State Treasurer administers a payroll-based retirement savings program

The State Treasurer administers a retirement savings program that participating employers may offer through payroll deductions. Eligible participants must be at least 18, have compensation tied to Mississippi, and choose to participate. Government employees and employees whose employers maintain certain tax-favored retirement plans are excluded. Employers choose whether to participate, and eligible workers choose whether to contribute. Employers may automatically enroll workers if they can opt out. The standard account is a Roth IRA. The Treasurer may add a traditional IRA option; participants can choose other available investments and contribution rates, within federal IRA limits. The Legislature must appropriate money before the Treasurer can spend from the administrative fund. The state may cover start-up costs until the fund has enough money. Contributions must be available by August 1, 2028. Any phased rollout must be substantially complete by July 1, 2028.

Mississippi deferred compensation plans may include Roth accounts and other after-tax contribution options allowed by federal tax law. This applies to participants in Mississippi deferred compensation plans covered by this section. The plan document must permit the option. Employers count a participant’s after-tax contribution as income when the participant would otherwise have received that pay. This section takes effect July 1, 2026.

PERS uses an eight-year pay period to calculate average compensation and sets retirement eligibility for members who join on or after March 1, 2026. These rules apply to PERS members who join on or after March 1, 2026, including certain members who return after receiving a refund. Average compensation is the higher of the average of the eight highest consecutive years or the last 96 consecutive months. A member may qualify at age 62 with at least eight years of membership service, or at any age with at least 30 years of creditable service. Benefits can be reduced based on age or service. Sections 17 and 18 take effect March 1, 2026.

An employer may hire some PERS retirees under a written agreement and must pay both required contributions on the retiree’s pay. This option applies to PERS retirees returning to covered work under the stated limits. The retiree must be separated from work for at least 30 days and may earn no more than 80% of the position’s salary under this option. The employer and retiree must sign and provide the agreement to PERS. The retiree gains no added retirement benefits under this option. The option excludes elected officials, K-12 superintendents, and university or college administrators. It also excludes retirees whose allowance has an actuarial reduction, except for reductions tied to specified optional benefits. The 30-day separation period applies before this return-to-work option. The option is repealed July 1, 2036.

A public entity with an approved PERS plan that is terminated must pay PERS its share of the net pension liability in a lump sum before termination. This applies to a political subdivision or state instrumentality whose approved PERS plan is terminated. The amount is measured as of June 30, 2026, or the termination date, whichever amount is greater, and the payment must follow board regulations. The liability is measured as of June 30, 2026, or the termination date, whichever amount is greater.