The Mississippi Retired Public Employees Association (MRPEA) represents the interests of more than 335,000 members, retirees and beneficiaries of the Public Employee Retirement System of Mississippi (PERS). We are pleased to offer these comments on PERS Regulation 34, Reemployment after Retirement. At its recent meeting on June 23, 2020 the PERS Board voted to revoke amendments to PERS Board Regulation 34 that became effective on December 17, 2019. As we understand it, Regulation 34 as amended removed the prohibition against PERS retirees continuing to receive a monthly retirement allowance while serving as a state legislator as long as the retiree 1) provides services for no more than half the normal working days or hours for the position, and 2) receives no more than half the salary, or the retiree works for a period of time that causes the retiree to receive no more than 25% of his or her average retirement compensation. The Board’s action to revoke Regulation 34 as amended was based on:
1. A letter from Attorney General Fitch to Ray Higgins dated May 20, 2020 suggesting revocation of PERS Board Regulation 34 as amended in part based on the Caldwell opinion issued by the Mississippi Attorney General’s office on May 19, 2020.
2. The Internal Revenue Service declining to issue a private letter ruling on the applicability of the Internal Revenue Service Code to PERS Board Regulation 34 as amended.
3. Advice received from the Board’s external legal advisor IceMiller on this matter.
PERS retirees represent a significant portion of the adult population in Mississippi. PERS members include not only state employees but also employees of Mississippi’s public schools, community colleges, universities, counties, cities and other political subdivisions. These individuals are committed to public service and Mississippi, understand the complexities of government and if allowed to do so, can help strengthen the Legislature by virtue of their education and diverse professional experience.
If this revocation stands, it will effectively prevent most PERS retirees from serving in the Legislature. PERS retirees are not wealthy people, on average receiving annual retirement allowances of only $24,433 in Fiscal Year 2019. While impediments exist to PERS retirees serving in the Legislature, they can serve in local government positions in Mississippi for which salaries are set by statute (for example, county boards of supervisors) without penalty of losing their monthly retirement allowance. In addition, retirees from the private and nonprofit sectors can serve in the Legislature without harming their retirement allowances at full legislative salary along with federal government retirees and government retirees from other states. Why would the State want to discriminate against PERS retirees in this manner? This situation has already had a chilling effect, impacting four retirees who were recently elected by voters in their districts to represent them in the Legislature.
We understand the difficult situation facing you and the PERS Board regarding this matter. One thing was made clear at the June 23, 2020 meeting of the PERS Board. This situation is fixable via a change in state statutes, and should be able to be done in a manner that passes muster with the IRS. MRPEA strongly urges the PERS Board to take any and all action necessary in support of removing the prohibition against PERS retirees receiving a monthly retirement allowance while serving as a state legislator. Rest assured you will have our full support.