Mississippi Work and Save Program; create; revise certain PERS provisions., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Ways and Means

By: Representative Steverson

House Bill 4073

(As Sent to Governor)

AN ACT TO CREATE THE MISSISSIPPI WORK AND SAVE PROGRAM,
WHICH IS A RETIREMENT SAVINGS PROGRAM SPONSORED BY THE STATE FOR CERTAIN
EMPLOYERS WHO DO NOT ALREADY OFFER A RETIREMENT PLAN THAT WILL ALLOW THOSE
EMPLOYERS TO OFFER ELIGIBLE EMPLOYEES THE VOLUNTARY CHOICE TO CONTRIBUTE TO AN
INDIVIDUAL RETIREMENT ACCOUNT (IRA) THROUGH A PAYROLL DEDUCTION; TO PROVIDE THE
POWERS, AUTHORITY AND DUTIES OF THE STATE TREASURER; TO PRESCRIBE THE
REQUIREMENTS FOR THE PROGRAM; TO PROVIDE THAT THE IRA TO WHICH CONTRIBUTIONS ARE
MADE WILL BE A ROTH IRA AND THE STANDARD PACKAGE WILL BE A ROTH IRA WITH A
TARGET DATE FUND INVESTMENT AND A SPECIFIED CONTRIBUTION PERCENTAGE; TO PROVIDE
CERTAIN PROTECTION FROM LIABILITY FOR EMPLOYERS IN THE PROGRAM AND FOR THE
STATE; TO PROVIDE FOR THE CONFIDENTIALITY OF PARTICIPANT AND ACCOUNT
INFORMATION; TO CREATE THE MISSISSIPPI WORK AND SAVE ADMINISTRATIVE FUND AS A
SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THAT MONIES IN THE FUND SHALL BE
EXPENDED UPON APPROPRIATION OF THE LEGISLATURE, FOR THE PURPOSES AUTHORIZED IN
THE MISSISSIPPI WORK AND SAVE PROGRAM; TO AMEND SECTION 25-14-5, MISSISSIPPI
CODE OF 1972, TO ALLOW THE MISSISSIPPI DEFERRED COMPENSATION PLAN AND TRUST TO
OFFER ROTH ACCOUNTS AND OTHER AFTER-TAX CONTRIBUTION VEHICLES; TO PROVIDE THAT
A PARTICIPANT'S ROTH OR OTHER ALLOWABLE AFTER-TAX CONTRIBUTION INTO A DEFERRED
COMPENSATION ACCOUNT SHALL BE TREATED BY THE EMPLOYER AS INCLUDABLE IN THE
PARTICIPANT'S INCOME AT THE TIME THE PARTICIPANT WOULD HAVE RECEIVED THAT
AMOUNT IN COMPENSATION IF THE PARTICIPANT HAD NOT MADE A DEFERRED ELECTION; TO
AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS FOR
THE MISSISSIPPI WORK AND SAVE ADMINISTRATIVE FUND; TO AMEND SECTION 25-14-15,
MISSISSIPPI CODE OF 1972, TO CONFORM; TO AMEND SECTION 25-11-105, MISSISSIPPI
CODE OF 1972, TO REQUIRE ANY TERMINATED PLAN PREVIOUSLY APPROVED BY THE BOARD
OF TRUSTEES OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO PAY TO THE BOARD ITS
PORTION OF THE NET PENSION LIABILITY AS OF JUNE 30, 2026, OR THE DATE OF
TERMINATION, WHICHEVER AMOUNT IS GREATER, IN A LUMP SUM BEFORE TERMINATION, AS
PROVIDED BY BOARD REGULATIONS; TO AMEND SECTION 25-11-103, MISSISSIPPI CODE OF
1972, TO REVISE THE DEFINITION OF "AVERAGE COMPENSATION" FOR MEMBERS
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHO BECAME MEMBERS ON OR AFTER MARCH
1, 2026; TO AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 1972, TO REDUCE THE
CREDITABLE SERVICE REQUIREMENT FOR RETIREMENT REGARDLESS OF AGE FROM 35 YEARS
TO 30 YEARS FOR MEMBERS OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHO BECAME
MEMBERS ON OR AFTER MARCH 1, 2026; TO AMEND SECTION 25-11-127, MISSISSIPPI CODE
OF 1972, TO CHANGE THE REQUIRED SEPARATION PERIOD FOR RETIREES RETURNING TO
WORK FROM 90 DAYS TO 30 DAYS; TO CREATE AN ALTERNATIVE RETURN-TO-WORK PROVISION
FOR RETIREES WHO ARE NOT SUBJECT TO AN ACTUARIAL REDUCTION IN THEIR RETIREMENT
ALLOWANCES, EXCEPT AS A RESULT OF TAKING A PARTIAL LUMP-SUM DISTRIBUTION OR ANY
OTHER OPTIONAL BENEFIT UNDER SECTION 25-11-115; TO ALLOW A RETIREE TO RETURN TO
WORK FOR A PERIOD OF TIME AS AGREED TO BETWEEN THE EMPLOYEE AND THE EMPLOYER,
AT COMPENSATION IN AN AMOUNT NOT TO EXCEED 80% OF THE SALARY IN EFFECT FOR THE
POSITION AT THE TIME OF EMPLOYMENT; TO REQUIRE THE EXECUTION OF A WRITTEN
AGREEMENT AFTER THE CONCLUSION OF THE SEPARATION PERIOD PROVIDING CERTAIN
DETAILS OF THE EMPLOYMENT; TO PROVIDE THAT THE EMPLOYER SHALL PAY TO THE BOARD
OF TRUSTEES OF THE SYSTEM THE FULL AMOUNT OF BOTH THE EMPLOYER'S AND THE
EMPLOYEE'S CONTRIBUTIONS ON THE AMOUNT OF COMPENSATION RECEIVED BY THE RETIREE
RETURNING TO WORK; TO SPECIFY THAT THE EMPLOYEE SHALL NOT GAIN ANY ADDITIONAL
RIGHTS OR BENEFITS TOWARD RETIREMENT FROM RETURNING TO WORK UNDER THIS
ALTERNATIVE RETURN-TO-WORK PROVISION; TO SPECIFY THAT EMPLOYER CONTRIBUTIONS
FOR EMPLOYEES RETURNING TO WORK ARE DESIGNED TO OFFSET ANY PENSION LIABILITY
CREATED BY THIS PROVISION; TO PROHIBIT RETIREES FROM RETURNING TO WORK AS
ELECTED OFFICIALS, K-12 SCHOOL SUPERINTENDENTS, OR ADMINISTRATORS AT
UNIVERSITIES OR COMMUNITY OR JUNIOR COLLEGES UNDER THIS PROVISION; TO PROVIDE
FOR THE REPEAL OF THIS PROVISION ON JULY 1, 2036; TO AMEND SECTION 25-11-126,
MISSISSIPPI CODE OF 1972, TO CONFORM TO THE REDUCTION IN THE REQUIRED
SEPARATION PERIOD; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF MISSISSIPPI:

SECTION 1.  Title.
Sections 1 through 13 of this act shall be known and may be cited as the
Mississippi Work and Save Program.

SECTION
2.  Definitions.  For purposes of Sections 1 through 13 of this act, the following terms shall be defined as
provided in this section:

(a)
"Covered employee" means an individual who is employed by a covered
employer, who has wages or other compensation that is allocable to the state,
and who is at least eighteen (18) years of age, and who voluntarily
participates in the program.  The term "covered employee" does not
include:

(i)
Any employee covered under the federal Railway Labor Act (45 USC Section 151).

(ii)
Any employee on whose behalf an employer makes contributions to a Taft-Hartley
multiemployer pension trust fund.

(iii)
Any individual who is an employee of the federal government, the state or any
other state, any county or municipality, or any of the state's, any other
state's, or the federal government's units or instrumentalities.

(b)
"Covered employer" means a person or entity engaged in a business,
industry, profession, trade, or other enterprise in the state, whether for
profit or not for profit, excluding the federal government, the state, any
county, any municipal corporation, or any of the state's or the federal
government's units or instrumentalities, and that voluntarily participates in
the program.  The term "covered employer" does not include an
employer that maintains a specified tax-favored retirement plan for its
employees or has done so effective in form and operation at any time within the
current or two (2) preceding calendar years.  If an employer does not maintain
a specified tax-favored retirement plan for a portion of a calendar year ending
on or after July 1, 2026, and adopts such a plan effective for the remainder of
that calendar year, the employer is exempt from "covered employer"
status for that remainder of the year.

(c)
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended (29 USC Section 1001 et seq.).

(d)
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended (Title 26 of the United States Code).

(e)
"IRA" means a traditional or Roth individual retirement account or
individual retirement annuity under Section 408(a), 408(b), or 408A of the
Internal Revenue Code.

(f)  "Mississippi
Work and Save Administrative Fund," "administrative fund" or
"fund" is the fund established in Section 10 of this act that is
established for the sole purpose of paying the administrative costs and
expenses of the program.

(g)
"Mississippi Work and Save Program" or "program" means the
retirement savings program established by Sections 1 through 13 of this act.

(h)
"Participant" means an individual who is contributing to an IRA under
the program or has an IRA account balance under the program.

(i)
"Participating employer" means a covered employer that provides for
covered employees a payroll deduction IRA provided for by Sections 1
through 13 of this act.

(j)
"Payroll deduction IRA arrangement" or "payroll deduction
IRA" means an arrangement by which an employer allows employees to
contribute to an IRA by means of payroll deduction.

(k)
"Roth IRA" means a Roth individual retirement account or individual
retirement annuity under Section 408A of the Internal Revenue Code.

(l)
"Specified tax-favored retirement plan" means a retirement
plan that is tax-qualified under or is described in and satisfies the
requirements of Section 401(a), 401(k), 403(a), 403(b), 408(k)(Simplified
Employee Pension), or 408(p)(SIMPLE-IRA) of the Internal Revenue Code.

(m)
"Total fees and expenses" means all fees, costs, and expenses,
including, but not limited to, administrative expenses, investment expenses,
investment advice expenses, accounting costs, actuarial costs, legal costs,
marketing expenses, education expenses, trading costs, insurance annuitization
costs, and other miscellaneous costs.

(n)
"Traditional IRA" means a traditional individual retirement account
or traditional individual retirement annuity under Section 408(a) or (b) of the
Internal Revenue Code.

(o)
"Trust" means the trust in which the assets of the program are held.
Where applicable, except as may be otherwise specified, references throughout Sections
1 through 13 of this act to the program
generally are intended to refer also to the trust (including the assets,
facilities, costs and expenses, receipts, expenditures, activities, operations,
administration, or management).

SECTION
3.  Powers, authority, and duties of the State Treasurer.  (1)  The State Treasurer shall design, develop, and
implement the program, and, to that end, may conduct market, legal, and
feasibility analyses.

