Bill Text: MS SB2907 | 2026 | Regular Session | Introduced
Bill Title: First Responders Retirement System; establish.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-02-03 - Died In Committee [SB2907 Detail]
Download: Mississippi-2026-SB2907-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2907
AN ACT TO CREATE A SEPARATE RETIREMENT SYSTEM FOR FIRST RESPONDERS, INCLUDING LAW ENFORCEMENT OFFICERS, FIREFIGHTERS, EMERGENCY MEDICAL SERVICES PROVIDERS, EMERGENCY MANAGEMENT PERSONNEL, AND PUBLIC SAFETY TELECOMMUNICATORS; TO DEFINE ELIGIBILITY FOR MEMBERSHIP IN THE SYSTEM; TO PROVIDE FOR EMPLOYEE AND EMPLOYER CONTRIBUTIONS TO FUND THE SYSTEM; TO ESTABLISH BENEFITS FOR DISABILITY AND SUPERANNUATION RETIREMENT AND ESTABLISH DEATH BENEFITS; TO ESTABLISH A COST-OF-LIVING ADJUSTMENT (COLA) TIED TO THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS(CPI-W); TO ESTABLISH AN ADMINISTRATIVE BOARD TO ASSIST WITH THE OPERATION OF THE SYSTEM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. There is established a retirement system for the purpose of providing retirement allowances and other benefits under this chapter for law enforcement officers, firefighters, emergency medical services providers, emergency management personnel, public safety telecommunicators, and their beneficiaries. This retirement system shall be known as the "First Responders Retirement System." The retirement system shall go into operation on July 1, 2026, when contributions by members shall begin and benefits shall become payable. This retirement system is designed to supplement and is in addition to Article 1 of the Public Employees' Retirement Law of 1952. Under the terms of this chapter, law enforcement officers, firefighters, emergency medical services providers, emergency management personnel, and public safety telecommunicators shall retain all social security benefits under Article 1 of the Public Employees' Retirement Law of 1952 but shall not be eligible for benefits under Article 3 of that law. This chapter is a substitute for Article 3 of that law and is designed to provide more liberal benefits for law enforcement officers, firefighters, emergency medical services providers, emergency management personnel, and public safety telecommunicators by reason of the dangerous nature of and special risk involved in their employment.
SECTION 2. (1) For the purposes of this chapter, the definitions in Section 25-11-5 and Section 25-11-103 shall apply, unless a different meaning is plainly expressed by the context or is provided in subsection (2) of this section.
(2) As used in this chapter, the following terms shall have the meanings as defined in this subsection unless the context requires otherwise:
(a) "Administrative board" means the board established in Section 18 of this act.
(b) "Board" means the Board of Trustees of the Public Employees' Retirement System of Mississippi.
(c) "Emergency management personnel" means any full-time employee of the state, or any county, municipality, or political subdivision of the state, whose primary duties involve planning for, coordinating, or supporting emergency management functions under the Mississippi Emergency Management Law, Section 33-15-1 et seq., including preparedness response, recovery, mitigation, and emergency operations center activities.
(d) "Emergency medical services provider" means a person who is certified by the State Department of Health as one of the types of emergency medical services personnel under Section 41-59-1 et seq., and who is employed full time by the state or any county, municipality or other political subdivision of the state. This term also includes 911 dispatchers who are employed full time by the state or any county, municipality or other political subdivision of the state.
(e) "Firefighter" means a person who is trained for the prevention and control of loss of life and property from fire or other emergencies, who is assigned to firefighting activity and is required to respond to alarms and perform emergency actions at the location of a fire, hazardous materials or other emergency incident, who is employed full time by the state or any county, municipality or other political subdivision of the state, and who has met the minimum educational and training standards established by the Mississippi Fire Personnel Minimum Standards and Certification Board for permanent, full-time firefighters and has received a certificate from that board.
(f) "First responder" means a firefighter, law enforcement officer, emergency medical services provider, emergency management personnel, or public safety telecommunicator.
(g) "Law enforcement officer" means any of the following persons who are authorized to carry a firearm while in the performance of their official duties and who have met the minimum educational and training standards established by the Board on Law Enforcement Officer Standards and Training for permanent, full-time law enforcement officers and have received a certificate from that board:
(i) Municipal police officers and narcotics agents, but not officers who are engaged only in administrative or civil duties;
(ii) Sheriffs and deputy sheriffs, but not deputy sheriffs who are engaged only in administrative or civil duties;
(iii) Constables;
(iv) Conservation officers of the Department of Wildlife, Fisheries and Parks;
(v) Enforcement officers of the Department of Marine Resources;
(vi) Agents and inspectors of the Alcoholic Beverage Control Division of the Department of Revenue;
(vii) Commercial transportation inspection station employees, enforcement officers, field inspectors, railroad inspectors and other inspectors of the Department of Public Safety;
(viii) Capitol Police officers of the Department of Public Safety;
(ix) State correctional facility guards and enforcement officers of the Department of Corrections;
(x) Municipal or county jail officers, guards and enforcement officers; and
(xi) Any other full-time officer or employee of the state or any county, municipality or other political subdivision of the state, not listed in subparagraphs (i) through (x) of this paragraph, who is authorized to carry a firearm while in the performance of his or her official duties and who has met the minimum educational and training standards established by the Board on Law Enforcement Officer Standards and Training for permanent, full-time law enforcement officers and has received a certificate from that board. However, the term "law enforcement officer" does not include any person who is an active member of the Mississippi Highway Safety Patrol Retirement System.
