Legislature; allow retired PERS members to receive a retirement allowance while serving as a member of.
The bill proposes that retired legislators may receive 50% of regular session compensation and certain allowances if they serve up to half of the normal working days in any fiscal year. Alternatively, they may opt to receive up to 25% of their average compensation without any limit on their service period. Notably, individuals choosing to receive their retirement allowance under this bill will not be considered active members of the retirement system nor will they accrue creditable service for the duration they draw a retirement allowance while serving in the Legislature. This aspect is crucial as it affects their overall retirement contributions and benefits.
House Bill 861 seeks to amend the Mississippi Code by introducing a new section, 25-11-126, which allows certain individuals receiving a retirement allowance from the Public Employees' Retirement System (PERS) to continue receiving their benefits while serving as elected members of the Legislature. Specifically, it applies to former members who are retired at least 90 days before assuming legislative office, as well as current members who meet specific eligibility criteria and have not resulted in any prohibited in-service distributions as defined by the IRS. This bill aims to create a framework for how compensation and allowances are handled for legislators who are also retired public employees.
Potential points of contention surrounding HB 861 may involve concerns from lawmakers regarding the implications of allowing retired personnel to draw retirement benefits concurrently with legislative compensation. Critics may argue that this could create a financial burden on the retirement system or may incentivize retired employees to seek election rather than allowing new, non-retired candidates an opportunity. The fact that these retired members will not be actively contributing to the retirement system during their legislative service could also raise debates about equity and sustainability within the PERS.