(2)
The State Treasurer shall have the powers, authority, and duties to:

(a)
Establish, implement, and maintain the program;

(b)
Cause the program, trust, and arrangements and accounts established under the
program to be designed, established, and operated:

(i)
In accordance with best practices for retirement saving vehicles;

(ii)
To encourage participation, saving, sound investment practices, and appropriate
selection of investment options, including any default investments;

(iii)
To maximize simplicity and ease of administration for covered employers;

(iv)
To minimize costs, including by collective investment and other measures to
achieve economies of scale and other efficiencies in program design and
administration;

(v)
To promote portability of benefits; and

(vi)
To avoid preemption of the program by federal law;

(c)
Arrange for collective, common, and pooled investment of assets of the program
and trust, including investments in conjunction with other funds with which
these assets are permitted by law to be collectively invested, with a view to
achieving economies of scale and other efficiencies designed to minimize costs
for the program and its participants;

(d)
Develop and disseminate educational information designed to educate
participants and citizens about the benefits of planning and saving for
retirement and information to help them decide the level of participation and
savings strategies that may be appropriate for them, including information in
furtherance of financial capability and financial literacy;

(e)
If necessary, determine the eligibility of an employer, employee, or other
individual to participate in the program;

(f)
Adopt rules and regulations it deems necessary or advisable for the
implementation of Sections 1 through 13 of
this act and the administration and operation of the program consistent with
the Internal Revenue Code and regulations thereunder, including to ensure that
the program and arrangements established under the program satisfy all criteria
for favorable federal tax treatment and complies, to the extent necessary, with
any other applicable federal or state law;

(g)
Arrange for and facilitate compliance by the program or arrangements
established under the program with all applicable requirements for the program
under the Internal Revenue Code, including requirements for favorable tax
treatment of the IRAs, and under any other applicable federal or state law and
accounting requirements, including using its best efforts to implement
procedures minimizing the risk that covered employees will contribute more to
an IRA than the amount they are eligible for under the Internal Revenue Code to
contribute to the IRA on a tax-favored basis, and otherwise providing or
arranging for assistance to covered employers and covered employees in
complying with applicable law and tax-related requirements in a cost-effective
manner.  The State Treasurer may establish any processes that he reasonably
deems to be necessary or advisable to verify whether an employer is a covered
employer (including reference to online data and possible use of questions in
employer state tax filings);

(h)
Employ or retain a program administrator, executive director, staff, trustee,
recordkeeper, investment managers, investment advisors, other administrative,
professional, expert advisors and service providers, and determine their duties
and compensation.  The State Treasurer may authorize the executive director and
other officials to oversee requests for proposals or other public competitions
and enter into contracts.  The State Treasurer may authorize the executive
director to enter into contracts, as described in paragraph (n) of this
subsection (2), on behalf of the State Treasurer or conduct any business
necessary for the efficient operation of the program;

(i)
Establish procedures for the timely and fair resolution of participant and
other disputes related to accounts or program operation;

(j)
Develop and implement an investment policy that defines the program's
investment objectives, consistent with the objectives of the program, and that
provides for policies and procedures consistent with those investment
objectives.  The State Treasurer shall designate appropriate default
investments that include a mix of asset classes, such as target date and
balanced funds.  The State Treasurer shall seek to minimize participant fees
and expenses of investment and administration.  The State Treasurer shall
strive to design and implement investment options available to holders of
accounts established as part of the program and other program features that are
intended to achieve maximum possible income replacement balanced with an
appropriate level of risk in an IRA-based environment consistent with the
investment objectives under the policy.  The investment options may encompass a
range of risk and return opportunities and allow for a rate of return
commensurate with an appropriate level of risk in view of the investment
objectives under the policy.  The menu of investment options shall be
determined taking into account the nature and objectives of the program, the
desirability (based on behavioral research findings) of limiting investment
choices under the program to a reasonable number, and the extensive investment
choices available to participants if they roll over to an IRA outside the
program.  In accordance with paragraph (h) of this subsection (2), the State
Treasurer, to the extent he deems it necessary or advisable, in his discretion,
in carrying out his responsibilities and exercising his powers under Sections
1 through 13 of this act, shall employ or retain
appropriate entities or personnel to assist or advise him or to whom to
delegate the carrying out of such responsibilities and exercise of such powers;

(k)
Discharge his duties as a fiduciary with respect to the program solely in the
interest of the participants as follows:

(i)
For the exclusive purpose of providing benefits to participants and defraying
reasonable expenses of administering the program; and

(ii)
With the care, skill, prudence, and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar with
those matters would use in the conduct of an enterprise of a like character and
with like aims;

(l)
Cause expenses incurred to initiate, implement, maintain, and administer the
program to be paid from contributions to, or investment returns or assets of,
the program or other money collected by or for the program or pursuant to
arrangements established under the program to the extent permitted under
federal and state law;

(m)
Collect application, account, or administrative fees and to accept any grants,
gifts, legislative appropriation, loans, and other monies from the state, any
unit of federal, state, or local government, or any other person, firm, or entity
to defray the costs of administering and operating the program;

(n)
Make and enter into competitively procured contracts, agreements, memoranda of
understanding, arrangements, partnerships, or other arrangements, to
collaborate and cooperate with, and to retain, employ, and contract with or for
any of the following to the extent necessary or desirable, for the effective
and efficient design, implementation, and administration of the program
consistent with the purposes set forth in Sections 1 through 13 of this act and to maximize outreach to covered
employers and covered employees:

(i)
Services of private and public financial institutions, depositories,
consultants, actuaries, counsel, auditors, investment advisors, investment
administrators, investment management firms, other investment firms, third-party
administrators, other professionals and service providers, and state public
retirement systems;

(ii)
Research, technical, financial, administrative, and other services; and

(iii)
Services of other state agencies to assist the State Treasurer in the exercise
of his powers and duties;

(o)
Make and enter into contracts, agreements, memoranda of understanding,
arrangements, partnerships, or other arrangements to collaborate, cooperate,
coordinate, contract, or combine resources, investments, or administrative
functions with other governmental entities, including states or their agencies
or instrumentalities that maintain or are establishing retirement savings
programs compatible with the program, including collective, common, or pooled
investments with other funds of other states' programs with which the assets of
the program and trust are permitted by law to be collectively invested, to the
extent necessary or desirable for the effective and efficient design,
administration, and implementation of the program consistent with the purposes
set forth in Sections 1 through 13 of
this act, including the purpose of achieving economies of scale and other
efficiencies designed to minimize costs for the program and its participants
and the provisions of Section 4(j) and (l) of this act;

(p)
Develop and implement an outreach plan to gain input and disseminate
information regarding the program and retirement savings in general, including
timely information to covered employers regarding the program and how it
applies to them, with special emphasis on their ability at any time to sponsor
a specified tax-favored retirement plan that would exempt them from any
responsibilities under the program;

(q)
Cause monies to be held and invested and reinvested under the program;

(r)
Ensure that all contributions to IRAs under the program may be used only to:

(i)
Pay benefits to participants under the program;

(ii)
Pay the cost of administering the program; and

(iii)
Make investments for the benefit of the program, and that no assets of the
program or trust are transferred to the State General Fund or to any other fund
of the state or are otherwise encumbered or used for any purpose other than
those specified in this subsection (2);

(s)
Make provision for the payment of costs of administration and operation of the
program and trust;

(t)
Consider whether or not procedures should be promulgated to allow employers
that are not covered employers because they are exempt from covered employer
status to voluntarily participate in the program by enrolling their employees
in payroll deduction IRAs, taking into account, among other considerations, the
potential legal consequences and the degree of employer demand to participate
or facilitate participation by employees;

(u)
Evaluate the need for, and procure if and as needed, insurance against any and
all loss in connection with the property, assets, or activities of the program,
and evaluate the need for, and procure if and as deemed necessary, pooled
private insurance;

(v)
Indemnify, including procurement of insurance if and as needed for this
purpose, the State Treasurer from personal loss or liability resulting from his
action or inaction;

(w)
Collaborate with, and evaluate the role of, financial advisors or other
financial professionals, including in assisting and providing guidance for
covered employees; and

(x)
Carry out its powers and duties under the program pursuant to Sections 1
through 13 of this act and exercise any and all
other powers as are appropriate for the effectuation of the purposes,
objectives, and provisions of Sections 1 through 13 of this act pertaining to the program.

(3)
The State Treasurer and his staff shall not:

(a)
Directly or indirectly have any interest in the making of any investment under
the program or in gains or profits accruing from any such investment;

(b)
Borrow any program-related funds or deposits, or use any such funds or deposits
in any manner, for himself or herself or as an agent or partner of others; or

(c)
Become an endorser, surety, or obligor on investments made under the program.

SECTION 4.
Requirements for the Mississippi Work and Save Program.  The program
developed and established under Sections 1 through 13 of this act must:

(a)  Allow eligible
individuals in the state to voluntarily choose whether or not to contribute to
an IRA under the program, including allowing covered employees in the state the
choice to contribute to an IRA through payroll deduction under the program;

(b)  Allow each covered
employer to voluntarily offer its employees the voluntary choice whether or not
to contribute to a payroll deduction IRA by permitting automatic enrollment
where employees may opt out of participation;

(c)  Provide that the
IRA to which contributions are made will be a Roth IRA, except that the State Treasurer shall have the authority at any time,
to add an option for all participants to affirmatively elect to contribute to a
traditional IRA as an alternative to the Roth IRA;

(d)  Provide that the
standard package shall be a Roth IRA with a target date fund investment, and
that the covered employee can choose to stop participation altogether, can use
a traditional IRA and a different investment from among the options available,
and can contribute at a higher or lower contribution rate, subject to the IRA
contribution dollar limits applicable under the Internal Revenue Code;

(e)
Provide on a uniform basis, if and when the
State Treasurer so determines, in its discretion, for annual increases of each
participant's contribution rate, by not more than one percent (1%) of salary or
wages per year up to a maximum of eight percent (8%).  Any such increases shall
apply to participants, as determined by the State Treasurer, by default or only
if initiated by affirmative participant election (including as part of the
standard package), in either case subject to the IRA contribution limits
applicable under the Internal Revenue Code;

(f)
Provide for direct deposit of contributions into
investments under the program;

(g)
Be professionally managed;

(h)
Permit no employer contributions by covered
employers;

(i)
Provide for reports on the status of each
participant's account to be provided to each participant at least annually;

(j)
When possible and practicable, use existing or
new employer, other private-sector, and public infrastructure and common,
collective, or pooled investment arrangements to the extent desirable to
facilitate and enhance the effectiveness and efficiency of program outreach,
enrollment, contributions, recordkeeping, investment, distributions,
compliance, and other aspects of program design, administration and
implementation consistent with the purposes set forth in Sections 1
through 13 of this act, including the purpose of
achieving economies of scale and other efficiencies designed to minimize costs
for the program and its participants and the provisions of paragraph (l) of
this section;

(k)  Provide that each
account holder owns the contributions to or earnings on amounts contributed to
his or her account under the program and that the state and employers have no
proprietary interest in those contributions or earnings;

(l)  Be designed and
implemented in a manner consistent with federal law, including favorable
federal tax treatment, to the extent that it applies and is consistent with the
program not being preempted by ERISA;

(m)  Make provision for
the participation in the program of individuals who are not employees;

(n)  Keep total fees
and expenses as low as practicable and in any event each year not in excess of
seventy-five hundredths of one percent (0.75%) of the total assets of the
program, except that this limit shall not apply during a start-up period of
three (3) years beginning with the initial implementation of the program;

(o)  Establish rules
and procedures governing the distribution of funds from the program, including
such distributions as may be permitted or required by the program and any
applicable provisions of tax laws, with the objectives of maximizing financial
security in retirement, helping to protect spousal rights, and assisting
participants with the challenges of decumulation of savings.  The State
Treasurer shall have the authority, in his discretion, to provide for one or
more reasonably priced distribution options to provide a source of fixed
regular retirement income, including income for life or for the participant's
life expectancy (or for joint lives and life expectancies, as applicable); and

(p)  Establish rules
and procedures promoting portability of benefits, including the ability to make
tax-free rollovers or transfers from IRAs under the program to other IRAs or to
tax-qualified plans that accept such rollovers or transfers provided any rollover
is initiated by participants and not solicited by agents or brokers.

