PERS Retirement Plan

The Public Employees' Retirement System of Mississippi (PERS) is the retirement system for eligible public employees who work as regular employees for state agencies, universities, community colleges, public schools, as well as counties and cities that have entered into Joinder Agreements to provide retirement coverage to eligible employees.To participate in the Retirement System, an individual must be employed as a regular employee whose employment is anticipated to exceed 4 and ½ months. He or she must be subject to the control of the covered public employer as defined in Internal Revenue Service guidelines, and he or she must satisfy the following general requirements:

Be properly classified as an employee;

Have compensation properly reported on IRS Form W-2;

Be paid regular periodic compensation;

Be treated as an employee for all purposes, including but not limited to eligibility for fringe benefits, payment of employment related expenses, payroll tax withholding, etc.; and

Personally perform services and receive compensation for not less than 20 hours per week or a total of 80 hours per month, or in the case of contract school personnel, perform services and receive compensation for half-time or more for the academic year.

Participation in the Retirement System is mandatory for eligible employees if their employer is covered under the Retirement System. Any elected official whose position is not excluded by a Joinder Agreement or by law who receives a regular salary is deemed to be a full-time employee in a covered position subject to mandatory participation in PERS. For additional information, refer to Subject Index below.

PERS Coverage

Miss. Code Ann. Section 25-11-105 and PERS Board Regulation 36 set forth the provisions for membership eligibility in the PERS Plan.

All persons who become employees in state service after January 31, 1953, and whose wages are subject to payroll taxes and are lawfully reported on IRS Form W-2, except those specifically excluded or as to whom election for coverage is provided, shall be members of the retirement system as a condition of their employment.

PERS Contribution Rate

For the current contribution rate, see PERS Regulation 60, Contribution Rates.

PERS Service Retirement Monthly Benefit Eligibility

To be eligible for a service retirement benefit, a PERS member must be at least age 60 and vested - OR- any age if the member has 25 years of creditable service and was hired before July 1, 2011, or has 30 years of creditable service and was hired on or after July 1, 2011.

Back to top

PERS Benefit Formula (Maximum Benefit)

2.0% of average compensation for each of the first 25 years of creditable service PLUS 2.5% of average compensation for all years of creditable service over 25.

NOTE: Under the PERS Maximum Retirement Allowance, PERS guarantees no retiree will receive less than an amount equal to $10 per month for each year of service credit. However, the Maximum Retirement Allowance is reduced, if an optional form of benefit payment is selected by the retiree. Average compensation is calculated using the four (4) highest years of salary (these do not have to be consecutive) plus up to 30 days of lump sum unused leave payment received at termination for purposes of retirement.

The total is then divided by four (4) to arrive at the average compensation. The "four (4) highest years of salary" is defined as one of the following:

1. The four (4) highest state fiscal years of earned compensation; or 2. The four (4) highest calendar years of earned compensation; or 3. A combination of four (4) state fiscal and calendar years that do not overlap; or 4. The final 48 months of earned compensation prior to termination of employment.

PERS Benefit Payment Options Under Service Retirement

Maximum Retirement Allowance - This option is a single life annuity which provides the greatest possible monthly benefit, with all payments ceasing at the death of the retiree. For each dollar received in monthly benefits, the employee contributions will be reduced by that same amount. In the event total retirement benefits paid do not equal the employee contributions, the difference will be refunded to the designated beneficiary. In the event of marriage after retirement, the retiree may apply for a benefit recalculation under Option 2 or Option 4A, to provide protection to the new spouse.

Option 1 - This option is a prorated single life annuity which provides a monthly benefit to the retiree for life. This option allows the employee contributions to be used at a slower rate than under the Maximum Retirement Allowance. At the death of the retiree, unused employee contributions are refunded to the designated beneficiary. In the event of marriage after retirement, the retiree may apply for a benefit recalculation under Option 2 or Option 4A, to provide protection to the new spouse.

Option 2 - The 100% Joint and Survivor Annuity option provides a reduced benefit payable to the retiree for life. At the death of the retiree, the joint annuitant receives a lifetime annuity equal to the monthly benefit being paid the retiree. In the event the joint annuitant predeceases the retiree, or the retiree divorces, the retiree may apply for a benefit recalculation under the Maximum Retirement Allowance.

