PERS Tier 5; reduce creditable service requirement for retirement regardless of age from 35 to 30 years.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Sparks, Simmons (13th)

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2909

AN ACT TO AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 1972, 1
TO REDUCE THE CREDITABLE SERVICE REQUIREMENT FOR RETIREMENT 2
REGARDLESS OF AGE FROM 35 YEARS TO 30 YEARS FOR MEMBERS OF THE 3
PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHO BECAME MEMBERS ON OR AFTER 4
MARCH 1, 2026; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 25-11-111, Mississippi Code of 1972, is 7
amended as follows: 8
25-11-111. (a) (1) Any member who became a member of the 9
system before July 1, 2007, upon withdrawal from service upon or 10
after attainment of the age of sixty (60) years who has completed 11
at least four (4) years of membership service, or any member who 12
became a member of the system before July 1, 2011, upon withdrawal 13
from service regardless of age who has completed at least 14
twenty-five (25) years of creditable service, shall be entitled to 15
receive a retirement allowance, which shall begin on the first of 16
the month following the date the member's application for the 17
allowance is received by the board, but in no event before 18
withdrawal from service. 19
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(2) Any member who became a member of the system on or 20
after July 1, 2007, but before March 1, 2026, upon withdrawal from 21
service upon or after attainment of the age of sixty (60) years 22
who has completed at least eight (8) years of membership service, 23
or any member who became a member of the system on or after July 24
1, 2011, but before March 1, 2026, upon withdrawal from service 25
regardless of age who has completed at least thirty (30) years of 26
creditable service, shall be entitled to receive a retirement 27
allowance, which shall begin on the first of the month following 28
the date the member's application for the allowance is received by 29
the board, but in no event before withdrawal from service. 30
(3) Any member who became a member of the system on or 31
after March 1, 2026, upon withdrawal from service upon or after 32
attainment of the age of sixty-two (62) years who has completed at 33
least eight (8) years of membership service, or upon withdrawal 34
from service regardless of age who has completed at least * * * 35
thirty (30) years of creditable service, shall be entitled to 36
receive a retirement allowance, which shall begin on the first of 37
the month following the date the member's application for the 38
allowance is received by the board, but in no event before 39
withdrawal from service. 40
(b) (1) Any member who became a member of the system before 41
July 1, 2007, whose withdrawal from service occurs before 42
attaining the age of sixty (60) years who has completed four (4) 43
or more years of membership service and has not received a refund 44
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of his accumulated contributions, shall be entitled to receive a 45
retirement allowance, beginning upon his attaining the age of 46
sixty (60) years, of the amount earned and accrued at the date of 47
withdrawal from service. The retirement allowance shall begin on 48
the first of the month following the date the member's application 49
for the allowance is received by the board, but in no event before 50
withdrawal from service. 51
(2) Any member who became a member of the system on or 52
after July 1, 2007, but before March 1, 2026, whose withdrawal 53
from service occurs before attaining the age of sixty (60) years 54
who has completed eight (8) or more years of membership service 55
and has not received a refund of his accumulated contributions, 56
shall be entitled to receive a retirement allowance, beginning 57
upon his attaining the age of sixty (60) years, of the amount 58
earned and accrued at the date of withdrawal from service. The 59
retirement allowance shall begin on the first of the month 60
following the date the member's application for the allowance is 61
received by the board, but in no event before withdrawal from 62
service. 63
(3) Any member who became a member of the system on or 64
after March 1, 2026, whose withdrawal from service occurs before 65
attaining the age of sixty-two (62) years who has completed eight 66
(8) or more years of membership service and has not received a 67
refund of his accumulated contributions, shall be entitled to 68
receive a retirement allowance, beginning upon his attaining the 69
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age of sixty-two (62) years, of the amount earned and accrued at 70
the date of withdrawal from service. The retirement allowance 71
shall begin on the first of the month following the date the 72
member's application for the allowance is received by the board, 73
but in no event before withdrawal from service. 74
(c) Any member in service who has qualified for retirement 75
benefits may select any optional method of settlement of 76
retirement benefits by notifying the Executive Director of the 77
Board of Trustees of the Public Employees' Retirement System in 78
writing, on a form prescribed by the board, of the option he has 79
selected and by naming the beneficiary of the option and 80
furnishing necessary proof of age. The option, once selected, may 81
be changed at any time before actual retirement or death, but upon 82
the death or retirement of the member, the optional settlement 83
shall be placed in effect upon proper notification to the 84
executive director. 85
(d) Any member who became a member of the system before July 86
1, 2011, shall be entitled to an annual retirement allowance which 87
shall consist of: 88
(1) A member's annuity, which shall be the actuarial 89
equivalent of the accumulated contributions of the member at the 90
time of retirement computed according to the actuarial table in 91
use by the system; and 92
(2) An employer's annuity, which, together with the 93
member's annuity provided above, shall be equal to two percent 94
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(2%) of the average compensation for each year of service up to 95
and including twenty-five (25) years of creditable service, and 96