SECTION 5.  Rules
for the Mississippi Work and Save Program.  The State Treasurer shall adopt
rules to implement the program that:

(a)  Establish the processes
for enrollment and contributions to payroll deduction IRAs under the program,
including elections by covered employees, withholding by covered employers of
employee payroll deduction contributions from wages and remittance for deposit
to IRAs, and voluntary enrollment and contributions by others, including self-employed
individuals and independent contractors, through payroll deduction or
otherwise;

(b)  Establish the
processes for withdrawals, rollovers, and direct transfers from IRAs under the
program in the interest of facilitating portability and maximization of
benefits;

(c)  Establish
processes for phasing in enrollment of eligible individuals;

(d)  Conduct outreach
to individuals, employers, other stakeholders, and the public regarding the
program.  Specify the contents, frequency, timing, and means of required
disclosures from the program to covered employees, participants, other
individuals eligible to participate in the program, covered employers, and
other interested parties.  These disclosures shall include, but need not be
limited to:

(i)  The benefits
associated with tax-favored retirement saving;

(ii)  The potential
advantages and disadvantages associated with contributing to Roth IRAs and, if
applicable, traditional IRAs under the program;

(iii)  The
eligibility rules for Roth IRAs and, if applicable, traditional IRAs;

(iv)  That the
individual (and not the employer, the state, any state official, or the
program) will be solely responsible for determining whether, and, if so, how
much, the individual is eligible to contribute on a tax-favored basis to an
IRA;

(v)  The penalty
for excess contributions to IRAs and the method of correcting excess
contributions;

(vi)  Instructions
for enrolling, making elections to contribute or to decline to contribute, and
making elections regarding contribution rates, type of IRA, and investments;

(vii)  Instructions
for implementing and for changing the elections;

(viii)  The
potential availability of a saver's tax credit, including the eligibility
conditions for the credit and instructions on how to claim it;

(ix)  That
employees seeking tax, investment, or other financial advice should contact
appropriate professional advisors, and that covered employers are not in a position
to provide such advice and are not liable for decisions individuals make in
relation to the program;

(x)  That the
payroll deduction IRAs are intended not to be employer-sponsored retirement
plans and that the program is not an employer-sponsored retirement plan;

(xi)  The potential
implications of account balances under the program for the application of asset
limits under certain public assistance programs;

(xii)  That the
account owner is solely responsible for investment performance, including
market gains and losses, and that IRA accounts and rates of return are not
guaranteed by any employer, the state, any state official, or the program;

(xiii)  Additional
information about retirement and saving and other information designed to promote
financial literacy and capability (which may take the form of links to, or
explanations of how to obtain, such information); and

(xiv)  How to
obtain additional information about the program.

SECTION 6.  Protection
from liability for employers.  (1)  A covered employer or other employer is
not and shall not be liable for or bear responsibility for:

(a)  An employee's
decision to participate in or not to participate in the program or a
participant's specific elections under the program;

(b)  Participants' or
the State Treasurer's investment decisions;

(c)  The
administration, investment, investment returns, or investment performance of
the program, including, without limitation, any interest rate or other rate of
return on any contribution or account balance, provided they play no role;

(d)  The program design
or the benefits paid to participants;

(e)  Individuals'
awareness of or compliance with the conditions and other provisions of the tax
laws that determine which individuals are eligible to make tax-favored
contributions to IRAs, in what amount, and in what time frame and manner; or

(f)  Any loss, failure
to realize any gain, or any other adverse consequences, including, without
limitation, any adverse tax consequences or loss of favorable tax treatment,
public assistance, or other benefits, incurred by any person as a result of
participating in the program.

(2)  No covered employer or
other employer shall be, or shall be considered to be, a fiduciary in relation
to the program or trust or any other arrangement under the program.

SECTION 7.
Protection from liability for the state.  (1)  The state, any state
official, commission or agency, any member, officer or employee thereof, and
the program:

(a)  Have no
responsibility for compliance by individuals with the conditions and other
provisions of the Internal Revenue Code that determine which individuals are
eligible to make tax-favored contributions to IRAs, in what amount, and in what
time frame and manner;

(b)  Have no duty, responsibility,
or liability to any party for the payment of any benefits under the program,
regardless of whether sufficient funds are available under the program to pay
such benefits;

(c)  Do not and shall
not guarantee any interest rate or other rate of return on or investment performance
of any contribution or account balance; and

(d)  Are not and shall
not be liable or responsible for any loss, deficiency, failure to realize any
gain, or any other adverse consequences, including, without limitation, any
adverse tax consequences or loss of favorable tax treatment, public assistance
or other benefits, incurred by any person as a result of participating in the
program.

(2)  The debts, contracts,
and obligations of the program are not the debts, contracts, and obligations of
the state, and neither the faith and credit nor the taxing power of the state
is pledged directly or indirectly to the payment of the debts, contracts, and
obligations of the program.

SECTION 8.
Confidentiality of participant and account information.  Individual account
information relating to accounts under the program and relating to individual
participants (including, but not limited to, names, addresses, telephone
numbers, email addresses, personal identification information, investments,
contributions, and earnings) is confidential and must be maintained as
confidential:

(a)  Except to the
extent necessary to administer the program in a manner consistent with Sections
1 through 13 of this act, the tax laws of this state, and the Internal Revenue
Code; or

(b)  Unless the
individual who provides the information or is the subject of the information
expressly agrees in writing to the disclosure of the information.

SECTION 9.  Intergovernmental
collaboration and cooperation.  The State Treasurer may enter into an
intergovernmental agreement or memorandum of understanding with the state and
any agency of the state to receive outreach, technical assistance, enforcement
and compliance services, collection or dissemination of information pertinent
to the program (subject to such obligations of confidentiality as may be agreed
or required by law), or other services or assistance.  The state and any
agencies of the state that enter into such agreements or memoranda of
understanding shall collaborate to provide the outreach, assistance,
information, and compliance or other services or assistance to the State
Treasurer.  The memoranda of understanding may cover the sharing of costs
incurred in gathering and disseminating information and the reimbursement of
costs for any enforcement activities or assistance.

SECTION 10.  Funding
of program.  (1)  The Mississippi Work and Save Administrative Fund is
created as a special fund in the State Treasury.  Monies in the fund shall be
expended by the State Treasurer, upon appropriation of the Legislature, for the
purposes authorized in Sections 1 through 13 of this act.  The fund shall
consist of:

(a)  Monies appropriated to or transferred into the
fund by the Legislature, or otherwise made available by the Legislature in any
manner;

(b)  Monies transferred to the fund from the federal
government, other state agencies, or local governments;

(c)  Monies from the payment of application,
account, administrative, or other fees and the payment of other monies due the State Treasurer;

(d)  Any gifts,
donations, or grants made to the state for deposit in the fund;

(e)  Monies collected for the fund from
contributions to, or investment returns or assets of, the program or other monies collected by or for the program or
pursuant to arrangements established under the program to the extent permitted
under federal and state law; and

(f)  Earnings on monies in the fund.

(2)  The State Treasurer
shall accept any grants, gifts, appropriations, or other monies from the state, any unit of federal,
state, or local government, or any other person, firm, partnership,
corporation, or other entity solely for deposit into the fund, whether for
investment or administrative expenses.

(3)  Unexpended amounts
remaining in the fund at the end of a fiscal year shall not lapse into the
State General Fund, and any interest earned or investment earnings on amounts
in the fund shall be deposited into such fund.

(4)  To enable or facilitate
the start-up and continuing operation, maintenance, administration, and
management of the program until the program accumulates sufficient balances and
can generate sufficient funding through fees assessed on program accounts for
the program to become financially self-sustaining:

(a)  The State
Treasurer may borrow from the state, any unit of federal, state, or local
government, or any other person, firm, partnership, corporation, or other
entity working capital funds and other funds as may be necessary for this
purpose, provided that such funds are borrowed in the name of the program only
and that any such borrowings shall be payable solely from the revenues of the
program; and

(b)  The State
Treasurer may enter into long-term procurement contracts with one or more
financial providers that provide a fee structure that would assist the program
in avoiding or minimizing the need to borrow or to rely upon general assets of
the state.

(5)  The state may pay
administrative costs associated with the creation, maintenance, operation, and
management of the program and trust until sufficient assets are available in
the fund for that purpose.  Thereafter, all administrative costs of the fund,
including any repayment of start-up funds provided by the state, shall be
repaid only out of monies on deposit in
the fund.  However, private funds or federal funding received in order to
implement the program until the fund is self-sustaining shall not be repaid
unless those funds were offered contingent upon the promise of such repayment.

(6)  The State Treasurer may
use the monies in the fund solely to pay
the administrative costs and expenses of the program and the administrative
costs and expenses the State Treasurer incurs in the performance of his duties
under Sections 1 through 13 of this act.

SECTION 11.  Audits
and annual reports.  (1)  The State Treasurer shall cause an accurate
account of all of the program's, trust's, and State Treasurer's activities,
operations, receipts, and expenditures to be maintained.  Each year, a full
audit of the books and accounts of the State Treasurer pertaining to those
activities, operations, receipts and expenditures, personnel, services, or
facilities shall be conducted by a certified public accountant and shall
include, but not be limited to, direct and indirect costs attributable to the
use of outside consultants, independent contractors, and any other persons who
are not state employees for the administration of the program.  For the
purposes of the audit, the auditors shall have access to the properties and
records of the program and may prescribe methods of accounting and the
rendering of periodic reports in relation to projects undertaken by the
program.

(2)  By August 1 of each
year, the State Treasurer shall submit to the Governor, the State Treasurer,
and the appropriate committees of the Senate and House an audited financial
report, prepared in accordance with generally accepted accounting principles,
detailing the activities, operations, receipts, and expenditures of the program
during the preceding calendar year.  The report shall also include projected
activities of the program for the current calendar year.

(3)  The State Treasurer
shall prepare an annual report on the operation of the program to be available
to all citizens and provided to appropriate state officials.

SECTION 12.  Applicability
dates.  (1)  The State Treasurer shall establish the program so that
individuals can begin contributing under the program not later than August 1,
2028.

(2)  The State Treasurer
may, in his discretion, phase in the program so that the ability to contribute
first applies on different dates for different classes of individuals,
including employees of employers of different sizes or types and individuals
who are not employees (self-employed, independent contractors, etc.).  However,
any such staged or phased-in implementation schedule must be substantially
completed not later than July 1, 2028.

(3)  The State Treasurer
shall not implement the program if and to the extent that it determines that
the program is preempted by ERISA.  Accordingly, if and as needed, the State
Treasurer shall implement the program in a severable fashion to the extent
practicable if and to the extent that the State Treasurer determines:

(a)  That a portion or
aspect of the program is preempted by ERISA, the State Treasurer shall not
implement that portion or aspect of the program but shall proceed to implement
the remainder of the program to the extent practicable; or

(b)  That some but not
all of the payroll deduction IRA arrangements or other arrangements under the
program are or would be employee benefit plans under ERISA, the State Treasurer
shall proceed to implement the program with respect to the other arrangements
under the program to the extent practicable.

SECTION 13.  Bonds.
(1)  As used in this section, the following words shall have the meanings
ascribed herein unless the context clearly requires otherwise:

(a)  "Accreted
value" of any bond means, as of any date of computation, an amount equal
to the sum of (i) the stated initial value of such bond, plus (ii) the interest
accrued thereon from the issue date to the date of computation at the rate,
compounded semiannually, that is necessary to produce the approximate yield to
maturity shown for bonds of the same maturity.

(b)  "State"
means the State of Mississippi.

(c)
"Commission" means the State Bond Commission.

