mississippi legislature regular session 2017billstatus.ls.state.ms.us/documents/2017/pdf/sb/... ·...

S. B. No. 2497 *SS02/R616.1* ~ OFFICIAL ~ G1/2

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To: Finance

MISSISSIPPI LEGISLATURE REGULAR SESSION 2017 By: Senator(s) Fillingane

SENATE BILL NO. 2497

AN ACT TO AMEND SECTIONS 25-11-105, 25-11-109 AND 25-13-21, 1 MISSISSIPPI CODE OF 1972, TO REMOVE LANGUAGE REGARDING MEMBERSHIP 2 IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM REGARDING A SPECIFIC 3 COMMUNITY HOSPITAL THAT NO LONGER EXISTS; TO SIMPLIFY THE LANGUAGE 4 REGARDING THE PURCHASE OF CERTAIN SERVICE CREDIT IN THE PUBLIC 5 EMPLOYEES' RETIREMENT SYSTEM AND HIGHWAY SAFETY PATROL RETIREMENT 6 SYSTEM BY REMOVING LANGUAGE THAT SPECIFIES THE INCREMENTS IN WHICH 7 THE PAYMENT FOR SUCH CREDIT MUST BE MADE; TO AMEND SECTIONS 8 25-11-115 AND 25-13-16, MISSISSIPPI CODE OF 1972, TO CLARIFY TO 9 WHOM SHALL BE PAID THE ACTUARIAL EQUIVALENT OF ANY REMAINING 10

PAYMENTS UNDER OPTION 4B OF THE PUBLIC EMPLOYEES' RETIREMENT 11 SYSTEM AND THE HIGHWAY SAFETY PATROL RETIREMENT SYSTEM; TO AMEND 12 SECTIONS 25-11-117 AND 25-11-311, MISSISSIPPI CODE OF 1972, TO 13 PROVIDE THAT IF A PERSON WHO HAS RECEIVED A REFUND FROM THE PUBLIC 14 EMPLOYEES' RETIREMENT SYSTEM OR THE SUPPLEMENTAL LEGISLATIVE 15 RETIREMENT SYSTEM REINTERS STATE SERVICE OR IS REELECTED ON OR 16 AFTER JULY 1, 2007, AND REPAYS ALL OR A PART OF THE AMOUNT 17 PREVIOUSLY RECEIVED AS A REFUND, THE AMOUNTS THAT ARE REPAID AND 18 THE CREDITABLE SERVICE RELATED THERETO SHALL NOT BE USED IN ANY 19 BENEFIT CALCULATION UNTIL THE MEMBER HAS REMAINED A CONTRIBUTOR TO 20 THE SYSTEM FOR 8 YEARS; TO AMEND SECTION 25-3-39, MISSISSIPPI CODE 21 OF 1972, TO EXEMPT THE EXECUTIVE DIRECTOR OF THE PUBLIC EMPLOYEES' 22 RETIREMENT SYSTEM AND THE CHIEF INVESTMENT OFFICER OF THE PUBLIC 23 EMPLOYEES' RETIREMENT SYSTEM FROM THE GOVERNOR'S SALARY CAP; AND 24

FOR RELATED PURPOSES. 25

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 26

SECTION 1. Section 25-11-105, Mississippi Code of 1972, is 27

amended as follows: 28

25-11-105. I. THOSE WHO ARE ELIGIBLE FOR MEMBERSHIP 29

S. B. No. 2497 *SS02/R616.1* ~ OFFICIAL ~

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The membership of this retirement system shall be composed as 30

follows: 31

(a) (i) All persons who become employees in the state 32

service after January 31, 1953, and whose wages are subject to 33

payroll taxes and are lawfully reported on IRS Form W-2, except 34

those specifically excluded, or as to whom election is provided in 35

Articles 1 and 3, shall become members of the retirement system as 36

a condition of their employment. 37

(ii) From and after July 1, 2002, any individual 38

who is employed by a governmental entity to perform professional 39

services shall become a member of the system if the individual is 40

paid regular periodic compensation for those services that is 41

subject to payroll taxes, is provided all other employee benefits 42

and meets the membership criteria established by the regulations 43

adopted by the board of trustees that apply to all other members 44

of the system; however, any active member employed in such a 45

position on July 1, 2002, will continue to be an active member for 46

as long as they are employed in any such position. 47

(b) All persons who become employees in the state 48

service after January 31, 1953, except those specifically excluded 49

or as to whom election is provided in Articles 1 and 3, unless 50

they file with the board before the lapse of sixty (60) days of 51

employment or sixty (60) days after the effective date of the 52

cited articles, whichever is later, on a form prescribed by the 53

board, a notice of election not to be covered by the membership of 54


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the retirement system and a duly executed waiver of all present 55

and prospective benefits that would otherwise inure to them on 56

account of their participation in the system, shall become members 57

of the retirement system; however, no credit for prior service 58

will be granted to members who became members of the system before 59

July 1, 2007, until they have contributed to Article 3 of the 60

retirement system for a minimum period of at least four (4) years, 61

or to members who became members of the system on or after July 1, 62

2007, until they have contributed to Article 3 of the retirement 63

system for a minimum period of at least eight (8) years. Those 64

members shall receive credit for services performed before January 65

1, 1953, in employment now covered by Article 3, but no credit 66

shall be granted for retroactive services between January 1, 1953, 67

and the date of their entry into the retirement system, unless the 68

employee pays into the retirement system both the employer's and 69

the employee's contributions on wages paid him during the period 70

from January 31, 1953, to the date of his becoming a contributing 71

member, together with interest at the rate determined by the board 72

of trustees. Members reentering after withdrawal from service 73

shall qualify for prior service under the provisions of Section 74

25-11-117. From and after July 1, 1998, upon eligibility as noted 75

above, the member may receive credit for such retroactive service 76

provided: 77


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(i) The member shall furnish proof satisfactory to 78

the board of trustees of certification of that service from the 79

covered employer where the services were performed; and 80

(ii) The member shall pay to the retirement system 81

on the date he or she is eligible for that credit or at any time 82

thereafter before the date of retirement the actuarial cost for 83

each year of that creditable service. The provisions of this 84

subparagraph (ii) shall be subject to the limitations of Section 85

415 of the Internal Revenue Code and regulations promulgated under 86

Section 415. 87

Nothing contained in this paragraph (b) shall be construed to 88

limit the authority of the board to allow the correction of 89

reporting errors or omissions based on the payment of the employee 90

and employer contributions plus applicable interest. 91

(c) All persons who become employees in the state 92

service after January 31, 1953, and who are eligible for 93

membership in any other retirement system shall become members of 94

this retirement system as a condition of their employment, unless 95

they elect at the time of their employment to become a member of 96

that other system. 97

(d) All persons who are employees in the state service 98

on January 31, 1953, and who are members of any nonfunded 99

retirement system operated by the State of Mississippi, or any of 100

its departments or agencies, shall become members of this system 101

with prior service credit unless, before February 1, 1953, they 102


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file a written notice with the board of trustees that they do not 103

elect to become members. 104

(e) All persons who are employees in the state service 105

on January 31, 1953, and who under existing laws are members of 106

any fund operated for the retirement of employees by the State of 107

Mississippi, or any of its departments or agencies, shall not be 108

entitled to membership in this retirement system unless, before 109

February 1, 1953, any such person indicates by a notice filed with 110

the board, on a form prescribed by the board, his individual 111

election and choice to participate in this system, but no such 112

person shall receive prior service credit unless he becomes a 113

member on or before February 1, 1953. 114

(f) Each political subdivision of the state and each 115

instrumentality of the state or a political subdivision, or both, 116

is authorized to submit, for approval by the board of trustees, a 117

plan for extending the benefits of this article to employees of 118

any such political subdivision or instrumentality. Each such plan 119

or any amendment to the plan for extending benefits thereof shall 120

be approved by the board of trustees if it finds that the plan, or 121

the plan as amended, is in conformity with such requirements as 122

are provided in Articles 1 and 3; however, upon approval of the 123

plan or any such plan previously approved by the board of 124

trustees, the approved plan shall not be subject to cancellation 125

or termination by the political subdivision or 126

instrumentality * * *. No such plan shall be approved unless: 127


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(i) It provides that all services that constitute 128

