
in two (2) to six (6) monthly installments pursuant to an election 1450
made before July 1, 1999, and who would otherwise be eligible to 1451
receive the additional benefit provided for under this section in 1452
one (1) payment in December of the current fiscal year, any 1453
remaining amounts shall be paid in a lump sum to the designated 1454
beneficiary. 1455
(8) When a member retires after July 1 and has previously 1456
received a retirement allowance for one or more full fiscal years, 1457
the retired member shall be eligible immediately for the 1458
additional benefit. The additional benefit shall be based on the 1459
current retirement allowance and the number of full fiscal years 1460
in retirement and shall be prorated and paid in monthly 1461
installments based on the number of months a retirement allowance 1462
is paid during the fiscal year. 1463
* * * 1464
SECTION 6. Section 25-11-113, Mississippi Code of 1972, is 1465
amended as follows: 1466
25-11-113. (1) (a) Upon the application of a member or his 1467
employer, any active member in state service who became a member 1468
of the system before July 1, 2007, and who has at least four (4) 1469
years of membership service credit, or any active member in state 1470
service who became a member of the system on or after July 1, 1471
2007, but before March 1, 2026, who has at least eight (8) years 1472
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of membership service credit, or any active member in state 1473
service who became a member of the system on or after March 1, 1474
2026, who has at least six (6) years of membership service credit, 1475
may be retired by the board of trustees on the first of the month 1476
following the date of filing the application on a disability 1477
retirement allowance, but in no event shall the disability 1478
retirement allowance begin before termination of state service, 1479
provided that the medical board, after an evaluation of medical 1480
evidence that may or may not include an actual physical 1481
examination by the medical board, certifies that the member is 1482
mentally or physically incapacitated for the further performance 1483
of duty, that the incapacity is likely to be permanent, and that 1484
the member should be retired; however, the board of trustees may 1485
accept a disability medical determination from the Social Security 1486
Administration in lieu of a certification from the medical board. 1487
If a member who has been approved for a disability retirement 1488
allowance does not terminate state service within ninety (90) days 1489
after approval, the disability retirement and the application for 1490
disability retirement shall be void. For the purposes of 1491
disability determination, the medical board shall apply the 1492
following definition of disability: the inability to perform the 1493
usual duties of employment or the incapacity to perform such 1494
lesser duties, if any, as the employer, in its discretion, may 1495
assign without material reduction in compensation, or the 1496
incapacity to perform the duties of any employment covered by the 1497
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Public Employees' Retirement System (Section 25-11-101 et seq.) 1498
that is actually offered and is within the same general 1499
territorial work area, without material reduction in compensation. 1500
The employer shall be required to furnish the job description and 1501
duties of the member. The employer shall further certify whether 1502
the employer has offered the member other duties and has complied 1503
with the applicable provisions of the Americans With Disabilities 1504
Act in affording reasonable accommodations that would allow the 1505
employee to continue employment. 1506
(b) Any member applying for a disability retirement 1507
allowance must provide sufficient objective medical evidence in 1508
support of his or her claim. All disability determinations, 1509
whether the initial examination or reexamination, shall be based 1510
on objective medical evidence. "Objective medical evidence" means 1511
reports of examinations or treatments; medical signs that are 1512
anatomical, physiological, or psychological abnormalities that are 1513
observed and documented by medical professionals; psychiatric 1514
signs that are medically demonstrable phenomena indicating 1515
specific abnormalities of behavior, affect, thought, memory, 1516
orientation, or contact with reality; or laboratory findings that 1517
are anatomical, physiological, or psychological phenomena that are 1518
shown by medically acceptable laboratory diagnostic techniques, 1519
including, but not limited to, chemical tests, electrocardiograms, 1520
electroencephalograms, X-rays, and psychological tests. 1521
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Nonmedical information shall not be considered objective medical 1522
evidence. 1523
(c) Any inactive member who became a member of the 1524
system before July 1, 2007, with four (4) or more years of 1525
membership service credit, or any inactive member who became a 1526
member of the system on or after July 1, 2007, with eight (8) or 1527
more years of membership service credit, who has withdrawn from 1528
active state service, is not eligible for a disability retirement 1529
allowance unless the disability occurs within six (6) months of 1530
the termination of active service and unless satisfactory proof is 1531
presented to the board of trustees that the disability was the 1532
direct cause of withdrawal from state service. Application for a 1533
disability retirement allowance must be filed within one (1) year 1534
of termination from active service. This period may be extended 1535
by an additional year if it can be factually demonstrated to the 1536
satisfaction of the board of trustees that throughout the initial 1537
one-year period the member was incapable of applying for benefits 1538
by reason of mental or physical impairment as certified by a 1539
medical doctor. 1540
(d) Any member who is or becomes eligible for service 1541
retirement benefits under Section 25-11-111 while pursuing a 1542
disability retirement allowance under this section or Section 1543
25-11-114 may elect to receive a service retirement allowance 1544
pending a final determination on eligibility for a disability 1545
retirement allowance or withdrawal of the application for the 1546
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disability retirement allowance. In such a case, an application 1547
for a disability retirement allowance must be on file with the 1548
system before the beginning of a service retirement allowance. If 1549
the application is approved, the option selected and beneficiary 1550
designated on the retirement application shall be used to 1551
determine the disability retirement allowance. If the application 1552
is not approved or if the application is withdrawn, the service 1553
retirement allowance shall continue to be paid in accordance with 1554
the option selected. No person may apply for a disability 1555
retirement allowance after the person begins to receive a service 1556
retirement allowance. 1557
(e) If the medical board certifies that the member is 1558
not mentally or physically incapacitated for the future 1559
performance of duty, the member may request, within sixty (60) 1560
days, a hearing before the hearing officer as provided in Section 1561
25-11-120. All hearings shall be held in accordance with rules 1562
and regulations adopted by the board to govern those hearings. 1563
The hearing may be closed upon the request of the member. 1564
(f) The medical board may request additional medical 1565
evidence and/or other physicians to conduct an evaluation of the 1566
member's condition. If the medical board requests additional 1567
medical evidence and the member refuses the request, the 1568
application shall be considered void. 1569
(2) Allowance on disability retirement. 1570
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(a) Upon retirement for disability, an eligible member 1571
shall receive a retirement allowance if he has attained the age of 1572
sixty (60) years. 1573
(b) Except as provided in paragraph (c) of this 1574
subsection (2), an eligible member who is retired for disability 1575
and who has not attained sixty (60) years of age shall receive a 1576
disability benefit as computed in Section 25-11-111(d), which 1577
shall consist of: 1578
(i) A member's annuity, which shall be the 1579
actuarial equivalent of his accumulated contributions at the time 1580
of retirement; and 1581
(ii) An employer's annuity equal to the amount 1582
that would have been payable as a retirement allowance for 1583
eligible creditable service if the member had continued in service 1584
to the age of sixty (60) years, which shall apply to the allowance 1585
for disability retirement paid to retirees receiving such 1586
allowance upon and after April 12, 1977. This employer's annuity 1587
shall be computed on the basis of the average "earned 1588
compensation" as defined in Section 25-11-103. 1589
(c) For persons who become members after June 30, 1992, 1590
and for active members on June 30, 1992, who elect benefits under 1591
this paragraph (c) instead of those provided under paragraph (b) 1592
of this subsection (2), the disability allowance shall consist of 1593
two (2) parts: a temporary allowance and a deferred allowance. 1594
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Except for a person whose disability resulted from work as a 1595
first responder, the temporary allowance shall equal the greater 1596
of (i) forty percent (40%) of average compensation at the time of 1597
disability, plus ten percent (10%) of average compensation for 1598
each of the first two (2) dependent children, as defined in 1599
Sections 25-11-103 and 25-11-114, or (ii) the accrued benefit 1600
based on actual service. For a person whose disability resulted 1601
from work as a first responder, the temporary allowance shall 1602
equal the greater of (i) seventy-five percent (75%) of average 1603
compensation at the time of disability, plus ten percent (10%) of 1604
average compensation for each of the first two (2) dependent 1605
children, as defined in Sections 25-11-103 and 25-11-114, or (ii) 1606
the accrued benefit based on actual service. It shall be payable 1607
for a period of time based on the member's age at disability, as 1608
follows: 1609
Age at Disability Duration 1610
60 and earlier to age 65 1611
61 to age 66 1612
62 to age 66 1613
63 to age 67 1614
64 to age 67 1615
65 to age 68 1616
66 to age 68 1617
67 to age 69 1618
68 to age 70 1619
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69 and over one year 1620
The deferred allowance shall begin when the temporary 1621
allowance ends and shall be payable for life. Except for a person 1622
whose disability resulted from work as a first responder, the 1623
deferred allowance shall equal the greater of (i) the allowance 1624
that would have been payable had the member continued in service 1625
to the termination age of the temporary allowance, but no more 1626
than forty percent (40%) of average compensation, or (ii) the 1627
accrued benefit based on actual service at the time of disability. 1628
For a person whose disability resulted from work as a first 1629
responder, the deferred allowance shall equal the greater of (i) 1630
