MISSISSIPPI LEGISLATURE

2025 Regular Session

To: Rules

By: Senator(s) Sparks

Senate Bill 2449

(As Passed the Senate)

AN ACT TO AMEND SECTION 25-11-401, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MEMBERSHIP IN THE OPTIONAL RETIREMENT PROGRAM FOR EMPLOYEES OF THE STATE INSTITUTIONS OF HIGHER LEARNING SHALL APPLY ONLY TO THOSE EMPLOYEES WHO ASSUMED THEIR POSITIONS BEFORE MARCH 1, 2026; TO AMEND SECTION 25-11-409, MISSISSIPPI CODE OF 1972, TO CONFORM; TO AMEND SECTION 25-11-411, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT EACH PARTICIPANT IN THE OPTIONAL RETIREMENT PROGRAM SHALL CONTRIBUTE MONTHLY TO THE OPTIONAL RETIREMENT PROGRAM 9% OF THE PARTICIPANT'S TOTAL EARNED COMPENSATION; TO REALLOCATE THE EMPLOYER'S CONTRIBUTION TO THE OPTIONAL RETIREMENT PROGRAM; TO PROVIDE THAT AN AMOUNT EQUAL TO 9% OF THE PARTICIPANT'S TOTAL EARNED COMPENSATION SHALL BE APPLIED TO THE PARTICIPANT'S CONTRACTS OR ACCOUNTS; TO PROVIDE THAT UP TO 0.2% OF THE PARTICIPANT'S TOTAL EARNED COMPENSATION SHALL BE APPLIED TO THE EXPENSE FUND OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO DEFRAY THE COST OF ADMINISTERING THE OPTIONAL RETIREMENT PROGRAM; TO PROVIDE THAT THE REMAINDER SHALL BE REMITTED TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR APPLICATION TO THE ACCRUED LIABILITY CONTRIBUTION FUND; TO REPEAL SECTION 25-11-415, MISSISSIPPI CODE OF 1972, WHICH PROVIDES THAT THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM MAY DEDUCT NOT MORE THAN 2% OF ALL EMPLOYERS' CONTRIBUTIONS AND TRANSFER SUCH DEDUCTIONS TO THE EXPENSE FUND OF THE SYSTEM TO DEFRAY THE COST OF ADMINISTERING THE OPTIONAL RETIREMENT PROGRAM; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 25-11-401, Mississippi Code of 1972, is amended as follows:

     25-11-401.  There is established an optional retirement program for employees of the state institutions of higher learning included in Section 37-101-1 * * *, Mississippi Code of 1972, who are appointed or employed after July 1, 1990, and are employed before March 1, 2026.  To be eligible to participate in the optional retirement program, a newly appointed employee must:

          (a)  (i)  Hold a teaching or administrative faculty position, or

              (ii)  Hold a position as an intern or resident in training at the University Medical Center or the College of Veterinary Medicine at Mississippi State University under a teaching program at such institutions; and

          (b)  Be eligible for membership in the Public Employees' Retirement System of Mississippi.

     SECTION 2.  Section 25-11-409, Mississippi Code of 1972, is amended as follows:

     25-11-409.  Eligible employees initially employed on or after July 1, 1990, and before March 1, 2026, shall elect to participate in the optional retirement program within thirty (30) days after (i) entry into state service, or (ii) the effective date of the optional retirement program, whichever is later.  The election must be made in writing and filed with the board of trustees and will be effective as of the date of employment.  If an eligible employee fails to timely make the election provided in this section, he shall become a member of the Public Employees' Retirement System of Mississippi in accordance with Article 3 of this chapter.

     SECTION 3.  Section 25-11-411, Mississippi Code of 1972, is amended as follows:

     25-11-411.  (1)  Each participant shall contribute monthly to the optional retirement program * * * the same amount that he or she would be required to contribute to the Public Employees' Retirement System of Mississippi if he or she were a member of that retirement system nine percent (9%) of the participant's total earned compensation as defined in Section 25-11-103.  Participant contributions may be made by a reduction in salary in accordance with the provisions of Section 403(b) of the United States Internal Revenue Code or any amendment thereto, or in accordance with Section 25-11-124, as may be appropriate under the determination made in accordance with Section 25-11-421.  The entirety of each participant's contribution shall be remitted to the appropriate company or companies for application to the participant's contracts or accounts, or both.  Each employer of a participant in the optional retirement program shall contribute on behalf of each participant in the optional retirement program the same amount the employer would be required to contribute to the Public Employees' Retirement System of Mississippi if the participant were a member of the retirement system.  The employer's contribution shall be remitted as follows:

          (a)  An amount equal to * * * seven and one‑fourth percent (7‑1/4%) nine percent (9%) of the participant's total earned compensation as defined in Section 25-11-103 shall be remitted to the appropriate company or companies for application to the participant's contracts or accounts, or both;

          (b)  An amount * * * equal up to * * * two and one‑half percent (2‑1/2%) two-tenths percent (0.2%) of the participant's total earned compensation as defined in Section 25-11-103 shall be remitted to the Public Employees' Retirement System of Mississippi * * * for application to the accrued liability contribution fund for application to the system's expense fund to defray the cost of administering the optional retirement program created by this article;

          (c)  The remainder * * *, if any, shall be remitted to the * * * appropriate company or companies for application to the participant's contracts or accounts, or both Public Employees' Retirement System of Mississippi for application to the accrued liability contribution fund.

     If the employer's contribution level is decreased below nine and three-fourths percent (9-3/4%) of the employee's total earned compensation, the remittance provided by paragraph ( * * *bc) of this section shall be reduced accordingly.  There shall be no reduction in the remittance provided by paragraph (a) of this section until such time, if any, that the employer's contribution level is less than * * * seven and one‑fourth percent (7‑1/4%) nine percent (9%) of the participant's total earned compensation.  If the accrued liability contribution is reduced or discontinued under Section 25-11-123, the amount of the reduction, or the entirety of the employer's contribution, in case of discontinuance, shall be remitted to the appropriate company or companies for application to the participant's contracts or accounts, or both.  Any remittance required to be made by the employer to the Public Employees' Retirement System of Mississippi shall be made at the times the employer remits contributions for members of the retirement system.

(2)  The employer may, in its discretion, make additional contributions to the participant's contracts or accounts up to the maximum amount allowable under federal law.

     SECTION 4.  Section 25-11-415, Mississippi Code of 1972, which provides that the Public Employees' Retirement System of Mississippi may deduct not more than two percent (2%) of all employers' contributions and transfer such deductions to the expense fund of the Public Employees' Retirement System to defray the cost of administering the optional retirement program for employees of the state institutions of higher learning, is repealed.

     SECTION 5.  This act shall take effect and be in force from and after July 1, 2025.

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