House Bill 38

AN ACT TO AMEND SECTION 25-11-127, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE TEMPORARY EMPLOYMENT OF RETIREES UNDER THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM IN POSITIONS IN ANY COUNTY THAT WAS DECLARED BY THE PRESIDENT TO BE A MAJOR DISASTER AREA BECAUSE OF DAMAGE FROM HURRICANE KATRINA AND IN WHICH CERTAIN ASSISTANCE FROM THE FEDERAL GOVERNMENT HAS BEEN MADE AVAILABLE, IF THE EMPLOYER DETERMINES AND CERTIFIES THAT THE RETIREE'S KNOWLEDGE AND EXPERIENCE WOULD BE BENEFICIAL TO THE EMPLOYER IN RECOVERING FROM THE EFFECTS OF HURRICANE KATRINA; TO SPECIFY THE PERIOD OF TIME THAT A RETIREE MAY WORK AND THE AMOUNT OF THE SALARY THAT A RETIREE MAY RECEIVE WHILE EMPLOYED IN SUCH A POSITION; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 25-11-127, Mississippi Code of 1972, is amended as follows:

[Through June 30, 2006, Section 25-11-127 shall read as follows:]

25-11-127. (1) (a) No person who is being paid a retirement allowance or a pension after retirement under this article shall be employed or paid for any service by the State of Mississippi, except as provided in this section.

(b) No retiree of this retirement system who is reemployed or is reelected to office after retirement shall continue to draw retirement benefits while so reemployed, except as provided in this section.

(c) No person employed or elected under the exceptions provided for in this section shall become a member under Article 3 of the retirement system.

(2) Any person who has been retired under the provisions of Article 3 and who is later reemployed in service covered by this article shall cease to receive benefits under this article and shall again become a contributing member of the retirement system. When the person retires again, if the reemployment exceeds six (6) months, the person shall have his or her benefit recomputed, including service after again becoming a member, provided that the total retirement allowance paid to the retired member in his or her previous retirement shall be deducted from the member's retirement reserve and taken into consideration in recalculating the retirement allowance under a new option selected.

(3) The board shall have the right to prescribe rules and regulations for carrying out the provisions of this section.

(4) (a) The provisions of this section shall not be construed to prohibit any retiree, regardless of age, from being employed and drawing a retirement allowance either:

(i) For a period of time not to exceedone-half (1/2) of the normal working days for the position in any fiscal year during which the retiree will receive no more than one-half (1/2) of the salary in effect for the position at the time of employment, or

(ii) For a period of time in any fiscal year sufficient in length to permit a retiree to earn not in excess of twenty-five percent (25%) of retiree's average compensation.

To determine the normal working days for a position under subparagraph (i) of this paragraph (a), the employer shall determine the required number of working days for the position on a full-time basis and the equivalent number of hours representing the full-time position. The retiree then may work up to one-half (1/2) of the required number of working days or up to one-half (1/2) of the equivalent number of hours and receive up to one-half (1/2) of the salary for the position. In the case of employment with multiple employers, the limitation shall equal one-half (1/2) of the number of days or hours for a single full-time position.

(b) Notwithstanding the provisions of paragraph (a) of this subsection, in any county that was declared by the President to be a major disaster area because of damage from Hurricane Katrina and in which both Individual Assistance and Public Assistance from the federal government have been made available, a retiree may be employed and draw a retirement allowance during the period from the effective date of this act through June 30, 2006, in any position covered by the retirement system for which the duties will be performed in any of those counties, and for which the retiree's knowledge and experience would be beneficial to the employer in recovering from the effects of Hurricane Katrina, as determined by the employer and certified to the executive director. Any retiree who is employed under the provisions of this paragraph (b) may be employed and draw a retirement allowance for any period of time from the effective date of this act through June 30, 2006, during which time the retiree may receive the full amount of the salary in effect for the position at the time of employment.

(c) Notice of employment under this subsection (4) shall be given in writing to the executive director, setting forth the facts upon which the employment is being made, and the notice shall be given within five (5) days from the date of employment and also from the date of termination of the employment.

(5) Any member may continue in municipal or county elected office or be elected to a municipal or county office, provided that the person:

(a) Files annually, in writing, in the office of the employer and the office of the executive director of the system before the person takes office or as soon as possible after retirement, a waiver of all salary or compensation and elects to receive in lieu of that salary or compensation a retirement allowance as provided in this section, in which event no salary or compensation shall thereafter be due or payable for those services; however, any such officer or employee may receive, in addition to the retirement allowance, office expense allowance, mileage or travel expense authorized by any statute of the State of Mississippi; or

(b) Elects to receive compensation for that elective office in an amount not to exceed twenty-five percent (25%) of the retiree's average compensation. As used in this paragraph, the term "compensation" shall not include office expense allowance, mileage or travel expense authorized by a statute of the State of Mississippi. In order to receive compensation as allowed in this paragraph, the member shall file annually, in writing, in the office of the employer and the office of the executive director of the system, an election to receive, in addition to a retirement allowance, compensation as allowed in this paragraph.

[From and after July 1, 2006, this section shall read as follows:]

(c) No person employed or elected under the exceptions provided for in this section shall become a member under Article 3 of the retirement system.

(3) The board shall have the right to prescribe rules and regulations for carrying out the provisions of this section.

(4) The provisions of this section shall not be construed to prohibit any retiree, regardless of age, from being employed and drawing a retirement allowance either:

(a) For a period of time not to exceedone-half (1/2) of the normal working days for the position in any fiscal year during which the retiree will receive no more than one-half (1/2) of the salary in effect for the position at the time of employment, or

(b) For a period of time in any fiscal year sufficient in length to permit a retiree to earn not in excess of twenty-five percent (25%) of retiree's average compensation.

To determine the normal working days for a position under paragraph (a) of this subsection, the employer shall determine the required number of working days for the position on a full-time basis and the equivalent number of hours representing the full-time position. The retiree then may work up to one-half (1/2) of the required number of working days or up to one-half (1/2) of the equivalent number of hours and receive up to one-half (1/2) of the salary for the position. In the case of employment with multiple employers, the limitation shall equal one-half (1/2) of the number of days or hours for a single full-time position.

Notice shall be given in writing to the executive director, setting forth the facts upon which the employment is being made, and the notice shall be given within five (5) days from the date of employment and also from the date of termination of the employment.

(5) Any member may continue in municipal or county elected office or be elected to a municipal or county office, provided that the person:

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