(h) "Member" means any person included in the membership of the system as provided in Section 4 of this act.
(i) "Public safety telecommunicator" means any full-time employee of the state, or any county, municipality, or other political subdivision of the state, who is engaged in receiving, processing, or dispatching requests for emergency services for a public safety, fire, or emergency medical agency, and who provides or relays emergency-related information by telephone, radio, or other communication systems.
(j) "Retirement system" or "system" means the First Responders Retirement System established under this chapter.
SECTION 3. (1) The general administration and responsibility for the proper operation of the system and for making this chapter effective are vested in the board and the administrative board, as specified in this chapter.
(2) The board shall invest all funds of the system in accordance with Section 25-11-121.
(3) The board shall designate an actuary, who shall be the board's technical advisor on matters regarding the operation of the system and shall perform such other duties as are required in connection with the system.
(4) At least once in each two-year period, the actuary shall make an actuarial investigation into the mortality, service, withdrawal and compensation experience of the members and beneficiaries of the system, and shall make a valuation of the assets and liabilities of the system. Taking into account the result of the investigation and valuation, the administrative board shall adopt for the system such mortality, service and other tables as shall be deemed necessary. On the basis of those tables that the administrative board adopts, the actuary shall make valuations of the assets and liabilities of the system's funds.
(5) The board shall keep such data as necessary for the actuarial valuation of the contingent assets and liabilities of the system and for checking the experience of the system.
(6) The board shall determine from time to time the rate of regular interest for use in all calculations.
(7) The board shall make payments of retirement benefits under this chapter to members, and to the beneficiaries of those members, by whatever means the board prescribes by regulation to be the most appropriate for the proper and efficient payment of benefits, including, but not limited to, direct deposit to an account with a financial institution that is a participant of the Automated Clearing House designated by the member or beneficiary. The board may provide for alternative means of payment if the member or beneficiary demonstrates that payment by the prescribed means will cause the member or beneficiary undue hardship.
(8) Subject to the limitations of this chapter, the board from time to time shall establish rules and regulations for the administration of the system and for the transaction of business.
(9) The board shall keep a record of all its proceedings under this chapter. All books, accounts and records shall be kept in the general office of the Public Employees' Retirement System and shall be public records except for individual member records. The Public Employees' Retirement System shall not disclose the name, address or contents of any individual member records without the prior written consent of the individual to whom the record pertains, except as authorized by regulations of the board.
(10) The Executive Director of the Public Employees' Retirement System shall serve as the executive director of this system.
SECTION 4. (1) Membership in the system shall be open to all persons employed full time as first responders. Membership in the system shall not include any secretarial, clerical, stenographic or administrative employees; however, membership shall include supervisors of first responders, so long as such supervisors meet all criteria in the definition of "first responder" other than the exclusion of persons engaged only in administrative or civil duties.
(2) All first responders eligible for membership in the system who were serving in that capacity before July 1, 2026, and are still serving in that capacity on July 1, 2026, shall become members of the system on that date, unless they file with the board before August 1, 2026, on a form prescribed by the board, a notice of election not to be covered in the membership of the system and a duly executed waiver of all present and prospective benefits that otherwise would inure to them on account of their membership in the system.
(3) All first responders eligible for membership in the system who are elected or appointed on or after July 1, 2026, shall become members of the system as a condition of their office or employment; however, retirees under the system may return to work as first responders as contributing members of the Public Employees' Retirement System of Mississippi.
(4) Membership in the system shall cease by a member withdrawing his or her accumulated contributions, or by a member withdrawing from active service with a retirement allowance, or by the death of the member.
SECTION 5. (1) Creditable service on which a member's service or disability retirement benefit is based shall consist of prior service, membership service, and all lawfully credited unused leave as of the date of withdrawal from service, as certified by the employer. Prior service means service performed before July 1, 2026, for which contributions were made to the Public Employees' Retirement System. Membership service means all service for which credit may be allowed under this chapter on and after July 1, 2026.
(2) In computing the period of service of a member of the system, any member who served on active duty in the United States Armed Forces shall be entitled to creditable service at no cost for his or her service on active duty in the Armed Forces, provided that the member entered state service after his or her discharge from the Armed Forces. The maximum period for creditable service for all military service as defined in this subsection shall not exceed four (4) years. The member shall furnish proof satisfactory to the board of certification of military service records showing dates of entrance into service and the date of discharge. No creditable service shall be granted for any military service to a member who qualifies for a retirement allowance in another public retirement system administered by the board based in whole or in part on that military service. In no case shall the member receive creditable service if the member received a dishonorable discharge from the United States Armed Forces.
