Lawmakers propose alternate return to work legislation for retired state employees

• The goal of the legislation is to allow experienced personnel to fill needed positions from educators to first responders.

A program that would allow retired Mississippi state employees to return to work with a state agency for 80 percent of what the position pays is now headed to the House of Representatives. 

If signed by the governor, SB 2911 would create an alternative route for retirees to return to state employment while still collecting their retirement benefits. 

State Senator Daniel Sparks (R) authored the bill which could allow experienced personnel to fill empty positions across the state. The current retirement system allows former state employees to return to work, but for only either 50 percent work and 50 percent pay, or 25 percent of their “high four,” the average of their highest paid four years of employment.

Previous variations of the state retirement system created a situation where there are a high number of retirees who are in their 40s, such as the PERS Tier 3 which allowed retirement after 25 years of service. Sen. Sparks said many are still working, just not for the state, except under certain conditions. 

“Often, these people are hired in a contract capacity, which is kind of circumventing the PERS contribution that we would have received on their work otherwise,” Sparks described.

In an effort to bring these experienced people with extensive knowledge in their respective fields back to the workforce officially, SB 2911 would allow them to negotiate with their former employer for up to 80 percent of what a particular position would pay as well as possibly more affordable health insurance. 

“It’s wage commensurate with the work you’re doing today,” Sparks explained. 

The senator said the benefit to the state retirement system is that not only does the experienced employee return, but contributions will still be made to PERS. Since state retirees can no longer contribute to PERS, the employer would be responsible for both the employer and employee contributions if they decide to hire them.

Additionally, the bill reduces the timeframe a former employee can return to work after retirement, from the current 90 days to 30 days. 

“We do feel like 30 days is a bona fide break in service, 90 seems to be a little lengthy,” Sparks said.

Those who take advantage of the alternate route will also not see a decrease, or an increase, in their benefits. 

“Their retirement is locked in. If they are in Tier 2, 3 or 4, that retirement is already fixed as they have retired under the rules of their tier,” Sparks added.

Implementation of this alternate route to employment with the state will help fill in the many empty positions through the state, advocates contend, such as educators, bus drivers, first responders and corrections officers.

There are some exceptions, namely returning retirees cannot fill the positions of superintendents, elected officials, or as an administrator of a university or community college. 

“These are not the positions that are vacant. These are not the pins we need. These are not the workers we’re looking for,” Sparks said.

The Senate passed the bill 51 to 1 on Monday, with Senator Hob Bryan (D) being the lone no vote. The House will now consider the legislation.