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S. B. No. 2497 *SS02/R616.1* ~ OFFICIAL ~ G1/2
17/SS02/R616.1
PAGE 1 (tb\rc)
To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2017 By: Senator(s) Fillingane
SENATE BILL NO. 2497
AN ACT TO AMEND SECTIONS 25-11-105, 25-11-109 AND 25-13-21, 1 MISSISSIPPI CODE OF 1972, TO REMOVE LANGUAGE REGARDING MEMBERSHIP 2 IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM REGARDING A SPECIFIC 3 COMMUNITY HOSPITAL THAT NO LONGER EXISTS; TO SIMPLIFY THE LANGUAGE 4 REGARDING THE PURCHASE OF CERTAIN SERVICE CREDIT IN THE PUBLIC 5 EMPLOYEES' RETIREMENT SYSTEM AND HIGHWAY SAFETY PATROL RETIREMENT 6 SYSTEM BY REMOVING LANGUAGE THAT SPECIFIES THE INCREMENTS IN WHICH 7 THE PAYMENT FOR SUCH CREDIT MUST BE MADE; TO AMEND SECTIONS 8 25-11-115 AND 25-13-16, MISSISSIPPI CODE OF 1972, TO CLARIFY TO 9 WHOM SHALL BE PAID THE ACTUARIAL EQUIVALENT OF ANY REMAINING 10
PAYMENTS UNDER OPTION 4B OF THE PUBLIC EMPLOYEES' RETIREMENT 11 SYSTEM AND THE HIGHWAY SAFETY PATROL RETIREMENT SYSTEM; TO AMEND 12 SECTIONS 25-11-117 AND 25-11-311, MISSISSIPPI CODE OF 1972, TO 13 PROVIDE THAT IF A PERSON WHO HAS RECEIVED A REFUND FROM THE PUBLIC 14 EMPLOYEES' RETIREMENT SYSTEM OR THE SUPPLEMENTAL LEGISLATIVE 15 RETIREMENT SYSTEM REINTERS STATE SERVICE OR IS REELECTED ON OR 16 AFTER JULY 1, 2007, AND REPAYS ALL OR A PART OF THE AMOUNT 17 PREVIOUSLY RECEIVED AS A REFUND, THE AMOUNTS THAT ARE REPAID AND 18 THE CREDITABLE SERVICE RELATED THERETO SHALL NOT BE USED IN ANY 19 BENEFIT CALCULATION UNTIL THE MEMBER HAS REMAINED A CONTRIBUTOR TO 20 THE SYSTEM FOR 8 YEARS; TO AMEND SECTION 25-3-39, MISSISSIPPI CODE 21 OF 1972, TO EXEMPT THE EXECUTIVE DIRECTOR OF THE PUBLIC EMPLOYEES' 22 RETIREMENT SYSTEM AND THE CHIEF INVESTMENT OFFICER OF THE PUBLIC 23 EMPLOYEES' RETIREMENT SYSTEM FROM THE GOVERNOR'S SALARY CAP; AND 24
FOR RELATED PURPOSES. 25
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 26
SECTION 1. Section 25-11-105, Mississippi Code of 1972, is 27
amended as follows: 28
25-11-105. I. THOSE WHO ARE ELIGIBLE FOR MEMBERSHIP 29
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The membership of this retirement system shall be composed as 30
follows: 31
(a) (i) All persons who become employees in the state 32
service after January 31, 1953, and whose wages are subject to 33
payroll taxes and are lawfully reported on IRS Form W-2, except 34
those specifically excluded, or as to whom election is provided in 35
Articles 1 and 3, shall become members of the retirement system as 36
a condition of their employment. 37
(ii) From and after July 1, 2002, any individual 38
who is employed by a governmental entity to perform professional 39
services shall become a member of the system if the individual is 40
paid regular periodic compensation for those services that is 41
subject to payroll taxes, is provided all other employee benefits 42
and meets the membership criteria established by the regulations 43
adopted by the board of trustees that apply to all other members 44
of the system; however, any active member employed in such a 45
position on July 1, 2002, will continue to be an active member for 46
as long as they are employed in any such position. 47
(b) All persons who become employees in the state 48
service after January 31, 1953, except those specifically excluded 49
or as to whom election is provided in Articles 1 and 3, unless 50
they file with the board before the lapse of sixty (60) days of 51
employment or sixty (60) days after the effective date of the 52
cited articles, whichever is later, on a form prescribed by the 53
board, a notice of election not to be covered by the membership of 54
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the retirement system and a duly executed waiver of all present 55
and prospective benefits that would otherwise inure to them on 56
account of their participation in the system, shall become members 57
of the retirement system; however, no credit for prior service 58
will be granted to members who became members of the system before 59
July 1, 2007, until they have contributed to Article 3 of the 60
retirement system for a minimum period of at least four (4) years, 61
or to members who became members of the system on or after July 1, 62
2007, until they have contributed to Article 3 of the retirement 63
system for a minimum period of at least eight (8) years. Those 64
members shall receive credit for services performed before January 65
1, 1953, in employment now covered by Article 3, but no credit 66
shall be granted for retroactive services between January 1, 1953, 67
and the date of their entry into the retirement system, unless the 68
employee pays into the retirement system both the employer's and 69
the employee's contributions on wages paid him during the period 70
from January 31, 1953, to the date of his becoming a contributing 71
member, together with interest at the rate determined by the board 72
of trustees. Members reentering after withdrawal from service 73
shall qualify for prior service under the provisions of Section 74
25-11-117. From and after July 1, 1998, upon eligibility as noted 75
above, the member may receive credit for such retroactive service 76
provided: 77
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(i) The member shall furnish proof satisfactory to 78
the board of trustees of certification of that service from the 79
covered employer where the services were performed; and 80
(ii) The member shall pay to the retirement system 81
on the date he or she is eligible for that credit or at any time 82
thereafter before the date of retirement the actuarial cost for 83
each year of that creditable service. The provisions of this 84
subparagraph (ii) shall be subject to the limitations of Section 85
415 of the Internal Revenue Code and regulations promulgated under 86
Section 415. 87
Nothing contained in this paragraph (b) shall be construed to 88
limit the authority of the board to allow the correction of 89
reporting errors or omissions based on the payment of the employee 90
and employer contributions plus applicable interest. 91
(c) All persons who become employees in the state 92
service after January 31, 1953, and who are eligible for 93
membership in any other retirement system shall become members of 94
this retirement system as a condition of their employment, unless 95
they elect at the time of their employment to become a member of 96
that other system. 97
(d) All persons who are employees in the state service 98
on January 31, 1953, and who are members of any nonfunded 99
retirement system operated by the State of Mississippi, or any of 100
its departments or agencies, shall become members of this system 101
with prior service credit unless, before February 1, 1953, they 102
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file a written notice with the board of trustees that they do not 103
elect to become members. 104
(e) All persons who are employees in the state service 105
on January 31, 1953, and who under existing laws are members of 106
any fund operated for the retirement of employees by the State of 107
Mississippi, or any of its departments or agencies, shall not be 108
entitled to membership in this retirement system unless, before 109
February 1, 1953, any such person indicates by a notice filed with 110
the board, on a form prescribed by the board, his individual 111
election and choice to participate in this system, but no such 112
person shall receive prior service credit unless he becomes a 113
member on or before February 1, 1953. 114
(f) Each political subdivision of the state and each 115
instrumentality of the state or a political subdivision, or both, 116
is authorized to submit, for approval by the board of trustees, a 117
plan for extending the benefits of this article to employees of 118
any such political subdivision or instrumentality. Each such plan 119
or any amendment to the plan for extending benefits thereof shall 120
be approved by the board of trustees if it finds that the plan, or 121
the plan as amended, is in conformity with such requirements as 122
are provided in Articles 1 and 3; however, upon approval of the 123
plan or any such plan previously approved by the board of 124
trustees, the approved plan shall not be subject to cancellation 125
or termination by the political subdivision or 126
instrumentality * * *. No such plan shall be approved unless: 127
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(i) It provides that all services that constitute 128
employment as defined in Section 25-11-5 and are performed in the 129
employ of the political subdivision or instrumentality, by any 130
employees thereof, shall be covered by the plan, with the 131
exception of municipal employees who are already covered by 132
existing retirement plans; however, those employees in this class 133
may elect to come under the provisions of this article; 134
(ii) It specifies the source or sources from which 135
the funds necessary to make the payments required by paragraph (d) 136
of Section 25-11-123 and of paragraph (f)(v)2 and 3 of this 137
section are expected to be derived and contains reasonable 138
assurance that those sources will be adequate for that purpose; 139
(iii) It provides for such methods of 140
administration of the plan by the political subdivision or 141
instrumentality as are found by the board of trustees to be 142
necessary for the proper and efficient administration thereof; 143
(iv) It provides that the political subdivision or 144
instrumentality will make such reports, in such form and 145
containing such information, as the board of trustees may from 146
time to time require; 147
(v) It authorizes the board of trustees to 148
terminate the plan in its entirety in the discretion of the board 149
if it finds that there has been a failure to comply substantially 150
with any provision contained in the plan, the termination to take 151
effect at the expiration of such notice and on such conditions as 152
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may be provided by regulations of the board and as may be 153
consistent with applicable federal law. 154
1. The board of trustees shall not finally 155
refuse to approve a plan submitted under paragraph (f), and shall 156
