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The Public Employees' Retirement System of Mississippi (PERS) will implement a new retirement tier—Tier 5—following passage of House Bill 1 during the Mississippi Legislature’s 2025 session.
Tier 5 is designed as a hybrid retirement plan, combining elements of both a defined benefit (DB) pension plan and a defined contribution (DC) plan.
Who Is Affected?
Membership in Tier 5 applies to individuals who:
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Are hired into PERS-covered positions on or after March 1, 2026, and
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Are new to PERS, or
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Previously participated in PERS but refunded their contributions.
Contribution Structure
Employees enrolled in Tier 5 will contribute a mandatory 9% of salary, allocated as follows:
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4% to the defined benefit (DB) component
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5% to the defined contribution (DC) component
Vesting Requirements
Employees in Tier 5 will vest after eight years of service.
Additional details about Tier 5, including plan design and frequently asked questions, are available on the PERS website:
https://www.pers.ms.gov/Tier5