the allowance that would have been payable had the member 1631
continued in service to the termination age of the temporary 1632
allowance, but no more than seventy-five percent (75%) of average 1633
compensation, or (ii) the accrued benefit based on actual service 1634
at the time of disability. The deferred allowance as determined 1635
at the time of disability shall be adjusted in accordance with 1636
Section 25-11-112 for the period during which the temporary 1637
annuity is payable. In no case shall a member receive less than 1638
Ten Dollars ($10.00) per month for each year of service and 1639
proportionately for each quarter year thereof reduced for the 1640
option selected. 1641
(d) The member may elect to receive the actuarial 1642
equivalent of the disability retirement allowance in a reduced 1643
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allowance payable throughout life under any of the provisions of 1644
the options provided under Section 25-11-115. 1645
(e) If a disability retiree who has not selected an 1646
option under Section 25-11-115 dies before being repaid in 1647
disability benefits the sum of his total contributions, then his 1648
named beneficiary shall receive the difference in cash, which 1649
shall apply to all deceased disability retirees from and after 1650
January 1, 1953. 1651
(3) Reexamination of retirees retired on account of 1652
disability. Except as otherwise provided in this section, once 1653
each year during the first five (5) years following retirement of 1654
a member on a disability retirement allowance, and once in every 1655
period of three (3) years thereafter, the board of trustees may, 1656
and upon his application shall, require any disability retiree who 1657
has not yet attained the age of sixty (60) years or the 1658
termination age of the temporary allowance under subsection (2)(c) 1659
of this section to undergo a medical examination, the examination 1660
to be made at the place of residence of the retiree or other place 1661
mutually agreed upon by a physician or physicians designated by 1662
the board. The board, however, in its discretion, may authorize 1663
the medical board to establish reexamination schedules appropriate 1664
to the medical condition of individual disability retirees. If 1665
any disability retiree who has not yet attained the age of sixty 1666
(60) years or the termination age of the temporary allowance under 1667
subsection (2)(c) of this section refuses to submit to any medical 1668
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examination provided in this section, his allowance may be 1669
discontinued until his withdrawal of that refusal; and if his 1670
refusal continues for one (1) year, all his rights to a disability 1671
benefit shall be revoked by the board of trustees. 1672
(4) If the medical board reports and certifies to the board 1673
of trustees, after a comparable job analysis or other similar 1674
study, that the disability retiree is engaged in, or is able to 1675
engage in, a gainful occupation paying more than the difference 1676
between his disability allowance, exclusive of cost-of-living 1677
adjustments, and the average compensation, and if the board of 1678
trustees concurs in the report, the disability benefit shall be 1679
reduced to an amount that, together with the amount earnable by 1680
him, equals the amount of his average compensation. If his 1681
earning capacity is later changed, the amount of the benefit may 1682
be further modified, provided that the revised benefit shall not 1683
exceed the amount originally granted. A retiree receiving a 1684
disability benefit who is restored to active service at a salary 1685
less than the average compensation shall not become a member of 1686
the retirement system. 1687
(5) If a disability retiree under the age of sixty (60) 1688
years or the termination age of the temporary allowance under 1689
subsection (2)(c) of this section is restored to active service at 1690
a compensation not less than his average compensation, his 1691
disability benefit shall end, he shall again become a member of 1692
the retirement system, and contributions shall be withheld and 1693
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reported. Any such prior service certificate, on the basis of 1694
which his service was computed at the time of retirement, shall be 1695
restored to full force and effect. In addition, upon his later 1696
retirement he shall be credited with all creditable service as a 1697
member, but the total retirement allowance paid to the retired 1698
member in his previous retirement shall be deducted from his 1699
retirement reserve and taken into consideration in recalculating 1700
the retirement allowance under a new option selected. 1701
(6) If following reexamination in accordance with the 1702
provisions contained in this section, the medical board determines 1703
that a retiree retired on account of disability is physically and 1704
mentally able to return to the employment from which he is 1705
retired, the board of trustees, upon certification of those 1706
findings from the medical board, shall, after a reasonable period 1707
of time, terminate the disability allowance, whether or not the 1708
retiree is reemployed or seeks that reemployment. In addition, if 1709
the board of trustees determines that the retiree is no longer 1710
sustaining a loss of income as established by documented evidence 1711
of the retiree's earned income, the eligibility for a disability 1712
allowance shall terminate and the allowance terminated within a 1713
reasonable period of time. If the retirement allowance is 1714
terminated under the provisions of this section, the retiree may 1715
later qualify for a retirement allowance under Section 25-11-111 1716
based on actual years of service credit plus credit for the period 1717
during which a disability allowance was paid. 1718
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(7) Any current member as of June 30, 1992, who retires on a 1719
disability retirement allowance after June 30, 1992, and who has 1720
not elected to receive benefits under subsection (2)(c) of this 1721
section, shall relinquish all rights under the Age Discrimination 1722
in Employment Act of 1967, as amended, with regard to the benefits 1723
payable under this section. 1724
SECTION 7. Section 25-11-114, Mississippi Code of 1972, is 1725
amended as follows: 1726
25-11-114. (1) The applicable benefits provided in 1727
subsections (2) and (3) of this section shall be paid to eligible 1728
beneficiaries of any member who became a member of the system 1729
before July 1, 2007, and has completed four (4) or more years of 1730
membership service, or who became a member of the system on or 1731
after July 1, 2007, and has completed eight (8) or more years of 1732
membership service, and who dies before retirement and who has not 1733
filed a Pre-Retirement Optional Retirement Form as provided in 1734
Section 25-11-111. 1735
(2) (a) The surviving spouse of a member who dies before 1736
retirement shall receive a monthly benefit computed in accordance 1737
with paragraph (d) of this subsection (2) as if the member had 1738
nominated his spouse as beneficiary if: 1739
(i) The member completed the requisite minimum 1740
number of years of membership service to qualify for a retirement 1741
allowance at age sixty (60), for any member who became a member of 1742
the system before March 1, 2026, or at age sixty-two (62), for any 1743
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member who became a member of the system on or after March 1, 1744
2026; 1745
(ii) The spouse has been married to the member for 1746
not less than one (1) year preceding the death of the member; 1747
(iii) The member has not exercised any other 1748
option. 1749
(b) If, at the time of the member's death, there are no 1750
dependent children, and the surviving spouse, who otherwise would 1751
receive the annuity under this subsection (2), has filed with the 1752
system a signed written waiver of his or her rights to the annuity 1753
and that waiver was in effect at the time of the member's death, a 1754
lump-sum distribution of the deceased member's accumulated 1755
contributions shall be refunded in accordance with Section 1756
25-11-117. 1757
(c) The spouse annuity shall begin on the first day of 1758
the month following the date of the member's death, but in case of 1759
late filing, retroactive payments will be made for a period of not 1760
more than one (1) year. 1761
(d) The spouse of a member who is eligible to receive a 1762
monthly benefit under paragraph (a) of this subsection (2) shall 1763
receive a benefit for life equal to the higher of the following: 1764
(i) The greater of twenty percent (20%) of the 1765
deceased member's average compensation as defined in Section 1766
25-11-103 at the time of death or Fifty Dollars ($50.00) monthly, 1767
or, if the member died in the line of duty as a first responder, 1768
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the greater of sixty-five percent (65%) of the deceased member's 1769
average compensation as defined in Section 25-11-103 at the time 1770
of death or One Hundred Sixty-five Dollars ($165.00) monthly; or 1771
(ii) Benefits calculated under Option 2 of Section 1772
25-11-115. The method of calculating the retirement benefits 1773
shall be on the same basis as provided in Section 25-11-111(d), 1774
(e) or (g), as applicable. However, if the member dies before 1775
being qualified for a full, unreduced retirement allowance, then 1776
the benefits shall be reduced by an actuarially determined 1777
percentage or factor based on the lesser of either the number of 1778
years of service credit or the number of years in age required to 1779
qualify for a full, unreduced retirement allowance in Section 1780
25-11-111(d), (e) or (g), as applicable. 1781
(e) The surviving spouse of a deceased member who 1782
previously received spouse retirement benefits under paragraph 1783
(d)(i) of this subsection from and after July 1, 1992, and whose 1784
benefits were terminated before July 1, 2004, because of 1785
remarriage, may again receive the retirement benefits authorized 1786
under paragraph (d)(i) of this subsection by making application 1787
with the board to reinstate those benefits. Any reinstatement of 1788
the benefits shall be prospective only and shall begin after the 1789
first of the month following the date of the application for 1790
reinstatement, but no earlier than July 1, 2004. From and after 1791
July 1, 2010, any spouse who chose Option 2 from and after July 1, 1792
1992, but before July 1, 2004, where the benefit, although payable 1793
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for life, was less than the benefit available under the 1794
calculation in paragraph (d)(i) of this subsection shall have his 1795
or her benefit increased to the amount which provides the greater 1796
benefit. 1797
(3) (a) Subject to the maximum limitation provided in this 1798
paragraph, the member's dependent children each shall receive an 1799
annuity of the greater of ten percent (10%) of the member's 1800
average compensation as defined in Section 25-11-103 at the time 1801
of the death of the member or Fifty Dollars ($50.00) monthly; 1802
however, if there are more than three (3) dependent children, each 1803