not terminate an approved plan without reasonable notice and 157
opportunity for hearing to each political subdivision or 158
instrumentality affected by the board's decision. The board's 159
decision in any such case shall be final, conclusive and binding 160
unless an appeal is taken by the political subdivision or 161
instrumentality aggrieved by the decision to the Circuit Court of 162
the First Judicial District of Hinds County, Mississippi, in 163
accordance with the provisions of law with respect to civil causes 164
by certiorari. 165
2. Each political subdivision or 166
instrumentality as to which a plan has been approved under this 167
section shall pay into the contribution fund, with respect to 168
wages (as defined in Section 25-11-5), at such time or times as 169
the board of trustees may by regulation prescribe, contributions 170
in the amounts and at the rates specified in the applicable 171
agreement entered into by the board. 172
3. Every political subdivision or 173
instrumentality required to make payments under paragraph (f)(v)2 174
of this section is authorized, in consideration of the employees' 175
retention in or entry upon employment after enactment of Articles 176
1 and 3, to impose upon its employees, as to services that are 177
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covered by an approved plan, a contribution with respect to wages 178
(as defined in Section 25-11-5) not exceeding the amount provided 179
in Section 25-11-123(d) if those services constituted employment 180
within the meaning of Articles 1 and 3, and to deduct the amount 181
of the contribution from the wages as and when paid. 182
Contributions so collected shall be paid into the contribution 183
fund as partial discharge of the liability of the political 184
subdivisions or instrumentalities under paragraph (f)(v)2 of this 185
section. Failure to deduct the contribution shall not relieve the 186
employee or employer of liability for the contribution. 187
4. Any state agency, school, political 188
subdivision, instrumentality or any employer that is required to 189
submit contribution payments or wage reports under any section of 190
this chapter shall be assessed interest on delinquent payments or 191
wage reports as determined by the board of trustees in accordance 192
with rules and regulations adopted by the board and delinquent 193
payments, assessed interest and any other amount certified by the 194
board as owed by an employer, may be recovered by action in a 195
court of competent jurisdiction against the reporting agency 196
liable therefor or may, upon due certification of delinquency and 197
at the request of the board of trustees, be deducted from any 198
other monies payable to the reporting agency by any department or 199
agency of the state. 200
5. Each political subdivision of the state 201
and each instrumentality of the state or a political subdivision 202
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or subdivisions that submit a plan for approval of the board, as 203
provided in this section, shall reimburse the board for coverage 204
into the expense account, its pro rata share of the total expense 205
of administering Articles 1 and 3 as provided by regulations of 206
the board. 207
(g) The board may, in its discretion, deny the right of 208
membership in this system to any class of employees whose 209
compensation is only partly paid by the state or who are occupying 210
positions on a part-time or intermittent basis. The board may, in 211
its discretion, make optional with employees in any such classes 212
their individual entrance into this system. 213
(h) An employee whose membership in this system is 214
contingent on his own election, and who elects not to become a 215
member, may thereafter apply for and be admitted to membership; 216
but no such employee shall receive prior service credit unless he 217
becomes a member before July 1, 1953, except as provided in 218
paragraph (b). 219
(i) If any member of this system changes his employment 220
to any agency of the state having an actuarially funded retirement 221
system, the board of trustees may authorize the transfer of the 222
member's creditable service and of the present value of the 223
member's employer's accumulation account and of the present value 224
of the member's accumulated membership contributions to that other 225
system, provided that the employee agrees to the transfer of his 226
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accumulated membership contributions and provided that the other 227
system is authorized to receive and agrees to make the transfer. 228
If any member of any other actuarially funded system 229
maintained by an agency of the state changes his employment to an 230
agency covered by this system, the board of trustees may authorize 231
the receipt of the transfer of the member's creditable service and 232
of the present value of the member's employer's accumulation 233
account and of the present value of the member's accumulated 234
membership contributions from the other system, provided that the 235
employee agrees to the transfer of his accumulated membership 236
contributions to this system and provided that the other system is 237
authorized and agrees to make the transfer. 238
(j) Wherever state employment is referred to in this 239
section, it includes joint employment by state and federal 240
agencies of all kinds. 241
(k) Employees of a political subdivision or 242
instrumentality who were employed by the political subdivision or 243
instrumentality before an agreement between the entity and the 244
Public Employees' Retirement System to extend the benefits of this 245
article to its employees, and which agreement provides for the 246
establishment of retroactive service credit, and who became 247
members of the retirement system before July 1, 2007, and have 248
remained contributors to the retirement system for four (4) years, 249
or who became members of the retirement system on or after July 1, 250
2007, and have remained contributors to the retirement system for 251
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eight (8) years, may receive credit for that retroactive service 252
with the political subdivision or instrumentality, provided that 253
the employee and/or employer, as provided under the terms of the 254
modification of the joinder agreement in allowing that coverage, 255
pay into the retirement system the employer's and employee's 256
contributions on wages paid the member during the previous 257
employment, together with interest or actuarial cost as determined 258
by the board covering the period from the date the service was 259
rendered until the payment for the credit for the service was 260
made. Those wages shall be verified by the Social Security 261
Administration or employer payroll records. Effective July 1, 262
1998, upon eligibility as noted above, a member may receive credit 263
for that retroactive service with the political subdivision or 264
instrumentality provided: 265
(i) The member shall furnish proof satisfactory to 266
the board of trustees of certification of those services from the 267
political subdivision or instrumentality where the services were 268
rendered or verification by the Social Security Administration; 269
and 270
(ii) The member shall pay to the retirement system 271
on the date he or she is eligible for that credit or at any time 272
thereafter before the date of retirement the actuarial cost for 273
each year of that creditable service. The provisions of this 274
subparagraph (ii) shall be subject to the limitations of Section 275
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415 of the Internal Revenue Code and regulations promulgated under 276
Section 415. 277
Nothing contained in this paragraph (k) shall be construed to 278
limit the authority of the board to allow the correction of 279
reporting errors or omissions based on the payment of employee and 280
employer contributions plus applicable interest. Payment for that 281
time shall be made * * * beginning with the most recent service. 282
Upon the payment of all or part of the required contributions, 283
plus interest or the actuarial cost as provided above, the member 284
shall receive credit for the period of creditable service for 285
which full payment has been made to the retirement system. 286
(l) Through June 30, 1998, any state service eligible 287
for retroactive service credit, no part of which has ever been 288
reported, and requiring the payment of employee and employer 289
contributions plus interest, or, from and after July 1, 1998, any 290
state service eligible for retroactive service credit, no part of 291
which has ever been reported to the retirement system, and 292
requiring the payment of the actuarial cost for that creditable 293
service, may, at the member's option, be purchased in quarterly 294
increments as provided above at the time that its purchase is 295
otherwise allowed. 296
(m) All rights to purchase retroactive service credit 297
or repay a refund as provided in Section 25-11-101 et seq. shall 298
terminate upon retirement. 299
II. THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP 300
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The following classes of employees and officers shall not 301
become members of this retirement system, any other provisions of 302
Articles 1 and 3 to the contrary notwithstanding: 303
(a) Patient or inmate help in state charitable, penal 304
or correctional institutions; 305
(b) Students of any state educational institution 306
employed by any agency of the state for temporary, part-time or 307
intermittent work; 308
(c) Participants of Comprehensive Employment and 309
Training Act of 1973 (CETA) being Public Law 93-203, who enroll on 310
or after July l, 1979; 311
(d) From and after July 1, 2002, individuals who are 312
employed by a governmental entity to perform professional service 313
on less than a full-time basis who do not meet the criteria 314
established in I(a)(ii) of this section. 315
III. TERMINATION OF MEMBERSHIP 316
Membership in this system shall cease by a member withdrawing 317
his accumulated contributions, or by a member withdrawing from 318
active service with a retirement allowance, or by a member's 319
death. 320