(3) (a) Any member of the system whose membership service is interrupted as a result of qualified military service within the meaning of Section 414(u)(5) of the Internal Revenue Code, and who has received the maximum service credit available under subsection (2) of this section, shall receive creditable service for the period of qualified military service that does not qualify as creditable service under subsection (2) of this section upon reentering membership service in an amount not to exceed five (5) years if:
(i) The member pays the contributions that he or she would have made to the system if the member had remained in membership service for the period of qualified military service based upon his or her salary at the time his or her membership service was interrupted;
(ii) The member returns to membership service within ninety (90) days of the end of his or her qualified military service; and
(iii) The employer at the time the member's service was interrupted and to which employment the member returns pays the contributions it would have made into the retirement system for that period based on the member's salary at the time the service was interrupted.
(b) The payments required to be made in paragraph (a)(i) of this subsection may be made over a period beginning with the date of return to membership service and not exceeding three (3) times the member's qualified military service; however, in no event shall that period exceed five (5) years.
(c) The member shall furnish proof satisfactory to the board of certification of military service showing the date of entrance into qualified service and the date of discharge, as well as proof that the member has returned to active employment within the time specified.
(4) With respect to the death of a member that occurs while the member is performing qualified military service within the meaning of Section 414(u) of the Internal Revenue Code:
(a) The deceased member's period of qualified military service must be counted for vesting purposes.
(b) To the extent required by Section 401(a)(37) of the Internal Revenue Code, the deceased member's survivors are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as those purchase rights the deceased member could have exercised under subsection (3) of this section.
(5) To the extent required by Section 414(u)(12) of the Internal Revenue Code, a member receiving differential wage payments within the meaning of Section 3401(h)(2) of the Internal Revenue Code from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on an annual addition under Section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.
SECTION 6. (1) The board shall act as custodian of the system, and shall receive to the credit of the system all appropriations, employer and employee contributions to the system, and other funds made available to the system, from any source whatsoever.
(2) The employers shall deduct each month from the salary of each member nine percent (9%) of earned compensation, and shall pay the amount so deducted to the board to be credited to the system. Notwithstanding the employee contribution rate specified in this subsection, the board may vary the percentage of employee contribution biennially on the basis of the liabilities of the system for the various allowances and benefits as shown by actuarial valuation.
(3) On account of each member, the employer shall pay monthly into the system from funds available an amount equal to a certain percentage of the compensation of each member to be known as the "normal contributions," and an additional amount equal to a percentage of his or her compensation to be known as the "accrued liability contribution." The percentage rate of those contributions shall be fixed biennially by the administrative board on the basis of the liabilities of the system for the various allowances and benefits as shown by the actuarial valuation.
(4) From the funds credited to this account, the board shall pay retirements, disability benefits, survivors' benefits, expenses and shall refund contributions as provided in this chapter. The funds of the system shall be maintained as a separate fund, separate from all other funds held by the board and shall be used only for the payment of benefits provided for by this chapter.
(5) The board is authorized to deduct two percent (2%) of all employer contributions paid into the system to be transferred to the expense fund of the Public Employees' Retirement System to defray the cost of administering the system created in this chapter.
SECTION 7. Each employer shall pick up the member contributions required by Section 6 of this act from all compensation earned on or after July 1, 2026. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code and Mississippi Income Tax Code. These contributions shall not be included as gross income of the member until such time as they are distributed or made available. The employer shall pay these member contributions from the same source of funds that is used in paying earnings to the member. The employer may pick up these member contributions by a reduction in the cash salary of the member, or by an offset against a future salary increase, or by a combination of a reduction in salary and offset against a future salary increase. The member contributions so picked up shall be treated for all purposes of the system in the same manner and to the same extent as member contributions.
SECTION 8. (1) Upon application of a member or his or her employer, but in no event before termination of state service, any member who has not attained the age of sixty (60) years may be retired by the administrative board, not less than thirty (30) and not more than ninety (90) days next following the date of filing the application, on a disability retirement allowance, if the medical board of the Public Employees' Retirement System, after an evaluation of medical evidence, which may include a physical examination by the medical board, certifies that he or she is mentally or physically incapacitated for the performance of duty, that the incapacity is likely to be permanent, and that the sickness or injury was caused or sustained as a direct result of duty as a first responder on or after July 1, 2026.
Upon the application of a member or his or her employer, any member who is not yet eligible for service retirement benefits and who has had at least eight (8) years of creditable service may be retired by the administrative board, not less than thirty (30) and not more than ninety (90) days next following the date of filing the application, on a disability retirement allowance, if the medical board, after an evaluation of medical evidence, which may include a physical examination by the medical board, certifies that he or she is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that he or she should be retired. This disability need not be service connected.
(2) Upon retirement for disability, a member shall receive a disability benefit equal to fifty percent (50%) of his or her average compensation for the two (2) years immediately preceding the member's retirement, but not less than any retirement benefits for which the member may be eligible at the date that he or she is granted disability.
(3) Once each year during the first five (5) years following retirement of a member on a disability retirement allowance, and once in every period of three (3) years thereafter, the administrative board may, and upon his or her application shall, require any disability retiree who has not yet attained the age of sixty (60) years to undergo a medical examination. The examination shall be made at the place of residence of the retiree or other place mutually agreed upon by the medical board. If any disability retiree who has not yet attained the age of sixty (60) years refuses to submit to any medical examination provided for in this subsection, the retiree's allowance may be discontinued until his or her withdrawal of that refusal, and if the retiree's refusal continues for one (1) year, all of his or her rights in that part of the disability benefit provided by employer contributions shall be revoked by the administrative board.
