Senate Bill 2437

AN ACT TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 25-11-106.1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COUNTY IS RESPONSIBLE FOR EMPLOYER CONTRIBUTIONS TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) ON NET INCOME ATTRIBUTABLE TO DIRECT TREASURY OR COUNTY PAYROLL INCOME TO THE CHANCERY OR CIRCUIT CLERK FROM THE COUNTY AND THE CHANCERY OR CIRCUIT CLERK IS RESPONSIBLE FOR THE EMPLOYEE CONTRIBUTIONS TO PERS ON NET INCOME ATTRIBUTABLE TO DIRECT TREASURY OR COUNTY PAYROLL INCOME AND BOTH THE EMPLOYEE AND EMPLOYER SHARE OF CONTRIBUTIONS ON THE PROPORTIONATE SHARE OF NET INCOME ATTRIBUTABLE TO FEES; TO PROVIDE THAT IF THE CHANCERY OR CIRCUIT CLERK FAILS TO MAKE FULL PAYMENT OF CONTRIBUTIONS AS REQUIRED IN CALENDAR YEAR 2010 OR ANY CALENDAR YEAR THEREAFTER, PERS SHALL CERTIFY THE DELINQUENCY TO THE COUNTY AND THE COUNTY SHALL WITHHOLD ANY AND ALL PAYMENTS AND FEES DUE TO THE CHANCERY OR CIRCUIT CLERK UNTIL SUCH TIME AS THE AMOUNT OF HIS OR HER DELINQUENT CONTRIBUTIONS ARE WITHHELD AND PAY THE AMOUNT SO WITHHELD TO PERS; TO PROVIDE THAT ANY CURRENT OR FORMER CHANCERY OR CIRCUIT CLERK FOR WHOM APPROPRIATE EMPLOYEE AND EMPLOYER CONTRIBUTIONS AND INTEREST ON ALL FEES AND COUNTY INCOME FROM COVERED SERVICE BEFORE JANUARY 1, 2010, HAVE NOT BEEN MADE, SHALL PAY TO PERS THE REQUIRED CONTRIBUTIONS AND INTEREST BY NOT LATER THAN DECEMBER 31, 2011, OR IRREVOCABLY FORFEIT SERVICE CREDIT FOR ANY PERIOD FOR WHICH CONTRIBUTIONS ARE DELINQUENT, OR ELECT, BEFORE DECEMBER 31, 2011, NOT TO PAY DELINQUENT EMPLOYEE AND EMPLOYER CONTRIBUTIONS AND APPLICABLE INTEREST FOR SERVICE AS A CHANCERY OR CIRCUIT CLERK BEFORE JANUARY 1, 2010, AND IRREVOCABLY FORFEIT SERVICE CREDIT FOR ANY PERIOD FOR WHICH CONTRIBUTIONS ARE DELINQUENT; AND FOR RELATED PURPOSES.

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

SECTION 1. The following shall be codified as Section 25-11-106.1, Mississippi Code of 1972:

25-11-106.1. (1) Any chancery or circuit clerk in office as of January 1, 2011, whose position is covered in the Public Employees' Retirement System by virtue of a plan submitted and approved under Section 25-11-105(f) will remain a member of the Public Employees' Retirement System.

(2) (a) The county is responsible for employer contributions on net income attributable to direct treasury or county payroll income paid to the chancery or circuit clerk from the county. The chancery or circuit clerk is responsible for the employee contributions on net income attributable to direct treasury or county payroll income paid to the clerk and both the employee and employer share of contributions on the proportionate share of net income attributable to fees.

(b) Not later than the date on which the annual report of earnings is due to be filed with the Office of the State Auditor, the chancery or circuit clerk shall submit to the system a copy of the earnings record and make complete payment of required contributions on net income from his or her office; however, in no event shall the contributions be less than the contributions due on the governmental treasuries paid by the county in the prior calendar year.

(c) If the chancery or circuit clerk fails to make full payment of contributions as required for calendar year 2010 or any calendar year thereafter, the system shall certify the delinquency to the county and the county shall withhold any and all payments and fees, including accrued interest, due to the chancery or circuit clerk in a manner as prescribed by board regulations until such time as the total amount of his or her delinquent contributions are withheld and pay the amount so withheld to the system.

(3) Any current or former chancery or circuit clerk for whom appropriate employee and employer contributions and interest on all fees and county income from covered service before January 1, 2010, have not been made shall do one (1) of the following:

(a) Pay to the system the required contributions and interest by not later than December 31, 2011. Failure to pay the required contributions and interest by December 31, 2011, shall constitute an irrevocable election to forfeit service credit for any period for which contributions are delinquent. Upon such forfeiture, the chancery or circuit clerk shall be relieved of the liability for additional employee and employer contributions and applicable interest for covered service before January 1, 2010.

(b) Elect, before December 31, 2011, not to pay delinquent employee and employer contributions and applicable interest for service as a chancery or circuit clerk before January 1, 2010. By making this election, the current or former chancery or circuit clerk shall irrevocably forfeit service credit for any period for which contributions are delinquent and shall not be liable for employee and employer contributions and applicable interest for covered service before January 1, 2010.

(4) If a current or former chancery or circuit clerk fails to make required contributions as provided in subsection (3)(a) of this section or elects to forfeit service credit as provided in subsection (3)(b) of this section, all employee and employer contributions previously paid on that service shall be credited to the county as the reporting entity to be distributed as appropriate between the county and the chancery or circuit clerk or former chancery or circuit clerk. No further contributions shall be due on that past service and any credit on that past service shall be removed from the member's record and may not be reinstated at any time in the future.

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