SECTION 2. Section 25-11-109, Mississippi Code of 1972, is 321
amended as follows: 322
25-11-109. (1) Under such rules and regulations as the 323
board of trustees shall adopt, each person who becomes a member of 324
this retirement system, as provided in Section 25-11-105, on or 325
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before July 1, 1953, or who became a member of the system before 326
July 1, 2007, and contributes to the system for a minimum period 327
of four (4) years, or who became a member of the system on or 328
after July 1, 2007, and contributes to the system for a minimum 329
period of eight (8) years, shall receive credit for all state 330
service rendered before February 1, 1953. To receive that credit, 331
the member shall file a detailed statement of all services as an 332
employee rendered by him in the state service before February 1, 333
1953. For any member who joined the system after July 1, 1953, 334
and before July 1, 2007, any creditable service for which the 335
member is not required to make contributions shall not be credited 336
to the member until the member has contributed to the system for a 337
minimum period of at least four (4) years. For any member who 338
joined the system on or after July 1, 2007, any creditable service 339
for which the member is not required to make contributions shall 340
not be credited to the member until the member has contributed to 341
the system for a minimum period of at least eight (8) years. 342
(2) (a) (i) In the computation of creditable service for 343
service rendered before July 1, 2017, under the provisions of this 344
article, the total months of accumulative service during any 345
fiscal year shall be calculated in accordance with the schedule as 346
follows: ten (10) or more months of creditable service during any 347
fiscal year shall constitute a year of creditable service; seven 348
(7) months to nine (9) months inclusive, three-quarters (3/4) of a 349
year of creditable service; four (4) months to six (6) months 350
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inclusive, one-half (1/2) year of creditable service; one (1) 351
month to three (3) months inclusive, one-quarter (1/4) of a year 352
of creditable service. 353
(ii) In the computation of creditable service 354
rendered on or after July 1, 2017, under the provisions of this 355
article, service credit shall be awarded in monthly increments in 356
a manner prescribed by regulations of the board. 357
(b) In no case shall credit be allowed for any period 358
of absence without compensation except for disability while in 359
receipt of a disability retirement allowance, nor shall less than 360
fifteen (15) days of service in any month, or service less than 361
the equivalent of one-half (1/2) of the normal working load for 362
the position and less than one-half (1/2) of the normal 363
compensation for the position in any month, constitute a month of 364
creditable service, nor shall more than one (1) year of service be 365
creditable for all services rendered in any one (1) fiscal year; 366
however, for a school employee, substantial completion of the 367
legal school term when and where the service was rendered shall 368
constitute a year of service credit. Any state or local elected 369
official shall be deemed a full-time employee for the purpose of 370
creditable service. However, an appointed or elected official 371
compensated on a per diem basis only shall not be allowed 372
creditable service for terms of office. 373
(c) In the computation of any retirement allowance or 374
any annuity or benefits provided in this article, any fractional 375
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period of service of less than one (1) year shall be taken into 376
account and a proportionate amount of such retirement allowance, 377
annuity or benefit shall be granted for any such fractional period 378
of service. 379
(d) (i) In the computation of unused leave for 380
creditable service authorized in Section 25-11-103, the following 381
shall govern for members who retire before July 1, 2017: 382
twenty-one (21) days of unused leave shall constitute one (1) 383
month of creditable service and in no case shall credit be allowed 384
for any period of unused leave of less than fifteen (15) days. 385
The number of months of unused leave shall determine the number of 386
quarters or years of creditable service in accordance with the 387
above schedule for membership and prior service. 388
(ii) In the computation of unused leave for 389
creditable service authorized in Section 25-11-103, the following 390
shall govern for members who retire on or after July 1, 2017: 391
creditable service for unused leave shall be calculated in monthly 392
increments in which one (1) month of service credit shall be 393
awarded for each twenty-one (21) days of unused leave, except that 394
the first fifteen (15) to fifty-seven (57) days of leave shall 395
constitute three (3) months of service for those who became a 396
member of the system before July 1, 2017. 397
(iii) In order for the member to receive 398
creditable service for the number of days of unused leave under 399
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this paragraph, the system must receive certification from the 400
governing authority. 401
(e) For the purposes of this subsection, members of the 402
system who retire on or after July 1, 2010, shall receive credit 403
for one-half (1/2) day of leave for each full year of membership 404
service accrued after June 30, 2010. The amount of leave received 405
by a member under this paragraph shall be added to the lawfully 406
credited unused leave for which creditable service is provided 407
under Section 25-11-103(i). 408
(f) For the purpose of this subsection, for members of 409
the system who are elected officers and who retire on or after 410
July 1, 1987, the following shall govern: 411
(i) For service before July 1, 1984, the members 412
shall receive credit for leave (combined personal and major 413
medical) for service as an elected official before that date at 414
the rate of thirty (30) days per year. 415
(ii) For service on and after July 1, 1984, the 416
member shall receive credit for personal and major medical leave 417
beginning July 1, 1984, at the rates authorized in Sections 418
25-3-93 and 25-3-95, computed as a full-time employee. 419
(iii) If a member is employed in a covered 420
nonelected position and a covered elected position simultaneously, 421
that member may not receive service credit for accumulated unused 422
leave for both positions at retirement for the period during which 423
the member was dually employed. During the period during which 424
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the member is dually employed, the member shall only receive 425
credit for leave as provided for in this paragraph for an elected 426
official. 427
(3) Subject to the above restrictions and to such other 428
rules and regulations as the board may adopt, the board shall 429
verify, as soon as practicable after the filing of such statements 430
of service, the services therein claimed. 431
(4) Upon verification of the statement of prior service, the 432
board shall issue a prior service certificate certifying to each 433
member the length of prior service for which credit shall have 434
been allowed on the basis of his statement of service. So long as 435
membership continues, a prior service certificate shall be final 436
and conclusive for retirement purposes as to such service, 437
provided that any member may within five (5) years from the date 438
of issuance or modification of such certificate request the board 439
of trustees to modify or correct his prior service certificate. 440
Any modification or correction authorized shall only apply 441
prospectively. 442
When membership ceases, such prior service certificates shall 443
become void. Should the employee again become a member, he shall 444
enter the system as an employee not entitled to prior service 445
credit except as provided in Sections 25-11-105(I), 25-11-113 and 446
25-11-117. 447
(5) Creditable service at retirement, on which the 448
retirement allowance of a member shall be based, shall consist of 449
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the membership service rendered by him since he last became a 450
member, and also, if he has a prior service certificate that is in 451
full force and effect, the amount of the service certified on his 452
prior service certificate. 453
(6) Any member who served on active duty in the Armed Forces 454
of the United States, who served in the Commissioned Corps of the 455
United States Public Health Service before 1972 or who served in 456
maritime service during periods of hostility in World War II, 457
shall be entitled to creditable service at no cost for his service 458
on active duty in the Armed Forces, in the Commissioned Corps of 459
the United States Public Health Service before 1972 or in such 460
maritime service, provided he entered state service after his 461
discharge from the Armed Forces or entered state service after he 462
completed such maritime service. The maximum period for such 463
creditable service for all military service as defined in this 464
subsection (6) shall not exceed four (4) years unless positive 465
proof can be furnished by such person that he was retained in the 466
Armed Forces during World War II or in maritime service during 467
World War II by causes beyond his control and without opportunity 468
of discharge. The member shall furnish proof satisfactory to the 469
board of trustees of certification of military service or maritime 470
service records showing dates of entrance into active duty service 471
and the date of discharge. From and after July 1, 1993, no 472
creditable service shall be granted for any military service or 473
maritime service to a member who qualifies for a retirement 474
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allowance in another public retirement system administered by the 475
Board of Trustees of the Public Employees' Retirement System 476
based, in whole or in part, on such military or maritime service. 477
In no case shall the member receive creditable service if the 478
