Miss. Admin. Code Title 27 — Personnel

PERSONAL SERVICES CONTRACT REVIEW BOARD PERSONAL SERVICES CONTRACT REVIEW BOARD

Part 1 PSCRB Rules and Regulations

27 Miss. Admin. Code Pt. 1 PSCRB Rules and Regulations

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CHAPTER 1 – PURPOSE OF BOARD AND REGULATION DEVELOPMENT ...................... 5 1- 101 GENERAL PROVISIONS ............................................................................................... 5 1- 102 SUPPLEMENTARY GENERAL PRINCIPLES OF LAW APPLICABLE .................... 6 1- 103 REQUIREMENT OF GOOD FAITH .............................................................................. 6 1- 104 APPLICATION OF THE REGULATIONS .................................................................... 6 1- 105 SEVERABILITY .............................................................................................................. 6 1- 106 DURATION ...................................................................................................................... 7 1- 201 DEFINITIONS .................................................................................................................. 7 1- 301 PUBLIC ACCESS TO PROCUREMENT INFORMATION .......................................... 9 CHAPTER 2 – ORGANIZATION ............................................................................................... 10 2- 101 CREATION AND MEMBERSHIP OF THE MISSISSIPPI PERSONAL SERVICE CONTRACT REVIEW BOARD .............................................................................................. 10 2- 102 POLICY AND PROCEDURE FOR MEETINGS .......................................................... 10 2- 103 AUTHORITY AND DUTIES OF THE PERSONAL SERVICE CONTRACT REVIEW BOARD .................................................................................................................... 11 2- 104 CONTINOUS INTERNAL AUDIT REQUIRED .......................................................... 13 CHAPTER 3 – SOURCE SELECTION AND CONTRACT FORMATION .............................. 14 3- 101 CONTRACTING PROCEDURES ................................................................................. 14 3- 102 GENERAL PROVISIONS ............................................................................................. 19 3- 103 NOVATION/BUYOUT OR CHANGE OF NAME ...................................................... 22 3- 201 METHOD OF SOURCE SELECTION .......................................................................... 22 3- 202 COMPETITIVE SEALED BIDDING ............................................................................ 24 3- 203 COMPETITIVE SEALED PROPOSALS ...................................................................... 39 3- 204 COMPETITIVE SEALED QUALIFICATIONS ........................................................... 49

3- 205 SMALL PURCHASES ................................................................................................... 55 3- 206 SOLE-SOURCE PROCUREMENT ............................................................................... 57 3- 207 EMERGENCY PROCUREMENT ................................................................................. 60 3- 208 PREAPPROVED VENDOR LISTS ............................................................................... 60 3- 301 CANCELLATION OF SOLICITATIONS..................................................................... 61 3- 401 RESPONSIBILITY OF BIDDERS, OFFERORS, AND RESPONDENTS .................. 65 3- 402 PREQUALIFICATION OF PROSPECTIVE CONTRACTORS .................................. 66

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3- 403 COST OR PRICING DATA ........................................................................................... 67 3- 501 TYPES OF CONTRACTS ............................................................................................. 72 3- 502 MULTI-TERM CONTRACTS ....................................................................................... 76 3- 503 MULTIPLE SOURCE CONTRACTING ...................................................................... 78 3- 601 RIGHT TO INSPECT FACILITY.................................................................................. 80 3- 602 RIGHT TO AUDIT RECORDS ..................................................................................... 81 3- 701 FINALITY OF DETERMINATIONS ............................................................................ 84 3- 702 REPORTING OF ANTI-COMPETITIVE PRACTICES ............................................... 85 3- 703 RETENTION OF PROCUREMENT RECORDS .......................................................... 87 CHAPTER 4 – CONTRACT ADMINISTRATION .................................................................... 88 4- 101 MODIFICATION AND TERMINATION OF CONTRACTS FOR SERVICES ......... 88 4- 102 MONITORING CONTRACT PERFORMANCE .......................................................... 95 CHAPTER 5 – LEGAL AND CONTRACTUAL REMEDIES ................................................... 96 5- 101 DEBARMENT OR SUSPENSION ................................................................................ 96 5- 201 APPEAL AND REVIEW OF PERSONAL SERVICE CONTRACT REVIEW BOARD DECISIONS ............................................................................................................. 100 5- 202 DISCONTINUANCE OF CONTRACTOR’S APPEAL ............................................. 100 5- 203 VIOLATION OF LAW ................................................................................................ 101 5- 204 REMEDIES PRIOR TO AN AWARD......................................................................... 101 5- 205 REMEDIES AFTER AN AWARD .............................................................................. 102 CHAPTER 6 – ETHICS IN CONTRACTING FOR PERSONAL AND PROFESSIONAL SERVICES .................................................................................................................................. 103 6- 101 DEFINITIONS OF TERMS USED IN THIS CHAPTER ........................................... 103 6- 201 STATEMENT OF POLICY ......................................................................................... 105 6- 202 GENERAL STANDARDS OF ETHICAL CONDUCT .............................................. 105 6- 203 EMPLOYEE CONFLICT OF INTEREST ................................................................... 106 6- 204 GRATUITIES ............................................................................................................... 107 6- 205 PROHIBITION AGAINST CONTINGENT FEES ..................................................... 108 6- 206 RESTRICTION ON EMPLOYMENT OF PRESENT EMPLOYEES ........................ 110 6- 207 RESTRICTION ON FORMER EMPLOYEES IN MATTERS CONNECTED WITH THEIR FORMER DUTIES ......................................................................................... 110

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6- 208 DISQUALIFICATION OF BUSINESS WHEN AN EMPLOYEE HAS A FINANCIAL INTEREST ....................................................................................................... 111 6- 209 RESTRICTION ON EMPLOYEES PURCHASING UNDER TERMS OF A STATE CONTRACT .............................................................................................................. 112 6- 210 USE OF CONFIDENTIAL INFORMATION.............................................................. 112 6- 211 BOARD MEMBER ETHICS ....................................................................................... 112 CHAPTER 7 – POLICIES AND PROCEDURES FOR CONTRACT APPROVAL ................ 116 7- 101 GENERAL PROVISIONS ........................................................................................... 116 7- 102 PROCEDURES FOR PROCUREMENT ..................................................................... 116 7- 103 COMPETITIVE PROCUREMENT EXCEPTION ...................................................... 117 7- 104 PRE-REVIEW OF INVITATIONS FOR BIDS, REQUESTS FOR PROPOSALS, AND REQUESTS FOR QUALIFICATIONS ........................................................................ 117 7- 105 CONTRACT SUBMISSION DATES .......................................................................... 117 7- 106 CONTRACT APPROVAL AND REJECTION ........................................................... 118 7- 107 DEADLINE EXCEPTION REQUESTS ...................................................................... 118 7- 108 REGULATORY BOARD APPROVAL ...................................................................... 118 7- 109 NEW REQUEST .......................................................................................................... 118 7- 110 RENEWALS ................................................................................................................. 119 7- 111 MODIFICATIONS ....................................................................................................... 119 7- 112 EMERGENCY CONTRACTS ..................................................................................... 120 7- 113 PROTEST DOCUMENTS ........................................................................................... 120 7- 114 POST-AWARD VENDOR DEBRIEFING .................................................................. 120 7- 115 UTILIZATION OF STATE PROPERTY BY CONTRACTOR ................................. 122 7- 116 TRANSFER OF SPENDING AUTHORITY ............................................................... 122 7- 117 EXECUTED CONTRACTS ......................................................................................... 122 7- 118 SPAHRS PROCEDURES FOR PSCRB CONTRACTS ............................................. 122 7- 119 DHS OR DCPS PERSONAL SERVICE CONTRACTS ............................................. 123 CHAPTER 8 – RULEMAKING AND DECLARATORY OPINIONS .................................... 125 8- 101 RULEMAKING ORAL PROCEEDINGS ................................................................... 125 8- 201 DECLARATORY OPINIONS ..................................................................................... 126 APPENDICES ............................................................................................................................ 130 APPENDIX A ......................................................................................................................... 131

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Agencies under PSCRB Purview ............................................................................................ 131 APPENDIX B ......................................................................................................................... 134 Independent Contractor/Contract Worker Determination ....................................................... 134 APPENDIX C ......................................................................................................................... 137 Required Clauses in Contracts for Services ............................................................................ 137 APPENDIX D ......................................................................................................................... 143 Required Clauses in IFBs, RFPs, and RFQs ........................................................................... 143 APPENDIX E .......................................................................................................................... 148 Clauses Available for Use in Service Contracts...................................................................... 148 APPENDIX F .......................................................................................................................... 162 Clauses Available for Use in Solicitations for Bids, Proposals, or Statements of Qualifications .......................................................................................................................... 162

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CHAPTER 1 – PURPOSE OF BOARD AND REGULATION DEVELOPMENT

1- 101 GENERAL PROVISIONS

1- 101.01 Purpose of the Personal Service Contract Procurement Regulations

In 1997, the Mississippi Legislature established the Personal Service Contract Review Board (hereinafter referred to as “PSCRB”), and authorized it to “[p]romulgate rules and regulations governing the solicitation and selection of contractual services personnel . . . .” Mississippi Code Annotated § 25-9-120(3)(a). The purpose of the Personal Service Contract Review Board Rules and Regulations is to set forth rules and regulations, along with other pertinent information, that agencies should follow in the procurement of personal services. The policies and procedures set forth herein apply only to those agencies which fall under the authority of the PSCRB. With the exception of the Mississippi Department of Transportation, agencies under the authority of the PSCRB include those agencies under the authority of the Mississippi State Personnel Board (hereinafter referred to as “MSPB”). See Appendix A. This manual is intended to be a comprehensive presentation of regulations relative to obtaining personal and professional services contracts pursuant to Mississippi Code Annotated § 25-9- 120. Further, it shall serve as a source of information for contractors, instructing them as to the proper procedures that must be followed in doing business with the State of Mississippi.

1- 101.02 Interpretation of Regulations

1- 101.02.01 Interpretation, Purposes and Policies

These regulations shall be construed and applied to promote the underlying purposes and policies, which are:

(a) to simplify, clarify, and modernize the regulations governing contracting for personal and professional services by agencies of the State of Mississippi;

(b) to permit the continued development of procurement policies and practices;

(c) to provide for increased public confidence in the procedures followed in the public procurement for personal services contracts;

(d) to ensure the fair and equitable treatment of all persons who deal with the procurement system of this State for personal service contracts;

(e) to provide increased economy in the State of Mississippi procurement activities and to maximize to the fullest extent practicable the purchasing value of public funds of the State;

(f) to foster effective broad-based competition with the free enterprise system; and,

(g) to provide safeguards for maintenance of a procurement system of quality and integrity.

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1- 101.02.02 Singular-Plural and Gender Rules

In these regulations, unless the context requires otherwise:

(a) words in the singular number include the plural, and those in the plural include singular; and,

(b) words of a particular gender include any gender and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender.

1- 101.03 Purpose and Implementation of these Regulations

These regulations, issued by the PSCRB, establish policies, procedures, and guidelines relating to the procurement, management, and control of personal and professional services contracts, as applicable, under the authority of these regulations. These regulations are designed to achieve maximum practicable uniformity throughout the State. Hence, implementation by and within Mississippi agencies shall be consistent with these regulations and any other regulations required by the funding source which may be more stringent.

1- 102 SUPPLEMENTARY GENERAL PRINCIPLES OF LAW APPLICABLE

Subject to principles of law and equity, these regulations will govern the creation and administration of personal and professional services contracts.

1- 103 REQUIREMENT OF GOOD FAITH

These regulations require all parties involved in the negotiation, performance, or administration of personal and professional services contracts to act in good faith.

1- 104 APPLICATION OF THE REGULATIONS

These regulations shall apply to every expenditure of public funds irrespective of source; however, in the event of a conflict, the guidelines of a grant, a gift, or self-generated funds shall prevail. Violation of these regulations shall carry such penalties as may be applicable under state law.

1- 105 SEVERABILITY

If any provision of these regulations or any application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision or application of these regulations which can be given effect without the invalid provision or application, and to this end the provisions of these regulations are declared to be severable.

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1- 106 DURATION

These regulations, when approved by the PSCRB as authorized by Mississippi Code Annotated § 25-9- 120, shall be in effect as written until amended or repealed by the PSCRB.

1- 201 DEFINITIONS

The words defined in this section shall have the meaning set forth below whenever they appear in the regulations, unless:

(a) the context in which they are used clearly requires a different meaning; or,

(b) a different definition is prescribed for a particular chapter or provision.

1- 201.01 Definition of Terms Used in the Regulations

(a) Agency shall be defined as any state board, commission, committee, council, department or unit thereof created by the constitution or statutes if such board, commission, committee, council, department, unit, or the head thereof is authorized to appoint subordinate staff by the constitution or statute, except a legislative or judicial board, commission, committee, council, department, or unit thereof, Institutes of Higher Learning, Community College Board, and the Mississippi Department of Transportation.

(b) Agency Head means the person in charge of an Agency whether that person’s title is Director, Executive Director, Commissioner, etc. The term “Agency Head” shall also encompass a designee duly appointed by the Agency Head, except with regard to written determinations under Section 3-206 (Sole-Source Procurement) and Section 3-207 (Emergency Procurement).

(c) Board shall mean the Personal Service Contract Review Board.

(d) Business means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other nonpublic legal entity.

(e) Change Order means a written order signed by the Procurement Officer directing the contractor to make changes which the changes clause of the contract authorizes the Procurement Officer to order without the consent of the contractor.

(f) Consultant means the person holding the position as Contract Analyst with the PSCRB.

(g) Contract means all types of agreement for the procurement of services, regardless of what they may be called between at least two parties.

(h) Contract Modification means any written alteration in contract requirements, deliverables, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.

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(i) Contractor means any person having a contract with a governmental body.

(j) Data means recorded information, regardless of form or characteristic.

(k) Day means calendar day, unless otherwise specified.

(l) Designee means a duly authorized representative of a person holding a superior position.

(m) Employee means an individual who performs services for a governmental body by virtue of an employee/employer relationship with the governmental body.

(n) May denotes the permissive.

(o) MAGIC means Mississippi’s Accountability System for Government Information and Collaboration. See SPAHRS.

(p) Person means any business, individual, union, committee, club, other organization, or group of individuals.

(q) Procurement means buying, purchasing, or otherwise acquiring any services. It also includes all functions that pertain to the obtaining of any services, including description of requirements, selection and solicitation of sources, preparation and award of contract and all phases of contract administration.

(r) Procurement Officer means any agency personnel duly authorized to enter into and administer contracts and make written determinations with respect thereto. The term also includes an authorized agency representative acting within the limits of authority.

(s) Purchasing Agency means any governmental body which is authorized by regulations to enter into contracts.

(t) Regulation means a governmental body’s statement, having general or particular applicability and future effect, designed to implement, interpret, or prescribe law or policy, or describing organization, procedure, or practice requirements, which has been promulgated in accordance with the Mississippi Administrative Procedures Act, Mississippi Code Annotated §§ 25-43-1 et seq.

(u) Services mean the furnishing of labor, time, or effort by a contractor, not usually involving the delivery of a specific end product other than that which is incidental to the required performance.

(v) Shall denotes the imperative.

(w) SPAHRS means the State Payroll and Human Resources System or any other state system that replaces SPAHRS, including Mississippi’s Accountability System for Government Information and Collaboration (hereinafter referred to as “MAGIC”).

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1- 301 PUBLIC ACCESS TO PROCUREMENT INFORMATION

Procurement information and any release of such information is subject to the Mississippi Public Records Act, Mississippi Code Annotated §§ 25-61-1 et seq., and Mississippi Code Annotated § 79-23-1.

Contracts for personal or professional services that are awarded or executed by any state agency, including the Department of Information Technology Services and the Department of Transportation, are not exempt from the Mississippi Public Records Act. See Mississippi Code Annotated § 25-1- 100(5).

For all personal and professional services contracts awarded by state agencies, the provisions of the contract which contain the personal or professional services to be provided, the price to be paid, and the term of the contract cannot be deemed a trade secret or confidential commercial or financial information, and shall be available for examination, copying, or reproduction in accordance with the Mississippi Public Records Act. See Mississippi Code Annotated § 25-61- 9(7).

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CHAPTER 2 – ORGANIZATION

2- 101 CREATION AND MEMBERSHIP OF THE MISSISSIPPI PERSONAL SERVICE CONTRACT REVIEW BOARD

During the 1997 Regular Session, the Mississippi Legislature enacted legislation creating the Personal Service Contract Review Board. Mississippi Code Annotated § 25-9- 120 provides that the PSCRB is to be composed of the Mississippi State Personnel Board Executive Director; two individuals appointed by the Governor with the advice and consent of the Senate; two individuals appointed by the Lieutenant Governor with the advice and consent of the Senate; and the Executive Director of the Department of Finance and Administration, serving as an ex officio member. The MSPB Executive Director shall be chairman and shall preside over the meetings of the PSCRB.

2- 101.01 Terms of the Appointees

One member appointed by the Governor will serve a term ending June 30, 2017, and the other member appointed by the Governor will serve a term ending June 30, 2020. One member appointed by the Lieutenant Governor will serve a term ending June 30, 2018, and the other member appointed by the Lieutenant Governor will serve a term ending June 30, 2019. After the expiration of the initial terms, those appointed members’ terms shall be a period of four years from the expiration date of the previous term and until such time as the member’s successor is duly appointed and qualified.

2- 102 POLICY AND PROCEDURE FOR MEETINGS

The Board shall annually elect a vice-chairman, who shall serve in the absence of the chairman. No business shall be transacted, including adoption of rules or procedure, without the presence of a quorum of the Board. Three members shall be a quorum. No action shall be valid unless approved by the chairman and two other of those members present and voting, entered upon the minutes of the Board and signed by the chairman. Necessary clerical and administrative support for the Board shall be provided by MSPB. Minutes shall be kept of the proceedings of each meeting, copies of which shall be filed on a monthly basis with the Chairmen of the Accountability, Efficiency, and Transparency Committees of the Senate and House of Representatives.

The PSCRB will hold one regularly scheduled meeting the Tuesday before the third Thursday every month at the MSPB Offices in Jackson, Mississippi unless a special meeting is called by the PSCRB Chairman. Notice of meetings may be found posted on the MSPB website (http://www.mspb.ms.gov) and the Mississippi Public Meeting Notices website (https://www.ms.gov/dfa/pmn).

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2- 103 AUTHORITY AND DUTIES OF THE PERSONAL SERVICE CONTRACT REVIEW BOARD

The PSCRB has the following powers and responsibilities as delineated in Mississippi Code Annotated § 25-9- 120(3)(a) through (j):

(a) Promulgate rules and regulations governing the solicitation and selection of contractual services personnel including personal and professional services contracts for any form of consulting, policy analysis, public relations, marketing, public affairs, legislative advocacy services or any other contract that the board deems appropriate for oversight, with the exception of any personal service contracts entered into for computer or information technology-related services governed by the Mississippi Department of Information Technology Services, any personal service contracts entered into by the Mississippi Department of Transportation, any personal service contracts entered into by the Department of Human Services through June 30, 2018, which the Executive Director of the Department of Human Services determines would be useful in establishing and operating the Department of Child Protection Services, any personal service contracts entered into by the Department of Child Protection Services through June 30, 2019, and any contract for attorney, accountant, auditor, architect, engineer, and utility rate expert services. Any such rules and regulations shall provide for maintaining continuous internal audit covering the activities of such agency affecting its revenue and expenditures as required under Mississippi Code Annotated § 7- 7- 3(6)(d). Any rules and regulation changes related to personal and professional services contracts that may be proposed by the Personal Service Contract Review Board shall be submitted to the Chairmen of the Accountability, Efficiency and Transparency Committees of the Senate and House of Representatives at least fifteen (15) days prior to the board voting on the proposed changes, and such rules and regulation changes, if adopted, shall be promulgated in accordance with the Mississippi Administrative Procedures Act;

(b) Approve all personal and professional services contracts involving the expenditures of funds in excess of Seventy-Five Thousand Dollars ($75,000);

(c) Develop mandatory standards with respect to contractual services personnel which require invitations for public bid, requests for proposals, record keeping, and financial responsibility of contractors. The Personal Service Contract Review Board shall, unless the contract is exempt from competitive procurement under Mississippi Code Annotated § 25-9- 120(3) (c), (d), or (j), require the agency involved to advertise such contract for public bid, and may reserve the right to reject any or all bids;

(i) Any agency that seeks to procure personal or professional service contracts that are required to be approved by the Personal Service Contract

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Review Board may petition for relief from any requirement that the agency use competitive bidding as a procurement method. The agency shall be required to show to the Personal Service Contract Review Board's satisfaction one (1) of the following:

1. Federal law or federal court order has established limitations on the use of competitive bidding for the personal or professional contracts the agency is seeking to procure; or

2. The agency is required to hire professionals whose members are prohibited from bidding by the rules of professional conduct promulgated by the regulating agency or agencies for that professional; or

3. The agency can establish that the use of competitive bidding will be counterproductive to the business of the agency.

(ii) If the Personal Service Contract Review Board determines that competitive bidding shall not be required for the particular personal or professional service the agency seeks to procure, then the Personal Service Contract Review Board shall direct the agency to establish a competitive procurement procedure for selecting the personal or professional service contract that ensures open, transparent procedures for making a selection. Such procedures shall include, but not be limited to, qualifications based selection or requests for qualifications. The Personal Service Contract Review Board shall also have the authority to audit the records of any agency to ensure it has used competitive procedures to contract for the personal or professional service;

(d) Prescribe certain circumstances whereby Agency Heads may enter into contracts for personal and professional services without receiving prior approval from the PSCRB. The PSCRB may establish a preapproved list of providers of various personal and professional services for set prices with which state agencies may contract without bidding or prior approval from the board;

(e) To provide standards for the issuance of requests for proposals, the evaluation of proposals received, consideration of costs and quality of services proposed, contract negotiations, the administrative monitoring of contract performance by the agency and successful steps in terminating a contract;

(f) To present recommendations for governmental privatization and to evaluate privatization proposals submitted by any state agency;

(g) To authorize personal and professional service contracts to be effective for more than one (1) year provided a funding condition is included in any such

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multiple year contract, except the State Board of Education, which shall have the authority to enter into contractual agreements for student assessments for a period up to ten years. The State Board of Education shall procure these services in accordance with the Personal Service Contract Review Board procurement regulations;

(h) To request the State Auditor to conduct a performance audit on any personal or professional service contract;

(i) Prepare an annual report to the Legislature concerning the issuance of personal service contracts during the previous year, collecting any necessary information from state agencies in making such report; and,

(j) Develop and implement standards and procedures for the approval of any sole-source contract for personal and professional services regardless of the value of the procurement.

2- 103.01 Procurement Regulations

Regulations shall be promulgated with approval of the PSCRB in accordance with authority granted under Mississippi Code Annotated § 25-9- 120.

2- 103.02 Discretionary Authority

The PSCRB shall have the discretion to grant exceptions to these regulations when it is determined that it is in the best interest of the State to do so and in keeping with the requirements of Mississippi Code Annotated § 25-9- 120.

2- 103.03 Amendment to the Regulations

These regulations may be amended by the Board as authorized in Mississippi Code Annotated § 25-9- 120 by submitting any changes to the Chairmen of the Accountability, Efficiency, and Transparency Committees of the Senate and House of Representatives at least fifteen days prior to the board voting on the proposed changes and in compliance with the Administrative Procedures Law.

2- 104 CONTINOUS INTERNAL AUDIT REQUIRED

In conformity with Mississippi Code Annotated §§ 7- 7- 3(6)(d) and 25-9- 120(3), each state agency shall, through its governing board or agency head, maintain a continuous internal audit covering the activities of such agency affecting its revenues and expenditures for personal and professional services contracts. Each agency shall further maintain an internal system of pre- auditing claims, demands, and accounts against the agency to adequately ensure that only valid claims, demands, and accounts will be paid.

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CHAPTER 3 – SOURCE SELECTION AND CONTRACT FORMATION

3- 101 CONTRACTING PROCEDURES

3- 101.01 Definition of Terms Used in this Chapter

(a) Award is the acceptance by an agency of a bid or proposal submitted by a vendor with the intention of entering into a contract for services.

(b) Bid shall be defined as an offer submitted by a prospective contractor in response to an Invitation for Bid.

(c) Capability as used in Section 3-101.01(w) (Definitions, Responsible Bidder, Offeror, or Respondent), means capability at the time of award of the contract.

(d) Competitive Bidding includes Invitations for Bids, Requests for Proposals, Requests for Qualifications, and any other alternative, generally accepted procurement method. See MS AG Op., Mosley (October 23, 2015).

(e) Competitive Sealed Bidding is the process of inviting and obtaining bids from competing sources in response to advertised competitive specifications, through the issuance of an Invitation for Bids (IFB), by which an award is made to the lowest and best bidder meeting the specifications and does not include discussions or negotiations with bidders.

(f) Competitive Sealed Proposals is the process of requesting and obtaining proposals from competing sources in response to advertised competitive specifications, through the issuance of a Request for Proposals (RFP), by which an award is made to the offeror who receives the highest score based on weighted evaluation criteria outlined in the RFP and includes discussions and negotiations with offerors.

(g) Competitive Sealed Qualifications is the process of requesting and obtaining statements of qualifications from competing sources in response to advertised competitive specifications, through the issuance of a Request for Qualifications (RFQ), by which an award is made to the respondent who receives the highest score based on weighted evaluation criteria outlined in the RFQ and includes discussions with respondents.

(h) Contract Worker, for purposes of these regulations, is a worker under contract with the State who meets the requirements for a contract worker under the Internal Revenue Code (See Appendix B) and is compliant with the applicable rules and regulations as stated herein.

(i) Cost Analysis is the evaluation of cost data for the purpose of arriving at costs actually incurred or estimates of costs to be incurred, prices to be paid, and costs to be reimbursed.

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(j) Cost Data is information concerning the actual or estimated cost of labor, material, overhead, and other cost elements which have been actually incurred or which are expected to be incurred by the contractor in performing the contract.

(k) Cost-Reimbursement Contract means a contract under which a contractor is reimbursed for costs which are allowable and allocable in accordance with contract terms and the provisions of these regulations, and may receive a fee.

(l) Discussions, as used in the source selection process, means an exchange of information or other manner of negotiation during which the offeror and an agency may alter or otherwise change the conditions, terms, and price of the proposed contract. Discussions may be conducted in connection with competitive sealed proposals, competitive sealed qualifications, sole-source, and emergency procurements; discussions are not permissible in competitive sealed bidding (except to the extent permissible in the first phase of multi- step sealed bidding).

(m) Fixed Price Contract means a contract providing for a firm price, or a price that may be adjusted only in accordance with contract clauses providing for revision of the contract price under stated circumstances.

(n) Invitation for Bid means all documents, whether attached or incorporated by reference, utilized for soliciting competitive or multi-step competitive sealed bids.

(o) Net-of-Fee Contract means a contract in which there is no expenditure of state funds from any funding source (state, federal or other).

(p) Prequalification for Inclusion on Bidders Lists means determining in accordance with Section 3-402 (Prequalification of Prospective Contractors) that a prospective bidder or offeror satisfies the criteria established for being included on the bidders list.

(q) Price Analysis is the evaluation of price data, without analysis of the separate cost components and profit as in cost analysis, which may assist in arriving at prices to be paid and costs to be reimbursed.

(r) Price Data is factual information concerning prices, including profit, for supplies services, or construction substantially similar to those being procured. In this definition, “prices” refer to offered or proposed selling prices, historical selling prices, and current selling prices of such items. This definition refers to data relevant to both prime and subcontract prices.

(s) Proposal is the document submitted by the offeror in response to a Request for Proposal to be used as the basis for negotiations for entering into a contract. A proposal is usually requested in cases where the selection of a contractor is to be made on the basis of the performance that is offered rather than on that of price alone and may require an outline of details such as the vendor’s qualifications and experience and the identification of problems and proposed solutions in addition to details of price.

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(t) Purchase Description means the words used in a solicitation to describe the services to be purchased and includes the statement of work or deliverables attached to, or made a part of, the solicitation.

(u) Request for Proposal means all documents, whether attached or incorporated by reference, utilized for soliciting competitive proposals from potential vendors. A Request for Proposals should contain all evaluation criteria, including price and the weight for scoring each of the criteria. It should outline the intended procurement process and include all information required herein.

(v) Request for Qualifications means all documents, whether attached or incorporated by reference, utilized for soliciting statements of qualifications from potential vendors. A Request for Qualifications should contain all evaluation criteria and the weight for scoring each of the criteria. It should outline the intended procurement process and include all information required herein.

(w) Responsible Bidder, Offeror, or Respondent means a person who has the capability in all respects to perform fully the contract requirements and the integrity and reliability which will assure good faith performance.

(x) Responsive Bidder, Offeror, or Respondent means a person who has submitted a bid, proposal, or statement of qualifications which conforms in all material respects to the Invitation for Bid, Request for Proposal, or Request for Qualifications.

(y) Solicitation means an Invitation for Bid, a Request for Proposal, a Request for Qualifications, a request for quotations, or any other document issued by the State for the purpose of soliciting bids, proposals, or statements of qualifications relative to performing a state contract.

(z) Statement of Qualifications is the document submitted by the respondent to a Request for Qualifications to be used as the basis for a determination that the respondent is qualified or has specialized expertise to perform the scope of work or services required by the agency.

3- 101.02 Exemptions Not Requiring Approval

By authority of the Mississippi Legislature, service contracts of $75,000 or less do not require approval of the PSCRB. Contracts which do not exceed $75,000 shall follow the procedures set forth in Section 3-205 (Small Purchases). The following are exempt from the purview of the PSCRB in accordance with Mississippi Code Annotated § 25-9-120(3)(a) and as determined by the PSCRB when performing duties for which they are licensed or certified:

(a) Accountant;

(b) Engineer;

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(c) Architect;

(d) Attorney;

(e) Utility rate expert services;

(f) Auditor; and,

(g) Any contracting authority exempt by State statute (Mississippi Code Annotated § 25-9- 120) including, but not limited to,

1. computer or information technology related services governed by the Mississippi Department of Information Technology Services;

2. personal service contracts entered into by the Mississippi Department of Transportation;

3. contracts for equipment repairs governed by Mississippi Code Annotated § 31-7- 13;

4. contracts to manage trust funds by the Board of Trustees of the Public Employees’ Retirement System, including, but not limited to, actuarial, custodial banks, cash management, investment consultant, and investment management contracts;

5. contracts entered into by the Department of Human Services through June 30, 2018, which the Executive Director of the Department of Human Services (DHS) determines would be useful in establishing and operating the Department of Child Protection Services (DCPS) after complying with Section 7-119; and

6. personal service contracts entered into by DCPS through June 30, 2019 after complying with Section 7-119.

If any agency determines that the vendor is performing licensed or certified duties, the agency should document its determination and include such documentation in the contract file.

The application of these exceptions shall be narrowly construed in favor of open, competitive bidding, whenever possible.

3- 101.03 Personal Liability

Mississippi Code Annotated § 31-7- 57, holds state employees personally liable if they authorize or make a solicitation or award of a contract in violation of law.

3- 101.04 Contract Workers

A contract worker is a worker under contract with an agency who meets the requirements for a contract worker under the Internal Revenue Code for federal employment tax purposes. See

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Appendix B. Under these regulations, the usual common law rules are applicable to determine and require that the contract worker is an employee and not an independent contractor, requiring evidence of lawful behavioral control, lawful financial control, and lawful relationship of the parties. The agency shall make a written determination of this finding and maintain it in the procurement file. If the selected worker is a PERS retiree, the agency must be in compliance with the obligations outlined for the employer in Mississippi Code Annotated § 25-11-127. The PSCRB’s authority over contracts for contract workers is the same as its authority over contracts for independent contractors.

Contract worker contracts must be competitively bid if the total contract value exceeds the $75,000 threshold. An agency may procure contract workers through the Alternative Competitive Procurement for Contract Workers, a Request for Qualifications, or another generally accepted method of competitive procurement in compliance with Section 3-201.03 (Alternative Procurement Procedures).

3- 101.04.1 Alternative Competitive Procurement for Contract Worker Contracts when Pricing is Set by the Agency

Under this method of procurement, the agency sets the pricing for a contract worker contract or contracts. The procurement shall be publicized on the Mississippi Contract/Procurement Opportunity Search Portal in accordance with Mississippi Code Annotated § 25-53-151 and in either the legal notices or employment section of a newspaper in accordance with Section 3- 202.06 (Public Notice). The posting shall include the minimum qualifications for the contract worker position, the term and rate of pay and the deadline and manner for submitting applications. The minimum qualifications shall be established by the agency.

All applications received by the deadline shall be evaluated by the Agency Head, his designee(s), or an evaluation committee appointed by the Agency Head. For each contract worker position to be filled, or positions if more than one is needed, the same person or committee shall evaluate all applications.

Once evaluated, all applications shall be classified as either acceptable or unacceptable. For applications classified as unacceptable, the applicant shall be promptly notified in writing of the classification of the application as unacceptable and the reasons therefor. A copy of the notification letter shall be kept in the procurement file.

Interviews may be conducted with a number of applicants to be specified by the Agency Head, his designee(s), or the evaluation committee, from the list of applicants classified as acceptable. If interviews are conducted, after all interviews are completed, the applicants interviewed shall be evaluated based on predetermined criteria.

Recommendation(s) shall be made to the Agency Head, who may then award the contract(s). Notification that the contract has been awarded shall be promptly given in writing to all applicants whose applications were classified as acceptable. A copy of each notification letter shall be kept in the procurement file. A notice of award shall be made available to the public in accordance with Executive Order 1362. The public notice of award must be accompanied

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by an analysis as to why the personal or professional services contract was awarded, renewed, or amended.

3- 101.04.2 Procurement for Contract Worker when the Total Contract Value is Less than $75,000

The Agency Head shall adopt operational procedures for procuring contract workers when the total contract value is less than $75,000. Such operational procedures shall provide for obtaining adequate and reasonable competition and for making records to properly account for funds and to facilitate auditing of the Purchasing Agency. No approval by the PSCRB is required for these purchases.

3- 101.04.3 Approval of WIN Contracts

The state’s accounting system routes WIN (contract worker) contracts with the same WIN number exceeding $75,000 to the PSCRB for approval. PSCRB staff has the authority to approve WIN contracts for which the total contract value, including modifications, does not exceed $75,000 during any 12-month period.

3- 101.05 Net-of-fee Contracts

Net-of-fee contracts do not involve expenditures of state funds; they do not come under PSCRB purview. An agency should maintain for its file a written determination that a contract is net-of-fee.

3- 102 GENERAL PROVISIONS

3- 102.01 Extension of Time for Acceptance of Bids, Proposals, or Statements of Qualifications

After opening bids, proposals, or statements of qualifications, the Procurement Officer may request bidders, offerors, or respondents to extend the time during which the State may accept their bids, proposals, or statements of qualifications, provided that, with regard to bids, no other change is permitted. The reasons for requesting such extension shall be documented.

3- 102.02 Only One Bid, Proposal, or Statement of Qualifications Received; No Bid, Proposal, or Statement of Qualifications Received

3- 102.02.1 One Bid Received

If only one responsive bid is received in reply to an Invitation for Bid (including multi-step bidding), an award may be made to the single bidder if the Procurement Officer finds that the price submitted is fair and reasonable, and that either the other prospective bidders had reasonable opportunity to respond, or there is not adequate time for re-solicitation. Otherwise, the bid may be rejected pursuant to the provisions of Section 3-301.04 (Cancellation of Solicitation; Rejection of all Bids or Proposals) and:

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(a) the bid may be re-advertised and new bids or offers may be solicited;

(b) the proposed procurement may be canceled;

(c) if the Procurement Officer determines in writing that the need for the supply or service continues, but that the price of the one bid is not fair and reasonable and there is not time for resolicitation or resolicitation would likely be futile, the procurement may then be conducted under Section 3-206 (Sole-Source Procurement) if allowed under Section 3- 201 (Method of Source Selection), or Section 3-207 (Emergency Procurement) if the requirements of Section 3-207 are met.

3- 102.02.2 One Proposal Received

If only one proposal is received in response to a Request for Proposal, the Procurement Officer may either make an award in accordance with the procedures set forth in Section 3- 203 (Competitive Sealed Proposals) or, if time permits, re-solicit for the purpose of obtaining competitive sealed proposals.

3- 102.02.3 One Statement of Qualifications Received

If only one statement of qualifications is received in response to a Request for Qualifications, the Procurement Officer may either make an award in accordance with the procedures set forth in Section 3-204 (Competitive Sealed Qualifications) or, if time permits, re-solicit for the purpose of obtaining competitive sealed qualifications.

3- 102.02.4 No Bid, Proposal, or Statement of Qualifications Received

If no bid, proposal, or statement of qualifications is received in response to an Invitation for Bid, Request for Proposals, or Request for Qualifications:

(a) the solicitation may be re-advertised and new bids, proposals, or statements of qualifications may be solicited;

(b) the proposed procurement may be canceled; or, (c) an emergency procurement may be made in compliance with Section 3-207 if the requirements are met.

3- 102.03 Alternative Bids or Proposals

If alternate bids or proposals are allowed, the solicitation shall state that such bids or proposals shall be accepted and the solicitation shall specify their treatment.

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3- 102.04 Procuring Services Offered by Governmental Entities Not Under Purview of the PSCRB

Agency requirements may be fulfilled by procuring services performed incident to the State’s own programs. The Agency Head shall determine in writing whether such services meet the agency’s requirements and whether the price represents a fair market value for such services. When such procurements are made from other governmental entities, the private sector need not be solicited; however, these contracts shall still be submitted for approval to the PSCRB.

3- 102.04.1 Contracts Between Two State Agencies Under Purview of the PSCRB

Contracts between two state agencies, both under PSCRB purview (see Appendix A), do not require PSCRB approval. However, the contracts should still be entered into SPAHRS or MAGIC.

3- 102.05 Bid and Performance Bonds for Service Contracts

Bid and performance bonds or other security may be required for service contracts as the Agency Head deems advisable to protect the interest of the State. Any such requirements must be set forth in the solicitation. Bid or performance bonds or other security should not be used as a substitute for a determination of bidder or offeror responsibility. Mississippi Code Annotated § 31-5- 51 sets forth bonding requirements applicable to construction contracts and may be considered when establishing any such requirements for service contracts. An agency may not specify a specific company or insurance agency from which bonds should be purchased. If the requirement for a bid or performance bond or other security is included in the procurement, it cannot be waived.

3- 102.06 Conditioning Bids or Proposals Upon Other Awards Not Acceptable

Any bid, proposal, or statement of qualifications which is conditioned upon receiving award of both the particular contract being solicited and another Mississippi contract shall be deemed non-responsive and not acceptable.

3- 102.07 Lists of Contract Specifications or Deliverables

All contracts for services shall include a list of contract specifications or deliverables. These may be incorporated from the scope of work included in the solicitation of bids, proposals, or statements of qualifications. This list shall be used as evaluation criteria when monitoring contract performance in accordance with Section 4-102, Monitoring Contract Performance, of these regulations. The description of services to be performed should be result-oriented, not procedure-oriented, and shall at a minimum include:

(a) what service is to be performed;

(b) when the service is to be performed;

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(c) how frequently the service is to be performed;

(d) where the service is to be performed;

(e) how much the service will cost; and,

(f) why the service is necessary.

3- 102.08 Contractors Qualified To Transact Business

Contractors must be in compliance with Mississippi Code Annotated § 79-4- 15.01 regarding authorization to transact business in Mississippi.

3- 103 NOVATION/BUYOUT OR CHANGE OF NAME

3- 103.01 No Assignment

No contract requiring PSCRB approval is transferable or otherwise assignable without the prior approval of the PSCRB; however, a contractor may assign monies receivable under a contract after due notice to the State and the contracting entity, and with the approval of the PSCRB.

3- 103.02 Recognition of a Successor in Interest – Novation

When, in the best interest of the State, a successor in interest may be recognized in a novation agreement, the transferor and the transferee must agree that:

(a) the transferee assumes all of the transferor’s obligations;

(b) the transferor waives all rights under the contract as against the State; and,

(c) unless the transferor guarantees performance of the contract by the transferee, the transferee shall, if required, furnish a satisfactory performance bond.

3- 103.03 Change of Name

When a contractor requests to change the name in which it holds a contract with the State, the agency shall, upon receipt of a document indicating such change of name (for example, an amendment to the articles of incorporation of the corporation), enter into an agreement with the requesting contractor to effect the change. The agreement changing the name shall specifically indicate that no other terms and conditions of the contract are changed. This change must be approved by the PSCRB.

3- 201 METHOD OF SOURCE SELECTION

Unless otherwise authorized by law, all Mississippi contracts for personal and professional services shall be procured using one of the following competitive procurement methods:

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Competitive Sealed Bidding (Section 3-202), Competitive Sealed Proposals (Section 3-203), Competitive Sealed Qualifications (Section 3-204), Alternative Competitive Procurement for Contract Worker Contracts when Pricing is Set by the Agency (Section 3-101.04.1), or an alternative, generally accepted procurement method approved by the PSCRB.

Competitive bidding includes Invitations for Bids, Requests for Proposals, Requests for Qualifications, and any other alternative, generally accepted procurement method approved by the PSCRB. See MS AG Op., Mosley (October 23, 2015). In order to procure through an alternative, generally accepted procurement method, the agency must bring a request before the Board for approval using the procedure in Section 3-201.03, Alternative Procurement Procedures.

3- 201.01 Petition for Relief from Competitive Bidding

An agency may petition for relief from the requirement that the agency use competitive bidding as the procurement method by showing to the PSCRB’s satisfaction one of the following:

(a) Federal law or federal court order has established limitations on the use of competitive bidding for the personal or professional contracts the agency is seeking to procure; or

(b) The agency is required to hire professionals whose members are prohibited from bidding by the rules of professional conduct promulgated by the regulating agency or agencies for that professional; or

(c) The agency can establish that the use of competitive bidding will be counterproductive to the business of the agency.

If the PSCRB determines that competitive bidding shall not be required for the particular personal or professional service the agency seeks to procure, then the PSCRB will direct the agency to establish a competitive procurement procedure for selecting the personal or professional service contract that ensures open, transparent procedures for making the source selection. The PSCRB shall have the authority to audit the records of any agency to ensure it has used competitive procedures to contract for the personal or professional service.

3- 201.02 Procedure for Petition for Relief from Competitive Bidding

The procedure for submitting a petition for relief from the requirement to use competitive sealed bidding is outlined in Section 7-103, Competitive Procurement Exception.

3- 201.03 Alternative Procurement Procedures

Alternative procurement procedures from competitive bidding, which may be used, include:

(a) Section 3-101.04.1, Alternative Competitive Procurement for Contract Worker Contracts when Pricing is Set by the Agency;

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(b) Section 3-205.01, Alternative Competitive Procurement for Small Purchases; or

(c) In order to procure through an alternative, generally accepted procurement method, the agency must complete the form prescribed by the PSCRB as a Petition for Relief, which must be approved by the PSCRB prior to procurement.

3- 201.04 Other Source Selection Methods

Other source selection methods include:

(a) Section 3-206, Sole-Source Procurement;

(b) Section 3-207, Emergency Procurement; and

(c) Section 3-208, Preapproved Vendor Lists.

3- 202 COMPETITIVE SEALED BIDDING

3- 202.01 General Provisions

(a) Conditions for Use: Contracts shall be awarded by competitive sealed bidding when a determination is made that this method is the best suited for a particular service.

(b) Invitation for Bid: An Invitation for Bid shall be issued and shall include a purchase description and all contractual terms and conditions applicable to the procurement.

(c) Public Notice: When the amount of the contract is anticipated to be more than $75,000, public notice must be given in accordance with Section 3-202.06. All personal and professional services contract procurements must be posted on the Mississippi Contract/Procurement Opportunity Search Portal in accordance with Mississippi Code Annotated § 25-53-151.

(d) Bid Opening: Bids shall be opened publicly in the presence of one of more witnesses at the time and place designated in the Invitation for Bid. The name of each bidder shall be recorded. The amount of each bid and such other relevant information as may be specified by regulation may be recorded; the record and each bid shall be open to public inspection as provided in Section 1-301 (Public Access to Procurement Information).

(e) Bid Acceptance and Bid Evaluation: Bids shall be unconditionally accepted without alteration or correction, except as authorized in these regulations. Bids shall be evaluated based on the requirements set forth in the Invitation for Bid, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable where possible. The Invitation for Bid shall set forth the evaluation criteria to be used. No criteria may be used in an evaluation that is not set forth in the Invitation for Bid.

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(f) Correction or Withdrawal of Bids; Cancellation of Awards: Correction or withdrawal of inadvertently erroneous bids before an award, or cancellation of awards or contracts based on erroneous bids shall be permitted in accordance with these regulations. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the State or fair competition shall be permitted. Except as otherwise provided herein, all decisions to permit the correction or withdrawal of bids or to cancel awards or contracts based on bid mistakes shall be supported by a written determination made by the Agency Head with the approval of the PSCRB. The written determination shall be maintained in the agency’s procurement file.

(g) Award: The contract shall be awarded with reasonable promptness by written notice to the lowest responsible bidder whose bid meets the requirements and criteria set forth in the Invitation for Bid.

(h) Multi-Step Sealed Bidding: When it is considered impractical to initially prepare a purchase description to support an award based on price, an Invitation for Bid may be issued requesting the submission of unpriced offers to be followed by an Invitation for Bid limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.

3- 202.02 Application

The provisions herein apply to every procurement made by competitive sealed bidding, including multi-step bidding.

3- 202.03 The Invitation for Bid

3- 202.03.1 Use

The Invitation for Bid is used to initiate a competitive sealed bid procurement.

3- 202.03.2 Content

The Invitation for Bid shall include the following:

(a) instructions and information to bidders concerning bid submission requirements, including:

(1) the time and date set for receipt of bids,

(2) the address of the office to which bids are to be delivered,

(3) the maximum time for bid acceptance by the State, and,

(4) any other special information;

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(b) the purchase description, evaluation factors, delivery or performance schedule, and such inspection and acceptance requirements as are not included in the purchase description; and,

(c) the contract terms and conditions, including warranty and bonding or other security requirements.

3- 202.03.3 Incorporation by Reference

The Invitation for Bid may incorporate documents by reference provided that the Invitation for Bid specifies where such documents can be obtained.

3- 202.03.4 Acknowledgment of Amendments

The Invitation for Bid shall require the acknowledgment of the receipt of amendments issued.

3- 202.04 Bidding Time

Bidding time is the period of time between the date of distribution of the Invitation for Bid and the time and date set for receipt of bids. In each case, bidding time will be set to provide bidders a reasonable time to prepare their bids.

3- 202.05 Bidder Submissions

3- 202.05.1 Bid Form

The Invitation for Bid shall provide a form to be signed by the bidder and which shall include a space for insertion of the bid price.

3- 202.05.2 Facsimile Bids

The Invitation for Bid may state that facsimile bids will be considered whenever they are delivered sealed at the designated office by the time and date set for receipt of bids. For a bid to be acceptable when transmitted by a facsimile machine, it shall have been faxed to an off- site location and delivered sealed to the agency prior to the time and date set for the bid opening. Such facsimile bids shall contain specific reference to:

(a) the Invitation for Bid;

(b) the items, quantities, and prices for which the bid is submitted;

(c) the time and place of delivery; and,

(d) a statement that the bidder agrees to all terms, conditions, and provisions of the Invitation for Bid.

