MS SB2906

Repeals the Tier 5 retirement plan for Mississippi Public Employees' Retirement System (PERS) members that was created in House Bill No. 1 during the 2025 Regular Session for employees joining on or after March 1, 2026

Restores the average compensation calculation to the highest 4 years or last 48 consecutive months for all members, eliminating the Tier 5 requirement of 8 highest consecutive years or 96 consecutive months

Establishes a new cost-of-living adjustment (COLA) structure for members joining on or after July 1, 2026: 1% simple increase per year in retirement before age 65, then 1% compounded annually starting at age 65

Restores creditable service for unused leave for new members, reversing the Tier 5 provision that eliminated service credit for unused leave

Authorizes the PERS Board of Trustees to promulgate rules to reverse any actions taken under House Bill No. 1 if this act passes on or after March 1, 2026