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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Sparks
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2911
AN ACT TO AMEND SECTION 25-11-127, MISSISSIPPI CODE OF 1972, 1
TO CHANGE THE REQUIRED SEPARATION PERIOD FOR RETIREES RETURNING TO 2
WORK FROM 90 DAYS TO 30 DAYS; TO CREATE AN ALTERNATIVE 3
RETURN-TO-WORK PROVISION FOR RETIREES WHO ARE NOT SUBJECT TO AN 4
ACTUARIAL REDUCTION IN THEIR RETIREMENT ALLOWANCES, EXCEPT AS A 5
RESULT OF TAKING A PARTIAL LUMP-SUM DISTRIBUTION OR ANY OTHER 6
OPTIONAL BENEFIT UNDER SECTION 25-11-115; TO ALLOW A RETIREE TO 7
RETURN TO WORK FOR A PERIOD OF TIME AS AGREED TO BETWEEN THE 8
EMPLOYEE AND THE EMPLOYER, AT COMPENSATION IN AN AMOUNT NOT TO 9
EXCEED 80% OF THE SALARY IN EFFECT FOR THE POSITION AT THE TIME OF 10
EMPLOYMENT; TO REQUIRE THE EXECUTION OF A WRITTEN AGREEMENT AFTER 11
THE CONCLUSION OF THE SEPARATION PERIOD PROVIDING CERTAIN DETAILS 12
OF THE EMPLOYMENT; TO PROVIDE THAT THE EMPLOYER SHALL PAY TO THE 13
BOARD OF TRUSTEES OF THE SYSTEM THE FULL AMOUNT OF BOTH THE 14
EMPLOYER'S AND THE EMPLOYEE'S CONTRIBUTIONS ON THE AMOUNT OF 15
COMPENSATION RECEIVED BY THE RETIREE RETURNING TO WORK; TO SPECIFY 16
THAT THE EMPLOYEE SHALL NOT GAIN ANY ADDITIONAL RIGHTS OR BENEFITS 17
TOWARD RETIREMENT FROM RETURNING TO WORK UNDER THIS ALTERNATIVE 18
RETURN-TO-WORK PROVISION; TO SPECIFY THAT EMPLOYER CONTRIBUTIONS 19
FOR EMPLOYEES RETURNING TO WORK ARE DESIGNED TO OFFSET ANY PENSION 20
LIABILITY CREATED BY THIS PROVISION; TO PROHIBIT RETIREES FROM 21
RETURNING TO WORK AS ELECTED OFFICIALS, K-12 SCHOOL 22
SUPERINTENDENTS, OR ADMINISTRATORS AT UNIVERSITIES OR COMMUNITY OR 23
JUNIOR COLLEGES UNDER THIS PROVISION; TO PROVIDE FOR THE REPEAL OF 24
THIS PROVISION ON JULY 1, 2036; TO AMEND SECTION 25-11-126, 25
MISSISSIPPI CODE OF 1972, TO CONFORM TO THE REDUCTION IN THE 26
REQUIRED SEPARATION PERIOD; AND FOR RELATED PURPOSES. 27
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 28
SECTION 1. Section 25-11-127, Mississippi Code of 1972, is 29
amended as follows: 30
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25-11-127. (1) (a) No person who is being paid a 31
retirement allowance or a pension after retirement under this 32
article shall be employed or paid for any service by the State of 33
Mississippi, including services as an employee, contract worker, 34
contractual employee or independent contractor, until the retired 35
person has been retired for not less than * * * thirty (30) 36
consecutive days from his or her effective date of retirement. 37
After the person has been retired for not less than * * * thirty 38
(30) consecutive days from his or her effective date of retirement 39
or such later date as established by the board, he or she may be 40
reemployed while being paid a retirement allowance under the terms 41
and conditions provided in this section or in Section 25-11-126. 42
(b) No retiree of this retirement system who is 43
reemployed or is reelected to office after retirement shall 44
continue to draw retirement benefits while so reemployed, except 45
as provided in this section or in Section 25-11-126. 46
(c) No person employed or elected under the exceptions 47
provided for in this section shall become a member under Article 3 48
of the retirement system. 49
(2) Except as otherwise provided in Section 25-11-126, any 50
person who has been retired under the provisions of Article 3 and 51
who is later reemployed in service covered by this article shall 52
cease to receive benefits under this article and shall again 53
become a contributing member of the retirement system. When the 54
person retires again, if the reemployment exceeds six (6) months, 55
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the person shall have his or her benefit recomputed, including 56
service after again becoming a member, provided that the total 57
retirement allowance paid to the retired member in his or her 58
previous retirement shall be deducted from the member's retirement 59
reserve and taken into consideration in recalculating the 60
retirement allowance under a new option selected. 61
(3) The board shall have the right to prescribe rules and 62
regulations for carrying out the provisions of this section. 63
(4) The provisions of this section shall not be construed to 64
prohibit any retiree, regardless of age, from being employed and 65
drawing a retirement allowance either: 66
(a) For a period of time not to exceed one-half (1/2) 67
of the normal working days for the position in any fiscal year 68
during which the retiree will receive no more than one-half (1/2) 69
of the salary in effect for the position at the time of 70
employment * * *; 71
(b) For a period of time in any fiscal year sufficient 72
in length to permit a retiree to earn not in excess of twenty-five 73