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Prior to an award being made, submission of an original bid shall be required.

3- 202.05.3 Electronic Submissions

The Invitation for Bid may state that sealed bids will be considered if they are delivered electronically through the MAGIC system by the time and date set for receipt of bids. All information regarding electronic submissions for Invitation for Bids should be posted in MAGIC. The withdrawal and modification of bids following electronic submission must be in compliance with Section 3-202.09.

3- 202.06 Public Notice

3- 202.06.1 Distribution

Invitations for Bids or Notices of Availability of Invitations for Bids shall be mailed or otherwise furnished to a sufficient number of bidders to promote competition. Notices of Availability shall indicate where, when, and for how long Invitations for Bids may be obtained, generally describe the service desired, and may contain other appropriate information.

3- 202.06.2 Publication

Every Invitation for Bid for services in excess of $75,000 shall be publicized in the legal notices section of a newspaper published in the county or municipality in which the agency is located, or the employment section of a newspaper when procuring services of contract workers under Section 3-101.04.1, and shall be posted on the Mississippi Contract/ Procurement Opportunity Search Portal in accordance with Mississippi Code Annotated § 25-53-151. Publication should be made at the time the IFB is issued. Additionally, the agency may publicize in a newspaper of general circulation in the area pertinent to the procurement, in industry media, or in a government publication designed for giving public notice.

3- 202.06.3 Content of Advertisement

When composing the advertisement to appear in the legal notice section of the newspaper and the Mississippi Contract/Procurement Opportunity Search Portal, the intent is to promote competition. Prospective bidders should be given as much information as possible. The date fixed for receiving bids shall not fall on a Monday, or any day directly following a state holiday.

The following is a suggested guide for a legal notice newspaper advertisement:

The (name of the agency) will accept sealed bids until (time of bid opening), (day of the week), (month) (date), (year) for the purpose of purchasing the following: (name of service to be procured), (bid file number). Detailed specifications may be obtained by contacting (name

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of contact person) at (telephone number), (electronic address), or at (physical mailing address).

The following is a suggested guide for an employment section newspaper advertisement:

The (name of the agency) will accept applications until (time), (day of the week), (month) (date), (year) for the purpose of hiring contract workers with the following qualifications: (include minimum qualifications for position). Contracts will be for a period of (term of contract) with a rate of pay of ($$) per hour. Applications can be submitted by (explanation of submission options, including address or web address. Contact (name) and (phone number) for more information.

3- 202.06.4 Advertising Time

Advertising time is the period of time between the date of publication of the advertisement and the time and date set for the receipt of bids. Advertisement for bids shall be published once each week for two consecutive weeks with the second notice being published on or after the seventh (7 th ) calendar day after publication of the first notice. For publication on the Mississippi Contract/Procurement Opportunity Search Portal, the advertising time shall be concurrent with a newspaper publication, and shall run for fourteen (14) consecutive days.

Example: If the first newspaper publication is June 1 st , the second newspaper publication cannot be before June 8 th .

The date set for the bid opening for services shall not be less than seven (7) working days (as opposed to calendar days) after the last notice appears in the newspaper and no more than fourteen (14) working days after the last notice appears in the newspaper unless an agency determines due to the complex requirements of the procurement that a longer vendor response time is necessary. The date set for bid opening must be included in the advertisement.

Note: There must be seven (7) full working days between the date the last notice appeared and the date that bids are opened. This does not include weekends or holidays. Also, the date on which the last notice runs is not included in the calculation of days. The last day of this period will be included unless the last day is a Saturday, Sunday, Monday, or legal holiday, in which case the period lasts until the end of the next day which is not a Saturday, Sunday, Monday, legal holiday, or day following a state (or legal) holiday.

3- 202.06.4.1 Required Letters of Intent

The date for submission of a letter of intent, if required in the procurement, shall also be not less than seven (7) full working days after the last notice appears in the newspaper.

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3- 202.06.5 Public Availability

A copy of the Invitation for Bid shall be made available for any interested party at the location noted in the published notice.

3- 202.07 Pre-Bid Conferences

Pre-bid conferences may be conducted to explain the procurement requirements. The conference shall be announced to all prospective bidders known to have received an Invitation for Bid. The conference should be held long enough after the Invitation for Bid has been issued to allow bidders to become familiar with it but sufficiently before bid opening to allow consideration of the conference results in preparing bids. Nothing stated at the pre-bid conference shall change the Invitation for Bid unless a change is made by written amendment as provided in Section 3-202.08 (Amendments to Invitations for Bids). A summary of the conference shall be supplied to all prospective bidders known to have received an Invitation for Bid. If a transcript is made, it shall be of public record.

3- 202.08 Amendments to Invitations for Bids

3- 202.08.1 Form

Amendments to Invitations for Bids shall be identified as such and shall require that the bidder acknowledge receipt thereof. The amendment shall reference the portions of the Invitation for Bid it amends. Question and Answer documents shall be treated in the same manner as amendments to Invitations for Bids.

3- 202.08.2 Distribution

Amendments shall be sent to all prospective bidders known to have received an Invitation for Bid.

3- 202.08.3 Timeliness

Amendments shall be distributed within a reasonable time to allow prospective bidders to consider them in preparing their bids. If the time and date set for receipt of bids will not permit such preparation, such time shall be increased, to the extent possible, either in the amendment or, if necessary, by electronic means (e-mail), facsimile, or telephone and then confirmed in the amendment.

Note: Amendments should be used to:

(a) make any changes in the Invitation for Bid such as changes in quantity, purchase descriptions, delivery schedules, and opening dates;

(b) correct defects or ambiguities; or,

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(c) furnish to other bidders information given to one bidder, if such information will assist the other bidders in submitting bids, or if the lack of such information would prejudice the other bidders. Any such information when not given to all bidders shall be cause for rejecting all bids.

3- 202.09 Pre-Opening Modification or Withdrawal of Bids

Bids may be modified or withdrawn by written notice received in the office designated in the Invitation for Bid prior to the time and date set for bid opening. Any withdrawn or modified offer shall remain unopened in the procurement file.

3- 202.09.1 Disposition of Bid Security

If a bid is withdrawn in accordance with this section, the bid security, if any, shall be returned to the bidder.

3- 202.09.2 Records

All documents relating to the modification or withdrawal of bids shall be made a part of the procurement file, including the unopened withdrawn or modified offer.

3- 202.10 Late Bids, Late Withdrawals, and Late Modifications

3- 202.10.1 Definition

Any bid received after the time and date set for receipt of bids is late. Any withdrawal or modification of a bid received after the time and date set for opening of bids at the place designated for opening is late.

3- 202.10.2 Treatment

No late bid, late modification, or late withdrawal will be considered unless receipt would have been timely but for the action or inaction of agency personnel directly involved with the procurement activity.

3- 202.10.3 Notice

Bidders submitting late bids which shall not be considered for award shall be so notified as soon as practicable.

3- 202.10.4 Records

Records equivalent to those required in Subsection 3-202.09.2 (Pre-Opening Modification or Withdrawals of Bids, Records) shall be made and kept for each late bid, late modification, or late withdrawal.

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3- 202.11 Receipt, Opening, and Recording of Bids

3- 202.11.1 Receipt

Each bid and modification received shall be date-stamped or time/date stamped but not opened and shall be stored in a secure place until the time and date set for bid opening.

3- 202.11.2 Opening and Recording

Bids and modifications shall be opened publicly, in the presence of one or more witnesses, at the time, date, and place designated in the Invitation for Bid. The name of each bidder, the bid price, and such other information as is deemed appropriate by the Procurement Officer, shall be read aloud or otherwise made available. Such information may be recorded at the time of bid opening; that is, the bids may be tabulated or a bid abstract made. If a record is made, the names of required witnesses shall also be recorded. The opened bids shall be available for inspection by participants, subject to the provisions of Mississippi Code Annotated §§ 25-61-1 et seq., except to the extent the bidder designates trade secrets or other proprietary data to be confidential as set forth in Subsection 3-202.11.3 below. Material so designated shall accompany the bid and shall be readily separable from the bid in order to facilitate public inspection of the nonconfidential portion of the bid. Prices of the services offered, deliveries, and terms of payment shall be publicly available at the time of bid opening regardless of any designation to the contrary. Bids shall be available for inspection at any time subsequent to the awarding of the contract. Inspection of bids shall be in compliance with Section 1-301 (Public Access to Procurement Information).

3- 202.11.3 Confidential Data

The Procurement Officer shall examine the bids to identify any written requests for nondisclosure of trade secrets and other proprietary data. Any disclosure of this information is subject to the provisions of Mississippi Code Annotated §§ 25-61-9 and 79-23-1. For all procurement contracts awarded by state agencies, the provisions of the contract which contain the personal or professional services provided, the price to be paid, and the term of the contract shall not be deemed to be a trade secret, or confidential commercial or financial information, and shall be available for examination, copying, or reproduction.

3- 202.12 Mistakes in Bids

3- 202.12.1 General Provision

Correction or withdrawal of a bid because of an inadvertent, nonjudgmental mistake in the bid requires careful consideration to protect the integrity of the competitive bidding system and to assure fairness. If the mistake is attributable to an error in judgment, the bid may not be corrected.

Bid correction or withdrawal by reason of a nonjudgmental mistake is permissible, but only to the extent it is not contrary to the interest of the State or the fair treatment of other bidders.

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3- 202.12.2 Mistakes Discovered Before Opening

A bidder may correct mistakes discovered before the time and date set for bid opening by withdrawing or correcting the bid as provided in Section 3-202.09 (Pre-Opening Modification or Withdrawal of Bids).

3- 202.12.3 Confirmation of Bid

When the Procurement Officer knows or has reason to conclude that a mistake has been made, such officer should request the bidder to confirm the bid. Situations in which confirmation should be requested include obvious, apparent errors on the face of the bid or a bid unreasonably lower than the other bids submitted. If the bidder alleges a mistake, the bid may be corrected or withdrawn if the conditions set forth in Subsections 3-202.12.4 through 3- 202.12.6 of this section are met.

3- 202.12.4 Mistakes Discovered After Bid Opening But Before Award

This subsection sets forth procedures to be applied in three situations described herein in which mistakes in bids are discovered after the time and date set for bid opening but before award.

3- 202.12.4.1 Minor Informalities

Minor informalities are matters of form rather than substance evident from the bid document, or insignificant mistakes that can be waived or corrected without prejudice to other bidders; that is, the effect on price, quantity, quality, delivery, or contractual conditions is negligible. The Procurement Officer shall waive such informalities or allow the bidder to correct them depending on which is in the best interest of the State. Examples include the failure of a bidder to: (a) return the number of signed bids required by the agency in the Invitation for Bid;

(b) sign the bid, but only if the unsigned bid is accompanied by other material indicating the bidder’s intent to be bound; or,

(c) acknowledge receipt of an amendment to the Invitation for Bid, but only if it is clear from the bid that: the bidder received the amendment and intended to be bound by its terms; or, the amendment involved had a negligible effect on price, quantity, quality, or delivery.

3- 202.12.4.2 Mistakes Where Intended Correct Bid is Evident

If the mistake and the intended correct bid are clearly evident on the bid document, the bid shall be corrected on the intended correct bid and may not be withdrawn. Examples of mistakes that may be clearly evident on the bid document are typographical errors, errors in extending unit prices, and arithmetical errors.

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3- 202.12.4.3 Mistakes Where Intended Correct Bid is Not Evident

A bidder may be permitted to withdraw a low bid if:

(a) a mistake is clearly evident on the bid document, but the intended correct bid is not similarly evident; or,

(b) the bidder submits proof of evidentiary value which clearly and convincingly demonstrates that a mistake was made.

3- 202.12.5 Mistakes i n Bids Discovered After Award

Mistakes shall not be corrected after award of the contract.

3- 202.12.6 Determinations Required

When a bid is corrected or withdrawn, or correction or withdrawal is denied, under Subsections 3-202.12.4 or 3-202.12.5 of this section, the Procurement Officer or the Agency Head shall prepare a written determination showing that the relief was granted or denied in accordance with these regulations, except that the Procurement Officer shall approve the determination required under Subsection 3-202.12.4.1 as to minor informalities. The written determination shall become a part of the agency’s procurement file.

3- 202.13 Bid Evaluation and Award

3- 202.13.1 General

The contract is to be awarded to the lowest responsible bidder whose bid meets the requirements and criteria set forth in the Invitation for Bid. See Section 3-202.01(g) (Competitive Sealed Bidding, Award) of these regulations. The Invitation for Bid shall set forth the requirements and criteria which will be used to determine the lowest responsive bidder. No bids shall be evaluated for any requirement or criterion that is not disclosed in the Invitation for Bid.

3- 202.13.2 Service/End Product Acceptability

The Invitation for Bid shall set forth any evaluation criterion to be used in determining acceptability. It may require the submission of descriptive literature, technical data, or other material. It may also provide for accomplishing any of the following prior to award:

(a) inspection or testing of a product prior to award for such characteristics as quality or workmanship;

(b) examination of such elements as appearance, finish, taste, or feel; and/or,

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(c) other examinations to determine whether it conforms with any other purchase description requirements.

The acceptability evaluation is not conducted for the purpose of determining whether one bidder’s item is superior to another but only to determine that a bidder’s offering is acceptable as set forth in the Invitation for Bid. Any bidder’s offering which does not meet the acceptability requirements shall be rejected as non-responsive. A written determination of non-responsiveness shall be maintained in the procurement file. The bidder shall be promptly notified in writing of the determination of non-responsiveness and the reasons therefor.

3- 202.13.3 Determination of Lowest Bidder

Following determination of acceptability as set forth in Subsection 3-202.13.2 (Service/End Product Acceptability), if determination of acceptability is required, bids will be evaluated to determine which bidder offers the lowest cost to the State in accordance with the evaluation criteria set forth in the Invitation for Bid. Only objectively measurable criteria which are set forth in the Invitation for Bid shall be applied in determining the lowest bidder.

Examples of such criteria include, but are not limited to, guaranteed buy back and ownership or life-cycle cost formulas. Evaluation factors need not be precise predictors of actual future costs, but to the extent possible such evaluation factors shall be reasonable estimates based upon information the State has available concerning future use, and shall treat all bids equitably. The determination of lowest bidder shall be made in writing and maintained in the agency’s procurement file.

3- 202.13.4 Restrictions

Nothing in this section shall be deemed to permit a contract award to a bidder submitting more comprehensive services than that designated in the Invitation for Bid if such bidder is not also the lowest bidder as determined under Subsection 3-202.13.3 (Determination of Lowest Bidder) of this section. Further, negotiations are not permitted with any bidder.

3- 202.14 Low Tie Bids

3- 202.14.1 Definition

Low tie bids are low responsive bids from responsible bidders that are identical in price, including cash discounts offered for prompt payment, and meet all the requirements and criteria set forth in the Invitation for Bid.

3- 202.14.2 Award

The prime criterion for making an award where tie bids are involved shall be in compliance with Mississippi Code Annotated §§ 31-7- 15(1) and 31-7- 47, i.e., that resident vendors shall be given preference over nonresident vendors. An award shall not be made by drawing lots, except as set forth below, or by dividing business among identical bidders. In the discretion

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of the Agency Head, award shall be made in any permissible manner that will discourage tie bids. If no permissible method will be effective in discouraging tie bids, and a written determination is made so stating, award may be made by drawing lots. In such case, those bidders involved shall be invited to attend the procedure. The written determination shall be maintained in the procurement file.

3- 202.14.3 Records of Tie Bids

Records should be made of all Invitations for Bids on which tie bids are received showing at least the following information:

(a) the identification number of the Invitation for Bid;

(b) the service; and,

(c) a listing of all bidders and the prices submitted.

A copy of each such record shall be sent to the PSCRB.

3- 202.15 Documentation of Award

Following award, a record showing the basis for determining the successful bidder shall be made a part of the agency’s procurement file. This shall include an analysis as to why the personal or professional services contract was awarded, renewed, or amended to be published in accordance with Section 3-202.16 (Publicizing Award).

3- 202.16 Publicizing Award

Written notice of award shall be sent to all bidders and copies of such notices shall be maintained in the procurement file. Notice of award shall be made available to the public in accordance with Executive Order 1362. The public notice of award must be accompanied by an analysis describing why the personal or professional services contract was awarded, renewed, or amended.

3- 202.17 Multi-Step Sealed Bidding

3- 202.17.1 Definition

Multi-step sealed bidding is a two-phase process consisting of the following:

(a) First phase – a technical phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the State; and,

(b) Second phase – in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered.

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Multi-step bidding is designed to obtain the benefits of competitive sealed bidding by the awarding of a contract to the lowest responsive, responsible bidder and at the same time obtain the benefits of the competitive sealed proposals procedure through the solicitation of technical offers and the conduct of discussions to evaluate and determine the acceptability of technical offers.

3- 202.17.2 Conditions for Use

The multi-step sealed bidding method may be used when it is not practical to prepare initially a definitive purchase description which will be suitable to permit an award based on price. Multi- step sealed bidding may, therefore, be used when it is considered desirable:

(a) to invite and evaluate technical offers to determine their acceptability to fulfill the purchase description requirements;

(b) to conduct discussions for the purposes of facilitating understanding of the technical offer and purchase description requirements and, where appropriate, obtain supplemental information, permit amendments of technical offers, or amend the purchase description;

(c) to accomplish subsections (a) and (b) of this section prior to soliciting priced bids; and,

(d) to award the contract to the lowest responsive and responsible bidder in accordance with the competitive sealed bidding procedures.

3- 202.18 Pre-Bid Conferences in Multi-Step Sealed Bidding

Prior to the submission of unpriced technical offers, a pre-bid conference as contemplated by Section 3-202.07 (Pre-Bid Conferences) may be conducted by the Procurement Officer. The Procurement Officer may also hold a conference of all potential bidders in accordance with Section 3-202.07 (Pre-Bid Conferences) at any time during the evaluation of the unpriced technical offers.

3- 202.19 Procedure for Phase One of Multi-Step Sealed Bidding

3- 202.19.1 Form

Multi-step sealed biding shall be initiated by issuance of an Invitation for Bid in the form required by Section 3-202.03 (The Invitation for Bid), except as hereinafter provided. In addition to the requirements set forth in Section 3-202.03 (The Invitation for Bid), the multi- step sealed bid shall state:

(a) that unpriced technical offers are requested;

(b) whether priced bids are to be submitted at the same time as unpriced technical offers (if they are, such priced bids shall be submitted in a separate sealed envelope);

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(c) that it is a multi-step sealed bid procurement, and priced bids will be considered only in the second phase and only from those bidders whose unpriced technical offers are found acceptable in the first phase;

(d) the criteria to be used in the evaluation of the unpriced technical offers;

(e) that the State, to the extent the Procurement Officer finds necessary, may conduct oral or written discussions of the unpriced technical offers;

(f) that bidders may designate those portions of the unpriced technical offers which contain trade secrets or other proprietary data which are to remain confidential, subject to Mississippi Code Annotated §§ 25-61-9 and 79-23-1; and,

(g) that the service being procured shall be provided in accordance with the bidder’s technical offer as found to be finally acceptable and shall meet the requirements of the Invitation for Bid.

3- 202.19.2 Amendments to the Invitation for Bid

After receipt of unpriced technical offers, amendments to the Invitation for Bid shall be distributed only to bidders who submitted unpriced technical offers, and they shall be permitted to submit new unpriced technical offers or to amend those already submitted.

If, in the opinion of the Procurement Officer, a contemplated amendment will significantly change the nature of the procurement, the Invitation for Bid shall be canceled in accordance with Section 3-301.04 (Cancellation of Solicitation; Rejection of all Bids, Proposals, or Statements of Qualifications) and a new Invitation for Bid issued.

Question and Answer documents shall be treated in the same manner as amendments to the Invitation for Bid.

3- 202.19.3 Receipt and Handling of Unpriced Technical Offers

Unpriced technical offers shall be opened in front of two or more agency procurement officials. Any written requests by bidders for nondisclosure of trade secrets and other proprietary data are subject to Mississippi Code Annotated §§ 25-61-9 and 79-23-1.

3- 202.19.4 Evaluations of Unpriced Technical Offers

The unpriced technical offers submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the Invitation for Bid. The unpriced technical offers shall be categorized as:

(a) acceptable;

(b) potentially acceptable – that is, reasonably susceptible of being made acceptable; or,

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(c) unacceptable.

The Procurement Officer shall record in writing the basis for finding an offer unacceptable and make it part of the agency procurement file. The Procurement Officer may then initiate Phase Two of the procedure if, in the Procurement Officer’s opinion, there are sufficient acceptable unpriced technical offers to assure effective price competition in the second phase without technical discussions. If the Procurement Officer finds that there are not sufficient acceptable unpriced technical offers, he or she shall issue an amendment to the Invitation for Bid or engage in technical discussions as set forth in Subsection 3-202.19.5 below.

3- 202.19.5 Unpriced Technical Offers – General Discussion

The Procurement Officer may conduct discussions with any bidder who submit an acceptable or potentially acceptable technical offer. During the course of such discussions, the Procurement Officer shall not disclose any information derived from one unpriced technical offer to any other bidder. Once discussions are begun, any bidder who has not been notified that its offer has been found unacceptable may submit supplemental information amending its technical offer at any time prior to the closing date established by the Procurement Officer. Such submission may be made at the request of the Procurement Officer or upon the bidder’s own initiative. The Procurement Officer shall keep a record of the date, place, and purpose of any such meeting and those attending and make it part of the agency procurement file.

3- 202.19.6 Notice of Unacceptable Unpriced Technical Offer

When the Procurement Officer determines a bidder’s unpriced technical offer to be unacceptable, such offeror shall not be afforded an additional opportunity to supplement the offer.

3- 202.20 Procedure for Phase Two of Multi-Step Sealed Bidding

3- 202.20.1 Initiation

Upon completion of Phase One, the Procurement Officer shall either:

(a) open priced bids submitted in Phase One (if priced bids were required to be submitted) from bidders whose unpriced technical offers were found to be acceptable; or,

(b) invite each acceptable bidder to submit a priced bid, if priced bids were not submitted.

3- 202.20.2 Conduct of Phase Two

Phase Two shall be conducted as any other competitive sealed bid procurement except:

(a) no public notice need be given of this invitation to submit priced bids because such notice was previously given; and,

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(b) any requests by bidders for nondisclosure of trade secrets and other proprietary data is subject to Mississippi Code Annotated §§ 25-61-9 and 79-23-1.

3- 202.21 Mistakes During Multi-Step Sealed Bidding

Mistakes may be corrected or bids may be withdrawn during Phase One at any time. During Phase Two, mistakes may be corrected or withdrawal permitted in accordance with Section 3- 202.12 (Mistakes in Bids).

3- 203 COMPETITIVE SEALED PROPOSALS

3- 203.01 General Provisions

(a) Conditions for Use: When, under regulations approved by the PSCRB, the Agency Head determines that the use of competitive sealed bidding is either not practicable or not advantageous to the State, a contract may be entered into by competitive sealed proposals as provided herein.

(b) Request for Proposal: Proposals shall be solicited through a Request for Proposal.

(c) Public Notice: Adequate public notice of the Request for Proposal shall be given in the same manner as provided in Sections 3- 202.01(c) and 3-202.06 (Competitive Sealed Bidding, Public Notice).

(d) Receipt of Proposals: The agency shall prepare and keep a Register of Proposals which shall indicate the name of all offerors submitting proposals.

(e) Evaluation Factors: The Request for Proposals shall state the relative importance of price and other evaluation factors in terms of important, very important, and critical.

(f) Discussions with Responsible Offerors and Revisions to Proposal: If provided in the Request for Proposals and as set forth in these regulations, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible to being selected for award. The discussions shall be for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. In conducting discussions, agencies should be cautious to not disclose information derived from competing offers. Offerors should be accorded fair and equal treatment with respect to any opportunity for discussion. Revision of proposals may be permitted after submissions and prior to award for the purpose of obtaining best and final offers.

(g) Award: Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the State taking into consideration price and the evaluation factors set forth in the Request for Proposals. No other factors or criteria shall be used in the evaluation.

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3- 203.02 Application

The provisions of this section apply to every procurement of personal or professional services made by competitive sealed proposals.

3- 203.03 Conditions for Use of Competitive Sealed Proposals

3- 203.03.1 “Practicable” Distinguished from “Advantageous”

The words “practicable” and “advantageous” are to be given ordinary dictionary meanings:

(a) practicable means what may be accomplished or put into practical application; and,

(b) advantageous means a judgmental assessment of what is in the State’s best interest. Competitive sealed bidding may be practicable but not necessarily advantageous; that is, not in the State’s best interest.

3- 203.03.2 General Discussion

If competitive sealed bidding is not practicable, competitive sealed proposals should be used. If competitive sealed bidding is practicable, it must then be determined whether competitive sealed bidding is advantageous. If competitive sealed bidding is determined not to be advantageous, competitive sealed proposals should be used.

3- 203.03.2.1 Flexibility vs. Finality

(a) Flexibility: The key element in determining advantageousness is the need for flexibility vs. the need for finality. The competitive sealed proposals method differs from competitive sealed bidding in that competitive sealed proposals:

(1) permit discussions with competing offerors and changes in their proposals including price; and,

(2) allow comparative judgmental evaluations to be made when selecting among acceptable proposals for award of the contract.

(b) Finality: Another important difference between competitive sealed proposals and competitive sealed bidding is the finality of initial offers. Under competitive sealed proposals, alterations in the nature of a proposal and in prices may be made after proposals are opened. Such changes are not allowed under competitive sealed bidding (except to the extent allowed in the first phase of multi-step sealed bidding). Therefore, unless it is anticipated that a contract can be awarded solely on the basis of information submitted by bidders at the time of opening, competitive sealed bidding is neither practicable nor advantageous.

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3- 203.03.2.2 Evaluation Factors

Another consideration concerns the type of evaluations needed after offers are received. Where evaluation factors involve the relative abilities of offerors to perform, including degrees of technical or professional experience or expertise, use of competitive sealed proposals is the appropriate procurement method. Additionally, use of competitive sealed proposals is appropriate where the type of need to be satisfied involves weighing artistic and aesthetic values to the extent that price is a secondary consideration. Finally, where the types of services to be performed may require the use of comparative judgmental evaluations to evaluate them adequately, use of competitive sealed proposals is the appropriate method.

3- 203.03.3 When Competitive Sealed Bidding is Not Practicable

Competitive sealed bidding is not practicable unless the nature of the procurement permits award to a low bidder who agrees by its bid to perform without condition or reservation in accordance with the purchase description, delivery or performance schedule, and all other terms and conditions of the Invitation for Bid. Factors to be considered in determining whether competitive sealed bidding is or is not practicable include:

(a) whether the contract needs to be other than a fixed-price type;

(b) whether oral or written discussions may need to be conducted with offerors concerning technical and price aspects of their proposal;

(c) whether offerors may need to be afforded the opportunity to revise their proposal including price;

(d) whether award may need to be based upon a comparative evaluation as stated in the Request for Proposal of differing price, quality, and contractual factors in order to determine the most advantageous offering to the State (quality factors include technical and performance capability and the content of the technical proposal); and,

(e) whether the primary consideration in determining award may not be price.

3- 203.03.4 When Competitive Sealed Bidding is Not Advantageous

A determination may be made to use competitive sealed proposals if it is determined that it is not advantageous to the State, even though practicable, to use competitive sealed bidding. Factors to be considered in determining whether competitive sealed bidding is not advantageous include:

(a) if prior procurements indicate that competitive sealed proposals may result in more beneficial contracts for the State; and,

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(b) whether the factors listed in Subsections 3-203.03.3(b) through (d) of this section are desirable in conducting a procurement rather than necessary; if they are, then such factors may be used to support a determination that competitive sealed bidding is not advantageous.

Note: The following is offered as an example of circumstances when formal competitive sealed bidding is “practicable” but not “advantageous.”

It could be “practicable” to invite competitive sealed bids on a functional specification prepared by the State for services that are highly specialized such as producing job classifications; however, the contract award would likely better serve the State’s interest if it were made on the basis of the most advantageous proposal rather than the lowest responsive and responsible bidder. For this reason, it would not be “advantageous” to the State to take competitive sealed bids; that is, the State’s specification could conceivably result in an acceptable product, but another could have been obtained more economically and in a form that would better serve the needs of the State. Competitive sealed proposals would also afford the opportunity to discuss design characteristics with the offerors as the discussions proceeded.

3- 203.03.5 Determinations to be Made Before Competitive Sealed Proposals May Be Utilized

Before a contract may be entered into by competitive sealed proposals, the Agency Head shall determine in writing and keep in the procurement file the following:

(a) that competitive sealed bidding is either not practicable or not advantageous to the State;

(b) that the agency does not have the personnel or resources to perform the services required under the proposed contract, or that the services can be performed more economically by someone other than state personnel; (c) the nature of the relationship to be established between the using agency and the contractor of the proposed contract; and,

(d) that the using agency has developed and fully intends to implement a written plan for utilizing such services which will be included in the contractual statement of work.

3- 203.04 Content of the Request for Proposal

3- 203.04.1 Preparation of the Request for Proposal

The Request for Proposal shall be prepared in accordance with Section 3-202.03 (The Invitation for Bid) regarding Invitations for Bids provided that it shall also include:

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(a) a statement that discussions may be conducted with offerors who submit proposals determined to be reasonably susceptible of being selected for award, but that proposals may be accepted without such discussions;

(b) a statement of when and how price should be submitted; and

(c) the information required in Section 3-203.04.2.

3- 203.04.2 Form of the Request for Proposal

The Request for Proposal shall be in the form specified by the Procurement Officer and contain at least the following information:

(a) type of services required;

(b) a description of the work involved;

(c) an estimate of when and for how long the services will be required;

(d) the type of contract to be used;

(e) a date by which proposals for the performance of the services shall be submitted;

(f) a statement that the proposals shall be in writing;

(g) a statement that offerors may designate those portions of the proposals which contain trade secrets or other proprietary data which may remain confidential in accordance with Mississippi Code Annotated §§ 25-61-9 and 79-23-1;

(h) a statement of minimum information that the proposal shall contain, including:

(1) the name of the offeror, the location of the offeror’s principal place of business and, if different, the place of performance of the proposed contract;

(2) the age of the offeror’s business and average number of employees over a previous period of time, as specified in the Request for Proposal;

(3) the abilities, qualifications, and experience of all persons who would be assigned to provide the required services;

(4) a listing of other contracts under which services similar in scope, size, or discipline to the required services were performed or undertaken within a previous period of time, as specified in the Request for Proposal; and,

(5) a plan giving as much details as is practical explaining how the services will be performed.

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(i) the factors to be used in the evaluation and selection process and their relative importance.

3- 203.05 Proposal Preparation Time

Proposal preparation time shall be set to provide offerors a reasonable time to prepare their proposals.

3- 203.06 Form of Proposal

The manner in which proposals are to be submitted, including any forms to be used, shall be included as part of the Request for Proposal.

3- 203.07 Public Notice

Public notice shall be given by distributing the Request for Proposal in the same manner provided for distributing an Invitation for Bid under Section 3-202.06 (Public Notice).

3- 203.08 Pre-proposal Conferences

Pre-proposal conferences may be conducted in accordance with Section 3-202.07 (Pre-Bid Conferences). Any such conference should be held prior to submission of initial proposals.

3- 203.09 Amendments to Requests for Proposals

Amendments to Requests for Proposals may be made in accordance with Section 3-202.08 (Amendments to Invitations for Bids) prior to submission of proposals. After submission of proposals, amendments may be made in accordance with Section 3-202.19.2 (Procedure for Phase-One of Multi-Step Sealed Bidding, Amendments to the Invitation for Bid).

3- 203.10 Modification or Withdrawal of Proposals

Proposals may be modified or withdrawn prior to the established due date in accordance with Section 3-202.09 (Pre-Opening Modification or Withdrawal of Bids). For the purposes of this section and Section 3-203.11 (Late Proposals, Late Withdrawals, and Late Modifications) below, the established due date is either the time and date announced for receipt of proposals or receipt of modifications to proposals, if any; or if discussions have begun, it is the time and date by which best and final offers must be submitted, provided that only offerors who submitted timely proposals may submit best and final offers.

3- 203.11 Late Proposals, Late Withdrawals, and Late Modifications

Any proposal, withdrawal, or modification received after the established due date is late. See Section 3-203.10 (Modification or Withdrawal of Proposals) for the definition of “established due date.” Any proposal, withdrawal, or modification not received at the place designated for receipt of proposals is late. Late proposals, withdrawals, or modifications may only be

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considered in accordance with Section 3-202.10 (Late Bids, Late Withdrawals, and Late Modifications).

3- 203.12 Receipt, Opening, and Registration of Proposals

Proposals shall be opened in the presence of two or more agency officials. Proposals and modifications shall be date-stamped or time/date-stamped upon receipt and held in a secure place until the established due date.

After the date established for receipt of proposals, a Register of Proposals shall be prepared by the Procurement Officer which shall include for all proposals:

(a) the name of each offeror;

(b) the number of modifications received, if any; and,

(c) a description sufficient to identify the service offered.

3- 203.12.1 Requests for Nondisclosure of Data

The Procurement Officer shall examine all offers to identify any written requests for nondisclosure of trade secrets and other proprietary data. Any disclosure of this information is subject to the provisions of Mississippi Code Annotated §§ 25-61-9 and 79-23-1.

3- 203.13 Evaluation of Proposals

3- 203.13.1 Evaluation Factors in the Request for Proposal

The Request for Proposal shall state all of the evaluation factors, including price, and their relative importance.

3- 203.13.2 Evaluation

The evaluation shall be based on the evaluation factors set forth in the Request for Proposal. Factors not specified in the Request for Proposal shall not be considered. The following factors shall be listed and shall be considered in conducting the evaluation. The relative importance of these and other factors will vary according to the type of services being procured. The minimum factors are:

(a) the plan for performing the required services;

(b) ability to perform the services as reflected by technical training and education, general experience, specific experience in providing the required services, and the qualifications and abilities of personnel proposed to be assigned to perform the services;

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(c) the personnel, equipment, and facilities to perform the services currently available or demonstrated to be made available at the time of contracting;

(d) a record of past performance of similar work; and,

(e) price.

3- 203.13.2.1 Evaluation Scoring

Evaluations shall be performed using a standard, 100 point scoring scale.

Example of weighted score criteria:

Proposed Plan – 30 points (30%)

Ability to Perform Services – 20 points (20%)

Personnel, Equipment, and Facilities – 15 points (15%)

Price Proposal – 20 points (20%)

Record of Past Performance – 15 points (15%)

Total Score = 100 points (100%)

3- 203.13.3 Classifying Proposals

For the purpose of conducting discussions under Section 3-203.14 (Proposal Discussions with Individual Offerors) below, proposals shall initially be classified as:

(a) acceptable;

(b) potentially acceptable (that is, reasonably susceptible of being made acceptable); or,

(c) unacceptable.

Offerors whose proposals are unacceptable shall be sent written notification promptly. The notification should state their proposal was deemed unacceptable and should include a specific reason or reasons for it being declared unacceptable.

3- 203.14 Proposal Discussions with Individual Offerors

3- 203.14.1 “Offerors” Defined

For the purposes of Section 3-203.01(f) (Competitive Sealed Proposals, Discussions with Responsible Offerors and Revisions to Proposals) and this section, the term “offerors”

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includes only those businesses submitting proposals that are acceptable or potentially acceptable. The term does not include businesses which submitted unacceptable proposals.

3- 203.14.2 Purposes of Discussions

Discussions may be held to:

(a) promote understanding of the State’s requirements and the offeror’s proposals;

(b) facilitate arriving at a contract that will be most advantageous to the State taking into consideration price and the other evaluation factors set forth in the Request for Proposal; and,

(c) determine in greater detail such offeror’s qualifications.

3- 203.14.3 Conduct of Discussions

Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussions and revisions of proposals. The Procurement Officer should establish procedures and schedules for conducting discussions. If, during discussions, there is a need for any substantial clarification of or change in the Request for Proposal, the Request for Proposal shall be amended to incorporate such clarification or change. Auction techniques (revealing one offeror’s price to another) and/or disclosure of any information derived from competing proposals are prohibited. Any substantial oral clarification of a proposal shall be reduced to writing by the offeror. The Procurement Officer shall keep a record of the date, place, and purpose of meetings and those attending and place same in the agency’s procurement file.

3- 203.14.4 Best and Final Offers

If allowed by the Request for Proposal and if necessary for proper evaluation, the Procurement Officer shall establish a common date and time for the submission of best and final offers. Best and final offers shall be submitted only once; provided, however, the Agency Head may make a written determination that it is in the State’s best interest to conduct additional discussions or change the State’s requirements and require another submission of best and final offers. The Agency Head’s written determination shall be maintained in the agency’s procurement file. Otherwise, no discussion of or changes in the best and final offers shall be allowed prior to award. Offerors shall also be informed that if they do not submit a notice of withdrawal or another best and final offer, their immediate previous offer will be construed as their best and final offer.

3- 203.15 Mistakes in Proposals

3- 203.15.1 Modification or Withdrawal of Proposals

Proposals may be modified or withdrawn as provided in Section 3-203.10 (Modification or Withdrawal of Proposals).

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3- 203.15.2 Confirmation of Proposal

When the Procurement Officer knows or has reason to conclude before award that a mistake has been made in a proposal, such officer should request the offeror to confirm that the proposal is correct. If the offeror alleges mistake, the proposal may be corrected if the conditions set forth in Subsection 3-203.15.3 through 3-203.15.5 below are met.

3- 203.15.3 Mistakes Discovered after Receipt of Proposals but Before Award

This subsection sets forth procedures to be applied in four situations in which mistakes in proposals are discovered after receipt of proposals but before award:

(a) During Discussions, Prior to Best and Final Offers: Once discussions are commenced with any offeror or after best and final offers are requested, any offeror may freely correct any mistake by modifying or withdrawing the proposal until the time and date set for receipt of best and final offers;

(b) Minor Informalities: Minor informalities, unless otherwise corrected by an offeror as provided in this section, shall be treated as they are under competitive sealed bidding. See Section 3-202.12.4 (Mistakes Discovered After Opening Bid But Before Award);

(c) Correction of Mistakes: If discussions are not held or if the best and final offers upon which award will be made have been received, mistakes may be corrected and the intended correct offer considered only if:

(1) the mistake and the intended correct offer are clearly evident on the face of the proposal; or,

(2) the mistake is not clearly evident on the face of the proposal, but the offeror submits proof of evidentiary value which clearly and convincingly demonstrates both the existence of a mistake and the intended correct offer, and such correction would not be contrary to the fair and equal treatment of other offerors.

(d) Withdrawal of Proposals: If discussions are not held or if the best and final offers upon which award will be made have been received, the offeror may be permitted to withdraw the proposal if:

(1) the mistake is clearly evident on the face of the proposal and the intended correct offer is not;

(2) the offeror submits proof of evidentiary value which clearly and convincingly demonstrates that a mistake was made but does not demonstrate the intended correct offer; or,

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(3) the offeror submits proof of evidentiary value which clearly and convincingly demonstrates the intended correct offer but to allow correction would be contrary to the fair and equal treatment of the other offerors.

3- 203.15.4 Mistakes Discovered In Proposals After Award

Mistakes shall not be corrected after award of the contract except when the Agency Head finds it would be unconscionable not to allow the mistake to be corrected.

3- 203.15.5 Determinations Required

When a proposal is corrected or withdrawn, or correction or withdrawal is denied under Subsections 3-203.15.3(b), (c), (d), or 3-203.15.4, a written determination shall be prepared and maintained in the agency procurement file showing that relief was granted or denied in accordance with these regulations. The Agency Head shall prepare the determination, except under Subsection 3-203.15.3(b), the determination may be prepared by the Procurement Officer. The written determination shall be maintained in the procurement file.

3- 203.16 Award

The Procurement Officer shall make a written determination showing the basis on which the award was found to be most advantageous to the State based on the factors set forth in the Request for Proposal. The written determination shall be maintained in the procurement file. This shall include an analysis describing why the personal or professional services contract was awarded, renewed, or amended to be published in accordance with Section 2-203.17 (Publicizing Award).

3- 203.17 Publicizing Award

Written notice of award shall be sent to all offerors and copies of such notices shall be maintained in the procurement file. Notice of award shall be made available to the public in accordance with Executive Order 1362. The public notice of award must be accompanied by an analysis describing why the personal or professional services contract was awarded, renewed, or amended.

3- 204 COMPETITIVE SEALED QUALIFICATIONS

3- 204.01 Conditions for Use

The competitive sealed qualifications procurement method is used when the qualifications or specialized expertise of the respondent is critical to meet the needs of the agency and is the most important factor in selection. Single or multiple awards may be made depending upon the number of respondents needed by the agency to provide the service. Competitive sealed qualifications are sought through a Request for Qualifications (hereinafter referred to as “RFQ”). Respondents to the RFQ must submit a Statement of Qualifications (hereinafter

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referred to as “SOQ”). A contract may be entered into by competitive sealed qualifications as provided herein.

3- 204.02 Content of the Request for Qualifications

The RFQ shall include, but is not limited to, the following information:

(a) A description of the services to be provided;

(b) The minimum qualifications required, such as education, license(s), certification(s), experience, special skills needed to perform the services, the capacity and capability to perform the services within a relevant deadline, and the past record of performance with respect to such factors as control of costs, quality of work, and ability to meet schedules and deadlines;

(c) The manner in which SOQ’s will be evaluated, including the relative weight to be given to each qualification criterion, if not equal in weight;

(d) An estimate of when and for how long the services will be required;

(e) The type of contract to be used;

(f) The deadline and manner the SOQ’s are to be submitted;

(g) The required form and content of the SOQ;

(h) The method through which a price will be determined;

(i) The deadline for submission of questions and posting of answers, if applicable;

(j) Information regarding the pre-conference, if applicable;

(k) Information regarding discussions with acceptable respondents, if applicable; and,

(l) A statement of minimum information that the SOQ should contain, including:

(1) The name of the respondent, the location of the respondent’s principal place of business and, if different, the place of performance of the proposed contract;

(2) The age of the respondent’s business and average number of employees over a previous period of time, as specified in the RFQ, except when respondent is a contract worker as defined in accordance with Section 3-101.04;

(3) The qualifications, including licenses, certifications, education, skills, and experience of all persons who would be assigned to provide the required services; and,

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(4) A listing of other contracts under which services similar in scope, size, or discipline to the required services were performed or undertaken within a previous period of time, as specified in the RFQ.

3- 204.03 Public Notice

Public notice of the RFQ shall be given in the same manner as provided in Sections 3- 202.01(c) and 3-202.06 (Competitive Sealed Bidding, Public Notice).

3- 204.04 Amendments to Requests for Qualifications

Amendments to RFQ’s may be made in accordance with Section 3-202.08 (Amendments to Invitations for Bids) prior to submission of SOQ packets. After submission, amendments may be made in accordance with Section 3-202.19.2 (Procedure for Phase-One of Multi-Step Sealed Bidding, Amendments to the Invitation for Bid).

3- 204.05 Modification or Withdrawal of Statements of Qualifications

SOQ packets may be withdrawn prior to the established due date in accordance with Section 3- 202.09 (Pre-Opening Modification or Withdrawal of Bids). For the purposes of this section and Section 3-204.06 (Late Proposals, Late Withdrawals, and Late Modifications) below, the established due date is the time and date set by the RFQ for receipt of submissions.

3- 204.06 Late Submissions, Late Withdrawals, and Late Modifications

Any SOQ packet received after the established due date is late. See Section 3-203.10 (Modification or Withdrawal of Proposals) for the definition of “established due date.” Packets not received at the place designated for receipt of submissions are late. Late packets may only be considered in accordance with Section 3-202.10 (Late Bids, Late Withdrawals, and Late Modifications).

3- 204.07 Receipt and Registration of Statements of Qualifications

The SOQ packets shall be opened in the presence of two or more agency officials. The submitted packets shall be date-stamped or time/date-stamped upon receipt and held in a secure place until the established due date.

After the date established for receipt of SOQs, a Register of Respondents shall be prepared by the Procurement Officer which shall include for all SOQs:

(a) The name of each respondent;

(b) The number of modifications received, if any; and

(c) A description sufficient to identify the qualifications submitted.

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3- 204.08 Requests for Nondisclosure of Data

The Procurement Officer shall examine the SOQ packets to identify any written requests for nondisclosure of trade secrets and other proprietary data. Any disclosure of this information is subject to the provisions of Mississippi Code Annotated §§ 25-61-9 and 79-23-1.

3- 204.09 Evaluation of Statements of Qualifications

3- 204.09.1 Evaluation Committee

The Agency Head shall appoint an evaluation committee.

3- 204.09.2 Evaluation and Classification of Statements of Qualifications

The committee shall evaluate each SOQ packet as provided in the RFQ. The committee shall classify SOQ packets as acceptable, potentially acceptable, or unacceptable. For any packet classified as unacceptable, the respondent shall be promptly notified in writing of the classification and the reasons therefor. A copy of the written notification shall be kept in the procurement file. If a packet is classified as unacceptable, the Agency Head or his designee shall record in writing the basis for the finding of unacceptability and make it part of the procurement file.

If provided in the RFQ, discussions may be held with individual respondents as provided in Section 3- 204.10. If discussions are not held, the evaluation committee shall provide the Procurement Officer with a list of all acceptable respondents, ranking them in order of highest to lowest qualified. If discussions are held, the committee shall provide the list after consideration and evaluation of the information provided during the discussions. Only respondents classified as acceptable after discussions, if any, shall be included on the list.

3- 204.10 Discussions with Individual Respondents

Discussions may only be held with respondents whose SOQ packets are classified as acceptable or potentially acceptable. All respondents so classified shall be given an equal and fair opportunity to participate in individual discussions. The purpose of discussions is to determine in greater detail each respondent’s qualifications and to determine if a respondent classified as potentially acceptable should be reclassified as acceptable.

3- 204.10.1 Conduct of Discussions

The Procurement Officer shall keep a record of the date, place, attendees, and a summary of the discussions of any such meeting, and make it part of the procurement file.

3- 204.11 Determination of Price

Price may be determined using one of the following methods:

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(a) The agency may set the price; or

(b) The agency may request that respondents submit sealed pricing documents to be opened only after the evaluation of statements of qualifications, in accordance with Section 3- 204.12.

3- 204.12 Multi-Step Sealed Qualifications

Multi-step sealed qualifications is designed to obtain the benefits of consideration of price and at the same time obtain the benefits of the competitive sealed qualifications procedure through the solicitation of statements of qualifications and the conduct of discussions and evaluation of statements of qualifications to determine the most qualified respondent.

3- 204.12.1 Definition

Multi-step sealed qualifications is a two-phase process consisting of the following:

(a) First phase – the respondents’ statements of qualifications are evaluated and a determination is made as to whether a respondent is qualified; and,

(b) Second phase – the respondents whose statements of qualifications are determined to be qualified based on the evaluation of the criteria from the first phase have their sealed pricing documents opened.

3- 204.12.2 Conditions for Use

The multi-step sealed qualifications method may be used when it is not practical for the agency to determine the price prior to the procurement and when the qualifications or specialized expertise of the respondent is critical to meet the needs of the agency and is the most important factor in selection.

3- 204.12.3 Procedure for Phase One of Multi-Step Sealed Qualifications

3- 204.12.4 Conduct of Phase One

Phase One shall be conducted in accordance with Sections 3-204.01-3- 204.10 except that respondents deemed qualified shall be ranked as most to least qualified.