employment as defined in Section 25-11-5 and are performed in the 129

employ of the political subdivision or instrumentality, by any 130

employees thereof, shall be covered by the plan, with the 131

exception of municipal employees who are already covered by 132

existing retirement plans; however, those employees in this class 133

may elect to come under the provisions of this article; 134

(ii) It specifies the source or sources from which 135

the funds necessary to make the payments required by paragraph (d) 136

of Section 25-11-123 and of paragraph (f)(v)2 and 3 of this 137

section are expected to be derived and contains reasonable 138

assurance that those sources will be adequate for that purpose; 139

(iii) It provides for such methods of 140

administration of the plan by the political subdivision or 141

instrumentality as are found by the board of trustees to be 142

necessary for the proper and efficient administration thereof; 143

(iv) It provides that the political subdivision or 144

instrumentality will make such reports, in such form and 145

containing such information, as the board of trustees may from 146

time to time require; 147

(v) It authorizes the board of trustees to 148

terminate the plan in its entirety in the discretion of the board 149

if it finds that there has been a failure to comply substantially 150

with any provision contained in the plan, the termination to take 151

effect at the expiration of such notice and on such conditions as 152


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may be provided by regulations of the board and as may be 153

consistent with applicable federal law. 154

1. The board of trustees shall not finally 155

refuse to approve a plan submitted under paragraph (f), and shall 156

not terminate an approved plan without reasonable notice and 157

opportunity for hearing to each political subdivision or 158

instrumentality affected by the board's decision. The board's 159

decision in any such case shall be final, conclusive and binding 160

unless an appeal is taken by the political subdivision or 161

instrumentality aggrieved by the decision to the Circuit Court of 162

the First Judicial District of Hinds County, Mississippi, in 163

accordance with the provisions of law with respect to civil causes 164

by certiorari. 165

2. Each political subdivision or 166

instrumentality as to which a plan has been approved under this 167

section shall pay into the contribution fund, with respect to 168

wages (as defined in Section 25-11-5), at such time or times as 169

the board of trustees may by regulation prescribe, contributions 170

in the amounts and at the rates specified in the applicable 171

agreement entered into by the board. 172

3. Every political subdivision or 173

instrumentality required to make payments under paragraph (f)(v)2 174

of this section is authorized, in consideration of the employees' 175

retention in or entry upon employment after enactment of Articles 176

1 and 3, to impose upon its employees, as to services that are 177


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covered by an approved plan, a contribution with respect to wages 178

(as defined in Section 25-11-5) not exceeding the amount provided 179

in Section 25-11-123(d) if those services constituted employment 180

within the meaning of Articles 1 and 3, and to deduct the amount 181

of the contribution from the wages as and when paid. 182

Contributions so collected shall be paid into the contribution 183

fund as partial discharge of the liability of the political 184

subdivisions or instrumentalities under paragraph (f)(v)2 of this 185

section. Failure to deduct the contribution shall not relieve the 186

employee or employer of liability for the contribution. 187

4. Any state agency, school, political 188

subdivision, instrumentality or any employer that is required to 189

submit contribution payments or wage reports under any section of 190

this chapter shall be assessed interest on delinquent payments or 191

wage reports as determined by the board of trustees in accordance 192

with rules and regulations adopted by the board and delinquent 193

payments, assessed interest and any other amount certified by the 194

board as owed by an employer, may be recovered by action in a 195

court of competent jurisdiction against the reporting agency 196

liable therefor or may, upon due certification of delinquency and 197

at the request of the board of trustees, be deducted from any 198

other monies payable to the reporting agency by any department or 199

agency of the state. 200

5. Each political subdivision of the state 201

and each instrumentality of the state or a political subdivision 202


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or subdivisions that submit a plan for approval of the board, as 203

provided in this section, shall reimburse the board for coverage 204

into the expense account, its pro rata share of the total expense 205

of administering Articles 1 and 3 as provided by regulations of 206

the board. 207

(g) The board may, in its discretion, deny the right of 208

membership in this system to any class of employees whose 209

compensation is only partly paid by the state or who are occupying 210

positions on a part-time or intermittent basis. The board may, in 211

its discretion, make optional with employees in any such classes 212

their individual entrance into this system. 213

(h) An employee whose membership in this system is 214

contingent on his own election, and who elects not to become a 215

member, may thereafter apply for and be admitted to membership; 216

but no such employee shall receive prior service credit unless he 217

becomes a member before July 1, 1953, except as provided in 218

paragraph (b). 219

(i) If any member of this system changes his employment 220

to any agency of the state having an actuarially funded retirement 221

system, the board of trustees may authorize the transfer of the 222

member's creditable service and of the present value of the 223

member's employer's accumulation account and of the present value 224

of the member's accumulated membership contributions to that other 225

system, provided that the employee agrees to the transfer of his 226


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accumulated membership contributions and provided that the other 227

system is authorized to receive and agrees to make the transfer. 228

If any member of any other actuarially funded system 229

maintained by an agency of the state changes his employment to an 230

agency covered by this system, the board of trustees may authorize 231

the receipt of the transfer of the member's creditable service and 232

of the present value of the member's employer's accumulation 233

account and of the present value of the member's accumulated 234

membership contributions from the other system, provided that the 235

employee agrees to the transfer of his accumulated membership 236

contributions to this system and provided that the other system is 237

authorized and agrees to make the transfer. 238

(j) Wherever state employment is referred to in this 239

section, it includes joint employment by state and federal 240

agencies of all kinds. 241

(k) Employees of a political subdivision or 242

instrumentality who were employed by the political subdivision or 243

instrumentality before an agreement between the entity and the 244

Public Employees' Retirement System to extend the benefits of this 245

article to its employees, and which agreement provides for the 246

establishment of retroactive service credit, and who became 247

members of the retirement system before July 1, 2007, and have 248

remained contributors to the retirement system for four (4) years, 249

or who became members of the retirement system on or after July 1, 250

2007, and have remained contributors to the retirement system for 251


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eight (8) years, may receive credit for that retroactive service 252

with the political subdivision or instrumentality, provided that 253

the employee and/or employer, as provided under the terms of the 254

modification of the joinder agreement in allowing that coverage, 255

pay into the retirement system the employer's and employee's 256

contributions on wages paid the member during the previous 257

employment, together with interest or actuarial cost as determined 258

by the board covering the period from the date the service was 259

rendered until the payment for the credit for the service was 260

made. Those wages shall be verified by the Social Security 261

Administration or employer payroll records. Effective July 1, 262

1998, upon eligibility as noted above, a member may receive credit 263

for that retroactive service with the political subdivision or 264

instrumentality provided: 265

(i) The member shall furnish proof satisfactory to 266

the board of trustees of certification of those services from the 267

political subdivision or instrumentality where the services were 268

rendered or verification by the Social Security Administration; 269

and 270

(ii) The member shall pay to the retirement system 271

on the date he or she is eligible for that credit or at any time 272

thereafter before the date of retirement the actuarial cost for 273

each year of that creditable service. The provisions of this 274

subparagraph (ii) shall be subject to the limitations of Section 275


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415 of the Internal Revenue Code and regulations promulgated under 276