percent (25%) of retiree's average compensation * * *; or 74
(c) For a period of time as agreed to between the 75
employee and the employer, at compensation in an amount not to 76
exceed eighty percent (80%) of the salary in effect for the 77
position at the time of employment. Under this paragraph (c), a 78
written agreement must be executed after the conclusion of the 79
thirty-day separation period detailing the covered employment 80
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position, the full salary for the position, and the percentage of 81
salary the employee returning to work will receive as 82
compensation. The employer and the employee must sign the 83
agreement and provide a copy to the system, and any subsequent 84
amendment to the terms and conditions of the agreement must be in 85
writing, signed by both the employer and the employee, and 86
provided to the system within twenty (20) working days of the 87
execution of the amendment. Any agreement under this paragraph 88
(c) shall state that the employer shall be responsible for the 89
entire amount of required contributions to the system, and that 90
the employee shall not gain any additional rights or benefits 91
toward retirement. The employer shall be responsible for an 92
amount equal to the sum of the current employer contribution rate 93
and the current employee contribution rate in effect in the year 94
of the return-to-work employment. The employee shall not gain any 95
additional rights or benefits toward retirement from returning to 96
work under this paragraph (c). Employer contributions for 97
employees returning to work under this paragraph (c) are designed 98
to offset any pension liability created by this paragraph (c). No 99
retiree may return to work under this paragraph (c) as an elected 100
official, a K-12 school superintendent, or an administrator at a 101
university or a community or junior college. No retiree whose 102
retirement allowance is subject to an actuarial reduction, other 103
than as a result of taking a partial lump-sum distribution or any 104
other optional benefit under Section 25-11-115, may return to work 105
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under this paragraph (c). This paragraph (c) shall stand repealed 106
on July 1, 2036. 107
To determine the normal working days for a position under 108
paragraph (a) of this subsection, the employer shall determine the 109
required number of working days for the position on a full-time 110
basis and the equivalent number of hours representing the 111
full-time position. The retiree then may work up to one-half 112
(1/2) of the required number of working days or up to one-half 113
(1/2) of the equivalent number of hours and receive up to one-half 114
(1/2) of the salary for the position. In the case of employment 115
with multiple employers, the limitation shall equal one-half (1/2) 116
of the number of days or hours for a single full-time position. 117
Notice shall be given in writing to the executive director, 118
setting forth the facts upon which the employment is being made, 119
and the notice shall be given within five (5) days from the date 120
of employment and also from the date of termination of the 121
employment. 122
(5) Except as otherwise provided in subsection (6) of this 123
section, the employer of any person who is receiving a retirement 124
allowance and who is employed in service covered by subsection (4) 125
of this section as an employee or a contractual employee shall pay 126
to the board the full amount of the employer's contribution on the 127
amount of compensation received by the retiree for his or her 128
employment in accordance with regulations prescribed by the board; 129
however, in the case of a person who is receiving a retirement 130
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allowance and who is employed in service covered by subsection 131
(4)(c) of this section, the employer shall also pay to the board 132
the full amount of the employee's contribution on the amount of 133
compensation received by the retiree for his or her employment. 134
The retiree shall not receive any additional creditable service in 135
the retirement system as a result of the payment of the employer's 136
contribution. This subsection does not apply to persons who are 137
receiving a retirement allowance and who contract with an employer 138
to provide services as a true independent contractor, as defined 139
by the board through regulation. 140
(6) (a) A member may retire and continue in municipal or 141
county elective office provided that the member has reached the 142
age and/or service requirement that will not result in a 143
prohibited in-service distribution as defined by the Internal 144