3- 204.12.5 Form

Multi-step sealed qualifications shall be initiated by issuance of a Request for Qualifications in the form required by Section 3-204.02, except as hereinafter provided. In addition to the requirements set forth in Section 3-204.02, the multi-step sealed qualifications shall state:

(a) That sealed pricing offers are requested;

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(b) Whether the sealed pricing offers are to be submitted at the same time as the statements of qualifications (if they are, such pricing documents shall be submitted in a separate sealed envelope);

(c) That it is a multi-step sealed qualifications procurement, and the pricing documents will be considered only in the second phase and only from those respondents who are found to be qualified in the first phase;

(d) That the State will then evaluate the Statements of Qualifications with pricing added in as a weighted factor and the set weight;

(e) That the State, to the extent the Procurement Officer finds necessary, may conduct oral or written discussions of the statements of qualifications; and,

(f) That the service being procured shall be furnished in accordance with the respondent’s SOQ as found to be finally acceptable and shall meet the requirements of the Request for Qualifications.

3- 204.12.6 Procedure for Phase Two of Multi-Step Sealed Qualifications

3- 204.12.6.1 Initiation

Upon completion of Phase One, the Procurement Officer shall either:

(a) Open the sealed pricing documents submitted in Phase One (if pricing bids were required to be submitted) from respondents who were found to be qualified; or,

(b) Invite each qualified respondent to submit a sealed pricing document bid, if pricing documents were not submitted.

3- 204.12.6.2 Conduct of Phase Two

Pricing documents shall be opened in the presence of two or more agency officials. The submitted documents shall be date-stamped or time/date-stamped upon receipt and held in a secure place until the established due date.

The procurement officials will then evaluate the submitted statements of qualifications and pricing documents together, using the weighted criteria set from the Request for Qualifications, including the set weight for price for the second phase. The respondents will then be ranked from highest to lowest based on the scoring of the weighted criteria, including price.

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3- 204.12.7 Mistakes During Multi-Step Sealed Qualifications

Mistakes may be corrected or statements of qualifications may be withdrawn during Phase One at any time. During Phase Two, mistakes may be corrected or withdrawal permitted in accordance with Section 3-202.12 (Mistakes in Bids).

3- 204.13 Award

Award shall be made to the highest ranked respondent, or respondents, if multiple contracts are required based upon the needs of the agency. The Agency Head or his designee shall make a written determination showing the basis on which the award was found to be most advantageous to the State based on the factors set forth in the RFQ. The written determination shall be maintained in the procurement file. This shall include an analysis describing why the personal or professional services contract was awarded, renewed, or amended to be published in accordance with Section 2-204.12 (Publicizing Award).

3- 204.14 Publicizing Award

Written notice of award shall be sent to all respondents and copies of such notices shall be maintained in the procurement file. Notice of award shall be made available to the public in accordance with Executive Order 1362. The public notice of award must be accompanied by an analysis describing why the personal or professional services contract was awarded, renewed, or amended.

3- 205 SMALL PURCHASES

Any procurement for personal or professional services not exceeding $75,000, except for sole- source purchases, is considered a small purchase and may be made in accordance with small purchase procedures provided herein. Procurement requirements shall neither be artificially divided nor shall the extent of the service required be underestimated so as to constitute a small purchase under this section. This section applies to procurements for personal or professional services of $75,000 or less.

3- 205.01 Authority to Make Small Purchases

3- 205.01.1 Amount

The Purchasing Agency may use this Regulation if the procurement for services is to be $75,000 or less, with the exception of contract workers as defined in Section 3-101.04. If these methods are not used, the other methods of source selection provided in Section 3-201 (Methods of Source Selection) shall apply.

3- 205.01.2 Available from One Source Only

If the service is available from only one source, the sole-source procurement method set forth in Section 3-205 (Sole-Source Procurement) of these regulations shall be used.

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3- 205.01.3 Division of Requirements

Procurement specifications shall not be artificially divided to avoid using the other source selection methods set forth in Section 3-201 (Methods of Source Selection). Generally, there should only be one contract within an agency per vendor for a particular service type.

3- 205.02 Small Purchases of Services Greater than $50,000, Not Exceeding $75,000

3- 205.02.1 Procedure

Insofar as it is practical for small purchases of services greater than $50,000 and not exceeding $75,000, no less than three (3) sources shall be solicited to submit written responses that are recorded and placed in the procurement file. Written responses must be either signed on letterhead or otherwise identifiable to be valid. Written responses shall, at a minimum, contain the following information:

(a) A statement of price;

(b) Terms of the agreement;

(c) Description of services offered by the vendor to the agency; and,

(d) Name, address and telephone number of the vendor.

If this method is used, award shall be made to the vendor offering the lowest and best bid or proposal. In the event three written responses are not obtained, the agency shall include a memo to the procurement file explaining why this was not accomplished.

3- 205.02.2 Records

The names of the vendors submitting quotations and the date and amount of each quotation shall be recorded and maintained as a public record.

3- 205.02.3 Award and Notification

Award shall be made to the vendor offering the lowest and best response. All vendors submitting responses shall be promptly notified in writing of the contract award. In the event three written responses are not obtained, the agency shall include a memo to the procurement file explaining why this was not accomplished. A copy of each notification letter shall be kept in the procurement file. Notice of award shall be made available to the public upon request.

3- 205.04 Small Purchases of $50,000 or Less

The Agency Head shall adopt operational procedures for making small purchases of $50,000 or less. Such operational procedures shall provide for obtaining adequate and reasonable

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competition and for making records to properly account for funds and to facilitate auditing of the Purchasing Agency. No approval by the PSCRB is required for these purchases.

3- 206 SOLE-SOURCE PROCUREMENT

Sole-source procurements are limited to procurements in which the Agency Head determines in writing that only one source is available that can provide the required personal or professional service and the agency complies with all requirements of this section including, but not limited to, publication under Section 3-206.04.

3- 206.01 Application

The provisions herein apply to all sole-source procurements, regardless of the value of the procurement.

3- 206.02 Conditions for Use of Sole-Source Procurement

Sole-source procurement is not permissible unless a service is available from only a single vendor. The determination as to whether a procurement shall be made as a sole-source shall be made and approved by the Agency Head. Such determination and the basis therefor shall be in writing, signed by the Agency Head, and maintained in the procurement file. The Agency Head may specify the application of such determination and the duration of its effectiveness.

If a binding, valid court order has been issued mandating that a particular source or provider must be used for the required service:

(a) A copy of the applicable court order must be attached to the Agency Head written determination and included in all future sole-source contract submissions for the particular personal or professional service referenced in the court order; and

(b) The agency is exempt from the requirements of Sections 3-206.04, 3-206.05, and 3-206.06 (MS AG Op. Wright, October 23, 2015).

3- 206.03 Negotiation in Sole-Source Procurement

The Agency Head shall conduct negotiations, as appropriate, as to price, delivery, and terms. If the contract amount is greater than $75,000, the contracts must be forwarded to the PSCRB for approval prior to any services being rendered.

3- 206.04 Publication

Any agency alleging to have a sole-source for any personal or professional service shall have the terms of the proposed contract for the service published on the Mississippi Contract/Procurement Opportunity Search Portal website for at least fourteen (14) consecutive days, unless the agency is exempt pursuant to Section 3-206.02.

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3- 206.04.1 Content of Publication

Publication of a sole-source award shall include, but is not limited to, the following information:

(a) The personal or professional service offered in the contract;

(b) An explanation of why the personal or professional service is the only one that can meet the needs of the agency;

(c) An explanation of why the source is the only person or entity that can provide the required personal or professional service;

(d) An explanation of why the amount to be expended for the personal or professional service is reasonable;

(e) The efforts that the agency made to obtain the best possible price for the personal or professional service; and

(f) Instructions for filing objections pursuant to Section 3- 206.05 (Objection to Sole-Source Determination) with current contact information for the agency that published the proposed sole-source contract and the PSCRB.

3- 206.05 Objection to Sole-Source Determination

If any person or entity objects and proposes that the personal or professional service published in accordance with Section 3-206.04 (Publication) is not a sole-source service and that the service can be provided by another person or entity, the objecting person or entity shall notify the agency that published the proposed sole-source contract and the PSCRB in writing with a detailed explanation of why the personal or professional service is not a sole-source service. The objection must be submitted to the agency within seven (7) calendar days of the date of the last publication under Section 3-206.04.

3- 206.05.1 Review of Objection to Sole-Source Determination

(a) If the agency determines after review that the personal or professional service in the proposed sole-source contract can be provided by another person or entity, then the agency must withdraw the sole-source contract publication from the procurement portal website and submit the procurement of the personal or professional service to an advertised competitive bid or selection process complying with the requirements of Section 3- 201 (Method of Source Selection).

(b) If the agency determines after review that there is only one source for the required personal or professional service, then the agency may appeal to the Personal Service Contract Review Board. The appeal shall be submitted to PSCRB thirty (30) days before the next

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regularly scheduled PSCRB meeting. The agency has the burden of proving that the personal or professional service is only provided by one source.

(c) If the PSCRB has any reasonable doubt as to whether the personal or professional service can only be provided by one source, then the agency must submit the procurement of the personal or professional service to an advertised competitive bid or selection process following the requirements of Section 3-201 (Method of Source Selection).

(d) No action taken by the PSCRB in this appeal process shall be valid unless approved by the chairman and two (2) other members of the PSCRB present and voting.

3- 206.06 Sole-Source Procurement Written Determination

All sole-source contracts for personal and professional services awarded by state agencies, whether approved by an Agency Head or the PSCRB, shall contain in the procurement file a written determination for the approval, using a request form furnished by the PSCRB. The written determination shall document the basis for the determination, including any market analysis conducted in order to ensure that the service required was practicably available from only one source. A memorandum shall accompany the request form and address the following four points:

(a) Explanation of why this service is the only service that can meet the needs of the purchasing agency;

(b) Explanation of why this vendor is the only practicably available source from which to obtain this service;

(c) Explanation of why the price is considered reasonable; and

(d) Description of the efforts that were made to conduct a noncompetitive negotiation to get the best possible price for the taxpayers.

3- 206.07 Sole-Source Reporting Requirement

The PSCRB shall prepare and submit a quarterly report to the House of Representatives and Senate Committees on Accountability, Efficiency, and Transparency that details the sole- source contracts presented to the PSCRB and the reasons that the PSCRB approved or rejected each contract. Such quarterly reports shall also include the documentation and memoranda required in Section 3-206.06 (Sole-Source Procurement Written Determination). Agencies submitting sole-source contracts shall cooperate with PSCRB staff in providing the information necessary for this report. Any agency that submitted a sole-source contract shall be prepared to explain the sole-source contract to each committee by December 15 of each year upon request by the committee.

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3- 207 EMERGENCY PROCUREMENT

The PSCRB does not approve emergency contracts. If the Agency Head of any agency determines that an emergency exists in regard to the procurement of personal or professional services so that the delay incident to undertaking a competitive procurement would threaten the health or safety of any person, or the preservation or protection of property, then the Agency Head or his designee may make an emergency procurement. Emergency procurements shall be made with such competition as is practicable under the circumstances.

3- 207.01 Determination to Make Emergency Procurement

The Agency Head shall make a written determination of the conditions and circumstances of the emergency, including a detailed description of the events leading up to the situation, the negative impact to the agency if the procurement of services is required to be competitively bid, and the basis for the selection of the particular contractor. The written determination shall be signed by the Agency Head and maintained in the procurement file. The term of an emergency contract shall not exceed one year.

3- 207.02 Scope of Emergency Procurement

Emergency procurement shall be limited to those personal or professional services necessary to meet the emergency. The term of an emergency contract shall be limited to the time necessary to meet the emergency, but in no circumstances shall the term exceed one year. If the agency will continue to need the personal or professional services beyond the term of the emergency contract, the agency must take the necessary steps to competitively procure the services before the emergency contract expires.

3- 207.03 Emergency Contracts Greater than $75,000

The PSCRB does not approve Emergency Contracts. However, any contract resulting from an emergency procurement shall be forwarded to the PSCRB within 10 days of execution for SPAHRS or MAGIC processing, if the contract amount is greater than $75,000.

3- 208 PREAPPROVED VENDOR LISTS

Mississippi Code Annotated § 25-9- 120 authorizes the PSCRB to, “establish a preapproved list of providers of various personal and professional services for set prices with which state agencies may contract without bidding or prior approval from the [B]oard.” The PSCRB at its discretion may exercise its authority and establish preapproved vendor lists for use by entities under PSCRB purview. The preapproved vendor lists shall be posted on the PSCRB tab of the MSPB webpage at: http://www.mspb.ms.gov . Use of the preapproved vendor lists is optional.

3- 208.01 Procedure

The agency should locate the preapproved vendor list for the selected service in the region where the service is to be provided. The agency is encouraged, but not required, to contact the lowest bidder first. Once a vendor is selected, the agency and the vendor should finalize the

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negotiable terms and prepare a contract. The agency may use a form contract for the selected service drafted by the PSCRB and posted on the website. Use of the PSCRB form contract is strictly optional. The agency may use a contract it prepares as long as the contract adheres to the required terms and conditions as stated in the PSCRB form contract. Any additional terms or change in non-negotiable terms, such as the scope of services, may not be used.

3- 208.02 Approval of Contracts Procured Using a Preapproved Vendors List

PSCRB staff has the authority to approve agency contracts with vendors from any PSCRB established List of Preapproved Providers of Services. This authority is limited to contracts with scopes of service consistent with the IFB used to establish the list.

3- 301 CANCELLATION OF SOLICITATIONS

A Solicitation may be canceled, or any or all responses to the solicitation may be rejected in whole or in part as may be specified in the solicitation, when it is in the best interest of the State. The reasons shall be made part of the contract file.

3- 301.01 Scope of this Regulation

The provisions herein shall govern the cancellation of any solicitations whether issued by the State under competitive sealed bidding, competitive sealed proposals, competitive sealed qualifications, or any other source selection method, and the rejection of bids, proposals, or statements of qualifications in whole or in part.

3- 301.02 Policy

Solicitations should only be issued when there is a valid procurement need unless the solicitation states that it is for informational purposes only. Preparing and distributing a solicitation requires the expenditure of time and funds. Businesses and other entities likewise incur expense in examining and responding to solicitations. Accordingly, although issuance of a solicitation does not compel award of a contract, a solicitation is to be canceled only when there are compelling reasons to believe that the cancellation of the solicitation is in the State’s best interest.

3- 301.03 Cancellation of Solicitation – Notice

Each solicitation issued by the State shall declare that the solicitation may be canceled as provided herein.

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3- 301.04 Cancellation of Solicitation; Rejection of All Bids, Proposals, or Statements of Qualifications

3- 301.04.1 Prior to Opening

(a) As used in this section, “opening” means the date set for opening of bids, receipt of unpriced technical offers in multi-step sealed bidding, receipt of proposals in competitive sealed proposals, or receipt of SOQs in competitive sealed qualifications.

(b) Prior to opening, a solicitation may be canceled in whole or in part when the Agency Head determines in writing that such action is in the State’s best interest for reasons including, but not limited to:

(1) the agency no longer requires the services;

(2) the agency no longer can reasonably expect to fund the procurement; or,

(3) proposed amendments to the solicitation would be of such magnitude that a new solicitation is desirable.

(c) When a solicitation is canceled prior to opening, notice of cancellation shall be sent to all businesses solicited.

(d) The notice of cancellation shall:

(1) identify the solicitation;

(2) briefly explain the reason for cancellation; and,

(3) where appropriate, explain that an opportunity will be given to compete on any resolicitation or any future procurement of similar services.

3- 301.04.2 After Opening-Prior to Award

(a) After opening but prior to award, all bids, proposals, or SOQs may be rejected in whole or in part when the Agency Head determines in writing that such action is in the State’s best interest for reasons including, but not limited to:

(1) the services being procured are no longer required;

(2) ambiguous or otherwise inadequate specifications were part of the solicitation;

(3) the solicitation did not provide for consideration of all factors of significance to the buying entity;

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(4) prices exceed available funds and it would not be appropriate to adjust quantities to come within available funds;

(5) all otherwise acceptable bids, proposals, or SOQs received are at clearly unreasonable prices; or,

(6) there is reason to believe that the bids, proposals, or SOQs may not have been independently arrived at in open competition, may have been collusive, or may have been submitted in bad faith.

(b) A notice of rejection should be sent to all businesses that submitted bids, proposals, or SOQs, and shall conform to Section 3-301.04.1(d).

3- 301.04.3 After Opening – After Award

After opening and after award, but prior to signing a contract, an award may be canceled when the Agency Head determines in writing that such action is in the State’s best interest for reasons including, but not limited to:

(a) available funding for the contractual service has been discontinued;

(b) credible evidence has been presented that the procurement was tainted; or,

(c) the solicitation document allows the agency’s stated reason for cancellation.

3- 301.04.4 Documentation

The reasons for cancellation or rejection shall be made a part of the agency’s procurement file and shall be available for public inspection.

3- 301.05 Rejection of Individual Bids, Proposals, or Statements of Qualifications

3- 301.05.1 General

This section applies to rejections of individual bids, proposals, or SOQs in whole or in part.

3- 301.05.2 Notice in Solicitation

Each solicitation issued by the State shall provide that any bids, proposals, or SOQs may be rejected in whole or in part when in the best interest of the State.

3- 301.05.3 Reasons for Rejection

(a) Bids. As used in this section, “bid” means any offer providing pricing submitted in competitive sealed bidding or in the second phase of multi-step sealed bidding, and

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includes submissions under Section 3-205 (Small Purchases), if no changes in offers are allowed after submission. Reasons for rejecting a bid include but are not limited to:

(1) the business that submitted the bid is non-responsible as determined under Section 3- 401.06 (Written Determination of Non-responsibility Required) of this chapter;

(2) the bid is non-responsive; that is, it does not conform in all material respects to the Invitation for Bid, see Section 3-202.13.2 (Service/End Product Acceptability) of this chapter;

(3) the supply or service item offered in the bid is unacceptable by reason of its failure to meet the requirements of the specifications or permissible alternates or other acceptability criteria set forth in the Invitation for Bid. See Section 3-202.13.2 (Service/End Product Acceptability);

(4) lack of competitiveness by reason of collusion or knowledge that reasonably available competition was not received;

(5) error in specifications or indication that revisions would be to the State’s advantage;

(6) cancellation or changes in the intended project or other determination that the proposed requirement is no longer needed; or

(7) limitation or lack of available funds.

(b) Proposals. As used in this section, “proposal” means any offer submitted in response to any solicitation for a proposal, including an offer under Section 3-205 (Small Purchases), except a bid as defined in Section 3-301.05.3(a). Unless the solicitation states otherwise, proposals need not be unconditionally accepted without alteration or correction, and the stated requirements may be revised or clarified after proposals are submitted. This flexibility must be considered in determining whether reasons exist for rejecting all or any part of a proposal. Reasons for rejecting proposals include but are not limited to:

(1) the offeror that submitted the proposal is non-responsible as determined under Section 3-401 (Responsibility of Bidders and Offerors);

(2) the proposal ultimately (that is, after any opportunity has passed for altering or clarifying the proposal) fails to meet the announced requirements of the State in some material respect; or,

(3) the proposed price is clearly unreasonable.

3- 301.05.4 Notice of Rejection

Vendors that have submitted bids, proposals, or SOQs which are rejected shall be promptly notified in writing of the rejection and the reasons therefor.

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3- 301.06 “All or None” Bids or Proposals

Only when provided by the solicitation may a bid or proposal limit acceptance to the entire bid or proposal offering; otherwise, such bids or proposals shall be deemed to be non-responsive. If the bid or proposal is properly so limited, the agency shall not reject part of such bid or proposal and award on the remainder. “All or none” bids shall not be requested unless it is determined that a multiple number of bidders can provide pricing on all items requested. If the “all or none” requirement limits the bidding to the point that only a single responsive bid is received, the PSCRB will not approve the request unless ample justification is presented.

3- 301.07 Disposition of Bids, Proposals, or Statements of Qualifications

When bids, proposals, or SOQs are rejected, or a solicitation canceled after bids, proposals, or SOQs are received, the bids, proposals, or SOQs which have been opened shall be retained in the agency’s procurement file.

3- 401 RESPONSIBILITY OF BIDDERS, OFFERORS, AND RESPONDENTS

3- 401.01 General Provisions

(a) Determination of Non-responsibility: A written determination of non-responsibility of a bidder, offeror, or respondent shall be made and maintained in the agency’s procurement file. The unreasonable failure of a bidder, offeror, or respondent to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of non-responsibility with respect to such bidder, offeror, or respondent.

(b) Right of Nondisclosure: Disclosure of information furnished by a bidder, offeror, or respondent pursuant to this section outside of the office of the purchasing agency is subject to the provisions of Mississippi Code Annotated §§ 25-61-1 et seq., and 79-23-1. 3- 401.02 Application

A written determination of responsibility or non-responsibility shall be made as provided herein and maintained in the agency’s procurement file.

3- 401.03 Standards of Responsibility

3- 401.03.1 Standards

Factors to be considered in determining whether the standard of responsibility has been met include whether a prospective contractor has: (a) available the appropriate financial, material, equipment, facility, and personnel resources and expertise, or the ability to obtain them, necessary to indicate its capability to meet all contractual requirements;

(b) a satisfactory record of performance;

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(c) a satisfactory record of integrity;

(d) qualified legally to contract with the State; and,

(e) supplied all necessary information in connection with the inquiry concerning responsibility.

3- 401.03.2 Information Pertaining to Responsibility

The prospective contractor shall supply information requested by the Procurement Officer concerning the responsibility of such contractor. If the contractor fails to supply the requested information, the Procurement Officer shall base the determination of responsibility upon any available information or may find the prospective contractor non-responsible if such failure is unreasonable.

3- 401.04 Ability to Meet Standards

The prospective contractor may demonstrate the availability of necessary financing, equipment, facilities, expertise, and personnel by submitting upon request:

(a) evidence that such contractor possess such necessary items;

(b) acceptable plans to subcontract for such necessary items; or,

(c) a documented commitment from or explicit arrangement with, a satisfactory source to provide the necessary items.

3- 401.05 Duty Concerning Responsibility

Before awarding a contract, the Procurement Officer must be satisfied that the prospective contractor is responsible.

3- 401.06 Written Determination of Non-responsibility Required

If a bidder, offeror, or respondent is found non-responsible, a written determination of non- responsibility setting forth the basis of the finding shall be prepared by the Agency Head. A copy of the determination shall be sent promptly to the non-responsible bidder, offeror, or respondent. The final determination shall be made part of the agency’s procurement file.

3- 402 PREQUALIFICATION OF PROSPECTIVE CONTRACTORS

Prospective contractors may be prequalified for particular types of services. Solicitation mailing lists of potential contractors shall include but shall not be limited to such prequalified contractors.

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3- 402.01 Prequalification

3- 402.01.1 General Provision

Prospective contractors may be prequalified for bidder lists, but distribution of the solicitation shall not be limited to prequalified contractors, nor may a prospective contractor be denied award of a contract simply because such contractor was not prequalified. The fact that a prospective contractor has been prequalified does not necessarily represent a finding of responsibility.

3- 403 COST OR PRICING DATA

3- 403.01 General Provision

(a) Contractor Certification: A contractor shall when requested by the buying entity, except as provided in Subsection 3 of this section, submit cost or pricing data and shall certify that, to the best of its knowledge and belief, the cost or pricing data submitted is accurate, complete, and current as of a mutually determined specified date.

(b) Price Adjustment: Any contract, change order, or contract modification under which a contractor certificate is required shall contain a provision that the price to the State, including profit or fee, shall be adjusted to exclude any significant sums by which the State finds that such price was increased because the contractor-furnished cost or pricing data was inaccurate, incomplete, or not current as of the date agreed upon between the parties.

(c) Cost or Pricing Data Not Required: The requirements of this section need not be applied to contracts:

(1) where the contract price is based on adequate price competition;

(2) where the contract price is based on established market prices;

(3) where contract prices are set by law or regulations; or,

(4) where it is determined by the Agency Head in writing that the requirements of this section may be waived and the reasons for such waiver are stated in writing.

(d) When it is determined that an bidder or offeror should provide cost or pricing data to justify a bid or proposal, this regulation may be used as a guideline for such negotiation.

3- 403.02 Requirement for Cost or Pricing Data

The pricing policies which are applicable to contracts of any type and any price adjustments there-under when cost or pricing data are required to be submitted are set forth herein. The provisions herein requiring submission of cost or pricing data do not apply to a contract let by

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competitive sealed bidding (including multi-step bidding) except as may be provided herein below. Cost or pricing data may be required in support of a proposal when:

(a) any contract expected to exceed $75,000 is to be awarded by competitive sealed proposals or by sole-source procurement;

(b) an emergency procurement is made in excess of $75,000, but such data may be submitted after contract award; or,

(c) the Procurement Officer makes a written determination which shall be maintained in the agency’s procurement file that the circumstances warrant required submission of cost or pricing data; provided, however, that cost or pricing data shall not be required where the contract award is made pursuant to competitive sealed bidding.

3- 403.03 Meaning of Terms “Adequate Price Competition,” “Established Market Prices,” and “Prices Set by Law or Regulation”

The terms “adequate price competition,” “established market prices,” and “prices set by law or regulation” shall be construed in accordance with the following definitions:

(a) Adequate Price Competition: Price competition exists if competitive sealed proposals are solicited and at least two responsible offerors independently compete for the contract to be awarded to the responsible offeror submitting the lowest evaluated price and meeting the requirements of the solicitation. If the foregoing conditions are met, price competition shall be presumed to be “adequate” unless the Procurement Officer determines in writing that such competition is not adequate.

(b) Established Market Prices: “Established Market Price” is a current price, established in the usual and ordinary course of trade between buyers and sellers, which can be substantiated from sources which are independent of the contractor and may be an indication of the reasonableness of price. If, despite the existence of an established market price, and after consultation with the prospective contractors, the Procurement Officer considers that such price is not reasonable, cost or pricing data may be requested.

(c) Prices Set by Law or Regulation: The price of a service is set by law or regulation if a governmental body established the price that the offeror or contractor may charge the State and other customers.

3- 403.04 Submission of Cost or Pricing Data and Certification

3- 403.04.1 Time and Manner

When cost or pricing data are required, they shall be submitted to the Procurement Officer prior to beginning price negotiations at the time and in the manner prescribed by the Procurement Officer. When the Procurement Officer requires the offeror or contractor to

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submit cost or pricing data in support of any proposal, such data shall either be actually submitted or specifically identified in writing.

3- 403.04.2 Obligation to Keep Data Current

The offeror or contractor is required to keep such submission current until the negotiations are concluded or, if applicable, until the contract is expired.

3- 403.04.3 Time for Certification

The offeror or contractor shall certify as soon as practicable after agreement is reached on price that the cost or pricing data submitted is accurate, complete, and current as of a mutually determined date prior to reaching agreement. Certification shall be made using the certificate set forth in Section 3-403.05 below.

3- 403.04.4 Refusal to Submit Data

A refusal by the offeror to supply the required data shall be referred to the Agency Head, whose duty shall be to determine in writing whether to disqualify the noncomplying offeror, to defer award pending further investigation, or to enter into the contract. A refusal by a contractor to submit the required data to support a price adjustment shall be referred to the Agency Head who shall determine in writing whether to further investigate the price adjustment, to disallow any price adjustment, or to set the amount of the price adjustment.

3- 403.05 Certificate of Current Cost or Pricing Data

3- 403.05.1 Form of Certificate

When cost or pricing data must be certified, a certificate substantially as set forth below shall be included in the agency’s contract file along with any award documentation required under these regulations. The offeror or contractor shall be required to submit the certificate as soon as practicable after agreement is reached on the contract price or adjustment. CERTIFICATE OF CURRENT COST OR PRICING DATA

This is to certify that, to the best of my knowledge and belief, cost or pricing data as defined in Section 3-101.01 of the Mississippi Personal Service Contract Review Board Rules and Regulations submitted, either actually or by specific identification in writing (see Section 3- 403.04) to the Procurement Officer in support of .......*, is accurate, complete, and current as of (date) (month) (year)**......

This certification includes the cost or pricing data supporting any advance agreement(s) between the offeror and the State of Mississippi which are part of the proposal.

Firm Name Title

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Date of Execution***

--- (End of Certificate) ---

• Describe the proposal, quotation, request for price adjustment or other submission involved, giving appropriate identifying number (e.g., RFP No. ).

** The effective date shall be a mutually determined date prior to, but as close to the date when price negotiations were concluded and the contract price was agreed to, as possible. The responsibility of the offeror or contractor is not limited by the personal knowledge of the offeror’s or contractor’s negotiator if the offeror or contractor had information reasonably available at the time of agreement, showing that the negotiated price is not based on accurate, complete, and current data.

***This date should be as soon after the date when the price negotiations were concluded and the contract price was agreed to as practical.

3- 403.05.2 Representation as to Accuracy of Cost or Pricing Data

Although the certificate pertains to cost or pricing data, it is not to be construed as a representation as to the accuracy of the offeror’s or contractor’s judgment on the estimated portion of future costs or projections. It does constitute a representation as to the accuracy of the data upon which the offeror’s or contractor’s judgment is based. A Certificate of Current Cost or Pricing Data shall not substitute for examination and analysis of the offeror’s or contractor’s proposal.

3- 403.05.3 Inclusion of Notice and Contract Clause

Whenever it is anticipated that a Certificate of Current Cost or Pricing Data may be required, notice of this requirement shall be included in the solicitation. If such a certificate is required, the contract shall include a clause giving the State a contract right to a reduction in the price as provided in Section 3-403.06 (Defective Cost or Pricing Data).

3- 403.05.4 Exercise of Option

The exercise of an option at the price established in the initial negotiation in which certified cost or pricing data was used does not require recertification or further submission of data.

3- 403.06 Defective Cost or Pricing Data

3- 403.06.1 Overstated Cost or Pricing Data

If certified cost or pricing data is subsequently found to have been inaccurate, incomplete, or noncurrent as of the date stated in the certificate, the State is entitled to an adjustment of the contract price, including profit or fee, to exclude any significant sum by which the price was increased because of the defective data.

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Judgmental errors made in good faith concerning the estimated portions of future costs or projections do not constitute defective data. It is presumed that overstated costs or pricing data increased the contract price in the amount of the defect plus related overhead and profit or fee; therefore, unless there is a clear indication that the defective data was not used or relied upon, the price should be reduced in such amount. In establishing that the defective data caused an increase in the contract price, the Procurement Officer is not expected to reconstruct the negotiation by speculating as to what would have been the mental attitudes of the negotiating parties if the correct data had been submitted at the time of agreement on price.

3- 403.06.2 Offsetting Understated Cost or Pricing Data

In determining the amount of a downward adjustment, the contractor shall be entitled to an offsetting adjustment for any understated cost or pricing data submitted in support of price negotiations for the same pricing action up to the amount of the State’s claim for overstated cost or pricing data arising out of the same pricing action.

3- 403.06.3 Dispute

If the contractor and the Procurement Officer cannot agree as to the existence of defective cost or pricing data or amount of adjustment due to defective cost or pricing data, the Procurement Officer shall set an amount in accordance with Subsections 3-403.06.1 and 3- 403.06.2.

3- 403.07 Price Analysis Techniques

Price analysis is used to determine if a price is reasonable and acceptable. It involves an evaluation of the prices for the same or similar items or services. Examples of price analysis criteria include but are not limited to:

(a) price submission of prospective bidders or offers in the current procurement;

(b) prior price quotations and contract prices charged by the bidder, offeror, or contractor;

(c) prices published in catalogs or price lists;

(d) prices available on the open market; and,

(e) in-house estimates of cost.

In making such analysis, consideration must be given to any differing terms and conditions.

3- 403.08 Cost Analysis Techniques

Cost analysis includes the appropriate verification of cost or pricing data, and the use of this data to evaluate:

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(a) specific elements of costs;

(b) the necessity for certain costs;

(c) the reasonableness of amounts estimated for the necessary costs;

(d) the reasonableness of allowances for contingencies;

(e) the basis used for allocation of indirect costs;

(f) the appropriateness of allocations of particular indirect costs to the proposed contract; and,

(g) the reasonableness of the total cost or price.

3- 403.09 Evaluations of Cost or Pricing Data

Evaluations of cost or pricing data should include comparisons of costs and prices of an offeror’s cost estimates with those of other offerors and any independent Mississippi price and cost estimates. They shall also include consideration of whether such costs are reasonable and allowable.

3- 501 TYPES OF CONTRACTS

3- 501.01 Scope of Regulation

This regulation section contains descriptions of types of contracts and limitations as to when they should be utilized by the State in its procurements.

Subject to the limitations of this section, any type of contract which will promote the best interests of the State may be used. A cost reimbursement contract may be used only when a determination is made in writing that such contract is to be less costly to the State than any other type of contract or that it is impracticable to obtain the services required except under such a contract. The written determination shall be maintained in the procurement file.

3- 501.02 Cost-Plus-a- Percentage-of-Cost Contracting

A cost-plus-a-percentage-of-cost contract is one in which, prior to beginning the work, the parties agree that the fee will be a predetermined percentage of the total cost of the work. Thereby, the more the contractor spends, the greater its fee and the contractor’s incentive may, therefore, be to incur cost at the expense of the State and not to economize. Agencies are urged to avoid the use of cost-plus-a-percentage-of-cost contracts.

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3- 501.03 Policy Regarding Selection of Contract Types

3- 501.03.1 General

The selection of an appropriate contract type depends on factors such as the nature of the services to be procured, the uncertainties which may be involved in contract performance, and the extent to which the State or the contractor is to assume the risk of the cost of performance of the contract. Contract types differ in degree of responsibility assumed by the contractor.

The objective when selecting a contract type is to obtain the best value in needed services in the time required and at the lowest cost or price to the State. In order to achieve this objective, the Procurement Officer, before choosing a contract type, should review those elements of the procurement which directly affect the cost, time, risk, and profit incentive bearing on the performance.

Among the factors to be considered in selecting any type of contract are:

(a) the type and complexity of services being procured;

(b) the difficulty of estimating performance costs such as the inability of the State to develop definitive specifications, to identify the risks to the contractor inherent in the nature of the work to be performed, or otherwise to establish clearly the requirements of the contract;

(c) the administrative costs to both parties;

(d) the degree to which the State must provide technical coordination during the performance of the contract;

(e) the effect of the choice of the type of contract on the amount of competition to be expected;

(f) the stability of material or commodity market prices or wage levels;

(g) the urgency of the requirement; and,

(h) the length of contract performance.

Note: It is self-defeating for the State to select a type of contract that would place an unreasonable economic risk on the contractor, since such action may tend to jeopardize satisfactory performance of the contract.

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3- 501.03.2 Use of Contract Types Not Herein Described

The provisions of Section 3-501 describe and define the principal contract types. Any other type of contract may be used provided the Agency Head and the PSCRB determine that such use is in the State’s best interest.

3- 501.04 Types of Fixed-Price Contracts

3- 501.04.1 General

A fixed-price contract places responsibility on the contractor for the performance of the service in accordance with the contract terms at a price that may be firm or may be subject to contractually specified adjustments. The fixed-price contract is appropriate for use when the extent and type of work necessary to meet requirements can be reasonably specified and the cost can be reasonably estimated. A fixed-price type of contract is the only type of contract that can be used in competitive sealed bidding.

Note: Fixed-price contracts are preferred for use in procurements and should be used whenever possible; however, when risks are unknown or not readily measurable in terms of costs, the use of such contracts can result in inflated prices and inadequate competition, poor performance, disputes, claims when performance proves difficult, or excessive profits when anticipated contingencies do not occur.

3- 501.04.2 Firm Fixed-Price Contract

A firm fixed-price contract provides a price that is not subject to adjustment because of variations in the contractor’s cost of performing the work specified in the contract. It should be used whenever prices which are fair and reasonable to the State can be established at the outset. Bases upon which firm fixed prices may be established include:

(a) adequate price competition for the contract;

(b) comparison of prices in similar prior procurements in which prices were fair and reasonable;

(c) establishment of realistic costs of performance by utilizing available cost or pricing data and identifying uncertainties in contract performance; or,

(d) use of other adequate means to establish a firm price.

3- 501.04.3 Fixed-Price Contract with Price Adjustment

(a) A fixed-price contract with price adjustment provides for variation in the contract price under special conditions defined in the contract. An adjustment would be implied in the authority for change orders as would be applicable to construction contracts.

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(b) If the contract permits unilateral action by the contractor to bring about the condition under which a price increase may occur, the contract shall reserve to the State the right to reject the price increase and terminate without cost the future performance of the contract. The contract shall also require that notice of any such price increase shall be given within such time prior to its effective date as is specified in the contract.

3- 501.05 Definite Quantity and Indefinite Quantity Contracts

3- 501.05.1 Definite Quantity

A definite quantity contract is a fixed-price contract that provides for delivery of a specified quantity of services either at specified times or when ordered.

3- 501.05.2 Indefinite Quantity

An indefinite quantity contract is a contract for an indefinite amount of services to be furnished at specified times, or as ordered, that establishes unit prices of a fixed-price type. Generally an approximate quantity or the best information available as to quantity is stated in the solicitation. The contract may provide a minimum quantity the State is obligated to procure and may also provide for a maximum quantity provision that limits the State’s obligation to procure.

3- 501.05.3 Requirements Contracts

A requirements contract is an indefinite quantity contract for services that obligates the State to order all the actual requirements of designated agencies during a specified period of time. The obligation to order the State’s actual requirements is limited only by provisions of Mississippi Code Annotated § 31-7- 12(1). For the protection of the State and the contractor, requirements contracts shall include the following:

(a) A provision which requires the State and any other users named in the solicitation to order their actual requirements of the services covered; however, the State may reserve in the solicitation and in the resulting contract the right to take bids separately if a particular quantity requirement arises which exceeds the State’s normal requirements or an amount specified in the contract.

(b) Two exemptions from ordering under the contract occur when:

(1) the Agency Head approves a finding that the supply or service available under the contract will not meet a nonrecurring, special need of the buying entity; and, (2) services are performed incidental to the State’s own programs, such as industries of correctional institutions that can satisfy the need.

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3- 502 MULTI-TERM CONTRACTS

(a) Specified Period

Unless otherwise provided by law, a contract for services may be entered into for a period of time not to exceed four (4) years with an option to renew for one year, provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds.

(b) Determination Prior to Use

Prior to the utilization of a multi-term contract, it shall be determined in writing by the agency and maintained in the procurement file:

(1) that estimated requirements cover the period of the contract and are reasonably firm and continuing; and,

(2) that such a contract will serve the best interests of the State of Mississippi by encouraging effective competition or otherwise promoting economies in state procurement.

3- 502.01 Multi-Term Contracts – General

A multi-term contract is appropriate when it is in the best interest of the State to obtain uninterrupted services extending over more than one fiscal period, where the performance of such services involves high start-up costs, or where a changeover of service contractors involves high phase-in/phase-out costs during a transition period.

Special production refers to production for contract performance which requires alteration of the contractor’s facilities or operations involving high start-up costs. The contractual obligation of both parties in each fiscal period succeeding the first is subject to the appropriation and availability of funds therefor. The contract shall provide that in the event that funds are not available for any succeeding fiscal period, the remainder of such contract shall be canceled.

3- 502.02 Conditions for Use of Multi-Term Contracts

A multi-term contract may be used when it is determined in writing by the Procurement Officer and maintained in the procurement file that:

(a) the furnishing of long-term services are required to meet needs of the State; and,

(b) a multi-term contract will serve the best interests of the State by encouraging effective competition or otherwise promoting economies in state procurement. The following factors are among those relevant to such a determination:

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(1) firms which are not willing or able to compete because of high start-up costs or capital are assured of recouping such costs during the period of contract performance;

(2) lower production costs because of larger quantity or service requirements and substantial continuity of production or performance over a longer period of time can be expected to result in lower unit prices;

(3) stabilization of the contractor’s work force over a longer period of time may promote economy and consistent quality; or,

(4) the cost and burden of contract solicitation, award, and administration of the procurement may be reduced.

3- 502.03 Multi-Term Contract Procedure

3- 502.03.1 Solicitation

The solicitation shall state:

(a) the amount of services required for the proposed contract period;

(b) that a unit price shall be given for each service, and that such unit prices shall be the same throughout the contract;

(c) that the multi-term contract will be canceled if funds are not appropriated or otherwise made available to support the continuation of performance in any fiscal period succeeding the first; however, this does not affect either the State’s right or the contractor’s rights under any termination clause in the contract;

(d) that the Procurement Officer must notify the contractor on a timely basis that the funds are or are not available for the continuation of the contract for each succeeding fiscal period; and,

(e) that a multi-term contract may be awarded and how award will be determined.

3- 502.03.2 Award

Award shall be made as stated in the solicitation and permitted under the source selection method utilized.

3- 502.03.3 Cancellation

(a) “Cancellation,” as used in multi-term contracting, means the cancellation of the total requirements for the remaining portion of the contract because funds were not appropriated or otherwise made available. The contract for the fiscal period shall not be canceled. Cancellation results when the Procurement Officer:

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(1) notifies the contractor of non-availability of funds for contract performance for any fiscal period subsequent to the first; or,

(2) exercises a cancellation provision of the original contract.

(b) These provisions on cancellation of multi-term contracts do not limit the rights of the State or the contractor under any termination clause of the contract if the contract is terminated pursuant to that clause rather than canceled as provided in this subsection. If a contract is canceled for lack of funding, all obligations due the contractor for the period during which funding was available shall be paid. Cancellation for reasons of non- availability of funding relieves the purchaser of all contractual obligations for any contract period subsequent to the date of cancellation. No contract shall be canceled for lack of funds during a fiscal year period when funds were allocated for such contract.

3- 502.03.4 Contract Clause

The following clause, or one substantially similar, shall be used by the Purchasing Agency in multi- term contractual agreements:

Availability of Funds

It is expressly understood and agreed that the obligation of the [agency] to proceed under this agreement is conditioned upon the appropriation of funds by the Mississippi State Legislature and the receipt of state and/or federal funds. If the funds anticipated for the continuing fulfillment of the agreement are, at any time, not forthcoming or insufficient, either through the failure of the federal government to provide funds or of the State of Mississippi to appropriate funds or the discontinuance or material alteration of the program under which funds were provided or if funds are not otherwise available to the State, the [agency] shall have the right upon ten (10) working days written notice to the contractor, to terminate this agreement without damage, penalty, cost or expenses to the State of any kind whatsoever. The effective date of termination shall be as specified in the notice of termination.

Note: Multi-term contracts, as set forth in this section, should be interpreted to mean a contract having effective dates spanning appropriation periods two or more fiscal years and would obligate the agency to purchase a specified quantity of services over that period.

3- 503 MULTIPLE SOURCE CONTRACTING

3- 503.01 Incremental Award

3- 503.01.1 General

An incremental award is an award of portions of a definite quantity requirement to more than one contractor. Each portion is for a definite quantity and the sum of the portions is the total

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definite quantity required. An incremental award may be used only when awards to more than one bidder, offeror, or respondent for different amounts of the same item are necessary to obtain the total quantity or the required delivery.

3- 503.01.2 Intent to Use

If an incremental award is anticipated prior to issuing a solicitation, the State shall reserve the right to make such an award and the criteria for award shall be stated in the solicitation.

3- 503.01.3 Determination Required

The Procurement Officer shall make a written determination setting forth the reasons for the incremental award, which shall be made a part of the agency’s procurement file.

3- 503.02 Multiple Award

3- 503.02.1 General

A multiple award is an award of an indefinite quantity contract for services to more than one bidder, offeror, or respondent when the State is obligated to order all of its actual requirements for the specified services from those contractors. The obligation to order the State’s actual requirements is limited by Mississippi Code Annotated § 75-2- 306.

3- 503.02.2 Limitations on Use

A multiple award may be made when an award to two or more bidders, offerors, or respondents for similar services is necessary for adequate delivery. Any multiple awards shall be made in accordance with the provisions of Section 3-202 (Competitive Sealed Bids), 3- 203 (Competitive Sealed Proposals), Section 3-204 (Competitive Sealed Qualifications), Section 3-205 (Small Purchases), and Section 3-207 (Emergency Procurement), as applicable. Multiple awards shall not be made when a single award will meet the State’s needs without sacrifice of economy or service. Awards shall not be made for the purpose of dividing the business, making available product or supplier selection to allow for user preference unrelated to utility or economy, or avoiding the resolution of tie bids. Any such awards shall be limited to the least number of contractors necessary to meet the valid requirements of using agencies.

3- 503.02.3 Contract and Solicitation Provisions

All eligible users of the contract shall be named in the solicitation, and it shall be mandatory that the actual requirements of such users that can be met under the contract be obtained in accordance with the contract, provided, that:

(a) the State shall reserve the right to take bids separately if a particular quantity requirement arises which exceeds its normal requirement or an amount specified in the contract;

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(b) the State shall reserve the right to take bids separately if the Agency Head approves a finding that the supply or service available under the contract will not meet a nonrecurring special need of the agency; and,

(c) the contract may allow the State to procure services performed, incidental to the State’s own programs, such as industries of correctional institutions, when such services satisfy the need.

3- 503.02.4 Intent of Use

If a multiple award is anticipated prior to issuing a solicitation, the State shall reserve the right to make such an award, and the criteria for award shall be stated in the solicitation.

3- 503.02.5 Determination Required

The Procurement Officer shall make a written determination setting forth the reasons for a multiple award, which shall be made a part of the agency’s procurement file.

Note: Within these regulations, contract arrangements which establish more than one source of service are either multiple or progressive award contracts. Competitive sealed bidding is the conventional procurement method for establishing such contracts, although competitive sealed proposals, competitive sealed qualifications, small purchase procedures, and emergency procurements may be used if allowed in accordance with Section 3-201.01 (Petition for Relief from Competitive Bidding).

3- 601 RIGHT TO INSPECT FACILITY

The State may, at reasonable times, inspect the place of business of a contractor or any subcontractor which is related to the performance of any contract awarded or to be awarded by the State.

3- 601.01 Inspection of Facility or Site

Circumstances under which the State may perform inspections include, but are not limited to, inspections of contractor’s site in order to determine:

(a) whether the standards set forth in Section 3-401.03 (Standards of Responsibility) have been met or are capable of being met; and,

(b) if the contract is being performed in accordance with its terms.

3- 601.02 Access to Place of Business

The State may enter a contractor’s or subcontractor’s place of business to:

(a) inspect services for acceptance by the State pursuant to the terms of a contract;

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(b) audit cost or pricing data or audit the books and records of any contractor or subcontractor pursuant to Section 3-602 (Right to Audit Records) of these Regulations; and,

(c) investigate in connection with an action to debar or suspend a person from consideration for award of contracts pursuant to Section 5-101 (Debarment or Suspension).

3- 601.03 Inspection and Testing of Services

3- 601.03.1 Solicitation and Contractual Provisions

Mississippi contracts may provide that the State may inspect services at the contractor’s or subcontractor’s facility and perform the tests to determine whether they conform to solicitation requirements or, after award, to contract requirements and are, therefore, acceptable. Such inspections and tests shall be conducted in accordance with the terms of the solicitation and contract.

3- 601.04 Conduct of Inspections

3- 601.04.1 Inspectors

Inspections or tests shall be performed so as not to unduly delay the work of the contractor or subcontractor. The presence or absence of an inspector shall not relieve the contractor or subcontractor from any requirements of the contract.

