Bill > SB2902

This bill enacts significant reforms to the Public Employees' Retirement System of Mississippi (PERS), particularly affecting "Tier 5" members, which is a classification for those who joined the system on or after March 1, 2026. Key provisions include reducing the vesting period, the time required to be eligible for retirement benefits, from eight to six years, and lowering the required years of service for retirement regardless of age from 35 to 30. It also introduces a new retirement option where members can retire if the sum of their age and years of creditable service equals at least 80. For members with over 20 years of service, the multiplier used to calculate the defined-benefit portion of their pension will increase from 1% to 1.25% per year. A cost-of-living adjustment (COLA) for retirees will be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), but capped at 1.5% annually, and will not be provided if the CPI-W is zero or less, or if the system's unfunded actuarial accrued liability exceeds 15%. The bill mandates the board to publish actuarial survey results online annually for transparency and requires them to offer annual retirement planning seminars to all members. It also introduces a Deferred Retirement Option Plan (DROP) for new Tier 5 members, allowing them to accrue retirement benefits while continuing to work for up to five years. For the defined-contribution portion of the plan, employers will provide a minimum match of 3% of employee contributions, increasing to 5% for first responders, with an additional 1% match for every five years of service as a first responder. A one-time employer contribution of $2,000 will be made to the defined-contribution account of any employee with 10 years of membership service. First responders who are vested will have the option to "buy back" up to five years of service credit for service rendered before March 1, 2026. Specific retirement eligibility is also introduced for first responders, allowing them to retire at age 55 with 20 years of service, or after 25 years of service regardless of age. First responders will also benefit from a higher defined-benefit multiplier of 1.5% and enhanced disability and survivor benefits. The bill also includes provisions for a Partial Lump-Sum Option (PLSO) and brings forward Section 25-11-123 for potential amendment, which deals with the system's financial accounts.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/SB/SB2902.xml