Agency Information on Reemployment 

Reemployment After Service Retirement Fact Sheet

Withdrawal from Service

"Withdrawal from Service" is defined by statute as the complete severance of employment in state service of any member by resignation, dismissal, or discharge. Retirement benefits may not begin until the member has withdrawn from service as required in Miss. Code Ann. § 25-11-111 (1972, as amended). If the retired member is reemployed by the same or another covered employer in any capacity, including that of an independent contractor, within ninety (90) calendar days from the effective date of retirement, or is guaranteed such reemployment, the member shall be considered to have continued in the status of an employee and not to have separated from service. In the absence of such ninety (90) day period of separation, any retirement allowance payments received by the retired member shall be repaid to the Retirement System and the retirement shall be negated. If such retiree is so employed or reemployed in a covered position without the requisite separation, such reemployed retiree shall continue to be reported to the Retirement System.

Provisions for Reemployment of a PERS Service Retiree

According to the provisions of Miss. Code Ann. § 25-11-127 (1972, as amended), a PERS service retiree may be reemployed by an agency, or agencies, covered by PERS and continue to receive his/her service retirement benefits under the following provisions:

a) Retirees reemployed in other than an Elected Position

The Retirement System may not withhold a monthly benefit payment if the retiree is employed by a covered employer in the following instances:

1. For a period of time not to exceed one-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

2. 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 the retiree's average compensation.

"Fiscal Year" shall mean the period beginning on July 1 of any year and ending on June 30 of the next succeeding year as provided by statute. 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) Retirees reemployed as a Municipal or County Elected Official

Any member may retire and continue in covered municipal or county elective office provided that the member has reached age 62, or a retiree may, after the required separation period, be elected to a covered municipal or county office, provided the retiree:

1. Files annually, in writing in the office of the employer and of PERS, before he or she 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, in which event no salary or compensation shall thereafter be due or payable for those services, or

2. Files annually, in writing in the office of the employer and of PERS, an election to receive compensation for that municipal or county elected office in an amount not to exceed twenty-five percent (25%) of the retiree's average compensation, which shall be prorated over a twelve month time frame.

A retiree who continues in or is elected to municipal or county office may receive any office expense allowance, mileage or travel expense authorized by any statute of the State of Mississippi.

c) Retirees employed in both a non-elective position and a Municipal or County Elected position

If at any point during the fiscal year, a retiree is reemployed in both a covered local elected position (and thus considered a full time employee) and is also reemployed on a limited basis in a non-elective position, he/she must either a) begin or continue under the 25% of average compensation limitation and apply what has already been earned from any other position during the fiscal year to that limitation or b) stay under an existing election to work no more than one-half of the normal working days and earn no more than one-half of the salary for a non-elected position and waive the salary for the local elected position.

Notice of Reemployment of PERS Service Retiree

To lawfully employ a PERS service retiree, the employer must notify the Retirement System in writing of the terms of the eligible employment within five days from the date of employment and also from the date of termination on a form prescribed by the Board. Failure by the employer to timely notify the Retirement System may result in the assessment of a $300.00 penalty per occurrence payable by the employer.

A service retiree may make one election per fiscal year to either a) limit the amount of compensation that will be earned and the number of days/ hours worked for all covered employers or b) limit the amount of compensation that will be earned from all covered employers.

A retiree who continues in or is elected to municipal or county office (and who is not also reemployed in a non-elective position) may make one election per fiscal year to either a) waive his or her salary and continue to receive a retirement allowance or b) elect to receive an amount not to exceed twenty-five percent (25%) of the retiree's average compensation. Note that such elected official does not have the option of limiting the number of days or hours worked.