PERS panel adopts return‑to‑work rule, sets 30‑day separation and 80% pay option for rehired retirees
June 24, 2026 | Public Employees Retirement System of Mississippi, Agencies, Organizations, Executive, Mississippi
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The Public Employees Retirement System of Mississippi’s administrative committee on Wednesday voted to adopt Regulation 34, finalizing changes to how retired members may return to work and receive partial compensation.
Mr. Higgins, presenting the regulation package, said the rule reflects the recent legislation and summarized three principal changes: the minimum bona fide break in service was reduced from 90 to 30 days; an 80% pay option was added for reemployed retirees; and prior critical‑teacher‑shortage language was removed. "The three options are the halftime/half‑pay option, the existing 25% option, and the new 80% option," he said when introducing the regulation.
The board clarified how the 80% option will operate. Staff explained that the 80% cap applies to earnings for a single full‑time position: a retiree may work for multiple employers but is limited to 80% of the salary of one full‑time role chosen for the calculation. Staff also emphasized that every employer who hires the retiree must remit the applicable employer and employee contributions to PERS so the system is not financially harmed. A committee member summarized the staff position: employers must continue to make required contributions even when a retiree selects the 80% option.
School staffing questions prompted extended discussion. Staff reiterated that routine summer breaks do not constitute the required bona fide break in service; the separation must be a genuine break in employment of at least 30 days in order to comply with IRS requirements and preserve the plan’s qualified tax status. Board members noted that the timing requirement could delay return‑to‑work placements for schools by several weeks in some cases.
After questions and clarifications from multiple members and staff, a motion for final adoption of Regulation 34 carried. Staff said the updated forms are available and that implementation materials (including employer forms) have been posted to the portal.
The committee recorded no additional amendments to the regulation. The vote was taken in committee and the motion carried.
Mr. Higgins, presenting the regulation package, said the rule reflects the recent legislation and summarized three principal changes: the minimum bona fide break in service was reduced from 90 to 30 days; an 80% pay option was added for reemployed retirees; and prior critical‑teacher‑shortage language was removed. "The three options are the halftime/half‑pay option, the existing 25% option, and the new 80% option," he said when introducing the regulation.
The board clarified how the 80% option will operate. Staff explained that the 80% cap applies to earnings for a single full‑time position: a retiree may work for multiple employers but is limited to 80% of the salary of one full‑time role chosen for the calculation. Staff also emphasized that every employer who hires the retiree must remit the applicable employer and employee contributions to PERS so the system is not financially harmed. A committee member summarized the staff position: employers must continue to make required contributions even when a retiree selects the 80% option.
School staffing questions prompted extended discussion. Staff reiterated that routine summer breaks do not constitute the required bona fide break in service; the separation must be a genuine break in employment of at least 30 days in order to comply with IRS requirements and preserve the plan’s qualified tax status. Board members noted that the timing requirement could delay return‑to‑work placements for schools by several weeks in some cases.
After questions and clarifications from multiple members and staff, a motion for final adoption of Regulation 34 carried. Staff said the updated forms are available and that implementation materials (including employer forms) have been posted to the portal.
The committee recorded no additional amendments to the regulation. The vote was taken in committee and the motion carried.
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