3- 601.04.2 Location

When an inspection is made in the place of business of a contractor or subcontractor, such contractor or subcontractor shall provide without charge all reasonable facilities and assistance for the safety and convenience of the person performing the inspection or testing.

3- 601.04.3 Time

Inspection or testing of services performed at the place of business of any contractor or subcontractor shall be performed at reasonable times.

3- 602 RIGHT TO AUDIT RECORDS

(a) Audit of Competitive Procedures

The PSCRB may, at reasonable times and places, audit the procurement records of any agency to ensure it has used competitive procedures to contract for the personal or professional service.

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(b) Audit of Cost or Pricing Data

The State may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data pursuant to Section 3-403 (Cost or Pricing Data) to the extent that such books and records relate to such cost or pricing data. Any person who receives a contract, change order, or contract modification for which cost or pricing data is required, shall maintain such books and records that relate to such cost or pricing data for three years from the date of final payment under the contract, unless a shorter period is otherwise authorized in writing.

(c) Contract Audit

The State shall be entitled to audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract to the extent that such books and records related to the performance of such contract or subcontract. Such books and records shall be maintained by the contractor for a period of three years from the date of final payment under the prime contract and by subcontractor for a period of three years from the date of final payment under the subcontract, unless a shorter period is otherwise authorized in writing.

3- 602.01 Statutory Authority to Audit

Pursuant to Mississippi Code Annotated § 25-9- 120, the PSCRB may request the State Auditor to conduct performance audit on any personal or professional service contract.

3- 602.02 Auditors; Audit Reports

Audits requested under this subpart shall be performed by the State Auditor’s Office. Such audit reports shall be made available to the party audited upon request.

3- 602.03 Cost or Pricing Data Audit

3- 602.03.1 General

The PSCRB may require an audit of cost or pricing data that has been submitted under Section 3-403 (Cost or Pricing Data).

3- 602.03.2 Conditions for an Audit

An audit should be required, in respect to the contractor, prospective contractor, subcontractor, or prospective subcontractor, when there is:

(a) a question as to the adequacy of accounting policies or cost systems;

(b) a substantial change in the methods or levels of operation;

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(c) previous unfavorable experience indicating doubtful reliability of estimating, accounting, or purchasing methods;

(d) a lack of cost experience due to the procurement of a new supply or service; or,

(e) other evidence that an audit is in the State’s best interests as determined by the PSCRB.

Note: Subject to final determination by the State Auditor, the report should contain the following in respect to the contractor, prospective contractor, subcontractor, or prospective subcontractor:

(a) a description of the original proposal and all submissions of cost or pricing data;

(b) an explanation of the basis and the method used in preparing the proposal;

(c) a statement identifying any cost or pricing data not submitted but examined by the auditor which has a significant effect on the proposed cost or price;

(d) a description of any deficiency in the cost or pricing data submitted and an explanation of its effect on the proposal;

(e) a statement summarizing those major points where there is a disagreement as to the cost or pricing data submitted; and

(f) a statement identifying any information obtained from other sources.

3- 602.04 Contract Audit

3- 602.04.1 Contract Audited

Under the authority of Mississippi Code Annotated § 25-9- 120, any contract for personal or professional services may be audited when auditing would be appropriate to assure satisfactory performance.

3- 602.04.2 Conditions for an Audit

The requirement of a contract audit may be warranted when a question arises in connection with:

(a) the financial condition, integrity, and reliability of the contractor or subcontractor;

(b) any prior audit experience;

(c) the adequacy of the contractor’s or subcontractor’s accounting system;

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(d) the number or nature of invoices or reimbursement vouchers submitted by the contractor or subcontractor for payment;

(e) the use of federal assistance funds;

(f) the fluctuation of market prices affecting the contract;

(g) contract performance or measurement of deliverables; or,

(h) any other situation in which the PSCRB finds that such an audit is necessary for the protection of the State’s interest, including random audits to ensure compliance with these regulations.

The scope of the audit may be limited by the PSCRB.

Note: The scope of the report will depend on the scope of the audit ordered; however, the report should contain specific reference to the terms of the contract to which the audited data related and a statement of the degree to which the auditor believes the audited data evidences compliance with those terms.

3- 602.05 Retention of Books and Records

3- 602.05.1 Relating to Cost and Pricing Data

Any contractor who receives a contract, change order, or contract modification for which cost or pricing data is required under Section 3-403 (Cost or Pricing Data) shall maintain such books and records that relate to such cost or pricing data for three years from the date of final payment under the contract.

3- 602.05.2 Relating to State Contracts

Books and records that relate to a state contract, including subcontracts, other than a firm fixed-price contract, shall be maintained:

(a) by a contractor, for three years from the date of final payment under the prime contract; and,

(b) by a subcontractor, for three years from the date of final payment under the subcontract.

3- 701 FINALITY OF DETERMINATIONS

The determinations required by the following sections are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law:

(a) Section 3-202.01(f) (Competitive Sealed Bidding – Correction or Withdrawal of Bids; Cancellation of Awards);

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(b) Section 3-203.01(a) (Competitive Sealed Proposals – Conditions for Use);

(c) Section 3-203.01(g) (Competitive Sealed Proposals – Award);

(d) Section 3-204 (Competitive Sealed Qualifications);

(e) Section 3-206 (Sole-Source Procurement);

(f) Section 3-207 (Emergency Procurement);

(g) Section 3-401(a) (Responsibility of Bidders, Offerors, and Respondents, – Determination of Non-responsibility);

(h) Section 3-403.01(c) (Cost or Pricing Data – Cost or Pricing Data Not Required);

(i) Section 3-501 (Types of Contracts); and

(j) Section 3-502 (Multi-Source Contracting).

3- 702 REPORTING OF ANTI-COMPETITIVE PRACTICES

When, for any reason collusion or other anti-competitive practices are suspected among any bidders, offerors, or respondents, a notice of the relevant facts shall be transmitted to the Attorney General.

3- 702.01 Anti-Competitive Practices

For the purposes of this section, an anti-competitive practice is a practice among bidders, offerors, or respondents which reduces or eliminates competition or restrains trade. An anti- competitive practice can result from an agreement or understanding among competitors to restrain trade such as submitting collusive bids, proposals, or statements of qualifications or result from illicit business actions which have the effect of restraining trade, such as controlling the resale price of products or an improper collective refusal to bid. Indications of suspected anti-competitive practices include, but are not limited to, identical bids, proposals, or statements of qualifications, rotated low bids or proposals, sharing of the business, “tie-in” sales, resale price maintenance, and group boycotts.

Note: Bidders, offerors, or respondents are prohibited by federal and Mississippi law from collectively responding to a solicitation in a manner that controls directly or indirectly the price of a supply, service, or construction item sought. Mississippi Code Annotated § 75-21-15. This prohibition may extend to such actions establishing any of the following: minimum or maximum prices; uniform list prices; uniform credit terms; uniform discounts; uniform costs and mark-ups; uniform trade-in allowances; specified price differentials between varying grades of the same product, price ranges, price scales or price calculation formulas; and, minimum fee schedules.

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3- 702.02 Independent Price Determination

Every solicitation shall provide that by submitting a bid, offer, or SOQs, the bidder, offeror, or respondent certifies that the price submitted was independently arrived at without collusion. The agency may require the signing of a separate form which certifies that the price in the bid or offer was arrived at independently.

3- 702.03 Detection of Anti-Competitive Practices

In order to assist in ascertaining whether or not an anti-competitive practice may have occurred or may be occurring, the Procurement Officer should be alert and sensitive to conditions of the market place and will often find it necessary to study past procurements including, as appropriate, the following:

(a) a study of the bidding history of a commodity or service over a period of time sufficient to determine any significant bidding patterns or changes;

(b) a review of similar Mississippi contract awards over a period of time; and,

(c) consultation with outside sources of information, such as bidders, offerors, or respondents who have competed for similar Mississippi businesses in the past but who are no longer competing for such business.

3- 702.04 Identical Bidding and Price Fixing

The term “identical bidding” means the submission by bidders, offerors, or respondents of the same total price or the same price on a particular line item. The submission of identical bids may or may not signify the existence of collusion.

In seeking to determine whether collusion has taken place, the Procurement Officer should view the identical bids against present and past pricing policies of the bidders, offerors, or respondents, the structure of the industry involved including comparisons of price, and the nature of the service.

3- 702.05 Other Anti-Competitive Practices

3- 702.05.1 General

The practices which are described in Subsection 3-702.05.2 through Section 3-702.05.5 and which the Procurement Officer suspects might be anti-competitive shall be reported to the PSCRB.

3- 702.05.2 Rotated Low Bids or Proposals

Rotated low bids or proposals result where all bidders, offerors, or respondents participating in the collusive scheme submit bids and by agreement alternate being the lowest bidder,

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offeror, or respondent. To aid in determining whether rotation may be occurring, the Procurement Officer must review past similar procurements in which the same bidders, offerors, or respondents have participated.

3- 702.05.3 Sharing of the Business

Sharing of the business occurs where potential bidders, offerors, or respondents allocate business among themselves based on the customers or territory involved. Thus, a Procurement Officer might discover that a potential bidder, offeror, or respondent is not participating in a Mississippi procurement because a particular Mississippi agency or a particular territory has not been allocated to such bidder, offeror, or respondent.

3- 702.05.4 “Tie-in” sales

“Tie-in” sales are those in which a bidder, offeror, or respondent attempts to sell one supply or service only upon the condition that the Procurement Officer purchase another particular supply or service.

3- 702.05.5 Group Boycott

A group boycott results from an agreement between competitors not to deal with another competitor or not to participate in, for instance, a Mississippi procurement until the boycotting competitors’ conditions are met by the boycotted competitor or the State. The boycott of a competitor by other competitors may have an effect on the market structure or price of a service needed by the State.

Note: Protecting the principles of competition in public procurement is a difficult and often complex task. A program of communication and cooperation between procurement and legal offices, institutionalized to the extent feasible, is essential in combating anti-competitive practices.

3- 703 RETENTION OF PROCUREMENT RECORDS

All procurement records shall be retained and disposed of in accordance with records retention guidelines and schedules by the Department of Archives and History.

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CHAPTER 4 – CONTRACT ADMINISTRATION

4- 101 MODIFICATION AND TERMINATION OF CONTRACTS FOR SERVICES

The following contract clauses should be used as required by the Personal Service Contract Review Board Rules and Regulations and at the discretion of the Agency Head. In addition to these clauses, see Appendices C (Required Clauses in Contract for Services), D (Required Clauses in IFBs, RFPs, and RFQs), E (Clauses Available for Use in Service Contracts), and F (Clauses Available for Use in Solicitations for Bids, Proposals, or Statements of Qualifications) for other clauses.

4- 101.01 Stop Work Order Clause: Use of clause

The clause set forth in Subsection 4-101.01.2 of this section is authorized for use in any fixed- price contract under which work stoppage may be required for reasons such as advancements in the state of the art, production modifications, engineering changes, or realignment of programs.

4- 101.01.1 Use of Orders

(a) Because stop work orders may result in increased costs by reason of standby costs, such orders shall be issued only with prior approval of the Agency Head. Generally, use of a stop work order will be limited to situations in which it is advisable to suspend work pending a decision to proceed by the State, and a supplemental agreement providing for such suspension is not feasible. A stop work order may not be used in lieu of the issuance of a termination notice after a decision to terminate has been made.

(b) Stop work orders shall not exceed 90 consecutive days and shall include, as appropriate:

(1) a clear description of the work to be suspended;

(2) instructions as to the issuance of further orders by the contractor for material or services;

(3) guidance as to action to be taken on subcontracts; and,

(4) other instructions and suggestions to the contractor for minimizing costs.

Promptly after issuance, stop work orders shall be discussed with the contractor and should be modified, if necessary, in the light of such discussions.

(c) As soon as feasible after a stop work order is issued:

(1) the contract will be terminated; or,

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(2) the stop work order will be canceled or extended in writing beyond the period specified in the order.

In any event, action must be taken before the specified stop work period expires. If an extension of the stop work order is necessary, it must be evidenced by a supplemental agreement. Any cancellation of a stop work order shall be subject to the same Agency Head approval as was required for the issuance of the order.

4- 101.01.2 Stop Work Order Clause (Required)

STOP WORK ORDER

(1) Order to Stop Work. The Procurement Officer of the [State], may, by written order to the contractor at any time, and without notice to any surety, require the contractor to stop all or any part of the work called for by this contract. This order shall be for a specified period not exceeding 90 days after the order is delivered to the contractor, unless the parties agree to any further period. Any such order shall be identified specifically as a stop work order issued pursuant to this clause. Upon receipt of such an order, the contractor shall forthwith comply with its terms and take all reasonable steps to minimize the occurrence of costs allocable to the work covered by the order during the period of work stoppage. Before the stop work order expires, or within any further period to which the parties shall have agreed, the Procurement Officer shall either:

a. cancel the stop work order; or,

b. terminate the work covered by such order as provided in the Termination for Default clause or the Termination for Convenience clause of this contract.

(2) Cancellation or Expiration of the Order. If a stop work order issued under this clause is canceled at any time during the period specified in the order, or if the period of the order or any extension thereof expires, the contractor shall have the right to resume work. An appropriate adjustment shall be made in the delivery schedule or contractor price, or both, and the contract shall be modified in writing accordingly, if:

a. the stop work order results in an increase in the time required for the performance of any part of this contract; or,

b. the stop work order results in an increase in the contractor’s cost properly allocable to the performance of any part of this contract; and,

c. the contractor asserts a claim for such an adjustment within 30 days after the end of the period of work stoppage; provided that, if the Procurement Officer decides that the facts justify such action, any such claim asserted may be received and acted upon at any time prior to final payment under this contract.

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(3) Termination of Stopped Work. If a stop work order is not canceled and the work covered by such order is terminated for default or convenience, the reasonable costs resulting from the stop work order shall be allowed by adjustment or otherwise.

(4) Adjustments of Price. Any adjustment in contract price made pursuant to this clause shall be determined in accordance with the Price Adjustment clause of this contract.

4- 101.02 Variations in Estimated Quantities Clause (form) (Optional)

4- 101.02.1 Definite Quantity Contracts

The following clause is authorized for use in definite quantity service contracts:

VARIATION IN QUANTITY

Upon the agreement of the parties, the quantity of services specified in this contract may be increased by a maximum of ten percent provided:

(1) the unit prices will remain the same (except for any price adjustments otherwise applicable); and,

(2) the Procurement Officer makes a written determination that such an increase will either be more economical than awarding another contract or that it would not be practical to award another contract.

4- 101.02.2 Indefinite Quantity Contracts

Indefinite quantity contracts require flexibility as to the State’s obligation to order and the contractor’s obligation to deliver. The agreement should be designed to meet the agency’s needs while making the contract as attractive as possible to potential contractors, thereby attempting to obtain maximum practicable competition in order to assure the best economy for the State of Mississippi. Because of the need for flexibility, no clause is provided herein; however, in each case, the contract should state:

(a) the minimum quantity, if any, the State is obligated to order and the contractor to provide;

(b) whether there is a quantity the State expects to order and how this quantity relates to any minimum and maximum quantities that may be ordered under this contract;

(c) any maximum quantity the State may order and the contractor must provide; and,

(d) whether the State is obligated to order its actual requirements under the contract, or in the case of a multiple award as defined in Section 3-503 (Multiple Sourcing Contracting), that the State will order its actual requirements from the contractors under the multiple award subject to any minimum or maximum quantity stated.

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4- 101.03 Price Adjustment Clause (Optional)

PRICE ADJUSTMENT

(1) Price Adjustment Methods. Any adjustment in contract price pursuant to a clause in this contract shall be made in one or more of the following ways:

(a) by agreement on a fixed price adjustment before commencement of the additional performance;

(b) by unit prices specified in the contract;

(c) by the costs attributable to the event or situation covered by the clause, plus appropriate profit or fee, all as specified in the contract; or,

(d) by a price escalation clause.

(2) Submission of Cost or Pricing Data. The contractor shall provide cost or pricing data for any price adjustments subject to the provisions of Section 3-403 (Cost or Pricing Data) of the Mississippi Personal Service Contract Review Board Rules and Regulations.

4- 101.04 Claims Based on a Procurement Officer’s Actions or Omissions Clause (Optional)

CLAIMS BASED ON PROCUREMENT OFFICER’S ACTIONS OR OMISSIONS

(1) Notice of Claim. If any action or omission on the part of a Procurement Officer or designee of such officer requiring performance changes within the scope of the contract constitutes the basis of a claim by the contractor for additional compensation, damages, or an extension of time for completion, the contractor shall continue with performance of the contract in compliance with the directions or orders of such officials, but by so doing, the contractor shall not be deemed to have prejudiced any claim for additional compensation, damages, or an extension of time for completion, provided:

(a) the contractor shall have given written notice to the Procurement Officer or designee of such officer:

(i.) prior to the commencement of the work involved, if at that time the contractor knows of the occurrence of such action or omission;

(ii.) within 30 days after the contractor knows of the occurrence of such action or omission, if the contractor did not have such knowledge prior to the commencement of the work; or,

(iii.) within such further time as may be allowed by the Procurement Officer in writing.

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(This notice shall state that the contractor regards the act or omission as a reason which may entitle the contractor to additional compensation, damages, or an extension of time. The Procurement Officer or designee of such officer, upon receipt of such notice, may rescind such action, remedy such omission, or take such other steps as may be deemed advisable in the discretion of the Procurement Officer or designee of such officer.)

(b) the notice required by Subparagraph (a) of this Paragraph describes as clearly as practicable at the time the reasons why the contractor believes that additional compensation, damages, or an extension of time may be remedies to which the contractor is entitled; and,

(c) the contractor maintains and, upon request, makes available to the Procurement Officer within a reasonable time, detailed records to the extent practicable, of the claimed additional costs or basis for an extension of time in connection with such changes.

(2) Limitation of Clause. Nothing herein contained shall excuse the contractor from compliance with any rules or law precluding any state officers and any contractors from acting in collusion or bad faith in issuing or performing change orders which are clearly not within the scope of the contract.

(3) Adjustment of Price. Any adjustment in the contract price made pursuant to this clause shall be determined in accordance with the Price Adjustment clause of this contract.

4- 101.05 Termination for Default Clause ( Required)

TERMINATION FOR DEFAULT

(1) Default. If the contractor refuses or fails to perform any provisions of this contract with such diligence as will ensure its completion within the time specified in this contract, or any extension thereof, or otherwise fails to timely satisfy the contract provisions, or commits any other substantial breach of this contract, the Procurement Officer of the [State] may notify the contractor in writing of the delay or nonperformance and if not cured in ten (10) days or any longer time specified in writing by the Procurement Officer, such officer may terminate the contractor’s right to proceed with the contract or such part of the contract as to which there has been delay or a failure to properly perform. In the event of termination in whole or in part, the Procurement Officer may procure similar services in a manner and upon terms deemed appropriate by the Procurement Officer. The contractor shall continue performance of the contract to the extent it is not terminated and shall be liable for excess costs incurred in procuring similar goods or services.

(2) Contractor’s Duties. Notwithstanding termination of the contract and subject to any directions from the Procurement Officer, the contractor shall take timely, reasonable, and necessary action to protect and preserve property in the possession of the contractor in which the State has an interest.

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(3) Compensation. Payment for completed services delivered and accepted by the [State] shall be at the contract price. The [State] may withhold from amounts due the contractor such sums as the Procurement Officer deems to be necessary to protect the [State] against loss because of outstanding liens or claims of former lien holders and to reimburse the [State] for the excess costs incurred in procuring similar goods and services.

(4) Excuse for Nonperformance or Delayed Performance. Except with respect to defaults of subcontractors, the contractor shall not be in default by reason of any failure in performance of this contract in accordance with its terms (including any failure by the contractor to make progress in the prosecution of the work hereunder which endangers such performance) if the contractor has notified the Procurement Officer within 15 days after the cause of the delay and the failure arises out of causes such as: acts of God; acts of the public enemy; acts of the State and any other governmental entity in its sovereign or contractual capacity; fires; floods; epidemics; quarantine restrictions; strikes or other labor disputes; freight embargoes; or unusually severe weather. If the failure to perform is caused by the failure of a subcontractor to perform or to make progress, and if such failure arises out of causes similar to those set forth above, the contractor shall not be deemed to be in default, unless the services to be furnished by the subcontractor were reasonably obtainable from other sources in sufficient time to permit the contractor to meet the contract requirements.

Upon request of the contractor, the Procurement Officer of the [State] shall ascertain the facts and extent of such failure, and, if such officer determines that any failure to perform was occasioned by any one or more of the excusable causes, and that, but for the excusable cause, the contractor’s progress and performance would have met the terms of the contract, the delivery schedule shall be revised accordingly, subject to the rights of the [State] under the clause entitled (in fixed-price contracts, “Termination for Convenience,” or in cost-reimbursement contracts, “Termination”). (As used in this Paragraph of this clause, the term “subcontractor” means subcontractor at any tier).

(5) Erroneous Termination for Default. If, after notice of termination of the contractor’s right to proceed under the provisions of this clause, it is determined for any reason that the contract was not in default under the provisions of this clause, or that the delay was excusable under the provisions of Paragraph (4) of this clause, the rights and obligations of the parties shall, if the contract contains a clause providing for termination for convenience of the [State], be the same as if the notice of termination has been issued pursuant to such clause.

(6) Additional Rights and Remedies. The rights and remedies provided in this clause are in addition to any other rights and remedies provided by law or under this contract.

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4- 101.06 Liquidated Damages Clause (Optional)

4- 101.06.1 With Termination for Default Clause

The following clause is authorized for use in service contracts when it is difficult to determine with reasonable accuracy the amount of damage to the State due to delays caused by late contractor performance or nonperformance and the contract contains the Termination for Default Clause set forth in Section 4-101.05.

LIQUIDATED DAMAGES

(1) When the contractor is given notice of delay or nonperformance as specified in Paragraph [(1) (Default)] of the Termination for Default clause of this contract and fails to cure in the time specified, the contractor shall be liable for damages for delay in the amount of $______ per calendar day from date set for cure until either the [State] reasonably obtains similar services if the contractor is terminated for default, or until the contractor provides the services if the contractor is not terminated for default. To the extent that the contractor’s delay or nonperformance is excused under Paragraph (4) (Excuse for Nonperformance or Delayed Performance) of the Termination for Default clause of this contract, liquidated damages shall not be due the State. The contractor remains liable for damages caused other than by delay.

4- 101.06.2 In Other Situations

If the contract will not have a Termination for Default clause or the liquidated damages are to be assessed for reasons other than delay, the Agency Head may approve the use of any appropriate liquidated damages clause.

4- 101.07 Termination for Convenience Clause (Required)

TERMINATION FOR CONVENIENCE

(1) Termination. The Procurement Officer of the [State] may, when the interests of the [State] so require, terminate this contract in whole or in part, for the convenience of the [State]. The Procurement Officer shall give written notice of the termination to the contractor specifying the part of the contract terminated and when termination becomes effective.

(2) Contractor’s Obligations. The contractor shall incur no further obligations in connection with the terminated work and on the date set in the notice of termination the contractor will stop work to the extent specified. The contractor shall also terminate outstanding orders and subcontracts as they relate to the terminated work. The contractor shall settle the liabilities and claims arising out of the termination of subcontracts and orders connected with the terminated work. The Procurement Officer may direct the contractor to assign the contractor’s right, title, and interest under the terminated orders or subcontracts to the State. The contractor must still complete the work not terminated by the notice of termination and may incur obligations as are necessary to do so.

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4- 102 MONITORING CONTRACT PERFORMANCE

The Agency Head shall ensure that contracts are monitored at least monthly to confirm acceptable performance, timely fulfillment of deliverables and compliance with terms of the agreement.

4- 102.01 Duties of the Procurement Officer shall include, but are not limited to the following:

(a) reviews and approves contract deliverables;

(b) ensures compliance with contractual terms;

(c) coordinates the flow of information between the parties;

(d) responds to requests of the contractor;

(e) monitors disbursements against the contract budget;

(f) monitors actual progress against work schedules;

(g) coordinates the furnishing of necessary materials;

(h) authorizes no cost modifications; and,

(i) makes recommendations on modifications involving increased cost.

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CHAPTER 5 – LEGAL AND CONTRACTUAL REMEDIES

5- 101 DEBARMENT OR SUSPENSION

(a) Authority. With reasonable notice to the person involved and reasonable opportunity for that person to be heard, the PSCRB, after consultation with the using agency and the Special Assistant Attorney General assigned to MSPB, shall have authority to debar a person for cause from consideration for award of contracts. The debarment shall be for a period of two (2) years. The PSCRB, after consultation with the using agency (the agency that has used the services supplied by the contractor) and the Special Assistant Attorney General, shall have authority to suspend a person from consideration for award of contracts if there is probable cause for debarment. The suspension shall not be for a period exceeding three (3) months.

(b) Agency Requests for Debarment or Suspension. Using agencies must submit a Vendor Quality Report to the PSCRB to request the debarment or suspension of a contractor or potential contractor.

(c) Causes for Debarment or Suspension. The causes for debarment or suspension include the following:

(1) conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract;

(2) conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a Mississippi contractor;

(3) conviction under state or federal antitrust statutes arising out of the submission of bids, proposals, or statements of qualifications;

(4) violation of contract provisions, as set forth below, of a character which is regarded by the PSCRB to be so serious as to justify debarment action; including,

i. deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract or,

ii. a recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts; provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor shall not be considered to be a basis for debarment;

(5) any other cause the PSCRB determines to be so serious and compelling as to affect responsibility as a Mississippi contractor, including debarment by another governmental entity for any cause listed herein; and,

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(6) for violation of the ethical standards set forth in Chapter 6 (Ethics in Contracting for Personal and Professional Services).

(d) Decision. The PSCRB shall issue a written decision to debar or suspend. The decision shall:

(1) state the reason(s) for the action(s) taken; and,

(2) inform the debarred or suspended person involved of their right to administrative review as provided in this chapter.

(e) Notice of Decision. A copy of the decision under subsection (c) of this section shall be mailed or otherwise furnished immediately to the debarred or suspended person and any other party intervening.

(f) Finality of Decision. A decision shall be final and conclusive, unless fraudulent, or the debarred or suspended person commences an action in court.

5- 101.01 Application

This regulatory provision applies to all debarments or suspensions of persons from consideration for award of contracts imposed by the PSCRB.

5- 101.02 Suspension

5- 101.02.1 Initiation

After consultation with the affected using agency, the Special Assistant Attorney General, and, where practicable, the contractor or prospective contractor who is to be suspended, the PSCRB shall make a written determination as to whether probable cause exists for debarment as set forth in Section 5-101 (Debarment or Suspension). If probable cause is found, a contractor or prospective contractor shall be suspended. A notice of suspension, including a copy of such determination, shall be sent to the suspended contractor or prospective contractor. Such notice shall state that:

(a) the suspension is for the period it takes to complete an investigation into possible debarment including any appeals of a debarment decision, but not for a period in excess of three (3) months;

(b) bids or proposals will not be solicited from the suspended person, and if they are received they will not be considered during the period of suspension; and,

(c) if a hearing has not been held, the suspended person may request a hearing in accordance with Section 5-101.04 (Request for Hearing).

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5- 101.02.2 Effect of Decision

A contractor or prospective contractor is suspended upon issuance of the notice of suspension. The suspension shall remain in effect during any appeals. The suspension may be ended by the PSCRB but otherwise shall only be ended when the suspension has been in effect for three (3) months or a debarment decision takes effect.

5- 101.03 Initiation of Debarment Action

Written notice of the proposed debarment action shall be sent by certified mail, return receipt requested, to the contractor or prospective contractor. This notice shall:

(a) state that debarment is being considered;

(b) set forth the reasons for the action;

(c) state that if the contractor or prospective contractor so requests, a hearing will be held, provided such request is received by the PSCRB within ten (10) days after the contractor or prospective contractor receives notice of the proposed action; and,

(d) state that the contractor or prospective contractor may be represented by counsel. Such notice shall also be sent to the MSPB Special Assistant Attorney General and the affected using agency.

5- 101.04 Request for Hearing

A contractor or prospective contractor that has been notified of a proposed debarment or suspension action may request in writing that a hearing be held. Such request must be received by the PSCRB within ten (10) days of receipt of notice of the proposed action under Section 5- 101.03 (Initiation of Debarment Action). If no request is received within the ten-day period, a final determination may be made as set forth in Section 5-101.08 (Determination of Hearing Officer – Final Decision) after consulting with the MSPB Special Assistant Attorney General and the using agency.

5- 101.05 Notice of Hearing

If a hearing is requested, the PSCRB may appoint a hearing officer to conduct the hearing and recommend a final decision. The hearing officer shall send a written notice of the time and place of the hearing. Such notice shall be sent by certified mail, return receipt requested, and shall state the nature and purpose of the proceedings. Copies shall be sent to the MSPB Special Assistant Attorney General, the using agency, and the contractor or prospective contractor.

5- 101.06 Authority of Hearing Officer

The hearing officer, in the conduct of the hearing, may:

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(a) hold informal conferences to settle, simplify, or fix the issues in a proceeding, or to consider other matters that may aid in the expeditious disposition of the proceeding either by consent of the parties or upon such officer’s own motion;

(b) require parties to state their positions with respect to the various issues in the proceeding;

(c) require parties to produce for examination those relevant witnesses and documents under their control;

(d) rule on motions, and other procedural items on matters pending before such officer;

(e) regulate the course of the hearing and conduct of participants therein;

(f) receive, rule on, exclude, or limit evidence, and limit lines of questioning or testimony which are irrelevant, immaterial, or unduly repetitious;

(g) fix time limits for submission of written documents in matters before such officer;

(h) impose appropriate sanctions against any party or person failing to obey an order under those procedures, which sanctions may include:

(1) refusing to allow the disobedient party to support or oppose designated claims or defenses, or prohibiting that party from introducing designated matters in evidence;

(2) excluding all testimony of an unresponsive or evasive witness; and,

(3) expelling any party or person from further participation in the hearing;

(i) take official notice of any material fact not appearing in evidence in the record, if such fact is among the traditional matters of judicial notice; and,

(j) take such other action which is in the best interest of the State, consistent with due process and in the interest of justice.

5- 101.07 Hearing Procedures

(a) Hearings shall be as informal as may be reasonable and appropriate under the circumstances and in accordance with applicable due process requirements. The weight to be attached to evidence presented in any particular form will be within the discretion of the hearing officer. Stipulations of fact agreed upon by the parties may be regarded and used as evidence at the hearing. The parties may stipulate the testimony that would be given by a witness if the witness were present. The hearing officer may require evidence in addition to that offered by the parties.

(b) A hearing may be recorded but need not be transcribed except at the request and expense of the contractor or prospective contractor. A record of those present, identification of any

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written evidence presented, and copies of all written statements and a summary of the hearing shall be sufficient record.

(c) Opening statements may be made unless a party waives this right.

(d) All witnesses may be cross-examined.

5- 101.08 Determination of Hearing Officer – Final Decision

The hearing officer shall prepare a written determination recommending a course of action. Such determination shall be given to the PSCRB and the head of a purchasing agency. Copies shall also be sent to the contractor or prospective contractor, the MSPB Special Assistant Attorney General, and the affected using agency. The contractor or prospective contractor shall have ten (10) days to file comments upon the hearing officer’s determination. The PSCRB may request oral argument. After consultation with the using agency and the MSPB Special Assistant Attorney General, the PSCRB shall issue a final decision. Both the hearing officer’s determination and the final decision shall recite the evidence relied upon. When debarment is recommended or ordered, the length of the debarment, the reasons for such action, and to what extent affiliates are affected shall be set forth. In addition, the final determination shall inform the debarred person of his rights to judicial review under this chapter of these regulations.

5- 101.09 Effect of Debarment Decision

A debarment decision will take effect upon issuance and receipt by the contractor or prospective contractor. After the debarment decision takes effect, the contractor shall remain debarred until the debarment period specified in the decision expires.

5- 101.10 Maintenance of List of Debarred and Suspended Persons

The PSCRB shall maintain and update a list of debarred and suspended persons. All agencies of the State shall be supplied with this list. The PSCRB shall send updates of this list to all agencies of the State as necessary. Such list shall be available to the public upon request.

5- 201 APPEAL AND REVIEW OF PERSONAL SERVICE CONTRACT REVIEW BOARD DECISIONS

(a) Appeal. Any person receiving an adverse decision, the State, or both may appeal from a decision by the PSCRB to the designated court or courts of the State.

(b) Authorization of Appeal by the State. No such appeal shall be made by the State unless recommended by the PSCRB or the head of the agency involved.

5- 202 DISCONTINUANCE OF CONTRACTOR’S APPEAL

After notice of an appeal to the PSCRB has been filed with the PSCRB, a contractor may not discontinue such appeal without prejudice, except as authorized by the PSCRB.

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5- 203 VIOLATION OF LAW

The provisions of this section specifically apply where it is determined administratively, or upon administrative or judicial review, that a solicitation or award of a contract is in violation of federal or state law(s).

5- 203.01 Determination that Solicitation or Award Violates Law

A solicitation or award may be in violation of the law due to actions of state employees, bidders, offerors, respondents, contractors, or other persons. After consultation with the MSPB Special Assistant Attorney General, the PSCRB or an Agency Head may determine that a solicitation or contract award is in violation of the provisions of the Mississippi Personal Service Contract Review Board Rules and Regulations. After consultation with the MSPB Special Assistant Attorney General, the Ethics Commission may determine that a solicitation or award violates the Ethics in Public Contracting provisions of the Mississippi Personal Service Contract Review Board Rules and Regulations. Any such determination shall be made in writing after an opportunity to be heard is given, and such determination is subject to appropriate appeal.

5- 203.02 Finding of Bad Faith or Fraud

Bad faith or fraud shall not be assumed. Specific findings showing reckless disregard of clearly applicable laws or regulations must support a finding of bad faith. A finding of fraud must be supported by specific findings showing knowing, willful acts in disregard of such laws or regulations. Mississippi Code Annotated § 31-7-57 holds state employees personally liable if they authorize or make a solicitation or award of a contract in violation of the law.

5- 204 REMEDIES PRIOR TO AN AWARD

If prior to award it is determined that a solicitation or proposed award of a contract is in violation of law, then the solicitation or proposed award shall be:

(a) canceled; or,

(b) revised to comply with the law.

5- 204.01 Canceling or Revising Solicitation or Proposed Award to Comply with Law

A finding by the PSCRB, after consultation with the MSPB Special Assistant Attorney General, that the solicitation or proposed award is in violation of law will constitute a compelling reason to cancel or revise a solicitation or proposed award. Such cancellation shall be made in accordance with Section 3-301 (Cancellation of Solicitations).

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5- 205 REMEDIES AFTER AN AWARD

If after an award, it is determined that the solicitation or award is in violation of the law then the contract will be canceled in accordance with Section 3-301 (Cancellation of Solicitations).

5- 205.01 Termination

Contracts based on awards or solicitations that were in violation of law shall be terminated at no cost to the State, except as may be approved or ratified by the PSCRB in compliance with state law.

5- 205.02 Effects of Declaring a Contract Null and Void

In all cases where a contract is voided, no further payments shall be made under the contract and the State is entitled to recover the greater of:

(a) the difference between payments made under the contract and the contractor’s actual costs up until the contract was voided; or,

(b) the difference between payments under the contract and the value to the State of the services, if obtained under the contract.

The State may, in addition, claim damages under any applicable legal theory.

5- 205.03 Effect of Ratification

The State shall be entitled to any damages it can prove under any theory including, but not limited to, contract and tort regardless of its ratification and affirmation of the contract.

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CHAPTER 6 – ETHICS IN CONTRACTING FOR PERSONAL AND PROFESSIONAL SERVICES

This chapter is intended to be applied in conjunction with and shall not be considered as superseding any laws or regulations administered and enforced by the State Ethics Commission. Please refer to Mississippi Code Annotated §§ 25-4- 101 through 25-4- 119 for applicable statutes.

6- 101 DEFINITIONS OF TERMS USED IN THIS CHAPTER

(a) Confidential Information means any information which is available to an employee only because of the employee’s status as an employee of the State of Mississippi and is not a matter of public knowledge or available to the public on request.

(b) Conspicuously means written in such special or distinctive format, print, or manner that a reasonable person against whom it is to operate ought to have noticed it.

(c) Direct or Indirect Participation means involvement through decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity.

(d) Financial Interest means:

(1) ownership of any interest or involvement in any relationship from which, or as a result of which, a person within the past year has received, or is presently or in the future entitled to receive, monetary compensation or material gratuity;

(2) ownership of such interest in any property or any business or income received from any property or business as may be specified by the Ethics Commission; or,

(3) holding a position in a business such as an officer, director, trustee, partner, employee, or the like, or holding any position of management.

(e) Gratuity means a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received.

(f) Immediate Family or Relative means a spouse, children, parents, brothers and sisters, and such other relatives as may be designated by the Ethics Commission.

(g) Official Responsibility means direct administrative or operating authority, whether intermediate or final, either exercisable alone or with others, either personally or through subordinates, to approve, disapprove, or otherwise direct Mississippi action.

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(h) Purchase Request means that document whereby a using agency requests that a contract be entered into for a specified need, and may include, but is not limited to, the description of the requested service, expected length of service, criteria for evaluation, and information supplied for the making of any written determination required by this Code.

(i) Bona Fide Employee means a person employed by a prospective contractor and subject to the prospective contractor’s supervision and control as to the time, place, and manner of performance, which neither exerts nor proposes to exert improper influence to solicit or obtain Mississippi contracts. In determining whether a bona fide employment relationship exists, the following factors should be considered:

(1) whether the employment is continuous;

(2) whether the person is subject to the supervision and control of the prospective contractor;

(3) whether the size of any contingent fee is reasonable in relation to the service performed;

(4) whether the method of payment of the contingent fee is customary in the trade; and,

(5) whether the person is employed solely by the prospective contractor.

(j) Bona Fide Established Commercial Selling Agency means a business that neither exerts nor proposes to exert improper influence to solicit or obtain public contracts. In determining whether a business is a bona fide established commercial selling business, the following factors should be considered:

(1) whether the business is one which has either been active for a considerable period of time or is presently a going concern and is likely to continue as such;

(2) whether the business uses its own name and is characterized by the customary indicia of the conduct of a regular business;

(3) the degree to which the business’ activities are directed toward the solicitation of contracts of the State;

(4) whether the size of any contingent fee is reasonable in relation to the services performed; and,

(5) whether the method of payment of the contingent fee is customary in the trade.

(k) Business Employee means a person, whether compensated or not, who performs personal services for a business.

(l) Employee, as defined in Section 1-201 (Definitions) is hereinafter referred to as “Mississippi Employee.” As used throughout this section, the term “Mississippi Employee” shall include:

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(1) a person elected to a Mississippi office;

(2) a non-elected person, whether appointed or selected through a personnel selection procedure, receiving a salary, wages, or other compensation from the State; and,

(3) a non-compensated or minimally compensated person who is performing personal services for the State.

The term “Mississippi Employee” does not include a person who, as an independent contractor, or contract worker as defined in Mississippi Code Annotated § 25-9- 120(1) performs professional, scientific, technical, or advisory service for a state agency and who receives a fee, honorarium, or similar consideration for the services performed.

6- 201 STATEMENT OF POLICY

Public employment is a public trust. It is the policy of the State of Mississippi to promote and balance the objective of protecting government integrity and the objective of facilitating the recruitment and retention of personnel needed by the State. Such policy is implemented by prescribing essential standards of ethical conduct without creating unnecessary obstacles to entering public service. Public employees must discharge their duties impartially so as to assure fair competitive access to governmental procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the state procurement organization. Additionally, Mississippi Code Annotated § 25-4- 101 states:

The Legislature declares that elective and public office and employment is a public trust and any effort to realize personal gain through official conduct, other than as provided by law, or as a natural consequence of the employment or position, is a violation of that trust. Therefore, public servants shall endeavor to pursue a course of conduct which will not raise suspicion among the public that they are likely to be engaged in acts that are in violation of this trust and which will not reflect unfavorably upon the state and local governments.

To achieve the purpose of this chapter, it is essential that those doing business with the State of Mississippi also observe the ethical standards prescribed herein.

6- 202 GENERAL STANDARDS OF ETHICAL CONDUCT

(a) General Ethical Standards for Employees.

Any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee’s duties is a breach of a public trust. In order to fulfill this general prescribed standard, employees must also meet the specific standards set forth in the remaining sections of this chapter.

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(b) General Ethical Standards for Non-Employees.

Any effort to influence any public employee, or contractor with the State, to breach the standards of ethical conduct set forth in this section and the remaining sections of this chapter is also a breach of ethical standards.

Note: The head of each governmental body or such official’s designee is encouraged to explain and to discuss at least annually with such official’s employees the provisions of these regulations.

6- 203 EMPLOYEE CONFLICT OF INTEREST

(a) Conflict of Interest.

It shall be a breach of ethical standards for any employee to participate directly or indirectly in a procurement when the employee knows that:

(1) the employee or any member of the employee’s immediate family has a financial interest pertaining to the procurement;

(2) a business or organization in which the employee, or any member of the employee’s immediate family, has a financial interest pertaining to the procurement; or,

(3) any other person, business, or organization with whom the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement.

(b) Discovery of Actual or Potential Conflict of Interest, Disqualification, and Waiver.

Upon discovery of an actual or potential conflict of interest, an employee shall promptly file a written statement of disqualification and shall withdraw from further participation in the transaction involved. The employee shall, at the same time, apply to the Ethics Commission for an official advisory opinion as to what further participation, if any, the employee may have in the transaction.

(c) Notice.

Notice of this prohibition shall be provided in accordance with official opinions promulgated by the Ethics Commission.

Note: Section 6-203 (Employee Conflict of Interest) covers instances in which a state employee involved in procurement is actively negotiating for employment with a contractor or prospective contractor. Such an employee must disqualify himself or herself from participation in a procurement involving such a contractor or prospective contractor and apply to the Ethics Commission for an official opinion of the statutory conflict of interest prohibition relating to that procurement. Offers of employment

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under certain circumstances may also be gratuities which are prohibited by Section 6- 204.

6- 204 GRATUITIES

It shall be a breach of this regulation for any person to offer, give, or agree to give any employee or former employee, or for any employee or former employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, or preparation of any part of a program requirement or a purchase request. It shall further be a breach for any person to influence the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or proposal therefor through the offering or giving of a gratuity. The prohibition against gratuities prescribed in this section shall be conspicuously set forth in every contract and solicitation therefor.

6- 204.01 Gratuities Prohibition

6- 204.01.1 Relationship of Gratuity

In addition, the gratuity or offer of employment must be made in relation to any proceeding or application, request for a ruling, determination, claim or controversy, or other particular matter, and in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, action to influence the content of any specification or procurement standard, rendering of advice, investigation, auditing, or other advisory capacity to constitute a breach.

6- 204.01.2 Family

This prohibition extends to the giving of gratuities to anyone on the state employee’s or former state employee’s behalf such as a member of that employee’s immediate family.

6- 204.02 When Prohibition Against Gratuities Not Applicable

Section 6-204 (Gratuities) does not prohibit:

(a) the solicitation or acceptance of anything of monetary value from a friend, parent, spouse, child, or other close relative when the circumstances make it clear that the motivation for the transaction is unrelated to any procurement or program requirement with the State and is based upon a personal or family relationship;

(b) the participation in the activities of, or the acceptance of an award for, a meritorious public contribution or achievement from a charitable, religious, professional, social or fraternal organization, or from a nonprofit educational, recreational, public service, or civic organization;

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(c) acceptance only on current customary terms of finance of a loan from a bank or other financial institution for proper and usual activities of state employees, such as home mortgage loans; or,

(d) acceptance of unsolicited advertising products or promotional material, such a pens, pencils, note pads, calendars, and other such items.

6- 204.03 Contract Clause

The following clause shall be conspicuously set forth in every contract and solicitation therefore requiring Personal Service Contract Review Board approval:

REPRESENTATION REGARDING GRATUITIES (Required)

The bidder, offeror, respondent, or contractor represents that it has not violated, is not violating, and promises that it will not violate the prohibition against gratuities set forth in Section 6-204 (Gratuities) of the Mississippi Personal Service Contract Review Board Rules and Regulations.

6- 205 PROHIBITION AGAINST CONTINGENT FEES

(a) Contingent Fees. It shall be a breach of ethical standards for a person to be retained, or to retain a person, to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, unless such an arrangement is fully disclosed in writing.

(b) Representation of Contractor. Every person, before being awarded a state contract, shall represent, in writing, that such person has not retained anyone in violation of subsection (a) of this section. Failure to do so constitutes a breach of ethical standards.

(c) Contract Clause. The representation prescribed in subsection (b) of this section shall be conspicuously set forth in every contract and solicitation therefor.

6- 205.01 Influence Peddling

The prohibition in Section 6-205 (Prohibition Against Contingent Fees) covers influence peddling and particularly that which might occur when a former state official is hired on a contingent basis by a business seeking state contracts.

6- 205.02 Relationship of Commercial Selling Business to Prospective Contractor

The relationship between a bona fide established commercial selling business and the prospective contractor should be characterized by the following:

(a) the fees charged by the business are commensurate with the nature and extent of the business’s services actually rendered to the prospective contractor;

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(b) the business has adequate knowledge of the service of the prospective contractor which it represents to judge whether the item may be able to meet the State’s requirements; and,

(c) the relationship between the business and the prospective contractor is or is contemplated to be continuing.

6- 205.03 Improper Influence

A business employee or a commercial selling business should be conclusively presumed not to be bona fide if the Ethics Commission determines that improper influence has been or is being used to secure a state contract.

6- 205.04 Solicitation Clause

Every solicitation for a service shall conspicuously set forth the following provision to be completed and submitted with every prospective contractor’s bid, proposal, or statement of qualifications for those contracts which require PSCRB approval:

PROSPECTIVE CONTRACTOR’S REPRESENTATION REGARDING CONTINGENT FEES (Required)

The prospective contractor represents as a part of such contractor’s bid, proposal, or statement of qualifications that such contract has/has not (use applicable word or words) retained any person or agency on a percentage, commission, or other contingent arrangement to secure this contract.

6- 205.05 Information on Contingent Fees

Any prospective contractor who has completed the clause set forth in Section 6-205.04 (Solicitation Clause) in the affirmative and is the apparently successful bidder, offeror, or respondent shall submit the following information:

(a) the full name and business address of the business or person retained, and the type of business organization;

(b) the relationship of the business or person to the prospective contractor;

(c) the terms of the retention agreement or a copy of such agreement;

(d) if such person is a business employee:

(1) the duration of employment;

(2) whether that employee is on the contractor’s payroll for purposes of social security and federal income tax withholding; and,

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(3) whether that employee represents other businesses and, if so, the names and addresses of such businesses;

(e) whether the business or person represents the prospective contractor on:

(1) both government and commercial business;

(2) only government business; or,

(3) only the present contract;

(f) The extent of the duties of the business or person; and,

(g) The length of time the business or person has been engaged in a particular type of work and has performed this type of work for the contractor.

6- 205.06 Contract Clause

The following clause shall be conspicuously set forth in every contract and solicitation therefor requiring PSCRB approval:

REPRESENTATION REGARDING CONTINGENT FEES (Required)

The contractor represents that it has not retained a person to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except as disclosed in the contractor’s bid, proposal, or statement of qualifications.

