Reemployment of Retirees | Human Resources Management

⚠ Important Changes to Reemployment of Retirees

Mississippi State University — Human Resources Management

What Changed

The required break in service (all options) for PERS retirees has been reduced from 90 days to 30 days.
A new reemployment option (Option C) allows eligible retirees to return full-time and earn up to 80% of the position's salary while continuing to receive retirement benefits.
Departments must ensure a bona-fide separation. Pre-arranged return-to-work agreements are prohibited.

Who Is Affected

Employees retiring under PERS and departments seeking to rehire retirees.
Employees on less than a 12-month basis are subject to additional timing requirements (no earlier than September 16 for MSU).
University administrators and some Tier 4/5 retirees are not eligible for Option C.

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

ORP Retirees

Optional Retirement Plan (ORP) retirees may return to work immediately following retirement without restrictions on employment. For university employment purposes, ORP retirees who return to work after retirement are treated as rehired retirees and are subject to the same employment processes applicable to rehired retirees under the Public Employees’ Retirement System (PERS). ORP rehired retirees are not required to complete a 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.

Members who retire under age 65 under tiers 4 or 5 with less than 30 years of service are not eligible. Excludes retirees serving as an administrator at a university or a community college or junior college and elected officials.

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

PERS Revised Form

Employees returning to work after retirement must complete the revised PERS Form 4B, Reemployment of PERS Service Retiree Certification/Acknowledgement

Departments are responsible for submitting a Form 4B:

Upon the retiree's initial reemployment;
At the beginning of each fiscal year for all rehired retirees; and
Whenever there is a change in employment conditions, such as job title, compensation, work schedule, or other employment terms.

PERS requires Mississippi State University to report a retiree's reemployment or any changes in employment status within five (5) days of the effective date. Departments should promptly submit the required documentation to HRM to ensure compliance.

Hiring Process for Rehired Retirees

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

1	Hiring department creates and routes the PARF (in PageUp) to the HR Business Partner to receive a blind posting link. Hiring Department forwards link to the rehired retiree.
2	The rehired retiree submits applicant materials via the blind posting link.
3	The Hiring Department routes the PARF through the appropriate chain of command for approvals.
4	Hiring department extends a job offer through PageUp to the rehired retiree.
5	New hire paperwork is completed, including PERS Form 4B for PERS retirees and submitted to HRM. For Option C, a written agreement is also required.