in this issue employer legislation update...employer update please distribute this publication to...
TRANSCRIPT
Employer
Update
Please distribute this publication to all Administrative, Payroll, and Human Resource Personnel
As previously reported, effective July
1, the employer contribution rate will
increase for the Public Employees'
Retirement System of Mississippi (PERS)
from 14.26 percent to a fixed rate
of 15.75 percent. (See table below.)
Employers using a vendor or third party
to manage payroll should alert the
appropriate entity to the rate change as
soon as possible.
The rate increase is in conjunction
with the PERS Board of Trustees revised
funding policy that establishes a fixed
employer contribution rate and sets a
goal for PERS to be more than 80 percent
funded by 2042.
Under the funding policy, contribution
rates will no longer be established
annually based on a rolling 30-year
amortization period. The focus will be
on the long-term funded status of the
plan and minimizing the volatility in the
contribution rate.
Quarterly Publication w Spring 2013
In this Issue
Legislation 2
Regulatory Changes 2
Holiday Office Closings 2
Agency Joinder Agreement 3
Attorney General Opinions 3
PERS Q&A 3
Disability Retirement Guide 3
Online Forms Updates 4
Board News 4
Reminder:
Employer Contribution Rate to Increase July 1Retirement Education restructured for employer convenience
Public Employees' Retirement System of Mississippi (PERS) and Optional Retirement Plan (ORP)
Mississippi Highway Safety Patrol Retirement System (MHSPRS)
Supplemental Legislative Retirement Plan (SLRP)
2013 14.26% 9.00% $250,000 $50,000
2014 15.75% 9.00% $255,000 $51,000
Fiscal Year Employer Employee Maximum Annual ORP Annual 415 July 1 - June 30 Covered Earnings Contribution Limit
2013 37.00% 7.25% **
2014 TBD* TBD* **
2014 7.40% 3.00% Same as PERS
* To
be
dete
rmin
ed**
N
ot t
o ex
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the
ann
ual
sala
ry
of t
he C
omm
issi
oner
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ic S
afet
y
Employer and Employee Contribution Rates
Employer eUpdates
are a convenient
way to get
important PERS news fast! Visit
PERS online, www.pers.state.
ms.us, to sign up today.
PERS eUpdates
Beginning April 1, employers will be
able to schedule a visit from PERS to
best suit their organization's needs and
convenience.
PERS representatives provide your
organization's staff on-site presentations
about retirement procedures, use of
forms, and the effect of legislation on
retirement law, policy, and regulations.
They also offer one-on-one sessions, as
needed.
These representatives will now be
centralized in Jackson and available
by appointment to accommodate each
employer's schedule.
To arrange a visit from a representative,
call 601-359-3589 or 800-444-7377 or
e-mail [email protected].
Page 2 - Employer Update - Spring 2013
Regulation 35 (amended)
Filing an Application for Monthly Benefits and
Establishing an Effective Date of Retirement
Effective date February 1, 2013
• Amended § 101.2.b to incorporate the changes
to the names and numbers of the forms
that comprise the Application for Disability
Retirement;
• Added §§ 101.3.f, 101.3.g, 101.3.i, and 101.3.j
to incorporate certain existing rules relative
to the payment of dependent child survivor
benefits; and
• Added § 101.3.h to:
1. terminate the dependent child survivor
benefit when a child is no longer enrolled
as a full-time student (i.e., similar to the
rule that is already in place relative to a
child who marries);
2. cease the long-standing practice of
suspending and subsequently reinstating
dependent child survivor benefits when
a child withdraws from school and later
reenrolls; and
3. grant the executive director the
discretionary authority to approve the
reinstatement of the dependent child
survivor benefits in certain limited
circumstances.
PERS 2013 Legislative Update
These amendments to existing regulations were
recently approved by the PERS Board of Trustees.
To see all PERS Board of Trustees Regulations,
visit PERS online at www.pers.state.ms.us/
employerservices/selectedregulations.html.
PERS Board of Trustees Regulatory Changes
Approved by Governor House Bill 990, (Huddleston 15th) Approved March 21.
