MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Finance

By: Senator(s) Doty

Senate Bill 2641

AN ACT TO AMEND SECTIONS 25-14-5, 25-14-9 AND 25-14-15, MISSISSIPPI CODE OF 1972, TO CLARIFY THE INVESTMENT OPTIONS UNDER THE GOVERNMENT EMPLOYEES DEFERRED COMPENSATION PLAN LAW; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 25-14-5, Mississippi Code of 1972, is amended as follows:

     25-14-5.  (1)  The State of Mississippi, or any state agency, county, municipality or other political subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee's income, and a county, municipality or other political subdivision, except community and junior college districts, may make contributions to the plan on behalf of actively participating members on a uniform basis through an employer contribution agreement as provided for in the Mississippi Deferred Compensation Plan and Trust Plan Document if making the contribution does not conflict with any other state law. * * *  Those funds may subsequently be used to purchase a fixed or variable life insurance or annuity contract authorized for purchase by the Public Employees' Retirement System of Mississippi for the purpose of protecting its obligation to the deferred compensation program for the employee from any life underwriter duly licensed by this state who represents an insurance company licensed to contract fixed and variable annuities and fixed or variable life insurance business in this state and authorized by the Public Employees' Retirement System of Mississippi to offer their products in the plan, or to purchase any investments authorized for purchase by the Public Employees' Retirement System of Mississippi under Section 25‑11‑121, or to invest those monies in a fund or funds maintained by a corporate trustee, which fund or funds are used as an investment media for retirement, pension or profit sharing plans that are tax qualified for that purpose.  However, i  In the administration of this plan, the Public Employees' Retirement System of Mississippi may adopt such regulations as are reasonable and necessary to assure the orderly functioning of the plan * * *, but those regulations shall not unreasonably restrict all licensed life underwriters and insurance companies described in this section from concurrently participating in providing contracts authorized under this section.

     (2)  Except as otherwise provided in subsection (3) of this section and notwithstanding anything in any other law to the contrary * * * notwithstanding, the deferred portion of the employee's compensation, the plan and the monies in the plan created by this chapter are exempt from any state, county or municipal ad valorem taxes, income taxes, premium taxes, privilege taxes, property taxes, sales and use taxes and any other taxes not so named, until the deferred compensation is paid to the employee or beneficiary and exempt from levy, garnishment, attachment or any other process whatsoever.

     (3)  The Mississippi Government Employees' Deferred Compensation Plan and Trust may include Roth accounts pursuant to 26 USC Section 402A of the Internal Revenue Code or any other post-tax vehicle contribution allowed pursuant to the Internal Revenue Code if permitted under the plan document.  A participant's Roth or other allowable post-tax contribution into a deferred compensation account shall be treated by the employer as includable in the participant's income at the time the participant would have received that amount in compensation if the participant had not made a deferred election.  A participant's Roth or other allowable post-tax contribution into a deferred compensation account and any associated earnings are exempt from levy, garnishment, attachment or any other process whatsoever and may be withdrawn tax-free if the requirements for a qualified distribution under the Internal Revenue Code are met.

     SECTION 2.  Section 25-14-9, Mississippi Code of 1972, is amended as follows:

     25-14-9.  Notwithstanding any other provision of law to the contrary, the Public Employees' Retirement System of Mississippi or the appropriate officer of a county, municipality, or other political subdivision designated to administer a deferred compensation program is hereby authorized to invest the monies held pursuant to a deferred compensation program in fixed and variable life insurance or annuity contracts; * * * or to purchase mutual funds, collective investment trusts or common group trusts that provide for the pooling of assets of employee benefits trusts, separate accounts or any other investment vehicles, including funds exempt from registration as securities that invest in any investments authorized for purchase by the Public Employees' Retirement System of Mississippi under Section 25-11-121 * * *, Mississippi Code of 1972; or to invest such monies in a fund or funds maintained by a corporate trustee, which fund or funds are used as an investment media for retirement, pension or profit sharing plans that are tax qualified for such purpose; or benefit responsive contracts issued by insurance companies, banks or financial institutions.  While any portion of the program's assets are invested in a collective investment trust or a common group trust, such trust shall constitute a part of the program and the instruments creating the trust shall constitute a part of the program documentation.

     SECTION 3.  Section 25-14-15, Mississippi Code of 1972, is amended as follows:

     25-14-15.  Except as otherwise provided in Section 25-14-5(3) and notwithstanding any other provision of this chapter or any other provision of law to the contrary, any sum deferred under the deferred compensation program shall not be included for the purposes of computation of any taxes withheld on behalf of any employee.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2018.