Bill Text: MS SB2086 | 2016 | Regular Session | Introduced
Bill Title: Government Employees' Deferred Compensation Law as; clarify investment options.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-23 - Died In Committee [SB2086 Detail]
Download: Mississippi-2016-SB2086-Introduced.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2086
AN ACT TO AMEND SECTIONS 25-14-3, 25-14-5, 25-14-7, 25-14-9, 25-14-11, 25-14-13 AND 25-14-15, MISSISSIPPI CODE OF 1972, TO DEFINE CERTAIN TERMS IN THE GOVERNMENT EMPLOYEES' DEFERRED COMPENSATION PLAN LAW; TO CLARIFY INVESTMENT OPTIONS UNDER SUCH LAW; TO CLARIFY THE ADMINISTRATION OF THE DEFERRED COMPENSATION PLAN ADMINISTERED BY THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE ADMINISTRATION OF OTHER DEFERRED COMPENSATION PLANS AUTHORIZED UNDER SUCH LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 25-14-3, Mississippi Code of 1972, is amended as follows:
25-14-3. * * *
As used in
this chapter * * *:
(a) "Employee" means any person, whether appointed, elected, or under contract, providing services for the State of Mississippi, state agencies, counties, municipalities, or other political subdivisions, for which compensation is paid.
(b) "Mississippi Government Employees' Deferred Compensation Plan and Trust" means an eligible tax-deferred compensation plan under Section 457 of the Internal Revenue Code, 26 USC 457, and applicable federal regulation administered by the Public Employees' Retirement System of Mississippi.
(c) "Plan document" means the written instrument setting out the terms and conditions related to the operation and administration of a deferred compensation plan.
(d) "Plan sponsor" means the State of Mississippi when referencing the Mississippi Government Employees' Deferred Compensation Plan and Trust. Otherwise, any county, municipality or other political subdivision of the state that offers a deferred compensation plan under Section 457 of the Internal Revenue Code, 26 USC 457, and applicable federal regulations.
SECTION 2. Section 25-14-5, Mississippi Code of 1972, is amended as follows:
25-14-5. (1) The Mississippi Government Employees' Deferred Compensation Plan and Trust is hereby established. The plan is an eligible tax-deferred compensation plan under Section 457 of the Internal Revenue Code, 26 USC 457, and applicable federal regulations and shall be administered by the Public Employees' Retirement System of Mississippi. Other plan sponsors may also establish a plan that is an eligible tax-deferred compensation plan under Section 457 of the Internal Revenue Code, 26 USC 457, and applicable federal regulations. The plan shall be administered pursuant to applicable law and the plan document.
(2) In the
administration of a deferred compensation plan established under this chapter,
the Public Employees' Retirement System of Mississippi or the plan sponsor of
plans other than Mississippi Government Employees' Deferred Compensation Plan
and Trust established by a county, municipality or other political subdivision,
may adopt a plan document and any other regulations as are reasonable and
necessary to assure the orderly functioning of the plan. The State of
Mississippi, or any state agency, county, municipality or other political
subdivision may, by written contract, agree with any employee to defer,
in whole or in part, any portion of that employee's income, * * * up to the limits established by the
Internal Revenue Code, Title 26 USC 457. 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 * * * deferred compensation plan's plan document if making
the contribution does not conflict with any other state law. * * *
(3) Except as otherwise
provided in subsection (4) of this section and notwithstanding, anything in
any other law to the contrary * * *, 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.
(4) The Mississippi Government Employees' Deferred Compensation Plan and Trust or any other deferred compensation plan established by this chapter may include Roth accounts pursuant to 26 USC 402A of the Internal Revenue Code or any other post-tax vehicle contribution allowed pursuant to the Internal Revenue Code if permitted under the plan document. A participant's Roth or other allowable post-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. A participant's Roth or other allowable post-tax contribution into a deferred compensation account and any associated earnings are exempt from levy, garnishment, attachment or any other process whatsoever and may be withdrawn tax-free if the requirements for a qualified distribution under the Internal Revenue Code are met.