This legislation clarifies the investments section of the
law so that it is consistent with the current investment
environment and updates the investment opportunity set
to allow PERS to take advantage of additional investment
options.
House Bill 1174 (Currie) Approved March 20. This
legislation amends the definition of earned compensation
to: prospectively exclude the value of maintenance from
earned compensation effective July 1, 2013; grandfather
those who have maintenance reported to PERS as earned
compensation as of June 30, 2013; prospectively exclude
performance-based incentive payments from earned
compensation effective July 1, 2013; and clarify that
in-kind benefits are not reportable to PERS as earned
compensation.
Pending - As of March 22 House Bill 1015 (Smith 39th) March 18, the House
declined to concur with the Senate amendments to the
bill; so, the House has invited conference. This bill,
if enacted, would increase the amount of the driver’s
license reinstatement fee from $25 to $100 with $25
of the increased fee used for funding the Mississippi
Highway Safety Patrol Retirement System (MHSPRS) and
another $25 used for funding PERS. No revenue estimates
are known; however, this measure would provide
additional revenue for MHSPRS and for PERS.
House Bill 1623 (Frierson) March 20, the House declined
to concur with the Senate amendments to the bill; so,
the House has invited conference. This is PERS’ FY 2014
appropriation (budget) bill.
Senate Bill 2405 (Blount) March 22, the Senate
concurred with amended version of bill. Bill now goes to
Governor. If enacted, this bill would authorize counties
at their discretion to pay to PERS the required employer
contributions on the net fee income for constables.
PERS to close for holidays
Confederate Memorial Day .............. April 29
National Memorial Day/Jefferson Davis' Birthday ..................May 27
www.pers.state.ms.us - Page 3
August 3, 2012 - Dillard
No authority exists for a community hospital to
pay for retiree health coverage unless the retirees
are reemployed pursuant to Miss. Code Ann.
§ 25-11-127, or such coverage is provided by way
of a retirement plan authorized in Miss. Code Ann.
§ 41-13-35(5)(b).
November 27, 2012 - Polles
Section 49-1-13 of the Mississippi Code authorizes
the executive director of the Mississippi
Department of Wildlife, Fisheries, and Parks to
reemploy retired conservation officers as contract
workers, for the limited purpose of performing
seasonal law enforcement duties. Such
reemployed retirees would, however, be subject
to the limitations and restrictions set out in Miss.
Code Ann. § 25-11-127.
Q. One of our employees is retiring and does not
have a copy of his beneficiary's birth certificate.
Does he have to have this certificate to name this
beneficiary with PERS?
A. While a birth certificate is preferred, PERS
will accept a copy of a beneficiary's passport or
valid driver's license if the certificate cannot be
obtained.
Attorney General Opinions
PERS Q&A
PERS has created a new guide to help members and
employers navigate the disability retirement process.
The PERS Disability Retirement Guide, which can be
downloaded from www.pers.state.ms.us, provides insight
to the retirement process for individuals making a disability
retirement claim. Along with giving details about duty-
related and non-duty-related disability, the guide outlines
the application process and lists roles and responsibilities for
the applicant, the employer, and the PERS benefit analyst.
The guide also details each of the 11 forms used in the
disability retirement application process and provides insight
to both the Medical Board process and the appeals process.
Finally, the guide gives a what-to-expect overview to
applicants as they go through the disability application
process, as well as once they complete the process.
A similar guide for service retirement is being planned for
online publication later this year.
These documents are both new, so PERS welcomes input from
members and employers as to how we can improve them.
Please let us know how we can better serve you.
PERS Disability Retirement Guide now available online
Disability Retirement Guide
Providing Benefits for Life
Public Employees' Retirement System of Mississippi
Disability retirement benefits available
through the Public Employees' Retirement
System of Mississippi (PERS) provide
you with a secure income if you become
permanently sick or injured while employed
in a PERS-covered position and can no
longer perform the job's essential duties.
If you are an inactive member, disability
retirement coverage is only extended to
you upon proof that the qualifying disability
occurred within six months of termination
and that the disability was a direct cause
for termination from covered employment.
