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MississippiHB 40732026 Regular SessionHouseWALLET

Mississippi Work and Save Program; create; revise certain PERS provisions.

Sponsored By: Jody Steverson (Republican)

Signed by Governor

Ways and MeansFinance

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 1 costs, 4 mixed.

Lower pension formula for new PERS members

Beginning March 1, 2026, if you join PERS your pension uses tougher rules. Your average pay is based on your eight highest years (or last 96 months). Your annuity is 1% of that average for each year you worked. You can retire at age 62 with at least 8 years, or after the creditable service threshold listed in the statute.

New Work and Save retirement program for workers

The state creates Mississippi Work and Save, a voluntary payroll‑deduction IRA program. You can start contributing by August 1, 2028. Employers may offer it and can auto‑enroll you, but you can opt out. Self‑employed people and contractors can join. Accounts default to a Roth IRA; the Treasurer may let you choose a traditional IRA. You own the money and earnings and can roll over to other IRAs or plans tax‑free if you start the rollover. Employers cannot contribute, and agents or brokers cannot solicit rollovers.

Retirees can return sooner with 80% pay cap

Starting July 1, 2026, retirees can return to state work after 30 days instead of 90, unless the PERS Board sets a later date. Rehired retirees can be paid up to 80% of the job’s salary under a written agreement sent to PERS. The employer must pay all required PERS contributions, and you do not earn new retirement benefits. This option excludes elected officials, K‑12 superintendents, and university or community college administrators. It ends July 1, 2036.

Work and Save fees, safeguards, and oversight

The program has consumer protections and cost limits. Total fees are capped at 0.75% of assets a year after a three‑year start‑up period. Your account data is confidential. The state does not guarantee returns or pay your benefits. The Treasurer runs the program as a fiduciary, with annual CPA audits and public reports. An administrative fund supports operations, including up to $200,000 in bonds that cannot be issued after July 1, 2030. Parts preempted by ERISA are not implemented, and employers are not liable if they do not run investments.

Retired teachers can work, with new limits

Starting July 1, 2026, retired teachers can return after 30 days and keep their pension while working. You may do this for up to five years total, with no new retirement benefits. You must hold a standard Mississippi teaching license and have 30 years of service, or have retired with at least 25 years by July 1, 2024. Districts must base pay on the state salary schedule (up to 125%), pay no more than 50% to you, and send the other 50% to PERS. The State Department of Education must move MAEP funds to PERS for these hires, and this rehire program is the only allowed pathway for teachers.

Roth accounts and withholding for deferred pay

The state deferred compensation plan may offer Roth and other after‑tax accounts if the plan allows them. Employers must treat those after‑tax contributions as income when you would have been paid. For pre‑tax deferrals, employers exclude the deferred amount from payroll tax withholding.

Sponsors & Cosponsors

Sponsor

  • Jody Steverson

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 389 • No: 3

House vote • 3/29/2026

Conference Report Adopted

Yes: 120 • No: 0

Senate vote • 3/29/2026

Conference Report Adopted

Yes: 49 • No: 1

Senate vote • 3/18/2026

Passed As Amended

Yes: 51 • No: 0

Senate vote • 3/17/2026

Passed As Amended

Yes: 51 • No: 1

House vote • 2/25/2026

Passed As Amended

Yes: 118 • No: 1

Actions Timeline

  1. Approved by Governor

    4/8/2026legislature

  2. Enrolled Bill Signed

    4/1/2026Senate

  3. Enrolled Bill Signed

    4/1/2026House

  4. Conference Report Adopted

    3/29/2026Senate

  5. Conference Report Adopted

    3/29/2026House

  6. Conference Report Filed

    3/27/2026Senate

  7. Conference Report Filed

    3/27/2026House

  8. Conferees Named Harkins,Sparks,Michel

    3/27/2026Senate

  9. Conferees Named Lamar,Steverson,Zuber

    3/23/2026House

  10. Decline to Concur/Invite Conf

    3/20/2026House

  11. Returned For Concurrence

    3/19/2026Senate

  12. Passed As Amended

    3/18/2026Senate

  13. Amended

    3/18/2026Senate

  14. Reconsidered

    3/18/2026Senate

  15. Motion to Reconsider Entered

    3/18/2026Senate

  16. Passed As Amended

    3/17/2026Senate

  17. Amended

    3/17/2026Senate

  18. Title Suff Do Pass As Amended

    3/16/2026Senate

  19. Referred To Finance

    3/4/2026Senate

  20. Transmitted To Senate

    2/26/2026House

  21. Passed As Amended

    2/25/2026House

  22. Amended

    2/25/2026House

  23. Title Suff Do Pass

    2/24/2026House

  24. Referred To Ways and Means

    2/24/2026House

Bill Text

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