(4) If a disability retiree under the age of sixty (60) years is restored to active service at a compensation not less than the retiree's average compensation, his or her disability benefit shall cease, the retiree shall again become a member of the retirement system, and he or she shall contribute thereafter at the same rate he or she paid before disability. Any such prior service certificate on the basis of which his or her service was computed at the time of retirement shall be restored to full force and effect. In addition, upon his or her subsequent retirement, the retiree shall be credited with all creditable service as a member, including the period for which he or she was paid disability benefits.
SECTION 9. (1) Any member upon withdrawal from service upon or after attainment of the age of sixty (60) years who has completed at least eight (8) years of creditable service, or any member upon withdrawal from service regardless of age who has completed at least twenty-five (25) years of creditable service, shall be entitled to receive a retirement allowance that shall be payable the first of the month following receipt of the member's application in the office of the executive director of the system, but in no event before withdrawal from service.
(2) Any member whose withdrawal from service occurs before attaining the age of sixty (60) years who has completed at least eight (8), but fewer than twenty-five (25) years of creditable service and has not received a refund of the member's accumulated contributions shall be entitled to receive a retirement allowance of the amount earned and accrued at the date of withdrawal from service, beginning upon his or her attaining the age of sixty (60) years.
(3) The annual amount of the retirement allowance shall consist of:
(a) A member's annuity, which shall be the actuarial equivalent of the accumulated contributions of the member at the time of retirement, computed according to the actuarial table in use by the system; and
(b) An employer's annuity, which, together with the member's annuity provided above, shall be equal to two percent (2%) of the average compensation for each year of creditable service up to and including twenty (20) years, and two and one-half percent (2-1/2%) of the average compensation for each year of creditable service exceeding twenty (20) years.
(4) Upon retiring from service, a member shall be eligible to obtain retirement benefits as computed in subsection (3) of this section for life, except that the aggregate amount of the employer's annuity shall not exceed more than one hundred percent (100%) of the average compensation, regardless of the years of service.
(5) (a) A retiree or beneficiary may, on a form prescribed by and filed with the executive director of the system, irrevocably waive all or a portion of any benefits from the system to which the retiree or beneficiary is entitled. The waiver shall be binding on the heirs and assigns of any retiree or beneficiary, and the same must agree to forever hold harmless the system from any claim to the waived retirement benefits.
(b) Any waiver under this subsection shall apply only to the person executing the waiver. A beneficiary shall be entitled to benefits according to the option selected by the member at the time of retirement; however, a beneficiary may execute a waiver of benefits under this subsection.
(c) The system shall retain all amounts that are not used to pay benefits because of a waiver executed under this subsection.
(d) The board may provide rules and regulations for the administration of waivers under this subsection.
(a) An amount equal to a certain percent of the annual retirement allowance, as specified in the last paragraph of this subsection, multiplied by the number of full fiscal years in retirement before the end of the fiscal year in which the member reaches age fifty-five (55), plus
(b) An additional amount equal to a certain percent of the annual retirement allowance, as specified in the last paragraph of this subsection, compounded by the number of full fiscal years in retirement beginning with the fiscal year in which the member reaches age fifty-five (55), multiplied by the amount of the annual retirement allowance.
The percentage of the annual retirement allowance that shall be used in the calculations made in paragraphs (a) and (b) of this subsection shall be the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the twelve-month period ending with the preceding June. If the CPI-W is zero or less, there will be no additional benefit paid from the assets of the system. However, for any year in which the CPI-W is zero or less, the Legislature may appropriate or transfer additional funds to the system for the payment of an additional benefit to retired members for that year.
(2) The calculation of the beneficiary's additional benefit provided in this section shall be based on the member's age and full fiscal years in retirement as if the member had lived.
(3) If a retiree who is receiving a retirement allowance that will terminate upon the retiree's death is receiving the additional benefit in one (1) payment and dies on or after July 1 but before December 1, the beneficiary designated on the retirement application, if any, shall receive in a single payment a fractional part of the additional benefit based on the number of months in which a retirement allowance was received during the fiscal year. If there is no surviving beneficiary, payment shall be made in accordance with Section 15(1) of this act. Any similar remaining payments of the additional benefit payable under this section to a deceased beneficiary who was receiving a monthly benefit shall be payable in accordance with Section 15(2) of this act. Likewise, if a retiree is receiving a retirement allowance that will terminate upon the retiree's death in two (2) to six (6) monthly installments, any remaining payments of the additional benefit will be paid in a lump sum to the beneficiary designated on the application, or if none, in accordance with Section 15(1) of this act. If the additional benefit is being received in one (1) payment each year, the additional benefit shall be prorated based on the number of months in which a retirement allowance was received during the fiscal year when (a) the monthly benefit payable to a beneficiary terminates due to the expiration of an option, remarriage or cessation of dependent status or due to the retiree's return to covered employment, and (b) the monthly benefit terminates on or after July 1 and before December 1.