6- 206 RESTRICTION ON EMPLOYMENT OF PRESENT EMPLOYEES

Except as may be permitted by regulations or rulings of the Ethics Commission, it shall be a breach of ethical standards for any employee who is participating directly or indirectly in the procurement process to become or be, while such an employee, the employee of any person contracting with the governmental body by whom the employee is employed. Additionally, Mississippi Code Annotated § 25-4- 105(3)(a) states that “no public servant shall be a contractor, subcontractor or vendor with the governmental entity of which he is a member, officer, employee or agent, other than in his contract of employment; or have a material financial interest in any business which is a contractor, subcontractor or vendor with the governmental entity of which he is a member, officer, employee or agent” except as may be permitted by Mississippi Code Annotated § 25-4- 105(4)(d).

6- 207 RESTRICTION ON FORMER EMPLOYEES IN MATTERS CONNECTED WITH THEIR FORMER DUTIES

(a) It shall be a breach of ethical standards for any former employee knowingly to act as a principal, or as an agent for anyone other than the State in connection with any:

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(1) judicial or other proceeding, application, request for a ruling, or other determinations;

(2) contract;

(3) claim; or,

(4) charge or controversy;

in which the employee participated personally and substantially through decision, approval, disapproval, recommendation, rendering of advice, investigation, or otherwise while an employee, where the State is a party or has a direct and substantial interest.

(b) It shall be a breach of ethical standards for any former employee, within one year after cessation of the former employee’s official responsibility, knowingly to act as a principal, or an agent for anyone other than the State, in connection with any:

(1) judicial or other proceeding, application, request for a ruling, or other determination;

(2) contract;

(3) claim; or,

(4) charge or controversy;

in matters which were within the former employee’s official responsibility, where the State is a party or has a direct or substantial interest. Additionally, Mississippi Code Annotated § 25- 4- 105(3)(e) states that “no public servant shall perform any service for any compensation for any person or business after termination of his office or employment in relation to any case, decision, proceeding or application with respect to which he was directly concerned or in which he personally participated during the period of his service or employment.”

6- 208 DISQUALIFICATION OF BUSINESS WHEN AN EMPLOYEE HAS A FINANCIAL INTEREST

It shall be a breach of ethical standards for a business in which an employee has a financial interest knowingly to act as a principal, or as an agent for anyone other than the State, in connection with any:

(a) judicial or other proceeding, application, request for a ruling, or other determination;

(b) contract;

(c) claim; or,

(d) charge or controversy;

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in which the employee either participates personally and substantially through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, or which is the subject of the employee’s official responsibility, where the State is a party or has a direct and substantial interest.

6- 209 RESTRICTION ON EMPLOYEES PURCHASING UNDER TERMS OF A STATE CONTRACT

Mississippi Code Annotated § 25-4-105(1) states, “No public servant shall use his official position to obtain pecuniary benefit for himself other than that compensation provided for by law, or to obtain pecuniary benefit for any relative or any business with which he is associated.”

In layman’s terms, this means that anyone purchasing services is free to negotiate the best price possible with the seller but any attempt to tie the sale to a state contract based upon employment with a governmental entity could be considered to be a violation of the ethics law.

6- 210 USE OF CONFIDENTIAL INFORMATION

It shall be a breach of ethical standards for any employee or former employee knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated personal gain of any other person. Additionally, Mississippi Code Annotated § 25-4- 105(d) states that “no person may intentionally use or disclose information gained in the course of or by reason of his official position or employment as a public servant in any way that could result in pecuniary benefit for himself, any relative, or any other person, if the information has not been communicated to the public or is not public information.”

6- 211 BOARD MEMBER ETHICS

Board members of the PSCRB hold positions of public trust and are charged with ensuring a fair, transparent process for the solicitation and selection of personal and professional services contracts. Each board member is individually responsible for upholding the public trust by conducting himself or herself in as fair, equitable, impartial, and non-partisan a manner as possible. Board members are responsible for ensuring individual compliance with all applicable laws, regulations, and rules governing their conduct.

6- 211.01 General Standards of Ethical Conduct (a) Board members shall conduct themselves in a manner that fortifies the public confidence in the Mississippi procurement process for personal and professional services by avoiding even the appearance of impropriety;

(b) Board members shall strive to foster an open, transparent, and competitive process in order to best serve the interests of the State;

(c) Board members shall encourage, and provide an example for, ethical conduct to all participants in the process under the PSCRB’s purview;

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(d) Board members shall avoid all conflicts of interests and comply with the provisions herein when an unavoidable conflict arises;

(e) Board members shall be open, fair, impartial, and non-discriminatory in conducting all PSCRB business; and

(f) Board members shall act as responsible stewards of public funds in order to uphold the public interest with which they have been entrusted.

6- 211.02 Communication (a) Communication A mong Board Members

In order to promote transparency and ensure compliance with the requirements set forth in the Mississippi Open Meetings Act, board members shall actively avoid communications regarding official PSCRB business, outside the setting of a board meeting, when a quorum is present, either in person or through electronic means.

(b) Communication with Vendors and Other Interested Parties

(1) In order to promote transparency and support both the practice and appearance of impartiality on the part of the PSCRB in the conduct of its business, board members will avoid engaging in communications through verbal or written means with a vendor, or any other vendor representative, which relates directly or indirectly to the solicitation and/or selection of a personal or professional services contract which may be presented to the PSCRB for consideration for approval.

(2) If such communication is unavoidable, board members shall disclose to the PSCRB any discussions had, including the name of the vendor or vendor representative and the procurement or contract which was the focus of the communication, at the next board meeting and prior to voting on the matter.

6- 211.03 Conflicts of Interest

Board members shall conduct the business of the PSCRB in an honest and ethical manner, which includes the ethical handling of any actual or apparent conflicts of interest related to personal and/or professional relationships. Under Mississippi law, “No [board member] shall use his [or her] official position to obtain, or attempt to obtain, pecuniary benefit for himself other than that compensation provided for by law, or to obtain, or attempt to obtain, pecuniary benefit for any relative or any business with which he [or she] is associated” See Miss. Code Ann. §§ 25-4- 103 and -105.

(a) Definitions

(1) Pecuniary Benefit is defined as any benefit in the form of money, property, commercial interests, or anything else the primary significance of which is economic gain.

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(2) Relative is defined as the board member’s spouse, child, parent, sibling, and the spouse of their child, parent, or sibling.

(3) “Business with which he [or she] is associated” is defined as any business of which

the board member or his or her relative is:

1. an officer, director, owner, partner, or employee, or
2. is a holder of more than 10% of the fair market value, or
3. derive more than $2,500.00 in annual income, or
4. over which the board member or his or her relative exercises control.

(4) Use of office includes:

1. voting on a matter;
2. taking part in discussions on a matter;
3. being present during discussions on a matter; and
4. using the office to attempt to influence the actions of others.

(b) Breach of Ethical Standards.

It shall be a breach of ethical standards for any board member to participate in the discussion of, or PSCRB a ction related to, a procurement when he or she knows that:

(1) the board member or any relative has a financial interest pertaining to the procurement;

(2) a business or organization in which the board member, or any relative of the board member, has a financial interest pertaining to the procurement; or

(3) any other person, business, or organization with whom the board member, or any relative of the board member, is negotiating or has an arrangement concerning prospective employment, is involved in the procurement.

(c) Disclosure and Recusal

(1) Board members shall make public any conflict of interest that exists related to an item which comes before the PSCRB for consideration to ensure the integrity of the PSCRB and its decisions are maintained.

(2) If a conflict of interest exists, a board member shall recuse himself or herself by leaving the meeting until the item(s) in question has been considered and action has been taken. Such recusal shall be properly reflected in the Minutes of the meeting. Abstaining from a vote or discussion will not suffice to satisfy the requirements of this section. Board members who serve as the head of an agency shall recuse themselves from any discussion in his or her capacity as a board member and for any vote for any contract brought for consideration for approval by the PSCRB by the agency which they head.

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(3) No board member shall participate in any discussion or deliberation related to an item when a conflict of interest exists, including discussions outside of the context of the official actions of the PSCRB.

(d) Interest in a Contract

It is prohibited, through both Mississippi Constitution Article 4, Section 109, and state statutes, for a board member to be directly or indirectly interested in any contract with the state, or any subdivision thereof, authorized by any law passed or order made by any board of which he or she may be or may have been a member, during the term for which he or she is appointed and for a period of one year after the expiration of such term.

6- 211.04 Gratuities

Board members shall comply with the provisions of Section 6-204 regarding gratuities.

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CHAPTER 7 – POLICIES AND PROCEDURES FOR CONTRACT APPROVAL

7- 101 GENERAL PROVISIONS

This chapter provides the administrative procedures for submitting required documentation to implement state agency contract requests for personal and professional services. For the purposes of these procedures, a service contract is defined as an agreement for the provision of services between an agency under the purview of MSPB (unless exempt from the PSCRB) and a provider of the services.

7- 102 PROCEDURES FOR PROCUREMENT

Pursuant to the provisions of the previous chapters of these regulations, the total amount of the contract shall be used to determine the appropriate procedures for procurement of services as follows:

(a) Service contracts for $75,000 or less may be procured as provided in Section 3-205 (Small Purchases);

(b) Service contracts over $75,000 shall be procured as provided in Section 3-201 (Method of Source Selection), and are subject to approval by the PSCRB;

(c) If the cumulative total of multiple service contracts between an agency and one vendor for the same service exceeds $75,000 then SPAHRS or MAGIC will automatically route the contract to the PSCRB for approval;

(d) Procedures and regulations regarding sole-source procurement are addressed in Section 3- 206;

(e) Procedures and regulations regarding emergency procurement are addressed in Section 3- 207; and

(f) Procedures and regulations regarding contract workers are addressed in Section 3-101.04.

Competitive bidding includes Invitations for Bids, Requests for Proposals, Requests for Qualifications, and any other alternative, generally accepted procurement method approved by the PSCRB. See MS AG Op., Mosley (October 23, 2015).

7- 102.01 Multiple Contracts With Same Vendor But Different Scopes of Services

PSCRB staff has the authority to approve contracts with the same vendor which route to the PSCRB based on a system technicality but which contain different scopes of services. Staff approval is given only after review of the scopes of services to justify the need for a second contract with the same vendor. Any contracts approved using this authority cannot exceed $75,000.

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7- 103 COMPETITIVE PROCUREMENT EXCEPTION

Prior to entering into a contract, any agency that seeks to procure personal or professional service contracts that are required to be approved by the PSCRB may request an exception from any requirement that the agency use competitive bidding as a procurement method by submitting a petition for relief as provided in Section 3-201.01. The petition for relief must:

(a) Be in writing, signed by the Agency Head, and include any supporting documentation or information;

(b) Be submitted no more than thirty (30) calendar days prior to the scheduled PSCRB meeting date and in accordance with the deadlines prescribed by the Personal Service Contract Review Board, which are published on the Mississippi State Personnel Board website;

(c) Include the agency’s plan for an alternative competitive procurement procedure for selecting the personal or professional service contract that ensures open, transparent procedures as provided in Section 3-201.01–.03; and

(d) Be submitted using the method prescribed by the PSCRB.

7- 104 PRE-REVIEW OF INVITATIONS FOR BIDS, REQUESTS FOR PROPOSALS, AND REQUESTS FOR QUALIFICATIONS

An IFB, RFP, or RFQ for a contract under the purview of the PSCRB may be electronically submitted to the PSCRB staff for consultant review prior to advertisement or issuance. The IFB, RFP, or RFQ should be submitted in final form (as if being produced to inquiring vendors) and include (1) the advertisement, (2) the IFB, RFP, or RFQ, and (3) the proposed contract. The PSCRB staff may review, as time and workload permit, the IFB, RFP, or RFQ specifically to evaluate compliance with the PSCRB regulations. Upon review, the PSCRB staff may then notify the agency of necessary and/or suggested changes. Responsibility for all IFB, RFP, or RFQ content rests with the agency. Review of the IFB, RFP, or RFQ by PSCRB staff does not guarantee approval of the procurement and/or the contract by the PSCRB. Agencies are encouraged to allow as much time in advance of advertisement as possible for this review. The PSCRB staff will require a minimum of five working days for review of an IFB, RFP, or RFQ packet which totals 50 pages or less (including attachments) and seven working days for review of a packet of more than 50 pages. During the months of May, June, and July, the PSCRB staff will require a minimum of twenty working days for review of an IFB, RFP, or RFQ packet which totals 50 pages or less (including attachments) and twenty-five working days for review of a packet of more than 50 pages.

7- 105 CONTRACT SUBMISSION DATES

The PSCRB will hold one regularly scheduled meeting the Tuesday before the third Thursday every month at the MSPB Offices in Jackson, Mississippi unless a special meeting is called by the PSCRB Chairman. Notice of meetings may be found posted on the MSPB website (http://www.mspb.ms.gov ) and the Mississippi Public Meeting Notices Website

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(https://www.ms.gov/dfa/pmn), or by calling the PSCRB office (601-359-6517). All contract packets must be submitted for approval in SPAHRS and by electronic submission through the PSCRB’s E-Application system, in their entirety. All contract packets, including any applicable PSCRB forms, must be submitted for approval in SPAHRS and by electronic submission through the PSCRB’s E-Application system, in their entirety. Submission to PSCRB must be no more than thirty (30) calendar days prior to the scheduled PSCRB meeting date and in accordance with the deadlines prescribed by the Personal Service Contract Review Board, which are published on the Mississippi State Personnel Board website, in order to be considered for placement on the agenda for board action. Since no Board action is required, staff approved contracts may be submitted up to fifteen (15) days prior to the scheduled PSCRB meeting date.

7- 106 CONTRACT APPROVAL AND REJECTION

Any contract submitted to the PSCRB for review and approval shall be presumed to be approved if the PSCRB does not object to the contract within thirty (30) days of the agency’s submission of the contract. If the PSCRB rejects a contract that has been submitted for review or approval, it shall clearly state the basis of its action, including, but not limited to, the policy violated and any corrective actions necessary to bring the contract in compliance with the PSCRB Rules and Regulations.

7- 107 DEADLINE EXCEPTION REQUESTS

A request for exception to the submission deadline contained in Section 7-105 must be submitted in writing directly to the Chairman of the PSCRB (MSPB Executive Director) and must contain a detailed account of the circumstances, which must be compelling, that justifies the exception. The written request must be signed by the Agency Head. All such exception requests must be approved by the Chairman, in his or her discretion, in order for the proposed contract to be placed on the agenda for the next PSCRB meeting. Submission of a request for deadline exception does not guarantee placement on the agenda.

7- 108 REGULATORY BOARD APPROVAL

For contracts under the purview of the PSCRB, the contract and the supporting procurement information should first be submitted to and approved by the appropriate regulatory board (if required by the appropriate regulatory board’s rules and regulations) prior to submission to the PSCRB. If the agency’s regulatory board authorizes the agency to proceed with the procurement, then the agency should submit the contract and supporting procurement information to the PSCRB for approval.

7- 109 NEW REQUEST

A new request shall be defined as the initial submission of a contract for the performance of specified contractual services.

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7- 110 RENEWALS

A request to renew an existing PSCRB-approved contract must be submitted and approved by PSCRB before the contract expires. If approval by an appropriate regulatory board is required, such approval must be obtained in sufficient time for the submission deadline contained in Section 7-105 to be met. Spending authority for the current term of the contract should be requested. Authority for any optional renewal years should be requested when the contract is renewed. Renewal terms included in a contract are optional and are exercised at the agency’s discretion. When a contract is originally approved, the PSCRB is only approving the option to renew, not the actual renewal. The agency must submit the renewal document and supporting documentation for approval by the PSCRB prior to the contract expiring and in sufficient time to meet the submission deadline. Retroactive approval of a renewal cannot be granted. Once a contract has expired or terminated, the contract cannot be retroactively approved or renewed. MS AG Op., Stringer (June 25, 1999).

7- 111 MODIFICATIONS

A request to modify an existing PSCRB-approved contract is to be submitted to the PSCRB thirty (30) calendar days prior to a PSCRB meeting date which precedes the modification effective date. Any request for exception to this deadline must follow the same procedure as outlined in Section 7- 106 (Deadline Exception Requests). Modifications shall not grant extra compensation, fee, or allowance to any contractor after service is rendered or contract is made, unless contemplated within the contract itself or unless the scope of services is increased. The extension of a contract is considered a modification wherein the specified contractual services have not been completed by the end date stipulated in the original terms of the contract. Modifications cannot be made to expired contracts.

7- 111.01 Modifications to Correct Technical Problems

PSCRB staff has the authority to approve modifications to previously approved contracts that involve accounting errors and other technical problems which do not change the originally approved terms and conditions.

7- 111.02 Modifications that Only Reduce Dollar Amount or in which Amount and Services are Unchanged

PSCRB staff has the authority to approve modifications that only reduce the dollar amount of the contracts or modifications in which the amount and services are unchanged. These modifications cannot change the service agreement.

7- 111.03 Modifications Involving Cost Per Unit Fees

PSCRB staff has the authority to approve modifications to previously approved contracts that involve cost per unit fees up to ten (10) percent of the original approved contract amount not to exceed a total contract amount of $500,000.

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7- 112 EMERGENCY CONTRACTS

Emergency contracts will be reviewed by PSCRB staff for technical compliance upon the written request of the submitting agency. The PSCRB staff will process the contract in MAGIC upon receipt of the contract, and then conduct the requested review and notify the agency of any problems found during the requested review; however, it is the responsibility of the agency to correct any errors. If no written request for review is made by the submitting agency, PSCRB staff will process the contract in MAGIC upon receipt of same, and then conduct a review of the contract for internal auditing purposes. Emergency contracts will be presented to the PSCRB at its regular meeting and will be included in the minutes of said meeting, but no action is required by the PSCRB as to these contracts. Any approval in MAGIC or any other state system does not constitute approval of the emergency procurement by the PSCRB and is done solely for processing purposes. This provision is not intended to prevent the PSCRB from making a report as provided in Section 3- 602.01 (Statutory Authority to Audit) or to take other action as deemed appropriate.

7- 113 PROTEST DOCUMENTS

Agencies shall submit, with their contract approval request, documentation signed by their Executive Director, Agency Head, or his or her designee certifying that adequate time to protest has been given to all prospective contractors and that no protest or potential protests are known to the agency or any agency employees. If a protest is known, the agency shall disclose the subject matter of the protest, state whether the protest has been resolved, and explain the agency’s determination concerning the protest.

7- 114 POST-AWARD VENDOR DEBRIEFING

Agencies are encouraged to exchange information with vendors in an effort to build and strengthen business relationships and improve the procurement process between vendors and the State. To further this effort, agencies shall establish vendor debriefing procedure(s) and inform vendors at the time of procurement of the right to request a debriefing. At a minimum, debriefing should occur within five (5) business days after the vendor request and prior to submission of the contract packet to the PSCRB. Agencies shall submit with the contract approval request, documentation signed by their agency head or his or her designee, reporting the number of vendor debriefings requested and conducted. This information may be included as part of the protest correspondence required in Section 7-113 (Protest Documents).

7- 114.01 Debriefing Request

A vendor, successful or unsuccessful, may request a post-award vendor debriefing, in writing, by U.S. mail or electronic submission, to be received by the agency within three (3) business days of notification of the contract award. A vendor debriefing is a meeting and not a hearing; therefore, legal representation is not required. If a vendor prefers to have legal representation present, the vendor must notify the agency and identify its attorney. The agency shall be allowed to schedule and/or suspend and reschedule the meeting at a time when a representative of the Office of the Mississippi Attorney General can be present.

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7- 114.02 When Debriefing Should Be Conducted

Unless good cause exists for delay, the debriefing should occur within five (5) business days after receipt of the vendor request and may be conducted during a face-to-face meeting, by telephonic or video conference, or by any other method acceptable to the agency. The Procurement Officer or designee should chair the meeting, and where practicable, include other staff with direct knowledge of the procurement.

7- 114.03 Information To Be Provided

At a minimum, the debriefing information shall include the following:

(1) The agency’s evaluation of significant weaknesses or deficiencies in the vendor’s bid, proposal, or statement of qualifications, if applicable;

(2) The overall evaluated cost or price, and technical rating, if applicable, of the successful vendor(s) and the debriefed vendor;

(3) The overall ranking of all vendors, when any ranking was developed by the agency during the selection process;

(4) A summary of the rationale for award; and,

(5) Reasonable responses to relevant questions about selection procedures contained in the solicitation, applicable regulations, and other applicable authorities that were followed.

7- 114.04 Information Not To Be Provided

The debriefing shall not include point-by-point comparisons of the debriefed vendor’s bid, proposal, or SOQ with those of other offering vendors. Any written request by a vendor for nondisclosure of trade secrets and other proprietary data is subject to the provisions of Mississippi Code Annotated §§ 25-61-9 and 79-23-1.

7- 114.05 Statement in the Solicitation

The agency shall include in each solicitation a statement that vendor debriefing is available and the information described in Section 7-112.03 may be disclosed during post-award debriefing.

7- 114.06 Summary

An official summary of the debriefing shall be included in the contract file.

7- 114.07 Pre-Award Vendor Debriefing

Nothing in these regulations requires or prohibits pre-award vendor debriefing.

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7- 115 UTILIZATION OF STATE PROPERTY BY CONTRACTOR

If a contractor will be utilizing State property (office space, equipment, etc.) for the provision of services, the procuring agency shall submit a written notification to the Bond Commission explaining the property to be used. A copy of this letter must be submitted to the PSCRB as part of the procurement packet.

7- 116 TRANSFER OF SPENDING AUTHORITY

SPAHRS no longer requires the transfer of spending authority from one fiscal year to the next for independent contractors.

7- 117 EXECUTED CONTRACTS

After the approval of a contract by the PSCRB, the contract may be executed by the agency and the vendor. The contract, including any accompanying exhibits, attachments, and appendices, is subject to the Mississippi Public Records Act of 1983 and its exceptions. See Mississippi Code Annotated §§ 25-61-1 et seq. and Mississippi Code Annotated § 79-23-1. Unless exempted from disclosure due to a court-issued protective order, a copy of this executed contract is required to be posted to the Department of Finance and Administration’s independent agency contract website for public access at http://www.transparency.mississippi.gov . See Mississippi Code Annotated §§ 27-104-151 et seq. The personal or professional services to be provided, the price to be paid, and the term of the contract shall not be deemed to be a trade secret, or confidential commercial or financial information. The executed contract must be identical to the proposed contract approved by the PSCRB or the contract will be deemed null and void. If a change is to be made to the contract after approval by the PSCRB but before execution, the change must be brought before the PSCRB for approval.

7- 118 SPAHRS PROCEDURES FOR PSCRB CONTRACTS

7- 118.01 Entering Contract Information in SPAHRS

An agency should enter complete contract information into the SPAHRS system and transmit it electronically to the PSCRB for review. The Request for Contract Personnel Services Approval form must be completed in full, following all applicable requirements by the Internal Revenue Code to determine contract type, all DFA requirements for vendor codes, social security numbers and commodity codes, and all PSCRB requirements detailed in the Mississippi Personal Service Contract Rules and Regulations. Only one contract service type may be entered for each request. Agencies must submit necessary vendor codes with vendor number/social security number in SPAHRS.

7- 118.02 Requests to Modify

Requests to modify the terms of previously PSCRB-approved contracts are to be resubmitted to the appropriate regulatory board (if applicable) and approved by that board prior to submission

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to the PSCRB. Along with the amendment modifying the original contract terms, the approved SPAHRS entry must also be modified.

7- 118.03 Terminations

Agencies must notify the PSCRB upon termination of previously approved contracts for personal and professional services or the completion of the performance of services prior to the original terms of the contract (expiration date). The approved spending authority should be modified to reflect the total dollar amount expended. This modification must be transmitted to the PSRCB for approval. After approval of the modified amount, a termination date should be entered into SPAHRS. The original approved end date remains the end date approved by the PSCRB. A termination date is entered in the “Termination Date” field in SPAHRS.

7- 118.04 Options to Renew

Options to renew which are not exercised by the agency will be treated as a termination by the PSCRB.

7- 119 DHS OR DCPS PERSONAL SERVICE CONTRACTS

From July 1, 2016 through June 30, 2018, the Department of Human Services (DHS) must give PSCRB notice before entering into any proposed personal service contract which is determined by the DHS Agency Head to be useful in establishing and operating the Department of Child Protection Services (DCPS). The Agency Head of DHS must advise the Board of his determination that the proposed contract would be useful in establishing and operating DCPS.

From July 1, 2016 to June 30, 2019, the Agency Head of DCPS must give PSCRB notice before entering into any proposed personal service contract.

Written notice to the PSCRB must be signed by the Agency Head and identify the contractor(s), contract term, annual cost, total contract cost, method of procurement, purpose of the contract, a statement of usefulness for establishing and operating DCPS where applicable, and a copy of the proposed contractual agreement including any exhibits or attachments referenced therein.

Upon receipt of the written notice, notice will be posted at http://www.mspb.ms.gov/personal- service-contract-review-board.aspx and on the Mississippi Contract/Procurement Opportunity Search Portal website established by Sections 25-53-151 and 27-104-165.

If PSCRB responds to DHS or DCPS within seven calendar days after receiving the notice, then PSCRB has an additional seven calendar days from the date of the initial response to provide any recommendations. PSCRB will notify the agency of any recommendations; however, any implemented recommendation is made at the discretion of DHS or DCPS. At the end of the second seven-day period, the agency may enter into the proposed personal service contract.

DHS and DCPS contracts will be reported to the PSCRB at its regular meeting and will be included in the minutes of said meeting, but no action is required by the Board as to these

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contracts. Any approval in MAGIC or any other state system does not constitute approval of the DHS or DCPS procurement or contract by the PSCRB and is done solely for processing purposes.

See Senate Bill 2179 (2016 Regular Session).

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CHAPTER 8 – RULEMAKING AND DECLARATORY OPINIONS

8- 101 RULEMAKING ORAL PROCEEDINGS

This section applies to all oral proceedings held for the purpose of providing the public with an opportunity to make oral presentations or written input on proposed new rules, amendments to rules, and proposed repeal of existing rules before the Personal Service Contract Review Board pursuant to the Administrative Procedures Act. Mississippi Code Annotated § 25-43-3.104.

When a political subdivision, an agency, or ten (10) persons request an oral proceeding in regards to a proposed rule adoption, the requestor must submit a printed, typewritten, or legibly handwritten request.

A. Each request must be submitted on 8-1/2” x 11” white paper.

B. The request may be in the form of a letter addressed to the Chairman of the Personal Service Contract Review Board or in the form of a pleading as if filed with a court.

C. Each request must include the full name, telephone numbers, and mailing address of the requestor(s).

D. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request.

Notice of the date, time, and place of all oral proceedings shall be filed with the Secretary of State’s Office for publication in the Administrative Bulletin. The agency providing the notice shall provide notice of oral proceedings to all persons requesting notification of proposed rule adoptions. The oral proceedings will be scheduled no earlier than twenty (20) days from the filing of the notice with the Secretary of State. The Chairman of the Personal Service Contract Review Board or designee who is familiar with the substance of the proposed rule shall preside at the oral proceeding on a proposed rule.

Public participation shall be permitted at oral proceedings, as follows:

A. At an oral proceeding on a proposed rule, persons may make statements and present documentary and physical submissions concerning the proposed rule.

B. Persons wishing to make oral presentations at such a proceeding shall notify the Chairman of the Personal Service Contract Review Board at least three business days prior to the proceeding and indicate the general subject of their presentations. The presiding officer in his or her discretion may allow individuals to participate that have not contacted the Personal Service Contract Review Board prior to the proceeding.

C. At the proceeding, those who participate shall indicate their names and addresses, identify any persons or organizations they may represent, and provide any other information relating to their participation deemed appropriate by the presiding officer.

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D. The presiding officer may place time limitations on individual presentations when necessary to assure the orderly and expeditious conduct of the oral proceeding. To encourage joint presentations and to avoid repetition, additional time may be provided for persons whose presentations represent the views of other individuals as well as their own views.

E. Persons making presentations are encouraged to avoid restating matters that have already been submitted in writing. Written materials may be submitted at the oral proceeding.

F. Where time permits and to facilitate the exchange of information, the presiding officer may open the floor to questions or general discussion. The presiding officer may question participants and permit the questioning of participants by other participants about any matter relating to that rule-making proceeding, including any prior written submissions made by those participants in that proceeding. No participant shall be required to answer any question.

Physical and documentary submissions presented by participants in an oral proceeding shall be submitted to the presiding officer. Such submissions become the property of the Personal Service Contract Review Board, part of the rulemaking record, and are subject to the Personal Service Contract Review Board’s public records request procedure. The Personal Service Contract Review Board may record oral proceedings by stenographic or electronic means.

8- 201 DECLARATORY OPINIONS

This section sets forth the Personal Service Contract Review Board’s rules governing the form, content, and filing of requests for declaratory opinions, the procedural rights of persons in relation to the written requests, and the Personal Service Contract Review Board’s procedures regarding the disposition of requests as required by Mississippi Code Annotated § 25-43-2.103.

The Personal Service Contract Review Board will issue declaratory opinions regarding the applicability to specified facts of:

A. A statute administered or enforceable by the Personal Service Contract Review Board;

B. A rule or regulation promulgated by the Personal Service Contract Review Board; or,

C. An order issued by the Personal Service Contract Review Board.

A request must be limited to a single transaction or occurrence.

When a person with substantial interest, as required by Mississippi Code Annotated § 25-43- 2.103, requests a declaratory opinion, the requestor must submit a printed, typewritten, or legibly handwritten request.

A. Each request must be submitted on 8-1/2” x 11” white paper.

B. The request may be in the form of a letter addressed to the Chairman of the Personal Service Contract Review Board or in the form of a pleading as if filed with a court.

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C. Each request must include the full name, telephone numbers, and mailing address of the requestor(s).

D. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request.

E. Each request must clearly state that it is a request for a declaratory opinion.

Any party who signs the request shall attest that the request complies with the requirements set forth in these rules, including but not limited to a full, complete, and accurate statement of relevant facts and that there are no related proceedings pending before any agency, administrative, or judicial tribunal.

Each request must contain the following:

A. A clear identification of the statute, rule, regulation, or order at issue;

B. The question for the declaratory opinion;

C. A clear and concise statement of all facts relevant to the question presented;

D. The identity of all other known persons involved in or impacted by the facts giving rise to the request including their relationship to the facts, and their name, mailing address, and telephone number; and,

E. A statement sufficient to show that the requestor has a substantial interest in the subject matter of the request.

The Personal Service Contract Review Board may, for good cause, refuse to issue a declaratory opinion. The circumstances in which declaratory opinions will not be issued include, but are not necessarily limited to the following:

A. The matter is outside the primary jurisdiction of the Personal Service Contract Review Board;

B. There is a lack of clarity concerning the question presented;

C. There is pending or anticipated litigation, administrative action or anticipated administrative action, or other adjudication which may either answer the question presented by the request or otherwise make an answer unnecessary;

D. The statute, rule, or order on which a declaratory opinion is sought is clear and not in need of interpretation to answer the question presented by the request;

E. The facts presented in the request are not sufficient to answer the question presented;

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F. The request fails to contain information required by these rules or the requestor failed to follow the procedure set forth in these rules;

G. The request seeks to resolve issues which have become moot or are abstract or hypothetical such that the requestor is not substantially affected by the rule, statute, or order on which a declaratory opinion is sought;

H. No controversy exists or is certain to arise which raises a question concerning the application of the statute, rule, or order;

I. The question presented by the request concerns the legal validity of a statute, rule, or order;

J. The request is not based upon facts calculated to aid in the planning of future conduct, but is, instead, based on past conduct in an effort to establish the effect of that conduct;

K. No clear answer is determinable;

L. The question presented by the request involves the application of a criminal statute or sets forth facts which may constitute a crime;

M. The answer to the question presented would require the disclosure of information which is privileged or otherwise protected by law from disclosure;

N. The question is currently the subject of an Attorney General’s opinion request;

O. The question has been answered by an Attorney General’s opinion;

P. One or more requestors have standing to seek an Attorney General’s opinion on the proffered question;

Q. A similar request is pending before this agency, or any other agency, or a proceeding is pending on the same subject matter before any agency, administrative or judicial tribunal, or where such an opinion would constitute the unauthorized practice of law; or,

R. The question involves eligibility for a license, permit, certificate, or other approval by the Personal Service Contract Review Board or some other agency and there is a statutory or regulatory application process by which eligibility for said license, permit, or certificate or other approval may be determined.

Within forty-five (45) days after the receipt of a request for a declaratory opinion which complies with the requirements of these rules, the Personal Service Contract Review Board shall, in writing:

A. Issue an opinion declaring the applicability of the statute, rule, or order to the specified circumstances;

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B. Agree to issue a declaratory opinion by a specified time but no later than ninety (90) days after receipt of the written request; or,

C. Decline to issue a declaratory opinion, stating the reasons for its action.

The forty-five (45) day period shall begin on the first business day after which the request is received by the Personal Service Contract Review Board.

Declaratory opinions and requests for declaratory opinions shall be available for public inspection and copying at the expense of the viewer during normal business hours. All declaratory opinion and requests shall be indexed by name, subject, and date of issue. Declaratory opinions and requests which contain information which is confidential or exempt from disclosure under the Mississippi Public Records Act or other laws shall be exempt from this requirement and shall remain confidential.

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APPENDICES

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APPENDIX A Agencies under PSCRB Purview

Agency Name MAGIC Business Area SAAS Agency Number (Legacy) Arts Commission 1865 865 Athletic Commission 1843 843 Auctioneer Commission 1820 820 Board of Animal Health 1405 428 Board of Architecture 1848 848 Board of Barber Examiners 1840 840 Board of Cosmetology 1822 822 Board of Dental Examiners 1824 824 Board of Examiners for Social Workers 1859 859 Board of Funeral Service 1833 833 Board of Medical Licensure 1829 829 Board of Nursing 1838 838 Board of Nursing Home Administrators 1821 821 Board of Pharmacy 1846 846 Board of Physical Therapy 1828 828 Board of Public Accountancy 1845 845 Board of Registered Professional Engineers and Land Surveyors 1841 841 Board of Registered Professional Geologists 1858 858 Boswell Regional Center 3382 382 Central Mississippi Residential Center 3389 389 Department of Agriculture and Commerce 1401 401 Department of Archives and History 1475 475 Department of Banking and Consumer Finance 1511 511 Department of Child Protection Services

Department of Corrections 1551 551 Department of Education 1201 201 Department of Employment Security 1671 671 Department of Environmental Quality 1470 470 Department of Finance and Administration 1130 130 Department of Health 1301 301 Department of Human Services 1651 651 Department of Information Technology Services 1601 601 Department of Marine Resources 1450 450 Department of Mental Health 3371 371 Department of Public Safety 1711 711

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Department of Rehabilitation Services 1635 235 Department of Revenue 1181 181 Department of Wildlife, Fisheries, and Parks 1464 464 Division of Medicaid 1628 328 East Mississippi State Hospital 3372 372 Ellisville State School 3373 373 Fair Commission 1403 431 Forestry Commission 1451 451 Grand Gulf Military Monument Commission 1472 472 Hudspeth Regional Center 3386 386 Insurance Department 1501 501 Mississippi Adolescent Center 3392 392 Mississippi Authority for Educational Television 1247 247 Mississippi Development Authority 1411 411 Mississippi Emergency Management Agency 1741 721 Mississippi Gaming Commission 1850 185 Mississippi Library Commission 1245 245 Mississippi Public Utilities Staff 1812 812 Mississippi Real Estate Appraiser Licensure and Certification Board 1836 836 Mississippi Specialized Treatment Facility 3393 393 Mississippi State Board of Contractors 1834 834 Mississippi State Hospital 3374 374 Mississippi State Personnel Board 1614 614 Motor Vehicle Commission 1839 839 North Mississippi Regional Center 3385 385 North Mississippi State Hospital 3384 384 Office of the Attorney General 1071 071 Office of the Secretary of State 1111 111 Office of the State Auditor 1155 155 Office of the State Treasurer 1171 171 Oil and Gas Board 1491 491 Pat Harrison Waterway District 9950 950 Pearl River Basin Development District 9955 955 Pearl River Valley Water Supply District 9970 970 Public Employees Retirement System 1531 531 Public Service Commission 1811 811 Real Estate Commission 1832 832 Soil and Water Conservation Commission 1486 486 South Mississippi Regional Center 3387 387 South Mississippi State Hospital 3391 391

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Tombigbee River Valley Water Management District 9980 980 Veterans Affairs Board 1731 731 Veterans’ Home Purchase Board 1734 734 Workers Compensation Commission 1521 521

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APPENDIX B Independent Contractor/Contract Worker Determination

Administrative Procedures

IRS Code stipulates that compensation paid to contractual workers is subject to the same federal employment tax requirements as that of salaried workers. The IRS categorizes contractual personnel as either independent contractors or employees for the purpose of withholding and paying employment taxes. Generally, while independent contractors are responsible for the proper payment of employment taxes for themselves and their employees, the contracting agency is responsible for withholding and paying employment taxes for those contract personnel determined not to be (nor working for) an independent contractor. The State of Mississippi has a more narrow definition of “employee” than that used in the IRS regulation. Mississippi statute states that an “employee” is any person legally occupying a position in state service. Mississippi Code Annotated § 25-9- 120(1). In order to prevent potential confusion caused by IRS terminology and Mississippi statutory terminology, contractual personnel determined not to be (nor working for) independent contractors will be referred to as “contract workers.” Therefore, contractual personnel who do not meet the definition of independent contractors should be classified as contractual workers and subject to the proper withholding of employment taxes. See Mississippi Code Annotated § 25-9- 120.

Agency and institutional heads are responsible for determining what work is being performed by contractual workers and ensuring that proper procedures are followed to comply with the IRS Code. Prior to entry and submission of the “Request for Contract Personnel Services Approval” form, each contractor should be classified using the criteria referenced below. If the contractor fails to qualify for classification as an independent contractor, then the contractor must be treated as a contractual worker. The department or agency should give consideration to the contract type. If the contractor is classified as a contractual worker, the agency is liable for the employer’s share of employment taxes. In budgeting for the contract, the department should allow for this additional cost.

Please refer to the Department of Finance and Administration for instructions concerning the accounting codes and proper withholding of federal and state income taxes, Social Security/Medicare matching funds and unemployment insurance taxes. Refer also to IRS Publication 15-A, 2015 Edition (available for downloading from http://www.irs.gov/pub/irs- pdf/p15a.pdf). The IRS has eleven main tests, organized into three main groups, to determine whether an employer-employee relationship exists, or whether the contractor is an independent contractor. These tests replace the IRS’s previous “Twenty Factors” test.

I. BEHAVIORAL CONTROL

Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of:

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Instructions the business gives to the worker.

An employee is generally subject to the business’ instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work:

• When and where to do the work. • What tools or equipment to use. • What workers to hire or to assist with the work. • Where to purchase supplies and services. • What work must be performed by a specified individual. • What order or sequence to follow.

The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker’s performance or instead has given up that right.

Training the business gives to the worker.

An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods.

II. FINANCIAL CONTROL

Facts that show whether the business has a right to control the business aspects of the worker’s job include:

The extent to which the worker has unreimbursed business expenses.

Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services they perform for their employer.

The extent of the worker’s investment.

An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contract status.

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The extent to which the worker makes his or her services available to the relevant market.

An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.

How the business pays the worker.

An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is often paid a flat fee or on a time and materials basis for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.

The extent to which the worker can realize a profit or loss.

An independent contractor can make a profit or loss.

III. TYPE OF RELATIONSHIP

Facts that show the parties’ type of relationship include:

Written contract describing the relationship the parties intended to create.

Whether or not the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay.

The permanency of the relationship.

If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.

The extent to which services performed by the worker are a key aspect of the regular business of the company.

If a worker provides services that are a key aspect of your regular business activity, it is more likely that you will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney’s work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship.

Note: IRS Help. If you want the IRS to determine whether or not a worker is an employee, file form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.

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APPENDIX C Required Clauses in Contracts for Services

Note: Words appearing in brackets “[ ]” may be substituted for the appropriate state agency reference.

APPLICABLE LAW

The contract shall be governed by and construed in accordance with the laws of the State of Mississippi, excluding its conflicts of laws, provisions, and any litigation with respect thereto shall be brought in the courts of the State. Contractor shall comply with applicable federal, state, and local laws and regulations.

(The following clause, or one substantially similar, shall be required in multi-term contractual agreements only.)

AVAILABILITY OF FUNDS

It is expressly understood and agreed that the obligation of the [State] to proceed under this agreement is conditioned upon the appropriation of funds by the Mississippi State Legislature and the receipt of state and/or federal funds. If the funds anticipated for the continuing fulfillment of the agreement are, at any time, not forthcoming or insufficient, either through the failure of the federal government to provide funds or of the State of Mississippi to appropriate funds or the discontinuance or material alteration of the program under which funds were provided or if funds are not otherwise available to the [State], the [State] shall have the right upon ten (10) working days written notice to Contractor, to terminate this agreement without damage, penalty, cost or expenses to the [State] of any kind whatsoever. The effective date of termination shall be as specified in the notice of termination.

REPRESENTATION REGARDING CONTINGENT FEES

Contractor represents that it has not retained a person to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except as disclosed in Contractor’s bid or proposal.

REPRESENTATION REGARDING GRATUITIES

The bidder, offeror, or Contractor represents that it has not violated, is not violating, and promises that it will not violate the prohibition against gratuities set forth in Section 6-204 (Gratuities) of the Mississippi Personal Service Contract Review Board Rules and Regulations.

PROCUREMENT REGULATIONS

The contract shall be governed by the applicable provisions of the Mississippi Personal Service Contract Review Board Rules and Regulations, a copy of which is available at 210 East Capitol,

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Suite 800, Jackson, Mississippi 39201 for inspection, or downloadable at http://www.mspb.ms.gov .

TRADE SECRETS, COMMERCIAL AND FINANCIAL INFORMATION It is expressly understood that Mississippi law requires that the provisions of this contract which contain the commodities purchased or the personal or professional services provided, the price to be paid, and the term of the contract shall not be deemed to be a trade secret or confidential commercial or financial information and shall be available for examination, copying, or reproduction.

COMPLIANCE WITH LAWS

Contractor understands that the [State] is an equal opportunity employer and therefore, maintains a policy which prohibits unlawful discrimination based on race, color, creed, sex, age, national origin, physical handicap, disability, genetic information, or any other consideration made unlawful by federal, state, or local laws. All such discrimination is unlawful and Contractor agrees during the term of the agreement that Contractor will strictly adhere to this policy in its employment practices and provision of services. Contractor shall comply with, and all activities under this agreement shall be subject to, all applicable federal, State of Mississippi, and local laws and regulations, as now existing and as may be amended or modified.

(Language substantially similar to the following clause shall be inserted in all Mississippi contracts requiring PSCRB approval.)

STOP WORK ORDER

(1) Order to Stop Work: The Procurement Officer, may, by written order to Contractor at any time, and without notice to any surety, require Contractor to stop all or any part of the work called for by this contract. This order shall be for a specified period not exceeding 90 days after the order is delivered to Contractor, unless the parties agree to any further period. Any such order shall be identified specifically as a stop work order issued pursuant to this clause. Upon receipt of such an order, Contractor shall forthwith comply with its terms and take all reasonable steps to minimize the occurrence of costs allocable to the work covered by the order during the period of work stoppage. Before the stop work order expires, or within any further period to which the parties shall have agreed, the Procurement Officer shall either:

(a) cancel the stop work order; or,

(b) terminate the work covered by such order as provided in the Termination for Default clause or the Termination for Convenience clause of this contract.

(2) Cancellation or Expiration of the Order: If a stop work order issued under this clause is canceled at any time during the period specified in the order, or if the period of the order or any extension thereof expires, Contractor shall have the right to resume work. An appropriate adjustment shall be made in the delivery schedule or Contractor price, or both, and the contract shall be modified in writing accordingly, if:

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(a) the stop work order results in an increase in the time required for, or in Contractor’s cost properly allocable to, the performance of any part of this contract; and,

(b) Contractor asserts a claim for such an adjustment within 30 days after the end of the period of work stoppage; provided that, if the Procurement Officer decides that the facts justify such action, any such claim asserted may be received and acted upon at any time prior to final payment under this contract.

(3) Termination of Stopped Work: If a stop work order is not canceled and the work covered by such order is terminated for default or convenience, the reasonable costs resulting from the stop work order shall be allowed by adjustment or otherwise.

(4) Adjustments of Price: Any adjustment in contract price made pursuant to this clause shall be determined in accordance with the Price Adjustment clause of this contract.

E-PAYMENT

Contractor agrees to accept all payments in United States currency via the State of Mississippi’s electronic payment and remittance vehicle. The agency agrees to make payment in accordance with Mississippi law on “Timely Payments for Purchases by Public Bodies,” which generally provides for payment of undisputed amounts by the agency within forty-five (45) days of receipt of invoice. Mississippi Code Annotated § 31-7-305.

E-VERIFICATION

If applicable, Contractor represents and warrants that it will ensure its compliance with the Mississippi Employment Protection Act of 2008, and will register and participate in the status verification system for all newly hired employees. Mississippi Code Annotated §§ 71-11-1 et seq. The term “employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, “status verification system” means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. Contractor agrees to maintain records of such compliance. Upon request of the State and after approval of the Social Security Administration or Department of Homeland Security when required, Contractor agrees to provide a copy of each such verification. Contractor further represents and warrants that any person assigned to perform services hereafter meets the employment eligibility requirements of all immigration laws. The breach of this agreement may subject Contractor to the following:

(1) termination of this contract for services and ineligibility for any state or public contract in Mississippi for up to three (3) years with notice of such cancellation/termination being made public;

(2) the loss of any license, permit, certification or other document granted to Contractor by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year; or,

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(3) both. In the event of such cancellation/termination, Contractor would also be liable for any additional costs incurred by the State due to Contract cancellation or loss of license or permit to do business in the State.

TRANSPARENCY

This contract, including any accompanying exhibits, attachments, and appendices, is subject to the “Mississippi Public Records Act of 1983,” and its exceptions. See Mississippi Code Annotated §§ 25-61-1 et seq. and Mississippi Code Annotated § 79-23-1. In addition, this contract is subject to the provisions of the Mississippi Accountability and Transparency Act of 2008. Mississippi Code Annotated §§ 27-104-151 et seq. Unless exempted from disclosure due to a court-issued protective order, a copy of this executed contract is required to be posted to the Department of Finance and Administration’s independent agency contract website for public access at http://www.transparency.mississippi.gov . Information identified by Contractor as trade secrets, or other proprietary information, including confidential vendor information or any other information which is required confidential by state or federal law or outside the applicable freedom of information statutes, will be redacted.

Contracts, except those for contract workers paid in SPAHRS or for Contractors exempted from this rule, must include the following language:

PAYMODE

Payments by state agencies using the State’s accounting system shall be made and remittance information provided electronically as directed by the State. These payments shall be deposited into the bank account of Contractor’s choice. The State may, at its sole discretion, require Contractor to electronically submit invoices and supporting documentation at any time during the term of this Agreement. Contractor understands and agrees that the State is exempt from the payment of taxes. All payments shall be in United States currency.

TERMINATION FOR CONVENIENCE

(1) Termination. The Agency Head or designee may, when the interests of the State so require, terminate this contract in whole or in part, for the convenience of the State. The Agency Head or designee shall give written notice of the termination to Contractor specifying the part of the contract terminated and when termination becomes effective.