dependent child shall receive an equal share of a total annuity 1804
equal to thirty percent (30%) of the member's average 1805
compensation, provided that the total annuity shall not be less 1806
than One Hundred Fifty Dollars ($150.00) per month for all 1807
children. If the member died in the line of duty as a first 1808
responder, the member's dependent children each shall receive an 1809
annuity of the greater of twenty percent (20%) of the member's 1810
average compensation as defined in Section 25-11-103 at the time 1811
of the death of the member or One Hundred Dollars ($100.00) 1812
monthly; however, if there are more than three (3) dependent 1813
children, each dependent child shall receive an equal share of a 1814
total annuity equal to sixty-five percent (65%) of the member's 1815
average compensation, provided that the total annuity shall not be 1816
less than Three Hundred Twenty-five Dollars ($325.00) per month 1817
for all children. 1818
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(b) A child shall be considered to be a dependent child 1819
until marriage, or the attainment of age nineteen (19), whichever 1820
comes first; however, this age limitation shall be extended beyond 1821
age nineteen (19), but in no event beyond the attainment of age 1822
twenty-three (23), as long as the child is a student regularly 1823
pursuing a full-time course of resident study or training in an 1824
accredited high school, trade school, technical or vocational 1825
institute, junior or community college, college, university or 1826
comparable recognized educational institution duly licensed by a 1827
state. A student child who is receiving a retirement allowance as 1828
of June 30, 2016, whose birthday falls during the school year 1829
(September 1 through June 30) is considered not to reach age 1830
twenty-three (23) until the July 1 following the actual 1831
twenty-third birthday. A full-time course of resident study or 1832
training means a day or evening noncorrespondence course that 1833
includes school attendance at the rate of at least thirty-six (36) 1834
weeks per academic year or other applicable period with a subject 1835
load sufficient, if successfully completed, to attain the 1836
educational or training objective within the period generally 1837
accepted as minimum for completion, by a full-time day student, of 1838
the academic or training program concerned. Any child who is 1839
physically or mentally incompetent, as adjudged by either a 1840
Mississippi court of competent jurisdiction or by the board, shall 1841
receive benefits for as long as the incompetency exists. 1842
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(c) If there are more than three (3) dependent 1843
children, upon a child's ceasing to be a dependent child, his 1844
annuity shall terminate and there shall be a redetermination of 1845
the amounts payable to any remaining dependent children. 1846
(d) Annuities payable under this subsection (3) shall 1847
begin the first day of the month following the date of the 1848
member's death or in case of late filing, retroactive payments 1849
will be made for a period of not more than one (1) year. Those 1850
benefits may be paid to a surviving parent or the lawful custodian 1851
of a dependent child for the use and benefit of the child without 1852
the necessity of appointment as guardian. 1853
(4) (a) Death benefits in the line of duty. Regardless of 1854
the number of years of the member's creditable service, the spouse 1855
and/or the dependent children of an active member who is killed or 1856
dies as a direct result of a physical injury sustained from an 1857
accident or a traumatic event caused by external violence or 1858
physical force occurring in the line of performance of duty shall 1859
qualify, on approval of the board, for a retirement allowance on 1860
the first of the month following the date of death, but in the 1861
case of late filing, retroactive payments will be made for a 1862
period of not more than one (1) year. The spouse shall receive a 1863
retirement allowance for life equal to one-half (1/2) of the 1864
average compensation as defined in Section 25-11-103. In addition 1865
to the retirement allowance for the spouse, or if there is no 1866
surviving spouse, the member's dependent child shall receive a 1867
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retirement allowance in the amount of one-fourth (1/4) of the 1868
member's average compensation as defined in Section 25-11-103; 1869
however, if there are two (2) or more dependent children, each 1870
dependent child shall receive an equal share of a total annuity 1871
equal to one-half (1/2) of the member's average compensation. If 1872
there are more than two (2) dependent children, upon a child's 1873
ceasing to be a dependent child, his annuity shall terminate and 1874
there shall be a redetermination of the amounts payable to any 1875
remaining dependent children. Those benefits shall cease to be 1876
paid for the support and maintenance of each child upon the child 1877
attaining the age of nineteen (19) years; however, the spouse 1878
shall continue to be eligible for the aforesaid retirement 1879
allowance. Those benefits may be paid to a surviving parent or 1880
lawful custodian of the children for the use and benefit of the 1881
children without the necessity of appointment as guardian. Any 1882
spouse who received spouse retirement benefits under this 1883
paragraph (a) from and after April 4, 1984, and whose benefits 1884
were terminated before July 1, 2004, because of remarriage, may 1885
again receive the retirement benefits authorized under this 1886
paragraph (a) by making application with the board to reinstate 1887
those benefits. Any reinstatement of the benefits shall be 1888
prospective only and shall begin after the first of the month 1889
following the date of the application for reinstatement, but not 1890
earlier than July 1, 2004. 1891
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(b) A child shall be considered to be a dependent child 1892
until marriage, or the attainment of age nineteen (19), whichever 1893
comes first; however, this age limitation shall be extended beyond 1894
age nineteen (19), but in no event beyond the attainment of age 1895
twenty-three (23), as long as the child is a student regularly 1896
pursuing a full-time course of resident study or training in an 1897
accredited high school, trade school, technical or vocational 1898
institute, junior or community college, college, university or 1899
comparable recognized educational institution duly licensed by a 1900
state. A student child who is receiving a retirement allowance as 1901
of June 30, 2016, whose birthday falls during the school year 1902
(September 1 through June 30) is considered not to reach age 1903
twenty-three (23) until the July 1 following the actual 1904
twenty-third birthday. A full-time course of resident study or 1905
training means a day or evening noncorrespondence course that 1906
includes school attendance at the rate of at least thirty-six (36) 1907
weeks per academic year or other applicable period with a subject 1908
load sufficient, if successfully completed, to attain the 1909
educational or training objective within the period generally 1910
accepted as minimum for completion, by a full-time day student, of 1911
the academic or training program concerned. Any child who is 1912
physically or mentally incompetent, as adjudged by either a 1913
Mississippi court of competent jurisdiction or by the board, shall 1914
receive benefits for as long as the incompetency exists. 1915
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(5) If all the annuities provided for in this section 1916
payable on account of the death of a member terminate before there 1917
has been paid an aggregate amount equal to the member's 1918
accumulated contributions standing to the member's credit in the 1919
annuity savings account at the time of the member's death, the 1920
difference between the accumulated contributions and the aggregate 1921
amount of annuity payments shall be paid to the person that the 1922
member has nominated by written designation duly executed and 1923
filed with the board. If there is no designated beneficiary 1924
surviving at termination of benefits, the difference shall be 1925
payable under Section 25-11-117.1(1). 1926
(6) Regardless of the number of years of creditable service, 1927
upon the application of a member or employer, any active member 1928
who becomes disabled as a direct result of a physical injury 1929
sustained from an accident or traumatic event caused by external 1930
violence or physical force occurring in the line of performance of 1931
duty, provided that the medical board or other designated 1932
governmental agency after a medical examination certifies that the 1933
member is mentally or physically incapacitated for the further 1934
performance of duty and the incapacity is likely to be permanent, 1935
may be retired by the board of trustees on the first of the month 1936
following the date of filing the application but in no event shall 1937
the retirement allowance begin before the termination of state 1938
service. If a member who has been approved for a retirement 1939
allowance under this subsection does not terminate state service 1940
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within ninety (90) days after the approval, the retirement 1941
allowance and the application for the allowance shall be void. 1942
The retirement allowance shall equal the allowance on disability 1943
retirement as provided in Section 25-11-113 but shall not be less 1944
than fifty percent (50%) of average compensation. Line of duty 1945
disability benefits under this section shall be administered in 1946
accordance with the provisions of Section 25-11-113(1)(b), (c), 1947
(d), (e) and (f), (3), (4), (5) and (6). 1948
(7) For purposes of determining death or disability benefits 1949
under this section, the following shall apply: 1950
(a) Death or permanent and total disability resulting 1951
from a cardiovascular, pulmonary or musculoskeletal condition that 1952
was not a direct result of a physical injury sustained from an 1953
accident or a traumatic event caused by external violence or 1954
physical force occurring in the performance of duty shall be 1955
deemed a natural death or an ordinary disability. 1956
(b) A mental disability based exclusively on employment 1957
duties occurring on an ongoing basis shall be deemed an ordinary 1958
disability. 1959
(8) If the deceased or disabled member has less than four 1960
(4) years of membership service, the average compensation as 1961
defined in Section 25-11-103 shall be the average of all annual 1962
earned compensation in state service for the purposes of benefits 1963
provided in this section. 1964
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(9) In case of death or total and permanent disability under 1965
subsection (4) or subsection (6) of this section and before the 1966
board shall consider any application for a retirement allowance, 1967
the employer must certify to the board that the member's death or 1968
disability was a direct result of an accident or a traumatic event 1969
occurring during and as a result of the performance of the regular 1970
and assigned duties of the employee and that the death or 1971
