MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Local and Private Legislation; Appropriations

By: Representative Ryan

AN ACT TO AMEND CHAPTER 435, LOCAL AND PRIVATE LAWS OF 1944, AS LAST AMENDED BY CHAPTER 988, LOCAL AND PRIVATE LAWS OF 1998, TO DELETE THE MAXIMUM AMOUNT OF RETIREMENT BENEFITS THAT ARE PAYABLE TO RETIREES UNDER THE GENERAL MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF BILOXI; AND FOR RELATED PURPOSES.

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

SECTION 1. Chapter 435, Local and Private Laws of 1944, as amended by Chapter 573, Local and Private Laws of 1954, as amended by Chapter 96, Local and Private Laws of the Extraordinary Session of 1954, as amended by Chapter 945, Local and Private Laws of 1966, as amended by Chapter 897, Local and Private Laws of 1972, as amended by Chapter 975, Local and Private Laws of 1974, as amended by Chapter 996, Local and Private Laws of 1975, as amended by Chapter 966, Local and Private Laws of 1979, as amended by Chapter 816, Local and Private Laws of 1982, as amended by Section 1 of Chapter 931, Local and Private Laws of 1993, as amended by Chapter 978, Local and Private Laws of 1995, as amended by Chapter 989, Local and Private Laws of 1996, as amended by Chapter 988, Local and Private Laws of 1998, is amended as follows:

Section 1. As used in this act:

(a) "City" means the City of Biloxi, Mississippi.

(b) "Board" means the Board of Trustees of the Public Employees' Retirement System.

(c) "Retirement system" means the General Municipal Employees' Retirement System of the city.

(d) "Member" means a member of the retirement system.

The words and phrases defined in Section 21-29-3, Mississippi Code of 1972, when used in this act, shall have the meanings ascribed to them in that section unless a different meaning is plainly required by the context.

Section 2. The retirement system shall operate and be administered pursuant to provisions of the general law governing general municipal employees' retirement systems, being Section 21-29-1 et seq., Mississippi Code of 1972, except that where provisions of this act conflict with the general law, this act shall prevail.

Section 3. Upon the retirement from service of any member, the board shall order the payment of a monthly sum to such retired member in an amount equal to fifty percent (50%) of the average monthly salary or compensation received by such member in the six-month period next before the filing of application for such retirement or the minimum monthly benefits authorized in accordance with Section 7, whichever is greater, and such payments shall thereafter be made to such retired member for life.

Section 4. Present members who have five (5) years or more of service may be entitled to draw benefits upon the completion of twenty (20) years' active service. Members having less than five (5) years' service at this time, although completing twenty (20) years' service, cannot draw retirement benefits until they reach the age of fifty-five (55) years.

Section 5. A member with not less than ten (10) years' service who may be discharged or may voluntarily resign may waive the return of his contributions and at a time prior to April 18, 1974, elect in lieu thereof to receive an annual pension, beginning at the age of fifty-five (55) years, equal to one-fortieth (1/40) of his average final compensation multiplied by the number of years of service; provided, however, in no case shall such pension be more than fifty percent (50%) of the average final compensation of such member. From and after April 18, 1974, the option to elect to receive an annual pension under the provision of this paragraph shall not be available.

For any person who resigned from the employment of the city before July 9, 1983, and to whom the Disability and Relief Fund Board for the city approved the payment of forty percent (40%) of such person's average monthly compensation upon such person reaching the age of fifty-five (55) years, the board may pay the amount of such agreed upon retirement benefits. Such benefits shall be retroactive and will be payable back to the date the person reached the age of fifty-five (55) years. Before the board may make any payments under this paragraph, the board must receive from the city funds necessary to make the payments authorized under this paragraph.

Upon retirement from service on disability, the member shall receive a minimum payment equal to the greatest of the following: One Hundred Dollars ($100.00) per month; one-fortieth (1/40) of the final annual compensation multiplied by the number of years of actual service; or the minimum monthly benefits authorized pursuant to Section 7.

Section 6. (1) Subject to the provisions of Section 8, the governing authorities of the city, in their discretion, are authorized to take any of the following actions:

(a) Establish an additional payment for each retired member and beneficiary of the retirement system who is now or hereafter entitled to receive benefits under any provision of Section 21-29-1 et seq., Mississippi Code of 1972, or Sections 3 through 5. The amount of the additional payment shall be equal to the annual percentage change in the Consumer Price Index set by the United States Government, not to exceed three percent (3%) per annum, and shall be computed based upon the amount of the benefits received by the members and beneficiaries in the fiscal year of the retirement system before the effective date of the resolution of the governing authorities of the city establishing the additional payments.

(b) Provide that the additional payments authorized in paragraph (a) shall be either automatically made each year, made for a specified number of years, or authorized on an annual basis by the governing authorities of the city.

(c) Provide that the additional payments authorized in paragraph (a) shall cease or shall not be made for any subsequent fiscal year, regardless of whether a prior action of the governing authorities of the city called for the payments to be made automatically or without additional authorization by the governing authorities.

(d) Provide that if the governing authorities of the city choose to reinstate the additional payments authorized in paragraph (a) after ceasing them for a period of time, the percentage increase shall not be compounded during the interim period unless specifically directed by the governing authorities.

(e) Provide that the additional payments authorized by paragraph (a) may be based upon a percentage specified by the governing authorities of the city, regardless of the maximum percentage allowed in paragraph (a), if the governing authorities also transfer sufficient monies to the Public Employees' Retirement System to fund the increase at the specified percentage.

(f) Provide that the additional payments authorized in paragraph (a) shall automatically cease if continuing the additional payments could make the retirement system actuarially unsound; however, before ceasing the payments, the Board of Trustees of the Public Employees' Retirement System shall notify the governing authorities of the city and give them the opportunity to transfer sufficient funds, if the governing authorities choose to do so, to make the additional payments while keeping the retirement system actuarially sound.