Revenue Service, or a retiree may be elected to a municipal or 145
county office, provided that the person: 146
(i) Files annually, in writing, in the office of 147
the employer and the office of the executive director of the 148
system before the person takes office or as soon as possible after 149
retirement, a waiver of all salary or compensation and elects to 150
receive in lieu of that salary or compensation a retirement 151
allowance as provided in this section, in which event no salary or 152
compensation shall thereafter be due or payable for those 153
services; however, any such officer or employee may receive, in 154
addition to the retirement allowance, office expense allowance, 155
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mileage or travel expense authorized by any statute of the State 156
of Mississippi; or 157
(ii) Elects to receive compensation for that 158
elective office in an amount not to exceed twenty-five percent 159
(25%) of the retiree's average compensation. In order to receive 160
compensation as allowed in this subparagraph, the retiree shall 161
file annually, in writing, in the office of the employer and the 162
office of the executive director of the system, an election to 163
receive, in addition to a retirement allowance, compensation as 164
allowed in this subparagraph. 165
(b) The municipality or county in which the retired 166
person holds elective office shall pay to the board the amount of 167
the employer's contributions on the full amount of the regular 168
compensation for the elective office that the retired person 169
holds. 170
(c) As used in this subsection, the term "compensation" 171
does not include office expense allowance, mileage or travel 172
expense authorized by a statute of the State of Mississippi. 173
(7) Any retired teacher who returns to work in accordance 174
with this section shall not be eligible to return to work under 175
the provisions of Section 25-11-126. 176
SECTION 2. Section 25-11-126, Mississippi Code of 1972, is 177
amended as follows: 178
25-11-126. (1) Any person who has at least thirty (30) 179
years of creditable service, who was employed as a public school 180
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teacher at the time of his or her retirement, has been retired at 181
least * * * thirty (30) days and is receiving a retirement 182
allowance, and holds a standard teaching license in Mississippi, 183
may be employed as a teacher in a public school district after 184
retirement, and choose to continue receiving the retirement 185
allowance under this article during his or her employment as a 186
teacher after retirement in addition to receiving the salary 187
authorized under this section, along with the local contribution 188
of the school district in which the retiree is employed, at the 189
discretion of the school district. Any teacher who has retired 190
with at least twenty-five (25) years of creditable service as of 191
July 1, 2024, may also participate in this program if the teacher 192
otherwise qualifies under this section. 193
(2) A retired teacher may only be hired to teach in a school 194
district designated by the Department of Education as having 195
critical shortages and/or critical subject-area shortages, and 196
shall hold the related standard teaching license and/or 197
endorsements to teach in the subject area. The base compensation 198
authorized for returning retired teachers under Section 37-19-7 199
shall not be graduated annually in the same manner as teachers who 200
are employed by a school district under traditional employment 201
guidelines, but shall remain static for the entirety of his or her 202
eligible teaching period as a retired teacher. 203
(3) (a) A retired teacher may be employed as a teacher, 204
continue receiving his or her retirement allowance and be a 205
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contributing member of the system without accruing additional 206
retirement benefits for a total of five (5) years, which may be 207
performed consecutively or intermittently. This method is 208
designed specifically to provide funding for the system to 209
actuarially offset any pension liability created by this section. 210
Each school district hiring retired teachers under the authority 211
of this section, shall make a direct payment to PERS, which shall 212
serve as pension liability participation assessment. The pension 213
liability participation assessment and the retired teacher's 214
salary for returning to work shall be determined as follows: 215
(i) A school district shall rely on the salary 216
schedule in Section 37-19-7 in considering the salary for a 217
retired teacher; provided, however, that the school district may 218
allocate up to one hundred and twenty-five percent (125%) of the 219