disability was not the result of the willful negligence of the 1972
employee. 1973
(10) The application for the retirement allowance must be 1974
filed within one (1) year after death of an active member who is 1975
killed in the line of performance of duty or dies as a direct 1976
result of an accident occurring in the line of performance of duty 1977
or traumatic event; but the board of trustees may consider an 1978
application for disability filed after the one-year period if it 1979
can be factually demonstrated to the satisfaction of the board of 1980
trustees that the disability is due to the accident and that the 1981
filing was not accomplished within the one-year period due to a 1982
delayed manifestation of the disability or to circumstances beyond 1983
the control of the member. However, in case of late filing, 1984
retroactive payments will be made for a period of not more than 1985
one (1) year only. 1986
(11) (a) Notwithstanding any other section of this article 1987
and in lieu of any payments to a designated beneficiary for a 1988
refund of contributions under Section 25-11-117, the spouse and/or 1989
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children shall be eligible for the benefits payable under this 1990
section, and the spouse may elect, for both the spouse and/or 1991
children, to receive benefits in accordance with either 1992
subsections (2) and (3) or subsection (4) of this section; 1993
otherwise, the contributions to the credit of the deceased member 1994
shall be refunded in accordance with Section 25-11-117. 1995
(b) Notwithstanding any other section of this article, 1996
a spouse who is entitled to receive a monthly benefit under either 1997
subsection (2) or (4) of this section and who is also the named 1998
beneficiary for a refund of accumulated contributions in the 1999
member's annuity savings account, may, after the death of the 2000
member, elect to receive a refund of accumulated contributions in 2001
lieu of a monthly allowance, provided that there are no dependent 2002
children entitled to benefits under subsection (3) of this 2003
section. 2004
(12) If the member has previously received benefits from the 2005
system to which he was not entitled and has not repaid in full all 2006
amounts payable by him to the system, the annuity amounts 2007
otherwise provided by this section shall be withheld and used to 2008
effect repayment until the total of the withholdings repays in 2009
full all amounts payable by him to the system. 2010
SECTION 8. Section 25-11-115, Mississippi Code of 1972, is 2011
amended as follows: 2012
25-11-115. (1) Upon application for superannuation or 2013
disability retirement, any member may elect to receive his or her 2014
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benefit in a retirement allowance payable throughout life with no 2015
further payments to anyone at the member's death, except that if 2016
the member's total retirement payments under this article do not 2017
equal the member's total contributions under this article, the 2018
named beneficiary shall receive the difference in cash at the 2019
member's death. Or the member may elect upon retirement, or upon 2020
becoming eligible for retirement, to receive the actuarial 2021
equivalent subject to the provisions of subsection (3) of this 2022
section of his or her retirement allowance in a reduced retirement 2023
allowance payable throughout life with the provision that: 2024
Option 1. If the retired member dies before he or she has 2025
received in annuity payment the value of the member's annuity 2026
savings account as it was at the time of the member's retirement, 2027
the balance shall be paid to the legal representative or to such 2028
person as the member has nominated by written designation duly 2029
acknowledged and filed with the board; 2030
Option 2. Upon the retired member's death, his or her 2031
reduced retirement allowance shall be continued throughout the 2032
life of, and paid to, such person as the member has nominated by 2033
written designation duly acknowledged and filed with the board of 2034
trustees at the time of his or her retirement; 2035
Option 3. Upon the retired member's death, one-half (1/2) of 2036
his or her reduced retirement allowance shall be continued 2037
throughout the life of, and paid to, such person as the member has 2038
nominated by written designation duly acknowledged and filed with 2039
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the board of trustees at the time of his or her retirement, and 2040
the other one-half (1/2) of his or her reduced retirement 2041
allowance to some other designated beneficiary; 2042
Option 4. Upon the retired member's death, three-fourths 2043
(3/4) of his or her reduced retirement allowance, or such other 2044
specified amount, shall be continued throughout the life of, and 2045
paid to, such person as the member has nominated by written 2046
designation duly acknowledged and filed with the board of trustees 2047
at the time of his or her retirement; 2048
Option 4-A. Upon the retired member's death, one-half (1/2) 2049
of his or her reduced retirement allowance, or such other 2050
specified amount, shall be continued throughout the life of, and 2051
paid to, such person as the member has nominated by written 2052
designation duly acknowledged and filed with the board of trustees 2053
at the time of his or her retirement; 2054
Option 4-B. A reduced retirement allowance shall be 2055
continued throughout the life of the retirant, but with the 2056
further guarantee of payments to the named beneficiary or 2057
beneficiaries for a specified number of years certain. If the 2058
retired member or the last designated beneficiary both die before 2059
receiving all guaranteed payments due, the actuarial equivalent of 2060
the remaining payments shall be paid to the successors of the 2061
retired member under Section 25-11-117.1(1); 2062
Option 6. Any member who became a member of the system 2063
before July 1, 2007, and who has at least twenty-eight (28) years 2064
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of creditable service at the time of retirement or who is at least 2065
sixty-three (63) years of age and eligible to retire, may select 2066
the maximum retirement benefit or an optional benefit as provided 2067
in this subsection together with a partial lump-sum distribution. 2068
Any member who became a member of the system on or after July 1, 2069
2007, but before July 1, 2011, and who has at least twenty-eight 2070
(28) years of creditable service at the time of retirement may 2071
select the maximum retirement benefit or any optional benefit as 2072
provided in this subsection together with a partial lump-sum 2073
distribution. Any member who became a member of the system on or 2074
after July 1, 2011, * * * and who has at least thirty-three (33) 2075
years of creditable service at the time of retirement may select 2076
the maximum retirement benefit or any optional benefit as provided 2077
in this subsection together with a partial lump-sum 2078
distribution. * * * The amount of the lump-sum distribution under 2079
this option shall be equal to the maximum monthly benefit 2080
multiplied by twelve (12), twenty-four (24) or thirty-six (36) as 2081
selected by the member. The maximum retirement benefit shall be 2082
actuarially reduced to reflect the amount of the lump-sum 2083
distribution selected and further reduced for any other optional 2084
benefit selected. The annuity and lump-sum distribution shall be 2085
computed to result in no actuarial loss to the system. The 2086
lump-sum distribution shall be made as a single payment payable at 2087
the time the first monthly annuity payment is paid to the retiree. 2088
The amount of the lump-sum distribution shall be deducted from the 2089
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member's annuity savings account in computing what contributions 2090
remain at the death of the retiree and/or a beneficiary. The 2091
lump-sum distribution option may be elected only once by a member 2092
upon initial retirement, and may not be elected by a retiree, by 2093
members applying for a disability retirement annuity, or by 2094
survivors. 2095
(2) No change in the option selected shall be permitted 2096
after the member's death or after the member has received his or 2097
her first retirement check except as provided in subsections (3) 2098
and (4) of this section and in Section 25-11-127. Members who are 2099
pursuing a disability retirement allowance and simultaneously or 2100
later elect to begin to receive a service retirement allowance 2101
while continuing to pursue a disability retirement allowance, 2102
shall not be eligible to select Option 6 and that option may not 2103
be selected at a later time if the application for a disability 2104
retirement allowance is voided or denied. However, any retired 2105
member who is receiving a retirement allowance under Option 2 or 2106
Option 4-A upon July 1, 1992, and whose designated beneficiary 2107
predeceased him or her or whose marriage to a spouse who is his or 2108
her designated beneficiary is terminated by divorce or other 2109
dissolution, upon written notification to the retirement system of 2110
the death of the designated beneficiary or of the termination of 2111
the retired member's marriage to the designated beneficiary, the 2112
retirement allowance payable to the member after receipt of that 2113
notification by the retirement system shall be equal to the 2114
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retirement allowance that would have been payable if the member 2115
had not elected the option. In addition, any retired member who 2116
is receiving the maximum retirement allowance for life, a 2117
retirement allowance under Option 1 or who is receiving a 2118
retirement allowance under Option 2 or Option 4-A on July 1, 1992, 2119
may elect to provide survivor benefits under Option 2 or Option 2120
4-A to a spouse who was not previously the member's beneficiary 2121
and whom the member married before July 1, 1992. 2122
(3) Any retired member who is receiving a reduced retirement 2123
allowance under Option 2, Option 4 or Option 4-A whose designated 2124
beneficiary predeceases him or her, or whose marriage to a spouse 2125
who is his or her designated beneficiary is terminated by divorce 2126
or other dissolution, may elect to cancel the reduced retirement 2127
allowance and receive the maximum retirement allowance for life in 2128
an amount equal to the amount that would have been payable if the 2129
member had not elected Option 2, Option 4 or Option 4-A. That 2130
election must be made in writing to the office of the executive 2131
director of the system on a form prescribed by the board. Any 2132
such election shall be effective the first of the month following 2133
the date the election is received by the system; however, the 2134
election may be applied retroactively for not more than three (3) 2135
months but no earlier than the first of the month following the 2136
date of the death of the beneficiary. 2137
(4) Any retired member who is receiving the maximum 2138
retirement allowance for life, or a retirement allowance under 2139
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Option 1, and who marries after his or her retirement may elect to 2140