(2)  (a)  The
commission, at one time, or from time to time, may declare by resolution the
necessity for issuance of general obligation bonds of the State of Mississippi
to provide funds for the Mississippi Work and Save Administrative Fund created
in Section 10 of this act.  Upon the adoption of a resolution by the Department
of Finance and Administration declaring the necessity for the issuance of any
part or all of the general obligation bonds authorized by this subsection, the
department shall deliver a certified copy of its resolution or resolutions to
the commission.  Upon receipt of such resolution, the commission, in its
discretion, may act as the issuing agent, prescribe the form of the bonds,
determine the appropriate method for sale of the bonds, advertise for and
accept bids or negotiate the sale of the bonds, issue and sell the bonds so
authorized to be sold, and do any and all other things necessary and advisable
in connection with the issuance and sale of such bonds.  The total amount of
bonds issued under this section shall not exceed Two Hundred Thousand Dollars
($200,000.00).  No bonds authorized under this section shall be issued after
July 1, 2030.

(b)  The proceeds of
bonds issued pursuant to this section shall be deposited into the Mississippi
Work and Save Administrative Fund created pursuant to Section 10 of this act.
Any investment earnings on bonds issued pursuant to this section shall be used
to pay debt service on bonds issued under this section, in accordance with the
proceedings authorizing issuance of such bonds.

(3)  The principal of and
interest on the bonds authorized under this section shall be payable in the
manner provided in this subsection.  Such bonds shall bear such date or dates,
be in such denomination or denominations, bear interest at such rate or rates
(not to exceed the limits set forth in Section 75-17-101, Mississippi Code of
1972), be payable at such place or places within or without the State of
Mississippi, shall mature absolutely at such time or times not to exceed twenty-five
(25) years from date of issue, be redeemable before maturity at such time or
times and upon such terms, with or without premium, shall bear such
registration privileges, and shall be substantially in such form, all as shall
be determined by resolution of the commission.

(4)  The bonds
authorized by this section shall be signed by the chairman of the commission,
or by his facsimile signature, and the official seal of the commission shall be
affixed thereto, attested by the secretary of the commission.  The interest
coupons, if any, to be attached to such bonds may be executed by the facsimile
signatures of such officers.  Whenever any such bonds shall have been signed by
the officials designated to sign the bonds who were in office at the time of
such signing but who may have ceased to be such officers before the sale and
delivery of such bonds, or who may not have been in office on the date such
bonds may bear, the signatures of such officers upon such bonds and coupons
shall nevertheless be valid and sufficient for all purposes and have the same
effect as if the person so officially signing such bonds had remained in office
until their delivery to the purchaser, or had been in office on the date such
bonds may bear.  However, notwithstanding anything herein to the contrary, such
bonds may be issued as provided in the Registered Bond Act of the State of
Mississippi.

(5)  All bonds and
interest coupons issued under the provisions of this section have all the
qualities and incidents of negotiable instruments under the provisions of the
Uniform Commercial Code, and in exercising the powers granted by this section,
the commission shall not be required to and need not comply with the provisions
of the Uniform Commercial Code.

(6)  The commission
shall act as the issuing agent for the bonds authorized under this section,
prescribe the form of the bonds, determine the appropriate method for sale of
the bonds, advertise for and accept bids or negotiate the sale of the bonds,
issue and sell the bonds so authorized to be sold, pay all fees and costs
incurred in such issuance and sale, and do any and all other things necessary
and advisable in connection with the issuance and sale of such bonds.  The
commission is authorized and empowered to pay the costs that are incident to
the sale, issuance and delivery of the bonds authorized under this section from
the proceeds derived from the sale of such bonds.  The commission shall sell
such bonds on sealed bids at public sale or may negotiate the sale of the bonds
for such price as it may determine to be for the best interest of the State of
Mississippi.  All interest accruing on such bonds so issued shall be payable
semiannually or annually.

If the bonds are to be sold
on sealed bids at public sale, notice of the sale of any such bonds shall be
published at least one time, not less than ten (10) days before the date of
sale, and shall be so published in one or more newspapers published or having a
general circulation in the City of Jackson, Mississippi,  selected by the
commission.

The commission, when issuing
any bonds under the authority of this section, may provide that bonds, at the
option of the State of Mississippi, may be called in for payment and redemption
at the call price named therein and accrued interest on such date or dates
named therein.

(7)  The bonds issued
under the provisions of this section are general obligations of the State of
Mississippi, and for the payment thereof the full faith and credit of the State
of Mississippi is irrevocably pledged.  If the funds appropriated by the
Legislature are insufficient to pay the principal of and the interest on such
bonds as they become due, then the deficiency shall be paid by the State
Treasurer from any funds in the State Treasury not otherwise appropriated.  All
such bonds shall contain recitals on their faces substantially covering the
provisions of this subsection.

(8)  Upon the
issuance and sale of bonds under the provisions of this section, the commission
shall transfer the proceeds of any such sale or sales to the Mississippi Work
and Save Administrative Fund created in Section 10 of this act.  The proceeds
of such bonds shall be disbursed as provided in such section under such
restrictions, if any, as may be contained in the resolution providing for the
issuance of the bonds.

(9)  The bonds
authorized under this section may be issued without any other proceedings or
the happening of any other conditions or things other than those proceedings,
conditions and things which are specified or required by this section.  Any
resolution providing for the issuance of bonds under the provisions of this
section shall become effective immediately upon its adoption by the commission,
and any such resolution may be adopted at any regular or special meeting of the
commission by a majority of its members.

(10)  The bonds
authorized under the authority of this section may be validated in the Chancery
Court of the First Judicial District of Hinds County, Mississippi, in the
manner and with the force and effect provided by Chapter 13, Title 31,
Mississippi Code of 1972, for the validation of county, municipal, school
district and other bonds.  The notice to taxpayers required by such statutes
shall be published in a newspaper published or having a general circulation in
the City of Jackson, Mississippi.

(11)  Any holder of
bonds issued under the provisions of this section or of any of the interest
coupons pertaining thereto may, either at law or in equity, by suit, action,
mandamus or other proceeding, protect and enforce any and all rights granted
under this section, or under such resolution, and may enforce and compel
performance of all duties required by this section to be performed, in order to
provide for the payment of bonds and interest thereon.

(12)  All bonds
issued under the provisions of this section shall be legal investments for
trustees and other fiduciaries, and for savings banks, trust companies and insurance
companies organized under the laws of the State of Mississippi, and such bonds
shall be legal securities which may be deposited with and shall be received by
all public officers and bodies of this state and all municipalities and
political subdivisions for the purpose of securing the deposit of public funds.

(13)  Bonds issued
under the provisions of this section and income therefrom shall be exempt from
all taxation in the State of Mississippi.

(14)  The proceeds of
the bonds issued under this section shall be used solely for the purposes
therein provided, including the costs incident to the issuance and sale of such
bonds.

(15)  The State
Treasurer is authorized, without further process of law, to certify to the
Department of Finance and Administration the necessity for warrants, and the
Department of Finance and Administration is authorized and directed to issue
such warrants, in such amounts as may be necessary to pay when due the
principal of, premium, if any, and interest on, or the accreted value of, all
bonds issued under this section; and the State Treasurer shall forward the
necessary amount to the designated place or places of payment of such bonds in
ample time to discharge such bonds, or the interest thereon, on the due dates
thereof.

(16)  This section
shall be deemed to be full and complete authority for the exercise of the
powers therein granted, but this section shall not be deemed to repeal or to be
in derogation of any existing law of this state.

SECTION 14.  Section
25-14-5, Mississippi Code of 1972, is amended as follows:

25-14-5.  (1)  The
State of Mississippi, or any state agency, county, municipality or other
political subdivision may, by contract, agree with any employee to defer, in
whole or in part, any portion of that employee's income, and a county,
municipality or other political subdivision, except community and junior
college districts, may make contributions to the plan on behalf of actively
participating members on a uniform basis through an employer contribution agreement
as provided for in the Mississippi Deferred Compensation Plan and Trust Plan
Document if making the contribution does not conflict with any other state
law.  Those funds may subsequently be used to purchase a fixed or variable life
insurance or annuity contract authorized for purchase by the Public Employees'
Retirement System of Mississippi for the purpose of protecting its obligation
to the deferred compensation program for the employee from any life underwriter
duly licensed by this state who represents an insurance company licensed to
contract fixed and variable annuities and fixed or variable life insurance
business in this state and authorized by the Public Employees' Retirement
System of Mississippi to offer their products in the plan, or to purchase any
investments authorized for purchase by the Public Employees' Retirement System
of Mississippi under Section 25-11-121, or to invest those monies in a fund or
funds maintained by a corporate trustee, which fund or funds are used as an
investment media for retirement, pension or profit sharing plans that are tax
qualified for that purpose.  However, in the administration of this plan, the
Public Employees' Retirement System of Mississippi may adopt such regulations
as are reasonable and necessary to assure the orderly functioning of the plan,
but those regulations shall not unreasonably restrict all licensed life
underwriters and insurance companies described in this section from
concurrently participating in providing contracts authorized under this
section.

(2)  Anything in any
other law to the contrary notwithstanding, except as provided in subsection
(3) of this section, the deferred portion of the employee's compensation,
the plan and the monies in the plan created by this chapter are exempt from any
state, county or municipal ad valorem taxes, income taxes, premium taxes,
privilege taxes, property taxes, sales and use taxes and any other taxes not so
named, until the deferred compensation is paid to the employee or beneficiary
and exempt from levy, garnishment, attachment or any other process whatsoever.

(3)  The Mississippi
Deferred Compensation Plan and Trust, or any other deferred compensation plan
established by this chapter, may include Roth accounts pursuant to 26 USC §
402A or any other after-tax contribution vehicle allowed under the Internal
Revenue Code, if permitted by the plan document.  A participant's Roth or other
allowable after-tax contribution into a deferred compensation account shall be
treated by the employer as includable in the participant's income at the time
the participant would have received that amount in compensation if the
participant had not made a deferred election.

SECTION 15.  Section
25-14-15, Mississippi Code of 1972, is amended as follows:

25-14-15.  Notwithstanding
any other provision of this chapter or any other provision of law to the
contrary, except as provided in Section 25-14-5(3), any sum deferred
under the deferred compensation program shall not be included for the purposes
of computation of any taxes withheld on behalf of any employee.

SECTION 16.  Section
25-11-105, Mississippi Code of 1972, is amended as follows:

25-11-105.  I.  THOSE
WHO ARE ELIGIBLE FOR MEMBERSHIP

The membership of this
retirement system shall be composed as follows:

(a)  (i)  All persons
who become employees in the state service after January 31, 1953, and whose
wages are subject to payroll taxes and are lawfully reported on IRS Form W-2,
except those specifically excluded, or as to whom election is provided in
Articles 1 and 3, shall become members of the retirement system as a condition
of their employment.

(ii)  From and
after July 1, 2002, any individual who is employed by a governmental entity to
perform professional services shall become a member of the system if the
individual is paid regular periodic compensation for those services that is
subject to payroll taxes, is provided all other employee benefits and meets the
membership criteria established by the regulations adopted by the board of
trustees that apply to all other members of the system; however, any active
member employed in such a position on July 1, 2002, will continue to be an
active member for as long as they are employed in any such position.