(g) Use funds from any available source to supplement the retirement system to make the system actuarially sound, and transfer those funds to the Board of Trustees of the Public Employees' Retirement System for that purpose.

(2) After the governing authorities of the city have adopted a resolution to establish the additional payments authorized under subsection (1) of this section, and after the board has received the most recent actuarial study of the retirement system and the certified statement from the actuarial firm, pursuant to Section 8, that the retirement system will remain actuarially sound if the additional payments are made, then the board shall make the additional payments to the persons authorized and entitled to receive the payments.

(3) Persons eligible to receive the payments authorized under this section shall receive such payments in one (1) additional payment, except that such person may elect by an irrevocable agreement on a form prescribed by the board to receive such payments in not less than equal monthly installments not to exceed six (6) months during the remaining months of the current fiscal year. In the event of death of a person or a beneficiary thereof receiving monthly benefits, any remaining amounts shall be paid in a lump sum to the estate of the retired member or beneficiary.

Section 7. (1) Subject to the provisions of Section 8, the governing authorities of the city are authorized, in their discretion, to provide for the payment of minimum monthly benefits in any amount determined by the governing authorities to all persons now or hereafter entitled to receive benefits under any provision of Section 21-29-1 et seq., Mississippi Code of 1972, or Sections 3 through 5.

(2) After the governing authorities of the city have adopted a resolution to establish the minimum monthly benefits authorized under subsection (1) of this section, specifying the amount of the minimum monthly benefits in the resolution, and after the board has received the most recent actuarial study of the retirement system and the certified statement from the actuarial firm, pursuant to Section 8, that the retirement system will remain actuarially sound if the minimum monthly benefits are paid, then the board shall pay those benefits to the persons authorized and entitled to receive the payments.

Section 8. Payment of the additional payments authorized under Section 6 or the minimum monthly benefits authorized under Section 7, or both, shall not be established unless the retirement system is actuarially sound, as shown by the most recent actuarial study required by Section 21-29-27, Mississippi Code of 1972, and the retirement system will remain actuarially sound if the additional payments authorized under Section 6 or the minimum monthly benefits authorized under Section 7, or both, are made, as shown by a certified statement from the actuarial firm that prepared the most recent actuarial study.

Section 9. (1) Subject to the provisions of subsection (2) of this section, the governing authorities of the city, in their discretion, are authorized to provide that members of the retirement system under the provisions of Section 21-29-1 et seq., Mississippi Code of 1972, and Sections 3 through 5 who retire after April 7, 1995, shall receive creditable service in the retirement system at the time of retirement for lawfully credited unused, uncompensated annual leave and sick leave earned under the vacation and sick leave policies of the city, in amounts equal to the amounts authorized for members of the Public Employees' Retirement System.

(2) Creditable service for unused, uncompensated leave as authorized under subsection (1) of this section shall not be provided unless the retirement system is actuarially sound, as shown by the most recent actuarial study required by Section 21-29-27, Mississippi Code of 1972, and the retirement system will remain actuarially sound if creditable service for unused, uncompensated leave as authorized under subsection (1) of this section is provided, as shown by a certified statement from the actuarial firm that prepared the most recent actuarial study.

(3) After the governing authorities of the city have adopted a resolution to provide creditable service for unused, uncompensated leave as authorized under subsection (1) of this section, and after the board has received the most recent actuarial study of the retirement system and the certified statement from the actuarial firm that the retirement system will remain actuarially sound if creditable service for unused, uncompensated leave is provided, then the board shall provide creditable service for unused, uncompensated leave to members of the retirement system at the time of retirement in accordance with subsection (1) of this section, and such creditable service shall be used in calculating the members' retirement benefits under Section 21-29-1 et seq., Mississippi Code of 1972, and Sections 3 through 5.

(4) Except to limit creditable service reported to the retirement system for the purpose of computing a member's retirement benefits provided under Section 21-29-1 et seq., Mississippi Code of 1972, and Sections 3 through 5, nothing in this section shall limit or otherwise restrict the power of the governing authorities of the city to adopt such vacation and sick leave policies as they deem necessary.

Section 10. (1) Subject to the provisions of subsection (2) of this section, the governing authorities of the city, in their discretion, are authorized to provide that for the purpose of computing the retirement benefits of members of the retirement system under the provisions of Section 21-29-1 et seq., Mississippi Code of 1972, and Sections 3 through 5 who retire after April 11, 1996, earned compensation may include all or a portion of any payment made to a member upon termination of employment for up to thirty (30) days of unused, accumulated personal leave.

(2) The inclusion within earned compensation of those payments as provided in subsection (1) of this section shall not be authorized by the governing authorities unless the retirement system is actuarially sound, as shown by the most recent actuarial study required by Section 21-29-27, Mississippi Code of 1972, and the retirement system will remain actuarially sound if the inclusion of such payments is authorized, as shown by a certified statement from the actuarial firm that prepared the most recent actuarial study.

(3) After the governing authorities of the city have adopted a resolution to include within earned compensation payments as provided under subsection (1) of this section, and after the board has received the most recent actuarial study of the retirement system and the certified statement from the actuarial firm that the retirement system will remain actuarially sound if the inclusion of such payments is authorized, then the board may include such payments within the earned compensation of members at the time of retirement, in accordance with subsection (1) of this section, when calculating the members' retirement benefits under Section 21-29-1 et seq., Mississippi Code of 1972, and Sections 3 through 5.

(4) Nothing in this section shall limit or otherwise restrict the power of the governing authorities of the city to adopt such vacation and sick leave policies as they deem necessary.

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