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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Sparks, Blount
SENATE BILL NO. 2912
AN ACT TO AMEND SECTION 25-14-5, MISSISSIPPI CODE OF 1972, TO 1
ALLOW THE MISSISSIPPI DEFERRED COMPENSATION PLAN AND TRUST TO 2
OFFER ROTH ACCOUNTS AND OTHER AFTER-TAX CONTRIBUTION VEHICLES; TO 3
PROVIDE THAT A PARTICIPANT'S ROTH OR OTHER ALLOWABLE AFTER-TAX 4
CONTRIBUTION INTO A DEFERRED COMPENSATION ACCOUNT SHALL BE TREATED 5
BY THE EMPLOYER AS INCLUDABLE IN THE PARTICIPANT'S INCOME AT THE 6
TIME THE PARTICIPANT WOULD HAVE RECEIVED THAT AMOUNT IN 7
COMPENSATION IF THE PARTICIPANT HAD NOT MADE A DEFERRED ELECTION; 8
TO AMEND SECTION 25-14-15, MISSISSIPPI CODE OF 1972, TO CONFORM; 9
AND FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. Section 25-14-5, Mississippi Code of 1972, is 12
amended as follows: 13
25-14-5. (1) The State of Mississippi, or any state agency, 14
county, municipality or other political subdivision may, by 15
contract, agree with any employee to defer, in whole or in part, 16
any portion of that employee's income, and a county, municipality 17
or other political subdivision, except community and junior 18
college districts, may make contributions to the plan on behalf of 19
actively participating members on a uniform basis through an 20
employer contribution agreement as provided for in the Mississippi 21
Deferred Compensation Plan and Trust Plan Document if making the 22
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contribution does not conflict with any other state law. Those 23
funds may subsequently be used to purchase a fixed or variable 24
life insurance or annuity contract authorized for purchase by the 25
Public Employees' Retirement System of Mississippi for the purpose 26
of protecting its obligation to the deferred compensation program 27
for the employee from any life underwriter duly licensed by this 28
state who represents an insurance company licensed to contract 29
fixed and variable annuities and fixed or variable life insurance 30
business in this state and authorized by the Public Employees' 31
Retirement System of Mississippi to offer their products in the 32
plan, or to purchase any investments authorized for purchase by 33
the Public Employees' Retirement System of Mississippi under 34
Section 25-11-121, or to invest those monies in a fund or funds 35
maintained by a corporate trustee, which fund or funds are used as 36
an investment media for retirement, pension or profit sharing 37
plans that are tax qualified for that purpose. However, in the 38
administration of this plan, the Public Employees' Retirement 39
System of Mississippi may adopt such regulations as are reasonable 40
and necessary to assure the orderly functioning of the plan, but 41
those regulations shall not unreasonably restrict all licensed 42
life underwriters and insurance companies described in this 43
section from concurrently participating in providing contracts 44
authorized under this section. 45
(2) Anything in any other law to the contrary 46
notwithstanding, except as provided in subsection (3) of this 47
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section, the deferred portion of the employee's compensation, the 48
plan and the monies in the plan created by this chapter are exempt 49
from any state, county or municipal ad valorem taxes, income 50
taxes, premium taxes, privilege taxes, property taxes, sales and 51
use taxes and any other taxes not so named, until the deferred 52
compensation is paid to the employee or beneficiary and exempt 53
from levy, garnishment, attachment or any other process 54
whatsoever. 55
(3) The Mississippi Deferred Compensation Plan and Trust, or 56
any other deferred compensation plan established by this chapter, 57
may include Roth accounts pursuant to 26 USC § 402A or any other 58
after-tax contribution vehicle allowed under the Internal Revenue 59
Code, if permitted by the plan document. A participant's Roth or 60
other allowable after-tax contribution into a deferred 61
compensation account shall be treated by the employer as 62
includable in the participant's income at the time the participant 63
would have received that amount in compensation if the participant 64
had not made a deferred election. 65
SECTION 2. Section 25-14-15, Mississippi Code of 1972, is 66
amended as follows: 67
25-14-15. Notwithstanding any other provision of this 68
chapter or any other provision of law to the contrary, except as 69
provided in Section 25-14-5(3), any sum deferred under the 70
deferred compensation program shall not be included for the 71
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ST: MS Deferred Compensation; allow Roth and
other after-tax accounts.
purposes of computation of any taxes withheld on behalf of any 72
employee. 73
SECTION 3. This act shall take effect and be in force from 74
and after July 1, 2026. 75