two and one-half percent (2-1/2%) of the average compensation for 97
each year of service exceeding twenty-five (25) years of 98
creditable service. 99
(3) Any retired member or beneficiary thereof who was 100
eligible to receive a retirement allowance before July 1, 1991, 101
and who is still receiving a retirement allowance on July 1, 1992, 102
shall receive an increase in the annual retirement allowance of 103
the retired member equal to one-eighth of one percent (1/8 of 1%) 104
of the average compensation for each year of state service in 105
excess of twenty-five (25) years of membership service up to and 106
including thirty (30) years. The maximum increase shall be 107
five-eighths of one percent (5/8 of 1%). In no case shall a 108
member who has been retired before July 1, 1987, receive less than 109
Ten Dollars ($10.00) per month for each year of creditable service 110
and proportionately for each quarter year thereof. Persons 111
retired on or after July 1, 1987, shall receive at least Ten 112
Dollars ($10.00) per month for each year of service and 113
proportionately for each quarter year thereof reduced for the 114
option selected. However, such Ten Dollars ($10.00) minimum per 115
month for each year of creditable service shall not apply to a 116
retirement allowance computed under Section 25-11-114 based on a 117
percentage of the member's average compensation. 118
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(e) Any member who became a member of the system on or after 119
July 1, 2011, but before March 1, 2026, shall be entitled to an 120
annual retirement allowance which shall consist of: 121
(1) A member's annuity, which shall be the actuarial 122
equivalent of the accumulated contributions of the member at the 123
time of retirement computed according to the actuarial table in 124
use by the system; and 125
(2) An employer's annuity, which, together with the 126
member's annuity provided above, shall be equal to two percent 127
(2%) of the average compensation for each year of service up to 128
and including thirty (30) years of creditable service, and two and 129
one-half percent (2-1/2%) of average compensation for each year of 130
service exceeding thirty (30) years of creditable service. 131
(f) Any member who became a member of the system on or after 132
July 1, 2011, but before March 1, 2026, upon withdrawal from 133
service upon or after attaining the age of sixty (60) years who 134
has completed at least eight (8) years of membership service, or 135
any such member upon withdrawal from service regardless of age who 136
has completed at least thirty (30) years of creditable service, 137
shall be entitled to receive a retirement allowance computed in 138
accordance with the formula set forth in subsection (e) of this 139
section. In the case of the retirement of any member who has 140
attained age sixty (60) but who has not completed at least thirty 141
(30) years of creditable service, the retirement allowance shall 142
be computed in accordance with the formula set forth in subsection 143
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(e) of this section except that the total annual retirement 144
allowance shall be reduced by an actuarial equivalent factor for 145
each year of creditable service below thirty (30) years or the 146
number of years in age that the member is below age sixty-five 147
(65), whichever is less. 148
(g) Any member who became a member of the system on or after 149
March 1, 2026, upon withdrawal from service upon or after 150
attainment of the age of sixty-five (65) years who has completed 151
at least eight (8) years of membership service, * * * or upon 152
withdrawal from service regardless of age who has completed at 153
least * * * thirty (30) years of creditable service, shall be 154
entitled to an annual retirement allowance which shall consist of 155
a member's annuity, which annuity shall be equal to one percent 156
(1%) of the average compensation for each year of creditable 157
service. In the case of the retirement of any member who has 158
attained the age of sixty-two (62) but has not completed at least 159
thirty (30) years of creditable service, the total annual 160
retirement allowance specified in this subsection (g) shall be 161
reduced by an actuarial equivalent factor for each year of 162
creditable service below thirty (30) years or the number of years 163
in age that the member is below age sixty-five (65), whichever is 164
less. 165
(h) No member, except members excluded by the Age 166
Discrimination in Employment Act Amendments of 1986 (Public Law 167
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99-592), under either Article 1 or Article 3 in state service 168
shall be required to retire because of age. 169
(i) No payment on account of any benefit granted under the 170
provisions of this section shall become effective or begin to 171
accrue until January 1, 1953. 172
(j) (1) A retiree or beneficiary may, on a form prescribed 173
by and filed with the retirement system, irrevocably waive all or 174
a portion of any benefits from the retirement system to which the 175
retiree or beneficiary is entitled. The waiver shall be binding 176
on the heirs and assigns of any retiree or beneficiary and the 177
same must agree to forever hold harmless the Public Employees' 178
Retirement System of Mississippi from any claim to the waived 179
retirement benefits. 180
(2) Any waiver under this subsection shall apply only 181
to the person executing the waiver. A beneficiary shall be 182
entitled to benefits according to the option selected by the 183
member at the time of retirement. However, a beneficiary may, at 184
the option of the beneficiary, execute a waiver of benefits under 185
this subsection. 186
(3) The retirement system shall retain in the annuity 187
reserve account amounts that are not used to pay benefits because 188
of a waiver executed under this subsection. 189
(4) The board of trustees may provide rules and 190
regulations for the administration of waivers under this 191
subsection. 192
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ST: PERS Tier 5; reduce creditable service
requirement for retirement regardless of age
from 35 to 30 years.
SECTION 2. This act shall take effect and be in force from 193
and after March 1, 2026. 194