(2) Contractor’s Obligations. Contractor shall incur no further obligations in connection with the terminated work and on the date set in the notice of termination Contractor will stop work to the extent specified. Contractor shall also terminate outstanding orders and subcontracts as they relate to the terminated work. Contractor shall settle the liabilities and claims arising out of the termination of subcontracts and orders connected with the terminated work. The Agency Head or designee may direct Contractor to assign Contractor’s right, title, and interest under terminated orders or subcontracts to the State. Contractor must still complete the work not terminated by the notice of termination and may incur obligations as are necessary to do so.

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TERMINATION FOR DEFAULT

(1) Default. If Contractor refuses or fails to perform any of the provisions of this contract with such diligence as will ensure its completion within the time specified in this contract or any extension thereof, or otherwise fails to timely satisfy the contract provisions, or commits any other substantial breach of this contract, the Agency Head or designee may notify Contractor in writing of the delay or nonperformance and if not cured in ten (10) days or any longer time specified in writing by the Agency Head or designee, such officer may terminate Contractor’s right to proceed with the contract or such part of the contract as to which there has been delay or a failure to properly perform. In the event of termination in whole or in part, the Agency Head or designee may procure similar supplies or services in a manner and upon terms deemed appropriate by the Agency Head or designee. Contractor shall continue performance of the contract to the extent it is not terminated and shall be liable for excess costs incurred in procuring similar goods or services.

(2) Contractor’s Duties. Notwithstanding termination of the contract and subject to any directions from the procurement officer, Contractor shall take timely, reasonable, and necessary action to protect and preserve property in the possession of Contractor in which the State has an interest.

(3) Compensation. Payment for completed services delivered and accepted by the State shall be at the contract price. The State may withhold from amounts due Contractor such sums as the Agency Head or designee deems to be necessary to protect the State against loss because of outstanding liens or claims of former lien holders and to reimburse the State for the excess costs incurred in procuring similar goods and services.

(4) Excuse for Nonperformance or Delayed Performance. Except with respect to defaults of subcontractors, Contractor shall not be in default by reason of any failure in performance of this contract in accordance with its terms (including any failure by Contractor to make progress in the prosecution of the work hereunder which endangers such performance) if Contractor has notified the Agency Head or designee within 15 days after the cause of the delay and the failure arises out of causes such as: acts of God; acts of the public enemy; acts of the State and any other governmental entity in its sovereign or contractual capacity; fires; floods; epidemics; quarantine restrictions; strikes or other labor disputes; freight embargoes; or unusually severe weather. If the failure to perform is caused by the failure of a subcontractor to perform or to make progress, and if such failure arises out of causes similar to those set forth above, Contractor shall not be deemed to be in default, unless the services to be furnished by the subcontractor were reasonably obtainable from other sources in sufficient time to permit Contractor to meet the contract requirements. Upon request of Contractor, the Agency Head or designee shall ascertain the facts and extent of such failure, and, if such officer determines that any failure to perform was occasioned by any one or more of the excusable causes, and that, but for the excusable cause, Contractor’s progress and performance would have met the terms of the contract, the delivery schedule shall be revised accordingly, subject to the rights of the State under the clause entitled (in fixed-price contracts, “Termination for Convenience,” in cost-reimbursement contracts, “Termination”).

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(As used in this Paragraph of this clause, the term “subcontractor” means subcontractor at any tier).

(5) Erroneous Termination for Default. If, after notice of termination of Contractor’s right to proceed under the provisions of this clause, it is determined for any reason that the contract was not in default under the provisions of this clause, or that the delay was excusable under the provisions of Paragraph (4) (Excuse for Nonperformance or Delayed Performance) of this clause, the rights and obligations of the parties shall, if the contract contains a clause providing for termination for convenience of the State, be the same as if the notice of termination had been issued pursuant to such clause.

(6) Additional Rights and Remedies. The rights and remedies provided in this clause are in addition to any other rights and remedies provided by law or under this contract.

TERMINATION UPON BANKRUPTCY

This contract may be terminated in whole or in part by [agency] upon written notice to Contractor, if Contractor should become the subject of bankruptcy or receivership proceedings, whether voluntary or involuntary, or upon the execution by Contractor of an assignment for the benefit of its creditors. In the event of such termination, Contractor shall be entitled to recover just and equitable compensation for satisfactory work performed under this contract, but in no case shall said compensation exceed the total contract price.

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APPENDIX D Required Clauses in IFBs, RFPs, and RFQs

The following clauses are required when soliciting bids, proposals, or statements of qualifications for personal or professional services. These requirements are found throughout the Regulations but are collected here for ease of reference.

Note: Words appearing in brackets “[ ]” may be substituted for the appropriate state agency reference.

APPLICABLE LAW

The contract shall be governed by and construed in accordance with the laws of the State of Mississippi, excluding its conflicts of laws, provisions, and any litigation with respect thereto shall be brought in the courts of the State. Contractor shall comply with applicable federal, state, and local laws and regulations.

(The following clauses, or those substantially similar, shall be required in IFBs, RFPs, or RFQs which seek multi-term contractual agreements.)

AVAILIBILITY OF FUNDS

It is expressly understood and agreed that the obligation of the [State] to proceed under this agreement is conditioned upon the appropriation of funds by the Mississippi State Legislature and the receipt of state and/or federal funds. If the funds anticipated for the continuing fulfillment of the agreement are, at any time, not forthcoming or insufficient, either through the failure of the federal government to provide funds or of the State of Mississippi to appropriate funds or the discontinuance or material alteration of the program under which funds were provided or if funds are not otherwise available to the [State], the [State] shall have the right upon ten (10) working days written notice to Contractor, to terminate this agreement without damage, penalty, cost or expenses to the [State] of any kind whatsoever. The effective date of termination shall be as specified in the notice of termination.

PROCUREMENT REGULATIONS

The contract shall be governed by the applicable provisions of the Mississippi Personal Service Contract Review Board Rules and Regulations, a copy of which is available at 210 East Capitol, Suite 800, Jackson, Mississippi 39201 for inspection, or downloadable at http://www.mspb.ms.gov .

COMPLIANCE WITH LAWS

Contractor understands that the [State] is an equal opportunity employer and therefore, maintains a policy which prohibits unlawful discrimination based on race, color, creed, sex, age, national origin, physical handicap, disability, genetic information, or any other consideration made unlawful by federal, state, or local laws. All such discrimination is unlawful and Contractor

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agrees during the term of the agreement that Contractor will strictly adhere to this policy in its employment practices and provision of services. Contractor shall comply with, and all activities under this agreement shall be subject to, all applicable federal, State of Mississippi, and local laws and regulations, as now existing and as may be amended or modified.

(Language substantially similar to the following clause shall be inserted in all IFBs, RFPs, and RFQs seeking contracts which require PSCRB approval.)

STOP WORK ORDER

(1) Order to Stop Work: The Procurement Officer, may, by written order to Contractor at any time, and without notice to any surety, require Contractor to stop all or any part of the work called for by this contract. This order shall be for a specified period not exceeding 90 days after the order is delivered to Contractor, unless the parties agree to any further period. Any such order shall be identified specifically as a stop work order issued pursuant to this clause. Upon receipt of such an order, Contractor shall forthwith comply with its terms and take all reasonable steps to minimize the occurrence of costs allocable to the work covered by the order during the period of work stoppage. Before the stop work order expires, or within any further period to which the parties shall have agreed, the Procurement Officer shall either:

(a) cancel the stop work order; or,

(b) terminate the work covered by such order as provided in the Termination for Default clause or the Termination for Convenience clause of this contract.

(2) Cancellation or Expiration of the Order: If a stop work order issued under this clause is canceled at any time during the period specified in the order, or if the period of the order or any extension thereof expires, Contractor shall have the right to resume work. An appropriate adjustment shall be made in the delivery schedule or Contractor price, or both, and the contract shall be modified in writing accordingly, if:

(a) the stop work order results in an increase in the time required for, or in Contractor’s properly allocable to, the performance of any part of this contract; and,

(b) Contractor asserts a claim for such an adjustment within 30 days after the end of the period of work stoppage; provided that, if the Procurement Officer decides that the facts justify such action, any such claim asserted may be received and acted upon at any time prior to final payment under this contract.

(3) Termination of Stopped Work: If a stop work order is not canceled and the work covered by such order is terminated for default or convenience, the reasonable costs resulting from the stop work order shall be allowed by adjustment or otherwise.

(4) Adjustments of Price: Any adjustment in contract price made pursuant to this clause shall be determined in accordance with the Price Adjustment clause of this contract.

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REPRESENTATION REGARDING CONTINGENT FEES

Contractor represents that it has not retained a person to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except as disclosed in Contractor’s bid or proposal.

REPRESENTATION REGARDING GRATUITIES

The bidder, offeror, or Contractor represents that it has not violated, is not violating, and promises that it will not violate the prohibition against gratuities set forth in Section 6-204 (Gratuities) of the Mississippi Personal Service Contract Review Board Rules and Regulations.

ACKNOWLEDGMENT OF AMENDMENTS

Bidders shall acknowledge receipt of any amendment to the solicitation by signing and returning the amendment with the bid, by identifying the amendment number and date in the space provided for this purpose on the bid form, or by letter. The acknowledgment must be received by the [agency] by the time and at the place specified for receipt of bids.

CERTIFICATION OF INDEPENDENT PRICE DETERMINATION

The bidder certifies that the prices submitted in response to the solicitation have been arrived at independently and without, for the purpose of restricting competition, any consultation, communication, or agreement with any other bidder or competitor relating to those prices, the intention to submit a bid, or the methods or factors used to calculate the prices bid.

Note: The following clause shall be completed and conspicuously placed within the response bid or proposal.

PROSPECTIVE CONTRACTOR’S REPRESENTATION REGARDING CONTINGENT FEES

The prospective Contractor represents as a part of such Contractor’s bid or proposal that such Contractor has/has not (use applicable word or words) retained any person or agency on a percentage, commission, or other contingent arrangement to secure this contract.

E-PAYMENT

Contractor agrees to accept all payments in United States currency via the State of Mississippi’s electronic payment and remittance vehicle. The agency agrees to make payment in accordance with Mississippi law on “Timely Payments for Purchases by Public Bodies,” which generally provides for payment of undisputed amounts by the agency within forty-five (45) days of receipt of invoice. Mississippi Code Annotated § 31-7-305.

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E-VERIFICATION

If applicable, Contractor represents and warrants that it will ensure its compliance with the Mississippi Employment Protection Act of 2008, and will register and participate in the status verification system for all newly hired employees. Mississippi Code Annotated §§ 71-11-1 et seq. The term “employee” as used herein means any person that is hired to perform work within the State of Mississippi. As used herein, “status verification system” means the Illegal Immigration Reform and Immigration Responsibility Act of 1996 that is operated by the United States Department of Homeland Security, also known as the E-Verify Program, or any other successor electronic verification system replacing the E-Verify Program. Contractor agrees to maintain records of such compliance. Upon request of the State and after approval of the Social Security Administration or Department of Homeland Security when required, Contractor agrees to provide a copy of each such verification. Contractor further represents and warrants that any person assigned to perform services hereafter meets the employment eligibility requirements of all immigration laws. The breach of this agreement may subject Contractor to the following:

(1) termination of this contract for services and ineligibility for any state or public contract in Mississippi for up to three (3) years with notice of such cancellation/termination being made public;

(2) the loss of any license, permit, certification or other document granted to Contractor by an agency, department or governmental entity for the right to do business in Mississippi for up to one (1) year; or,

(3) both. In the event of such cancellations/termination, Contractor would also be liable for any additional costs incurred by the State due to Contract cancellation or loss of license or permit to do business in the State.

TRANSPARENCY

This contract, including any accompanying exhibits, attachments, and appendices, is subject to the “Mississippi Public Records Act of 1983,” and its exceptions. See Mississippi Code Annotated §§ 25-61-1 et seq., and Mississippi Code Annotated § 79-23-1. In addition, this contract is subject to the provisions of the Mississippi Accountability and Transparency Act of 2008. Mississippi Code Annotated §§ 27-104-151 et seq. Unless exempted from disclosure due to a court-issued protective order, a copy of this executed contract is required to be posted to the Department of Finance and Administration’s independent agency contract website for public access at http://www.transparency.mississippi.gov . Information identified by Contractor as trade secrets, or other proprietary information, including confidential vendor information or any other information which is required confidential by state or federal law or outside the applicable freedom of information statutes, will be redacted.

TRADE SECRETS, COMMERCIAL AND FINANCIAL INFORMATION It is expressly understood that Mississippi law requires that the provisions of this contract which contain the commodities purchased or the personal or professional services provided, the price to be paid, and the term of the contract shall not be deemed to be a trade secret or confidential

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commercial or financial information and shall be available for examination, copying, or reproduction.

Contracts, except those for contract workers paid in SPAHRS or for Contractors exempted from this rule, must include the following language:

PAYMODE

Payments by state agencies using the State’s accounting system shall be made and remittance information provided electronically as directed by the State. These payments shall be deposited into the bank account of Contractor’s choice. The State may, at its sole discretion, require Contractor to electronically submit invoices and supporting documentation at any time during the term of this Agreement. Contractor understands and agrees that the State is exempt from the payment of taxes. All payments shall be in United States currency.

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APPENDIX E Clauses Available for Use in Service Contracts

Appendix E includes (alphabetically by title) various service contracting clauses which are available for use. Many clauses require the inclusion of additional information. A word or phrase in square brackets indicates that the information identified is to be inserted (e.g., [time], [date]). Clarifications of clauses are in parentheses within or at the end of the clause. These are discretionary and the agency is neither required to use them nor prohibited from using others which are not included in this appendix.

ALTERNATIVE BIDS

Bidders offering service delivery methods other than those permitted by the scope of work may submit a separate envelope clearly marked “Alternative Bid”. Alternative bids will be deemed non-responsive and will not be considered for award. All such responses will; however, be examined prior to award. Such examination may result in cancellation of all bids received to permit rewriting the scope of work to include the alternative method, or the alternative method may be considered for future requirements of the [agency].

ANTI-ASSIGNMENT/SUBCONTRACTING

Contractor acknowledges that it was selected by the State to perform the services required hereunder based, in part, upon Contractor’s special skills and expertise. Contractor shall not assign, subcontract, or otherwise transfer this agreement, in whole or in part, without the prior written consent of the State, which the State may, in its sole discretion, approve or deny without reason. Any attempted assignment or transfer of its obligations without such consent shall be null and void. No such approval by the State of any subcontract shall be deemed in any way to provide for the incurrence of any obligation of the State in addition to the total fixed price agreed upon in this agreement. Subcontracts shall be subject to the terms and conditions of this agreement and to any conditions of approval that the State may deem necessary. Subject to the foregoing, this agreement shall be binding upon the respective successors and assigns of the parties.

ANTITRUST

By entering into a contract, Contractor conveys, sells, assigns, and transfers to the [agency] all rights, titles, and interest it may now have, or hereafter acquire, under the antitrust laws of the United States and the State that relate to the particular goods or services purchased or acquired by the [agency] under said contract.

APPROVAL

It is understood that this contract requires approval by the Personal Service Contract Review Board. If this contract is not approved, it is void and no payment shall be made hereunder.

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ATTORNEY’S FEES AND EXPENSES

Subject to other terms and conditions of this agreement, in the event Contractor defaults in any obligations under this agreement, Contractor shall pay to the State all costs and expenses (including, without limitation, investigative fees, court costs, and attorney’s fees) incurred by the State in enforcing this agreement or otherwise reasonably related thereto. Contractor agrees that under no circumstances shall the customer be obligated to pay any attorney’s fees or costs of legal action to Contractor.

AUTHORITY TO CONTRACT

Contractor warrants: (a) that it is a validly organized business with valid authority to enter into this agreement; (b) that it is qualified to do business and in good standing in the State of Mississippi; (c) that entry into and performance under this agreement is not restricted or prohibited by any loan, security, financing, contractual, or other agreement of any kind; and, (d) notwithstanding any other provision of this agreement to the contrary, that there are no existing legal proceedings or prospective legal proceedings, either voluntary or otherwise, which may adversely affect its ability to perform its obligations under this agreement.

CHANGE IN SCOPE OF WORK

The [agency] may order changes in the work consisting of additions, deletions, or other revisions within the general scope of the contract. No claims may be made by Contractor that the scope of the project or of Contractor’s services has been changed, requiring changes to the amount of compensation to Contractor or other adjustments to the contract, unless such changes or adjustments have been made by written amendment to the contract signed by the [agency] and Contractor.

If Contractor believes that any particular work is not within the scope of the project, is a material change, or will otherwise require more compensation to Contractor, Contractor must immediately notify the [agency] in writing of this belief. If the [agency] believes that the particular work is within the scope of the contract as written, Contractor will be ordered to and shall continue with the work as changed and at the cost stated for the work within the contract.

CLAIMS BASED ON A PROCUREMENT OFFICER’S ACTIONS OR OMISSIONS

(1) Notice of Claim. If any action or omission on the part of a Procurement Officer or designee of such officer requiring performance changes within the scope of the contract constitutes the basis for a claim by Contractor for additional compensation, damages, or an extension of time for completion, Contractor shall continue with performance of the contract in compliance with the directions or orders of such officials, but by so doing, Contractor shall not be deemed to have prejudiced any claim for additional compensation, damages, or an extension of time for completion; provided:

(a) Contractor shall have given written notice to the Procurement Officer or designee of such officer:

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i. prior to the commencement of the work involved, if at that time Contractor knows of the occurrence of such action or omission;

ii. within 30 days after Contractor knows of the occurrence of such action or omission, if Contractor did not have such knowledge prior to the commencement of the work; or,

iii. within such further time as may be allowed by the Procurement Officer in writing.

This notice shall state that Contractor regards the act or omission as a reason which may entitle Contractor to additional compensation, damages, or an extension of time. The Procurement Officer or designee of such officer, upon receipt of such notice, may rescind such action, remedy such omission, or take such other steps as may be deemed advisable in the discretion of the Procurement Officer or designee of such officer;

(b) The notice required by subparagraph (a) of this paragraph describes, as clearly as practicable at the time, the reasons why Contractor believes that additional compensation, damages, or an extension of time may be remedies to which Contractor is entitled; and,

(c) Contractor maintains and, upon request, makes available to the Procurement Officer within a reasonable time, detailed records to the extent practicable, of the claimed additional costs or basis for an extension of time in connection with such changes.

(2) Limitation of Clause. Nothing contained herein shall excuse Contractor from compliance with any rules of law precluding state officers and Contractors from acting in collusion or bad faith in issuing or performing change orders which are clearly not within the scope of the contract.

(3) Adjustment of Price. Any adjustment in the contract price made pursuant to this clause shall be determined in accordance with the Price Adjustment clause of this contract.

INFORMATION DESIGNATED BY CONTRACTOR AS CONFIDENTIAL

Any disclosure of those materials, documents, data, and other information which Contractor has designated in writing as proprietary and confidential shall be subject to the provisions of Mississippi Code Annotated §§ 25-61-9 and 79-23-1. As provided in the contract, the personal or professional services to be provided, the price to be paid, and the term of the contract shall not be deemed to be a trade secret, or confidential commercial or financial information.

Any liability resulting from the wrongful disclosure of confidential information on the part of Contractor or its subcontractor shall rest with Contractor. Disclosure of any confidential information by Contractor or its subcontractor without the express written approval of the [agency] shall result in the immediate termination of this agreement.

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CONFIDENTIALITY

Notwithstanding any provision to the contrary contained herein, it is recognized that [agency] is a public agency of the State of Mississippi and is subject to the Mississippi Public Records Act. Mississippi Code Annotated §§ 25-61-1 et seq. If a public records request is made for any information provided to [agency] pursuant to the agreement and designated by the Contractor in writing as trade secrets or other proprietary confidential information, [agency] shall follow the provisions of Mississippi Code Annotated §§ 25-61-9 and 79-23-1 before disclosing such information. The [agency] shall not be liable to the Contractor for disclosure of information required by court order or required by law.

CONTRACTOR PERSONNEL

The [agency] shall, throughout the life of the contract, have the right of reasonable rejection and approval of staff or subcontractors assigned to the work by Contractor. If the [agency] reasonably rejects staff or subcontractors, Contractor must provide replacement staff or subcontractors satisfactory to the [agency] in a timely manner and at no additional cost to the [agency]. The day-to-day supervision and control of Contractor’s employees and subcontractors is the sole responsibility of Contractor.

COPYRIGHTS

Contractor agrees that [agency] shall determine the disposition of the title to and the rights under any copyright by Contractor or employees on copyrightable material first produced or composed under this agreement. Further, Contractor hereby grants to [agency] a royalty-free, nonexclusive, irrevocable license to reproduce, translate, publish, use and dispose of, and to authorize others to do so, all copyrighted (or copyrightable) work not first produced or composed by Contractor in the performance of this agreement, but which is incorporated in the material furnished under the agreement. This grant is provided that such license shall be only to the extent Contractor now has, or prior to the completion of full final settlements of agreement may acquire, the right to grant such license without becoming liable to pay compensation to others solely because of such grant.

DEBARMENT AND SUSPENSION

Contractor certifies to the best of its knowledge and belief, that it:

(1) is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transaction by any federal department or agency or any political subdivision or agency of the State of Mississippi;

(2) has not, within a three year period preceding this proposal, been convicted of or had a civil judgment rendered against it for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction;

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(3) has not, within a three year period preceding this proposal, been convicted of or had a civil judgment rendered against it for a violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;

(4) is not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state or local) with commission of any of these offenses enumerated in paragraphs two (2) and (3) of this certification; and,

(5) has not, within a three year period preceding this proposal, had one or more public transactions (federal, state, or local) terminated for cause or default.

DISCLOSURE OF CONFIDENTIAL INFORMATION

In the event that either party to this agreement receives notice that a third party requests divulgence of confidential or otherwise protected information and/or has served upon it a subpoena or other validly issued administrative or judicial process ordering divulgence of confidential or otherwise protected information that party shall promptly inform the other party and thereafter respond in conformity with such subpoena to the extent mandated by law. This section shall survive the termination or completion of this agreement. The parties agree that this section is subject to and superseded by Mississippi Code Annotated §§ 25-61-1 et seq.

EXCEPTIONS TO CONFIDENTIAL INFORMATION

Contractor and the State shall not be obligated to treat as confidential and proprietary any information disclosed by the other party (“disclosing party”) which:

(1) is rightfully known to the recipient prior to negotiations leading to this agreement, other than information obtained in confidence under prior engagements;

(2) is generally known or easily ascertainable by nonparties of ordinary skill in the business of the customer;

(3) is released by the disclosing party to any other person, firm, or entity (including governmental agencies or bureaus) without restriction;

(4) is independently developed by the recipient without any reliance on confidential information;

(5) is or later becomes part of the public domain or may be lawfully obtained by the State or Contractor from any nonparty; or,

(6) is disclosed with the disclosing party’s prior written consent.

ERRORS IN EXTENSION

If the unit price and the extension price are at variance, the unit price shall prevail.

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FAILURE TO DELIVER

In the event of failure of Contractor to deliver services in accordance with the contract terms and conditions, the [agency], after due oral or written notice, may procure the services from other sources and hold Contractor responsible for any resulting additional purchase and administrative costs. This remedy shall be in addition to any other remedies that the [agency] may have.

FAILURE TO ENFORCE

Failure by the [agency] at any time to enforce the provisions of the contract shall not be construed as a waiver of any such provisions. Such failure to enforce shall not affect the validity of the contract or any part thereof or the right of the [agency] to enforce any provision at any time in accordance with its terms.

FINAL PAYMENT

Upon satisfactory completion of the work performed under this contract, as a condition before final payment under this contract, or as a termination settlement under this contract, Contractor shall execute and deliver to the [agency] a release of all claims against the State arising under, or by virtue of, the contract, except claims which are specifically exempted by Contractor to be set forth therein. Unless otherwise provided in this contract, by state law, or otherwise expressly agreed to by the parties in this contract, final payment under the contract or settlement upon termination of this contract shall not constitute waiver of the State’s claims against Contractor under this contract.

FORCE MAJEURE

Each party shall be excused from performance for any period and to the extent that it is prevented from performing any obligation or service, in whole or in part, as a result of causes beyond the reasonable control and without the fault or negligence of such party and/or its subcontractors. Such acts shall include without limitation acts of God, strikes, lockouts, riots, acts of war, epidemics, governmental regulations superimposed after the fact, fire, earthquakes, floods, or other natural disasters (“force majeure events”). When such a cause arises, Contractor shall notify the State immediately in writing of the cause of its inability to perform, how it affects its performance, and the anticipated duration of the inability to perform. Delays in delivery or in meeting completion dates due to force majeure events shall automatically extend such dates for a period equal to the duration of the delay caused by such events, unless the State determines it to be in its best interest to terminate the agreement.

HIPAA COMPLIANCE

Contractor agrees to comply with the “Administrative Simplification” provisions of the Health Insurance Portability and Accountability Act of 1996, including electronic data interchange, code sets, identifiers, security, and privacy provisions, as may be applicable to the services under this contract.

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INDEMNIFICATION

To the fullest extent allowed by law, Contractor shall indemnify, defend, save and hold harmless, protect, and exonerate the agency, its commissioners, board members, officers, employees, agents, and representatives, and the State of Mississippi from and against all claims, demands, liabilities, suits, actions, damages, losses, and costs of every kind and nature whatsoever including, without limitation, court costs, investigative fees and expenses, and attorney’s fees, arising out of or caused by Contractor and/or its partners, principals, agents, employees and/or subcontractors in the performance of or failure to perform this agreement. In the State’s sole discretion, Contractor may be allowed to control the defense of any such claim, suit, etc. In the event Contractor defends said claim, suit, etc., Contractor shall use legal counsel acceptable to the State. Contractor shall be solely responsible for all costs and/or expenses associated with such defense, and the State shall be entitled to participate in said defense. Contractor shall not settle any claim, suit, etc. without the State’s concurrence, which the State shall not unreasonably withhold.

INDEMNIFICATION (for contracts between two state agencies or entities)

Contractor’s tort liability, as an entity of the State of Mississippi, is determined and controlled in accordance with Mississippi Code Annotated §§ 11-46-1 et seq., including all defenses and exceptions contained therein. Nothing in this agreement shall have the effect of changing or altering this liability or of eliminating any defense available to the State under statute.

INDEPENDENT CONTRACTOR STATUS

Contractor shall, at all times, be regarded as and shall be legally considered an independent contractor and shall at no time act as an agent for the State. Nothing contained herein shall be deemed or construed by the State, Contractor, or any third party as creating the relationship of principal and agent, master and servant, partners, joint ventures, employer and employee, or any similar such relationship between the State and Contractor. Neither the method of computation of fees or other charges, nor any other provision contained herein, nor any acts of the State or Contractor hereunder creates, or shall be deemed to create a relationship other than the independent relationship of the State and Contractor. Contractor’s personnel shall not be deemed in any way, directly or indirectly, expressly or by implication, to be employees of the State. Neither Contractor nor its employees shall, under any circumstances, be considered servants, agents, or employees of the [agency], and the [agency] shall be at no time legally responsible for any negligence or other wrongdoing by Contractor, its servants, agents, or employees. The [agency] shall not withhold from the contract payments to Contractor any federal or state unemployment taxes, federal or state income taxes, Social Security tax, or any other amounts for benefits to Contractor. Further, the [agency] shall not provide to Contractor any insurance coverage or other benefits, including Worker’s Compensation, normally provided by the State for its employees.

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INFRINGEMENT INDEMNIFICATION

Contractor warrants that the materials and deliverables provided to the customer under this agreement, and their use by the customer, will not infringe or constitute an infringement of any copyright, patent, trademark, or other proprietary right. Should any such items become the subject of an infringement claim or suit, Contractor shall defend the infringement action and/or obtain for the customer the right to continue using such items. Should Contractor fail to obtain for the customer the right to use such items, Contractor shall suitably modify them to make them non-infringing or substitute equivalent software or other items at Contractor’s expense. In the event the above remedial measures cannot possibly be accomplished, and only in that event, Contractor may require the customer to discontinue using such items, in which case Contractor will refund to the customer the fees previously paid by the customer for the items the customer may no longer use, and shall compensate the customer for the lost value of the infringing part to the phase in which it was used, up to and including the contract price for said phase. Said refund shall be paid within ten (10) working days of notice to the customer to discontinue said use.

Scope of Indemnification: Provided that the State promptly notifies Contractor in writing of any alleged infringement claim of which it has knowledge, Contractor shall defend, at its own expense, the State against, and pay all costs, damages and attorney fees that a court finally awards for infringement based on the programs and deliverables provided under this agreement.

INSURANCE

Contractor represents that it will maintain workers’ compensation insurance which shall inure to the benefit of all Contractor’s personnel provided hereunder, comprehensive general liability or professional liability insurance, with minimum limits of $_________ per occurrence and fidelity bond insurance with minimum limits of $ . All general liability, professional liability and fidelity bond insurance will provide coverage to the [agency] as an additional insured. The [agency] reserves the right to request from carriers, certificates of insurance regarding the required coverage. Insurance carriers must be licensed or hold a Certificate of Authority from the Mississippi Department of Insurance.

INTEGRATED AGREEMENT/MERGER

This agreement, including all contract documents, represents the entire and integrated agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, irrespective of whether written or oral. This agreement may be altered, amended, or modified only by a written document executed by the State and Contractor. Contractor acknowledges that it has thoroughly read all contract documents and has had the opportunity to receive competent advice and counsel necessary for it to form a full and complete understanding of all rights and obligations herein. Accordingly, this agreement shall not be construed or interpreted in favor of or against the State or Contractor on the basis of draftsmanship or preparation hereof.

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LIQUIDATED DAMAGES

With Termination for Default Clause: The following clause is authorized for use in service contracts when it is difficult to determine with reasonable accuracy the amount of damage to the State due to delays caused by late Contractor performance or nonperformance and the contract contains the Termination for Default clause set forth in Section 4-101.05.

Liquidated Damages

When Contractor is given notice of delay or nonperformance as specified in Paragraph (1) (Default) of the Termination for Default clause of this contract and fails to cure in the time specified, Contractor shall be liable for damages for delay in the amount of $___________ per calendar day from date set for cure until either the State reasonably obtains similar services if Contractor is terminated for default, or until Contractor provides the services if Contractor is not terminated for default. To the extent that Contractor's delay or nonperformance is excused under Paragraph (4) (Excuse for Nonperformance or Delayed Performance) of the Termination for Default clause of this contract, liquidated damages shall not be due the State. Contractor remains liable for damages caused other than by delay.

In Other Situations: If the contract will not have a Termination for Default clause or the liquidated damages are to be assessed for reasons other than delay, the head of a purchasing agency may approve the use of any appropriate liquidated damages clause.

MODIFICATION OR RENEGOTIATION

This agreement may be modified only by written agreement signed by the parties hereto. The parties agree to renegotiate the agreement if federal and/or state revisions of any applicable laws or regulations make changes in this agreement necessary.

NO LIMITATION OF LIABILITY

Nothing in this agreement shall be interpreted as excluding or limiting any tort liability of Contractor for harm caused by the intentional or reckless conduct of Contractor or for damages incurred through the negligent performance of duties by Contractor or the delivery of products that are defective due to negligent construction.

NOTICES

All notices required or permitted to be given under this agreement must be in writing and personally delivered or sent by certified United States mail, postage prepaid, return receipt requested, to the party to whom the notice should be given at the address set forth below. Notice shall be deemed given when actually received or when refused. The parties agree to promptly notify each other in writing of any change of address.

For Contractor: name, title, Contractor, address

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For the agency: name, title, agency, address

NON-SOLICITATION OF EMPLOYEES

Each party to this agreement agrees not to employ or to solicit for employment, directly or indirectly, any persons in the full-time or part-time employment of the other party until at least six (6) months after this agreement terminates unless mutually agreed to in writing by the State and Contractor.

ORAL STATEMENTS

No oral statement of any person shall modify or otherwise affect the terms, conditions, or specifications stated in this contract. All modifications to the contract must be made in writing by the [agency] and agreed to by Contractor.

OWNERSHIP OF DOCUMENTS AND WORK PAPERS

[Agency] shall own all documents, files, reports, work papers and working documentation, electronic or otherwise, created in connection with the project which is the subject of this agreement, except for Contractor’s internal administrative and quality assurance files and internal project correspondence. Contractor shall deliver such documents and work papers to [agency] upon termination or completion of the agreement. The foregoing notwithstanding, Contractor shall be entitled to retain a set of such work papers for its files. Contractor shall be entitled to use such work papers only after receiving written permission from [agency] and subject to any copyright protections.

PATENTS AND ROYALTIES

Contractor covenants to save, defend, keep harmless, and indemnify the [agency] and all of its officers, departments, agencies, agents, and employees from and against all claims, loss, damage, injury, fines, penalties, and cost--including court costs and attorney’s fees, charges, liability, and exposure, however caused--for or on account of any copyright or patented or unpatented invention, process, or article manufactured or used in the performance of the contract, including its use by the [agency]. If Contractor uses any design, device, or material covered by patent or copyright, it is mutually agreed and understood without exception that the contract price includes all royalties or costs arising from the use of such design, device, or materials in any way in the work.

PRICE ADJUSTMENT

(1) Price Adjustment Methods. Any adjustments in contract price, pursuant to a clause in this contract, shall be made in one or more of the following ways:

(a) by agreement on a fixed price adjustment before commencement of the additional performance;

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(b) by unit prices specified in the contract;

(c) by the costs attributable to the event or situation covered by the clause, plus appropriate profit or fee, all as specified in the contract; or,

(d) by the price escalation clause.

(2) Submission of Cost or Pricing Data. Contractor shall provide cost or pricing data for any price adjustments subject to the provisions of Section 3-403 (Cost or Pricing Data) of the Mississippi Personal Service Contract Review Board Rules and Regulations.

PRIORITY

The contract consists of this agreement, the request for proposal [number] (hereinafter “RFP” and attached as Schedule [ ]), and the response proposal by [Contractor] dated [date] (hereinafter “Proposal” and attached as Schedule [ ]). Any ambiguities, conflicts or questions of interpretation of this contract shall be resolved by first, reference to this agreement and, if still unresolved, by reference to the RFP and, if still unresolved, by reference to the proposal. Omission of any term or obligation from this agreement or attached Schedules [ ] or [ ] shall not be deemed an omission from this contract if such term or obligation is provided for elsewhere in this contract.

QUALITY CONTROL

Contractor shall institute and maintain throughout the contract period a properly documented quality control program designed to ensure that the services are provided at all times and in all respects in accordance with the contract. The program shall include providing daily supervision and conducting frequent inspections of Contractor’s staff and ensuring that accurate records are maintained describing the disposition of all complaints. The records so created shall be open to inspection by the [agency].

RECORD RETENTION AND ACCESS TO RECORDS

Provided Contractor is given reasonable advance written notice and such inspection is made during normal business hours of Contractor, the State or any duly authorized representatives shall have unimpeded, prompt access to any of Contractor’s books, documents, papers, and/or records which are maintained or produced as a result of the project for the purpose of making audits, examinations, excerpts, and transcriptions. All records related to this agreement shall be retained by Contractor for three (3) years after final payment is made under this agreement and all pending matters are closed; however, if any audit, litigation or other action arising out of or related in any way to this project is commenced before the end of the three (3) year period, the records shall be retained for one (1) year after all issues arising out of the action are finally resolved or until the end of the three (3) year period, whichever is later.

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RECOVERY OF MONEY

Whenever, under the contract, any sum of money shall be recoverable from or payable by Contractor to the [agency], the same amount may be deducted from any sum due to Contractor under the contract or under any other contract between Contractor and the [agency]. The rights of the [agency] are in addition and without prejudice to any other right the [agency] may have to claim the amount of any loss or damage suffered by the [agency] on account of the acts or omissions of Contractor.

RENEWAL OF CONTRACT

(Use this clause when the Contractor cannot decline a renewal.)

The contract may be renewed at the discretion of the agency upon written notice to Contractor at least [number] days prior to each contract anniversary date for a period of [number] successive one-year periods under the same prices, terms, and conditions as in the original contract. The total number of renewal years permitted shall not exceed [number].

(Use this clause when the Contractor has the right to decline the renewal.)

Upon written agreement of both parties at least [number] days prior to each contract anniversary date, the contract may be renewed by the [agency] for a period of [number] successive one-year period(s) under the same prices, terms, and conditions as in the original contract. The total number of renewal years permitted shall not exceed [number].

REQUIREMENTS CONTRACT

During the period of the contract, Contractor shall provide all the service described in the contract. Contractor understands and agrees that this is a requirements contract and that the [agency] shall have no obligation to Contractor if no services are required. Any quantities that are included in the scope of work reflect the current expectations of the [agency] for the period of the contract. The amount is only an estimate and Contractor understands and agrees that the [agency] is under no obligation to Contractor to buy any amount of the services as a result of having provided this estimate or of having any typical or measurable requirement in the past. Contractor further understands and agrees that the [agency] may require services in an amount less than or in excess of the estimated annual contract amount and that the quantity actually used, whether in excess of the estimate or less than the estimate, shall not give rise to any claim for compensation other than the total of the unit prices in the contract for the quantity actually used.

RIGHT TO AUDIT

Contractor shall maintain such financial records and other records as may be prescribed by the [agency] or by applicable federal and state laws, rules, and regulations. Contractor shall retain these records for a period of three years after final payment, or until they are audited by the [agency], whichever event occurs first. These records shall be made available during the term of

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the contract and the subsequent three-year period for examination, transcription, and audit by the Mississippi State Auditor’s Office, its designees, or other authorized bodies.

RIGHT TO INSPECT FACILITY

The State may, at reasonable times, inspect the place of business of a Contractor or any subcontractor which is related to the performance of any contract awarded by the State.

SEVERABILITY

If any part of this agreement is declared to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision of the agreement that can be given effect without the invalid or unenforceable provision, and to this end the provisions hereof are severable. In such event, the parties shall amend the agreement as necessary to reflect the original intent of the parties and to bring any invalid or unenforceable provisions in compliance with applicable law.

STATE PROPERTY

Contractor will be responsible for the proper custody and care of any state-owned property furnished for Contractor’s use in connection with the performance of this agreement. Contractor will reimburse the State for any loss or damage, normal wear and tear excepted.

THIRD PARTY ACTION NOTIFICATION

Contractor shall give the customer prompt notice in writing of any action or suit filed, and prompt notice of any claim made against Contractor by any entity that may result in litigation related in any way to this agreement.

UNSATISFACTORY WORK

If, at any time during the contract term, the service performed or work done by Contractor is considered by the [agency] to create a condition that threatens the health, safety, or welfare of the citizens and/or employees of the State of Mississippi, Contractor shall, on being notified by the [agency], immediately correct such deficient service or work. In the event Contractor fails, after notice, to correct the deficient service or work immediately, the [agency] shall have the right to order the correction of the deficiency by separate contract or with its own resources at the expense of C ontractor.

VARIATIONS IN ESTIMATED QUANTITIES

Definite Quantity Contracts: The following clause is authorized for use in definite quantity service contracts:

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VARIATION IN QUANTITY

Upon the agreement of the parties, the quantity of services specified in this contract may be increased by a maximum of ten percent provided:

(1) the unit prices will remain the same (except for any price adjustments otherwise applicable); and,

(2) the Procurement Officer makes a written determination that such an increase will either be more economical than awarding another contract, or that it would not be practical to award another contract.

Indefinite Quantity Contracts: No clause is provided here because, in indefinite quantity contracts, the flexibility as to the State's obligation to order and Contractor's obligation to deliver should be designed to meet using agency needs while making the contract as attractive as possible to potential Contractors, thereby attempting to obtain maximum practicable competition in order to assure the best economy for the State of Mississippi; however, in each case, the contract should State:

(1) the minimum quantity, if any, the State is obligated to order and C ontractor to provide;

(2) whether there is a quantity the State expects to order and how this quantity relates to any minimum and maximum quantities that may be ordered under the contract;

(3) any maximum quantity the State may order and Contractor must provide; and,

(4) whether the State is obligated to order its actual requirements under the contract, or in the case of a multiple award as defined in Section 3-503 (Multiple Source Contracting), that the State will order its actual requirements from Contractors under the multiple award subject to any minimum or maximum quantity stated.

WAIVER

No delay or omission by either party to this agreement in exercising any right, power, or remedy hereunder or otherwise afforded by contract, at law, or in equity shall constitute an acquiescence therein, impair any other right, power or remedy hereunder or otherwise afforded by any means, or operate as a waiver of such right, power, or remedy. No waiver by either party to this agreement shall be valid unless set forth in writing by the party making said waiver. No waiver of or modification to any term or condition of this agreement will void, waive, or change any other term or condition. No waiver by one party to this agreement of a default by the other party will imply, be construed as or require waiver of future or other defaults.

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APPENDIX F Clauses Available for Use in Solicitations for Bids, Proposals, or Statements of Qualifications

Unless otherwise noted, the clauses are designed to be used under competitive sealed bidding (IFB) procedures. To alter a clause so that it can be used under competitive negotiation (RFP) procedures, change the terms “bid” and “bidder” to “offer” and “offeror,” “bid form” to “proposal form,” “invitation for bid” to “request for proposal,” and so forth. Terms may also be changed for use with SOQs. These clauses are discretionary and the agency is neither required to use them nor prohibited from using others which are not included in this appendix.

ADDITIONAL INFORMATION

Questions about the contract portions of the bid document must be submitted in writing to [name of contact person] at [address/fax machine number/email address]. Questions concerning the technical portions of the bid document should be directed to [name of contact person] at [address/fax machine number/email address]. Bidders are cautioned that any statements made by the contract or the technical contact person that materially change any portion of the bid document shall not be relied upon unless subsequently ratified by a formal written amendment to the bid document.

BID ACCEPTANCE PERIOD

The original and [number] copies of the bid form, [number] copies total, shall be signed and submitted in a sealed envelope or package to [place for receipt of bids] no later than the time and date specified for receipt of bids. Timely submission of the bid form is the responsibility of the bidder. Bids received after the specified time shall be rejected and returned to the bidder unopened. The envelope or package shall be marked with the bid opening date and time, and the number of the invitation for bid. The time and date of receipt shall be indicated on the envelope or package by [department receiving bids]. Each page of the bid form and all attachments shall be identified with the name of the bidder.

Failure to submit a bid on the bid form provided shall be considered just cause for rejection of the bid. Modifications or additions to any portion of the bid document may be cause for rejection of the bid. The [agency] reserves the right to decide, on a case-by-case basis, whether to reject a bid with modifications or additions as non-responsive. As a precondition to bid acceptance, the [agency] may request the bidder to withdraw or modify those portions of the bid deemed non-responsive that do not affect quality, quantity, price, or delivery of the service.

(Non-responsive portions of the bid that do not affect service quality, quantity, price or delivery may be, for example, clauses that specify the State in which litigation is to be brought or that provide for high interest charges for late payment.)

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BID WITHDRAWAL

If the price bid is substantially lower than those of other bidders, a mistake may have been made. A bidder may withdraw its bid from consideration if certain conditions are met:

(1) The bid is submitted in good faith

(2) The price bid is substantially lower than those of other bidders because of a mistake.

(3) The mistake is a clerical error, not an error of judgment.

(4) Objective evidence drawn from original work papers, documents, and other materials used in the preparation of the bid demonstrates clearly that the mistake was an unintentional error in arithmetic or an unintentional omission of a quantity of labor or material.

To withdraw a bid that includes a clerical error after bid opening, the bidder must give notice in writing to the [agency] of claim of right to withdraw a bid. Within two business days after the bid opening, the bidder requesting withdrawal must provide to the [agency] all original work papers, documents, and other materials used in the preparation of the bid.

A bidder may also withdraw a bid, prior to the time set for the opening of bids, by simply making a request in writing to the [agency]. No explanation is required.

A bidder may also withdraw a bid if the [agency] fails to award or issue a notice of intent to award the bid within [time period] after the date fixed for the opening of bids.

No bidder who is permitted to withdraw a bid shall, for compensation, supply any material or labor to or perform any subcontract or other work for the person to whom the contract is awarded, or otherwise benefit from the contract.

No partial withdrawals of a bid are permitted after the time and date set for the bid opening; only complete withdrawals are permitted.

BIDDER CERTIFICATION

The bidder agrees that submission of a signed bid form is certification that the bidder will accept an award made to it as a result of the submission.

BIDDER INVESTIGATIONS

Before submitting a bid, each bidder shall make all investigations and examinations necessary to ascertain all site conditions and requirements affecting the full performance of the contract and to verify any representations made by the [agency] upon which the bidder will rely. If the bidder receives an award as a result of its bid submission, failure to have made such investigations and examinations will in no way relieve the bidder from its obligation to comply in every detail with all provisions and requirements of the contract documents, nor will a plea of ignorance of such

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conditions and requirements be accepted as a basis for any claim whatsoever for additional compensation.

CERTIFICATES AND LICENSES

Contractor shall provide notarized copies of all valid licenses and certificates required for performance of the work. The notarized copies shall be delivered to the [agency] no later than ten days after Contractor receives the notice of award from the [agency]. Current notarized copies of licenses and certificates shall be provided to the [agency] within twenty-four hours of demand at any time during the contract term. Licenses and certificates required for this contract include, by way of illustration and not limitation, the following:

(1) A business license valid in [agency].

(2) A professional license or certificate in the field of [specialty area].

(3) [Any additional licenses that may be required to be held by architects, health professionals, pesticide or herbicide application technicians, asbestos removal C ontractors, etc.].

DEBARMENT

By submitting a bid, the bidder certifies that it is not currently debarred from submitting bids for contracts issued by any political subdivision or agency of the State, and that it is not an agent of a person or entity that is currently debarred from submitting bids for contract issued by any political subdivision or agency of the State.

EXCEPTIONS

Bidders taking exception to any part or section of the solicitation shall indicate such exceptions on the bid form. Failure to indicate any exception will be interpreted as the bidder’s intent to comply fully with the requirements as written. Conditional or qualified bids, unless specifically allowed, shall be subject to rejection in whole or in part.

EXPENSES INCURRED IN PREPARING BID

The [agency] accepts no responsibility for any expense incurred by the bidder in the preparation and presentation of a bid. Such expenses shall be borne exclusively by the bidder.

INFORMALITIES AND IRREGULARITIES

The [agency] has the right to waive minor defects or variations of a bid from the exact requirements of the specifications that do not affect the price, quality, quantity, delivery, or performance time of the services being procured. If insufficient information is submitted by a bidder with the bid for the [agency] to properly evaluate the bid, the [agency] has the right to require such additional information as it may deem necessary after the time set for receipt of

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bids, provided that the information requested does not change the price, quality, quantity, delivery, or performance time of the services being procured.

(Information requested may include, for example, a copy of business or professional licenses, or a work schedule.)

LATE SUBMISSIONS

A bid received at the place designated in the solicitation for receipt of bids after the exact time specified for receipt will not be considered unless it is the only bid received, or it is received before award is made and was sent by registered or certified mail not later than the fifth calendar day before the date specified for receipt of bids. It must be determined by the [agency] that the late receipt was due solely to mishandling by the [agency] after receipt at the specified address.