Section 415. 277

Nothing contained in this paragraph (k) shall be construed to 278

limit the authority of the board to allow the correction of 279

reporting errors or omissions based on the payment of employee and 280

employer contributions plus applicable interest. Payment for that 281

time shall be made * * * beginning with the most recent service. 282

Upon the payment of all or part of the required contributions, 283

plus interest or the actuarial cost as provided above, the member 284

shall receive credit for the period of creditable service for 285

which full payment has been made to the retirement system. 286

(l) Through June 30, 1998, any state service eligible 287

for retroactive service credit, no part of which has ever been 288

reported, and requiring the payment of employee and employer 289

contributions plus interest, or, from and after July 1, 1998, any 290

state service eligible for retroactive service credit, no part of 291

which has ever been reported to the retirement system, and 292

requiring the payment of the actuarial cost for that creditable 293

service, may, at the member's option, be purchased in quarterly 294

increments as provided above at the time that its purchase is 295

otherwise allowed. 296

(m) All rights to purchase retroactive service credit 297

or repay a refund as provided in Section 25-11-101 et seq. shall 298

terminate upon retirement. 299

II. THOSE WHO ARE NOT ELIGIBLE FOR MEMBERSHIP 300


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The following classes of employees and officers shall not 301

become members of this retirement system, any other provisions of 302

Articles 1 and 3 to the contrary notwithstanding: 303

(a) Patient or inmate help in state charitable, penal 304

or correctional institutions; 305

(b) Students of any state educational institution 306

employed by any agency of the state for temporary, part-time or 307

intermittent work; 308

(c) Participants of Comprehensive Employment and 309

Training Act of 1973 (CETA) being Public Law 93-203, who enroll on 310

or after July l, 1979; 311

(d) From and after July 1, 2002, individuals who are 312

employed by a governmental entity to perform professional service 313

on less than a full-time basis who do not meet the criteria 314

established in I(a)(ii) of this section. 315

III. TERMINATION OF MEMBERSHIP 316

Membership in this system shall cease by a member withdrawing 317

his accumulated contributions, or by a member withdrawing from 318

active service with a retirement allowance, or by a member's 319

death. 320



25-11-109. (1) Under such rules and regulations as the 323

board of trustees shall adopt, each person who becomes a member of 324

this retirement system, as provided in Section 25-11-105, on or 325


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before July 1, 1953, or who became a member of the system before 326

July 1, 2007, and contributes to the system for a minimum period 327

of four (4) years, or who became a member of the system on or 328

after July 1, 2007, and contributes to the system for a minimum 329

period of eight (8) years, shall receive credit for all state 330

service rendered before February 1, 1953. To receive that credit, 331

the member shall file a detailed statement of all services as an 332

employee rendered by him in the state service before February 1, 333

1953. For any member who joined the system after July 1, 1953, 334

and before July 1, 2007, any creditable service for which the 335

member is not required to make contributions shall not be credited 336

to the member until the member has contributed to the system for a 337

minimum period of at least four (4) years. For any member who 338

joined the system on or after July 1, 2007, any creditable service 339

for which the member is not required to make contributions shall 340

not be credited to the member until the member has contributed to 341

the system for a minimum period of at least eight (8) years. 342

(2) (a) (i) In the computation of creditable service for 343

service rendered before July 1, 2017, under the provisions of this 344

article, the total months of accumulative service during any 345

fiscal year shall be calculated in accordance with the schedule as 346

follows: ten (10) or more months of creditable service during any 347

fiscal year shall constitute a year of creditable service; seven 348

(7) months to nine (9) months inclusive, three-quarters (3/4) of a 349

year of creditable service; four (4) months to six (6) months 350


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inclusive, one-half (1/2) year of creditable service; one (1) 351

month to three (3) months inclusive, one-quarter (1/4) of a year 352

of creditable service. 353

(ii) In the computation of creditable service 354

rendered on or after July 1, 2017, under the provisions of this 355

article, service credit shall be awarded in monthly increments in 356

a manner prescribed by regulations of the board. 357

(b) In no case shall credit be allowed for any period 358

of absence without compensation except for disability while in 359

receipt of a disability retirement allowance, nor shall less than 360

fifteen (15) days of service in any month, or service less than 361

the equivalent of one-half (1/2) of the normal working load for 362

the position and less than one-half (1/2) of the normal 363

compensation for the position in any month, constitute a month of 364

creditable service, nor shall more than one (1) year of service be 365

creditable for all services rendered in any one (1) fiscal year; 366

however, for a school employee, substantial completion of the 367

legal school term when and where the service was rendered shall 368

constitute a year of service credit. Any state or local elected 369

official shall be deemed a full-time employee for the purpose of 370

creditable service. However, an appointed or elected official 371

compensated on a per diem basis only shall not be allowed 372

creditable service for terms of office. 373

(c) In the computation of any retirement allowance or 374

any annuity or benefits provided in this article, any fractional 375


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period of service of less than one (1) year shall be taken into 376

account and a proportionate amount of such retirement allowance, 377

annuity or benefit shall be granted for any such fractional period 378

of service. 379

(d) (i) In the computation of unused leave for 380

creditable service authorized in Section 25-11-103, the following 381

shall govern for members who retire before July 1, 2017: 382

twenty-one (21) days of unused leave shall constitute one (1) 383

month of creditable service and in no case shall credit be allowed 384

for any period of unused leave of less than fifteen (15) days. 385

The number of months of unused leave shall determine the number of 386

quarters or years of creditable service in accordance with the 387

above schedule for membership and prior service. 388

(ii) In the computation of unused leave for 389

creditable service authorized in Section 25-11-103, the following 390

shall govern for members who retire on or after July 1, 2017: 391

creditable service for unused leave shall be calculated in monthly 392

increments in which one (1) month of service credit shall be 393

awarded for each twenty-one (21) days of unused leave, except that 394

the first fifteen (15) to fifty-seven (57) days of leave shall 395

constitute three (3) months of service for those who became a 396

member of the system before July 1, 2017. 397

(iii) In order for the member to receive 398

creditable service for the number of days of unused leave under 399


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this paragraph, the system must receive certification from the 400

governing authority. 401

(e) For the purposes of this subsection, members of the 402

system who retire on or after July 1, 2010, shall receive credit 403

for one-half (1/2) day of leave for each full year of membership 404

service accrued after June 30, 2010. The amount of leave received 405

by a member under this paragraph shall be added to the lawfully 406

credited unused leave for which creditable service is provided 407

under Section 25-11-103(i). 408

(f) For the purpose of this subsection, for members of 409

the system who are elected officers and who retire on or after 410

July 1, 1987, the following shall govern: 411

(i) For service before July 1, 1984, the members 412

shall receive credit for leave (combined personal and major 413

medical) for service as an elected official before that date at 414

the rate of thirty (30) days per year. 415

(ii) For service on and after July 1, 1984, the 416

member shall receive credit for personal and major medical leave 417

beginning July 1, 1984, at the rates authorized in Sections 418

25-3-93 and 25-3-95, computed as a full-time employee. 419

(iii) If a member is employed in a covered 420

nonelected position and a covered elected position simultaneously, 421

that member may not receive service credit for accumulated unused 422

leave for both positions at retirement for the period during which 423

the member was dually employed. During the period during which 424


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the member is dually employed, the member shall only receive 425

credit for leave as provided for in this paragraph for an elected 426

official. 427

(3) Subject to the above restrictions and to such other 428

rules and regulations as the board may adopt, the board shall 429

verify, as soon as practicable after the filing of such statements 430

of service, the services therein claimed. 431

(4) Upon verification of the statement of prior service, the 432

board shall issue a prior service certificate certifying to each 433

member the length of prior service for which credit shall have 434

been allowed on the basis of his statement of service. So long as 435

membership continues, a prior service certificate shall be final 436

and conclusive for retirement purposes as to such service, 437

provided that any member may within five (5) years from the date 438

of issuance or modification of such certificate request the board 439

of trustees to modify or correct his prior service certificate. 440

Any modification or correction authorized shall only apply 441

prospectively. 442

When membership ceases, such prior service certificates shall 443

become void. Should the employee again become a member, he shall 444

enter the system as an employee not entitled to prior service 445

credit except as provided in Sections 25-11-105(I), 25-11-113 and 446

25-11-117. 447

(5) Creditable service at retirement, on which the 448

retirement allowance of a member shall be based, shall consist of 449


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the membership service rendered by him since he last became a 450

member, and also, if he has a prior service certificate that is in 451

full force and effect, the amount of the service certified on his 452

prior service certificate. 453

(6) Any member who served on active duty in the Armed Forces 454

of the United States, who served in the Commissioned Corps of the 455

United States Public Health Service before 1972 or who served in 456

maritime service during periods of hostility in World War II, 457

shall be entitled to creditable service at no cost for his service 458

on active duty in the Armed Forces, in the Commissioned Corps of 459

the United States Public Health Service before 1972 or in such 460

maritime service, provided he entered state service after his 461

discharge from the Armed Forces or entered state service after he 462

completed such maritime service. The maximum period for such 463

creditable service for all military service as defined in this 464

subsection (6) shall not exceed four (4) years unless positive 465

proof can be furnished by such person that he was retained in the 466

Armed Forces during World War II or in maritime service during 467

World War II by causes beyond his control and without opportunity 468

of discharge. The member shall furnish proof satisfactory to the 469

board of trustees of certification of military service or maritime 470

service records showing dates of entrance into active duty service 471

and the date of discharge. From and after July 1, 1993, no 472

creditable service shall be granted for any military service or 473

maritime service to a member who qualifies for a retirement 474


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allowance in another public retirement system administered by the 475

