MS SB2439

Creates a new tier (Tier 5) in the Mississippi Public Employees' Retirement System (PERS) for employees hired on or after March 1, 2026, combining a defined benefit plan with an immediate vesting defined contribution plan under IRC Section 401(a).

New tier members contribute 9% of earned compensation (4% to defined benefit annuity savings account, 5% to defined contribution account), with employers contributing to an accrued liability fund; employers may also contribute up to the federal maximum to the defined contribution plan.

Changes retirement eligibility and benefits for new tier members: retirement at age 62 with 8 years of service or any age with 35 years of service; defined benefit allowance calculated at 1% of average compensation per year of service (based on 8 highest consecutive years or 96 months of compensation, whichever is greater).

Eliminates annual cost-of-living adjustments for new tier members (though legislature may provide ad hoc increases); prohibits partial lump-sum distributions and service credit for unused leave for new tier members.

Terminates the Supplemental Legislative Retirement Plan (SLRP) for legislators elected on or after March 1, 2026; those elected before that date who withdraw and reenter service after March 1, 2026 become PERS members with no prior service credit.