2004 Regular Session
By: Representative Brown
AN ACT TO AMEND SECTION 25-14-5, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE STATE AND ITS POLITICAL SUBDIVISIONS TO MAKE CONTRIBUTIONS TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM'S DEFERRED COMPENSATION PLAN ON BEHALF OF PARTICIPATING MEMBERS; TO AMEND SECTION 25-14-7, MISSISSIPPI CODE OF 1972, TO MAKE IT CLEAR THAT THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM'S DEFERRED COMPENSATION PROGRAM SHALL BE OPERATED IN ACCORDANCE WITH THE GUIDELINES ESTABLISHED BY THE INTERNAL REVENUE SERVICE AS REFLECTED IN THE PLAN DOCUMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 25-14-5, Mississippi Code of 1972, is amended as follows:
25-14-5. The State of Mississippi, or any state agency, county, municipality or other political subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee's income, and may make contributions to the plan on behalf of participating members. Those funds may subsequently be used to purchase a fixed or variable life insurance or annuity contract for the purpose of protecting its obligation to the deferred compensation program for the employee from any life underwriter duly licensed by this state who represents an insurance company licensed to contract fixed and variable annuities and fixed or variable life insurance business in this state, or to purchase any investments authorized for purchase by the Public Employees' Retirement System of Mississippi under Section 25-11-121, or to invest those 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 that purpose. However, in the administration of this plan, the Public Employees' Retirement System of Mississippi may adopt such regulations as are reasonable and necessary to assure the orderly functioning of the plan, but those regulations shall not unreasonably restrict all licensed life underwriters and insurance companies described in this section from concurrently participating in providing contracts authorized under this section. Anything in any other law to the contrary notwithstanding, 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.
SECTION 2. Section 25-14-7, Mississippi Code of 1972, is amended as follows:
25-14-7. The administration of the deferred compensation program shall be under the direction of the Public Employees' Retirement System of Mississippi or the appropriate officer designated by a county, municipality, or other political subdivision. The deferred compensation program shall be operated in accordance with the guidelines established by the Internal Revenue Service 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 administrator of a deferred compensation program may contract with a private corporation or institution for providing consolidated billing and other administrative services if deemed necessary by the administrator.
The board of trustees may levy 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 services of auditors, consultants, money managers and third-party administrators.
SECTION 3. This act shall take effect and be in force from and after July 1, 2004.