MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Dearing

AN ACT TO AMEND SECTION 25-11-112, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PERSONS WHO ARE RECEIVING A RETIREMENT BENEFIT ON JULY 1 OF EACH YEAR, RATHER THAN DECEMBER 1 OF EACH YEAR, SHALL RECEIVE AN ADDITIONAL ANNUAL RETIREMENT PAYMENT; TO PROVIDE THAT IN THE EVENT OF THE DEATH OF A RETIRED MEMBER, OR BENEFICIARY THEREOF, PRIOR TO RECEIVING THE ADDITIONAL PAYMENT, THE ADDITIONAL PAYMENT SHALL BE PAID TO THE NAMED BENEFICIARY OR TO THE ESTATE OF THE RETIRED MEMBER IF NO BENEFICIARY IS NAMED; 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) Persons who on July 1 of each year, or July 1 of each year as provided for in subsection (6) of this section, are receiving a retirement allowance for service or disability retirement, or beneficiaries thereof, shall receive in one (1) additional payment an amount equal to a cumulative percentage of (a) two and one-half percent (2-1/2%) of the annual retirement allowance for each full fiscal year of retirement through June 30, 1984, (b) for each full fiscal year of retirement after June 30, 1984, and through June 30, 1993, the annual percentage increase in the Consumer Price Index set by the United States government in each fiscal year, not exceeding two and one-half percent (2-1/2%) for any fiscal year, and (c) for each full fiscal year of retirement after June 30, 1993, the annual percentage increase in the Consumer Price Index set by the United States government for the calendar year ending during each fiscal year, not exceeding two and one-half percent (2-1/2%) for any fiscal year, times the amount of the annual retirement allowance. The cumulative percentage provided in this subsection for any particular year shall not be less than the cumulative percentage provided for the previous year. In the event of the death of a retired member, or beneficiary thereof, prior to receiving the additional payment provided in this subsection, the additional payment shall be paid to the named beneficiary or the estate of the retired member if no beneficiary is named.

(2) Persons who on July 1 of each year are receiving a retirement allowance for service or disability retirement, or beneficiaries thereof, may receive, in addition to the cumulative percentage described in subsection (1) of this section, a payment as determined by the board, calculated in increments of one-quarter of one percent (1/4 of 1%), not to exceed one and one-half percent (1-1/2%) of the annual retirement allowance for each full fiscal year of retirement, provided that any such payment shall be contingent upon the reserve for annuities in force for retired members and beneficiaries providing sufficient investment gains in excess of the accrued actuarial liabilities for the previous fiscal year as certified by the actuary and determined by the board. In the event of the death of a retired member, or beneficiary thereof, prior to receiving the additional payment provided in this subsection, the additional payment shall be paid to the named beneficiary or the estate of the retired member if no beneficiary is named.

(3) The percentages 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 last retirement if there is more than one (1) retirement date.

(4) Each retired member, or beneficiary thereof, who receives an annual retirement allowance based on the average compensation for a period of five (5) successive or joined years and who receives a retirement allowance for the month of June, 1985, shall receive an ad hoc increase of three percent (3%) in such retirement allowance effective July 1, 1985.

(5) Persons eligible to receive the payments provided in subsections (1) and (2) of 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 of trustees 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 designated beneficiary.

(6) Retired persons or beneficiaries thereof, who on July 1, 1994, or July 1 of any fiscal year thereafter, are receiving a retirement allowance, may elect by an irrevocable agreement in writing filed in the office of the Public Employees' Retirement System no less than thirty (30) days prior to July 1, of the appropriate year, to begin receiving the payments provided for in subsection (1) of this section in twelve (12) equal installments beginning July 1, 1994, or July 1 of any fiscal year thereafter. Such irrevocable agreement shall be binding on the member and subsequent beneficiaries. The cumulative percentage provided in subsection (1) of this section and paid in twelve (12) equal installments for any particular year shall not be less than the cumulative percentage provided for the previous year. * * * Any additional amounts approved by the board under subsection (2) of this section shall be paid in one (1) lump sum payment to retirees and beneficiaries in accordance with subsection (2) of this section. In the event of the death of a retired member, or beneficiary thereof, prior to receiving the full amount of the additional payments provided in subsections (1) and (2), any remaining amounts shall be paid to the named beneficiary or the estate of the retired member if no beneficiary is named.

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