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 4/5 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:

PERS Reemployment Options: Option A, Option B, and Option C
Option A	Option B	Option C New
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.	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.	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.

Coverage is available for the employee and eligible dependents up to age 26; spouse coverage is not available.
The employee is responsible for the full premium.
MSU reports hours worked each month to Lumelight, which determines ACA eligibility.

Important: A retiree who waives or drops PERS retiree health coverage cannot later re-enroll in retiree coverage.

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 PERS From 4B Form 4B must be completed for the initial reemployment and as otherwise required by PERS. PERS Form 4B
4	Complete Written Agreement for Option C, if applicable For Option C appointments, submit Rehired Retiree Agreement to HRM. The executed agreement will be forwarded to PERS. Written Agreement for Rehired Retiree Option C
5	Submit EAF and rehired retiree paperwork. HRM will determine eligibility for Option C.
	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.