The only acceptable evidence to establish the date of mailing of a late bid is the U.S. Postal Service postmark on the wrapper or on the original receipt from the U.S. Postal Service. If the postmark does not show a legible date, the contents of the envelope or package shall be processed as if mailed late. “Postmark” means a printed, stamped, or otherwise placed impression, exclusive of a postage meter impression, that is readily identifiable without further action as having been supplied and affixed by the U.S. Postal Service on the date of mailing. Bidders should request postal clerks to place a hand cancellation postmark (often called a bull’s eye) on both the receipt and the envelope or wrapper.

The only acceptable evidence to establish the time of receipt at the office identified for bid opening is the time and date stamp of that office on the bid wrapper or other documentary evidence of receipt used by that office.

NONCONFORMING TERMS AND CONDITIONS

A bid response that includes terms and conditions that do not conform to the terms and conditions in the bid document is subject to rejection as non-responsive. The [agency] reserves the right to permit the bidder to withdraw nonconforming terms and conditions from its bid response prior to a determination by the [agency] of non-responsiveness based on the submission of nonconforming terms and conditions.

PRE-BID CONFERENCE (MANDATORY)

A mandatory pre-bid conference will be held at [time] on [date] at [location]. All interested parties are required to attend. The purpose of the pre-bid conference is to allow potential bidders an opportunity to present questions to staff and obtain clarification of the requirements of the bid documents. Because the [agency] considers the conference to be critical to understanding the bid requirements, attendance is mandatory in order to qualify as a bidder. Minutes of the conference [will/will not] be published.

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PRE-BID CONFERENCE (OPTIONAL)

An optional pre-bid conference will be held at [time] on [date] at [location]. All interested parties are urged to attend. The purpose of the pre-bid conference is to allow potential bidders an opportunity to present questions to staff and obtain clarification of the requirements of the bid documents. Minutes of the conference [will/will not] be published.

QUALIFICATIONS OF BIDDERS

The bidder may be required before the award of any contract to show to the complete satisfaction of the [agency] that it has the necessary facilities, ability, and financial resources to provide the service specified therein in a satisfactory manner. The bidder may also be required to give a past history and references in order to satisfy the [agency] in regard to the bidder’s qualifications. The [agency] may make reasonable investigations deemed necessary and proper to determine the ability of the bidder to perform the work, and the bidder shall furnish to the [agency] all information for this purpose that may be requested. The [agency] reserves the right to reject any bid if the evidence submitted by, or investigation of, the bidder fails to satisfy the [agency] that the bidder is properly qualified to carry out the obligations of the contract and to complete the work described therein. Evaluation of the bidder’s qualifications shall include:

(1) the ability, capacity, skill, and financial resources to perform the work or provide the service required;

(2) the ability of the bidder to perform the work or provide the service promptly or within the time specified, without delay or interference;

(3) the character, integrity, reputation, judgment, experience, and efficiency of the bidder; and,

(4) the quality of performance of previous contracts or services.

SURETY REQUIRED

(1) Bid surety: A bid bond, cashier’s check, or certified check in the amount of [percentage] of the amount of the bid made payable to the [agency] shall accompany each bid. The bid surety of all bidders shall be retained until after the award of the contract is made. The bid surety of the successful bidder shall be retained until the posting of a performance bond. The failure of the bidder to accept an award and file acceptable performance and payment bonds within fifteen days after award shall be just cause for cancellation of the award and the forfeiture of the bid surety to the [agency] as liquidated damages. Award may then be made to the next lowest responsive and responsible bidder.

(2) Performance surety: A performance bond in the amount of 100 percent of the bid shall be required of the successful bidder to ensure satisfactory completion of the work. The bond shall be a corporate surety bond issued by a surety company authorized to do business in the State of Mississippi.

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(3) Payment surety: A payment bond in the amount of 100 percent of the bid shall be required of the successful bidder to guarantee payment of all persons who have and fulfill contracts with Contractor for performing labor or providing equipment or material in the performance of the work provided for in the contract. The bond shall be a corporate surety bond issued by a surety company authorized to do business in the State of Mississippi.

(4) Alternative surety: A certified check for cash escrow deposit in the face amount of the contract such as a personal bond, property bond, or a bank or savings and loan association letter of credit may be tendered in lieu of a bid, payment, or performance bond subject to approval by the [agency] attorney.

(5) In no event shall the requirement for a bond be waived.

PUBLIC EMPLOYEES RETIREMENT SYSTEM PUBLIC EMPLOYEES RETIREMENT SYSTEM

Part 210 Regulations for Retirement Plans Administered by the Board of Trustees

Chapter 01 Classification and Reporting of State Employees

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to define the term “state employee” for purposes of reporting for Social Security and retirement annuity coverage. It also clarifies PERS’ responsibilities for collecting and reporting Social Security Contributions.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Definition of State Employee for Social Security and Retirement Annuity Purposes State employees are hereby defined as those who are under the control and direction of a state department, institution or agency. Each employee so covered shall be paid by the agency from funds under its control, or on the basis of budgets prepared by the agency, whether the funds involved are appropriated, donated or secured from Federal Government or from local units of state government, but which funds are mingled with the general funds or budgets of the agency, or into any fund of the State Treasury; provided that employees who are paid directly and solely from funds of a unit of local government, which funds are appropriated specifically for the operation of a department under the supervision, direction and jurisdiction of a state institution or agency, and which funds are expended on the basis of budgets prepared by the state agency and adopted by the local unit of government, shall be considered as state employees. Employees paid directly and solely from funds of a municipality or county or other political subdivision, not coming within the provisions set forth above, shall be classified as employees of local units of government. Employees paid directly and solely from federal funds by federal checks shall be classified as federal employees and shall not be included in Social Security coverage or state retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 102 Reporting of State Employees for Social Security Contributions

1. Reporting for periods prior to January 1, 1987

Prior to December 31, 1986, the state department, institution or agency which has the control and direction of state employees is responsible for the collection and remittance of the employees’ contributions and the remittance of the employers’ contributions, and have total responsibility for reporting such collections for each employee and for making the employers’ contributions for each employee to the board.

2. Reporting for periods from and after January 1, 1987

The Omnibus Reconciliation Act of 1986 changed the manner in which Social Security contributions are deposited by State and local government employers. This legislation placed State and local employers under the Internal Revenue Service provisions with respect to the schedule for frequency of deposits and interest charges and penalties for late deposits. The law removed from the State the intermediary role of collecting Social Security payments from local governments and relieved the State

from liability for verifying and depositing such payments with respect to payments due on wages paid after December 31, 1986.

(History: Adopted May 29, 1951, page 11; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 02 Definition of Part-time and Emergency Employees for Social Security

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to define part-time temporary and emergency employees for purposes of eligibility for Social Security coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Definition of Emergency employees and part-time temporary positions

Emergency employees shall be defined as those who are hired to serve on the basis that a condition of emergency exists and these employees shall not be included in Social Security coverage. Services in part-time temporary positions, the compensation for which is less than $50 per quarter reporting period shall not be covered for Social Security.

(History: Adopted September 4, 1958, page 386; amended and reformatted August 1, 2007)

Chapter 03 Coverage of Teachers formerly covered under the Teachers’ Retirement System (TRS) – REPEALED

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation was to define the term “teacher” for purposes of Social

Security and Retirement Annuity coverage, including the effective date of such coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

This regulation, which addressed the coverage of teachers formerly covered under the Teachers’ Retirement System, was repealed by the Board of Trustees on August 1, 2016.

(History: Adopted May 29, 1952, page 11; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007; repealed August 1, 2016)

Chapter 04 Coverage of Employees of Public Schools other than Teachers

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to provide for the manner in which employees of public schools who are not teachers may be covered for Social Security and Retirement Annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Social Security Coverage of Employees of Public Schools other than Teachers Employees of public schools, other than teachers, are not to be included in the original agreement between the State and the Federal Security Administration, but may be included by separate agreements made with the superintendents of the various school

districts, or these employees of the various school districts may be included as participating units of agreements negotiated with the various counties or municipalities in which the school district is located.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

State Retirement Annuity Coverage of Employees of Public Schools other than Teachers

1. February 1, 1953 to June 30, 1973

Employees of public schools, other than teachers, are not automatically included in the state retirement annuity coverage, but may be included by separate agreements made with the superintendents of the various school districts, or these employees of the various school districts may be included as participating units of agreements negotiated with the various counties or municipalities in which the school district is located.

2. From July 1, 1973 forward

Effective July 1, 1973, all public school employees other than teachers, such as bus drivers, janitors, maids, maintenance workers and cafeteria employees, had the option to participate in state retirement annuity coverage. Employees hired in those positions after July 1, 1973, shall be covered automatically without the necessity of a separate joinder agreement provided they meet the work requirements as set forth in Regulation 8 and Regulation 36.

(History: Adopted May 29, 1951, page 12; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 05 Social Security and State Retirement Annuity Coverage during Educational or Professional Leave

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify the conditions under which an employee is eligible for Social Security and State Retirement Annuity coverage during educational or professional leave.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Qualification of “Educational Leave” for Social Security and Retirement Annuity Coverage

"Educational Leave" is defined as that period of time during which an employee in a covered group is absent from his job or position obtaining instruction and additional education to better qualify him to perform his duties with his agency. In order to qualify for "educational leave" such an employee must be under agreement at the time he takes "educational leave" to return to the department or agency, or to work for some other department or agency in a covered group.

Provided an employee meets the above qualifications for "educational leave", that period of time he is absent from his regular duties on "educational leave" will be added in computing covered employment under the Social Security Act from March 1, 1951 (or whatever the effective date is stipulated in the agreement between the State and the Federal Security Administrator) and also for prior coverage computed from the time he

commences "educational leave" under the State Retirement System provided by Article II of SB 273 [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)].

It shall also be necessary for the department, agency or other employer of the covered group to certify to the Board of Trustees, in writing under oath, that the employee, at the time he first became absent from his duties on "educational leave", was under agreement to return to regular employment with said department, agency, or employer, or was under agreement to commence employment upon his return with another employer of a covered group.

The prior employer shall pay the Federal contributions taxes both for the employer and the employee for any employee on "educational leave" on the basis of tuition, subsistence or other payments made to the employee or institution on "educational leave", commencing with said contributions of the employer and employee, payable out of money received on May 1, 1952, and the first of each month thereafter as long as the "educational leave" continues. At the end of the "educational leave" contributions shall be due and payable as in all other cases of covered employment.

If any such employee is on "educational leave" on February 1, 1953, or thereafter, and is eligible for benefits under the State Retirement System, as provided in Article II of SB 273, [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)] the employees' contributions shall be withheld commencing February 1, 1953, and the employers' contributions shall be paid at the same time at the rate provided under said Article II, [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)], applied to the tuition and other payments and things of value received by the employee while on "educational leave".

This regulation has been superseded effective May 14, 1984, by the provisions in the Miss. Code Ann. §25-11-109 (1972, as amended) as it applies to retirement annuity coverage during absence from employment while on professional leave.

(History: Adopted May 30, 1952, page 14; amended June 21, 2005 to be effective August 1, 2005, reformatted August 1, 2007)

Chapter 06 Coverage of Members of Boards and Commissions

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify when a member of a Board or Commission is considered as an employee in state service for Retirement Annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Eligibility of Members of Board and Commissions for Retirement Annuity Coverage.

Members of Boards and Commissions of various state departments or agencies or commissions, who are paid solely on a per diem and expense basis, shall not be considered as in state service within the meaning of this term as it applies to

employment of the state. Members of such Boards or Commissions, who are paid a stipulated salary monthly for their services, shall be considered as employees in state service.

(History: Adopted May 29, 1952, page 12, reformatted August 1, 2007)

Chapter 07 Coverage of Members and Employees of the Legislature

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of the regulation is to specify when members of the Legislature are eligible for Social and State Retirement Annuity coverage when the System was created in 1952 and thereafter.

27 Miss. Admin. Code Pt. 210, R. 101 Coverage of legislative members and employees in 1952

Members of the Legislature, who were elected to serve in the 1952 Regular Session and who have not resigned from state service, or retired or become deceased and members who were elected subsequently to the 1952 Session to fill vacant positions caused by death or resignation shall be considered employees in service, as of the date of signing the agreement. Members of the 1952 Legislature, who were members of the previous Legislature and who served on interim legislative committees after the effective date of the agreement between the State of Mississippi and the Federal Security Administration, shall receive retroactive coverage for all services performed back to the effective date of the agreement. All services performed by members of the Legislature, as members of interim committees, shall be considered as state service. Members serving the 1952 Legislature and members of Legislative Interim Committees shall be classified as State employees for the period of such service, and their coverage shall be retroactive as of the effective date of the agreement. Employees of the 1952 Legislature who are employed in state service on the date of signing the agreement, and members and employees of subsequent Legislatures and employees of all Legislative Interim Committees which are organized and operated on the date of signing of the agreement, shall be classified as in state service on that date and their coverage shall be retroactive to the effective date of the agreement.

27 Miss. Admin. Code Pt. 210, R. 102 Coverage of members and employees of subsequent legislatures

Thereafter, all newly elected legislators and employees of subsequent legislatures shall be covered automatically in accordance with the statutes and regulations governing state retirement annuity coverage.

(History: Adopted May 29, 1952, page 12; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 08 Former employees with prior services re-entering State Employment. (This applies to Retirement Annuity only and not to Social Security)

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to set forth when former employees who reentered state service after April 15, 1952, but prior to July 1, 1953, are eligible for prior service credit under state retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Former employees with prior service reentering state employment

Any former employee with prior service with any department of the State of Mississippi, or any County, Municipality, or any Subdivision or Instrumentality, who, after April 15, 1952, but prior to July 1, 1953, re-enters either the department for which prior service was performed, or any department, county, municipality, or instrumentality covered under the Public Employees' Retirement System and becomes a member of said Retirement System, shall be required to remain in service and contribute to said System for a period not less than four years before his certificate of prior service shall become final except in those cases where persons are prevented from completing the four year requirement because of total and permanent disability or because of having attained the compulsory retirement age of 70 years.

(History: Adopted May 29, 1952, page 13; amended October 23, 1957, page 325; Amended March 30, 1961, page 521; reformatted August 1, 2007)

Chapter 09 Prior Service Credits

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to define what public service qualifies for prior service credit for retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Governmental service eligible for prior service credit

Prior service credits in the Public Employees' Retirement System of Mississippi may be granted only for service performed for a State Agency, or for an instrumentality or juristic entity of the State of Mississippi, which is covered by an agreement executed between such instrumentality or juristic entity and the Public Employees' Retirement System of Mississippi and which includes Article II of the agreement, in accordance with the provisions of SB 273, Laws of 1952 (now Article III beginning at Miss. Code. Ann. §25-11-101 et seq. (1972, as amended).

(History: Adopted September 4, 1952, page 39; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 10 Deduction of Contributions from Employee Salaries for State Retirement Annuity

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify the covered wages on which employee contributions are required for retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Covered wages on which employee contributions are due

Employee contributions shall be made on the basis of the contribution rates as set by the Board of Trustees from time to time as applied to earned compensation as defined by law.

1. From February 1, 1953 to June 30, 1968

Deductions for Article II, [now Article III beginning at Miss. Code Ann. §25-11- 101 et seq. (1972, as amended)], from the salary of school employees employed for the school year shall be made on the basis of earned annual compensation less $1200 per year, payable monthly on a pro-rata basis. Example: A teacher having a contract for $1600 for the school year of 8 months and receiving $200 per month would not pay on the first $150 per month of her salary, as she has only an 8 months contract and 8 x $150 = $1200. She would therefore contribute 4% of $200 minus $150, or 4% of $50 per month or $2 per month to Article II, [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)]. However, if she works in other public employment the other 4 months during the year, she would pay 4% of her total salary for these months as she will get her $1200 exemption from her school service.

2. From and After July 1, 1968

Effective July 1, 1968, deductions for employee contributions from the salaries of all employees for retirement annuity coverage shall be based on all covered wages not to exceed the statutory limits.

(History: Adopted September 9, 1952, page 40; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007

Chapter 11 Effective date of deductions for State Retirement Annuity

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to establish the initial effective date on which contribution were due for state retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Initial effective date for retirement annuity contributions and benefits Payments for the State Retirement Annuity (Article II), [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)] are due on wages earned from and after February 1, 1953, and retirement for those eligible for retirement under Article II, [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)] may begin as of February 1, 1953.

(History: Adopted September 9, 1952, page 41; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 12 Eligibility of Retirants from other Systems for Membership in State Retirement Annuity

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify eligibility of retirants from other retirement systems for membership in state retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Eligibility of retirants of other retirement systems for membership in state retirement annuity coverage

1. Prior to July 1, 1980

Prior to July 1, 1980, statutory law prohibited any person who was retired from service under any retirement system of the State of Mississippi operating for state, county or municipal employees and who was receiving retirement benefits there under from being eligible to participate in the state retirement annuity coverage. Thus, prior to this date, retirants receiving a retirement allowance under any retirement plan of this State, or who received a retirement allowance or pension on or after April 15, 1952, from any plan of this State were not eligible for Article II of SB 273, Laws of 1952, [now Article III beginning at Miss. Code Ann. §25- 11-101 et seq. (1972, as amended)]

2. From and after July 1, 1980

Effective July 1, 1980, the statutory prohibition was removed and retirants of another system administered for state, county, or municipal employees had the option to participate in state retirement annuity coverage. Retirees from other systems hired after July 1, 1980, are covered automatically for state retirement annuity coverage.

(History: Adopted September 9, 1952, page 41; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

27 Miss. Admin. Code Pt. 210, R. 102 Purpose

The purpose of this regulation is to clarify eligibility of retirants from other retirement systems for membership in state retirement annuity coverage.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Eligibility of retirants of other retirement systems for membership in state retirement annuity coverage

1. Prior to July 1, 1980

Prior to July 1, 1980, statutory law prohibited any person who was retired from service under any retirement system of the State of Mississippi operating for state, county or municipal employees and who was receiving retirement benefits there under from being eligible to participate in the state retirement annuity coverage. Thus, prior to this date, retirants receiving a retirement allowance under any retirement plan of this State, or who received a retirement allowance or pension on or after April 15, 1952, from any plan of this State were not eligible for Article

II of SB 273, Laws of 1952, [now Article III beginning at Miss. Code Ann. §25- 11-101 et seq. (1972, as amended)]

2. From and after July 1, 1980

Effective July 1, 1980, the statutory prohibition was removed and retirants of another system administered for state, county, or municipal employees had the option to participate in state retirement annuity coverage. Retirees from other systems hired after July 1, 1980, are covered automatically for state retirement annuity coverage.

(History: Adopted September 9, 1952, page 41; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 13 Employers' Contributions under State Retirement Annuity Coverage

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to provide the basis for making employer contributions for State Retirement Annuity Coverage.

27 Miss. Admin. Code Pt. 210, R. 101 Employers’ Contributions under State Retirement Annuity Coverage

1. Prior to July 1, 1958

The employer's payment under Article II [now Article III beginning at Miss. Code Ann. §25-11-101 (1972, as amended)] shall be made at present on the basis of

2-1/2% of wages paid each covered employee during a calendar year from $0 to $6000. 2. From and after July 1, 1958

Employer contributions shall be made on the basis of the contribution rates as set forth from time to time by the Board of Trustees and levels of earned compensation as set forth in the statute.

(History: Adopted September 30, 1952, page 46; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 14 Submission of Monthly Reports and Contributions

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to provide the due date and manner in which the employer must submit required contributions and wage reports.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Due date of contributions and wage report to PERS defined benefit Monthly employee and employer state retirement contributions pursuant to Article III beginning at Miss. Code Ann. §25-11-101 (1972, as amended) are due from the employer as of the fifth working day of each month. The wage and contributions report is due from the employer as of the fifth working day of each month. All delinquent payments shall be

assessed interest at the rate of 10% per annum, and all delinquent reports shall be assessed interest at the rate of 2% per annum during the period of delinquency on the amount reported. Contributions and reports posted by the fifth working day of the month shall be considered as received timely. The creation date of the electronic files shall determine the date of submission. However, where the Board of Trustees finds that such delinquency is the result of circumstances beyond the control of the employer and the Board of Trustees has been notified of such circumstances by the employer in a timely manner, then the assessment provided for herein shall be discretionary. For purposes of this Regulation, incomplete and inaccurate reports shall be deemed as delinquent reports until such time as they are properly filed.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Manner of submission of contributions and wage report to PERS defined benefit Effective July 1, 1996, all employers are authorized and shall transfer all funds due to PERS electronically and shall transmit any wage or other reports by computerized reporting systems. An employer may submit a written request for a temporary exemption from the application of the above requirements setting forth the reasons for the inability to comply with the requirement. Where the Board of Trustees finds that an employer cannot comply with the above requirements due to circumstances beyond its control, such temporary exemption may be granted. The Board of Trustees may establish guidelines for determining whether such request shall be granted. The Board of Trustees may assess a processing fee for noncompliance with the mandatory electronic funds transfer and/or computerized reporting if no exemption is granted. Such guidelines and processing fees will be established from time to time by the Board of Trustees and reflected in its minutes.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Calculation of employee contributions for monthly submission In accordance with Miss. Code Ann. §25-11-123 (1972, as amended), the employer shall first deduct from the salary of each member on each payroll for each payroll period, the total statutory employee contribution. For any employee who became a member before March 1, 2026, the full employee contribution shall be remitted to PERS. For any employee who becomes a member on or after March 1, 2026, the statutory PERS defined benefit employee contribution will be remitted to PERS and, separately, the remaining statutory defined contribution employee contribution shall be remitted to the defined contribution third-party administrator.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Submission of defined contribution contributions Monthly defined contribution employee and employer state retirement contributions pursuant to Article III beginning at Miss. Code Ann. §25-11-101 (1972, as amended) are due from the employer as of the fifth working day of each month in accordance with the Mississippi Hybrid Defined Contribution Plan Document. Remittances of such contributions received after the fifteenth working day are delinquent. Delinquent payments shall be subject to interest at the rate specified in PERS Board Regulation 43, Section 103.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Calculation of Interest on Delinquent Contribution Payments by Fee Officials

The Annual Financial Report (AFR) required to be filed by each covered constable, chancery clerk, and circuit clerk and all retirement contributions due on the net earnings from the office must be remitted to PERS by April 15 of the following year. The amounts due and not remitted by April 15 begin accruing interest daily at the rate specified in PERS Board Regulation 43 from April 15 until the date of payment.

(History: Adopted September 30, 1952, page 52, amended July 15, 1980; amended April 15, 1986, page 66; amended October 21, 1986, page 74; amended December 16, 1986, page 2; amended June 15, 1993; amended February 23, 1994; amended August 20, 1996; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007; amended December 1, 2010; amended effective December 1, 2015, amended effective March 1, 2026)

Chapter 15 Eligibility of employees not employed between February 1, 1953, and July 1, 1953 for Social Security and Retirement Annuity coverage

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to establish eligibility for membership and prior service credit in state retirement annuity coverage for public employees covered for Social Security coverage as of July 1, 1952, and who worked in public employment any time between that time and February 1, 1953, but not between February 1, 1953 and July 1, 1953.

27 Miss. Admin. Code Pt. 210, R. 101 Eligibility for certain prior service credit

Public employees, who were properly reported for the retroactive Social Security coverage, and who were considered employed on the effective date of the Federal Security Administration - State Agreement (July 2, 1952), and who worked in covered public employment any time between July 2, 1952, and February 1, 1953 but who were not employed in covered public employment between February 1, 1953, and July 1, 1953, may join Article II (State Retirement Annuity, [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)] of the System and obtain full prior years service credit, provided they apply to the System on PERS Form 1, on or before July 1, 1953, and provided their prospective employer certifies that a contract has been made for their services on or before July 1, 1953, even though such an employee does not actually commence work on July 1, 1953, but such an employee does commence work, at the regular rate of pay for that position, for the certifying employer within 90 days after July 1, 1953. Employees meeting these requirements shall not be required to work the additional five years to obtain prior years service credit.

To Illustrate: A teacher (or other public employee) who taught in the school fiscal year 1951-52 and who taught during the first quarter of the 1952-53 school year, but who for any reason, other than discharge for cause, had to retire from teaching prior to February 1, 1953, and who was unable to teach at any time during the remainder of the 1952-53 school term, but who obtained a contract to teach in the 1953-54 school year, and whose principal would so certify, and if this teacher would send this certification together with her membership application to the Public Employees' Retirement System on or before

July 1, 1953, she would not lose her prior years service credit. If she does not meet these conditions she will lose her prior years service credit.

(History: Adopted November 13, 1952, page 57; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 16 Clarification of State-Federal Employment

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of the regulation is to clarify the meaning of the terms “position” and “state service” as it relates to “creditable service” of employees of joint State and Federal agencies administering State and Federal funds.

27 Miss. Admin. Code Pt. 210, R. 101 Eligibility of State-Federal employment for creditable service

The term "position" definition (p) of Section 12, and term "state service" definition (v) of Section 12 of Senate Bill No. 273, [now Miss. Code Ann. §25-11-103(s) (1972, as amended)] relating to joint State and Federal agencies administering State and Federal funds, shall be interpreted to mean, when applied to "creditable service", service rendered by a person employed in a joint State - Federal Program financed jointly by State - Federal funds but which employees are not members of any other retirement system at the time they made claim for prior service; and provided that such employees are appointed to the position or positions involved by the State Agency, Political Subdivision or Municipality participating in the joint State - Federal Program.

(History: Adopted November 13, 1952, page 58; amended January 23, 1953, page 62; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 17 Election of Members of the Board of Trustees of the Public Employees’ Retirement System of Mississippi

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation prescribes the manner in which members of the Board of Trustees of the Public Employees’ Retirement System of Mississippi (PERS) are elected.

27 Miss. Admin. Code Pt. 210, R. 101 Responsibility for conducting elections

The Administrative Committee, as duly appointed, shall oversee all elections. The executive director shall prepare and furnish the Administrative Committee with a schedule of election to be approved by the Board and followed in each election.

27 Miss. Admin. Code Pt. 210, R. 102 Prohibition against influencing election

The official authority of any Board member or employee shall not be used for the purpose of interfering with or affecting the result of an election or a nomination for office.

27 Miss. Admin. Code Pt. 210, R. 103 Election Procedure

The procedure for the nomination and schedule of election of members of the Board provided in Miss. Code Ann. § 25-11-l5 (1972, as amended), shall be as follows:

1. Not less than 150 days prior to the expiration of the term of office of any member of said Board, the executive director shall prepare and distribute to the chief executive officer of all agencies whose employees are eligible to participate in the election, or to the retirees and beneficiaries in the case of the election of a retiree representative, a notice of such impending expiration, and shall simultaneously prepare and distribute, or make available, an appropriate petition as prescribed by the Board for the nomination of candidates. In the event the Board declares a vacancy in the office of a trustee prior to the expiration of his or her term of office, the executive director shall, within seven business days of the declared vacancy, initiate accelerated election proceedings in accordance with Miss. Code Ann. § 25-11-15(3) (1972, as amended) so as to fill the vacancy as quickly as possible.

2. Sufficient lines shall be provided on each petition for at least 25 signatures of members or retirees, as applicable, of systems administered by PERS who are eligible to vote in said election and a minimum of 25 signatures, other than the signature of the candidate seeking nomination, shall be necessary to place the name of any eligible candidate in nomination for the office.

3. The petition nominating candidates for said office shall be filed with the executive director not less than 120 days prior to the expiration of the term of office of the incumbent member of the Board whose term is expiring, and no nomination received subsequent to said time shall be considered. The executive director, or his or her designee, shall be responsible for verifying the eligibility of any candidate and, if necessary to perfect a petition, may allow a nominee to obtain additional required signatures after filing the petition if the additional signatures are received before the deadline for filing of petitions.

4. Approximately one week after the deadline for filing petitions as provided in Section 103.3 of this regulation, the executive director shall initiate the preparation of an official ballot for said election, listing thereon in alphabetical order the names of all eligible candidates placed in nomination pursuant to these regulations. Ballots and candidate information shall be provided or made available to the members, retirees, and beneficiaries entitled to vote in said election. If only one nomination is approved, such candidate shall be declared by the Board of Trustees to have been duly elected.

5. Employees who are active members of a public retirement system administered by PERS and retirees and beneficiaries, regardless of age, who are receiving a monthly retirement allowance from a public retirement system administered by PERS shall be entitled to vote in the appropriate election of the member of the Board of Trustees, as provided in Miss. Code Ann. § 25-11-15 (1972, as amended); however, only an eligible active member of PERS who has at least 10 years of creditable service or a retired member receiving a monthly retirement allowance from PERS may seek election to and, if elected, serve on the Board of Trustees.

6. Any employee of PERS may vote in any state employee representative election but may not seek election to serve on the Board of Trustees while so employed.

7. Any active member or retiree who holds office in the legislative or judicial branches of state or local government may vote in the applicable member or retiree representative election but may not seek election to serve on the Board of Trustees.

8. The executive director is authorized to conduct elections of an active employee member or retired member to the Board of Trustees in the manner deemed most efficient and effective. The manner used in the casting of ballots in the election, whether by paper ballot, telephone, or electronic means, shall reasonably provide each member with the opportunity to cast a single vote for the candidate of his or her choice. The executive director shall take the necessary measures to ensure that the election is conducted with a high degree of confidentiality and that the voting process provides secure, verifiable, and unbiased results.

9. Within 30 days after such ballots have been provided or made available to members, retirees, and beneficiaries who are entitled to vote in said election, the voting period will close and the results tabulated. The results of the election will be certified at the next Board meeting. Any candidate in said election, or his or her representative or attorney, shall, upon request within 90 days, have the right to review the official certified results.

10. If any candidate for said office shall receive a majority of all votes cast in said election, such candidate shall be declared to have been duly elected. If no candidate receives a majority of the total votes cast in said election, the Administrative Committee shall certify the name of the candidate receiving the highest number of votes and the name(s) of the candidate(s) receiving the second highest number of votes, and the executive director shall, thereupon, within a period of approximately one week after such certification, initiate an official runoff election. In the event two or more candidates tie for the highest number of votes cast in said election, the Administrative Committee shall certify the names of those candidates for purposes of the runoff election. The runoff election process, including the declaration of the duly elected candidate, shall be conducted using the same voting process as hereinabove provided in the first election process, except that the candidate who receives the most votes cast in the runoff election, or the candidate decided by lot in the event of a tie vote, shall be declared to have been duly elected.

11. In the event the name of an ineligible individual is placed on an official ballot in any election, that election shall be declared invalid and a new election will be held, unless excluding the votes cast for the ineligible individual would have no bearing whatsoever on the election results, in which case the election results would be certified by the Board.

12. In the event any eligible runoff candidate withdraws his or her name or subsequently becomes ineligible to serve at any point after certification of the candidates for the runoff election and before the election is completed, the Board shall declare the remaining candidate to have been duly elected if there is only one remaining candidate.

13. The Board of Trustees shall certify the results of said election to the Secretary of State so that a commission may be issued as required by law to the successful candidate, and said candidate shall be sworn in as a member of the Board as provided by law.

14. The Board of Trustees shall be the sole judge of all questions touching on the qualifications of (i) candidates, (ii) employees of the various political subdivisions, agencies, institutions, departments, (iii) retirees, and (iv) voters in such elections, and shall likewise determine any and all other questions arising incident to or connected with such election.

15. Any legal holidays falling within any period of time set forth in these policies shall extend the time for that period by one day unless otherwise directed by the Board. Any time period referred to in these procedures shall mean calendar days, not work days. If a deadline falls on Saturday or Sunday, the deadline shall be extended to the following Monday.

27 Miss. Admin. Code Pt. 210, R. 104 Oath of Office

Each trustee shall, within ten days after his appointment or certification of election, take an oath of office as provided by law that he or she will diligently and honestly administer the affairs of the said Board, and that he or she will not knowingly violate or willingly permit to be violated any of the provisions of law applicable to any public retirement system administered by PERS. Such oath shall be signed by the member making it, certified, and immediately filed in the office of the Secretary of State.

(History of Board Regulation 17: Adopted November 13, 1952, page 55; amended November 2, 1953, page 130; amended March 26, 1953, page 80; amended December 17, 1991; amended June 30, 1992; amended August 17, 1993; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007; amended October 23, 2007; amended effective August 1, 2014; amended effective December 1, 2016)

Chapter 18 Agencies joining State Retirement Annuity Coverage after February 1, 1953

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to address a) when service credit may be granted retroactive to February 1, 1953, when an agency or employee joins state retirement annuity coverage after February 1, 1953, but on or before July 1, 1953, and b) when contributions for the period prior to joining is due.

27 Miss. Admin. Code Pt. 210, R. 101 Requirements for receiving certain service credit

Agencies or employees who join Article II of SB 273, Laws of 1952, [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)] after February 1, 1953, but on or before July 1, 1953, will be required to remit prior to July 25, 1953, both the employer's and the employee's part of contributions for that period, or else they are not to receive credit for services rendered during that period.

(History: Adopted January 23, 1953, page 61; amended November 2, 1953, page 130; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 20 State Retirement Annuity Coverage for Teachers obtaining contract before July 1, 1953 – REPEALED

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation was to address state retirement annuity coverage for certain employees who were not in covered employment between April 15, 1952, and July 1, 1953, but who obtained a contract for teaching or other employment on or before July 1, 1953.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

This regulation, which addressed state retirement annuity coverage for certain employees who obtained a contract for teaching or other employment before July 1, 1953, was repealed by the Board of Trustees on August 1, 2016.

(History: Adopted July 2, 1953, page 112; amended November 2, 1953, page 130; amended March 30, 1961, page 521; reformatted August 1, 2007; repealed August 1, 2016

Chapter 21 Eligibility of Teachers retired under Teacher Retirement System – REPEALED

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation was to address the eligibility for state retirement annuity coverage of certain teachers who retired on disability retirement under the Teachers’

Retirement Act and who returned to active duty after implementation of the state retirement annuity plan.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

This regulation, which addressed the eligibility for teachers retired under the Teacher Retirement System who returned to active duty after implementation of the state retirement annuity plan, was repealed by the Board of Trustees on August 1, 2016.

(History: Adopted November 2, 1953, page 131; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007; repealed August 1, 2016)

Chapter 23 Format for Wage and Contribution Reports

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to set forth the authority of the Board of Trustees to specify the format and procedures under which wage and contribution reports will be made.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

In making State Retirement Annuity reports, the reporting agency shall be required to list employees in alphabetical order, or in the format and under the procedures as otherwise prescribed by the Board of Trustees from time to time.

(History: Adopted July 2, 1953, page 111; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 24 Employees who rejected membership

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to address the effect of a transfer of employment upon an employee’s rejection of members in the state retirement annuity plan.

27 Miss. Admin. Code Pt. 210, R. 101 Effect of job transfer on rejection of membership service

Employees who had rejected membership in Article II [now Article III beginning at Miss. Code Ann. §25-11-101 et seq. (1972, as amended)] who transfer from one Agency to another without an appreciable break in their employment, may be allowed to retain their rejection of membership.

(History: Adopted August 11, 1953, page 119; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 25 Eligibility of Part-time Employees for State Retirement Annuity Service Credit

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify the minimum level of employment which qualifies an employee to receive service credit.

27 Miss. Admin. Code Pt. 210, R. 101 Minimum level of employment required for service credit

Persons working the equivalent of one-half, or more, of a normal work load for their positions and receiving one-half, or more, of normal wages for that position, may receive full service credit for such work. This Regulation must be read in conjunction with Regulation 36 and Miss. Code Ann. §25-11-109 (1972, as amended).

(History: Adopted May 28, 1953, page 100; amended November 2, 1953, page 132; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 26 Eligibility for Prior Service Credit for Employees Returning to Covered Employment after April 15, 1952 or Employed after July 1, 1953

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to address the eligibility for service credit for certain employees returning to covered employment after April 15, 1952, or for those employed after July 1, 1953.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Prior service credit for employees returning to covered employment after April 15, 1952, but before July 1, 1953

Persons who were employed as a regular employee in the public schools for the final school term of the school year 1951-52, or persons who were regularly employed in other covered public employment when Senate Bill 273, Laws of 1952, was approved (April 15, 1952), may join the state retirement annuity phase of the Public Employees' Retirement System and receive credit for prior years service by obtaining active employment for any period of time in covered employment any time between February 1, 1953, and July 1, 1953.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Prior service credit for employees hired after July 1, 1953, but before July 1, 2007 Persons employed in a covered position after July 1, 1953, but before July 1, 2007, must remain in a covered position as a contributing member for a minimum of four (4) years to obtain any eligible prior service credit.

27 Miss. Admin. Code Pt. 210, R. 103 Prior service credit for employees hired on or after July 1, 2007

Persons employed in a covered position on or after July 1, 2007, must remain in a covered position as a contributing member for a minimum of eight (8) years to obtain any eligible prior service credit.

(History: Adopted February 19, 1953, page 63; amended June 21, 2005, to be effective August 1, 2005; amended and reformatted July 1, 2007)

Chapter 28 Benefits for Members Withdrawing from Service prior to age 62

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to clarify the requirements under which a member who withdraws from service before age 62 is eligible for service retirement benefits.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Any person who became a member before July 1, 2007 Any person who became a member before July 1, 2007, who withdraws from service prior to age 60 with four (4) or more years of contributing membership service but less than twenty-five (25) years of creditable service and who does not receive a refund of his or her contributions, shall, upon the attainment of age 60, be eligible to apply for a retirement allowance in accordance with the formula provided in Miss. Code Ann. §25- 11-111 (1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Any person who became a member on or after July 1, 2007, but before July 1, 2011 Any person who became a member on or after July 1, 2007, but before July 1, 2011, who withdraws from service prior to age 60 with eight (8) or more years of contributing membership service but less than twenty-five (25) years of creditable service and who does not receive a refund of his or her contributions, shall, upon the attainment of age 60, be eligible to apply for a retirement allowance in accordance with the formula provided in Miss. Code Ann. §25-11-111 (1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Any person who became a member on or after July 1, 2011, but before March 1,

Any person who became a member on or after July 1, 2011, but before March 1, 2026, who withdraws from service prior to age 60 with eight (8) or more years of contributing membership service but less than thirty (30) years of creditable service and who does not receive a refund of his or her contributions, shall, upon the attainment of age 60, be eligible to apply for a retirement allowance in accordance with the formula provided in Miss. Code Ann. §25-11-111(1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Any person who becomes a member on or after March 1, 2026 Any person who becomes a member on or after March 1, 2026, who withdraws from service prior to age 62 with eight (8) or more years of contributing membership service but less than thirty (30) years of creditable service and who does not receive a refund of his or her contributions, shall, upon the attainment of age 62, be eligible to apply for a retirement allowance in accordance with the formula provided in Miss. Code Ann. §25- 11-111(1972, as amended).

(History: Adopted March 27, 1957, page 295; amended June 21, 2005, to be effective August 1, 2005, amended and reformatted July 1, 2007; amended effective July 1, 2011, amended effective March 1, 2026)

Chapter 29 Documentation Required for Prior Service Credit

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to specify the documentation requirements for the award of prior service credit.

27 Miss. Admin. Code Pt. 210, R. 101 Documentation required to prior service credit

Service credit for periods prior to February 1, 1953, may be awarded only after a) qualification for same, and b) receipt of employment and earnings records or such other documentation as satisfactory to the Board of Trustees.

(History: Adopted August 28, 1957, page 318; amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 30 Minimum Monthly Retirement Allowance

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to establish a minimum retirement allowance for all Public Employees’ Retirement System of Mississippi (PERS) retirees eligible for a monthly retirement allowance.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Minimum retirement allowance for any person who became a member before July 1, 2011

1. Minimum retirement allowance from May 6, 1958 to June 30, 1971 Members of PERS who were eligible for any amount of monthly service retirement benefits prior to passage of H.B. 904, Laws of 1958, on May 6, 1958, and who had not retired prior to that date, may retire after that date with the $10 per month minimum provided that they were 65 or over at the time of termination of their employment. Members who were not eligible for any monthly service retirement benefits whatsoever on or before May 6, 1958, and who withdrew from service prior to that date are not eligible for the $10 per month minimum benefits unless their termination of employment had been made at the close of the 1958 school year which might have occurred prior to May 6, 1958.

2. Minimum retirement allowance from July 1, 1971, to June 30, 1973 Effective July 1, 1971, the minimum monthly retirement allowance under the maximum option was two dollars ($2) per year of service. 3. Minimum retirement allowance from July 1, 1973, to June 30, 1980 Effective July 1, 1973, the minimum monthly retirement allowance under the maximum option was three dollars ($3) per year of service. 4. Minimum retirement allowance from July 1, 1980, to June 30, 1985 Effective July 1, 1980, the minimum monthly retirement allowance under the maximum option was five dollars ($5) per year of service. 5. Minimum retirement allowance from July 1, 1985, to June 30, 1987 Effective July 1, 1985, the minimum monthly retirement allowance under the maximum option was seven dollars and fifty cents ($7.50) per year of service. 6. Minimum retirement allowance from and after July 1, 1987

Effective July 1, 1987, the minimum monthly retirement allowance under the maximum option is ten dollars ($10) per year of service or as otherwise provided in Miss. Code Ann. §25-11-111(d)(3) (1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Minimum retirement allowance for any person who becomes a member on or after July 1, 2011 Miss. Code Ann. §25-11-111(e) (1972, as amended) does not provide for a minimum monthly retirement allowance for any person who becomes a member of PERS on or after July 1, 2011.

(History: Adopted January 28, 1959, page 402; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007; amended effective August 1, 2011)

Chapter 32 Extending Membership In PERS to Political Subdivisions

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to state the cost basis upon which PERS may grant service credit for retroactive service to employees of political subdivisions pursuant to a joinder agreement addendum.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Conditions for granting retroactive service credit to employees of political subdivisions Political subdivisions may elect to join PERS and provide membership to their employees on a prospective basis only or they can also provide for retroactive service credit. If the political subdivision elects to provide service credit retroactive to a certain date, no credit for such service can be granted to a member until he or she has contributed to PERS under Article III beginning at Miss. Code. Ann. §25-11-101, et seq. (1972, as amended) for the minimum required period based on the date of membership into the system and the appropriate cost for such service has been paid. Employees who became members of the retirement system before July 1, 2007, must have remained contributors to the system for a minimum of four (4) years, while employees who became members of the retirement system on or after July 1, 2007, must have remained contributors to the system for a minimum of eight (8) years, to be able to establish retroactive service credit. The retroactive creditable service shall be applied in accordance with the benefit formula provided in Miss. Code Ann. §25-11-111(1972, as amended), and such additional creditable service shall not alter the date the employee became a member of the retirement system.

1. Cost of Retroactive Service Prior to July 1, 1998 The cost of such retroactive service prior to July 1, 1998, shall be controlled by the regulation, statutes and the addendum to the joinder agreement in effect at the time. 2. Cost of Retroactive Service From and After July 1, 1998 Effective July 1, 1998, no credit shall be granted for retroactive services between January 1, 1953, and the date of entry into the retirement system unless the member: a. Furnishes proof satisfactory to the Board of Trustees of certification of

service from the covered employer where the services were performed; and b. Pays the retirement system on the date he or she is eligible for such credit or at any time thereafter, but prior to the date of retirement, the actuarial cost for each year of such creditable service.

(History: Adopted July 27, 1960, page 483 -484; amended June 21, 2005 to be effective August 1, 2005; amended and reformatted July 1, 2007, amended effective March 1, 2026)

Chapter 34 Reemployment after Retirement

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation sets forth the terms and conditions under which a service retiree may be reemployed by a covered employer after retirement.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Background 1. Public Employees’ Retirement System of Mississippi In accordance with Miss. Code Ann. § 25-11-127 (1972, as amended), the Board of Trustees of the Public Employees’ Retirement System of Mississippi (PERS) has adopted the following rules and regulations governing the provisions for reemployment of PERS service retirees who are reemployed after service retirement under the above-cited Section on or after the effective dates of the applicable provisions of this regulation.

2. Mississippi Highway Safety Patrol Retirement System In accordance with Miss. Code Ann. § 25-13-25 (1972, as amended), the Administrative Board of the Mississippi Highway Safety Patrol Retirement System (MHSPRS) has adopted certain rules governing the provisions for reemployment of MHSPRS retirees who are reemployed after retirement. Those rules have been incorporated into sections 102 and 108 of this regulation.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Loss of Monthly Benefits upon Employment or Reemployment 1. Public Employees’ Retirement System of Mississippi No person who is being paid a retirement allowance or a pension after retirement under Article 3 of the Mississippi Code of 1972, as amended, shall be employed or paid for any service by the State of Mississippi or any of its departments, agencies, or subdivisions participating in PERS, including services as an employee, contract worker, contractual employee or independent contractor, until the retired person has been retired for not less than 30 consecutive days from his or her effective date of retirement. After the person has been retired for not less than 30 consecutive days from his or her effective date of retirement or such later date as established by the board in Section 106.2 of this regulation, he or she may be reemployed while being paid a retirement allowance under the terms and conditions provided in Section 103 of this regulation. (See Sections 109 and 110 for work as an independent contractor or for work through a third party.)

a. Elected officials are deemed to be full-time for the purpose of creditable service. Therefore, retirees may not be employed or reemployed in a covered elected office under the provisions of Section 103 so as to receive both salary and retirement benefits concurrently as provided in that Section, except as provided in Section 103.2.b. of this regulation. b. Following a bona fide separation from service of at least 30 days, elected or appointed officials paid solely on a per diem basis as provided by statute are not considered employees for purposes of this regulation on reemployment and may continue receiving a retirement benefit while serving as an elected or appointed official.

2. Mississippi Highway Safety Patrol Retirement System No person being paid a retirement allowance or a pension after retirement under Title 25, Chapter 13 of the Mississippi Code of 1972, as amended, shall be (i) employed in a law enforcement position with the Mississippi Highway Patrol (MHP) or the Mississippi Bureau of Narcotics (MBN) or (ii) paid from the MHP budget or the MBN budget while being paid a retirement allowance from MHSPRS, if such employment commences on or after December 1, 2013. An MHSPRS retiree may be employed in any capacity with an employer other than MHP or MBN and remain in compliance with this rule.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Exceptions under which a retiree may be reemployed while in receipt of a retirement allowance 1. Retirees reemployed in a covered position other than an Elected Position PERS may not withhold a monthly benefit payment if the retiree is employed by a covered employer in the following instances: a. For a period of time not to exceed one-half of the normal working days or one- half of the equivalent number of hours for the position in any fiscal year during which the retiree will receive no more than one-half of the salary in effect for the position at the time of employment; b. For a period of time in any fiscal year sufficient in length to permit a retiree to earn not in excess of 25 percent of the retiree’s final average compensation used to calculate the retiree's monthly benefit; or c. For a period of time in any fiscal year, at compensation in an amount not to exceed 80 percent of the salary in effect for the position at the time of employment. No retiree may return to work under this paragraph (c) as an elected official, k-12 school superintendent, or administrator at a university or a community or junior college. No retiree whose retirement was subject to an actuarial reduction, other than as a result of taking a partial lump-sum distribution or any other optional benefit under § 25-11-115 may return to work under this paragraph (c). In other words, a retiree who became a member of the system on or after July 1, 2011, who retires with less than 30 years of creditable service, but before reaching age 65, shall not be eligible to return to work under this paragraph (c).