member received a dishonorable discharge from the Armed Forces of 479
the United States. 480
(7) (a) Any member of the Public Employees' Retirement 481
System whose membership service is interrupted as a result of 482
qualified military service within the meaning of Section 414(u)(5) 483
of the Internal Revenue Code, and who has received the maximum 484
service credit available under subsection (6) of this section, 485
shall receive creditable service for the period of qualified 486
military service that does not qualify as creditable service under 487
subsection (6) of this section upon reentering membership service 488
in an amount not to exceed five (5) years if: 489
(i) The member pays the contributions he would 490
have made to the retirement system if he had remained in 491
membership service for the period of qualified military service 492
based upon his salary at the time his membership service was 493
interrupted; 494
(ii) The member returns to membership service 495
within ninety (90) days of the end of his qualified military 496
service; and 497
(iii) The employer at the time the member's 498
service was interrupted and to which employment the member returns 499
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pays the contributions it would have made into the retirement 500
system for such period based on the member's salary at the time 501
the service was interrupted. 502
(b) The payments required to be made in paragraph 503
(a)(i) of this subsection may be made over a period beginning with 504
the date of return to membership service and not exceeding three 505
(3) times the member's qualified military service; however, in no 506
event shall such period exceed five (5) years. 507
(c) The member shall furnish proof satisfactory to the 508
board of trustees of certification of military service showing 509
dates of entrance into qualified service and the date of discharge 510
as well as proof that the member has returned to active employment 511
within the time specified. 512
(8) Any member of the Public Employees' Retirement System 513
who became a member of the system before July 1, 2007, and who has 514
at least four (4) years of membership service credit, or who 515
became a member of the system on or after July 1, 2007, and who 516
has at least eight (8) years of membership service credit, shall 517
be entitled to receive a maximum of five (5) years' creditable 518
service for service rendered in another state as a public employee 519
of such other state, or a political subdivision, public education 520
system or other governmental instrumentality thereof, or service 521
rendered as a teacher in American overseas dependent schools 522
conducted by the Armed Forces of the United States for children of 523
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citizens of the United States residing in areas outside the 524
continental United States, provided that: 525
(a) The member shall furnish proof satisfactory to the 526
board of trustees of certification of such services from the 527
state, public education system, political subdivision or 528
retirement system of the state where the services were performed 529
or the governing entity of the American overseas dependent school 530
where the services were performed; and 531
(b) The member is not receiving or will not be entitled 532
to receive from the public retirement system of the other state or 533
from any other retirement plan, including optional retirement 534
plans, sponsored by the employer, a retirement allowance including 535
such services; and 536
(c) The member shall pay to the retirement system on 537
the date he or she is eligible for credit for such out-of-state 538
service or at any time thereafter before the date of retirement 539
the actuarial cost as determined by the actuary for each year of 540
out-of-state creditable service. The provisions of this 541
subsection are subject to the limitations of Section 415 of the 542
Internal Revenue Code and regulations promulgated under that 543
section. 544
(9) Any member of the Public Employees' Retirement System 545
who became a member of the system before July 1, 2007, and has at 546
least four (4) years of membership service credit, or who became a 547
member of the system on or after July 1, 2007, and has at least 548
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eight (8) years of membership service credit, and who receives, or 549
has received, professional leave without compensation for 550
professional purposes directly related to the employment in state 551
service shall receive creditable service for the period of 552
professional leave without compensation provided: 553
(a) The professional leave is performed with a public 554
institution or public agency of this state, or another state or 555
federal agency; 556
(b) The employer approves the professional leave 557
showing the reason for granting the leave and makes a 558
determination that the professional leave will benefit the 559
employee and employer; 560
(c) Such professional leave shall not exceed two (2) 561
years during any ten-year period of state service; 562
(d) The employee shall serve the employer on a 563
full-time basis for a period of time equivalent to the 564
professional leave period granted immediately following the 565
termination of the leave period; 566
(e) The contributing member shall pay to the retirement 567
system the actuarial cost as determined by the actuary for each 568
year of professional leave. The provisions of this subsection are 569
subject to the regulations of the Internal Revenue Code 570
limitations; 571
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(f) Such other rules and regulations consistent 572
herewith as the board may adopt and in case of question, the board 573
shall have final power to decide the questions. 574
Any actively contributing member participating in the School 575
Administrator Sabbatical Program established in Section 37-9-77 576
shall qualify for continued participation under this subsection 577
(9). 578
(10) Any member of the Public Employees' Retirement System 579
who became a member of the system before July 1, 2007, and has at 580
least four (4) years of credited membership service, or who became 581
a member of the system on or after July 1, 2007, and has at least 582
eight (8) years of credited membership service, shall be entitled 583
to receive a maximum of ten (10) years creditable service for: 584
(a) Any service rendered as an employee of any 585
political subdivision of this state, or any instrumentality 586
thereof, that does not participate in the Public Employees' 587
Retirement System; or 588
(b) Any service rendered as an employee of any 589
political subdivision of this state, or any instrumentality 590
thereof, that participates in the Public Employees' Retirement 591
System but did not elect retroactive coverage; or 592
(c) Any service rendered as an employee of any 593
political subdivision of this state, or any instrumentality 594
thereof, for which coverage of the employee's position was or is 595
excluded; provided that the member pays into the retirement system 596
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the actuarial cost as determined by the actuary for each year, or 597
portion thereof, of such service. * * * After a member has made 598
full payment to the retirement system for all or any part of such 599
service, the member shall receive creditable service for the 600
period of such service for which full payment has been made to the 601
retirement system. 602
SECTION 3. Section 25-13-21, Mississippi Code of 1972, is 603
amended as follows: 604
25-13-21. In the event a highway patrolman ceases to work 605
for the Highway Safety Patrol for any reason other than 606
occupational disease contracted or for any accident sustained by 607
the patrolman by reason of his service or discharge of his duty in 608
the Highway Patrol, and if the highway patrolman is not eligible 609
for retirement either for service or disability, he shall be 610
refunded the amount of his total contribution under the provisions 611
of this chapter, including any credit transferred to his account 612
in this system from any other system, at his request; and should 613
he die before retirement, his total contribution is to be refunded 614
to any beneficiary he may name. If there is no surviving 615
designated beneficiary, the contributions to the credit of the 616
deceased member shall be refunded pursuant to Section 617
25-13-21.1(1). 618
Pursuant to the Unemployment Compensation Amendments of 1992 619
(Public Law 102-318 (UCA)), a member or the spouse of a member who 620
is an eligible beneficiary entitled to a refund under this section 621
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may elect, on a form prescribed by the board under rules and 622
regulations established by the board, to have an eligible rollover 623
distribution of accumulated contributions payable under this 624
section paid directly to an eligible retirement plan, as defined 625
under applicable federal law, or an individual retirement account. 626
If the member or the spouse of a member who is an eligible 627
beneficiary makes that election and specifies the eligible 628
retirement plan or individual retirement account to which the 629
distribution is to be paid, the distribution will be made in the 630
form of a direct trustee-to-trustee transfer to the specified 631
eligible retirement plan. A nonspouse beneficiary may elect to 632
have an eligible rollover distribution paid in the form of a 633
direct trustee-to-trustee transfer to an individual retirement 634
account established to receive the distribution on behalf of the 635
nonspouse beneficiary. Flexible rollovers under this subsection 636
shall not be considered assignments under Section 25-13-31. 637
If any highway patrolman who receives a refund reenters the 638
service of the Highway Safety Patrol and again becomes a member of 639
the system, he may repay all amounts previously received by him as 640
a refund, together with regular interest covering the period from 641
the date of refund to the date of repayment; however, the amounts 642
that are repaid by the member and the creditable service related 643
