MS HB858

Members who become PERS members on or after July 1, 2011, will receive retirement allowances calculated at 2% of average compensation for each year of service up to 30 years, and 2.5% for service exceeding 30 years (compared to 2% up to 25 years and 2.5% above 25 years for earlier members).

New members joining on or after July 1, 2011, must complete 30 years of creditable service to retire regardless of age (increased from 25 years for earlier members).

Members who joined on or after July 1, 2011, retiring at age 60 with fewer than 30 years of service will have their retirement allowance reduced by an actuarial equivalent factor for each year below 30 years of service or each year below age 65, whichever is less.

Cost-of-living adjustments for members joining on or after July 1, 2011, will begin compounding at age 60 instead of age 55 (affecting the calculation formula for annual benefit increases).

The Public Employees' Retirement System must study retirement patterns of members whose employment involves primarily physical labor and report findings to the Legislature by December 15, 2011, regarding the impact of increasing creditable service requirements from 25 to 30 years.