PERS; allow Tier 5 members to receive 3% COLA, but not to exceed $15,000.00 in any single year.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Barnett

SENATE BILL NO. 2903

AN ACT TO AMEND SECTION 25-11-112, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT ANY MEMBER OF THE PUBLIC EMPLOYEES' RETIREMENT 2
SYSTEM OF MISSISSIPPI WHO BECAME A MEMBER OF THE SYSTEM ON OR 3
AFTER MARCH 1, 2026, SHALL RECEIVE A 3% COST-OF-LIVING ADJUSTMENT, 4
EXCEPT THAT SUCH AMOUNT SHALL NOT EXCEED $15,000.00 IN ANY YEAR; 5
TO PROVIDE THAT, EVERY THREE YEARS, THE LEGISLATURE MAY EVALUATE 6
WHETHER THIS MAXIMUM DOLLAR AMOUNT SHALL BE RAISED DUE TO THE RATE 7
OF INFLATION; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 25-11-112, Mississippi Code of 1972, is 10
amended as follows: 11
25-11-112. (1) Any member who * * * is receiving a 12
retirement allowance for service or disability retirement, or any 13
beneficiary thereof, who has received a monthly benefit for at 14
least one (1) full fiscal year, shall be eligible to receive an 15
additional benefit, on December 1 or July 1 of the year as 16
provided in subsection (3) of this section, equal to an amount 17
calculated under paragraph (a) or (b) below: 18
(a) For any member who became a member of the system 19
before July 1, 2011, the sum of: 20
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(i) An amount equal to three percent (3%) of the 21
annual retirement allowance multiplied by the number of full 22
fiscal years in retirement before the end of the fiscal year in 23
which the member reaches age fifty-five (55), plus 24
(ii) An additional amount equal to three percent 25
(3%) compounded by the number of full fiscal years in retirement 26
beginning with the fiscal year in which the member reaches age 27
fifty-five (55), multiplied by the amount of the annual retirement 28
allowance. 29
(b) For any member who became a member of the system on 30
or after July 1, 2011, but before March 1, 2026, the sum of: 31
(i) An amount equal to three percent (3%) of the 32
annual retirement allowance multiplied by the number of full 33
fiscal years in retirement before the end of the fiscal year in 34
which the member reaches age sixty (60), plus 35
(ii) An additional amount equal to three percent 36
(3%) compounded by the number of full fiscal years in retirement 37
beginning with the fiscal year in which the member reaches age 38
sixty (60), multiplied by the amount of the annual retirement 39
allowance. 40
(c) Any member who became a member of the system on or 41
after March 1, 2026, shall receive an amount as calculated under 42
paragraph (b) of this subsection (1), except that such amount 43
shall not exceed Fifteen Thousand Dollars ($15,000.00) in any 44
year. Every three (3) years, the Legislature may evaluate whether 45
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the maximum dollar amount provided in this paragraph (c) shall be 46
raised due to the rate of inflation. 47
(2) The calculation of the beneficiary's additional benefit 48
under subsection (1) * * * of this section shall be based on the 49
member's age and full fiscal years in retirement as if the member 50
had lived. 51
(3) (a) The additional benefit provided for under this 52
section shall be paid in one (1) payment in December of each year 53
to those persons who are receiving a retirement allowance on 54
December 1 of that year, unless an election is made under this 55
subsection. However, if a retiree who is receiving a retirement 56
allowance that will terminate upon the retiree's death is 57
receiving the additional benefit in one (1) payment and dies on or 58
after July 1 but before December 1, the beneficiary designated on 59
the retirement application, if any, shall receive in a single 60
payment a fractional part of the additional benefit based on the 61
number of months in which a retirement allowance was received 62
during the fiscal year. Likewise, if a retiree is receiving a 63
retirement allowance that will terminate upon his or her death in 64
two (2) to six (6) monthly installments, any remaining payments of 65
the additional benefit will be paid in a lump sum to the 66
beneficiary designated on the application, or if none, pursuant to 67
Section 25-11-117.1(1). Any similar remaining payments of 68
additional benefits payable under this section to a deceased 69
beneficiary who was receiving a monthly benefit shall be payable 70
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in accordance with the provisions of Section 25-11-117.1(2). If 71
the additional monthly benefit is being received in one (1) 72
payment, the additional benefit shall also be prorated based on 73
the number of months in which a retirement allowance was received 74
