MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Appropriations

By: Representative Perry

AN ACT TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 25-14-17, MISSISSIPPI CODE OF 1972, TO REQUIRE EMPLOYERS OF EMPLOYEES OF STATE AGENCIES, INSTITUTIONS OF HIGHER LEARNING, COMMUNITY AND JUNIOR COLLEGES AND PUBLIC SCHOOLS TO CONTRIBUTE MATCHING FUNDS OF TWENTY-FIVE DOLLARS PER MONTH FOR QUALIFIED PARTICIPANTS IN THE DEFERRED COMPENSATION PROGRAM, TO ENCOURAGE EMPLOYEE SAVINGS FOR RETIREMENT; TO AUTHORIZE OTHER POLITICAL SUBDIVISIONS TO PARTICIPATE IN THE MATCHING CONTRIBUTION PROGRAM ON THE SAME TERMS AS THE STATE; TO PROVIDE THAT THE BOARD OF TRUSTEES OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM SHALL ADMINISTER AND INVEST THE MATCHING EMPLOYER CONTRIBUTIONS; TO PROVIDE THAT THE MATCHING EMPLOYER CONTRIBUTIONS WILL NOT BE CONSIDERED A PART OF AN EMPLOYEE'S COMPENSATION; AND FOR RELATED PURPOSES.

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

SECTION 1. The following shall be codified as Section 25-14-17, Mississippi Code of 1972:

25-14-17. (1) The employer of each employee of the state agency, institution of higher learning, community or junior college, or public school shall contribute matching funds of Twenty-five Dollars ($25.00) per month for each qualified participant in the deferred compensation program. The purpose of those contributions is to encourage and enhance employee savings for retirement. Any other political subdivision that has previously executed or hereafter executes a joinder agreement to the Deferred Compensation Plan and Trust for Public Employees of the State of Mississippi and its Political Subdivisions may amend its joinder agreement to provide that it will participate in the matching contribution program on the same terms as the state, which shall thereafter be applicable to all qualified participants of that political subdivision. The contributions shall be made on a monthly basis in accordance with the plan document and rules and regulations as adopted by the Board of Trustees of the Public Employees' Retirement System.

(2) The Board of Trustees of the Public Employees' Retirement System shall determine whether the matching contribution program shall be operated as a part of the existing Deferred Compensation Plan and Trust under Section 457 of the Internal Revenue Code or be qualified under Section 401(a) of the Internal Revenue Code. In either case, matching employer funds so contributed shall be administered and invested in the same manner as the Deferred Compensation Plan and Trust under Sections 25-14-1 et seq. The board of trustees shall be responsible for establishing rules, regulations and plan documents as necessary for the administration of the contributions.

(3) For purposes of this section, "qualified participant" means an employee of the State of Mississippi or any of its political subdivisions, excluding independent contractors, who is making continuous deferrals of at least Twenty-five Dollars ($25.00) per month to the deferred compensation program.

(4) Except to the extent necessary to comply with federal law, the matching employer funds will not be considered part of an employee's compensation for purposes of any other employee retirement, pension, or benefit program on which additional contributions are due, nor shall such amounts be included for purposes of computation of any taxes withheld on behalf of any employee.

SECTION 2. This act shall take effect and be in force from and after July 1, 2000.