Board of Trustees of the Public Employees' Retirement System 476

based, in whole or in part, on such military or maritime service. 477

In no case shall the member receive creditable service if the 478

member received a dishonorable discharge from the Armed Forces of 479

the United States. 480

(7) (a) Any member of the Public Employees' Retirement 481

System whose membership service is interrupted as a result of 482

qualified military service within the meaning of Section 414(u)(5) 483

of the Internal Revenue Code, and who has received the maximum 484

service credit available under subsection (6) of this section, 485

shall receive creditable service for the period of qualified 486

military service that does not qualify as creditable service under 487

subsection (6) of this section upon reentering membership service 488

in an amount not to exceed five (5) years if: 489

(i) The member pays the contributions he would 490

have made to the retirement system if he had remained in 491

membership service for the period of qualified military service 492

based upon his salary at the time his membership service was 493

interrupted; 494

(ii) The member returns to membership service 495

within ninety (90) days of the end of his qualified military 496

service; and 497

(iii) The employer at the time the member's 498

service was interrupted and to which employment the member returns 499


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pays the contributions it would have made into the retirement 500

system for such period based on the member's salary at the time 501

the service was interrupted. 502

(b) The payments required to be made in paragraph 503

(a)(i) of this subsection may be made over a period beginning with 504

the date of return to membership service and not exceeding three 505

(3) times the member's qualified military service; however, in no 506

event shall such period exceed five (5) years. 507

(c) The member shall furnish proof satisfactory to the 508

board of trustees of certification of military service showing 509

dates of entrance into qualified service and the date of discharge 510

as well as proof that the member has returned to active employment 511

within the time specified. 512

(8) Any member of the Public Employees' Retirement System 513

who became a member of the system before July 1, 2007, and who has 514

at least four (4) years of membership service credit, or who 515

became a member of the system on or after July 1, 2007, and who 516

has at least eight (8) years of membership service credit, shall 517

be entitled to receive a maximum of five (5) years' creditable 518

service for service rendered in another state as a public employee 519

of such other state, or a political subdivision, public education 520

system or other governmental instrumentality thereof, or service 521

rendered as a teacher in American overseas dependent schools 522

conducted by the Armed Forces of the United States for children of 523


17/SS02/R616.1

PAGE 22 (tb\rc)

citizens of the United States residing in areas outside the 524

continental United States, provided that: 525

(a) The member shall furnish proof satisfactory to the 526

board of trustees of certification of such services from the 527

state, public education system, political subdivision or 528

retirement system of the state where the services were performed 529

or the governing entity of the American overseas dependent school 530

where the services were performed; and 531

(b) The member is not receiving or will not be entitled 532

to receive from the public retirement system of the other state or 533

from any other retirement plan, including optional retirement 534

plans, sponsored by the employer, a retirement allowance including 535

such services; and 536

(c) The member shall pay to the retirement system on 537

the date he or she is eligible for credit for such out-of-state 538

service or at any time thereafter before the date of retirement 539

the actuarial cost as determined by the actuary for each year of 540

out-of-state creditable service. The provisions of this 541

subsection are subject to the limitations of Section 415 of the 542

Internal Revenue Code and regulations promulgated under that 543

section. 544


who became a member of the system before July 1, 2007, and has at 546

least four (4) years of membership service credit, or who became a 547

member of the system on or after July 1, 2007, and has at least 548


17/SS02/R616.1

PAGE 23 (tb\rc)

eight (8) years of membership service credit, and who receives, or 549

has received, professional leave without compensation for 550

professional purposes directly related to the employment in state 551

service shall receive creditable service for the period of 552

professional leave without compensation provided: 553

(a) The professional leave is performed with a public 554

institution or public agency of this state, or another state or 555

federal agency; 556

(b) The employer approves the professional leave 557

showing the reason for granting the leave and makes a 558

determination that the professional leave will benefit the 559

employee and employer; 560

(c) Such professional leave shall not exceed two (2) 561

years during any ten-year period of state service; 562

(d) The employee shall serve the employer on a 563

full-time basis for a period of time equivalent to the 564

professional leave period granted immediately following the 565

termination of the leave period; 566

(e) The contributing member shall pay to the retirement 567

system the actuarial cost as determined by the actuary for each 568

year of professional leave. The provisions of this subsection are 569

subject to the regulations of the Internal Revenue Code 570

limitations; 571


17/SS02/R616.1

PAGE 24 (tb\rc)

(f) Such other rules and regulations consistent 572

herewith as the board may adopt and in case of question, the board 573

shall have final power to decide the questions. 574

Any actively contributing member participating in the School 575

Administrator Sabbatical Program established in Section 37-9-77 576

shall qualify for continued participation under this subsection 577

(9). 578


who became a member of the system before July 1, 2007, and has at 580

least four (4) years of credited membership service, or who became 581

a member of the system on or after July 1, 2007, and has at least 582

eight (8) years of credited membership service, shall be entitled 583

to receive a maximum of ten (10) years creditable service for: 584

(a) Any service rendered as an employee of any 585

political subdivision of this state, or any instrumentality 586

thereof, that does not participate in the Public Employees' 587

Retirement System; or 588

(b) Any service rendered as an employee of any 589


thereof, that participates in the Public Employees' Retirement 591

System but did not elect retroactive coverage; or 592

(c) Any service rendered as an employee of any 593


thereof, for which coverage of the employee's position was or is 595

excluded; provided that the member pays into the retirement system 596


17/SS02/R616.1

PAGE 25 (tb\rc)

the actuarial cost as determined by the actuary for each year, or 597

portion thereof, of such service. * * * After a member has made 598

full payment to the retirement system for all or any part of such 599

service, the member shall receive creditable service for the 600

period of such service for which full payment has been made to the 601

retirement system. 602



25-13-21. In the event a highway patrolman ceases to work 605

for the Highway Safety Patrol for any reason other than 606

occupational disease contracted or for any accident sustained by 607

the patrolman by reason of his service or discharge of his duty in 608

the Highway Patrol, and if the highway patrolman is not eligible 609

for retirement either for service or disability, he shall be 610

refunded the amount of his total contribution under the provisions 611

of this chapter, including any credit transferred to his account 612

in this system from any other system, at his request; and should 613

he die before retirement, his total contribution is to be refunded 614

to any beneficiary he may name. If there is no surviving 615

designated beneficiary, the contributions to the credit of the 616

deceased member shall be refunded pursuant to Section 617

25-13-21.1(1). 618

Pursuant to the Unemployment Compensation Amendments of 1992 619

(Public Law 102-318 (UCA)), a member or the spouse of a member who 620

is an eligible beneficiary entitled to a refund under this section 621


17/SS02/R616.1

PAGE 26 (tb\rc)

may elect, on a form prescribed by the board under rules and 622

regulations established by the board, to have an eligible rollover 623

distribution of accumulated contributions payable under this 624

section paid directly to an eligible retirement plan, as defined 625

under applicable federal law, or an individual retirement account. 626

If the member or the spouse of a member who is an eligible 627

beneficiary makes that election and specifies the eligible 628

retirement plan or individual retirement account to which the 629

distribution is to be paid, the distribution will be made in the 630

form of a direct trustee-to-trustee transfer to the specified 631

eligible retirement plan. A nonspouse beneficiary may elect to 632

have an eligible rollover distribution paid in the form of a 633

direct trustee-to-trustee transfer to an individual retirement 634

account established to receive the distribution on behalf of the 635

nonspouse beneficiary. Flexible rollovers under this subsection 636

shall not be considered assignments under Section 25-13-31. 637

If any highway patrolman who receives a refund reenters the 638

service of the Highway Safety Patrol and again becomes a member of 639

the system, he may repay all amounts previously received by him as 640

a refund, together with regular interest covering the period from 641

the date of refund to the date of repayment; however, the amounts 642

that are repaid by the member and the creditable service related 643

thereto shall not be used in any benefit calculation or 644

determination until the member has remained a contributor to the 645

system for a period of at least five (5) years after the member's 646


17/SS02/R616.1

PAGE 27 (tb\rc)