(b)  All persons who
become employees in the state service after January 31, 1953, except those
specifically excluded or as to whom election is provided in Articles 1 and 3,
unless they file with the board before the lapse of sixty (60) days of
employment or sixty (60) days after the effective date of the cited articles,
whichever is later, on a form prescribed by the board, a notice of election not
to be covered by the membership of the retirement system and a duly executed
waiver of all present and prospective benefits that would otherwise inure to
them on account of their participation in the system, shall become members of
the retirement system; however, no credit for prior service will be granted to
members who became members of the system before July 1, 2007, until they have
contributed to Article 3 of the retirement system for a minimum period of at
least four (4) years, or to members who became members of the system on or
after July 1, 2007, until they have contributed to Article 3 of the retirement
system for a minimum period of at least eight (8) years.  Those members shall
receive credit for services performed before January 1, 1953, in employment now
covered by Article 3, but no credit shall be granted for retroactive services
between January 1, 1953, and the date of their entry into the retirement system,
unless the employee pays into the retirement system both the employer's and the
employee's contributions on wages paid him during the period from January 31,
1953, to the date of his becoming a contributing member, together with interest
at the rate determined by the board of trustees.  Members reentering after
withdrawal from service shall qualify for prior service under the provisions of
Section 25-11-117.  From and after July 1, 1998, upon eligibility as noted
above, the member may receive credit for such retroactive service provided:

(i)  The member
shall furnish proof satisfactory to the board of trustees of certification of
that service from the covered employer where the services were performed; and

(ii)  The member
shall pay to the retirement system on the date he or she is eligible for that
credit or at any time thereafter before the date of retirement the actuarial
cost for each year of that creditable service.  The provisions of this
subparagraph (ii) shall be subject to the limitations of Section 415 of the
Internal Revenue Code and regulations promulgated under Section 415.

Nothing contained in this
paragraph (b) shall be construed to limit the authority of the board to allow
the correction of reporting errors or omissions based on the payment of the
employee and employer contributions plus applicable interest.

(c)  All persons who
become employees in the state service after January 31, 1953, and who are
eligible for membership in any other retirement system shall become members of
this retirement system as a condition of their employment, unless they elect at
the time of their employment to become a member of that other system.

(d)  All persons who
are employees in the state service on January 31, 1953, and who are members of
any nonfunded retirement system operated by the State of Mississippi, or any of
its departments or agencies, shall become members of this system with prior
service credit unless, before February 1, 1953, they file a written notice with
the board of trustees that they do not elect to become members.

(e)  All persons who
are employees in the state service on January 31, 1953, and who under existing
laws are members of any fund operated for the retirement of employees by the
State of Mississippi, or any of its departments or agencies, shall not be
entitled to membership in this retirement system unless, before February 1,
1953, any such person indicates by a notice filed with the board, on a form
prescribed by the board, his individual election and choice to participate in
this system, but no such person shall receive prior service credit unless he
becomes a member on or before February 1, 1953.

(f)  Each political
subdivision of the state and each instrumentality of the state or a political
subdivision, or both, is authorized to submit, for approval by the board of
trustees, a plan for extending the benefits of this article to employees of any
such political subdivision or instrumentality.  Each such plan or any amendment
to the plan for extending benefits thereof shall be approved by the board of
trustees if it finds that the plan, or the plan as amended, is in conformity
with such requirements as are provided in Articles 1 and 3; however, upon
approval of the plan or any such plan previously approved by the board of
trustees, the approved plan shall not be subject to cancellation or termination
by the political subdivision or instrumentality.  Any plan terminated
through legislation, privatization, sale, dissolution, actions of the board
through subparagraph (v) of this paragraph, or any other method, shall pay to
the board its portion of the net pension liability as of June 30, 2026, or the
date of termination, whichever amount is greater, in a lump sum before
termination, as provided by board regulations.  No such plan shall be
approved unless:

(i)  It provides
that all services that constitute employment as defined in Section 25-11-5 and
are performed in the employ of the political subdivision or instrumentality, by
any employees thereof, shall be covered by the plan, with the exception of
municipal employees who are already covered by existing retirement plans;
however, those employees in this class may elect to come under the provisions
of this article;

(ii)  It specifies
the source or sources from which the funds necessary to make the payments
required by paragraph (d) of Section 25-11-123 and of paragraph (f)(v)2 and 3
of this section are expected to be derived and contains reasonable assurance
that those sources will be adequate for that purpose;

(iii)  It provides
for such methods of administration of the plan by the political subdivision or
instrumentality as are found by the board of trustees to be necessary for the
proper and efficient administration thereof;

(iv)  It provides
that the political subdivision or instrumentality will make such reports, in
such form and containing such information, as the board of trustees may from
time to time require;

(v)  It authorizes
the board of trustees to terminate the plan in its entirety in the discretion
of the board if it finds that there has been a failure to comply substantially
with any provision contained in the plan, the termination to take effect at the
expiration of such notice and on such conditions as may be provided by
regulations of the board and as may be consistent with applicable federal law.

1.  The board
of trustees shall not finally refuse to approve a plan submitted under
paragraph (f), and shall not terminate an approved plan without reasonable
notice and opportunity for hearing to each political subdivision or
instrumentality affected by the board's decision.  The board's decision in any
such case shall be final, conclusive and binding unless an appeal is taken by
the political subdivision or instrumentality aggrieved by the decision to the
Circuit Court of the First Judicial District of Hinds County, Mississippi, in
accordance with the provisions of law with respect to civil causes by
certiorari.

2.  Each
political subdivision or instrumentality as to which a plan has been approved
under this section shall pay into the contribution fund, with respect to wages
(as defined in Section 25-11-5), at such time or times as the board of trustees
may by regulation prescribe, contributions in the amounts and at the rates
specified in the applicable agreement entered into by the board.

3.  Every
political subdivision or instrumentality required to make payments under
paragraph (f)(v)2 of this section is authorized, in consideration of the
employees' retention in or entry upon employment after enactment of Articles 1
and 3, to impose upon its employees, as to services that are covered by an
approved plan, a contribution with respect to wages (as defined in Section 25-11-5)
not exceeding the amount provided in Section 25-11-123(d) if those services
constituted employment within the meaning of Articles 1 and 3, and to deduct
the amount of the contribution from the wages as and when paid.  Contributions
so collected shall be paid into the contribution fund as partial discharge of
the liability of the political subdivisions or instrumentalities under
paragraph (f)(v)2 of this section.  Failure to deduct the contribution shall
not relieve the employee or employer of liability for the contribution.

4.  Any state
agency, school, political subdivision, instrumentality or any employer that is
required to submit contribution payments, termination payments or wage
reports under any section of this chapter shall be assessed interest on
delinquent payments or wage reports as determined by the board of trustees in
accordance with rules and regulations adopted by the board and delinquent
payments, assessed interest and any other amount certified by the board as owed
by an employer, may be recovered by action in a court of competent jurisdiction
against the reporting agency liable therefor or may, upon due certification of
delinquency and at the request of the board of trustees, be deducted from any
other monies payable to the reporting agency by any department or agency of the
state.

5.  Each
political subdivision of the state and each instrumentality of the state or a
political subdivision or subdivisions that submit a plan for approval of the
board, as provided in this section, shall reimburse the board for coverage into
the expense account, its pro rata share of the total expense of administering
Articles 1 and 3 as provided by regulations of the board.

(g)  The board may, in
its discretion, deny the right of membership in this system to any class of
employees whose compensation is only partly paid by the state or who are
occupying positions on a part-time or intermittent basis.  The board may, in
its discretion, make optional with employees in any such classes their
individual entrance into this system.

(h)  An employee whose
membership in this system is contingent on his own election, and who elects not
to become a member, may thereafter apply for and be admitted to membership; but
no such employee shall receive prior service credit unless he becomes a member
before July 1, 1953, except as provided in paragraph (b).

(i)  If any member of
this system changes his employment to any agency of the state having an
actuarially funded retirement system, the board of trustees may authorize the
transfer of the member's creditable service and of the present value of the
member's employer's accumulation account and of the present value of the
member's accumulated membership contributions to that other system, provided
that the employee agrees to the transfer of his accumulated membership
contributions and provided that the other system is authorized to receive and
agrees to make the transfer.

If any member of any other
actuarially funded system maintained by an agency of the state changes his
employment to an agency covered by this system, the board of trustees may
authorize the receipt of the transfer of the member's creditable service and of
the present value of the member's employer's accumulation account and of the
present value of the member's accumulated membership contributions from the
other system, provided that the employee agrees to the transfer of his
accumulated membership contributions to this system and provided that the other
system is authorized and agrees to make the transfer.

(j)  Wherever state
employment is referred to in this section, it includes joint employment by
state and federal agencies of all kinds.

(k)  Employees of a
political subdivision or instrumentality who were employed by the political
subdivision or instrumentality before an agreement between the entity and the
Public Employees' Retirement System to extend the benefits of this article to
its employees, and which agreement provides for the establishment of
retroactive service credit, and who became members of the retirement system
before July 1, 2007, and have remained contributors to the retirement system
for four (4) years, or who became members of the retirement system on or after
July 1, 2007, and have remained contributors to the retirement system for eight
(8) years, may receive credit for that retroactive service with the political
subdivision or instrumentality, provided that the employee and/or employer, as
provided under the terms of the modification of the joinder agreement in
allowing that coverage, pay into the retirement system the employer's and
employee's contributions on wages paid the member during the previous
employment, together with interest or actuarial cost as determined by the board
covering the period from the date the service was rendered until the payment
for the credit for the service was made.  Those wages shall be verified by the
Social Security Administration or employer payroll records.  Effective July 1,
1998, upon eligibility as noted above, a member may receive credit for that
retroactive service with the political subdivision or instrumentality provided:

(i)  The member
shall furnish proof satisfactory to the board of trustees of certification of
those services from the political subdivision or instrumentality where the
services were rendered or verification by the Social Security Administration;
and

(ii)  The member
shall pay to the retirement system on the date he or she is eligible for that
credit or at any time thereafter before the date of retirement the actuarial
cost for each year of that creditable service.  The provisions of this
subparagraph (ii) shall be subject to the limitations of Section 415 of the
Internal Revenue Code and regulations promulgated under Section 415.

Nothing contained in this
paragraph (k) shall be construed to limit the authority of the board to allow
the correction of reporting errors or omissions based on the payment of
employee and employer contributions plus applicable interest.  Payment for that
time shall be made beginning with the most recent service.  Upon the payment of
all or part of the required contributions, plus interest or the actuarial cost
as provided above, the member shall receive credit for the period of creditable
service for which full payment has been made to the retirement system.

(l)  Through June 30,
1998, any state service eligible for retroactive service credit, no part of
which has ever been reported, and requiring the payment of employee and
employer contributions plus interest, or, from and after July 1, 1998, any
state service eligible for retroactive service credit, no part of which has
ever been reported to the retirement system, and requiring the payment of the
actuarial cost for that creditable service, may, at the member's option, be
purchased in quarterly increments as provided above at the time that its
purchase is otherwise allowed.

(m)  All rights to
purchase retroactive service credit or repay a refund as provided in Section 25-11-101
et seq. shall terminate upon retirement.

II.
THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP

The following classes of
employees and officers shall not become members of this retirement system, any
other provisions of Articles 1 and 3 to the contrary notwithstanding:

(a)  Patient or inmate
help in state charitable, penal or correctional institutions;

(b)  Students of any
state educational institution employed by any agency of the state for
temporary, part-time or intermittent work;

(c)  Participants of
Comprehensive Employment and Training Act of 1973 (CETA) being Public Law 93-203,
who enroll on or after July l, 1979;

(d)  From and after
July 1, 2002, individuals who are employed by a governmental entity to perform
professional service on less than a full-time basis who do not meet the
criteria established in I(a)(ii) of this section.

III.
TERMINATION OF MEMBERSHIP

Membership in this system
shall cease by a member withdrawing his accumulated contributions, or by a
member withdrawing from active service with a retirement allowance, or by a
member's death.

SECTION 17.  Section
25-11-103, Mississippi Code of 1972, is amended as follows:

25-11-103.  (1)  The following
words and phrases as used in Articles 1 and 3, unless a different meaning is
plainly required by the context, have the following meanings:

(a)  "Accumulated
contributions" means the sum of all the amounts deducted from the
compensation of a member and credited to his or her individual account in the
annuity savings account, together with regular interest as provided in Section
25-11-123.