Your membership is considered inactive if
you are no longer working in any PERS-
covered position and have not retired or
received a refund of your contributions.
PERS provides two types of disability
retirement benefits: non-duty-related and
duty-related.
Non-Duty-Related Disability
To qualify for non-duty-related disability
retirement, you must meet the vesting
requirement for your Retirement Tier.
Members are covered for non-duty-related
disability retirement in one of two plans:
• Age-Limited Disability Plan -
Applicable to members employed
before July 1, 1992, who did not
elect the Tiered Disability Plan and
who have not received a refund of
contributions since July 1, 1992 (See
page 6.)
• Tiered Disability Plan - Applicable
to members employed before July 1,
1992, who elected the Tiered Disability
Plan; offered as sole plan selection to
new members who enter PERS on or
after July 1, 1992 (See page 7.)
If you are an inactive member who returns
to covered employment then applies for
non-duty-related disability retirement within
six months, you must be vested at the time
of application and must prove that you
were physically capable of performing the
job at the time of hire.
Duty-Related Disability
You may be eligible for duty-related
disability retirement if you become disabled
as a direct result of a physical injury
sustained from an accident or traumatic
event caused by external violence
or physical force that occurred in the
performance of official job duties. This
coverage begins on the first day of PERS-
covered employment. Duty-related disability
benefits are the higher of either 50 percent
of average compensation (tax-exempt) or
the non-duty-related disability amount.
Joinder AgreementsTown of MetcalfeSocial Security and retirement coverage for all
employees with the effective dates of December 31,
2012, and January 1, 2013, respectively.
West Rankin Utility AuthoritySocial Security and retirement coverage for all
employees with the effective dates of February 28,
2013, and March 1, 2013, respectively.
Page 4 - Employer Update - Spring 2013
Providing Benef its for Life
PERS Board of Trustees
Contact PERS800.444.7377 or 601.359.3589
PERS Employer Hotline601.359.2090
www.pers.state.ms.us
Disclosure This newsletter contains general information about your retirement system and is not a legal reference. For detailed explanations about all PERS retirement systems, call the PERS office or visit us online.
PRSRT STDU.S. Postage
PAIDJackson, MS
Permit No. 531429 Mississippi StreetJackson, MS 39201-1005
Board Chairman & Public Schools and Community/ Junior Colleges Representative Lee Childress
Retirees Representatives Virgil F. Belue Richard C. Miller
County Employees Representative Bill Benson
State Treasurer Lynn Fitch
Institutions of Higher Learning Representative Cecil L. Hill
Municipal Employees Representative Tom Lariviere
State Employees Representatives Susan M. Harris H.S. “Butch” McMillan
Gubernatorial Appointee Jack Wilson
The PERS online Forms Library has been updated in recent
months.
Our forms have been reformatted to improve efficiency and
accuracy in both completing and processing. Plus, we are
working to make our online forms interactive to better serve
our customers and improve staff workflow.
Furthermore, several forms have been added to the Forms
Library, including the recently reformatted disability
retirement application (forms DSBL 1 through DSBL 6), the
Notice of Appeal, the Public Information Request, and the
Employer Request for Member Information. These additional
forms are interactive, as well.
We urge you to bookmark the Forms Library page on our
website so that you can easily access it when you need a PERS
form. Using the forms PERS posts online ensures you are always
using the most up-to-date version of our forms.
We will continue making updates to the Forms Library during
the next several months, and we hope that you will find the
updates convenient and helpful. Please let us know if you have
any suggestions for us as we work to improve the library.
Online Forms Library updated
PERS mailed ballots, biographical information, and
candidate statements March 12 to eligible voters
for a runoff election to determine the new PERS
Board of Trustees retiree representative.
The candidates in the runoff are Dr. Randy D.
McCoy of Tupelo and Samuel (Sam) W. Valentine,
of Carthage. Votes must be cast by mail, phone,
or online by 5 p.m. April 11. Instructions on the
voting process are on the ballot that will be
mailed to PERS retirees.
The election schedule and a sample ballot are
available on the PERS website, www.pers.state.
ms.us, through April 11.
Board News
Retiree Runoff Election