thereto shall not be used in any benefit calculation or 644
determination until the member has remained a contributor to the 645
system for a period of at least five (5) years after the member's 646
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reentry into state service. Repayment for such time shall be 647
made * * * beginning with the most recent service for which refund 648
has been made. Upon the repayment of all or part of the refund 649
and interest, the highway patrolman shall again receive credit for 650
the period of creditable service for which full repayment has been 651
made to the system. 652
SECTION 4. Section 25-11-115, Mississippi Code of 1972, is 653
amended as follows: 654
25-11-115. (1) Upon application for superannuation or 655
disability retirement, any member may elect to receive his or her 656
benefit in a retirement allowance payable throughout life with no 657
further payments to anyone at the member's death, except that if 658
the member's total retirement payments under this article do not 659
equal the member's total contributions under this article, the 660
named beneficiary shall receive the difference in cash at the 661
member's death. Or the member may elect upon retirement, or upon 662
becoming eligible for retirement, to receive the actuarial 663
equivalent subject to the provisions of subsection (3) of this 664
section of his or her retirement allowance in a reduced retirement 665
allowance payable throughout life with the provision that: 666
Option 1. If the retired member dies before he or she has 667
received in annuity payment the value of the member's annuity 668
savings account as it was at the time of the member's retirement, 669
the balance shall be paid to the legal representative or to such 670
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person as the member has nominated by written designation duly 671
acknowledged and filed with the board; 672
Option 2. Upon the retired member's death, his or her 673
reduced retirement allowance shall be continued throughout the 674
life of, and paid to, such person as the member has nominated by 675
written designation duly acknowledged and filed with the board of 676
trustees at the time of his or her retirement; 677
Option 3. Upon the retired member's death, one-half (1/2) of 678
his or her reduced retirement allowance shall be continued 679
throughout the life of, and paid to, such person as the member has 680
nominated by written designation duly acknowledged and filed with 681
the board of trustees at the time of his or her retirement, and 682
the other one-half (1/2) of his or her reduced retirement 683
allowance to some other designated beneficiary; 684
Option 4. Upon the retired member's death, three-fourths 685
(3/4) of his or her reduced retirement allowance, or such other 686
specified amount, shall be continued throughout the life of, and 687
paid to, such person as the member has nominated by written 688
designation duly acknowledged and filed with the board of trustees 689
at the time of his or her retirement; 690
Option 4-A. Upon the retired member's death, one-half (1/2) 691
of his or her reduced retirement allowance, or such other 692
specified amount, shall be continued throughout the life of, and 693
paid to, such person as the member has nominated by written 694
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designation duly acknowledged and filed with the board of trustees 695
at the time of his or her retirement; 696
Option 4-B. A reduced retirement allowance shall be 697
continued throughout the life of the retirant, but with the 698
further guarantee of payments to the named beneficiary or 699
beneficiaries for a specified number of years certain. If the 700
retired member or the last designated beneficiary both die before 701
receiving all guaranteed payments due, the actuarial equivalent of 702
the remaining payments shall be paid * * * to the successors of 703
the retired member pursuant to Section 25-11-117.1(1); 704
Option 6. Any member who became a member of the system 705
before July 1, 2007, and who has at least twenty-eight (28) years 706
of creditable service at the time of retirement or who is at least 707
sixty-three (63) years of age and eligible to retire, may select 708
the maximum retirement benefit or an optional benefit as provided 709
in this subsection together with a partial lump-sum distribution. 710
Any member who became a member of the system on or after July 1, 711
2007, but before July 1, 2011, and who has at least twenty-eight 712
(28) years of creditable service at the time of retirement may 713
select the maximum retirement benefit or any optional benefit as 714
provided in this subsection together with a partial lump-sum 715
distribution. Any member who became a member of the system on or 716
after July 1, 2011, and who has at least thirty-three (33) years 717
of creditable service at the time of retirement may select the 718
maximum retirement benefit or any optional benefit as provided in 719
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this subsection together with a partial lump-sum distribution. 720
The amount of the lump-sum distribution under this option shall be 721
equal to the maximum monthly benefit multiplied by twelve (12), 722
twenty-four (24) or thirty-six (36) as selected by the member. 723
The maximum retirement benefit shall be actuarially reduced to 724
reflect the amount of the lump-sum distribution selected and 725
further reduced for any other optional benefit selected. The 726
annuity and lump-sum distribution shall be computed to result in 727
no actuarial loss to the system. The lump-sum distribution shall 728
be made as a single payment payable at the time the first monthly 729
annuity payment is paid to the retiree. The amount of the 730
lump-sum distribution shall be deducted from the member's annuity 731
savings account in computing what contributions remain at the 732
death of the retiree and/or a beneficiary. The lump-sum 733
distribution option may be elected only once by a member upon 734
initial retirement, and may not be elected by a retiree, by 735
members applying for a disability retirement annuity, or by 736
survivors. 737
(2) No change in the option selected shall be permitted 738
after the member's death or after the member has received his or 739
her first retirement check except as provided in subsections (3) 740
and (4) of this section and in Section 25-11-127. Members who are 741
pursuing a disability retirement allowance and simultaneously or 742
later elect to begin to receive a service retirement allowance 743
while continuing to pursue a disability retirement allowance, 744
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shall not be eligible to select Option 6 and that option may not 745
be selected at a later time if the application for a disability 746
retirement allowance is voided or denied. However, any retired 747
member who is receiving a retirement allowance under Option 2 or 748
Option 4-A upon July 1, 1992, and whose designated beneficiary 749
predeceased him or her or whose marriage to a spouse who is his or 750
her designated beneficiary is terminated by divorce or other 751
dissolution, upon written notification to the retirement system of 752
the death of the designated beneficiary or of the termination of 753
the retired member's marriage to the designated beneficiary, the 754
retirement allowance payable to the member after receipt of that 755
notification by the retirement system shall be equal to the 756
retirement allowance that would have been payable if the member 757
had not elected the option. In addition, any retired member who 758
is receiving the maximum retirement allowance for life, a 759
retirement allowance under Option 1 or who is receiving a 760
retirement allowance under Option 2 or Option 4-A on July 1, 1992, 761
may elect to provide survivor benefits under Option 2 or Option 762
4-A to a spouse who was not previously the member's beneficiary 763
and whom the member married before July 1, 1992. 764
(3) Any retired member who is receiving a reduced retirement 765
allowance under Option 2, Option 4 or Option 4-A whose designated 766
beneficiary predeceases him or her, or whose marriage to a spouse 767
who is his or her designated beneficiary is terminated by divorce 768
or other dissolution, may elect to cancel the reduced retirement 769
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allowance and receive the maximum retirement allowance for life in 770
an amount equal to the amount that would have been payable if the 771
member had not elected Option 2, Option 4 or Option 4-A. That 772
election must be made in writing to the office of the executive 773
director of the system on a form prescribed by the board. Any 774
such election shall be effective the first of the month following 775
the date the election is received by the system; however, the 776
election may be applied retroactively for not more than three (3) 777
months but no earlier than the first of the month following the 778
date of the death of the beneficiary. 779
(4) Any retired member who is receiving the maximum 780
retirement allowance for life, or a retirement allowance under 781
Option 1, and who marries after his or her retirement may elect to 782
cancel the maximum retirement allowance and receive a reduced 783
retirement allowance under Option 2, Option 4 or Option 4-A to 784
provide continuing lifetime benefits to his or her spouse. That 785
election must be made in writing to the office of the executive 786
director of the system on a form prescribed by the board not 787
earlier than the date of the marriage and not later than one (1) 788
year from the date of the marriage. Any such election shall be 789
effective the first of the month following the date the election 790
is received by the system. 791
(5) (a) Except as otherwise provided in this subsection, if 792
the election of an optional benefit is made after the member has 793
attained the age of sixty-five (65) years, the actuarial 794
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equivalent factor shall be used to compute the reduced retirement 795
allowance as if the election had been made on his or her 796
sixty-fifth birthday; however, from and after January 1, 2003, if 797