(4) The additional benefit provided in this section shall be paid in one (1) payment in December of each year to those persons who are receiving a retirement allowance on December 1 of that year, unless an election is made under subsection (5) of this section. The board, in its discretion, may allow a retired member or a beneficiary thereof who is receiving the additional benefit in one (1) payment each year to have the additional benefit paid in monthly installments if the retired member or beneficiary submits satisfactory documentation that the continued receipt of the additional benefit in one (1) payment each year will cause a financial hardship to the retired member or beneficiary.
(5) Retired members or beneficiaries thereof who are receiving a retirement allowance may elect by an irrevocable agreement in writing filed in the office of the Public Employees' Retirement System no less than thirty (30) days before July 1 of any year, to begin receiving the additional benefit provided in this section in twelve (12) equal monthly installments beginning on July 1 of the year. This irrevocable agreement shall be binding on the member and subsequent beneficiaries. Payment of those monthly installments shall not extend beyond the month in which a retirement allowance is due and payable. The board, in its discretion, may allow a retired member or a beneficiary thereof who is receiving the additional benefit in monthly installments to have the additional benefit paid in one (1) payment in December of each year if the retired member or beneficiary submits satisfactory documentation that the continued receipt of the additional benefit in monthly installments will cause financial hardship to the retired member or beneficiary.
(6) The additional benefit or benefits provided in this section are for the fiscal year in which they are paid.
(7) When a member retires after July 1 and has previously received a retirement allowance for one or more full fiscal years, the retired member shall be eligible immediately for the additional benefit. The additional benefit shall be based on the current retirement allowance and the number of full fiscal years in retirement and shall be prorated and paid in monthly installments based on the number of months a retirement allowance is paid during the fiscal year.
(8) The amount provided for under subsection (1)(b) of this section is calculated using the following formula:
[(1 + CPI-W)n - 1] x [annual retirement allowance],
where "CPI-W" means the average Consumer Price Index for Urban Wage Earners and Clerical Workers for the twelve-month period ending with the preceding June, and n is the number of full fiscal years in retirement beginning with the fiscal year in which the member reaches age fifty-five (55).
SECTION 11. (1) Upon the death of any member who has retired from service or disability and who has not elected any other option under Section 12 of this act, the member's spouse shall receive one-half (1/2) of the benefit that the member was receiving, and each child not having attained the age of nineteen (19) years shall receive one-fourth (1/4) of the member's benefit, but not more than one-half (1/2) of the benefits shall be paid for the support and maintenance of two (2) or more children. Upon each child's attaining the age of nineteen (19) years, the child shall no longer be eligible for the benefit, and when all of the children have attained the age of nineteen (19) years, only the spouse shall be eligible for one-half (1/2) of the amount of the member's benefit. The spouse shall continue to be eligible for the benefit in the amount of fifty percent (50%) of the member's retirement benefit as long as the spouse may live.
(2) Upon the death of any member who has served the minimum period required for eligibility for retirement under this chapter, the member's spouse and family shall receive all the benefits payable to the member's beneficiaries as if the member had retired at the time of death. Those benefits shall continue to be paid to the spouse for life. The benefits are payable on a monthly basis.
(3) The spouse and/or the dependent children of an active member who is killed in the line of performance of duty or dies as a direct result of an accident occurring in the line of performance of duty shall qualify, on approval of the board, for a retirement allowance on the first of the month following the date of the member's death, but not before receipt of application by the board. The spouse shall receive a retirement allowance equal to one-half (1/2) of the average compensation of the deceased member. In addition to the retirement allowance for the spouse, or if there is no surviving spouse, a retirement allowance shall be paid in the amount of one-fourth (1/4) of the average compensation for the support and maintenance of one (1) child or in the amount of one-half (1/2) of the average compensation for the support and maintenance of two (2) or more children. Those benefits shall cease to be paid for the support and maintenance of each child upon the child attaining the age of nineteen (19) years; however, the spouse shall continue to be eligible for the retirement allowance provided for the spouse. Benefits may be paid to a surviving parent or lawful custodian of the children for the use and benefit of the children without the necessity of appointment as guardian. The retirement allowance shall continue to be paid to the spouse for life.
(4) All benefits accruing to any child under this chapter shall be paid to the parent custodian of the children or the legal guardian.
(5) Children receiving the benefits provided in this section who are permanently or totally disabled shall continue to receive the benefits for as long as the medical board or other designated governmental agency certifies that the disability continues. The age limitation for benefits payable to a child under any provision of this section shall be extended beyond age nineteen (19), but in no event beyond the attainment of age twenty-three (23), as long as the child is a student regularly pursuing a full-time course of resident study or training in an accredited high school, trade school, technical or vocational institute, junior or community college, college, university or comparable recognized educational institution duly licensed by a state. A student child whose birthday falls during the school year (September 1 through June 30) is considered not to reach age twenty-three (23) until the July 1 following the actual twenty-third birthday. A full-time course of resident study or training means a day or evening noncorrespondence course that includes school attendance at the rate of a least thirty-six (36) weeks per academic year or other applicable period with a subject load sufficient, if successfully completed, to attain the educational or training objective within the period generally accepted as minimum for completion, by a full-time day student, of the academic or training program concerned.