cancel the maximum retirement allowance and receive a reduced 2141
retirement allowance under Option 2, Option 4 or Option 4-A to 2142
provide continuing lifetime benefits to his or her spouse. That 2143
election must be made in writing to the office of the executive 2144
director of the system on a form prescribed by the board not 2145
earlier than the date of the marriage and not later than one (1) 2146
year from the date of the marriage. Any such election shall be 2147
effective the first of the month following the date the election 2148
is received by the system. 2149
(5) (a) Except as otherwise provided in this subsection, if 2150
the election of an optional benefit is made after the member has 2151
attained the age of sixty-five (65) years, the actuarial 2152
equivalent factor shall be used to compute the reduced retirement 2153
allowance as if the election had been made on his or her 2154
sixty-fifth birthday; however, from and after January 1, 2003, if 2155
there is an election of Option 6 after the member has attained the 2156
age of sixty-five (65) years, the actuarial equivalent factor 2157
based on the retiree's age at the time of retirement shall be used 2158
to compute the reduced maximum monthly retirement allowance. 2159
However, if a retiree marries or remarries after retirement and 2160
elects either Option 2 or Option 4-A as provided in subsection (2) 2161
or (4) of this section, the actuarial equivalent factor used to 2162
compute the reduced retirement allowance shall be the factor for 2163
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the age of the retiree and his or her beneficiary at the time such 2164
election for recalculation of benefits is made. 2165
(b) For members who retire on or after July 1, 2012, 2166
the actuarial equivalent factor used to compute the reduced 2167
retirement allowance at retirement or upon any subsequent 2168
recalculation of the benefit shall be the factor for the age of 2169
the retiree and his or her beneficiary at the time of retirement 2170
or at the time an election for recalculation of benefits is made. 2171
(6) Notwithstanding any provision of Section 25-11-1 et 2172
seq., no payments may be made for a retirement allowance on a 2173
monthly basis for a period of time in excess of that allowed by 2174
federal law. 2175
(7) If a retirant and his or her eligible beneficiary, if 2176
any, both die before they have received in annuity payments a 2177
total amount equal to the accumulated contributions standing to 2178
the retirant's credit in the annuity savings account at the time 2179
of his or her retirement, the difference between the accumulated 2180
contributions and the total amount of annuities received by them 2181
shall be paid to such persons as the retirant has nominated by 2182
written designation duly executed and filed in the office of the 2183
executive director. If no designated person survives the retirant 2184
and his or her beneficiary, the difference, if any, shall be paid 2185
under Section 25-11-117.1(1). 2186
(8) Any retired member who retired on Option 2(5) or 4-A(5) 2187
before July 1, 1992, who is still receiving a retirement allowance 2188
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on July 1, 1994, shall receive an increase in the annual 2189
retirement allowance effective July 1, 1994, equal to the amount 2190
they would have received under Option 2 or Option 4-A without a 2191
reduction for Option 5 based on the ages at retirement of the 2192
retiree and beneficiary and option factors in effect on July 1, 2193
1992. That increase shall be prospective only. 2194
SECTION 9. Section 25-11-117, Mississippi Code of 1972, is 2195
amended as follows: 2196
25-11-117. (1) A member may be paid a refund of the amount 2197
of accumulated contributions to the credit of the member in the 2198
annuity savings account, provided that the member has withdrawn 2199
from state service and has not returned to state service on the 2200
date the refund of the accumulated contributions would be paid. 2201
That refund of the contributions to the credit of the member in 2202
the annuity savings account shall be paid within ninety (90) days 2203
from receipt in the office of the retirement system of the 2204
properly completed form requesting the payment. In the event of 2205
death before retirement of any member whose spouse and/or children 2206
are not entitled to a retirement allowance, the accumulated 2207
contributions to the credit of the deceased member in the annuity 2208
savings account shall be paid to the designated beneficiary on 2209
file in writing in the office of the executive director of the 2210
board of trustees within ninety (90) days from receipt of a 2211
properly completed form requesting the payment. If there is no 2212
such designated beneficiary on file for the deceased member in the 2213
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office of the system, upon the filing of a proper request with the 2214
board, the contributions to the credit of the deceased member in 2215
the annuity savings account shall be refunded under Section 2216
25-11-117.1(1). The payment of the refund shall discharge all 2217
obligations of the retirement system to the member on account of 2218
any creditable service rendered by the member before the receipt 2219
of the refund. By the acceptance of the refund, the member shall 2220
waive and relinquish all accrued rights in the system. 2221
(2) Under the Unemployment Compensation Amendments of 1992 2222
(Public Law 102-318 (UCA)), a member or the spouse of a member who 2223
is an eligible beneficiary entitled to a refund under this section 2224
may elect, on a form prescribed by the board under rules and 2225
regulations established by the board, to have an eligible rollover 2226
distribution of accumulated contributions payable under this 2227
section paid directly to an eligible retirement plan, as defined 2228
under applicable federal law, or an individual retirement account. 2229
If the member or the spouse of a member who is an eligible 2230
beneficiary makes that election and specifies the eligible 2231
retirement plan or individual retirement account to which the 2232
distribution is to be paid, the distribution will be made in the 2233
form of a direct trustee-to-trustee transfer to the specified 2234
eligible retirement plan. A nonspouse beneficiary may elect to 2235
have an eligible rollover distribution paid in the form of a 2236
direct trustee-to-trustee transfer to an individual retirement 2237
account established to receive the distribution on behalf of the 2238
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nonspouse beneficiary. Flexible rollovers under this subsection 2239
shall not be considered assignments under Section 25-11-129. 2240
(3) (a) If any person who has received a refund, reenters 2241
the state service and again becomes a member of the system before 2242
July 1, 2007, the member may repay all or part of the amounts 2243
previously received as a refund, together with regular interest 2244
covering the period from the date of refund to the date of 2245
repayment; however, the amounts that are repaid by the member and 2246
the creditable service related thereto shall not be used in any 2247
benefit calculation or determination until the member has remained 2248
a contributor to the system for a period of at least four (4) 2249
years after the member's reentry into state service. Repayment 2250
for that time shall be made beginning with the most recent service 2251
for which refund has been made. Upon the repayment of all or part 2252
of that refund and interest, the member shall again receive credit 2253
for the period of creditable service for which full repayment has 2254
been made to the system. 2255
(b) If any person who has received a refund, reenters 2256
the state service and again becomes a member of the system on or 2257
after July 1, 2007, but before March 1, 2026, the member may repay 2258
all or part of the amounts previously received as a refund, 2259
together with regular interest covering the period from the date 2260
of refund to the date of repayment; however, the amounts that are 2261
repaid by the member and the creditable service related thereto 2262
shall not be used in any benefit calculation or determination 2263
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until the member has remained a contributor to the system for a 2264
period of at least eight (8) years after the member's reentry into 2265
state service. Repayment for that time shall be made beginning 2266
with the most recent service for which refund has been made. Upon 2267
the repayment of all or part of that refund and interest, the 2268
member shall again receive credit for the period of creditable 2269
service for which full repayment has been made to the system. 2270
(c) (i) Subject to subparagraph (ii) of this paragraph 2271
(c), if any person who has received a refund reenters state 2272
service and again becomes a member of the system on or after March 2273
1, 2026, the member shall not be eligible to repay any portion of 2274
amounts previously received as a refund and may not receive 2275
creditable service for service rendered before March 1, 2026. 2276
(ii) If any person who has received a refund 2277
reenters state service and again becomes a member of the system on 2278
or after March 1, 2026, and completes six (6) years of service as 2279
a first responder, beginning on or after March 1, 2026, such 2280
person may repay all or part of the amounts previously received as 2281
a refund, together with regular interest covering the period from 2282
the date of refund to the date of repayment, but such repayment 2283
shall not be made for more than five (5) years of service. 2284
Repayment for that time shall be made beginning with the most 2285
recent service for which refund has been made. Upon the repayment 2286
of all or part of that refund and interest, the member shall again 2287
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receive credit for the period of creditable service for which full 2288
repayment has been made to the system. 2289
(4) (a) In order to provide a source of income to members 2290
who have applied for disability benefits under Section 25-11-113 2291
or 25-11-114, the board may provide, at the employee's election, a 2292
temporary benefit to be paid from the member's accumulated 2293
contributions, if any, without forfeiting the right to pursue 2294
disability benefits, provided that the member has exhausted all 2295
personal and medical leave and has terminated his or her 2296
employment. The board may prescribe rules and regulations for 2297
carrying out the provisions of this subsection (4). 2298
(b) If a member who has elected to receive temporary 2299
benefits under this subsection later applies for a refund of his 2300
or her accumulated contributions, all amounts paid under this 2301
subsection shall be deducted from the accumulated contributions 2302
and the balance will be paid to the member. If a member who has 2303
elected to receive temporary benefits under this subsection is 2304
later approved for a disability retirement allowance, and a 2305
service retirement allowance or survivor benefits are paid on the 2306
account, the board shall adjust the benefits in such a manner that 2307
no more than the actuarial equivalent of the benefits to which the 2308