Option 3 - The 100% Joint and Survivor Annuity option for two (2) beneficiaries provides a reduced benefit payable to the retiree for life. The retiree may name two (2) beneficiaries at retirement. At the death of the retiree, the named beneficiaries will each receive one-half of the amount being paid to the retiree before death. The amount is payable throughout the lifetimes of the named beneficiaries. Upon the death of one (1) of the beneficiaries, the surviving beneficiary shall receive the full benefit amount.

Option 4A - The 50% Joint and Survivor Annuity option provides a reduced benefit payable to the retiree for life. At the death of the retiree, the named beneficiary receives a lifetime annuity equal to one-half of the monthly benefit being paid the retiree prior to death. In the event the designated beneficiary predeceases the retiree, or the retiree divorces, the retiree may apply for a benefit recalculation under the Maximum Retirement Allowance.

Option 4B 10, 15, 20 Years Certain - Option 4B allows a retiree to select either the 10, 15, or 20 years certain provision. Payment is made to the retiree for life. Should the retiree die within 10, 15, or 20 years of the date of retirement, the named beneficiary(ies) will draw the same monthly benefits paid the retiree until the end of the elected period of coverage. The longer the period selected, the greater the reduction in monthly benefits.

Option 6 Partial Lump Sum (Service Retirement Only ) – Upon initial retirement, a member of PERS who has 28 or more years of service or who is at least age 63 with four (4) or more years of service, may elect to receive a partial lump sum along with a reduced monthly benefit. The member may choose a lump sum equal to 12, 24 or 36 times the unreduced base maximum monthly retirement allowance. The maximum monthly retirement allowance is then reduced based on the member's age and the lump sum selected. The member may then choose any of the other options to provide income protection to a beneficiary except Option 1.Back to top

Disability Retirement Benefits

Any PERS member with four (4) or more years of contributing membership service is eligible to apply for regular non-duty related disability benefits AND such member must be under the age of 60 if covered under Plan 1, (The Age-Limited Disability Plan), OR any age if covered under Plan 2, (The Tiered Disability Plan). Refer to the PERS Member Handbook for more information about the two disability Plans.

Any member, regardless of age, is eligible to apply on the first day of employment in the event there is an "on-the-job" accident or traumatic event resulting in a disability.

The PERS Medical Board reviews all claims for disability benefits and makes a determination as to whether or not the applicant's condition, based upon documented, objective medical evidence, is disabling, that is, the condition for which a disability claim is filed, permanently and totally prevents the applicant from performing the essential functions of the member's specific job. The employer is also responsible for certifying whether or not reasonable accommodations can be made to allow the member to continue to perform the job or whether a similar job can be offered within the same geographic area without a significant reduction in pay.

PERS Benefit Payment Options Under Disability Retirement

Maximum Retirement Allowance - This option is a single life annuity which provides the greatest possible monthly benefit, with all payments ceasing at the death of the retiree. For each dollar received in monthly benefits, the employee contributions will be reduced by that same amount. In the event total retirement benefits paid do not equal the employee contributions, the difference will be refunded to the designated beneficiary. In the event of marriage after retirement, the retiree may apply for a benefit recalculation under Option 2 or Option 4A, to provide protection to the new spouse.

Option 1 - This option is a prorated single life annuity which provides a monthly benefit to the retiree for life. This option allows the employee contributions to be used at a slower rate than under the Maximum Retirement Allowance. At the death of the retiree, unused employee contributions are refunded to the designated beneficiary. In the event of marriage after retirement, the retiree may apply for a benefit recalculation under Option 2 or Option 4A, to provide protection to the new spouse.

Option 2 - The 100% Joint and Survivor Annuity option provides a reduced benefit payable to the retiree for life. At the death of the retiree, the joint annuitant receives a lifetime annuity equal to the monthly benefit being paid the retiree. In the event the joint annuitant predeceases the retiree, or the retiree divorces, the retiree may apply for a benefit recalculation under the Maximum Retirement Allowance.