reentry into state service. Repayment for such time shall be 647

made * * * beginning with the most recent service for which refund 648

has been made. Upon the repayment of all or part of the refund 649

and interest, the highway patrolman shall again receive credit for 650

the period of creditable service for which full repayment has been 651

made to the system. 652



25-11-115. (1) Upon application for superannuation or 655

disability retirement, any member may elect to receive his or her 656

benefit in a retirement allowance payable throughout life with no 657

further payments to anyone at the member's death, except that if 658

the member's total retirement payments under this article do not 659

equal the member's total contributions under this article, the 660

named beneficiary shall receive the difference in cash at the 661

member's death. Or the member may elect upon retirement, or upon 662

becoming eligible for retirement, to receive the actuarial 663

equivalent subject to the provisions of subsection (3) of this 664

section of his or her retirement allowance in a reduced retirement 665

allowance payable throughout life with the provision that: 666

Option 1. If the retired member dies before he or she has 667

received in annuity payment the value of the member's annuity 668

savings account as it was at the time of the member's retirement, 669

the balance shall be paid to the legal representative or to such 670


17/SS02/R616.1

PAGE 28 (tb\rc)

person as the member has nominated by written designation duly 671

acknowledged and filed with the board; 672

Option 2. Upon the retired member's death, his or her 673

reduced retirement allowance shall be continued throughout the 674

life of, and paid to, such person as the member has nominated by 675

written designation duly acknowledged and filed with the board of 676

trustees at the time of his or her retirement; 677

Option 3. Upon the retired member's death, one-half (1/2) of 678

his or her reduced retirement allowance shall be continued 679

throughout the life of, and paid to, such person as the member has 680

nominated by written designation duly acknowledged and filed with 681

the board of trustees at the time of his or her retirement, and 682

the other one-half (1/2) of his or her reduced retirement 683

allowance to some other designated beneficiary; 684

Option 4. Upon the retired member's death, three-fourths 685

(3/4) of his or her reduced retirement allowance, or such other 686

specified amount, shall be continued throughout the life of, and 687

paid to, such person as the member has nominated by written 688

designation duly acknowledged and filed with the board of trustees 689

at the time of his or her retirement; 690

Option 4-A. Upon the retired member's death, one-half (1/2) 691

of his or her reduced retirement allowance, or such other 692

specified amount, shall be continued throughout the life of, and 693

paid to, such person as the member has nominated by written 694


17/SS02/R616.1

PAGE 29 (tb\rc)


at the time of his or her retirement; 696

Option 4-B. A reduced retirement allowance shall be 697

continued throughout the life of the retirant, but with the 698

further guarantee of payments to the named beneficiary or 699

beneficiaries for a specified number of years certain. If the 700

retired member or the last designated beneficiary both die before 701

receiving all guaranteed payments due, the actuarial equivalent of 702

the remaining payments shall be paid * * * to the successors of 703

the retired member pursuant to Section 25-11-117.1(1); 704

Option 6. Any member who became a member of the system 705

before July 1, 2007, and who has at least twenty-eight (28) years 706

of creditable service at the time of retirement or who is at least 707

sixty-three (63) years of age and eligible to retire, may select 708

the maximum retirement benefit or an optional benefit as provided 709

in this subsection together with a partial lump-sum distribution. 710

Any member who became a member of the system on or after July 1, 711

2007, but before July 1, 2011, and who has at least twenty-eight 712

(28) years of creditable service at the time of retirement may 713

select the maximum retirement benefit or any optional benefit as 714

provided in this subsection together with a partial lump-sum 715

distribution. Any member who became a member of the system on or 716

after July 1, 2011, and who has at least thirty-three (33) years 717

of creditable service at the time of retirement may select the 718

maximum retirement benefit or any optional benefit as provided in 719


17/SS02/R616.1

PAGE 30 (tb\rc)

this subsection together with a partial lump-sum distribution. 720

The amount of the lump-sum distribution under this option shall be 721

equal to the maximum monthly benefit multiplied by twelve (12), 722

twenty-four (24) or thirty-six (36) as selected by the member. 723

The maximum retirement benefit shall be actuarially reduced to 724

reflect the amount of the lump-sum distribution selected and 725

further reduced for any other optional benefit selected. The 726

annuity and lump-sum distribution shall be computed to result in 727

no actuarial loss to the system. The lump-sum distribution shall 728

be made as a single payment payable at the time the first monthly 729

annuity payment is paid to the retiree. The amount of the 730

lump-sum distribution shall be deducted from the member's annuity 731

savings account in computing what contributions remain at the 732

death of the retiree and/or a beneficiary. The lump-sum 733

distribution option may be elected only once by a member upon 734

initial retirement, and may not be elected by a retiree, by 735

members applying for a disability retirement annuity, or by 736

survivors. 737

(2) No change in the option selected shall be permitted 738

after the member's death or after the member has received his or 739

her first retirement check except as provided in subsections (3) 740

and (4) of this section and in Section 25-11-127. Members who are 741

pursuing a disability retirement allowance and simultaneously or 742

later elect to begin to receive a service retirement allowance 743

while continuing to pursue a disability retirement allowance, 744


17/SS02/R616.1

PAGE 31 (tb\rc)

shall not be eligible to select Option 6 and that option may not 745

be selected at a later time if the application for a disability 746

retirement allowance is voided or denied. However, any retired 747

member who is receiving a retirement allowance under Option 2 or 748

Option 4-A upon July 1, 1992, and whose designated beneficiary 749

predeceased him or her or whose marriage to a spouse who is his or 750

her designated beneficiary is terminated by divorce or other 751

dissolution, upon written notification to the retirement system of 752

the death of the designated beneficiary or of the termination of 753

the retired member's marriage to the designated beneficiary, the 754

retirement allowance payable to the member after receipt of that 755

notification by the retirement system shall be equal to the 756

retirement allowance that would have been payable if the member 757

had not elected the option. In addition, any retired member who 758

is receiving the maximum retirement allowance for life, a 759

retirement allowance under Option 1 or who is receiving a 760

retirement allowance under Option 2 or Option 4-A on July 1, 1992, 761

may elect to provide survivor benefits under Option 2 or Option 762

4-A to a spouse who was not previously the member's beneficiary 763

and whom the member married before July 1, 1992. 764

(3) Any retired member who is receiving a reduced retirement 765

allowance under Option 2, Option 4 or Option 4-A whose designated 766

beneficiary predeceases him or her, or whose marriage to a spouse 767

who is his or her designated beneficiary is terminated by divorce 768

or other dissolution, may elect to cancel the reduced retirement 769


17/SS02/R616.1

PAGE 32 (tb\rc)

allowance and receive the maximum retirement allowance for life in 770

an amount equal to the amount that would have been payable if the 771

member had not elected Option 2, Option 4 or Option 4-A. That 772

election must be made in writing to the office of the executive 773

director of the system on a form prescribed by the board. Any 774

such election shall be effective the first of the month following 775

the date the election is received by the system; however, the 776

election may be applied retroactively for not more than three (3) 777

months but no earlier than the first of the month following the 778

date of the death of the beneficiary. 779

(4) Any retired member who is receiving the maximum 780

retirement allowance for life, or a retirement allowance under 781

Option 1, and who marries after his or her retirement may elect to 782

cancel the maximum retirement allowance and receive a reduced 783

retirement allowance under Option 2, Option 4 or Option 4-A to 784

provide continuing lifetime benefits to his or her spouse. That 785

election must be made in writing to the office of the executive 786

director of the system on a form prescribed by the board not 787

earlier than the date of the marriage and not later than one (1) 788

year from the date of the marriage. Any such election shall be 789

effective the first of the month following the date the election 790

is received by the system. 791

(5) (a) Except as otherwise provided in this subsection, if 792

the election of an optional benefit is made after the member has 793

attained the age of sixty-five (65) years, the actuarial 794


17/SS02/R616.1

PAGE 33 (tb\rc)

