Reemployment of Retirees | Human Resources Management

⚠ Important Changes to Reemployment of Retirees

What Changed

The required break in service for PERS retirees has been reduced from 90 days to 30 days for all rehired retiree options.
A new reemployment option (Option C) allows eligible retirees to return up to full-time and earn up to 80% of the position's salary while continuing to receive their retirement benefits.

Who Is Affected

Employees retiring under PERS and departments seeking to rehire retirees.
University administrators and some Tier 4 or Tier 5 retirees are not eligible for Option C.

Effective July 1, 2026 Review eligibility requirements and reemployment options below before making employment decisions.

ORP Retirees

Retirement Status

ORP participants who meet PERS retirement eligibility may qualify for University retiree benefits, including tuition remission and retiree health coverage.

Returning to Work After Retirement

There is no required waiting period for an ORP retiree to return to work, but there must be a valid termination of employment. There can be no prearranged agreement to return to work, and ORP funds cannot be distributed until employment has ended.

Retirement Contributions

Less than half time and less than half pay: No PERS or ORP participation or contributions are required.
Half time or more, or half pay or more: Retirement plan participation is required. Employees returning to an ORP-covered position must resume ORP participation.

ORP rehired retirees do not complete PERS Form 4B.

PERS Retirees

Individuals who have retired from the University (or other State of Mississippi agency) may be reemployed in accordance with state law and the Public Employees' Retirement System (PERS) under Regulation 34.

30-Day Break in Service (effective July 1, 2026)

Where retirees previously had to have a 90-day break in service before returning to covered employment, law now requires a separation of only 30 days. Retirees who return to work before at least 30 days will forfeit their retirement benefit.

Any employee of an educational institution employed on less than a 12-month basis retiring at the end of one school year may not be reemployed in an educational institution any earlier than 30 days after the beginning of the next school year. For MSU, our school year begins on August 16. Therefore, 9-month employees may not be reemployed until on or after September 16.

Important: Pre-arranged agreements with recently retired or current employees to return to work are prohibited by law. Employees must have a bona-fide break in service before returning to work for a PERS-covered employer. Failure to comply may result in cancellation or forfeiture of retirement benefits.

PERS Reemployment Options

A service retiree may be employed with a covered employer and continue to receive service retirement benefits if reemployment conditions are met. See below for three reemployment options:

Option A

The retiree works for a period not to exceed one-half of the normal working days or hours for the position, and receives no more than one-half of the salary in effect for the position in any fiscal year.

Under this option, employers must pay PERS the employer contributions on the wages earned.

Option B

The retiree works long enough in any fiscal year to earn no more than 25 percent of his or her average compensation used in the calculation of his or her benefit.

Under this option, employers must pay PERS the employer contributions on the wages earned.

Option C New

The retiree may return to covered employment full-time and earn no more than 80 percent of the position's full salary in effect at the time of employment.

The following retirees are not eligible for Option C:

Tier 4 or Tier 5 members who retire before age 65 with an early retirement reduction;
Retirees serving as an administrator* at a university, community college or junior college; and,
Elected officials.

Under this option, MSU must pay both the employee and the employer PERS contributions on the wages earned.

*Administrator positions classified in EEO 1, Executive, Administrative, & Managerial according to the IHL Data Dictionary. Contact HRM for any questions regarding eligibility.

Health Insurance for Rehired Retirees

Rehired retirees who are determined to be full-time under the Affordable Care Act (ACA) monthly measurement method (working 30 or more hours per week) may be eligible for health coverage under the Contract Worker Base Plan.

Important: An individual who currently has PERS retiree health coverage cannot drop it and enroll in this plan.

Hiring Process for Rehired Retirees

Hiring departments must hire rehired retiree through PageUp in advance of the employee beginning work at MSU.

Hiring Process for Rehired Retirees: Step-by-step instructions
1	Determine the appropriate reemployment option. The department and HRM should determine which reemployment option applies.
2	Complete the hiring process. Complete the required PageUp process, as applicable.
3	Complete Employment Action Form (EAF), PERS Form 4B and Written Agreement for Option C, if applicable EAF PERS Form 4B Written Agreement for Rehired Retiree Option C
4	Submit EAF and rehired retiree paperwork to HRM for processing. HRM will determine eligibility for Option C.
5	Report changes Departments should notify HRM before making changes to a rehired retiree's position, compensation, FTE, work schedule, or other employment conditions so HRM can determine whether additional PERS documentation is required.