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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

11 provisions identified: 2 benefits, 2 costs, 7 mixed.

New PERS rules change retirement benefits

For affected PERS members entering on or after March 1, 2026, average compensation uses the four highest years or last 48 months, instead of the earlier eight-year or 96-month period. These averages help set retirement, disability, and survivor benefits. New members can qualify at age 62 with 8 years of membership service, or at any age with 30 years of creditable service. Members who leave before age 62 can receive an accrued allowance at 62 if they have 8 years of membership service and take no refund. But people who withdrew PERS contributions before March 1, 2026, and rejoin on or after that date cannot count service from before March 1, 2026.

PERS retirees can return to work sooner

PERS retirees can return to paid state work after 30 days, down from 90 days, though the board may set a later date. Under one option, eligible retirees can keep their allowance and earn up to 80% of the position's salary. A written agreement must go to PERS, and the employer pays both required contribution amounts. Retirees gain no additional retirement rights through that option, which ends July 1, 2036. Elected officials, K-12 superintendents, and certain college administrators are excluded.

Public workers gain Roth savings options

Covered Mississippi deferred compensation plans can offer Roth accounts or other after-tax savings options when the plan document allows them. These contributions count as income when the worker otherwise would have received the pay. They do not get the usual deferred-tax treatment.

Workers and contractors gain retirement access

The State Treasurer must create a voluntary retirement savings program. You can join if you are at least 18 and have pay tied to Mississippi. Your employer must choose to take part and generally cannot have a qualifying retirement plan in the current or either of the prior two calendar years. Some government, railway, and multiemployer-plan workers are excluded. Nonemployees, including self-employed people and independent contractors, can also join under program rules. Employers may enroll workers automatically, but workers must be able to opt out. Contributions must be available by August 1, 2028, with any phased rollout mostly complete by July 1, 2028.

Investors avoid Mississippi bond taxes

Investors do not pay Mississippi taxes on Work and Save bonds or income from those bonds. The law does not state how much an investor will save.

Employers cannot fund these accounts

Employers cannot contribute to a worker's Mississippi Work and Save account. Participants fund these accounts themselves. The law does not say whether an employer can contribute to a separate retirement plan.

Public employers face PERS payment rules

A public subdivision or instrumentality that ends a plan providing PERS benefits must pay its share of the plan's net pension liability before ending the plan. It must pay the greater amount measured on June 30, 2026, or on the termination date. Employers that miss required termination payments may owe interest set by the PERS board. PERS can seek payment in court or deduct unpaid amounts from other state payments to the employer.

Privacy and limits on account protections

The Treasurer must provide information about account choices, limits, risks, penalties, and possible effects on public assistance. Participant and account information must stay private, except when needed to run the program or when the participant agrees in writing. Mississippi does not guarantee investment returns or account values. Employers generally are not responsible for participants' choices, taxes, or losses; protections for some program matters apply when employers have no role in them.

Workers get retirement account choices

The standard account is a Roth individual retirement account invested in a target-date fund. Participants can stop saving, change investments, choose a traditional account if offered, and raise or lower contributions. The Treasurer may offer yearly increases of up to 1% of pay, but the rate cannot exceed 8%, and federal contribution limits still apply. After the three-year startup period, program fees cannot exceed 0.75% of program assets each year. Participants can move savings to an accepting retirement account or plan, but they must start the transfer. The Treasurer may offer regular retirement-income options, but those options and payments are not guaranteed.

State funds program with bonds

The law creates a state fund for Work and Save program costs. State spending from the fund requires legislative approval, and Mississippi can cover startup costs until the fund has enough money. The state can issue up to $200,000 in bonds for the fund, but no bonds can be issued after July 1, 2030. The state must repay the bonds. Certain financial groups can invest in the bonds, and public bodies can use them as security for public-fund deposits.

Charter schools join PERS rules

Public charter schools count as political subdivisions under the PERS rules. This brings them within rules that apply to political subdivisions and may affect school duties and employee coverage. The law does not set a specific benefit amount or individual coverage terms.

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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