amount provided under the salary schedule comparable to the 220
teacher's years of service and license type as salary and 221
assessment under the program * * *; 222
(ii) After determining the retired teacher's 223
compensation, the school district may pay no more than fifty 224
percent (50%) of the retired teacher's compensation as salary to 225
the retired teacher; and 226
(iii) The remaining fifty percent (50%) of the 227
retired teacher's compensation as salary shall be paid by the 228
school district to PERS as a pension liability participation 229
assessment. 230
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(b) If a retired teacher, reemployed under the 231
authority of this section, works in a school district for any 232
portion of a scholastic year less than a full contractual term of 233
traditional teachers, the time worked by the retired teacher shall 234
constitute one (1) of the five (5) years of post retirement 235
teaching eligibility. A retired teacher, under the authority of 236
this section, shall be entitled to work in any applicable school 237
district and shall not be obligated to remain in any one (1) 238
school district for the entirety of his or her post retirement 239
teaching eligibility, but shall be cumulative in nature so as not 240
to exceed five (5) years. The salary authorized under Section 241
37-19-7 for retired teachers shall be prorated for any period 242
worked by the retired teacher that is less than one (1) full 243
academic year. 244
(c) The State Department of Education shall transfer to 245
the system the Mississippi Adequate Education Program funds of 246
local school districts that on or after July 1, 2024, hire retired 247
members as teachers under this section and other funds that 248
otherwise would have been payable to the districts if the 249
districts had not taken advantage of this section. The crediting 250
of assets and financing shall follow the provisions of Section 251
25-11-123. 252
(d) Local educational agencies shall transfer to the 253
system Mississippi Adequate Education Program funds of local 254
school districts that on or after July 1, 2024, hire retired 255
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members as teachers under this section and other funds that 256
otherwise would have been payable to the districts if the 257
districts had not taken advantage of this section. The crediting 258
of assets and financing must follow the provisions of Section 259
25-11-123. 260
(4) Under the authority of this section, school districts 261
may employ retired teachers based on criteria established by the 262
department of education for critical teacher shortage areas and 263
critical subject-matter areas. A school district that is not 264
within a critical teacher shortage area may employ teachers for 265
critical subject-matter areas. 266
(5) A person may be hired under this section subject to the 267
following conditions: 268
(a) The retired member holds any teacher's professional 269
license or certificate as may be required in Section 37-3-2, and 270
holds the related standard teaching license and/or endorsements to 271
teach in the applicable subject area; 272
(b) The superintendent of the employing school district 273
certifies in writing to the State Department of Education that the 274
retired member has the requisite experience, training and 275
expertise for the position to be filled; 276
(c) The superintendent of the school district certifies 277
or the principal of the school certifies that there was no 278
preexisting arrangement for the person to be hired; 279
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ST: PERS; provide alternative return to work
provisions.
(d) The person had a satisfactory performance review 280
for the most recent period before retirement; and 281
(e) The person is hired to teach in a critical 282
subject-matter area or in a critical teacher shortage area. 283
(6) The State Superintendent of Public Education shall 284
report the persons who are employed under this section to the 285
Executive Director of the Public Employees' Retirement System. 286
(7) The department of education shall promulgate regulations 287
that prescribe a salary schedule that reflects the provisions of 288
this section. Each school district shall create a policy, 289
approved by the local school board, related to the hiring of 290
retired teachers and including, but not limited to, the hiring of 291
full- and part-time retired teacher employees under this section 292
and Section 25-11-127. 293
(8) Any retired teacher who returns to work in accordance 294
with this section shall not be eligible to return to work under 295
the provisions of Section 25-11-127. 296
SECTION 3. This act shall take effect and be in force from 297
and after July 1, 2026. 298