(6) If all the annuities provided for in this section payable on the account of the death of a member terminate before there has been paid an aggregate amount equal to the member's accumulated contributions standing to the member's credit in the annuity savings account at the time of the member's death, the difference between the accumulated contributions and the aggregate amount of annuity payments shall be paid to the person as the member has nominated by written designation duly executed and filed with the system. If there is no designated beneficiary surviving at termination of benefits, the difference shall be payable according to Section 15(1) of this act.
(7) All benefits paid to a spouse or child due to the death of a member before or after retirement shall be paid in accordance with the statutory provisions existing on the date of death.
SECTION 12. (1) Upon application for superannuation or disability retirement, any member may elect to receive his or her benefit under Section 8 or 9 of this act, or the member may elect, upon retirement or upon becoming eligible for retirement, to receive the actuarial equivalent, subject to subsection (4) of this section, of his or her retirement allowance in a reduced retirement allowance payable throughout life with the provision that:
Option 1. If the retired member dies before he or she has received in annuity payment the value of the member's annuity savings account as it was at the time of his or her retirement, the balance shall be paid to the member's legal representative or to such person as he or she has nominated by written designation duly acknowledged and filed with the board; or
Option 2. Upon the retired member's death, his or her reduced retirement allowance shall be continued throughout the life of, and paid to, such person as the member has nominated by written designation duly acknowledged and filed with the board at the time of his or her retirement; or
Option 3. Upon the retired member's death, one-half (1/2) of his or her reduced retirement allowance shall be continued throughout the life of, and paid to, such person as the member has nominated by written designation duly acknowledged and filed with the board at the time of his or her retirement, and the other one-half (1/2) of his or her reduced retirement allowance to some other designated beneficiary; or
Option 4. Upon the retired member's death, three-fourths (3/4) of his or her reduced retirement allowance, or such other specified amount, shall be continued throughout the life of, and paid to, such person as the member has nominated by written designation duly acknowledged and filed with the board of trustees at the time of his or her retirement; or
Option 4-A. Upon the retired member's death, one-half (1/2) of his or her reduced retirement allowance, or such other specified amount, shall be continued throughout the life of, and paid to, such person as the member has nominated by written designation duly acknowledged and filed with the board at the time of his or her retirement; or
Option 4-B. A reduced retirement allowance shall be continued throughout the life of the retired member, but with the further guarantee of payments to the named beneficiary or beneficiaries or to the estate for a specified number of years certain. If the retired member or the last designated beneficiary receiving annuity payments dies before receiving all guaranteed payments due, the actuarial equivalent of the remaining payments shall be paid to the successors of the retired member under Section 15(1) of this act; or
Option 6. (1) Any member who is eligible to retire with an unreduced benefit may select the maximum retirement benefit or an optional benefit as provided in this subsection together with a partial lump-sum distribution. The amount of the lump-sum distribution under this option shall be equal to the maximum monthly benefit multiplied by twelve (12), twenty-four (24) or thirty-six (36) as selected by the member. The maximum retirement benefit shall be actuarially reduced to reflect the amount of the lump-sum distribution selected and further reduced for any other optional benefit selected. The annuity and lump-sum distribution shall be computed to result in no actuarial loss to the system. The lump-sum distribution shall be made as a single payment payable at the time the first monthly annuity payment is paid to the retiree. The amount of the lump-sum distribution shall be deducted from the member's annuity savings account in computing what contributions remain at the death of the retiree and/or a beneficiary. The lump-sum distribution option may be elected only once by a member upon initial retirement and may not be elected by retirees, by members applying for a disability retirement annuity or by survivors.
(2) Any member in service who has qualified for retirement benefits may select any optional method of settlement of retirement benefits by notifying the executive director of the system in writing, on a form prescribed by the board, of the option that he or she has selected and by naming the beneficiary of the option and furnishing necessary proof of age. The option, once selected, may be changed at any time before actual retirement or death, but upon the death or retirement of the member, the optional settlement shall be placed in effect upon proper notification to the executive director.
(3) No change in the option selected shall be permitted after the member's death or after the member has received his or her first retirement check, except as provided in subsections (4) and (5) of this section. If a member retired on disability is returned to active service, the option previously selected shall be void, and upon subsequent retirement a new option may be selected by the member.
(4) Any retired member who is receiving a reduced retirement allowance under Option 2, Option 4 or Option 4-A whose designated beneficiary predeceases him or her, or whose marriage to a spouse who is his or her designated beneficiary is terminated by divorce or other dissolution, may elect to cancel his or her reduced retirement allowance and receive the maximum retirement allowance for life in an amount equal to the amount that would have been payable if the member had not elected Option 2, Option 4 or Option 4-A. The election must be made in writing to the office of the executive director of the system on a form prescribed by the board. Any such election shall be effective the first of the month following the date the election is received by the system; however, the election may be applied retroactively for not more than three (3) months but no earlier than the first of the month following the date of the death of the beneficiary.