equivalent factor shall be used to compute the reduced retirement 795

allowance as if the election had been made on his or her 796

sixty-fifth birthday; however, from and after January 1, 2003, if 797

there is an election of Option 6 after the member has attained the 798

age of sixty-five (65) years, the actuarial equivalent factor 799

based on the retiree's age at the time of retirement shall be used 800

to compute the reduced maximum monthly retirement allowance. 801

However, if a retiree marries or remarries after retirement and 802

elects either Option 2 or Option 4-A as provided in subsection (2) 803

or (4) of this section, the actuarial equivalent factor used to 804

compute the reduced retirement allowance shall be the factor for 805

the age of the retiree and his or her beneficiary at the time such 806

election for recalculation of benefits is made. 807

(b) For members who retire on or after July 1, 2012, 808

the actuarial equivalent factor used to compute the reduced 809

retirement allowance at retirement or upon any subsequent 810

recalculation of the benefit shall be the factor for the age of 811

the retiree and his or her beneficiary at the time of retirement 812

or at the time an election for recalculation of benefits is made. 813

(6) Notwithstanding any provision of Section 25-11-1 et 814

seq., no payments may be made for a retirement allowance on a 815

monthly basis for a period of time in excess of that allowed by 816

federal law. 817

(7) If a retirant and his or her eligible beneficiary, if 818

any, both die before they have received in annuity payments a 819


17/SS02/R616.1

PAGE 34 (tb\rc)

total amount equal to the accumulated contributions standing to 820

the retirant's credit in the annuity savings account at the time 821

of his or her retirement, the difference between the accumulated 822

contributions and the total amount of annuities received by them 823

shall be paid to such persons as the retirant has nominated by 824

written designation duly executed and filed in the office of the 825

executive director. If no designated person survives the retirant 826

and his or her beneficiary, the difference, if any, shall be paid 827

under Section 25-11-117.1(1). 828

(8) Any retired member who retired on Option 2(5) or 4-A(5) 829

before July 1, 1992, who is still receiving a retirement allowance 830

on July 1, 1994, shall receive an increase in the annual 831

retirement allowance effective July 1, 1994, equal to the amount 832

they would have received under Option 2 or Option 4-A without a 833

reduction for Option 5 based on the ages at retirement of the 834

retiree and beneficiary and option factors in effect on July 1, 835

1992. That increase shall be prospective only. 836



25-13-16. (1) Upon application for superannuation or 839

disability retirement, any member who retires after July 1, 1990, 840

may elect to receive his benefit pursuant to the provisions of 841

Sections 25-13-11 and 25-13-13. Or he may elect upon retirement, 842

or upon becoming eligible for retirement, to receive the actuarial 843

equivalent, subject to the provisions of subsection (3) of this 844


17/SS02/R616.1

PAGE 35 (tb\rc)

section, of his retirement allowance in a reduced retirement 845

allowance payable throughout life with the provision that: 846

Option 1. If he dies before he has received in annuity 847

payment the value of the member's annuity savings account as it 848

was at the time of his retirement, the balance shall be paid to 849

his legal representative or to such person as he shall nominate by 850

written designation duly acknowledged and filed with the board; or 851

Option 2. Upon his death, his reduced retirement allowance 852

shall be continued throughout the life of, and paid to, such 853

person as he has nominated by written designation duly 854

acknowledged and filed with the board of trustees at the time of 855

his retirement; 856

Option 3. Upon his death, one-half (1/2) of his reduced 857

retirement allowance shall be continued throughout the life of, 858

and paid to, such person as he shall have nominated by written 859


at the time of his retirement, and the other one-half (1/2) of his 861

reduced retirement allowance to some other designated beneficiary; 862

Option 4. Upon his death, three-fourths (3/4) of his reduced 863

retirement allowance, or such other specified amount, shall be 864

continued throughout the life of, and paid to, such person he 865

shall have nominated by written designation duly acknowledged and 866

filed with the board of trustees at the time of his retirement; 867

Option 4-A. Upon his death, one-half (1/2) of his reduced 868

retirement allowance, or such other specified amount, shall be 869


17/SS02/R616.1

PAGE 36 (tb\rc)

continued throughout the life of, and paid to, such person as he 870

shall have nominated by written designation duly acknowledged and 871

filed with the board of trustees at the time of his retirement; or 872

Option 4-B. A reduced retirement allowance shall be 873

continued throughout the life of the retirant, but with the 874

further guarantee of payments to the named beneficiary or 875

beneficiaries for a specified number of years certain. If the 876

retired member or the last designated beneficiary both die prior 877

to receiving all guaranteed payments due, the actuarial equivalent 878

of the remaining payments shall be paid to the successors of the 879

retired member pursuant to Section 25-13-21.1(1); 880

Option 4-C. Such retirement allowance otherwise payable may 881

be converted into a retirement allowance of equivalent actuarial 882

value in such an amount that, with the member's benefit under 883

Title II of the federal Social Security Act, the member will 884

receive, so far as possible, approximately the same amount 885

annually before and after the earliest age at which the member 886

becomes eligible to receive a social security benefit. This 887

option shall not be available to retirees whose retirement is 888

effective on or after July 1, 2004; 889

Option 6. Any member who is eligible to retire with an 890

unreduced benefit may select the maximum retirement benefit or an 891

optional benefit as provided in this subsection together with a 892

partial lump-sum distribution. The amount of the lump-sum 893

distribution under this option shall be equal to the maximum 894


17/SS02/R616.1

PAGE 37 (tb\rc)

monthly benefit multiplied by twelve (12), twenty-four (24) or 895

thirty-six (36) as selected by the member. The maximum retirement 896

benefit shall be actuarially reduced to reflect the amount of the 897

lump-sum distribution selected and further reduced for any other 898

optional benefit selected. The annuity and lump-sum distribution 899

shall be computed to result in no actuarial loss to the system. 900

The lump-sum distribution shall be made as a single payment 901

payable at the time the first monthly annuity payment is paid to 902

the retiree. The amount of the lump-sum distribution shall be 903

deducted from the member's annuity savings account in computing 904

what contributions remain at the death of the retiree and/or a 905

beneficiary. The lump-sum distribution option may be elected only 906

once by a member upon initial retirement, and may not be elected 907

by a retiree, by members applying for a disability retirement 908

annuity, by survivors or by a member selecting Option 4-C. 909

(2) No change in the option selected shall be permitted 910

after the member's death or after the member has received his 911

first retirement check, except as provided in subsections (3) and 912

(4) of this section. However, any retired member who is receiving 913

a retirement allowance under Option 2 or Option 4-A upon July 1, 914

1999, and whose designated beneficiary predeceased him or whose 915

marriage to a spouse who is his designated beneficiary is 916

terminated by divorce or other dissolution, upon written 917

notification to the retirement system of the death of the 918

designated beneficiary or of the termination of his marriage to 919


17/SS02/R616.1

PAGE 38 (tb\rc)

his designated beneficiary, the retirement allowance payable to 920

the member after receipt of such notification by the retirement 921

system shall be equal to the retirement allowance that would have 922

been payable if the member had not elected the option. In 923

addition, any retired member who is receiving the maximum 924

retirement allowance for life, a retirement allowance under Option 925

1 or who is receiving a retirement allowance under Option 2 or 926

Option 4-A on July 1, 1999, may elect to provide survivor benefits 927

under Option 2 or Option 4-A to a spouse who was not previously 928

the member's beneficiary and who the member married before July 1, 929

1999. Should a member retired on disability be returned to active 930

service, the option previously selected shall be null and void. 931

Upon subsequent retirement a new option may be selected. 932

(3) Any retired member who is receiving a reduced retirement 933

allowance under Option 2, Option 4 or Option 4-A whose designated 934

beneficiary predeceases him, or whose marriage to a spouse who is 935

his designated beneficiary is terminated by divorce or other 936

dissolution, may elect to cancel his reduced retirement allowance 937

and receive the maximum retirement allowance for life in an amount 938

equal to the amount that would have been payable if the member had 939

not elected Option 2, Option 4 or Option 4-A. Such election must 940

be made in writing to the office of the executive director of the 941

system on a form prescribed by the board. Any such election shall 942

be effective the first of the month following the date the 943

election is received by the system; however, the election may be 944


17/SS02/R616.1

PAGE 39 (tb\rc)

