PERS; repeal Tier 5, but provide a different COLA for new hires.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Blount, Simmons (12th)

SENATE BILL NO. 2906

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