(b)  "Actuarial
cost" means the amount of funds presently required to provide future
benefits as determined by the board based on applicable tables and formulas
provided by the actuary.

(c)  "Actuarial
equivalent" means a benefit of equal value to the accumulated
contributions, annuity or benefit, as the case may be, when computed upon the
basis of such mortality tables as adopted by the board of trustees, and regular
interest.

(d)  "Actuarial
tables" mean such tables of mortality and rates of interest as adopted by
the board in accordance with the recommendation of the actuary.

(e)  "Agency"
means any governmental body employing persons in the state service.

(f)  "Average
compensation" means * * *, for persons who became members of the system before March 1, 2026,
the average of the four (4) highest years of earned compensation reported for
an employee in a fiscal or calendar year period, or combination thereof that do
not overlap, or the last forty-eight (48) consecutive months of earned
compensation reported for an employee.  The four (4) years need not be
successive or joined years of service. * * *  "Average compensation" means, for persons who
became members of the system on or after March 1, 2026, the average of the
eight (8) highest consecutive years of earned compensation reported for an
employee in a fiscal or calendar year period, or of the last ninety‑six
(96) consecutive months of earned compensation reported for an employee,
whichever is greater.

In computing the average
compensation for retirement, disability or survivor benefits, any amount
lawfully paid in a lump sum for personal leave or major medical leave shall be
included in the calculation to the extent that the amount does not exceed an
amount that is equal to thirty (30) days of earned compensation and to the
extent that it does not cause the employee's earned compensation to exceed the
maximum reportable amount specified in paragraph (k) of this subsection;
however, this thirty-day limitation shall not prevent the inclusion in the
calculation of leave earned under federal regulations before July 1, 1976, and
frozen as of that date as referred to in Section 25-3-99.  In computing the
average compensation, no amounts shall be used that are in excess of the amount
on which contributions were required and paid, and no nontaxable amounts paid
by the employer for health or life insurance premiums for the employee shall be
used.  If any member who is or has been granted any increase in annual salary
or compensation of more than eight percent (8%) retires within twenty-four (24)
months from the date that the increase becomes effective, then the board shall
exclude that part of the increase in salary or compensation that exceeds eight
percent (8%) in calculating that member's average compensation for retirement
purposes.  The board may enforce this provision by rule or regulation.
However, increases in compensation in excess of eight percent (8%) per year
granted within twenty-four (24) months of the date of retirement may be
included in the calculation of average compensation if satisfactory proof is
presented to the board showing that the increase in compensation was the result
of an actual change in the position held or services rendered, or that the
compensation increase was authorized by the State Personnel Board or was
increased as a result of statutory enactment, and the employer furnishes an
affidavit stating that the increase granted within the last twenty-four (24)
months was not contingent on a promise or agreement of the employee to retire.
Nothing in Section 25-3-31 shall affect the calculation of the average
compensation of any member for the purposes of this article.  The average
compensation of any member who retires before July 1, 1992, shall not exceed
the annual salary of the Governor.

(g)
"Beneficiary" means any person entitled to receive a retirement
allowance, an annuity or other benefit as provided by Articles 1 and 3.  The
term "beneficiary" may also include an organization, estate, trust or
entity; however, a beneficiary designated or entitled to receive monthly
payments under an optional settlement based on life contingency or under a
statutory monthly benefit may only be a natural person.  In the event of the
death before retirement of any member who became a member of the system before
July 1, 2007, and whose spouse and/or children are not entitled to a retirement
allowance on the basis that the member has less than four (4) years of membership service credit, or who became a
member of the system on or after July 1, 2007, and whose spouse and/or children
are not entitled to a retirement allowance on the basis that the member has
less than eight (8) years of membership
service credit, and/or has not been married for a minimum of one (1) year or
the spouse has waived his or her entitlement to a retirement allowance under
Section 25-11-114, the lawful spouse of a member at the time of the death of
the member shall be the beneficiary of the member unless the member has
designated another beneficiary after the date of marriage in writing, and filed
that writing in the office of the executive director of the board of trustees.
No designation or change of beneficiary shall be made in any other manner.

(h)  "Board"
means the board of trustees provided in Section 25-11-15 to administer the
retirement system created under this article.

(i)  "Creditable
service" means "prior service," "retroactive service"
and all lawfully credited unused leave not exceeding the accrual rates and
limitations provided in Section 25-3-91 et seq., as of the date of withdrawal
from service plus "membership service" and other service for which
credit is allowable as provided in Section 25-11-109.  Except to limit
creditable service reported to the system for the purpose of computing an
employee's retirement allowance or annuity or benefits provided in this
article, nothing in this paragraph shall limit or otherwise restrict the power
of the governing authority of a municipality or other political subdivision of
the state to adopt such vacation and sick leave policies as it deems necessary.

(j)  "Child"
means either a natural child of the member, a child that has been made a child
of the member by applicable court action before the death of the member, or a
child under the permanent care of the member at the time of the latter's death,
which permanent care status shall be determined by evidence satisfactory to the
board.  For purposes of this paragraph, a
natural child of the member is a child of the member that is conceived before
the death of the member.

(k)  "Earned
compensation" means the full amount earned during a fiscal year by an
employee not to exceed the employee compensation limit set pursuant to Section
401(a)(17) of the Internal Revenue Code for the calendar year in which the
fiscal year begins and proportionately for less than one (1) year of service.
Except as otherwise provided in this paragraph, the value of maintenance
furnished to an employee shall not be included in earned compensation.  Earned
compensation shall not include any amounts paid by the employer for health or
life insurance premiums for an employee.  Earned compensation shall be limited
to the regular periodic compensation paid, exclusive of litigation fees, bond
fees, performance-based incentive payments, and other similar extraordinary
nonrecurring payments.  In addition, any member in a covered position, as
defined by Public Employees' Retirement System laws and regulations, who is
also employed by another covered agency or political subdivision shall have the
earnings of that additional employment reported to the Public Employees'
Retirement System regardless of whether the additional employment is sufficient
in itself to be a covered position.  In addition, computation of earned
compensation shall be governed by the following:

(i)  In the case of
constables, the net earnings from their office after deduction of expenses
shall apply, except that in no case shall earned compensation be less than the
total direct payments made by the state or governmental subdivisions to the
official.

(ii)  In the case
of chancery or circuit clerks, the net earnings from their office after
deduction of expenses shall apply as expressed in Section 25-11-123(f)(4).

(iii)  In the case
of members of the State Legislature, all remuneration or amounts paid, except
mileage allowance, shall apply.

(iv)  The amount by
which an eligible employee's salary is reduced under a salary reduction
agreement authorized under Section 25-17-5 shall be included as earned
compensation under this paragraph, provided this inclusion does not conflict
with federal law, including federal regulations and federal administrative
interpretations under the federal law, pertaining to the Federal Insurance
Contributions Act or to Internal Revenue Code Section 125 cafeteria plans.

(v)  Compensation
in addition to an employee's base salary that is paid to the employee under the
vacation and sick leave policies of a municipality or other political
subdivision of the state that employs him or her that exceeds the maximums
authorized by Section 25-3-91 et seq. shall be excluded from the calculation of
earned compensation under this article.

(vi)  The maximum
salary applicable for retirement purposes before July 1, 1992, shall be the
salary of the Governor.

(vii)  Nothing in
Section 25-3-31 shall affect the determination of the earned compensation of
any member for the purposes of this article.

(viii)  The value
of maintenance furnished to an employee before July 1, 2013, for which the
proper amount of employer and employee contributions have been paid, shall be
included in earned compensation.  From and after July 1, 2013, the value of
maintenance furnished to an employee shall be reported as earned compensation
only if the proper amount of employer and employee contributions have been paid
on the maintenance and the employee was receiving maintenance and having
maintenance reported to the system as of June 30, 2013.  The value of
maintenance when not paid in money shall be fixed by the employing state
agency, and, in case of doubt, by the board of trustees as defined in Section
25-11-15.

(ix)  Except as
otherwise provided in this paragraph, the value of any in-kind benefits
provided by the employer shall not be included in earned compensation.  As used
in this subparagraph, "in-kind benefits" shall include, but not be
limited to, group life insurance premiums, health or dental insurance premiums,
nonpaid major medical and personal leave, employer contributions for social
security and retirement, tuition reimbursement or educational funding, day care
or transportation benefits.

(l)  "Employee"
means any person legally occupying a position in the state service, and shall
include the employees of the retirement system created under this article.

(m)
"Employer" means the State of Mississippi or any of its departments,
agencies or subdivisions from which any employee receives his or her
compensation.

(n)  "Executive
director" means the secretary to the board of trustees, as provided in
Section 25-11-15(9), and the administrator of the Public Employees' Retirement
System and all systems under the management of the board of trustees.  Wherever
the term "Executive Secretary of the Public Employees' Retirement
System" or "executive secretary" appears in this article or in
any other provision of law, it shall be construed to mean the Executive
Director of the Public Employees' Retirement System.

(o)  "Fiscal
year" means the period beginning on July 1 of any year and ending on June
30 of the next succeeding year.

(p)  "Medical
board" means the board of physicians or any governmental or nongovernmental
disability determination service designated by the board of trustees that is
qualified to make disability determinations as provided for in Section 25-11-119.

(q)  "Member"
means any person included in the membership of the system as provided in
Section 25-11-105.  For purposes of Sections 25-11-103, 25-11-105, 25-11-109,
25-11-111, 25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the
system withdrew from state service and received a refund of the amount of the
accumulated contributions to the credit of the member in the annuity savings
account before July 1, 2007, and the person reenters state service and becomes
a member of the system again on or after July 1, 2007, and repays all or part
of the amount received as a refund and interest in order to receive creditable
service for service rendered before July 1, 2007, the member shall be
considered to have become a member of the system on or after July 1, 2007,
subject to the eight-year membership service requirement, as applicable in
those sections.  For purposes of Sections 25-11-103,
25-11-111, 25-11-114 and 25-11-115, if a member of the system withdrew from
state service and received a refund of the amount of the accumulated
contributions to the credit of the member in the annuity savings account before
July 1, 2011, and the person reenters state service and becomes a member of the
system again on or after July 1, 2011, and repays all
or part of the amount received as a refund and interest in order to receive
creditable service for service rendered before July 1, 2011, the member
shall be considered to have become a member of the system on or after July 1,
2011.  If a member of the system withdrew from state
service and received a refund of the amount of the accumulated contributions to
the credit of the member in the annuity savings account before March
1, 2026, and the person reenters state service
and becomes a member of the system again on or after March 1, 2026, the member shall be considered to have become a
member of the system on or after March 1, 2026, and may not receive creditable service for service rendered before March
1, 2026.

(r)  "Membership
service" means service as an employee in a covered position rendered while
a contributing member of the retirement system.

(s)
"Position" means any office or any employment in the state service,
or two (2) or more of them, the duties of which call for services to be
rendered by one (1) person, including positions jointly employed by federal and
state agencies administering federal and state funds.  The employer shall
determine upon initial employment and during the course of employment of an
employee who does not meet the criteria for coverage in the Public Employees'
Retirement System based on the position held, whether the employee is or
becomes eligible for coverage in the Public Employees' Retirement System based
upon any other employment in a covered agency or political subdivision.  If or
when the employee meets the eligibility criteria for coverage in the other
position, then the employer must withhold contributions and report wages from
the noncovered position in accordance with the provisions for reporting of
earned compensation.  Failure to deduct and report those contributions shall
not relieve the employee or employer of liability thereof. The board shall
adopt such rules and regulations as necessary to implement and enforce this
provision.

