House Concurrent Resolution 11

A CONCURRENT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 272A, MISSISSIPPI CONSTITUTION OF 1890, TO REQUIRE THE LEGISLATURE TO PROVIDE FOR THE ESTABLISHMENT, OPERATION AND CONTINUATION OF A RETIREMENT SYSTEM FOR PUBLIC EMPLOYEES; TO PROVIDE THAT THE SYSTEM SHALL BE GOVERNED BY A BOARD OF TRUSTEES MEETING SUCH QUALIFICATIONS AND SERVING SUCH TERMS OF OFFICE AS PRESCRIBED BY GENERAL LAW; TO PROVIDE THAT THE BOARD OF TRUSTEES SHALL BE COMPOSED OF THE STATE TREASURER, ONE MEMBER APPOINTED BY THE GOVERNOR AND OTHER MEMBERS OF THE SYSTEM ELECTED BY MEMBERS OF THE SYSTEM REPRESENTING VARIOUS CATEGORIES OF SYSTEM MEMBERSHIP; TO PROHIBIT MONEY REQUIRED TO BE PAID TO THE SYSTEM FROM BEING EXPENDED OR DIVERTED FOR A PURPOSE OTHER THAN FOR RETIREMENT BENEFITS OR MANAGEMENT EXPENSES OF THE SYSTEM; AND FOR RELATED PURPOSES.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI, That the following amendment to the Mississippi Constitution of 1890 is proposed to the qualified electors of the state:

Amend Section 272A, Mississippi Constitution of 1890, to read as follows:

"Section 272A. (1) The Legislature, by general law, shall provide for the establishment, operation and continuation of a retirement system for public employees for the purpose of providing retirement benefits to state employees and state institutions and to employees of political subdivisions and instrumentalities thereof that elect to participate in the system, including dependents, survivors and beneficiaries of such employees. Such system shall be governed by a board of trustees or administrative board, the members of which shall be appointed, meet such qualifications and serve such terms of office as prescribed by law. The board of trustees shall appoint an executive director to administer and carry out the policies and directives of the board. The board of trustees shall be composed of:

(a) The State Treasurer;

(b) One (1) person to be appointed by the Governor, which person must be a member of the system; and

(c) Such other members of the system representing various categories of system membership as the Legislature shall prescribe by general law, each of whom shall be elected by the system members within their respective categories including, but not limited to, the following categories:

(i) State employees who are not employees of the state institutions of higher learning;

(ii) Employees of municipalities, instrumentalities or juristic entities thereof and employees of county, instrumentalities or juristic entities thereof who do not hold office in the legislative or judicial departments of municipal or county government;

(iii) Employees of a state institution of higher learning;

(iv) Retired members who are receiving a retirement allowance from the system; and

(v) Employees of any public school district or junior college or community college district that participates in the system.

(2) All of the assets, proceeds or income of the Public Employees' Retirement System of Mississippi and the Mississippi Highway Safety Patrol Retirement System or any successor systems, and all contributions and payments made or required to be made to the systems to provide for retirement and related benefits shall be held, invested as authorized by law, or disbursed as in trust for the exclusive purpose of providing for such benefits, refunds and administrative expenses under the management of the board of trustees of the systems, and shall not be encumbered for or diverted to any other purposes.

(3) Legislation shall not be enacted increasing benefits under the Public Employees' Retirement System of Mississippi and the Mississippi Highway Safety Patrol Retirement System in any manner unless funds are available therefor, or unless concurrent provisions are made for funding any such increase in accordance with a prior certification of the cost by the board of trustees of the systems based on accepted actuarial standards."

BE IT FURTHER RESOLVED, That this proposed amendment shall be submitted by the Secretary of State to the qualified electors at an election to be held on the first Tuesday after the first Monday

of November 2006, as provided by Section 273 of the Constitution and by general law.

BE IT FURTHER RESOLVED, That the explanation of this proposed amendment for the ballot shall read as follows: "This proposed constitutional amendment requires the Legislature to establish a retirement system for public employees to be governed by a board of trustees composed of the State Treasurer, one member appointed by the Governor and other members of the system elected by members of the system representing various categories of system membership. The amendment also prohibits money required to be paid to the system from being expended or diverted for a purpose other than retirement benefits or management expenses."