SB2439: PERS; create a fifth tier, and terminate SLRP, for employees hired on or after March 1, 2026.

Legislative Summary

An Act To Create A New Tier In The Mississippi Public Employees' Retirement System Of Mississippi For Employees Becoming Members Of The System On Or After March 1, 2026, Which Shall Consist Of A Defined Benefit Component And A Defined Contribution Component; To Specify That The Defined Contribution Component Shall Be A Plan Under Section 401(a) Of The Internal Revenue Code; To Provide That A Portion Of The Employee's Contributions Shall Be Deposited Into The Employee's Defined Contribution Account, And In Addition, The Employer May Elect To Contribute An Amount Up To The Maximum Pretax Amount Allowable Under Federal Law; To Provide That Members Shall Be Vested Immediately In The Defined Contribution Plan; To Amend Section 25-11-103, Mississippi Code Of 1972, To Revise The Definition Of "average Compensation" For Members In The New Tier To Mean The Average Of The Eight Highest Consecutive Years Of Earned Compensation, Or Of The Last 96 Consecutive Months Of Earned Compensation, Whichever Is Greater; To Amend The Definition Of "member" To Provide That, If A Person Withdraws From State Service And Receives A Refund Before March 1, 2026, And Reenters State Service 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 No Prior Service Shall Be Credited; To Amend Section 25-11-109, Mississippi Code Of 1972, To Limit The Circumstances For Which Creditable Service May Be Awarded For Employees Becoming Members Of The System On Or After March 1, 2026; To Amend Section 25-11-111, Mississippi Code Of 1972, To Provide That Members In The New Tier Who Have Completed At Least Eight Years Of Membership Service Shall Be Entitled To Receive A Retirement Allowance Upon Withdrawal From Service At The Age Of 62, And Members Who Have Completed At Least 35 Years Of Creditable Service Shall Be Entitled To Receive A Retirement Allowance Upon Withdrawal From Service Regardless Of Age; To Provide That Members In The New Tier Who Withdraw From Service Before Age 62 And Have Completed At Least Eight Years Of Membership Service And Have Not Received A Refund Of Their Contributions Shall Be Entitled To Receive A Retirement Allowance Upon Attaining The Age Of 62; To Provide That The Member's Annual Retirement Allowance From The Defined Benefit Plan Shall Consist Of A Member's Annuity, Which Shall Be Equal To 1% Of The Average Compensation For Each Year Of Creditable Service; To Provide That The Annual Retirement Allowance Of A Member Who Has Attained The Age Of 62 But Has Not Completed At Least 30 Years Of Creditable Service Shall Be Reduced By An Actuarial Equivalent Factor For Each Year Of Creditable Service Below 30 Years Or The Number Of Years In Age That The Member Is Below Age 65, Whichever Is Less; To Amend Section 25-11-112, Mississippi Code Of 1972, To Provide That There Shall Be No Annual Cost-of-living Adjustment For The Retirement Allowance Applicable To The New Tier, Although The Legislature May Provide An Additional Benefit For A Specific Year; To Amend Section 25-11-114, Mississippi Code Of 1972, To Conform To The Provisions Of This Act With Respect To Retirement Allowances For Death Before Retirement Or Death Or Disability In The Line Of Duty; To Amend Section 25-11-115, Mississippi Code Of 1972, To Provide That A Member In The New Tier Shall Not Be Eligible For A Partial Lump-sum Distribution; To Amend Section 25-11-117, Mississippi Code Of 1972, To Conform; To Amend Section 25-11-123, Mississippi Code Of 1972, To Provide That, For Members In The New Tier, The Employee's Contribution Shall Be 9% Of Earned Compensation, 4% Of Which Shall Be Deposited Into The Annuity Savings Account Applicable To The Defined Benefit Portion Of The Retirement Allowance, With The Remaining 5% To Be Deposited Into The Employee's Defined Contribution Account; To Provide That, For Members In The New Tier, The Employer's Contribution Shall Be Applied To The System's Accrued Liability Contribution Fund; To Amend Section 25-11-305, Mississippi Code Of 1972, To Provide That Membership In The Supplemental Legislative Retirement Plan Shall Apply Only To Those State Legislators And Presidents Of The Senate Who Were Elected Before March 1, 2026; To Provide That, If A Member Of The Supplemental Legislative Retirement Plan Withdraws From State Service And Receives A Refund Before March 1, 2026, And Reenters State Service On Or After March 1, 2026, The Member Shall Be Considered To Have Become A Member Of The Public Employees' Retirement System On Or After March 1, 2026, And No Prior Service Shall Be Credited; And For Related Purposes.