applied retroactively for not more than three (3) months but no 945

earlier than the first of the month following the date of the 946

death of the beneficiary. 947

(4) Any retired member who is receiving the maximum 948

retirement allowance for life, or a retirement allowance under 949

Option 1, and who marries after his retirement may elect to cancel 950

his maximum retirement allowance and receive a reduced retirement 951

allowance under Option 2, Option 4 or Option 4-A to provide 952

continuing lifetime benefits to his spouse. Such election must be 953

made in writing to the office of the executive director of the 954

system on a form prescribed by the board not earlier than the date 955

of the marriage. Any such election shall be effective the first 956

of the month following the date the election is received by the 957

system. However, if a retiree marries or remarries after 958

retirement and elects either Option 2, Option 4 or Option 4-A as 959

provided in subsection (2) or (4) of this section, the actuarial 960

equivalent factor used to compute the reduced retirement allowance 961

shall be the factor for the age of the retiree and his or her 962

beneficiary at the time such election for recalculation of 963

benefits is made. 964

(5) Any member in service who has qualified for retirement 965

benefits may select any optional method of settlement of 966

retirement benefits by notifying the Executive Director of the 967

Board of Trustees of the Public Employees' Retirement System in 968

writing, on a form prescribed by the board, of the option he has 969


17/SS02/R616.1

PAGE 40 (tb\rc)

selected and by naming the beneficiary of such option and 970

furnishing necessary proof of age. Such option, once selected, 971

may be changed at any time prior to actual retirement or death, 972

but upon the death or retirement of the member, the optional 973

settlement shall be placed in effect upon proper notification to 974

the executive director. 975

(6) Notwithstanding any provision of Section 25-13-1 et 976

seq., no payments may be made for a retirement allowance on a 977

monthly basis for a period of time in excess of that allowed by 978

federal law. 979

(7) If a retirant and his eligible beneficiary, if any, both 980

die before they have received in annuity payments a total amount 981

equal to the accumulated contributions standing to the retirant's 982

credit in the annuity savings account at the time of his 983

retirement, the difference between the accumulated contributions 984

and the total amount of annuities received by them shall be paid 985

to such persons as the retirant has nominated by written 986

designation duly executed and filed in the office of the executive 987

director. If no designated person survives the retirant and his 988

beneficiary, the difference, if any, shall be paid pursuant to 989

Section 25-13-21.1(1). 990

(8) Any retired member who retired on Option 2(5) or 4-A(5) 991

before July 1, 1999, who is still receiving a retirement allowance 992

as of July 1, 1999, shall receive an increase in the annual 993

retirement allowance effective July 1, 1999, equal to the amount 994


17/SS02/R616.1

PAGE 41 (tb\rc)

they would have received under Option 2 or Option 4-A without a 995

reduction for Option 5 based on the ages at retirement of the 996

retiree and beneficiary and option factors in effect on July 1, 997

1999. Such increase shall be prospective only. 998

(9) For purposes of this section: 999

(a) "Beneficiary" means any person designated to 1000

receive a retirement allowance, an annuity or other benefit as 1001

provided by this chapter. Such designation shall be in writing 1002

filed in the Office of the Executive Director of the Board of 1003

Trustees of the Public Employees' Retirement System, and no 1004

designation or change of beneficiary shall be made in any other 1005

manner; however, notwithstanding any provision of this chapter to 1006

the contrary, the lawful spouse of a member at the time of the 1007

death of a member shall be the beneficiary of such member unless 1008

the member has designated another beneficiary subsequent to the 1009

date of marriage. 1010

(b) "Actuarial equivalent" shall mean a benefit of 1011

equal value to the accumulated contributions, annuity or benefit, 1012

as the case may be, when computed upon the basis of such mortality 1013

tables as shall be adopted by the board of trustees, and regular 1014

interest. 1015

(c) "Actuarial tables" shall mean such tables of 1016

mortality and rates of interest as shall be adopted by the board 1017

in accordance with the recommendation of the actuary. 1018


17/SS02/R616.1

PAGE 42 (tb\rc)



25-11-117. (1) A member may be paid a refund of the amount 1021

of accumulated contributions to the credit of the member in the 1022

annuity savings account, provided that the member has withdrawn 1023

from state service and has not returned to state service on the 1024

date the refund of the accumulated contributions would be paid. 1025

That refund of the contributions to the credit of the member in 1026

the annuity savings account shall be paid within ninety (90) days 1027

from receipt in the office of the retirement system of the 1028

properly completed form requesting the payment. In the event of 1029

death before retirement of any member whose spouse and/or children 1030

are not entitled to a retirement allowance, the accumulated 1031

contributions to the credit of the deceased member in the annuity 1032

savings account shall be paid to the designated beneficiary on 1033

file in writing in the office of the executive director of the 1034

board of trustees within ninety (90) days from receipt of a 1035

properly completed form requesting the payment. If there is no 1036

such designated beneficiary on file for the deceased member in the 1037

office of the system, upon the filing of a proper request with the 1038

board, the contributions to the credit of the deceased member in 1039

the annuity savings account shall be refunded under Section 1040

25-11-117.1(1). The payment of the refund shall discharge all 1041

obligations of the retirement system to the member on account of 1042

any creditable service rendered by the member before the receipt 1043


17/SS02/R616.1

PAGE 43 (tb\rc)

of the refund. By the acceptance of the refund, the member shall 1044

waive and relinquish all accrued rights in the system. 1045

(2) Under the Unemployment Compensation Amendments of 1992 1046

(Public Law 102-318 (UCA)), a member or the spouse of a member who 1047

is an eligible beneficiary entitled to a refund under this section 1048

may elect, on a form prescribed by the board under rules and 1049

regulations established by the board, to have an eligible rollover 1050

distribution of accumulated contributions payable under this 1051

section paid directly to an eligible retirement plan, as defined 1052

under applicable federal law, or an individual retirement account. 1053

If the member or the spouse of a member who is an eligible 1054

beneficiary makes that election and specifies the eligible 1055

retirement plan or individual retirement account to which the 1056

distribution is to be paid, the distribution will be made in the 1057

form of a direct trustee-to-trustee transfer to the specified 1058

eligible retirement plan. A nonspouse beneficiary may elect to 1059

have an eligible rollover distribution paid in the form of a 1060

direct trustee-to-trustee transfer to an individual retirement 1061

account established to receive the distribution on behalf of the 1062

nonspouse beneficiary. Flexible rollovers under this subsection 1063

shall not be considered assignments under Section 25-11-129. 1064

(3) (a) If any person who * * * has received a refund, 1065

reenters the state service and again becomes a member of the 1066

system before July 1, 2007, the member may repay all or part of 1067

the amounts previously received as a refund, together with regular 1068


17/SS02/R616.1

PAGE 44 (tb\rc)

interest covering the period from the date of refund to the date 1069

of repayment; however, the amounts that are repaid by the member 1070

and the creditable service related thereto shall not be used in 1071

any benefit calculation or determination until the member has 1072

remained a contributor to the system for a period of at least four 1073

(4) years after the member's reentry into state service. 1074

Repayment for that time shall be made * * * beginning with the 1075

most recent service for which refund has been made. Upon the 1076

repayment of all or part of that refund and interest, the member 1077

shall again receive credit for the period of creditable service 1078

for which full repayment has been made to the system. 1079

(b) If any person who * * * has received a refund, 1080


system on or after July 1, 2007, the member may repay all or part 1082

of the amounts previously received as a refund, together with 1083

regular interest covering the period from the date of refund to 1084

the date of repayment; however, the amounts that are repaid by the 1085

member and the creditable service related thereto shall not be 1086

used in any benefit calculation or determination until the member 1087

has remained a contributor to the system for a period of at least 1088

eight (8) years after the member's reentry into state service. 1089





17/SS02/R616.1

PAGE 45 (tb\rc)



