MS HB45

Employers in the Public Employees' Retirement System (PERS) must pay into the employer's accumulation account a percentage of compensation paid to contract workers, contractual employees, or independent contractors when those individuals perform services typically done by regular employees or active PERS members

The required employer contribution rate for contract workers matches the rate paid for employees who became PERS members before March 1, 2026

The requirement applies to contracts with individuals directly or through third parties when the contracted services are still being performed by or were formerly performed by active PERS members

Exempts retired employees receiving retirement allowances who are employed after retirement and for whom the employer already pays contributions under existing law

Effective date: July 1, 2026