during the fiscal year when (i) the monthly benefit payable to a 75
beneficiary terminates due to the expiration of an option, 76
remarriage or cessation of dependent status or due to the 77
retiree's return to covered employment, and (ii) the monthly 78
benefit terminates on or after July 1 and before December 1. The 79
board may, in its discretion, allow a retired member or a 80
beneficiary thereof who is receiving the additional annual payment 81
in the manner provided for in this paragraph to change the manner 82
in which the additional annual payment is received to that 83
provided for in paragraph (b) of this subsection if the retired 84
member or beneficiary submits satisfactory documentation that the 85
continued receipt of the additional annual payment as provided for 86
in this paragraph will cause a financial hardship to the retired 87
member or beneficiary. 88
(b) Retired members or beneficiaries thereof who on 89
July 1, 1999, or July 1 of any fiscal year thereafter, are 90
receiving a retirement allowance, may elect by an irrevocable 91
agreement in writing filed in the Office of the Public Employees' 92
Retirement System no less than thirty (30) days before July 1 of 93
the appropriate year, to begin receiving the additional benefit 94
provided for under this section in twelve (12) equal monthly 95
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installments beginning July 1, 1999, or July 1 of any fiscal year 96
thereafter. This irrevocable agreement shall be binding on the 97
member and subsequent beneficiaries. Payment of those monthly 98
installments shall not extend beyond the month in which a 99
retirement allowance is due and payable. The board may, in its 100
discretion, allow a retired member or a beneficiary thereof who is 101
receiving the additional annual payment in the manner provided for 102
in this paragraph to change the manner in which the additional 103
annual payment is received to that provided for in paragraph (a) 104
of this subsection if the retired member or beneficiary submits 105
satisfactory documentation that the continued receipt of the 106
additional annual payment as provided for in this paragraph will 107
cause a financial hardship to the retired member or beneficiary. 108
(4) The additional payment or payments provided for under 109
this section are for the fiscal year in which they are paid. 110
(5) (a) The amount provided for under subsection (1) 111
(a)(ii) of this section is calculated using the following formula: 112
[(1.03)n - 1] x [annual retirement allowance], 113
where n is the number of full fiscal years in retirement beginning 114
with the fiscal year in which the member reaches age fifty-five 115
(55). 116
(b) The amount provided for under subsection (1)(b)(ii) 117
of this section is calculated using the following formula: 118
[(1.03)n - 1] x [annual retirement allowance], 119
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where n is the number of full fiscal years in retirement beginning 120
with the fiscal year in which the member reaches age sixty (60). 121
(6) Any retired member or beneficiary thereof who has 122
previously elected to receive the additional annual payment in 123
monthly installments may elect, upon application on a form 124
prescribed by the board of trustees, to have that payment made in 125
one (1) additional payment each year. This written election must 126
be filed in the Office of the Public Employees' Retirement System 127
before June 1, 2000, and shall be effective for the fiscal year 128
beginning July 1, 2000. 129
(7) In the event of death of a retired member or a 130
beneficiary thereof who is receiving the additional annual payment 131
in two (2) to six (6) monthly installments pursuant to an election 132
made before July 1, 1999, and who would otherwise be eligible to 133
receive the additional benefit provided for under this section in 134
one (1) payment in December of the current fiscal year, any 135
remaining amounts shall be paid in a lump sum to the designated 136
beneficiary. 137
(8) When a member retires after July 1 and has previously 138
received a retirement allowance for one or more full fiscal years, 139
the retired member shall be eligible immediately for the 140
additional benefit. The additional benefit shall be based on the 141
current retirement allowance and the number of full fiscal years 142
in retirement and shall be prorated and paid in monthly 143
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ST: PERS; allow Tier 5 members to receive 3%
COLA, but not to exceed $15,000.00 in any single
year.
installments based on the number of months a retirement allowance 144
is paid during the fiscal year. 145
* * * 146
SECTION 2. This act shall take effect and be in force from 147
and after March 1, 2026. 148