(t)  "Prior
service" means:

(i)  For persons
who became members of the system before July 1, 2007, service rendered before
February 1, 1953, for which credit is allowable under Sections 25-11-105 and 25-11-109,
and which shall allow prior service for any person who is now or becomes a
member of the Public Employees' Retirement System and who does contribute to
the system for a minimum period of four (4) years.

(ii)  For
persons who became members of the system on or after July 1, 2007, service
rendered before February 1, 1953, for which credit is allowable under Sections
25-11-105 and 25-11-109, and which shall allow prior service for any person who
is now or becomes a member of the Public Employees' Retirement System and who
does contribute to the system for a minimum period of eight (8) years.

(u)  "Regular
interest" means interest compounded annually at such a rate as determined
by the board in accordance with Section 25-11-121.

(v)  "Retirement
allowance" means an annuity for life as provided in this article, payable
each year in twelve (12) equal monthly installments beginning as of the date
fixed by the board.  The retirement allowance shall be calculated in accordance
with Section 25-11-111.  However, any spouse who received a spouse retirement
benefit in accordance with Section 25-11-111(d) before March 31, 1971, and
those benefits were terminated because of eligibility for a social security
benefit, may again receive his or her spouse retirement benefit from and after
making application with the board of trustees to reinstate the spouse
retirement benefit.

(w)  "Retroactive
service" means service rendered after February 1, 1953, for which
credit is allowable under Section 25-11-105(b) and Section 25-11-105(k).

(x)  "System"
means the Public Employees' Retirement System of Mississippi established and
described in Section 25-11-101.

(y)  "State"
means the State of Mississippi or any political subdivision thereof or
instrumentality of the state.

(z)  "State
service" means all offices and positions of trust or employment in the
employ of the state, or any political subdivision or instrumentality of the
state, that elect to participate as provided by Section 25-11-105(f), including
the position of elected or fee officials of the counties and their deputies and
employees performing public services or any department, independent agency,
board or commission thereof, and also includes all offices and positions of
trust or employment in the employ of joint state and federal agencies
administering state and federal funds and service rendered by employees of the
public schools.  Effective July 1, 1973, all nonprofessional public school
employees, such as bus drivers, janitors, maids, maintenance workers and
cafeteria employees, shall have the option to become members in accordance with
Section 25-11-105(b), and shall be eligible to receive credit for services
before July 1, 1973, provided that the contributions and interest are paid by
the employee in accordance with that section; in addition, the county or
municipal separate school district may pay the employer contribution and pro
rata share of interest of the retroactive service from available funds.  "State
service" shall not include the President of the Mississippi Lottery
Corporation and personnel employed by the Mississippi Lottery Corporation.
From and after July 1, 1998, retroactive service credit shall be purchased at
the actuarial cost in accordance with Section 25-11-105(b).

(aa)  "Withdrawal
from service" or "termination from service" means complete
severance of employment in the state service of any member by resignation,
dismissal or discharge.

(bb)  The masculine
pronoun, wherever used, includes the feminine pronoun.

(2)  For purposes of this
article, the term "political subdivision" shall have the meaning
ascribed to such term in Section 25-11-5 and shall also include public charter
schools.

SECTION 18.  Section
25-11-111, Mississippi Code of 1972, is amended as follows:

25-11-111.  (a)  (1)  Any
member who became a member of the system before July 1, 2007, upon withdrawal
from service upon or after attainment of the age of sixty (60) years who has
completed at least four (4) years of membership service, or any member who
became a member of the system before July 1, 2011, upon withdrawal from service
regardless of age who has completed at least twenty-five (25) years of
creditable service, shall be entitled to receive a retirement allowance, which
shall begin on the first of the month following the date the member's
application for the allowance is received by the board, but in no event before
withdrawal from service.

(2)  Any member who
became a member of the system on or after July 1, 2007, but before March 1,
2026, upon withdrawal from service upon or after attainment of the age of sixty
(60) years who has completed at least eight (8) years of membership service, or
any member who became a member of the system on or after July 1, 2011, but
before March 1, 2026, upon withdrawal from service regardless of age who has
completed at least thirty (30) years of creditable service, shall be entitled
to receive a retirement allowance, which shall begin on the first of the month
following the date the member's application for the allowance is received by
the board, but in no event before withdrawal from service.

(3)  Any member who
became a member of the system on or after March 1, 2026, upon withdrawal from
service upon or after attainment of the age of sixty-two (62) years who has
completed at least eight (8) years of membership service, or upon withdrawal
from service regardless of age who has completed at least * * * thirty‑five (35) thirty (30)
years of creditable service, shall be entitled to receive a retirement
allowance, which shall begin on the first of the month following the date the
member's application for the allowance is received by the board, but in no
event before withdrawal from service.

(b)  (1)  Any member who
became a member of the system before July 1, 2007, whose withdrawal from
service occurs before attaining the age of sixty (60) years who has completed
four (4) or more years of membership service and has not received a refund of
his accumulated contributions, shall be entitled to receive a retirement
allowance, beginning upon his attaining the age of sixty (60) years, of the
amount earned and accrued at the date of withdrawal from service.  The
retirement allowance shall begin on the first of the month following the date
the member's application for the allowance is received by the board, but in no
event before withdrawal from service.

(2)  Any member who
became a member of the system on or after July 1, 2007, but before March 1,
2026, whose withdrawal from service occurs before attaining the age of sixty
(60) years who has completed eight (8) or more years of membership service and
has not received a refund of his accumulated contributions, shall be entitled
to receive a retirement allowance, beginning upon his attaining the age of
sixty (60) years, of the amount earned and accrued at the date of withdrawal
from service.  The retirement allowance shall begin on the first of the month
following the date the member's application for the allowance is received by
the board, but in no event before withdrawal from service.

(3)  Any member who
became a member of the system on or after March 1, 2026, whose withdrawal from
service occurs before attaining the age of sixty-two (62) years who has completed
eight (8) or more years of membership service and has not received a refund of
his accumulated contributions, shall be entitled to receive a retirement
allowance, beginning upon his attaining the age of sixty-two (62) years, of the
amount earned and accrued at the date of withdrawal from service.  The
retirement allowance shall begin on the first of the month following the date
the member's application for the allowance is received by the board, but in no
event before withdrawal from service.

(c)  Any member in service
who has qualified for retirement benefits may select any optional method of
settlement of retirement benefits by notifying the Executive Director of the
Board of Trustees of the Public Employees' Retirement System in writing, on a
form prescribed by the board, of the option he has selected and by naming the
beneficiary of the option and furnishing necessary proof of age.  The option,
once selected, may be changed at any time before actual retirement or death,
but upon the death or retirement of the member, the optional settlement shall
be placed in effect upon proper notification to the executive director.

(d)  Any member who became a
member of the system before July 1, 2011, shall be entitled to an annual
retirement allowance which shall consist of:

(1)  A member's
annuity, which shall be the actuarial equivalent of the accumulated
contributions of the member at the time of retirement computed according to the
actuarial table in use by the system; and

(2)  An employer's
annuity, which, together with the member's annuity provided above, shall be
equal to two percent (2%) of the average compensation for each year of service
up to and including twenty-five (25) years of creditable service, and two and
one-half percent (2-1/2%) of the average compensation for each year of service
exceeding twenty-five (25) years of creditable service.

(3)  Any retired member
or beneficiary thereof who was eligible to receive a retirement allowance
before July 1, 1991, and who is still receiving a retirement allowance on July
1, 1992, shall receive an increase in the annual retirement allowance of the
retired member equal to one-eighth of one percent (1/8 of 1%) of the average
compensation for each year of state service in excess of twenty-five (25) years
of membership service up to and including thirty (30) years.  The maximum
increase shall be five-eighths of one percent (5/8 of 1%).  In no case shall a
member who has been retired before July 1, 1987, receive less than Ten Dollars
($10.00) per month for each year of creditable service and proportionately for
each quarter year thereof.  Persons retired on or after July 1, 1987, shall
receive at least Ten Dollars ($10.00) per month for each year of service and
proportionately for each quarter year thereof reduced for the option selected.
However, such Ten Dollars ($10.00) minimum per month for each year of
creditable service shall not apply to a retirement allowance computed under
Section 25-11-114 based on a percentage of the member's average compensation.

(e)  Any member who became a
member of the system on or after July 1, 2011, but before March 1, 2026, shall
be entitled to an annual retirement allowance which shall consist of:

(1)  A member's
annuity, which shall be the actuarial equivalent of the accumulated
contributions of the member at the time of retirement computed according to the
actuarial table in use by the system; and

(2)  An employer's
annuity, which, together with the member's annuity provided above, shall be
equal to two percent (2%) of the average compensation for each year of service
up to and including thirty (30) years of creditable service, and two and one-half
percent (2-1/2%) of average compensation for each year of service exceeding
thirty (30) years of creditable service.

(f)  Any member who became a
member of the system on or after July 1, 2011, but before March 1, 2026, upon
withdrawal from service upon or after attaining the age of sixty (60) years who
has completed at least eight (8) years of membership service, or any such member
upon withdrawal from service regardless of age who has completed at least
thirty (30) years of creditable service, shall be entitled to receive a
retirement allowance computed in accordance with the formula set forth in
subsection (e) of this section.  In the case of the retirement of any member
who has attained age sixty (60) but who has not completed at least thirty (30)
years of creditable service, the retirement allowance shall be computed in
accordance with the formula set forth in subsection (e) of this section except
that the total annual retirement allowance shall be reduced by an actuarial
equivalent factor for each year of creditable service below thirty (30) years
or the number of years in age that the member is below age sixty-five (65), whichever
is less.

(g)  Any member who became a
member of the system on or after March 1, 2026, upon withdrawal from service
upon or after attainment of the age of sixty-five (65) years who has completed
at least eight (8) years of membership service, * * * or upon withdrawal from service at the age of sixty‑two
(62) who has completed at least thirty (30) years of creditable service,
or upon withdrawal from service regardless of age who has completed at least * * * thirty‑five (35) thirty (30)
years of creditable service, shall be entitled to an annual retirement
allowance which shall consist of a member's annuity, which annuity shall be
equal to one percent (1%) of the average compensation for each year of
creditable service.  In the case of the retirement of any member who has
attained the age of sixty-two (62) but has not completed at least thirty (30)
years of creditable service, the total annual retirement allowance specified in
this subsection (g) shall be reduced by an actuarial equivalent factor for each
year of creditable service below thirty (30) years or the number of years in
age that the member is below age sixty-five (65), whichever is less.

(h)  No member, except
members excluded by the Age Discrimination in Employment Act Amendments of 1986
(Public Law 99-592), under either Article 1 or Article 3 in state service shall
be required to retire because of age.

(i)  No payment on account
of any benefit granted under the provisions of this section shall become
effective or begin to accrue until January 1, 1953.

(j)  (1)  A retiree or
beneficiary may, on a form prescribed by and filed with the retirement system,
irrevocably waive all or a portion of any benefits from the retirement system
to which the retiree or beneficiary is entitled.  The waiver shall be binding
on the heirs and assigns of any retiree or beneficiary and the same must agree
to forever hold harmless the Public Employees' Retirement System of Mississippi
from any claim to the waived retirement benefits.

(2)  Any waiver under
this subsection shall apply only to the person executing the waiver.  A
beneficiary shall be entitled to benefits according to the option selected by
the member at the time of retirement.  However, a beneficiary may, at the
option of the beneficiary, execute a waiver of benefits under this subsection.

(3)  The retirement
system shall retain in the annuity reserve account amounts that are not used to
pay benefits because of a waiver executed under this subsection.

(4)  The board of
trustees may provide rules and regulations for the administration of waivers
under this subsection.