(4) (a) In order to provide a source of income to members 1095

who have applied for disability benefits under Section 25-11-113 1096

or 25-11-114, the board may provide, at the employee's election, a 1097

temporary benefit to be paid from the member's accumulated 1098

contributions, if any, without forfeiting the right to pursue 1099

disability benefits, provided that the member has exhausted all 1100

personal and medical leave and has terminated his or her 1101

employment. The board may prescribe rules and regulations for 1102

carrying out the provisions of this subsection (4). 1103

(b) If a member who has elected to receive temporary 1104

benefits under this subsection later applies for a refund of his 1105

or her accumulated contributions, all amounts paid under this 1106

subsection shall be deducted from the accumulated contributions 1107

and the balance will be paid to the member. If a member who has 1108

elected to receive temporary benefits under this subsection is 1109

later approved for a disability retirement allowance, and a 1110

service retirement allowance or survivor benefits are paid on the 1111

account, the board shall adjust the benefits in such a manner that 1112

no more than the actuarial equivalent of the benefits to which the 1113

member or beneficiary was or is entitled shall be paid. 1114

(c) The board may study, develop and propose a 1115

disability benefit structure, including short- and long-term 1116

disability benefits, provided that it is the actuarial equivalent 1117


17/SS02/R616.1

PAGE 46 (tb\rc)

of the benefits currently provided in Section 25-11-113 or 1118

25-11-114. 1119



25-11-311. (1) A member may be paid a refund of the amount 1122

of accumulated contributions to the credit of the member in the 1123

annuity savings account, provided the member has withdrawn from 1124

state service and further provided the member has not returned to 1125

state service on the date the refund of the accumulated 1126

contributions would be paid. The refund of the contributions to 1127

the credit of the member in the annuity savings account shall be 1128

paid within ninety (90) days from receipt in the office of the 1129

retirement system of the properly completed form requesting that 1130

payment. In the event of death before retirement of any member 1131

whose spouse and/or children are not entitled to a retirement 1132

allowance, the accumulated contributions to the credit of the 1133

deceased member in the annuity savings account shall be paid to 1134

the designated beneficiary on file in writing in the office of the 1135

executive director of the board of trustees within ninety (90) 1136

days from receipt of a properly completed form requesting that 1137

payment. If there is no such designated beneficiary on file for 1138

the deceased member in the office of the system, upon the filing 1139

of a proper request with the board, the contributions to the 1140

credit of the deceased member in the annuity savings account shall 1141

be refunded under Section 25-11-311.1(1). The payment of the 1142


17/SS02/R616.1

PAGE 47 (tb\rc)

refund shall discharge all obligations of the retirement system to 1143

the member on account of any creditable service rendered by the 1144

member before the receipt of the refund. By the acceptance of the 1145

refund, the member shall waive and relinquish all accrued rights 1146

in the plan. 1147

(2) Pursuant to the Unemployment Compensation Amendments of 1148

1992 (Public Law 102-318 (USCS)), a member or the spouse of a 1149

member who is an eligible beneficiary making application for a 1150

refund under this section may elect, on a form prescribed by the 1151

board under rules and regulations established by the board, to 1152

have an eligible rollover distribution of accumulated 1153

contributions payable under this section paid directly to an 1154

eligible retirement plan, as defined under applicable federal law, 1155

or an individual retirement account. If the member or the spouse 1156

of a member who is an eligible beneficiary makes that election and 1157

specifies the eligible retirement plan or individual retirement 1158

account to which the distribution is to be paid, the distribution 1159

will be made in the form of a direct trustee-to-trustee transfer 1160

to the specified eligible retirement plan. A nonspouse 1161

beneficiary may elect to have an eligible rollover distribution of 1162

accumulated contributions paid in the form of a direct 1163

trustee-to-trustee transfer to an individual retirement account 1164

established to receive the distribution on behalf of the nonspouse 1165

beneficiary. Flexible rollovers under this subsection shall not 1166

be considered assignments under Section 25-11-129. 1167


17/SS02/R616.1

PAGE 48 (tb\rc)

(3) (a) If any person who * * * has received a refund, is 1168

reelected to the Legislature or as President of the Senate and 1169

again becomes a member of the plan before July 1, 2007, the member 1170

may repay all or part of the amounts previously received as a 1171

refund, together with regular interest covering the period from 1172

the date of refund to the date of repayment; however, the amounts 1173

that are repaid by the member and the creditable service related 1174

thereto shall not be used in any benefit calculation or 1175

determination until the member has remained a contributor to the 1176

system for a period of at least four (4) years after the member's 1177

reentry into state service. Repayment for that time shall be 1178

made * * * beginning with the most recent service for which refund 1179

has been made. Upon the repayment of all or part of that refund 1180

and interest, the member shall again receive credit for the period 1181

of creditable service for which full repayment has been made to 1182

the system. 1183

(b) If any person who * * * has received a refund, 1184


system after July l, 2007, the member may repay all or part of the 1186

amount previously received as a refund, together with regular 1187

interest covering the period from the date of refund to the date 1188

of repayment; however, the amounts that are repaid by the member 1189

and the creditable service related thereto shall not be used in 1190

any benefit calculation or determination until the member has 1191

remained a contributor to the system for a period of at least 1192


17/SS02/R616.1

PAGE 49 (tb\rc)

eight (8) years after the member's reentry into state service. 1193








25-3-39. (1) (a) Except as otherwise provided in this 1201

section, no public officer, public employee, administrator, or 1202

executive head of any arm or agency of the state, in the executive 1203

branch of government, shall be paid a salary or compensation, 1204

directly or indirectly, greater than one hundred fifty percent 1205

(150%) of the salary fixed in Section 25-3-31 for the Governor, 1206

nor shall the salary of any public officer, public employee, 1207

administrator, or executive head of any arm or agency of the 1208

state, in the executive branch of government, be supplemented with 1209

any funds from any source, including federal or private funds. 1210

Such salaries shall be completely paid by the state. All academic 1211

officials, members of the teaching staffs and employees of the 1212

state institutions of higher learning, the Mississippi Community 1213

College Board, and community and junior colleges, and licensed 1214

physicians who are public employees, shall be exempt from this 1215

subsection. All professional employees who hold a bachelor's 1216

degree or more advanced degree from an accredited four-year 1217


17/SS02/R616.1

PAGE 50 (tb\rc)

college or university or a certificate or license issued by a 1218

state licensing board, commission or agency and who are employed 1219

by the Department of Mental Health shall be exempt from this 1220

subsection if the State Personnel Board approves the exemption. 1221

The Commissioner of Child Protection Services is exempt from this 1222

subsection. From and after July 1, 2018, the Executive Director 1223

of the Public Employees' Retirement System and the Chief 1224

Investment Officer of the Public Employees' Retirement System 1225

shall be exempt from this subsection. 1226

(b) The Governor shall fix the annual salary of the 1227

Executive Director of the Mississippi Development Authority, the 1228

annual salary of the Commissioner of Child Protection Services, 1229

and the annual salary of the Chief of Staff of the Governor's 1230

Office. The salary of the Governor's Chief of Staff shall not be 1231

greater than one hundred fifty percent (150%) of the salary of the 1232

Governor and shall be completely paid by the state without 1233

supplementation from another source. The salary of the Executive 1234

Director of the Mississippi Development Authority may be greater 1235

than one hundred fifty percent (150%) of the salary of the 1236

Governor and may be supplemented with funds from any source, 1237

including federal or private funds; however, any state funds used 1238

to pay the salary of the Executive Director of the Mississippi 1239

Development Authority shall not exceed one hundred fifty percent 1240

(150%) of the salary of the Governor. If the executive director's 1241

salary is supplemented with private funds, the Mississippi 1242


17/SS02/R616.1

PAGE 51 (tb\rc)

ST: Retirement; make certain technical revisions to PERS, SLURP and Highway Patrol & exempt exec. dir. from salary cap.

Development Authority shall publish on its website the amount of 1243

the supplement and the name of the donor of the private funds. 1244

(2) No public officer, employee or administrator shall be 1245

paid a salary or compensation, directly or indirectly, in excess 1246

of the salary authorized to be paid the executive head of the 1247

state agency or department in which he is employed. The State 1248

Personnel Board, based upon its findings of fact, may exempt 1249

physicians and actuaries from this subsection when the acquisition 1250

of such professional services is precluded based on the prevailing 1251

wage in the relevant labor market. 1252

(3) The executive head of any state agency or department 1253

appointed by the Governor, in such executive head's discretion, 1254

may waive all or any portion of the salary or compensation 1255

lawfully established for the position. 1256

SECTION 9. This act shall take effect and be in force from 1257

and after July 1, 2017. 1258

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