there is an election of Option 6 after the member has attained the 798
age of sixty-five (65) years, the actuarial equivalent factor 799
based on the retiree's age at the time of retirement shall be used 800
to compute the reduced maximum monthly retirement allowance. 801
However, if a retiree marries or remarries after retirement and 802
elects either Option 2 or Option 4-A as provided in subsection (2) 803
or (4) of this section, the actuarial equivalent factor used to 804
compute the reduced retirement allowance shall be the factor for 805
the age of the retiree and his or her beneficiary at the time such 806
election for recalculation of benefits is made. 807
(b) For members who retire on or after July 1, 2012, 808
the actuarial equivalent factor used to compute the reduced 809
retirement allowance at retirement or upon any subsequent 810
recalculation of the benefit shall be the factor for the age of 811
the retiree and his or her beneficiary at the time of retirement 812
or at the time an election for recalculation of benefits is made. 813
(6) Notwithstanding any provision of Section 25-11-1 et 814
seq., no payments may be made for a retirement allowance on a 815
monthly basis for a period of time in excess of that allowed by 816
federal law. 817
(7) If a retirant and his or her eligible beneficiary, if 818
any, both die before they have received in annuity payments a 819
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total amount equal to the accumulated contributions standing to 820
the retirant's credit in the annuity savings account at the time 821
of his or her retirement, the difference between the accumulated 822
contributions and the total amount of annuities received by them 823
shall be paid to such persons as the retirant has nominated by 824
written designation duly executed and filed in the office of the 825
executive director. If no designated person survives the retirant 826
and his or her beneficiary, the difference, if any, shall be paid 827
under Section 25-11-117.1(1). 828
(8) Any retired member who retired on Option 2(5) or 4-A(5) 829
before July 1, 1992, who is still receiving a retirement allowance 830
on July 1, 1994, shall receive an increase in the annual 831
retirement allowance effective July 1, 1994, equal to the amount 832
they would have received under Option 2 or Option 4-A without a 833
reduction for Option 5 based on the ages at retirement of the 834
retiree and beneficiary and option factors in effect on July 1, 835
1992. That increase shall be prospective only. 836
SECTION 5. Section 25-13-16, Mississippi Code of 1972, is 837
amended as follows: 838
25-13-16. (1) Upon application for superannuation or 839
disability retirement, any member who retires after July 1, 1990, 840
may elect to receive his benefit pursuant to the provisions of 841
Sections 25-13-11 and 25-13-13. Or he may elect upon retirement, 842
or upon becoming eligible for retirement, to receive the actuarial 843
equivalent, subject to the provisions of subsection (3) of this 844
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section, of his retirement allowance in a reduced retirement 845
allowance payable throughout life with the provision that: 846
Option 1. If he dies before he has received in annuity 847
payment the value of the member's annuity savings account as it 848
was at the time of his retirement, the balance shall be paid to 849
his legal representative or to such person as he shall nominate by 850
written designation duly acknowledged and filed with the board; or 851
Option 2. Upon his death, his reduced retirement allowance 852
shall be continued throughout the life of, and paid to, such 853
person as he has nominated by written designation duly 854
acknowledged and filed with the board of trustees at the time of 855
his retirement; 856
Option 3. Upon his death, one-half (1/2) of his reduced 857
retirement allowance shall be continued throughout the life of, 858
and paid to, such person as he shall have nominated by written 859
designation duly acknowledged and filed with the board of trustees 860
at the time of his retirement, and the other one-half (1/2) of his 861
reduced retirement allowance to some other designated beneficiary; 862
Option 4. Upon his death, three-fourths (3/4) of his reduced 863
retirement allowance, or such other specified amount, shall be 864
continued throughout the life of, and paid to, such person he 865
shall have nominated by written designation duly acknowledged and 866
filed with the board of trustees at the time of his retirement; 867
Option 4-A. Upon his death, one-half (1/2) of his reduced 868
retirement allowance, or such other specified amount, shall be 869
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continued throughout the life of, and paid to, such person as he 870
shall have nominated by written designation duly acknowledged and 871
filed with the board of trustees at the time of his retirement; or 872
Option 4-B. A reduced retirement allowance shall be 873
continued throughout the life of the retirant, but with the 874
further guarantee of payments to the named beneficiary or 875
beneficiaries for a specified number of years certain. If the 876
retired member or the last designated beneficiary both die prior 877
to receiving all guaranteed payments due, the actuarial equivalent 878
of the remaining payments shall be paid to the successors of the 879
retired member pursuant to Section 25-13-21.1(1); 880
Option 4-C. Such retirement allowance otherwise payable may 881
be converted into a retirement allowance of equivalent actuarial 882
value in such an amount that, with the member's benefit under 883
Title II of the federal Social Security Act, the member will 884
receive, so far as possible, approximately the same amount 885
annually before and after the earliest age at which the member 886
becomes eligible to receive a social security benefit. This 887
option shall not be available to retirees whose retirement is 888
effective on or after July 1, 2004; 889
Option 6. Any member who is eligible to retire with an 890
unreduced benefit may select the maximum retirement benefit or an 891
optional benefit as provided in this subsection together with a 892
partial lump-sum distribution. The amount of the lump-sum 893
distribution under this option shall be equal to the maximum 894
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monthly benefit multiplied by twelve (12), twenty-four (24) or 895
thirty-six (36) as selected by the member. The maximum retirement 896
benefit shall be actuarially reduced to reflect the amount of the 897
lump-sum distribution selected and further reduced for any other 898
optional benefit selected. The annuity and lump-sum distribution 899
shall be computed to result in no actuarial loss to the system. 900
The lump-sum distribution shall be made as a single payment 901
payable at the time the first monthly annuity payment is paid to 902
the retiree. The amount of the lump-sum distribution shall be 903
deducted from the member's annuity savings account in computing 904
what contributions remain at the death of the retiree and/or a 905
beneficiary. The lump-sum distribution option may be elected only 906
once by a member upon initial retirement, and may not be elected 907
by a retiree, by members applying for a disability retirement 908
annuity, by survivors or by a member selecting Option 4-C. 909
(2) No change in the option selected shall be permitted 910
after the member's death or after the member has received his 911
first retirement check, except as provided in subsections (3) and 912
(4) of this section. However, any retired member who is receiving 913
a retirement allowance under Option 2 or Option 4-A upon July 1, 914
1999, and whose designated beneficiary predeceased him or whose 915
marriage to a spouse who is his designated beneficiary is 916
terminated by divorce or other dissolution, upon written 917
notification to the retirement system of the death of the 918
designated beneficiary or of the termination of his marriage to 919
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his designated beneficiary, the retirement allowance payable to 920
the member after receipt of such notification by the retirement 921
system shall be equal to the retirement allowance that would have 922
been payable if the member had not elected the option. In 923
addition, any retired member who is receiving the maximum 924
retirement allowance for life, a retirement allowance under Option 925
1 or who is receiving a retirement allowance under Option 2 or 926
Option 4-A on July 1, 1999, may elect to provide survivor benefits 927
under Option 2 or Option 4-A to a spouse who was not previously 928
the member's beneficiary and who the member married before July 1, 929
1999. Should a member retired on disability be returned to active 930
service, the option previously selected shall be null and void. 931
Upon subsequent retirement a new option may be selected. 932
(3) Any retired member who is receiving a reduced retirement 933
allowance under Option 2, Option 4 or Option 4-A whose designated 934
beneficiary predeceases him, or whose marriage to a spouse who is 935
his designated beneficiary is terminated by divorce or other 936
dissolution, may elect to cancel his reduced retirement allowance 937
and receive the maximum retirement allowance for life in an amount 938
equal to the amount that would have been payable if the member had 939
not elected Option 2, Option 4 or Option 4-A. Such election must 940
be made in writing to the office of the executive director of the 941
system on a form prescribed by the board. Any such election shall 942
be effective the first of the month following the date the 943
election is received by the system; however, the election may be 944
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applied retroactively for not more than three (3) months but no 945
earlier than the first of the month following the date of the 946
death of the beneficiary. 947
(4) Any retired member who is receiving the maximum 948
retirement allowance for life, or a retirement allowance under 949
Option 1, and who marries after his retirement may elect to cancel 950
his maximum retirement allowance and receive a reduced retirement 951