(5) Any retired member who is receiving the maximum retirement allowance for life, or a retirement allowance under Option 1, and who marries after his or her retirement may elect to cancel his or her maximum retirement allowance or Option 1 retirement allowance and receive a reduced retirement allowance under Option 2, Option 4 or Option 4-A to provide continuing lifetime benefits to his or her spouse. The election must be made in writing to the office of the executive director of the system on a form prescribed by the board not earlier than the date of the marriage. Any such election shall be effective the first of the month following the date the election is received by the system. However, if a retiree marries or remarries after retirement and elects either Option 2, Option 4 or Option 4-A as provided in this subsection, the actuarial equivalent factor used to compute the reduced retirement allowance shall be the factor for the age of the retiree and his or her beneficiary at the time that the election for recalculation of benefits is made.
(6) If a retiree and his or her eligible beneficiary, if any, both die before they have received in annuity payments a total amount equal to the accumulated contributions standing to the retiree's credit in the annuity savings account at the time of his or her retirement, the difference between the accumulated contributions and the total amount of annuities received by them shall be paid to such persons as the retiree has nominated by written designation duly executed and filed in the office of the executive director of the system. If no designated person survives the retirant and his or her beneficiary, the difference, if any, shall be paid according to Section 15(1) of this act.
SECTION 13. (1) All persons who are covered by this chapter on July 1, 2026, and who become members of the retirement system under Section 4(2) of this act shall cease to be members of the Public Employees' Retirement System under Section 25-11-101 et seq. on July 1, 2026, and shall become members of this retirement system with full credit for all prior service performed before July 1, 2026, for which contributions were made to the Public Employees' Retirement System.
(2) For each first responder who has been a member of the Public Employees' Retirement System under Section 25-11-101 et seq. and has made contributions thereto, all employee contributions and interest to the credit of that person shall be transferred by the Public Employees' Retirement System to the credit of the person in the retirement system established by this chapter, and shall be considered an asset to the credit of that person in this retirement system.
SECTION 14. (1) If a member of the system ceases to work as a first responder for any reason other than occupational disease contracted or for any accident sustained by the member by reason of his or her service or discharge of his or her duties as a first responder, and if the member is not eligible for retirement either for service or disability, he or she shall be refunded the amount of the member's total contributions under this chapter, including any credit transferred to his or her account in this system from any other system, at the member's request, and if he or she dies before retirement, those funds shall be refunded to any beneficiary that the member has named. If there is no surviving designated beneficiary, the contributions to the credit of the deceased member shall be refunded according to Section 15(1) of this act.
(2) Under the Unemployment Compensation Amendments of 1992 (Public Law 102-218(UCA)), a member or the spouse of a member who is an eligible beneficiary eligible for a refund under this section may elect, on a form prescribed by the board under rules and regulations established by the board, to have an eligible rollover distribution of accumulated contributions payable under this section paid directly to an eligible retirement plan, as defined under applicable federal law, or an individual retirement account. If the member or the spouse of a member who is an eligible beneficiary makes that election and specifies the eligible retirement plan or individual retirement account to which the distribution is to be paid, the distribution will be made in the form of a direct trustee-to-trustee transfer to the specified eligible retirement plan. A nonspouse beneficiary may elect to have an eligible rollover distribution paid in the form of a direct trustee-to-trustee transfer to an individual retirement account established to receive the distribution on behalf of the nonspouse beneficiary. Flexible rollovers under this subsection shall not be considered assignments under Section 19 of this act.
(3) If any member who receives a refund reenters service as a first responder and again becomes a member of the system, he or she may repay all amounts previously received by him or her as a refund, together with regular interest covering the period from the date of refund to the date of repayment; however, the amounts that are repaid by the member and the creditable service related thereto shall not be used in any benefit calculation or determination until the member has remained a contributor to the system for a period of at least eight (8) years after such member's reentry into service as a first responder. Repayment for that time shall be made in increments of not less than one-quarter (1/4) year of creditable service beginning with the most recent service for which refund has been made. Upon the repayment of all or part of that refund and interest, the member shall again receive credit for the period of creditable service for which full repayment has been made to the system.
SECTION 15. (1) Except as otherwise provided in subsection (2) of this section, where benefits are payable to a designated beneficiary or beneficiaries under this chapter, and the designated beneficiary or beneficiaries as provided by the member on the most recent form filed with the system are deceased or otherwise disqualified at the time the benefits become payable, the following persons, in descending order of precedence, shall be eligible to receive the benefits:
(a) The surviving spouse of the member or retiree;
(b) The children of the member or retiree or their descendants, per stirpes;
(c) The brothers and sisters of the member or retiree or their descendants, per stirpes;
(d) The parents of the member or retiree;
(e) The executor or administrator on behalf of the member or retiree's estate;
(f) The persons entitled by law to distribution of the member or retiree's estate.
(2) Any monthly benefits payable to a beneficiary who dies before cashing his or her final check(s) and/or any additional benefits payable under Section 10 of this act still payable at the death of a beneficiary receiving monthly benefits shall be paid as follows:
(a) The surviving spouse of the beneficiary;
(b) The children of the beneficiary or their descendants, per stirpes;
(c) The brothers and sisters of the beneficiary or their descendants, per stirpes;
(d) The parents of the beneficiary;
(e) The executor or administrator on behalf of the beneficiary's estate;
(f) The persons entitled by law to distribution of the beneficiary's estate.
(3) If no claim is made by any individual listed in subsection (2) of this section, a distribution may be made under subsection (1) of this section.