SECTION 19.  Section
25-11-127, Mississippi Code of 1972, is amended as follows:

25-11-127.  (1)  (a)  No
person who is being paid a retirement allowance or a pension after retirement
under this article shall be employed or paid for any service by the State of
Mississippi, including services as an employee, contract worker, contractual
employee or independent contractor, until the retired person has been retired
for not less than * * *
ninety (90) thirty (30) consecutive days from his or her
effective date of retirement.  After the person has been retired for not less
than * * * ninety (90)
thirty (30) consecutive days from his or her effective date of
retirement or such later date as established by the board, he or she may be
reemployed while being paid a retirement allowance under the terms and
conditions provided in this section or in Section 25-11-126.

(b)  No retiree of this
retirement system who is reemployed or is reelected to office after retirement
shall continue to draw retirement benefits while so reemployed, except as
provided in this section or in Section 25-11-126.

(c)  No person employed
or elected under the exceptions provided for in this section shall become a
member under Article 3 of the retirement system.

(2)  Except as otherwise
provided in Section 25-11-126, any person who has been retired under the
provisions of Article 3 and who is later reemployed in service covered by this
article shall cease to receive benefits under this article and shall again
become a contributing member of the retirement system.  When the person retires
again, if the reemployment exceeds six (6) months, the person shall have his or
her benefit recomputed, including service after again becoming a member,
provided that the total retirement allowance paid to the retired member in his
or her previous retirement shall be deducted from the member's retirement
reserve and taken into consideration in recalculating the retirement allowance
under a new option selected.

(3)  The board shall have
the right to prescribe rules and regulations for carrying out the provisions of
this section.

(4)  The provisions of this
section shall not be construed to prohibit any retiree, regardless of age, from
being employed and drawing a retirement allowance either:

(a)  For a period of
time not to exceed one-half (1/2) of the normal working days for the position
in any fiscal year during which the retiree will receive no more than one-half
(1/2) of the salary in effect for the position at the time of employment * * *, or;

(b)  For a period of
time in any fiscal year sufficient in length to permit a retiree to earn not in
excess of twenty-five percent (25%) of retiree's average compensation * * *.; or

(c)  For a period of
time as agreed to between the employee and the employer, at compensation in an
amount not to exceed eighty percent (80%) of the salary in effect for the
position at the time of employment.  Under this paragraph (c), a written
agreement must be executed after the conclusion of the thirty-day separation
period detailing the covered employment position, the full salary for the
position, and the percentage of salary the employee returning to work will
receive as compensation.  The employer and the employee must sign the agreement
and provide a copy to the system, and any subsequent amendment to the terms and
conditions of the agreement must be in writing, signed by both the employer and
the employee, and provided to the system within twenty (20) working days of the
execution of the amendment.  Any agreement under this paragraph (c) shall state
that the employer shall be responsible for the entire amount of required
contributions to the system, and that the employee shall not gain any
additional rights or benefits toward retirement.  The employer shall be
responsible for an amount equal to the sum of the current employer contribution
rate and the current employee contribution rate in effect in the year of the
return-to-work employment.  The employee shall not gain any additional rights
or benefits toward retirement from returning to work under this paragraph (c).
Employer contributions for employees returning to work under this paragraph (c)
are designed to offset any pension liability created by this paragraph (c).  No
retiree may return to work under this paragraph (c) as an elected official, a K-12
school superintendent, or an administrator at a university or a community or
junior college.  No retiree whose retirement allowance is subject to an actuarial
reduction, other than as a result of taking a partial lump-sum distribution or
any other optional benefit under Section 25-11-115, may return to work under
this paragraph (c).  This paragraph (c) shall stand repealed on July 1, 2036.

To determine the normal
working days for a position under paragraph (a) of this subsection, the
employer shall determine the required number of working days for the position
on a full-time basis and the equivalent number of hours representing the full-time
position.  The retiree then may work up to one-half (1/2) of the required
number of working days or up to one-half (1/2) of the equivalent number of
hours and receive up to one-half (1/2) of the salary for the position.  In the
case of employment with multiple employers, the limitation shall equal one-half
(1/2) of the number of days or hours for a single full-time position.

Notice shall be given in
writing to the executive director, setting forth the facts upon which the
employment is being made, and the notice shall be given within five (5) days from
the date of employment and also from the date of termination of the employment.

(5)  Except as otherwise
provided in subsection (6) of this section, the employer of any person who is
receiving a retirement allowance and who is employed in service covered by
subsection (4) of this section as an employee or a contractual employee shall
pay to the board the full amount of the employer's contribution on the amount
of compensation received by the retiree for his or her employment in accordance
with regulations prescribed by the board; however, in the case of a person
who is receiving a retirement allowance and who is employed in service covered
by subsection (4)(c) of this section, the employer shall also pay to the board
the full amount of the employee's contribution on the amount of compensation
received by the retiree for his or her employment.  The retiree shall not
receive any additional creditable service in the retirement system as a result
of the payment of the employer's contribution.  This subsection does not apply
to persons who are receiving a retirement allowance and who contract with an
employer to provide services as a true independent contractor, as defined by
the board through regulation.

(6)  (a)  A member may retire
and continue in municipal or county elective office provided that the member
has reached the age and/or service requirement that will not result in a
prohibited in-service distribution as defined by the Internal Revenue Service,
or a retiree may be elected to a municipal or county office, provided that the
person:

(i)  Files
annually, in writing, in the office of the employer and the office of the
executive director of the system before the person takes office or as soon as
possible after retirement, a waiver of all salary or compensation and elects to
receive in lieu of that salary or compensation a retirement allowance as
provided in this section, in which event no salary or compensation shall
thereafter be due or payable for those services; however, any such officer or
employee may receive, in addition to the retirement allowance, office expense
allowance, mileage or travel expense authorized by any statute of the State of
Mississippi; or

(ii)  Elects to
receive compensation for that elective office in an amount not to exceed twenty-five
percent (25%) of the retiree's average compensation.  In order to receive
compensation as allowed in this subparagraph, the retiree shall file annually,
in writing, in the office of the employer and the office of the executive
director of the system, an election to receive, in addition to a retirement
allowance, compensation as allowed in this subparagraph.

(b)  The municipality
or county in which the retired person holds elective office shall pay to the
board the amount of the employer's contributions on the full amount of the
regular compensation for the elective office that the retired person holds.

(c)  As used in this
subsection, the term "compensation" does not include office expense
allowance, mileage or travel expense authorized by a statute of the State of
Mississippi.

(7)  Any retired teacher who
returns to work in accordance with this section shall not be eligible to return
to work under the provisions of Section 25-11-126.

SECTION 20.  Section
25-11-126, Mississippi Code of 1972, is amended as follows:

25-11-126.  (1)  Any person
who has at least thirty (30) years of creditable service, who was employed as a
public school teacher at the time of his or her retirement, has been retired at
least * * * ninety (90)
thirty (30) days and is receiving a retirement allowance, and holds a
standard teaching license in Mississippi, may be employed as a teacher in a
public school district after retirement, and choose to continue receiving the
retirement allowance under this article during his or her employment as a
teacher after retirement in addition to receiving the salary authorized under
this section, along with the local contribution of the school district in which
the retiree is employed, at the discretion of the school district.  Any teacher
who has retired with at least twenty-five (25) years of creditable service as
of July 1, 2024, may also participate in this program if the teacher otherwise
qualifies under this section.

(2)  A retired teacher may
only be hired to teach in a school district designated by the Department of
Education as having critical shortages and/or critical subject-area shortages,
and shall hold the related standard teaching license and/or endorsements to
teach in the subject area.  The base compensation authorized for returning
retired teachers under Section 37-19-7 shall not be graduated annually in the
same manner as teachers who are employed by a school district under traditional
employment guidelines, but shall remain static for the entirety of his or her
eligible teaching period as a retired teacher.

(3)  (a)  A retired teacher
may be employed as a teacher, continue receiving his or her retirement
allowance and be a contributing member of the system without accruing
additional retirement benefits for a total of five (5) years, which may be
performed consecutively or intermittently.  This method is designed
specifically to provide funding for the system to actuarially offset any
pension liability created by this section.  Each school district hiring retired
teachers under the authority of this section, shall make a direct payment to
PERS, which shall serve as pension liability participation assessment.  The
pension liability participation assessment and the retired teacher's salary for
returning to work shall be determined as follows:

(i)  A school
district shall rely on the salary schedule in Section 37-19-7 in considering
the salary for a retired teacher; provided, however, that the school district
may allocate up to one hundred and twenty-five percent (125%) of the amount
provided under the salary schedule comparable to the teacher's years of service
and license type as salary and assessment under the program * * *.;

(ii)  After
determining the retired teacher's  compensation, the school district may pay no
more than fifty percent (50%) of the retired teacher's compensation as salary
to the retired teacher; and

(iii)  The
remaining fifty percent (50%) of the

retired teacher's compensation as
salary shall be paid by the school district to PERS as a pension liability
participation assessment.

(b)  If a retired
teacher, reemployed under the authority of this section, works in a school
district for any portion of a scholastic year less than a full contractual term
of traditional teachers, the time worked by the retired teacher shall
constitute one (1) of the five (5) years of post retirement teaching
eligibility.  A retired teacher, under the authority of this section, shall be
entitled to work in any applicable school district and shall not be obligated
to remain in any one (1) school district for the entirety of his or her post
retirement teaching eligibility, but shall be cumulative in nature so as not to
exceed five (5) years.  The salary authorized under Section 37-19-7 for retired
teachers shall be prorated for any period worked by the retired teacher that is
less than one (1) full academic year.

(c)  The State
Department of Education shall transfer to the system the Mississippi Adequate
Education Program funds of local school districts that on or after July 1,
2024, hire retired members as teachers under this section and other funds that
otherwise would have been payable to the districts if the districts had not
taken advantage of this section.  The crediting of assets and financing shall
follow the provisions of Section 25-11-123.

(d)  Local educational
agencies shall transfer to the system Mississippi Adequate Education Program
funds of local school districts that on or after July 1, 2024, hire retired
members as teachers under this section and other funds that otherwise would
have been payable to the districts if the districts had not taken advantage of
this section.  The crediting of assets and financing must follow the provisions
of Section 25-11-123.

(4)  Under the authority of
this section, school districts may employ retired teachers based on criteria
established by the Department of Education for critical teacher shortage areas
and critical subject-matter areas.  A school district that is not within a
critical teacher shortage area may employ teachers for critical subject-matter
areas.

(5)  A person may be hired
under this section subject to the following conditions:

(a)  The retired member
holds any teacher's professional license or certificate as may be required in
Section 37-3-2, and holds the related standard teaching license and/or
endorsements to teach in the applicable subject area;

(b)  The superintendent
of the employing school district certifies in writing to the State Department
of Education that the retired member has the requisite experience, training and
expertise for the position to be filled;

(c)  The superintendent
of the school district certifies or the principal of the school certifies that
there was no preexisting arrangement for the person to be hired;

(d)  The person had a
satisfactory performance review for the most recent period before retirement;
and

(e)  The person is
hired to teach in a critical subject-matter area or in a critical teacher
shortage area.

(6)  The State Superintendent
of Public Education shall report the persons who are employed under this
section to the Executive Director of the Public Employees' Retirement System.

(7)  The Department of Education
shall promulgate regulations that prescribe a salary schedule that reflects the
provisions of this section.  Each school district shall create a policy,
approved by the local school board, related to the hiring of retired teachers
and including, but not limited to, the hiring of full- and part-time retired
teacher employees under this section and Section 25-11-127.

(8)  Any retired teacher who
returns to work in accordance with this section shall not be eligible to return
to work under the provisions of Section 25-11-127.

SECTION 21.  Sections
17 and 18 of this act shall take effect and be in force from and after March 1,
2026, and the remaining sections of this act shall take effect and be in force
from and after July 1, 2026.