Option 3 - The 100% Joint and Survivor Annuity option for two (2) beneficiaries provides a reduced benefit payable to the retiree for life. The retiree may name two (2) beneficiaries at retirement. At the death of the retiree, the named beneficiaries will each receive one-half of the amount being paid to the retiree before death. The amount is payable throughout the lifetimes of the named beneficiaries. Upon the death of one (1) of the beneficiaries, the surviving beneficiary shall receive the full benefit amount.

Option 4A - The 50% Joint and Survivor Annuity option provides a reduced benefit payable to the retiree for life. At the death of the retiree, the named beneficiary receives a lifetime annuity equal to one-half of the monthly benefit being paid the retiree prior to death. In the event the designated beneficiary predeceases the retiree, or the retiree divorces, the retiree may apply for a benefit recalculation under the Maximum Retirement Allowance.

Option 4B 10, 15, 20 Years Certain - Option 4B allows a retiree to select either the 10, 15, or 20 years certain provision. Payment is made to the retiree for life. Should the retiree die within 10, 15, or 20 years of the date of retirement, the named beneficiary(ies) will draw the same monthly benefits paid the retiree until the end of the elected period of coverage. The longer the period selected, the greater the reduction in monthly benefits.

PERS Survivor Allowance

The retirement benefit payable on the account of members who die prior to retirement, whether or not the death is considered a line of duty death, is determined based upon the statutory provisions in effect as of the date of the member's death. In the event of non-duty related death before retirement, the spouse and dependent children of any member with four (4) or more years of contributing membership service may be entitled to a monthly benefit. The member must have been married to the spouse for at least one (1) year prior to death. A dependent child is defined as one who is under the age of 19, unmarried and can be as old as age 23 if in school on a full time basis and unmarried. In the event of death in the line of performance of duty, the member's spouse and dependent children may be entitled to a monthly benefit, regardless of the number of years of membership service credit. Refer to the PERS Member Handbook for the benefit formula and more information about PERS Survivor Benefits.

Back to top

PERS Survivor Retirement Benefit Payment Options

Option 2A - A lifetime benefit payable to the spouse of a member who dies prior to retirement with four (4) or more years of membership service, in an amount equal to 2.0% of the average compensation for each of the first 25 years of service PLUS 2.5% of the average compensation for each year of service credit in excess of 25 years, reduced by the Option 2, 100% joint and survivor factor using the member and beneficiary's age and further reduced 3.00% for each year the member is under age 60 or each year of service under 25, whichever is less.

Option 2B - A benefit payable to the spouse of a member who dies prior to retirement with four (4) or more years of membership service, in an amount equal to 20% of average compensation with a minimum payment of $50 per month. Such payment is made until the death of the spouse.

Option 2D - Benefits may be paid to dependent children of a member who dies prior to retirement with four (4) or more years of membership service credit. A benefit equal to 10% of average compensation is payable for each dependent child, up to a maximum of 30% of average compensation for three (3) or more children with a minimum benefit payment of $50 a month for one (1) dependent child, $100 for two (2) dependent children or $150 a month for three (3) or more dependent children. Benefits are payable to age 19 or to age 23, if the child is a full time student and unmarried.

Option 2K - In the event a member is killed on the job, regardless of the member's age or years of service, a benefit may be paid to the surviving spouse equal to 50% of the average compensation until the death of the spouse.

Option 2CK - In the event a member is killed in the line of duty, regardless of the member's age or years of service, a benefit may be paid to one (1) dependent child equal to 25% of average compensation until age 19 or 23 if a full time student and unmarried, or 50% of average compensation divided among two (2) or more dependent children. Back to top

PERS Benefit Effective Date

Service and Disability Benefits are payable to eligible members effective the first of the month after receipt of the completed application and termination of covered employment, whichever is later. Elected Officials whose term of office, for example, expires the first week of January are not eligible for an effective benefit date earlier than February 1, unless the elected official resigns his/her commission effective the last day of December. Death benefits are payable after receipt of an application and are effective the first of the month following the date of the member's death. In the event of late filing, payment will be made retroactively for not more than one (1) year.

Back to top