allowance under Option 2, Option 4 or Option 4-A to provide 952
continuing lifetime benefits to his spouse. Such election must be 953
made in writing to the office of the executive director of the 954
system on a form prescribed by the board not earlier than the date 955
of the marriage. Any such election shall be effective the first 956
of the month following the date the election is received by the 957
system. However, if a retiree marries or remarries after 958
retirement and elects either Option 2, Option 4 or Option 4-A as 959
provided in subsection (2) or (4) of this section, the actuarial 960
equivalent factor used to compute the reduced retirement allowance 961
shall be the factor for the age of the retiree and his or her 962
beneficiary at the time such election for recalculation of 963
benefits is made. 964
(5) Any member in service who has qualified for retirement 965
benefits may select any optional method of settlement of 966
retirement benefits by notifying the Executive Director of the 967
Board of Trustees of the Public Employees' Retirement System in 968
writing, on a form prescribed by the board, of the option he has 969
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selected and by naming the beneficiary of such option and 970
furnishing necessary proof of age. Such option, once selected, 971
may be changed at any time prior to actual retirement or death, 972
but upon the death or retirement of the member, the optional 973
settlement shall be placed in effect upon proper notification to 974
the executive director. 975
(6) Notwithstanding any provision of Section 25-13-1 et 976
seq., no payments may be made for a retirement allowance on a 977
monthly basis for a period of time in excess of that allowed by 978
federal law. 979
(7) If a retirant and his eligible beneficiary, if any, both 980
die before they have received in annuity payments a total amount 981
equal to the accumulated contributions standing to the retirant's 982
credit in the annuity savings account at the time of his 983
retirement, the difference between the accumulated contributions 984
and the total amount of annuities received by them shall be paid 985
to such persons as the retirant has nominated by written 986
designation duly executed and filed in the office of the executive 987
director. If no designated person survives the retirant and his 988
beneficiary, the difference, if any, shall be paid pursuant to 989
Section 25-13-21.1(1). 990
(8) Any retired member who retired on Option 2(5) or 4-A(5) 991
before July 1, 1999, who is still receiving a retirement allowance 992
as of July 1, 1999, shall receive an increase in the annual 993
retirement allowance effective July 1, 1999, equal to the amount 994
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they would have received under Option 2 or Option 4-A without a 995
reduction for Option 5 based on the ages at retirement of the 996
retiree and beneficiary and option factors in effect on July 1, 997
1999. Such increase shall be prospective only. 998
(9) For purposes of this section: 999
(a) "Beneficiary" means any person designated to 1000
receive a retirement allowance, an annuity or other benefit as 1001
provided by this chapter. Such designation shall be in writing 1002
filed in the Office of the Executive Director of the Board of 1003
Trustees of the Public Employees' Retirement System, and no 1004
designation or change of beneficiary shall be made in any other 1005
manner; however, notwithstanding any provision of this chapter to 1006
the contrary, the lawful spouse of a member at the time of the 1007
death of a member shall be the beneficiary of such member unless 1008
the member has designated another beneficiary subsequent to the 1009
date of marriage. 1010
(b) "Actuarial equivalent" shall mean a benefit of 1011
equal value to the accumulated contributions, annuity or benefit, 1012
as the case may be, when computed upon the basis of such mortality 1013
tables as shall be adopted by the board of trustees, and regular 1014
interest. 1015
(c) "Actuarial tables" shall mean such tables of 1016
mortality and rates of interest as shall be adopted by the board 1017
in accordance with the recommendation of the actuary. 1018
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SECTION 6. Section 25-11-117, Mississippi Code of 1972, is 1019
amended as follows: 1020
25-11-117. (1) A member may be paid a refund of the amount 1021
of accumulated contributions to the credit of the member in the 1022
annuity savings account, provided that the member has withdrawn 1023
from state service and has not returned to state service on the 1024
date the refund of the accumulated contributions would be paid. 1025
That refund of the contributions to the credit of the member in 1026
the annuity savings account shall be paid within ninety (90) days 1027
from receipt in the office of the retirement system of the 1028
properly completed form requesting the payment. In the event of 1029
death before retirement of any member whose spouse and/or children 1030
are not entitled to a retirement allowance, the accumulated 1031
contributions to the credit of the deceased member in the annuity 1032
savings account shall be paid to the designated beneficiary on 1033
file in writing in the office of the executive director of the 1034
board of trustees within ninety (90) days from receipt of a 1035
properly completed form requesting the payment. If there is no 1036
such designated beneficiary on file for the deceased member in the 1037
office of the system, upon the filing of a proper request with the 1038
board, the contributions to the credit of the deceased member in 1039
the annuity savings account shall be refunded under Section 1040
25-11-117.1(1). The payment of the refund shall discharge all 1041
obligations of the retirement system to the member on account of 1042
any creditable service rendered by the member before the receipt 1043
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of the refund. By the acceptance of the refund, the member shall 1044
waive and relinquish all accrued rights in the system. 1045
(2) Under the Unemployment Compensation Amendments of 1992 1046
(Public Law 102-318 (UCA)), a member or the spouse of a member who 1047
is an eligible beneficiary entitled to a refund under this section 1048
may elect, on a form prescribed by the board under rules and 1049
regulations established by the board, to have an eligible rollover 1050
distribution of accumulated contributions payable under this 1051
section paid directly to an eligible retirement plan, as defined 1052
under applicable federal law, or an individual retirement account. 1053
If the member or the spouse of a member who is an eligible 1054
beneficiary makes that election and specifies the eligible 1055
retirement plan or individual retirement account to which the 1056
distribution is to be paid, the distribution will be made in the 1057
form of a direct trustee-to-trustee transfer to the specified 1058
eligible retirement plan. A nonspouse beneficiary may elect to 1059
have an eligible rollover distribution paid in the form of a 1060
direct trustee-to-trustee transfer to an individual retirement 1061
account established to receive the distribution on behalf of the 1062
nonspouse beneficiary. Flexible rollovers under this subsection 1063
shall not be considered assignments under Section 25-11-129. 1064
(3) (a) If any person who * * * has received a refund, 1065
reenters the state service and again becomes a member of the 1066
system before July 1, 2007, the member may repay all or part of 1067
the amounts previously received as a refund, together with regular 1068
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interest covering the period from the date of refund to the date 1069
of repayment; however, the amounts that are repaid by the member 1070
and the creditable service related thereto shall not be used in 1071
any benefit calculation or determination until the member has 1072
remained a contributor to the system for a period of at least four 1073
(4) years after the member's reentry into state service. 1074
Repayment for that time shall be made * * * beginning with the 1075
most recent service for which refund has been made. Upon the 1076
repayment of all or part of that refund and interest, the member 1077
shall again receive credit for the period of creditable service 1078
for which full repayment has been made to the system. 1079
(b) If any person who * * * has received a refund, 1080
reenters the state service and again becomes a member of the 1081
system on or after July 1, 2007, the member may repay all or part 1082
of the amounts previously received as a refund, together with 1083
regular interest covering the period from the date of refund to 1084
the date of repayment; however, the amounts that are repaid by the 1085
member and the creditable service related thereto shall not be 1086
used in any benefit calculation or determination until the member 1087
has remained a contributor to the system for a period of at least 1088
eight (8) years after the member's reentry into state service. 1089
Repayment for that time shall be made * * * beginning with the 1090
most recent service for which refund has been made. Upon the 1091
repayment of all or part of that refund and interest, the member 1092
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shall again receive credit for the period of creditable service 1093
for which full repayment has been made to the system. 1094
(4) (a) In order to provide a source of income to members 1095
who have applied for disability benefits under Section 25-11-113 1096
or 25-11-114, the board may provide, at the employee's election, a 1097
temporary benefit to be paid from the member's accumulated 1098
contributions, if any, without forfeiting the right to pursue 1099
disability benefits, provided that the member has exhausted all 1100
personal and medical leave and has terminated his or her 1101
employment. The board may prescribe rules and regulations for 1102
carrying out the provisions of this subsection (4). 1103
(b) If a member who has elected to receive temporary 1104
benefits under this subsection later applies for a refund of his 1105
or her accumulated contributions, all amounts paid under this 1106