member or beneficiary was or is entitled shall be paid. 2309
(c) The board may study, develop and propose a 2310
disability benefit structure, including short- and long-term 2311
disability benefits, provided that it is the actuarial equivalent 2312
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of the benefits currently provided in Section 25-11-113 or 2313
25-11-114. 2314
SECTION 10. Section 25-11-119, Mississippi Code of 1972, is 2315
amended as follows: 2316
25-11-119. (1) The board shall keep such data as shall be 2317
necessary for actuarial valuation of the assets and liabilities of 2318
the system and for checking its operating experience. 2319
(2) The board shall keep minutes which shall be open to 2320
public inspection. It shall have the accounts of the system 2321
audited annually by the State Audit Department and shall publish 2322
as of the end of each fiscal year a report showing the fiscal 2323
transactions of the system for the preceding fiscal year, the 2324
amount of the accumulated cash and securities of the system, a 2325
statement of income and expenditures, a statement of investments 2326
acquired and disposed of, and a balance sheet showing the 2327
financial condition of the system by means of an actuarial 2328
valuation of its assets and liabilities. It shall also publish a 2329
synopsis of the report. 2330
(3) The board shall establish a general office for the 2331
meeting of the board and for the administrative personnel; provide 2332
for the installation of an adequate system of books, accounts, and 2333
records which will give effect to all requirements of Articles 1 2334
and 3; and credit all assets received by the funds according to 2335
the purposes for which they are held. All books, accounts and 2336
records shall be kept in the general office of the board and shall 2337
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be public records except for individual member records. The 2338
system shall not disclose the name, address or contents of any 2339
individual member records without the prior written consent of the 2340
individual to whom the record pertains, except as authorized by 2341
regulations of the board. 2342
(4) The board shall hold regular meetings at least quarterly 2343
in each year and such special meetings as may be deemed necessary. 2344
All meetings shall be open to the public. 2345
(5) The board shall have power to make contracts, and to sue 2346
and be sued, under the name of the Board of Trustees of the Public 2347
Employees' Retirement System of Mississippi. 2348
(6) Legal advisor. The Attorney General shall be the legal 2349
advisor of the board; and the board may employ counsel when 2350
needed. 2351
(7) Medical board. The board may designate a medical board 2352
to be composed of three (3) physicians or may contract with 2353
another governmental agency or nongovernmental disability 2354
determination service that is qualified to make disability 2355
determinations. If required, other physicians may be engaged to 2356
report on special cases. The medical board or other governmental 2357
or nongovernmental disability determination service agency so 2358
designated shall arrange for, and pass upon, all medical 2359
examinations required under the provisions of this article; shall 2360
investigate all essential statements and certificates by or on 2361
behalf of a member in connection with an application for 2362
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disability retirement; and shall report in writing to the board of 2363
trustees its conclusions and recommendations upon all the matters 2364
referred to it. 2365
(8) Duties of actuary. The board of trustees shall 2366
designate an actuary who shall be the technical advisor of the 2367
board on matters regarding the operation of the system, and shall 2368
perform such other duties as are required in connection therewith. 2369
(9) At least once in each two-year period, the actuary shall 2370
make an actuarial survey of the mortality, service, withdrawal and 2371
compensation experience of the members and beneficiaries of the 2372
retirement system, and shall make a valuation of the assets and 2373
liabilities of the system. Taking into account the result of such 2374
investigation and valuation, the board of trustees shall adopt for 2375
the retirement system such mortality, service, and other tables as 2376
shall be deemed necessary. On the basis of such tables as the 2377
board of trustees shall adopt, the actuary shall make valuations 2378
of the assets and liabilities of the funds of the system. 2379
(10) The board shall cause to be published online, on an 2380
annual basis, the results of the actuarial surveys to enable 2381
lawmakers and the public to monitor the fiscal health of the 2382
system. 2383
(11) The board shall provide annual retirement planning 2384
seminars for all members of the system. 2385
SECTION 11. Section 25-11-127, Mississippi Code of 1972, is 2386
amended as follows: 2387
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25-11-127. (1) (a) No person who is being paid a 2388
retirement allowance or a pension after retirement under this 2389
article shall be employed or paid for any service by the State of 2390
Mississippi, including services as an employee, contract worker, 2391
contractual employee or independent contractor, until the retired 2392
person has been retired for not less than ninety (90) consecutive 2393
days from his or her effective date of retirement. After the 2394
person has been retired for not less than ninety (90) consecutive 2395
days from his or her effective date of retirement or such later 2396
date as established by the board, he or she may be reemployed 2397
while being paid a retirement allowance under the terms and 2398
conditions provided in this section or in Section 25-11-126. 2399
(b) No retiree of this retirement system who is 2400
reemployed or is reelected to office after retirement shall 2401
continue to draw retirement benefits while so reemployed, except 2402
as provided in this section or in Section 25-11-126. 2403
(c) No person employed or elected under the exceptions 2404
provided for in this section shall become a member under Article 3 2405
of the retirement system. 2406
(2) Except as otherwise provided in Section 25-11-126, any 2407
person who has been retired under the provisions of Article 3 and 2408
who is later reemployed in service covered by this article shall 2409
cease to receive benefits under this article and shall again 2410
become a contributing member of the retirement system. When the 2411
person retires again, if the reemployment exceeds six (6) months, 2412
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the person shall have his or her benefit recomputed, including 2413
service after again becoming a member, provided that the total 2414
retirement allowance paid to the retired member in his or her 2415
previous retirement shall be deducted from the member's retirement 2416
reserve and taken into consideration in recalculating the 2417
retirement allowance under a new option selected. 2418
(3) The board shall have the right to prescribe rules and 2419
regulations for carrying out the provisions of this section. 2420
(4) The provisions of this section shall not be construed to 2421
prohibit any retiree, regardless of age, from being employed and 2422
drawing a retirement allowance either: 2423
(a) For a period of time not to exceed one-half (1/2) 2424
of the normal working days for the position in any fiscal year 2425
during which the retiree will receive no more than one-half (1/2) 2426
of the salary in effect for the position at the time of 2427
employment, or 2428
(b) For a period of time in any fiscal year sufficient 2429
in length to permit a retiree to earn not in excess of twenty-five 2430
percent (25%) of retiree's average compensation. 2431
To determine the normal working days for a position under 2432
paragraph (a) of this subsection, the employer shall determine the 2433
required number of working days for the position on a full-time 2434
basis and the equivalent number of hours representing the 2435
full-time position. The retiree then may work up to one-half 2436
(1/2) of the required number of working days or up to one-half 2437
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(1/2) of the equivalent number of hours and receive up to one-half 2438
(1/2) of the salary for the position. In the case of employment 2439
with multiple employers, the limitation shall equal one-half (1/2) 2440
of the number of days or hours for a single full-time position. 2441
Notice shall be given in writing to the executive director, 2442
setting forth the facts upon which the employment is being made, 2443
and the notice shall be given within five (5) days from the date 2444
of employment and also from the date of termination of the 2445
employment. 2446
(5) Except as otherwise provided in subsection (6) of this 2447
section, the employer of any person who is receiving a retirement 2448
allowance and who is employed in service covered by subsection (4) 2449
of this section as an employee or a contractual employee shall pay 2450
to the board the full amount of the employer's contribution on the 2451
amount of compensation received by the retiree for his or her 2452
employment in accordance with regulations prescribed by the board. 2453
The retiree shall not receive any additional creditable service in 2454
the retirement system as a result of the payment of the employer's 2455
contribution. This subsection does not apply to persons who are 2456
receiving a retirement allowance and who contract with an employer 2457
to provide services as a true independent contractor, as defined 2458
by the board through regulation. 2459
(6) (a) A member may retire and continue in municipal or 2460
county elective office provided that the member has reached the 2461
age and/or service requirement that will not result in a 2462
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prohibited in-service distribution as defined by the Internal 2463
Revenue Service, or a retiree may be elected to a municipal or 2464
county office, provided that the person: 2465
(i) Files annually, in writing, in the office of 2466
the employer and the office of the executive director of the 2467
system before the person takes office or as soon as possible after 2468
retirement, a waiver of all salary or compensation and elects to 2469
receive in lieu of that salary or compensation a retirement 2470
allowance as provided in this section, in which event no salary or 2471
compensation shall thereafter be due or payable for those 2472
services; however, any such officer or employee may receive, in 2473
addition to the retirement allowance, office expense allowance, 2474
mileage or travel expense authorized by any statute of the State 2475
of Mississippi; or 2476
(ii) Elects to receive compensation for that 2477
elective office in an amount not to exceed twenty-five percent 2478
(25%) of the retiree's average compensation. In order to receive 2479
compensation as allowed in this subparagraph, the retiree shall 2480
file annually, in writing, in the office of the employer and the 2481
office of the executive director of the system, an election to 2482
receive, in addition to a retirement allowance, compensation as 2483
allowed in this subparagraph. 2484
(b) The municipality or county in which the retired 2485
