MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Appropriations

By: Representatives Perry, McCoy

AN ACT TO AMEND SECTION 25-11-112, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MEMBERS WHO ARE RECEIVING A RETIREMENT ALLOWANCE FOR SERVICE OR DISABILITY, OR BENEFICIARIES THEREOF, ON JULY 1, 1998, WHO HAVE BEEN RETIRED FOR AT LEAST ONE FULL FISCAL YEAR, SHALL RECEIVE AN ADDITIONAL ANNUAL PAYMENT EQUAL TO THE GREATER OF THREE PERCENT TIMES THE NUMBER OF FULL FISCAL YEARS RETIRED TIMES THE ANNUAL RETIREMENT ALLOWANCE, OR THE ANNUAL RETIREMENT ALLOWANCE COMPOUNDED ANNUALLY BY TWO AND ONE-HALF PERCENT BEGINNING THE FIRST JULY 1 FOLLOWING THE FIRST FULL FISCAL YEAR OF RETIREMENT; TO PROVIDE THAT ON JULY 1, 1999, MEMBERS RECEIVING A RETIREMENT ALLOWANCE FOR SERVICE OR DISABILITY, OR BENEFICIARIES THEREOF, SHALL RECEIVE AN ADDITIONAL ANNUAL PAYMENT EQUAL TO THREE PERCENT OF THE ANNUAL RETIREMENT ALLOWANCE FOR EACH FULL FISCAL YEAR OF RETIREMENT BEGINNING JULY 1, 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) On July 1, 1998, and each July 1 thereafter, members who are receiving a retirement allowance for service or disability, or beneficiaries thereof, who have been retired for at least one (1) full fiscal year, shall be entitled to receive an additional annual payment which is the greater of:

(a) The product of the number of full fiscal years in retirement times three percent (3%) times the annual retirement allowance; or

(b) The annual retirement allowance compounded annually by two and one-half percent (2-1/2%) beginning the first July 1 following the first full fiscal year in retirement.

(2) In addition to the amounts provided for in subsection (1) of this section, on July 1, 1999, and each July 1 thereafter, members who are receiving a retirement allowance for service or disability, or beneficiaries thereof, who have been retired for at least one (1) full fiscal year, shall receive an additional annual payment equal to three percent (3%) of the annual retirement allowance for each full fiscal year in retirement beginning July 1, 1998.

(3) Any person who retires on or after July 1, 1998, will receive the additional payments in twelve (12) equal monthly installments unless the member elects to receive the additional payment in one (1) lump sum payment. The election shall be made on a form prescribed by the board of trustees and filed in the office of the Public Employees' Retirement System no later than thirty (30) days before the July 1 of the first fiscal year in which the member becomes eligible for the payments to begin. Payment of the installments shall not extend beyond the month in which a retirement allowance is due and payable.

Any person who retired before July 1, 1998, may continue to receive the additional annual payment in a lump sum unless revoked under the provisions of subsection (4) of this section. To receive the one (1) lump sum payment, a retired member must be receiving a retirement allowance on December 1 of the fiscal year in which the lump sum payment is due.

(4) Any retired member, or beneficiary thereof, who is receiving the additional payment in one (1) lump sum may revoke that election and begin receiving the additional payment in twelve (12) equal installments beginning July 1 following the revocation. This election must be on a form prescribed by the board of trustees and filed in the office of the Public Employees' Retirement System at least thirty (30) days before July 1 of the fiscal year in which the payment begins. This irrevocable election shall be binding on the member and subsequent beneficiaries.

(5) The benefits 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 the last retirement if there is more than one (1) retirement date. Any person who subsequently retires again under the same option naming the same beneficiary(s) as elected when he or she previously retired shall receive no less than the retirement allowance plus the additional annual payment provided for in subsections (1) and (2) of this section, when the previous retirement allowance was terminated. Reductions authorized under Option 4-C at age sixty-two (62) shall apply.

(6) The additional annual payments provided for in this section are for the fiscal year in which they are paid.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.