1998 Regular Session
By: Senator(s) Huggins
Senate Bill 3104
AN ACT TO AMEND SECTION 25-11-112, MISSISSIPPI CODE OF 1972, TO REMOVE THE USE OF THE CONSUMER PRICE INDEX IN THE CALCULATION OF ADDITIONAL ANNUAL PAYMENTS TO RETIREES UNDER THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM; TO PROVIDE AN AD HOC BENEFIT INCREASE TO ALL RETIREES RECEIVING A RETIREMENT ALLOWANCE FOR THE MONTH OF JUNE 1998; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 25-11-112, Mississippi Code of 1972, is amended as follows:
25-11-112. (1) Persons who on December 1 of each year, or July 1 of each year as provided for in subsection (6) of this section, are receiving a retirement allowance for service or disability retirement, or beneficiaries thereof, shall receive in one (1) additional payment an amount equal to a cumulative percentage of * * * two and one-half percent (2-1/2%) * * * for each full fiscal year of retirement * * * times the amount of the annual retirement allowance. The cumulative percentage provided in this subsection for any particular year shall not be less than the cumulative percentage provided for the previous year.
(2) Persons who on December 1 of each year are receiving a retirement allowance for service or disability retirement, or beneficiaries thereof, may receive, in addition to the cumulative percentage described in subsection (1) of this section, a payment as determined by the board, calculated in increments of one-quarter of one percent (1/4 of 1%), not to exceed one and one-half percent (1-1/2%) of the annual retirement allowance for each full fiscal year of retirement, provided that any such payment shall be contingent upon the reserve for annuities in force for retired members and beneficiaries providing sufficient investment gains in excess of the accrued actuarial liabilities for the previous fiscal year as certified by the actuary and determined by the board.
(3) The percentages of this section shall be based on each full fiscal year that the retired member or beneficiary has actually drawn retirement payments from the date of retirement, or the date of last retirement if there is more than one (1) retirement date.
(4) Each retired member, or beneficiary thereof, who has been retired at least one (1) full fiscal year and who receives a retirement allowance for the month of June 1998, shall receive an ad hoc increase * * * effective July 1, 1998, in an amount equal to Three Dollars and Fifty Cents ($3.50) per month for each full fiscal year the member has actually drawn retirement payments from the date of retirement or the date of last retirement if there is more than one (1) retirement date, plus an amount equal to One Dollar ($1.00) per month for each full fiscal year of creditable service and proportionately for each quarter of a year of creditable service on which benefits are being paid. In the event of multiple beneficiaries receiving a retirement allowance from the account of a deceased member, the ad hoc increase shall be divided proportionately.
(5) Persons eligible to receive the payments provided in subsections (1) and (2) of this section shall receive such payments in one (1) additional payment, except that such person may elect by an irrevocable agreement on a form prescribed by the board of trustees to receive such payments in not less than equal monthly installments not to exceed six (6) months during the remaining months of the current fiscal year. In the event of death of a person or a beneficiary thereof receiving monthly benefits, any remaining amounts shall be paid in a lump sum to the designated beneficiary.
(6) Retired persons or beneficiaries thereof, who on July 1, 1994, or July 1 of any fiscal year thereafter, 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 prior to July 1, of the appropriate year, to begin receiving the payments provided for in subsection (1) of this section in twelve (12) equal installments beginning July 1, 1994, or July 1 of any fiscal year thereafter. Such irrevocable agreement shall be binding on the member and subsequent beneficiaries. The cumulative percentage provided in subsection (1) of this section and paid in twelve (12) equal installments for any particular year shall not be less than the cumulative percentage provided for the previous year. However, payment of such installments shall not extend beyond the month in which a retirement allowance is due and payable. Any additional amounts approved by the board under subsection (2) of this section shall be paid in one (1) lump sum payment to retirees and beneficiaries in accordance with subsection (2) of this section.
SECTION 2. This act shall take effect and be in force from and after July 1, 1998.