MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Appropriations

By: Representative Davis

AN ACT TO REQUIRE THE BOARD OF DIRECTORS OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO RECOMMEND TO THE LEGISLATURE A PROGRAM THAT ALLOWS MEMBERS OF THE SYSTEM WHO ARE ELIGIBLE FOR RETIREMENT TO CONTINUE WORKING AND DRAWING A SALARY IN PUBLIC EMPLOYMENT WHILE THEIR RETIREMENT ALLOWANCE IS PAID INTO AN INDIVIDUAL ACCOUNT; AND FOR RELATED PURPOSES.

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

SECTION 1. Before August 31, 1999, the Board of Trustees of the Public Employees' Retirement System of Mississippi shall recommend to the Legislature a program that allows members of the system who are eligible to receive a retirement allowance, in lieu of terminating employment and accepting a retirement allowance, to continue working and earning their regular salary in public employment while an amount equal to the monthly retirement allowance to which the members are entitled is paid into a member's individual account. The program shall be modeled after the Deferred Retirement Option Plan (DROP) (La. Rev. Stat. Ann. Section 11:447 et seq., as amended) administered by the Louisiana State Employees' Retirement System; however, the board shall recommend revisions to the Louisiana Deferred Retirement Option Plan which are necessary for the adaptation of the program to the Public Employees' Retirement System of Mississippi and which guarantee no negative effect on the system's fiscal integrity or on the status of the system under the Internal Revenue Code. The recommendations of the board shall be submitted to the Legislature in a written report, which shall include a detailed description of the recommended program, a proposal for legislation necessary for the implementation of the program and any other information deemed relevant by the board relating to such program.

SECTION 2. This act shall take effect and be in force from and after its passage.