SECTION 3. Section 25-14-7, Mississippi Code of 1972, is amended as follows:
25-14-7. (1) The
administration of the Mississippi Government Employees' Deferred
Compensation * * *
Plan and Trust shall be under the direction of the Public Employees'
Retirement System of Mississippi * * *
and shall be operated in accordance with the * * * laws established by the
Internal Revenue * * * Code, 26 USC 457 and related federal laws, as
reflected in the plan document as may be modified from time to time by the
board of trustees. Payroll reductions shall be made, in each instance, by the
appropriate payroll officer. The * * *
Public Employees' Retirement System of Mississippi may contract with a
private corporation or institution for providing consolidated billing and other
administrative services if deemed * * * appropriate.
The Board of Trustees of
the Public Employees' Retirement System of Mississippi may * * * authorize such charges and fees on
participants' contributions as may reasonably be necessary to provide for the
administrative expenses of operating the deferred compensation * * * plan, including, but not
limited to, the services of auditors, legal advisors, consultants, money
managers and third-party administrators.
(2) The administration of deferred compensation plans established by this chapter, other than Mississippi Government Employees' Deferred Compensation Plan and Trust, shall be under the direction of the plan sponsor. The deferred compensation plan shall be operated in accordance with the applicable federal laws as reflected in the plan document as may be modified from time to time by the plan sponsor. Payroll reductions shall be made, in each instance, by the appropriate payroll officer. The administrator of a deferred compensation program may contract with a private corporation or institution for providing consolidated billing and other administrative services if deemed appropriate. The plan sponsor may authorize such charges and fees on participants' contributions as may reasonably be necessary to provide for the administrative expenses of operating the deferred compensation program, including, but not limited to, the service of auditors, legal advisors, consultants, money managers and third-party administrators.
SECTION 4. Section 25-14-9, Mississippi Code of 1972, is amended as follows:
25-14-9. (1)
Notwithstanding any other provision of law to the contrary, the Public
Employees' Retirement System of Mississippi * * * as the administrator of the Mississippi
Government Employees' Deferred Compensation Plan and Trust is authorized to
contract with providers to offer investment options, including, but not limited
to, fixed and variable life insurance or annuity contracts; * * * mutual funds, collective
investment trusts or common group trusts that provide for the pooling of assets
of employee benefits trusts, separate accounts or any other investment
vehicles, including funds exempt from registration as securities which invest
in any investments authorized for purchase by the Public Employees'
Retirement System of Mississippi under Section 25-11-121 * * * or benefit responsive contracts
issued by insurance companies, banks or financial institutions. While
any portion of the program's assets are invested in a collective investment
trust or a common group trust, such trust shall constitute a part of the
program and the instruments creating the trust shall constitute a part of the
program documentation.
(2) Notwithstanding any other provision of law to the contrary, the appropriate officer of a county, municipality, or other political subdivision designated to administer a deferred compensation program established by this chapter is authorized to invest money held pursuant to a deferred compensation program in fixed and variable life insurance or annuity contracts, or to purchase any investments authorized for purchase by the Public Employees' Retirement System of Mississippi under Section 25-11-121, or to invest such 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 such purpose.
SECTION 5. Section 25-14-11, Mississippi Code of 1972, is amended as follows:
25-14-11. * * * A deferred compensation * * * plan established by this chapter shall exist and serve in
addition to other retirement, pension, or benefit systems established by * * *
state
agencies, counties, municipalities, or other political subdivisions of the
State of Mississippi. * * * The A deferred compensation program established by
this chapter shall not supersede, make inoperative, or reduce any benefits
provided by the Public Employees' Retirement System of Mississippi, * * *
by programs established under the general municipal employees' retirement act,
or by any other retirement, pension, or benefit program established by law.
SECTION 6. Section 25-14-13, Mississippi Code of 1972, is amended as follows:
25-14-13. Notwithstanding
any other provision of law to the contrary, any compensation deferred under
this chapter shall be considered part of an employee's compensation for
purposes of any other employee retirement, pension, or benefit * * * plan. No deferral of income
under the deferred compensation * * * plan shall effect a reduction of
any retirement, pension, or other benefit * * * plan provided by law.
SECTION 7. Section 25-14-15, Mississippi Code of 1972, is amended as follows:
25-14-15. Except as
provided in Section 25-14-5(4) and notwithstanding any other provision of
this chapter or any other provision of law to the contrary, any sum deferred
under * * * a
deferred compensation * * * plan established by this chapter, shall not be
included for the purposes of computation of any taxes withheld on behalf
of any employee.
SECTION 8. This act shall take effect and be in force from and after July 1, 2016.