(4) Payment under this section shall bar recovery by any other person of the benefits distributed. Payment of benefits made to one or more members of a class of individuals are made on behalf of all members of the class. Any members of the class coming forward after payment is made must look to those who received the payment.
SECTION 16. Subject to the rules adopted by the board, the system shall accept an eligible rollover distribution or a direct transfer of funds from another eligible retirement plan, as defined under applicable federal law, or an individual retirement account, in payment of all or a portion of the cost to purchase optional service credit or to reinstate previously withdrawn service credit as permitted by the system. The system may only accept rollover payments in an amount equal to or less than the balance due for purchase or reinstatement of service credit. The rules adopted by the board shall condition the acceptance of a rollover or transfer from another eligible retirement plan or an individual retirement account on the receipt of information necessary to enable the system to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.
SECTION 17. Regular interest shall be credited annually to the mean amount of the employee reserve account for the preceding year. This credit shall be made annually from interest and other earnings on the invested assets of the system. Any additional amount required to meet the regular interest on the funds of the system shall be charged to the employer's accumulation account, and any excess of earnings over the regular interest required shall be credited to the employer's accumulation account. Regular interest shall mean such percentage rate of interest compounded annually as determined by the board. Once that interest is credited, it shall be added to the sum of all amounts deducted from the compensation of a member and shall be included in determining his or her total contributions.
SECTION 18. There is established an administrative board for the system, which shall consist of one (1) active or retired member of the system from each of the following eight (8) organizations:
(a) Mississippi Sheriffs' Association;
(b) Mississippi Deputy Sheriffs' Association;
(c) Mississippi Association of Chiefs of Police;
(d) Mississippi Police Benevolent Association;
(e) Mississippi Law Enforcement Officers Association;
(f) Professional Firefighters Association of Mississippi;
(g) Mississippi Fire Chiefs Association; and
(h) Mississippi Fire Fighters Association.
The administrative board, with the approval of the Attorney General, may adopt any and all regulations necessary for the efficient, orderly and successful operation of this chapter, not inconsistent herewith.
SECTION 19. (1) The right of a person to an annuity, a retirement allowance or benefit, or to the return of contributions, or to any optional benefits or any other right accrued or accruing to any person under this chapter, the system and the monies in the system 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 or other taxes not so named, notwithstanding any other provision of law to the contrary, and exempt from levy and sale, garnishment, attachment or any other process whatsoever, and shall be unassignable except as specifically provided otherwise in this chapter.
(2) Any retired member or beneficiary receiving a retirement allowance or benefit under this chapter may authorize the Public Employees' Retirement System to make deductions from the retirement allowance or benefit for the payment of employer- or system-sponsored group life or health insurance. The deductions authorized under this subsection shall be subject to rules and regulations adopted by the board.
SECTION 20. (1) The maintenance of actuarial reserves for the various allowances and benefits under this chapter, and the payment of all annuities, retirement allowances, refunds and other benefits granted under this chapter are made obligations of the system. All income, interest and dividends derived from deposits and investments authorized by this chapter shall be used for the payment of the obligations of the system.
(2) If the system is terminated, all members of the system as of the date of termination of the system shall be deemed to have a vested right to benefits to the same extent and in the same manner that rights would be vested under the laws existing as of the date of termination of the system. However, any member who has not fulfilled the requirements for length of service because of a termination of the system shall be entitled to compensation as of the date that the member would otherwise be eligible. That compensation shall be computed on the basis of the time that he or she was actually a member of the system and the compensation that he or she actually earned during the time that he or she was a member, in the manner provided by this chapter.
If there is a deficit in the availability of funds for payment due under the provisions of the system, an appropriation shall be made by the Legislature that is sufficient for the payment thereof, as an obligation of the State of Mississippi.
(3) Notwithstanding any provisions of this chapter to the contrary, the maximum annual retirement allowance attributable to the employer contributions payable by the system to a member shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code and any regulations issued thereunder as applicable to governmental plans as that term is defined under Section 414(d) of the Internal Revenue Code.
(4) Notwithstanding any other provision of this system, the maximum compensation that can be considered for all system purposes shall not be greater than that allowed under Section 401(a)(17) of the Internal Revenue Code.
(5) Notwithstanding any other provision of this system, all distributions from this system shall conform to the regulations issued under Section 401(a)(9) of the Internal Revenue Code, applicable to governmental plans, as defined in Section 414(d) of the Internal Revenue Code, including the incidental death benefit provisions of Section 401(a)(9)(G) of the Internal Revenue Code. Further, those regulations shall override any system provision that is inconsistent with Section 401(a)(9) of the Internal Revenue Code.
(6) The board is authorized to provide by rule or regulation for the payment of benefits as provided under this act to members or beneficiaries of the system at a time and under circumstances not otherwise provided for in this act to the extent that the payment is required to maintain the system as a qualified retirement plan for purposes of federal income tax laws.
(7) The actuarial assumptions used to convert a retirement allowance from the normal form of payment to an optional form of payment shall be an appendix to this chapter and subject to approval by the board based upon certification by the actuary.
SECTION 21. Sections 1 through 20 of this act shall be codified as a separate chapter in Title 25, Mississippi Code of 1972.
SECTION 22. This act shall take effect and be in force from and after July 1, 2026.