subsection shall be deducted from the accumulated contributions 1107
and the balance will be paid to the member. If a member who has 1108
elected to receive temporary benefits under this subsection is 1109
later approved for a disability retirement allowance, and a 1110
service retirement allowance or survivor benefits are paid on the 1111
account, the board shall adjust the benefits in such a manner that 1112
no more than the actuarial equivalent of the benefits to which the 1113
member or beneficiary was or is entitled shall be paid. 1114
(c) The board may study, develop and propose a 1115
disability benefit structure, including short- and long-term 1116
disability benefits, provided that it is the actuarial equivalent 1117
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of the benefits currently provided in Section 25-11-113 or 1118
25-11-114. 1119
SECTION 7. Section 25-11-311, Mississippi Code of 1972, is 1120
amended as follows: 1121
25-11-311. (1) A member may be paid a refund of the amount 1122
of accumulated contributions to the credit of the member in the 1123
annuity savings account, provided the member has withdrawn from 1124
state service and further provided the member has not returned to 1125
state service on the date the refund of the accumulated 1126
contributions would be paid. The refund of the contributions to 1127
the credit of the member in the annuity savings account shall be 1128
paid within ninety (90) days from receipt in the office of the 1129
retirement system of the properly completed form requesting that 1130
payment. In the event of death before retirement of any member 1131
whose spouse and/or children are not entitled to a retirement 1132
allowance, the accumulated contributions to the credit of the 1133
deceased member in the annuity savings account shall be paid to 1134
the designated beneficiary on file in writing in the office of the 1135
executive director of the board of trustees within ninety (90) 1136
days from receipt of a properly completed form requesting that 1137
payment. If there is no such designated beneficiary on file for 1138
the deceased member in the office of the system, upon the filing 1139
of a proper request with the board, the contributions to the 1140
credit of the deceased member in the annuity savings account shall 1141
be refunded under Section 25-11-311.1(1). The payment of the 1142
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refund shall discharge all obligations of the retirement system to 1143
the member on account of any creditable service rendered by the 1144
member before the receipt of the refund. By the acceptance of the 1145
refund, the member shall waive and relinquish all accrued rights 1146
in the plan. 1147
(2) Pursuant to the Unemployment Compensation Amendments of 1148
1992 (Public Law 102-318 (USCS)), a member or the spouse of a 1149
member who is an eligible beneficiary making application for a 1150
refund under this section may elect, on a form prescribed by the 1151
board under rules and regulations established by the board, to 1152
have an eligible rollover distribution of accumulated 1153
contributions payable under this section paid directly to an 1154
eligible retirement plan, as defined under applicable federal law, 1155
or an individual retirement account. If the member or the spouse 1156
of a member who is an eligible beneficiary makes that election and 1157
specifies the eligible retirement plan or individual retirement 1158
account to which the distribution is to be paid, the distribution 1159
will be made in the form of a direct trustee-to-trustee transfer 1160
to the specified eligible retirement plan. A nonspouse 1161
beneficiary may elect to have an eligible rollover distribution of 1162
accumulated contributions paid in the form of a direct 1163
trustee-to-trustee transfer to an individual retirement account 1164
established to receive the distribution on behalf of the nonspouse 1165
beneficiary. Flexible rollovers under this subsection shall not 1166
be considered assignments under Section 25-11-129. 1167
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(3) (a) If any person who * * * has received a refund, is 1168
reelected to the Legislature or as President of the Senate and 1169
again becomes a member of the plan before July 1, 2007, the member 1170
may repay all or part of the amounts previously received as a 1171
refund, together with regular interest covering the period from 1172
the date of refund to the date of repayment; however, the amounts 1173
that are repaid by the member and the creditable service related 1174
thereto shall not be used in any benefit calculation or 1175
determination until the member has remained a contributor to the 1176
system for a period of at least four (4) years after the member's 1177
reentry into state service. Repayment for that time shall be 1178
made * * * beginning with the most recent service for which refund 1179
has been made. Upon the repayment of all or part of that refund 1180
and interest, the member shall again receive credit for the period 1181
of creditable service for which full repayment has been made to 1182
the system. 1183
(b) If any person who * * * has received a refund, 1184
reenters the state service and again becomes a member of the 1185
system after July l, 2007, the member may repay all or part of the 1186
amount previously received as a refund, together with regular 1187
interest covering the period from the date of refund to the date 1188
of repayment; however, the amounts that are repaid by the member 1189
and the creditable service related thereto shall not be used in 1190
any benefit calculation or determination until the member has 1191
remained a contributor to the system for a period of at least 1192
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eight (8) years after the member's reentry into state service. 1193
Repayment for that time shall be made * * * beginning with the 1194
most recent service for which refund has been made. Upon the 1195
repayment of all or part of that refund and interest, the member 1196
shall again receive credit for the period of creditable service 1197
for which full repayment has been made to the system. 1198
SECTION 8. Section 25-3-39, Mississippi Code of 1972, is 1199
amended as follows: 1200
25-3-39. (1) (a) Except as otherwise provided in this 1201
section, no public officer, public employee, administrator, or 1202
executive head of any arm or agency of the state, in the executive 1203
branch of government, shall be paid a salary or compensation, 1204
directly or indirectly, greater than one hundred fifty percent 1205
(150%) of the salary fixed in Section 25-3-31 for the Governor, 1206
nor shall the salary of any public officer, public employee, 1207
administrator, or executive head of any arm or agency of the 1208
state, in the executive branch of government, be supplemented with 1209
any funds from any source, including federal or private funds. 1210
Such salaries shall be completely paid by the state. All academic 1211
officials, members of the teaching staffs and employees of the 1212
state institutions of higher learning, the Mississippi Community 1213
College Board, and community and junior colleges, and licensed 1214
physicians who are public employees, shall be exempt from this 1215
subsection. All professional employees who hold a bachelor's 1216
degree or more advanced degree from an accredited four-year 1217
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college or university or a certificate or license issued by a 1218
state licensing board, commission or agency and who are employed 1219
by the Department of Mental Health shall be exempt from this 1220
subsection if the State Personnel Board approves the exemption. 1221
The Commissioner of Child Protection Services is exempt from this 1222
subsection. From and after July 1, 2018, the Executive Director 1223
of the Public Employees' Retirement System and the Chief 1224
Investment Officer of the Public Employees' Retirement System 1225
shall be exempt from this subsection. 1226
(b) The Governor shall fix the annual salary of the 1227
Executive Director of the Mississippi Development Authority, the 1228
annual salary of the Commissioner of Child Protection Services, 1229
and the annual salary of the Chief of Staff of the Governor's 1230
Office. The salary of the Governor's Chief of Staff shall not be 1231
greater than one hundred fifty percent (150%) of the salary of the 1232
Governor and shall be completely paid by the state without 1233
supplementation from another source. The salary of the Executive 1234
Director of the Mississippi Development Authority may be greater 1235
than one hundred fifty percent (150%) of the salary of the 1236
Governor and may be supplemented with funds from any source, 1237
including federal or private funds; however, any state funds used 1238
to pay the salary of the Executive Director of the Mississippi 1239
Development Authority shall not exceed one hundred fifty percent 1240
(150%) of the salary of the Governor. If the executive director's 1241
salary is supplemented with private funds, the Mississippi 1242
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ST: Retirement; make certain technical revisions to PERS, SLURP and Highway Patrol & exempt exec. dir. from salary cap.
Development Authority shall publish on its website the amount of 1243
the supplement and the name of the donor of the private funds. 1244
(2) No public officer, employee or administrator shall be 1245
paid a salary or compensation, directly or indirectly, in excess 1246
of the salary authorized to be paid the executive head of the 1247
state agency or department in which he is employed. The State 1248
Personnel Board, based upon its findings of fact, may exempt 1249
physicians and actuaries from this subsection when the acquisition 1250
of such professional services is precluded based on the prevailing 1251
wage in the relevant labor market. 1252
(3) The executive head of any state agency or department 1253
appointed by the Governor, in such executive head's discretion, 1254
may waive all or any portion of the salary or compensation 1255
lawfully established for the position. 1256
SECTION 9. This act shall take effect and be in force from 1257
and after July 1, 2017. 1258