person holds elective office shall pay to the board the amount of 2486
the employer's contributions on the full amount of the regular 2487
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compensation for the elective office that the retired person 2488
holds. 2489
(c) As used in this subsection, the term "compensation" 2490
does not include office expense allowance, mileage or travel 2491
expense authorized by a statute of the State of Mississippi. 2492
(7) Any retired teacher who returns to work in accordance 2493
with this section shall not be eligible to return to work under 2494
the provisions of Section 25-11-126. 2495
(8) (a) Notwithstanding any other provision of this 2496
article, the board may establish a Deferred Retirement Option Plan 2497
("DROP") for employees who became members of the system on or 2498
after March 1, 2026. Such a member who has attained eligibility 2499
for retirement under this article may elect to participate in the 2500
DROP in lieu of terminating employment. Upon election, the 2501
member's monthly service retirement benefit shall be calculated 2502
and fixed as of the effective date of participation and shall not 2503
thereafter be increased by additional service or compensation. 2504
(b) During participation in the DROP, the member shall 2505
continue in covered employment and receive full compensation, but 2506
no service credit shall accrue, and no additional employer or 2507
employee contributions shall be made on behalf of the member, 2508
except as may be required for other benefits authorized by law. 2509
The monthly retirement benefit that would otherwise have been 2510
payable to the member shall be credited to a notional or 2511
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individual DROP account established for the member, together with 2512
interest or earnings as determined by the board. 2513
(c) Participation in the DROP shall be limited to a 2514
period not to exceed five (5) years. Upon termination of covered 2515
employment, the member shall begin receiving the monthly 2516
retirement benefit previously fixed and shall be entitled to 2517
receive the accumulated balance of the DROP account in a manner 2518
determined by the board and consistent with applicable federal tax 2519
law. Participation in the DROP shall not be construed as a 2520
termination of employment for any purpose under state or federal 2521
law. 2522
SECTION 12. Section 25-11-147, Mississippi Code of 1972, is 2523
amended as follows: 2524
25-11-147. (1) Each person becoming a member of the system 2525
on or after March 1, 2026, shall have, in addition to the defined 2526
benefit plan under this article, a defined contribution plan 2527
meeting the requirements of Section 401(a) of the Internal Revenue 2528
Code. A portion of the employee's contributions shall be 2529
deposited into the employee's defined contribution account, as 2530
provided in Section 25-11-123, and the employer shall contribute 2531
an amount not less than three percent (3%) of the employee's 2532
contribution amount, and not less than five percent (5%) for an 2533
employee who is a first responder. For an employee who has 2534
completed at least five (5) years of membership service as a first 2535
responder, the employer's minimum contribution shall be six 2536
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percent (6%) of the employee's contribution amount. For an 2537
employee who has completed at least ten (10) years of membership 2538
service as a first responder, the employer's minimum contribution 2539
shall be seven percent (7%) of the employee's contribution amount. 2540
For an employee who has completed at least fifteen (15) years of 2541
membership service as a first responder, the employer's minimum 2542
contribution shall be eight percent (8%) of the employee's 2543
contribution amount. For every employee who has completed ten 2544
(10) years of membership service, whether as a first responder or 2545
not, the employer shall contribute a one-time amount of Two 2546
Thousand Dollars ($2,000.00) to the employee's defined 2547
contribution account. In addition, the employer may elect to 2548
contribute an amount up to the maximum pretax amount allowable 2549
under federal law for plans under Section 401(a) of the Internal 2550
Revenue Code. Members shall be vested immediately in the defined 2551
contribution plan. 2552
(2) (a) Pursuant to Section 401(a) of the Internal Revenue 2553
Code, the board may establish a defined contribution, qualified 2554
plan under which a portion of the employee's mandatory 2555
contributions shall be deposited and which meets all requirements 2556
under federal and state law. To the extent state law conflicts 2557
with federal law, federal law shall govern the plan document to 2558
maintain the federal tax qualified status. The board, in its 2559
fiduciary capacity, may seek approval from the Internal Revenue 2560
Service. 2561
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(b) The administration of the defined contribution plan 2562
shall be under the direction of the system. The defined 2563
contribution plan shall be operated in accordance with the 2564
guidelines established by the Internal Revenue Service for Section 2565
401(a) plans as reflected in the plan document, as may be modified 2566
from time to time by the board of trustees, and including optional 2567
variable employer contributions and a process for hardship 2568
withdrawals by members. Payroll reductions shall be made, in each 2569
instance, by the appropriate payroll officer. The administrator 2570
of the defined contribution plan may contract with a private 2571
corporation or institution for providing consolidated billing and 2572
other administrative services if deemed necessary by the 2573
administrator. 2574
(c) The board of trustees may assess the employer an 2575
amount, out of the employer's contribution rate under Section 2576
25-11-123, up to two-tenths percent (0.2%) of the participant's 2577
total earned compensation as defined in Section 25-11-103 to 2578
provide for the administrative expenses of operating the defined 2579
contribution plan, including, but not limited to, the services of 2580
auditors, consultants, money managers and third-party 2581
administrators. 2582
(3) Each participating member shall direct the investment of 2583
the individual's accumulated employer and employee contributions 2584
and earnings to one or more investment choices within available 2585
categories of investment provided by the board. The board shall 2586
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provide an investment menu of investment options. In establishing 2587
the investment options, the board shall: 2588
(a) Include predetermined investment portfolio options 2589
constructed to reflect different risk profiles that automatically 2590
reallocate and rebalance contributions as a participating member 2591
ages; and 2592
(b) Allow a participating member to construct an 2593
investment portfolio using some or all of the investment options. 2594
SECTION 13. Section 25-11-123, Mississippi Code of 1972, is 2595
brought forward as follows: 2596
25-11-123. All of the assets of the system shall be credited 2597
according to the purpose for which they are held to one (1) of 2598
four (4) reserves; namely, the annuity savings account, the 2599
annuity reserve, the employer's accumulation account, and the 2600
expense account; however, any employee who became a member of the 2601
system on or after March 1, 2026, shall also have a defined 2602
contribution plan administered by the system, as provided in 2603
Section 25-11-147. 2604
(a) Annuity savings account. In the annuity savings 2605
account shall be accumulated the contributions made by members to 2606
provide for their annuities, including interest thereon which 2607
shall be posted monthly. Credits to and charges against the 2608
annuity savings account shall be made as follows: 2609
(1) Beginning July 1, 2010, except as otherwise 2610
provided in Section 25-11-126, the employer shall cause to be 2611
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deducted from the salary of each member on each and every payroll 2612
of the employer for each and every payroll period nine percent 2613
(9%) of earned compensation as defined in Section 25-11-103; 2614
however, for any employee who became a member of the system on or 2615
after March 1, 2026, only four percent (4%) of such earned 2616
compensation shall be deposited into the annuity savings account, 2617
with the remaining five percent (5%), to be deposited into the 2618
employee's defined contribution account authorized in Section 2619
25-11-147. Future contributions shall be fixed biennially by the 2620
board on the basis of the liabilities of the retirement system for 2621
the various allowances and benefits as shown by actuarial 2622
valuation; however, any member earning at a rate less than Sixteen 2623
Dollars and Sixty-seven Cents ($16.67) per month, or Two Hundred 2624
Dollars ($200.00) per year, shall contribute not less than One 2625
Dollar ($1.00) per month, or Twelve Dollars ($12.00) per year. 2626
(2) The deductions provided in paragraph (1) of 2627
this subsection shall be made notwithstanding that the minimum 2628
compensation provided by law for any member is reduced by the 2629
deduction. Every member shall be deemed to consent and agree to 2630
the deductions made and provided for in paragraph (1) of this 2631
subsection and shall receipt for his full salary or compensation, 2632
and payment of salary or compensation less the deduction shall be 2633
a full and complete discharge and acquittance of all claims and 2634
demands whatsoever for the services rendered by the person during 2635
the period covered by the payment, except as to the benefits 2636
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provided under Articles 1 and 3. The board shall provide by rules 2637
for the methods of collection of contributions from members and 2638
the employer. The board shall have full authority to require the 2639
production of evidence necessary to verify the correctness of 2640
amounts contributed. 2641
(b) Annuity reserve. The annuity reserve shall be the 2642
account representing the actuarial value of all annuities in 2643
force, and to it shall be charged all annuities and all benefits 2644
in lieu of annuities, payable as provided in this article. If a 2645
beneficiary retired on account of disability is restored to active 2646
service with a compensation not less than his average final 2647
compensation at the time of his last retirement, the remainder of 2648
his contributions shall be transferred from the annuity reserve to 2649
the annuity savings account and credited to his individual account 2650
therein, and the balance of his annuity reserve shall be 2651
transferred to the employer's accumulation account. 2652
(c) Employer's accumulation account. The employer's 2653
accumulation account shall represent the accumulation of all 2654
reserves for the payment of all retirement allowances and other 2655
benefits payable from contributions made by the employer, and 2656
against this account shall be charged all retirement allowances 2657
and other benefits on account of members. Credits to and charges 2658
against the employer's accumulation account shall be made as 2659
