Mississippi lawmakers have approved revisions to the state’s Public Employees’ Retirement System (PERS) Tier 5 plan, including reducing the years of service needed for retirement from 35 to 30. The conference report was agreed upon Sunday and modifies provisions of the Tier 5 plan, which took effect March 1 following passage during the 2025 legislative session.
The changes aim to address PERS’s $26 billion unfunded liability. Critics, particularly from law enforcement, have expressed concerns over the plan. The new legislation also alters how retirement benefits are calculated, returning to using an employee’s highest four years of salary instead of the highest eight years, as initially adopted last year.
Additionally, the bill allows retirees to return to state employment after a 30-day break, a move intended to help fill staffing gaps in agencies and schools struggling to hire teachers. State Senator Daniel Sparks, a Republican, described the measure as employer-friendly. Rep. Trey Lamar, also a Republican, said the provision applies to most state employees but excludes positions like school superintendents.
Senator Sparks noted that first responders were receptive to the hire-back provision, believing it helps retain institutional knowledge and reduces reliance on contract labor. The legislation also permits voluntary contributions to Roth IRAs or other after-tax retirement plans, revising existing laws that previously prohibited catch-up plans.
After the vote, Sparks told the Magnolia Tribune that the bill reflects the state’s ongoing approach to PERS and assured it would not bankrupt the state. The House approved the conference report 120-0, with only one senator, Democrat Hob Bryan, voting against it in the Senate.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