follows: 2660
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(1) On account of each member who became a member 2661
of the system before March 1, 2026, there shall be paid monthly 2662
into the employer's accumulation account by the employers for the 2663
preceding fiscal year an amount equal to a certain percentage of 2664
the total earned compensation, as defined in Section 25-11-103, of 2665
each member. From and after May 9, 2024, the increase in the 2666
employer's contribution rate scheduled to take effect on July 1, 2667
2024, is rescinded and shall not take effect; however, on July 1 2668
of each year from 2024 through 2028, the employer's contribution 2669
rate shall be increased by one-half percent (1/2%). For each 2670
member who became a member of the system on or after March 1, 2671
2026, except as provided in Section 25-11-147, the employer's 2672
monthly payment under this paragraph (1) shall be applied to the 2673
accrued liability contribution fund. 2674
(2) For the public good, any recommendation by the 2675
board to adjust the employer contributions may be accompanied by 2676
at least two (2) assessments from actuaries who are independent 2677
from each other and the retirement plan. The actuaries shall 2678
analyze the economic impact of any such recommendation to the 2679
system and state, including, but not limited to, information 2680
showing the fiscal impact to every agency and arm of the state, 2681
including, but not limited to, state agencies, cities, counties 2682
and school districts. The actuarial assessments, with any such 2683
recommendation to adjust the employer contributions, shall be 2684
submitted to the Lieutenant Governor, Speaker of the House, 2685
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Chairman of the Senate Appropriations Committee and Chairman of 2686
the House Appropriations Committee. 2687
(3) The board shall have the authority to make 2688
recommendations regarding additional funding sources for the 2689
retirement plan, including employer contribution increases, based 2690
on the assets and liabilities of the retirement plan, and the 2691
analyses required by paragraph (2) of this subsection (c). The 2692
Legislature shall have the sole authority to implement any such 2693
recommendations. It is the intent of the Legislature that, in the 2694
2025 Regular Session, a law be enacted to create a new tier for 2695
future members of the system, in furtherance of the system's 2696
continued financial stability and sustainability. 2697
(4) This section shall not be construed to provide 2698
authority to reduce or eliminate any earned benefits to be 2699
provided by the state to persons who, before July 1, 2025, are 2700
drawing a retirement allowance or are members of the system. 2701
(5) On the basis of regular interest and of such 2702
mortality and other tables as are adopted by the board of 2703
trustees, the actuary engaged by the board to make each valuation 2704
required by this article during the period over which the accrued 2705
liability contribution is payable, immediately after making that 2706
valuation, shall determine the uniform and constant percentage of 2707
the earnable compensation of each member which, if contributed by 2708
the employer on the basis of compensation of the member throughout 2709
his entire period of membership service, would be sufficient to 2710
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provide for the payment of any retirement allowance payable on his 2711
account for that service. The percentage rate so determined shall 2712
be known as the "normal contribution rate." After the accrued 2713
liability contribution has ceased to be payable, the normal 2714
contribution rate shall be the percentage rate of the salary of 2715
all members obtained by deducting from the total liabilities on 2716
account of membership service the amount in the employer's 2717
accumulation account, and dividing the remainder by one percent 2718
(1%) of the present value of the prospective future salaries of 2719
all members as computed on the basis of the mortality and service 2720
tables adopted by the board of trustees and regular interest. The 2721
normal rate of contributions shall be determined by the actuary 2722
after each valuation. 2723
(6) The total amount payable in each year to the 2724
employer's accumulation account shall not be less than the sum of 2725
the percentage rate known as the "normal contribution rate" and 2726
the "accrued liability contribution rate" of the total 2727
compensation earnable by all members during the preceding year, 2728
provided that the payment by the employer shall be sufficient, 2729
when combined with the amounts in the account, to provide the 2730
allowances and other benefits chargeable to this account during 2731
the year then current. 2732
(7) The accrued liability contribution shall be 2733
discontinued as soon as the accumulated balance in the employer's 2734
accumulation account shall equal the present value, computed on 2735
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the basis of the normal contribution rate then in force, or the 2736
prospective normal contributions to be received on account of all 2737
persons who are at that time members. 2738
(8) All allowances and benefits in lieu thereof, 2739
with the exception of those payable on account of members who 2740
receive no prior service credit, payable from contributions of the 2741
employer, shall be paid from the employer's accumulation account. 2742
(9) Upon the retirement of a member, an amount 2743
equal to his retirement allowance shall be transferred from the 2744
employer's accumulation account to the annuity reserve. 2745
(10) The employer's accumulation account shall be 2746
credited with any assets authorized by law to be credited to the 2747
account. 2748
(d) Expense account. The expense account shall be the 2749
account to which the expenses of the administration of the system 2750
shall be charged, exclusive of amounts payable as retirement 2751
allowances and as other benefits provided herein. The Legislature 2752
shall make annual appropriations in amounts sufficient to 2753
administer the system, which shall be credited to this account. 2754
There shall be transferred to the State Treasury from this 2755
account, not less than once per month, an amount sufficient for 2756
payment of the estimated expenses of the system for the succeeding 2757
thirty (30) days. Any interest earned on the expense account 2758
shall accrue to the benefit of the system. However, 2759
notwithstanding the provisions of Sections 25-11-15(10) and 2760
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25-11-105(f)(v)5, all expenses of the administration of the system 2761
shall be paid from the interest earnings, provided the interest 2762
earnings are in excess of the actuarial interest assumption as 2763
determined by the board, and provided the present cost of the 2764
administrative expense fee of two percent (2%) of the 2765
contributions reported by the political subdivisions and 2766
instrumentalities shall be reduced to one percent (1%) from and 2767
after July 1, 1983, through June 30, 1984, and shall be eliminated 2768
thereafter. 2769
(e) Collection of contributions. The employer shall 2770
cause to be deducted on each and every payroll of a member for 2771
each and every payroll period, beginning subsequent to January 31, 2772
1953, the contributions payable by the member as provided in 2773
Articles 1 and 3. 2774
The employer shall make deductions from salaries of employees 2775
as provided in Articles 1 and 3 and shall transmit monthly, or at 2776
such time as the board of trustees designates, the amount 2777
specified to be deducted to the Executive Director of the Public 2778
Employees' Retirement System. The executive director, after 2779
making a record of all those receipts, shall deposit such amounts 2780
as provided by law. 2781
(f) (1) The sum of the normal contribution rate and 2782
the accrued liability contribution rate shall be known as the 2783
"employer's contribution rate." 2784
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(2) The amount payable by the employer on account 2785
of normal and accrued liability contributions shall be determined 2786
by applying the employer's contribution rate to the amount of 2787
compensation earned by employees who are members of the system. 2788
Monthly, or at such time as the board of trustees designates, each 2789
department or agency shall compute the amount of the employer's 2790
contribution payable, with respect to the salaries of its 2791
employees who are members of the system, and shall cause that 2792
amount to be paid to the board of trustees from the personal 2793
service allotment of the amount appropriated for the operation of 2794
the department or agency, or from funds otherwise available to the 2795
agency, for the payment of salaries to its employees. 2796
(3) Except as otherwise provided in Section 2797
25-11-106: 2798
(i) Constables shall pay employer and 2799
employee contributions on their net fee income as well as the 2800
employee contributions on all direct treasury or county payroll 2801
income. 2802
(ii) The county shall be responsible for the 2803
employer contribution on all direct treasury or county payroll 2804
income of constables. 2805
(4) Except as otherwise provided in Section 2806
25-11-106.1, chancery and circuit clerks shall be responsible for 2807
both the employer and employee share of contributions on the 2808
proportionate share of net income attributable to fees, as well as 2809
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the employee share of net income attributable to direct treasury 2810
or county payroll income, and the employing county shall be 2811
responsible for the employer contributions on the net income 2812
attributable to direct treasury or county payroll income. 2813
(5) Once each year, under procedures established 2814
by the system, each employer shall submit to the Public Employees' 2815
Retirement System a copy of their report to Social Security of all 2816
employees' earnings. 2817
(6) The board shall provide by rules for the 2818
methods of collection of contributions of employers and members. 2819
The amounts determined due by an agency to the various funds as 2820
specified in Articles 1 and 3 are made obligations of the agency 2821
to the board and shall be paid as provided herein. Failure to 2822
deduct those contributions shall not relieve the employee and 2823
employer from liability thereof. Delinquent employee 2824
contributions and any accrued interest shall be the obligation of 2825
the employee and delinquent employer contributions and any accrued 2826
interest shall be the obligation of the employer. The employer 2827
may, in its discretion, elect to pay any or all of the interest on 2828
delinquent employee contributions. From and after July 1, 1996, 2829
under rules and regulations established by the board, all 2830
employers are authorized and shall transfer all funds due to the 2831
Public Employees' Retirement System electronically and shall 2832
transmit any wage or other reports by computerized reporting 2833
systems. 2834
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ST: PERS; reform Tier 5.
SECTION 14. This act shall take effect and be in force from 2835
and after July 1, 2026. 2836