“Fiscal year” shall mean the period beginning on July 1 of any year and ending on June 30 of the next succeeding year as provided by statute. 2. Retirees reemployed as a Municipal or County Elected Official A member may retire and continue in covered municipal or county elective office provided that the member has reached age 59 ½ effective July 1, 2020 (or age 62 prior to July 1, 2020), or a retiree may, after incurring a bona fide separation from service of at least 30 days as set forth in Section 106, be elected to a covered municipal or county office, provided the retiree: a. Files annually in writing in the office of the employer and of PERS before he or she takes office or as soon as possible after retirement a waiver of all salary or compensation and elects to receive in lieu of that salary or compensation a retirement allowance, in which event no salary or compensation shall thereafter be due or payable for those services, or b. Files annually in writing in the office of the employer and of PERS an election to receive compensation for that municipal or county elective office in an amount not to exceed 25 percent of the retiree’s average compensation, which shall be prorated over a 12-month time frame.

A retiree who continues in or is elected to covered municipal or county office under Section 103.2.a. or Section 103.2.b. may receive any office expense allowance, mileage or travel expense authorized by any applicable statute of the State of Mississippi. 3. Retirees employed in both a non-elective position and a Municipal or County Elected position If at any point during the fiscal year, a retiree is reemployed in both a covered local elected position (and thus considered a full-time employee) and is also reemployed on a limited basis in a non-elective position, he/she must either: a. Begin or continue under the 25 percent of average compensation limitation and apply what has already been earned from any other position during the fiscal year to that limitation or b. Stay under an existing election to work no more than one-half of the normal working days or one-half of the equivalent number of hours and earn no more than one-half of the salary for a non-elected position and waive the salary for the local elected position. 4. Municipal or County Elected Positions a. For purposes of reemployment limitations under Miss. Code Ann. § 25-11-127(6) (1972, as amended), municipal or county elected office shall include: Municipal: Mayor, Alderman (Councilman or Selectman), Police Chief or Marshal, Municipal Judge, Tax Collector, Tax Assessor, City or Town Clerk, unless any such position is made appointive pursuant to Miss. Code Ann. § 21-3- 3, or any other salaried official elected by popular vote and eligible for coverage in PERS. County: County Supervisor, Chancery Clerk, Circuit Clerk, Tax Assessor, Tax Collector (if separate from Tax Assessor), Sheriff, County Surveyor, Justice Court Judge, County Judge/Family Court Judge, Constable, County Coroner or Medical

Examiner, Elected County Prosecutor/Elected County Attorney, or any other salaried official elected by popular vote and eligible for coverage in PERS. b. Municipal or county elected positions shall not include: Governor, Lieutenant Governor, Secretary of State, Attorney General, State Auditor, State Treasurer, Commissioner of Agriculture and Commerce, Commissioner of Insurance, Public Service Commissioner, Transportation Commissioner, State Senator, State Representative, Supreme Court Justice, Court of Appeals Judge, Chancery Court Judge, Circuit Court Judge, District Attorney, Election Commissioner, School Board Member, or other office not included in the municipal or county elected offices listed under this Section. 5. Senior or Special Judge Miss. Code Ann. § 9-1-105 limits the amount of compensation that can be paid to any judge retired from the chancery, circuit, or county courts, from the Court of Appeals or from the Supreme Court who is appointed as a special judge and who continues to receive a retirement allowance. Such reemployed retired judge may receive no more than 50 percent of the current salary in effect for a chancery or circuit court judge.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Determination of Required Number of Working Days for the Position For purposes of Section 103.1.a., the employer shall determine the required number of working days for the position on a full-time basis and the equivalent number of hours representing the full-time position. The retiree then may work up to one-half of the required number of working days or up to one-half of the equivalent number of hours and receive up to one-half of the salary for the position. In the case of employment with multiple employers or in multiple positions with the same employer, the limitation shall equal one-half of the number of days or hours for a single full-time position.

For purposes of Section 103.1.b., there is no limit to the number of days the retiree may work to earn up to 25 percent of the retiree’s final average compensation used to calculate the retiree’s monthly benefit. In the case of employment with multiple employers or in multiple positions with the same employer, the total earnings limitation shall equal 25 percent of the retiree’s final average compensation.

For purposes of Section 103.1.c., there is no limit to the number of days the retiree may work to earn up to 80 percent of the salary in effect for the position at the time of employment. In the case of employment with multiple employers, the limitation shall equal 80 percent of the salary in effect for a single full-time position.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Notification Requirement and Failure to Comply with Regulation To lawfully employ a PERS service retiree under Section 103, the employer must notify PERS in writing of the terms of the eligible employment within five days from the date of employment and also from the date of termination on a form prescribed by the Board. Failure by the employer to timely notify PERS may result in the assessment of a $300 penalty per occurrence payable by the employer.

A service retiree reemployed under Section 103.1 shall make one election per fiscal year to either (i) limit the number of days/hours worked for all covered employers to that

allowed under Section 103.1.a. or (ii) limit the amount of compensation that will be earned from all covered employers as provided under Section 103.1.b. or 103.1.c.

A service retiree reemployed under Section 103.1.c. shall provide PERS a written agreement between the employer and employee detailing the covered employment position, the full salary for the position, and the percentage of salary the reemployed retiree will receive as compensation. Any subsequent amendments to the agreement must also be provided to PERS within 20 business days of the execution of the amendment.

A retiree who continues in or is elected to covered municipal or county office (and who is not also reemployed in a non-elective position) shall make one election per fiscal year to either (i) waive his or her salary and continue to receive a retirement allowance under Section 103.2.a. or (ii) elect to receive an amount not to exceed 25 percent of the retiree’s average compensation in Section 103.2.b. Note that such elected official does not have the option of limiting the number of days or hours worked.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Withdrawal from Service or Termination from Service 1. “Withdrawal from service” or “termination from service” is defined by statute as the complete severance of employment in state service of any member by resignation, dismissal or discharge. Retirement benefits may not begin until the member has withdrawn from service as required in Miss. Code Ann. § 25-11-111 (1972, as amended). If the retired member is reemployed by the same or another covered employer in any capacity, including that of an independent contractor, within 30 days from the effective date of retirement, has entered into a pre-arranged agreement for reemployment with a covered employer, or the parties otherwise have a reasonable expectation that the retired member will return to work for a covered employer, the member shall be considered to have continued in the status of an employee and not to have separated from service. In the absence of a bona fide separation from service of at least 30 days, any retirement allowance payments received by the retired member shall be repaid to PERS and the retirement shall be negated. If such retiree is so employed or reemployed in a covered position without the requisite separation, such reemployed retiree’s earnings shall continue to be reported to PERS. 2. In order to fall within one of the exceptions of Miss. Code Ann. § 25-11-127 (1972, as amended), as outlined in Section 103, or the provisions for waiver of compensation by retirees reemployed as a Municipal or County elected official where the retiree elects to receive a retirement allowance in lieu of such salary, such complete severance shall mean the absence of any employment in any capacity, including service without pay, and without a prearranged agreement between a covered employer and the retiree for reemployment or a reasonable expectation of the parties that the retiree will return to work for a covered employer for a minimum of 30 consecutive calendar days beginning with the effective date of retirement. Provided, however, any employee of an educational institution employed on less than a 12- month basis who retires at the end of the school year and is reemployed the beginning of the next school year shall not have terminated his or her employment within the meaning of Miss. Code Ann. § 25-11-111 (1972, as amended). In order to fall within

the exceptions of the reemployment provisions of Miss. Code Ann. § 25-11-127 (1972, as amended), such retiree retiring at the end of one school year may not be reemployed in an educational institution any earlier than 30 consecutive calendar days after the beginning of the next school year. Where such retiree is reemployed prior to the expiration of such 30-day time frame, any benefits received during the summer months prior to reemployment shall be recovered and the retirement shall be negated. 3. If a member is reemployed prior to the requisite bona fide separation from service of at least 30-days and continues employment in a noncovered position in accordance with PERS Board Regulation 36, Eligibility for Membership in the Public Employees’ Retirement System of Mississippi (PERS), the member will become eligible for service retirement benefits once a complete severance of employment has been made as provided herein.

27 Miss. Admin. Code Pt. 210, R. 107 Rule 107

Effect of Reemployment under the Exceptions of Miss. Code Ann. § 25-11-127 (1972, as amended) on Service Credit and Contributions 1. Employment of a retiree described in Section 103 does not entitle a retiree to additional service credit for such limited period of reemployment, and the retiree so employed shall not make contributions to PERS from compensation for that employment. 2. The employer of a PERS retiree reemployed in a position as an employee or as a contractual employee under the limited reemployment provisions of Section 103.1.a. or 103.1.b. shall pay to the board the full amount of the employer’s contribution, as is in effect at the time of employment, on the amount of compensation received by the retiree for his or her employment under the applicable section. 3. The employer of a PERS retiree reemployed in a position as an employee or as a contractual employee under the limited reemployment provisions of Section 103.1.c. shall pay to the board the sum of the current employer contribution rate and the current employee contribution rate in effect in the year of the return-to-work employment on the amount of compensation received by the retiree for his or her employment under the section. This payment shall be the employer’s full responsibility, and the employee shall not gain any additional rights or benefits toward retirement. 4. Whether a retiree holding a Municipality or County elective office chooses to waive his or her salary as described in Section 103.2.a. or receive limited compensation as described in Section 103.2.b, the employing municipality or county shall pay to the board the employer’s contributions, as is in effect at the time of employment, on the full amount of the set salary for that elected position as if the position were filled by a covered employee. In the case of fee officials covered by a joinder agreement, the following shall apply: a. For constables, the county shall pay the amount of the employer’s contributions on the total direct payments that would otherwise have been issued to the constable for direct services to the county, which includes, but is not limited to, the allowance from the board of supervisors as provided in Miss. Code Ann. § 25- 7-27(1)(f) (1972, as amended), and bailiff fees, if applicable, as if the position was filled by a covered employee.

b. For coroners and surveyors, the county shall pay the amount of the employer’s contributions on the total direct payments that would otherwise have been issued to the coroner or surveyor for direct services to the county as if the position was filled by a covered employee. c. For chancery and circuit clerks, the county shall pay the amount of the employer’s contributions on the amount that would otherwise have been the clerk’s total County Payroll Income, whether or not such income is subject to the salary limitation as provided in Miss. Code Ann. § 9-1-43 (1972, as amended), as reported on the Annual Financial Report filed by the clerk with the Office of the State Auditor and PERS, not to exceed any applicable employee compensation limits, as if the position was filled by a covered employee. 5. Compensation as used in this Section does not include office expense allowance, mileage or travel expense authorized by any applicable statute of the State of Mississippi.

27 Miss. Admin. Code Pt. 210, R. 108 Rule 108

Effect of Reemployment Outside the Exceptions of Miss. Code Ann. § 25-11-127 (1972, as amended) on Service Credit and Contributions 1. Where a retiree is reemployed after retirement in a covered position outside one of the exceptions in Section 103 of this regulation, such retiree shall have his or her benefits terminated, and he or she shall again become a contributing member with contributions paid by both the employer and the employee. The retiree shall not be entitled to benefits for any month in which covered reemployment commences and for which creditable service is awarded for such month. Where such reemployment as a contributing member continues for a period in excess of six full calendar months, the member shall have his or her benefit recomputed upon subsequent retirement, including service credit after again becoming a contributing member. However, persons who are reported under this provision and who do not complete the requisite reemployment period for recalculation of benefits shall have their contributions refunded to them by the employer after such contributions are refunded or credited to the employer. The original benefits will be reinstated prospectively the first of the month following termination from employment at an amount no less than the retirement allowance authorized before cancellation of benefits. The employer shall provide written notice to PERS of any such termination from employment upon subsequent retirement. 2. The recalculation of benefits at the member’s subsequent retirement, where the member has completed the requisite reemployment period for recalculation of benefits, shall be based on the applicable benefit formula, average compensation definition, and actuarial factors in effect at the time of the subsequent retirement and the optional benefit payment plan selected by the member at the time of the subsequent retirement. a. Where a member has selected Option 4-C during a previous retirement pending eligibility for receipt of Social Security benefits and to the extent PERS has not recovered all benefits advanced pursuant to such additional optional provision at the time of reemployment of the retiree, PERS may (i) reduce the retiree’s benefit upon his or her subsequent retirement over the retiree’s actuarial life expectancy to recover such unrecovered advances, or (ii) recover such unrecovered advances

in a lump sum by withholding part or all monthly benefit payments until such advances are recovered. b. Further, where a member has selected the Partial Lump Sum Option at initial retirement, the new maximum benefit as noted under Section 108.2 of this regulation shall, upon subsequent retirement, be reduced by the same dollar amount plus 1 percent of that amount for each month that the retiree’s benefit was terminated due to the retiree’s return to covered employment. 3. Upon a subsequent retirement effective after July 1 of a given year, the retiree’s annual benefit adjustment shall resume immediately with the first benefit payment. When resumed, the annual benefit adjustment will be based on the current retirement allowance and the number of full fiscal years in retirement and shall be prorated and paid in equal monthly installments based on the number of months a retirement allowance is payable during the fiscal year. Beginning with the succeeding fiscal year, the annual benefit adjustment shall be paid in a lump sum or monthly installments in accordance with the election made by the retiree.

27 Miss. Admin. Code Pt. 210, R. 109 Rule 109

Reemployment as an Independent Contractor A retiree must have incurred a bona fide separation from service with all covered employers after retirement for at least the 30-day separation period prior to being engaged to perform services as an independent contractor. For purposes of this regulation, this term shall mean any individual (or firm for which an individual performs substantially all the work) who contracts to do a piece of work according to his or her own methods without being subject to the control of his or her employer except as to the results of the work, and who has the right to employ and direct the outcome of the workers independent of the employer and who is free from any superior authority in the employer to say how the specified work shall be done or what the laborers shall do as the work progresses, or one who undertakes to produce a given result without being in any way controlled as to the methods by which he attains the result.

After the requisite 30-day separation period as defined in Section 106, a retiree may contract to provide such services as a true independent contractor outside the limitations of Section 103 while in receipt of a retirement allowance. However, prior to contracting for such services, such retiree must submit to PERS for its approval, documentation, including but not limited to, the following: the nature of the engagement, including services to be performed; how the services were performed previously, including whether they were performed by an employee and whether the independent contractor previously performed those services as an employee; nature of compensation and treatment of expenses; where the services are to be performed, i.e. on the service recipient's premises; who provides the equipment to perform the services; whether the service provider provides such services to other service recipients; whether such services are offered for other persons through advertising or other solicitation and if so; whether the service provider has provided such services to any other service recipient in the last year and if so to how many; whether there is a written contract for the performance of such services; and other information to substantiate that the service provider is a true independent contractor and not an employee. In addition, PERS will utilize the IRS test as a factor in

determining whether an individual is an employee versus an independent contractor in making this determination.

If, after a review of all pertinent information, PERS determines that the individual will be performing services as a true independent contractor, the retiree will be notified of same and contracting for such services shall not affect his or her retirement allowance. If, however, PERS determines that such individual is actually an employee, the retirement allowance will be terminated and benefits repaid unless such reemployment follows the guidelines and limitations of this regulation.

27 Miss. Admin. Code Pt. 210, R. 110 Rule 110

Employment through a Third Party The limitations on reemployment while in receipt of a retirement allowance may not be circumvented by contracting to perform services through a third party (i.e., a placement or temporary employment agency). If an individual is performing services with a covered agency as an employee, the reemployment limitations will apply whether a particular retiree has been reemployed directly by the covered agency or through a third party. Whether a retiree has been reemployed with a PERS covered agency, directly or indirectly, is a question of fact to be determined by PERS. In making such determination, PERS will use the IRS factors to determine whether an individual is an employee along with other factors such as the extent to which control is exercised over details of the work by the individual; whether or not the retiree employed is engaged in a distinct occupational business; the skill required in the occupation; whether the employer supplies the tools and place of work; the length of time for which the person is employed; the method of payment; whether the work involved is part of the “regular business” of the employer.

27 Miss. Admin. Code Pt. 210, R. 111 Rule 111

Recovery of Benefits Issued in Error Due to Noncompliance with Provisions of this Regulation Should a retiree fail to comply with the provisions of this regulation resulting in the issuance of benefits in error, monthly benefits shall be canceled where necessary, and a demand shall be made for the return of any such benefits erroneously issued. The retiree shall be given 30 days to return any benefit overpayment without an interest penalty. If any overpayment is not returned within 30 days from the date that notification is issued, the retiree shall be liable for the return of the overpayment plus interest thereon at 10 percent per annum plus all costs of collection with a minimum interest assessment of $50.

(History of PERS Board Regulation 34: Amended October 28, 1997 to be effective December 15, 1997, except as specifically otherwise provided; amended effective July 1, 2001; amended effective April 1, 2002; amended July 1, 2002; amended February 1, 2004; amended 6/21/2005 to be effective 8/1/2005; reformatted August 1, 2007; amended effective July 1, 2010; amended effective July 1, 2011; amended effective December 1, 2013; amended effective August 1, 2014; January 17, 2020; amended effective October 1, 2020; amended effective July 1, 2024; amended effective July 1, 2026)

Chapter 35 Filing an Application for Monthly Benefits and Establishing an Effective Date of Retirement

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation prescribes 1) the forms and information necessary to file an application for monthly benefits, 2) the conditions under which an effective date of retirement is established, and 3) when changes in the option specified on the retirement application can and cannot be made.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Establishing the Effective Date of Retirement 1. Application for Service Retirement a. The effective date of service retirement shall be the first of the month following withdrawal or termination from service as defined under Miss. Code Ann. § 25- 11-103 (aa) (1972, as amended) and receipt by PERS of the properly completed application for service retirement, provided that the member is eligible for service retirement benefits on said date. b. The Application consists of the i. Form 9A SRVC, Pre-Application for Service Retirement Benefits; ii. Form 9S, Service Retirement Application; iii. Form 9P, Payroll Authorization iv. Form PLSO, Partial Lump Sum Option Distribution Election (if applicable), and v. Acceptable proof of age for the applicant and for the beneficiary(ies), if selecting a joint and survivor option. c. Receipt of Form 9A SRVC, Pre-Application for Service Retirement Benefits, will be used in setting the effective date of retirement provided that all other forms in the Application as noted in Section 101.1.b of this Regulation are received in the PERS office no later than 90 days following the effective date of retirement. d. All forms in the Application must be on file in the PERS office before benefit payments can be initiated. e. Failure to submit all required forms in the Application within 90 days following the effective date of retirement, as established upon receipt of the Form 9A SRVC, will require the completion of a new Application thereby establishing a new effective date. The executive director may, due to extenuating circumstances and at his or her discretion, extend the 90-day period for completing the application by up to an additional 90 days based on information or documentation provided in a written request from the applicant. f. Where a vested member has withdrawn or terminated from service but is not eligible for retirement benefits at the time of withdrawal or termination from employment and has not returned to covered employment, he or she may at a later date become eligible for a service retirement allowance, provided that he or she does not subsequently withdraw his or her accumulated member contributions and interest. The effective date of retirement will be the first of the month following the event that qualifies him or her for retirement, provided PERS has received a

properly completed Application as noted in Section 101.1.b of this Regulation. Such events include: i. reaching the statutory age at which a member with the requisite minimum number of years of membership service is eligible for a retirement allowance; or ii. completion of the purchase of eligible service credit or repayment of a refund that gives the member the requisite years of creditable service necessary to qualify for a retirement allowance regardless of age. 2. Application for Disability Retirement a. The effective date of disability retirement shall be the first of the month after either 1) receipt of the Form DSBL 1 Pre-Application for Disability Retirement Benefits, provided that all other forms in the Application as noted in Section 101.2.b of this Regulation are received in the PERS office no later than 90 days following receipt thereof, or 2) actual termination from covered employment as certified by the employer, whichever is later. b. The Application consists of the i. Form DSBL 1, Pre-Application for Disability Retirement Benefits; ii. Form DSBL 9, Disability Retirement Application; iii. Form DSBL 4, Medical Information and Prior Claim History; iv. Form DSBL 5, Physician and Treating Facility History v. Form DSBL 7, Statement of Examining Physician, for each physician listed on Form DSBL 5; vi. Physicians’ office records and hospital records for each referenced treatment listed on Form DSBL 5; vii. Workers’ Compensation Report of Injury if applying for duty-related disability; viii. Form DSBL 2, Employer’s Certification of Job Requirements; ix. Form DSBL 3, Employer’s Job Activities Checklist x. Form DSBL 8, Authorization for Release of Information; xi. Form DSBL 10, Payroll Authorization; xii. Form DSBL 6, Family Information; xiii. Form DSBL 11, Temporary Benefit Application, if applicable; and xiv. Acceptable proof of age for the applicant and for the beneficiary(ies), if selecting a joint and survivor option. c. Provided the member files all forms required in Section 101.1.b.ii through iv of this Regulation within 90 days of receipt of the Form DSBL 1, Pre-Application for Disability Retirement Benefits, the Form DSBL 1 will also be used in setting the effective date for service retirement in the following situations: i. a member who is eligible for service retirement but elects not to receive service retirement benefits while pursuing disability benefits and who (a.) is later denied disability benefits, or (b.) withdraws the application for disability benefits, or ii. a member whose application for disability retirement is voided pursuant to Section 101.2.e of this Regulation. d. All forms in the Application must be on file in the PERS office before the claim is presented to the Medical Board and before disability benefit payments can be

initiated. Where a member filing for disability benefits is also eligible for service retirement benefits as provided in Miss. Code Ann. § 25-11-113 (c) (1972, as amended) and Board Regulation 45A, Administration of Disability Benefits Under PERS, Section 102.3, Forms DSBL 1 and DSBL 9, along with applicable acceptable proof of age, must be received before service retirement benefits can begin. e. Failure to submit all required forms in the Application within 90 days following receipt of the Form DSBL 1 will void the Application and require the completion of a new Application thereby establishing a new effective date. The executive director may, due to extenuating circumstances and at his or her discretion, extend the 90-day period for completing the application by up to an additional 90 days based on information or documentation provided in a written request from the applicant. f. After the application is made and disability benefits initiated, an applicant may not change the type of disability claim (i.e., he or she may not change the application from a claim for non-duty related disability benefits to a claim for duty-related disability benefits). g. After a member begins to receive a service retirement allowance, he or she may not apply for a disability retirement allowance. h. Primary proof of an applicant’s child as a dependent child for purposes of the dependent child supplement under the Tiered Disability Plan is the birth certificate of the child with the member listed as the mother or father, as applicable. In the absence of a birth certificate listing the member as a parent, proof must be provided that the member is the lawful guardian or primary custodian of the child. Such proof might include a court order granting guardianship or recent tax returns showing that the member claims the child as his or her dependent. 3. Application for Survivor Benefits a. The effective date of survivor retirement benefits is the first of the month after the date of the member’s death and receipt of a completed application for survivor benefits. In the case where the application for survivor benefits is received within one year following the member’s date of death, the effective date of retirement is the first of the month after the member’s date of death as certified on the death certificate, provided that all forms in the Application as noted in Section 101.3.c of this Regulation are received in the PERS office no later than 90 days following receipt of the Form 9A SRVR, Pre-Application for Survivor Retirement Benefits. In the case where the application for survivor benefits is received more than one year after the member’s date of death, the effective date of retirement is the first of the month following receipt of the Form 9A SRVR retroactive for not more than one year. b. All applicable forms noted in Section 101.3.c of this Regulation must be on file in the PERS office before benefit payments can be initiated. c. The Application consists of: i. Form 9A SRVR, Pre-Application for Survivor Retirement Benefits; ii. Workers’ Compensation Injury Report, if applying for duty-related death benefits;

iii. acceptable proof of age for the member, spouse and dependent children; iv. Marriage Certificate; v. Death Certificate; vi. school attendance records, if dependent children are between the ages of 19 and 23; vii. Form 14, Survivor Retirement Application; and viii. If someone other than a natural parent makes application for dependent child survivor benefits on behalf of the child, adoption papers, guardianship papers, or proof of representative payee status with the Social Security Administration or PERS will also be required. d. Primary proof of an applicant’s status as a dependent child is the birth certificate of the child with the deceased member listed as the mother or father, as applicable. In the absence of a birth certificate listing the deceased member as a parent, proof must be provided that the deceased member was the lawful guardian or primary custodian of the child. Such proof might include a court order granting guardianship or other evidence satisfactory to prove that the child was under the permanent care of the member. PERS will rely on the aforementioned documentation as proof unless compelling contradictory evidence is provided disproving the applicant’s status as a dependent child. e. For purposes of dependent child survivor benefits, a natural child of a member is one who is conceived before the death of the member. f. For purposes of dependent child survivor benefits, a child is considered to be a dependent child until he or she marries or reaches age 19, whichever occurs first; however, the age limitation is extended to age 23 as long as the child is a student regularly pursuing a full-time course of resident study. A student child who is receiving a dependent child benefit as of June 30, 2016, may continue to receive the benefit until the July 1 following his or her 23 rd birthday. g. A full-time course of resident study or training means a day or evening non- correspondence course that includes school attendance at the rate of at least 36 weeks per academic year or other applicable period with a subject workload sufficient, if successfully completed, to attain the educational or training objective within the period generally accepted as minimum for completion, by a full-time day student, of the academic or training program concerned. h. A child who is age 19 but not yet age 23 who withdraws from school (for a period sufficient to determine that the child is no longer a student regularly pursing a full-time course of resident study or training) is no longer eligible for dependent child survivor benefits, even if that child reenrolls in a full-time course of resident study or training before age 23. However, if the child can prove based on objective documentation that he or she involuntarily withdrew from school due to extenuating circumstances beyond his or her direct control, the executive director may, at his or her discretion, approve the reinstatement of the dependent child survivor benefits if the child reenrolls in a full-time course of resident study or training within 12 months of initial withdrawal and (i) the terminated benefit has not been redistributed to other eligible dependent children or (ii) a lump sum refund of unused member contributions has not been paid to the designated beneficiary.

i. A child under age 23 who marries is no longer eligible for dependent child survivor benefits, even if that child divorces before age 23. j. A child who is determined to be physically or mentally disabled by the Medical Board will receive dependent child survivor benefits regardless of age for as long as the child is determined to be disabled as determined by the Medical Board. 4. Normal Retirement Age a. Public Employees’ Retirement System – The attainment of normal retirement age under the Public Employees’ Retirement System shall be defined as: i. having twenty-five (25) or more years of creditable service if the member entered PERS-covered service before July 1, 2011; ii. having thirty (30) or more years of creditable service if the member entered PERS-covered service on or after July 1, 2011; iii. having four (4) or more years of membership service at age 60 or later if the member entered PERS-covered service before July 1, 2007; iv. having eight (8) or more years of membership service at age 60 or later if the member entered PERS-covered service on or after July 1, 2007, but before July 1, 2011; v. having eight (8) or more years of membership service at age 65 or later if the member entered PERS-covered service on or after July 1, 2011. b. Mississippi Highway Safety Patrol Retirement System - The attainment of normal retirement age under the Mississippi Highway Safety Patrol Retirement System shall be defined as the age at which an eligible Public Safety Officer retires on an unreduced benefit, i.e., someone who retired with 5 or more years of membership service at age 55 or older, or someone who retired with 25 or more years of service regardless of age. c. Municipal Retirement System - All members who have retired or will retire under one of the Municipal Fire and Police Retirement Systems will be considered to have attained normal retirement age. 5. Advanced Application a. After a member of the Public Employees’ Retirement System (PERS), the Supplemental Legislative Retirement Plan (SLRP), or the Mississippi Highway Safety Patrol Retirement System (MHSPRS) becomes eligible to retire or after a previously retired PERS or SLRP member cancels his or her service retirement and has returned to covered employment and completed the requisite reemployment period for recalculation of benefits (i.e., in excess of six calendar months), he or she may file a Form 16, Advanced Application, with PERS. b. The Form 16 allows the member to pre-select an option and designate a beneficiary to receive payment of monthly benefits in the event the member dies prior to retirement. c. To be effective, the Form 16 must be on file in the PERS office at 429 Mississippi St., Jackson, Mississippi 39201 at the time of the member’s death prior to retirement. d. In the event of the member’s death prior to the actual effective date of retirement, benefits based on a Form 16 on file with PERS will become effective the first of the month following the member’s death. 6. Effect of Death on Service Retirement Application

a. If a member dies before the effective date of retirement and has a valid Advanced Application on file with PERS, benefits will be paid in accordance with the Advanced Application. If a member dies before retirement and has no valid Advanced Application on file, benefits will be paid in accordance with the applicable law. b. If a member dies on or after the effective date of retirement but before benefits have begun and he or she has a completed Form 9A SRVC and Form 9S on file with PERS, benefits will be paid in accordance with the Form 9A SRVC and Form 9S. If both forms are not on file with PERS at the time of the member’s death and before benefits have begun, the application will be considered void and benefits paid in accordance with the applicable law. c. If a member of PERS or SLRP dies after having canceled his or her service retirement but before completing the requisite reemployment period for recalculation of benefits (i.e., in excess of six calendar months), benefits will be paid to the lawfully designated beneficiary(ies) in accordance with the optional benefit payment plan in effect immediately prior to the cancellation of the service retirement allowance. d. If a member of PERS or SLRP dies with a valid Advanced Application on file with PERS after having canceled his or her service retirement and after having completed the requisite reemployment period for recalculation of benefits (i.e., in excess of six calendar months), benefits will be paid in accordance with the Advanced Application. If a member of PERS or SLRP dies without an Advanced Application on file with PERS after having canceled his or her service retirement and after having completed the requisite reemployment period for recalculation of benefits, benefits will be paid in accordance with the applicable law irrespective of any previous optional benefit payment plan selection. 7. Effect of Death on Disability Retirement Application a. If a vested member who has filed a claim for disability benefits dies prior to the review and determination of his or her claim by the PERS Medical Board, his or her beneficiary or beneficiaries shall be eligible for death benefits in the form of spouse/survivor benefits or a refund of contributions, unless a Form 16 has been completed by the member prior to death and is on file with PERS. b. If a vested member who has filed a claim for disability benefits dies after his or her claim has been approved by the PERS Medical Board but before his or her effective date of disability retirement, his or her beneficiary or beneficiaries shall be eligible for death benefits in the form of spouse/survivor benefits or a refund of contributions, unless a Form 16 has been completed by the member prior to death and is on file with PERS. c. If a vested member who has filed a claim for disability benefits dies after his or her claim has been approved by the PERS Medical Board and on or after the effective date of disability retirement but before benefits have begun, his or her beneficiary or beneficiaries shall be entitled to benefits in accordance with the option selected by the member on the disability retirement application. 8. Acceptable Proof of Age a. The primary proof of age is the applicant’s birth certificate.

b. Any document that requires a birth certificate prior to issuance would also be considered a primary proof of age, such as a copy of the applicant’s: i. passport; ii. valid driver license; iii. Social Security records, if the applicant is already receiving Social Security benefits; or iv. school census record showing the applicant’s age when attending as a student. c. If an applicant applied for a copy of his or her birth certificate and was advised by the Office of Vital Statistics that his or her birth certificate is not available, the following, listed in the order of preference, may be acceptable as alternative proof of the applicant’s age: i. his or her child’s birth certificate that shows the applicant’s age at the time of the child’s birth; ii. his or her Department of Defense Form DD214 from the United States Armed Forces; iii. a statement from the Social Security Administration showing the applicant’s date of birth as established in their records; iv. a copy of his or her voter registration form, provided the form is at least five years old and shows the applicant’s age at the time of registration; v. a statement from the United States Bureau of Census showing the applicant’s date of birth as established in their records; or vi. a copy of his or her baptismal record notarized by a Notary Public.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Withdrawal from Service or Termination from Service Section 25-11-103 (aa) defines “withdrawal from service” or “termination from service” as the complete severance of employment from state service of an employee by resignation, dismissal, or discharge.

For purposes of setting the effective date of retirement, withdrawal from service or termination from service shall mean the cessation of the employee/employer relationship as characterized by resignation or termination from employment, with or without cause. While a member may not be performing the duties of the job, if the member has not resigned or been terminated from employment by the employer, the member is still considered employed. Where the member is on authorized leave with or without pay, such member is considered an employee and thus not terminated from employment for purposes of setting the benefit effective date.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Changing the Optional Benefit Payment Plan before Receipt of a Retirement Benefit No change in the option selected shall be permitted after the member’s death or after the member has received a retirement benefit except as provided in Section 104. This prohibition extends to a member’s option to receive a refund of the amount of accumulated employee contributions and interest in lieu of receiving a retirement benefit. For purposes of this Regulation, “receipt of a retirement benefit” means negotiating or cashing a benefit payment. Except as specifically provided by law, a member may not change an option after 90 days from the date the first benefit payment is issued even if such payment is not negotiated or cashed.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Changing the Optional Benefit Payment Plan after Receipt of a Benefit Payment 1. The option selected on the Service Retirement, Disability, or Survivor Application may not be changed after receipt of a benefit payment except as provided below or otherwise provided by law. a. A retired member who is receiving a reduced retirement allowance under Option 2, Option 4, or Option 4-A and whose designated beneficiary predeceases him or her, or whose marriage to a spouse who is his or her designated beneficiary is terminated by divorce or other dissolution may elect to cancel his or her reduced retirement allowance and receive the maximum retirement allowance for life in an amount equal to the amount that would have been payable if the member had not elected Option 2, Option 4, or Option 4-A. That election must be made in writing and filed in the PERS office on Form R, Application for Recalculation of Benefits. Any such election shall be effective the first of the month following the date the election is received by PERS, provided that all other required documents are received in the PERS office no later than 90 days following the receipt of the Form R. However, the election to pop-up to the maximum retirement allowance after the death of a retired member’s designated beneficiary may be applied retroactively for not more than three months, but no earlier than the first of the month following the date of the death of the beneficiary. Recalculation of the cost-of-living adjustment based on the new benefit amount will be effective July 1 of the following fiscal year. b. A retired member who is receiving the maximum retirement allowance for life or a retirement allowance under Option 1 and who marries after his or her retirement may elect to cancel his or her maximum retirement allowance and receive a reduced retirement allowance under Option 2, Option 4, or Option 4-A to provide continuing lifetime benefits to his or her spouse. That election must be made in writing and filed in the PERS office on Form R, Application for Recalculation of Benefits, no earlier than the date of the marriage and no later than one year from the date of the marriage. Any such election shall be effective the first of the month following the date the election is received by PERS, provided that all other required documents are received in the PERS office no later than 90 days following the receipt of the Form R. Recalculation of the cost-of-living adjustment based on the new benefit amount will be effective July 1 of the following fiscal year. c. A retired member of PERS or SLRP who is reemployed and becomes a contributing member for a period of time that exceeds six calendar months may have his or her benefit recomputed under the same or a different option as provided in Section 108 of Regulation 34, Reemployment After Retirement.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Effect of Pending Service Credit Transactions on Qualification for a Benefit and on the Effective Date of Benefits 1. The right of a member to repay a refund, to purchase service credit, or to pay an adjustment for unreported wages or service credit belongs only to the member and ceases with the member’s death or retirement.

2. A member who wishes to repay a refund to establish previously forfeited service credit must do so before his or her death or before his or her effective date of retirement. Where a member is in the process of repaying any part of a refund, the effective date of retirement cannot be established until the payment is received by PERS. 3. The payment of an adjustment for unreported income and/or service credit based on unreported wages and/or service or for the purchase of optional service credit must be completed prior to the death or the effective date of retirement of the member. If a member is in the process of purchasing service credit based on a reporting error adjustment or purchasing optional service credit at the time of retirement, the effective date of retirement cannot be established until the purchase is completed. 4. The payment for any adjustment for underreported income required to award or retain service credit must be completed prior to the death or effective date of retirement of the member. If a member is in the process of paying contributions and interest at the time of retirement due to an underreporting of earnings, the effective date of retirement cannot be established until the purchase is completed. However, in the case of elected fee officials, benefits can be initiated prior to the complete reporting of the final year’s wages and contributions. If, however, full contributions are not remitted to PERS within 90 days following the due date of the fee official’s final annual financial report as prescribed by law, PERS may suspend benefits until such time as all contributions and interest, if any, due are made. 5. All rights to purchase retroactive service credit or repay a refund as provided in Miss. Code Ann. § 25-11-101 et seq. (1972, as amended) terminate upon retirement. Likewise, the right of a member to make a claim for service credit for prior service, service credit attributable to unused personal (vacation) and major medical (sick) leave days, military service, out-of-state service, service credit for professional leave, and non-covered service as provided in Miss. Code Ann. § 25-11-109 (1972, as amended) ceases with the member’s retirement. Any member who wishes to make a claim for service credit attributable to the above types of service must do so before his or her effective date of retirement. The executive director may, due to extenuating circumstances and at his or her discretion, extend the period for claiming service credit attributable to unused personal (vacation), major medical (sick) leave days, or active duty military service for up to 90 days following the effective date of retirement based on information or documentation provided in a written request from the applicant.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Non-payment of Interest In accordance with Miss. Code Ann. § 25-11-120(4) (1972, as amended), interest shall not be paid on any benefits, including, but not limited to, benefits that are delayed as a result of an administrative determination or an appeal from an administrative determination.

27 Miss. Admin. Code Pt. 210, R. 107 Rule 107

Duty-related death benefits for survivors of public safety officers may be excluded from income Internal Revenue Code Section 101(h) provides that gross income shall not include any amount paid as a survivor annuity on account of the death of a public safety officer (as

such term is defined in section 1204 of the Omnibus Crime Control and Safe Streets Act of 1968) killed in the line of duty: a. if such annuity is provided under a governmental plan that meets the requirements of Section 401(a) to the spouse (or a former spouse) of the public safety officer or to a child of such officer; and b. to the extent such annuity is attributable to such officer's service as a public safety officer. IRC 101(h) provides that this treatment does not apply if the public safety officer's death was caused by intentional misconduct or by his or her intent to end his or her life; if the officer was voluntarily intoxicated at the time of death; if the officer was performing his duties in a grossly negligent manner at the time of death; or if the recipient of the survivor annuity took actions that were a substantial contributing factor to the officer's death.

(History of PERS Board Regulation 35: Adopted November 17, 1971; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007; amended July 1, 2008; amended effective July 1, 2009; amended effective August 1, 2011; amended effective August 1, 2012; amended effective February 1, 2013, amended effective December 1, 2016, amended effective July 1, 2017, amended effective March 1, 2026)

Chapter 36 Eligibility for Membership in the Public Employees’ Retirement System of Mississippi (PERS)

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation clarifies which employees are eligible for coverage and membership service credit in the Public Employees’ Retirement System of Mississippi (PERS).

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Definitions 1. Definition of “Position” Participation in PERS is limited to eligible employees who occupy a covered position with a qualifying governmental entity. Miss. Code Ann. § 25-11-103(s) (1972, as amended) defines “position” as any office or any employment in the state service or two or more of them, the duties of which call for services to be rendered by one person, including positions jointly employed by federal and state agencies administering federal and state funds. 2. Definition of “Employee” “Employee” means any person legally occupying a position in state service and includes the employees of the retirement system. An employee is a person in the service of another where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed. Only employees are eligible for membership in PERS. 3. Definition of “Independent Contractor” An independent contractor is one, who in the exercise of independent employment, contracts to do a piece of work according to his or her own methods and is subject to his or her employer’s control only as to the end product or final result of his or her work. An independent contractor is not eligible for membership in PERS.

4. Definition of “Employer” “Employer” means the State of Mississippi or any of its departments, agencies, political subdivisions, or instrumentalities from which any employee receives his or her compensation. 5. Definition of “State Service” “State Service” means all offices and positions of trust or employment in the employ of the state, or any political subdivision or instrumentality of the state that elects to participate in PERS by way of joinder agreement in accordance with Miss. Code Ann. § 25-11-105(f) (1972, as amended), including the position of elected fee officials of the counties and their deputies and employees performing public services and any department, independent agency, board or commission, and also including all offices and positions of trust or employment in the employ of joint state and federal agencies administering state and federal funds and service rendered by employees of the public schools.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Eligibility for PERS membership 1. To participate in PERS, an individual must be an employee in a covered position with a covered employer and subject to the control of the covered employer as defined in Internal Revenue Service (IRS) guidelines and must satisfy the following requirements: a. Be properly classified as an employee; b. Have compensation properly reported on IRS Form W-2, Wage and Tax Statement; c. Be paid regular periodic compensation (whether hourly, daily, weekly, or monthly); and d. Be treated as an employee for all general purposes, including, but not limited to, eligibility for fringe benefits, payment of employment-related expenses, payroll tax withholding, etc.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Eligibility for Membership Service Credit 1. To receive service credit for any month, a member must be employed in a position in which the employee works the equivalent of at least half the normal workload for the position and earns at least half the normal compensation for the position in any month. Reference PERS Board Regulation 25, Eligibility of Part-time Employees for State Retirement Annuity Service Credit. 2. Any person who works half time or more based on a full-time equivalent position and whose employment is anticipated to exceed four and one-half consecutive months shall be covered, whether probationary or otherwise. a. Requirements for general, non-elected employees i. For non-elected, non-school employees and school employees where the full- time equivalent workload is based on 40 hours per week, creditable service is only allowed for employment in a position in which the employee performs services and receives compensation for not less than 20 hours per week or a total of 80 hours per month. Except as otherwise provided by law, no creditable service shall be allowed for service when the employee is not paid for at least 20 hours of service per week or for a total of 80 hours per month.

ii. For non-elected school employees where the full-time equivalent workload is based on 35 hours per week, creditable service is only allowed for employment in a position in which the employee performs services and receives compensation for not less than 17.5 hours per week or a total of 70 hours per month. iii. For school employees employed pursuant to a contract, the employee must substantially complete the legal school term in order to receive credit for a full year of service. “Substantial completion of the legal school term” is defined as the employee completing the full school term and receiving at least 11/12 th

(91.67 percent) of the contract salary for the full school term. For school employees employed pursuant to a contract who do not substantially complete the legal school term, service credit will be awarded in monthly increments. iv. Except as otherwise provided by law, no service credit shall be awarded to any non-elected employee where the compensation received does not equal or exceed minimum wages as provided in the Fair Labor Standards Act of 1938, as amended. b. Requirements for elected officials State-wide and district-wide elected officials and local elected officials, including fee-paid elected officials, not excluded by a joinder agreement or by law, who are compensated on an annual or monthly salary, shall be deemed to be full-time employees in a covered position eligible for membership service credit.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Positions excluded from coverage 1. An appointed or elected official compensated solely on a per diem basis is not eligible for membership in PERS and thus not eligible for membership service credit. This includes school board members who are specifically excluded from PERS membership pursuant to Miss. Code Ann. § 37-6-13 (1972, as amended) and who may elect to receive either a per diem or a monthly salary. 2. Employees whose positions are excluded from coverage by way of a joinder agreement are not eligible for membership in PERS and thus not eligible for membership service credit. 3. Students of any state educational institution employed by any agency of the State for temporary, part-time, or intermittent work as described in PERS Board Regulation 37, Eligibility of Student Employees for Membership in Retirement Annuity Coverage, are not eligible for membership in PERS and thus not eligible for membership service credit. 4. Patients or inmate help who work in state charitable, penal, or correctional institutions are not eligible for membership in PERS and thus not eligible for membership service credit. 5. Persons whose employment is temporary or intermittent in nature and who are not employed at least four and one-half consecutive months shall not be in a covered position and shall not be covered by PERS. However, this limitation shall not apply to any individual who is already in a covered position under PERS either with the same or another covered agency. 6. Any employee engaged on a day-to-day basis to replace another employee who is temporarily absent shall be considered a substitute employee serving in temporary

and intermittent employment and shall not be covered under PERS. An employee engaged to fill a vacant position (including a position vacated by an extended leave of absence) is not considered a substitute employee if such employment is for a period of four and one-half consecutive months or longer and therefore must be covered under PERS. 7. Contract personnel employed by state agencies pursuant to the authority granted under Miss. Code Ann. § 25-9-120(1) (1972, as amended) are specifically excluded by law from participation in PERS.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Effect of Dual Employment on Reportable Earnings and Membership Service Credit 1. Effective July 1, 1999, any member in a covered position, as defined by PERS laws and regulations, who is also employed by another covered agency or political subdivision shall have the earnings of that additional employment reported to PERS provided the employee occupies a position that would otherwise be covered if the employee worked and was paid for a sufficient number of hours as set forth in this regulation. The wages from the second position are reportable to PERS if the second position is independently covered under PERS or if the second position is less than half time, but would otherwise be covered independently if the employee worked the requisite number of hours. 2. PERS law provides that not more than one year of service is creditable for all services rendered in any one fiscal year. Where a member holds two or more covered positions simultaneously, as defined in this section, PERS can grant creditable service, including membership service credit and credit for unused leave, on only one such position. A member may be covered in two positions with two different employers where both employers provide leave benefits. While the wages of both covered positions are required to be reported to PERS, no more than one year of service credit will be granted during the year regardless of the number of positions held. In addition, upon retirement, PERS can grant additional retirement service credit for accumulated unused leave from only one position. 3. Where a position is expressly excluded by law or where the position is expressly excluded by joinder agreement, wages from the second expressly excluded position shall not be reported to PERS. In no case should compensation paid to an individual as an independent contractor be reported to PERS.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Work requirement exception for members employed as of July 1, 1992 Effective July 1, 1992, any employee employed in a position in which he or she receives compensation for less than 20 hours per week or a total of 80 hours per month, or in which school personnel receive compensation for less than half-time for the academic year, shall not be, or become a member, except that any active member employed in such position on July 1, 1992, may continue as an active member so long as he or she is employed in such position.

27 Miss. Admin. Code Pt. 210, R. 107 Rule 107

Work requirement exception for members performing professional services Any active member employed on July 1, 2002, by a covered employer to perform professional services and who participates in PERS based on the performance of such

services will continue to be an active member for as long as he or she is employed in such position. This provision applies to an individual, not a firm of individuals, employed as an employee on a regular basis to provide professional services, such as legal or engineering services, to a participating employer. Determination of coverage eligibility is first subject to the authority of the employer to employ such professional. If the employer has the authority to employ the professional in a state service position as defined in Section 101.5 of this regulation and if the professional is determined to be an employee by using the guidelines expressed by the IRS, the professional hired on or after July 1, 2002, is subject to the same participation criteria, including the prerequisite minimum number of hours worked and compensation received, as any other employee.

27 Miss. Admin. Code Pt. 210, R. 108 Rule 108

Determination of Employee Status The employer has the responsibility for the proper employment classification of an individual as an employee or independent contractor. PERS uses the guidelines published by the IRS as reflected in Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for determining worker status. If, based on the facts, it is determined that an employer has made an error in classification, PERS will require the employer to correct any reporting error resulting from the misclassification.

27 Miss. Admin. Code Pt. 210, R. 109 Rule 109

Members of Boards and Commissions Members of boards and commissions of various state departments or agencies or commissions who are paid a stipulated monthly salary for their services are considered as employees in state service for purposes of coverage under PERS unless the position is specifically excluded by law or joinder agreement. Conversely, members of boards and commission who are paid solely on a per diem and expense basis are not considered as in state service within the meaning of this term as it applies to employment of the state. Reference PERS Board Regulation 6, Coverage of Members of Boards and Commissions.

(History of PERS Board Regulation 36: Adopted December 17, 1991; amended effective July 1, 1999; amended effective July 1, 2002; amended June 21, 2005 to be effective August 1, 2005; reformatted and amended August 1, 2007; clarified effective August 1, 2011; amended effective August 1, 2013; amended effective April 1, 2014, amended effective October 1, 2016; amended effective July 1, 2018, amended effective August 1, 2022)

Chapter 37 Eligibility of Student Employees for Membership in Retirement Annuity Coverage

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify when an employee is deemed a student of a state educational institution employed in temporary, part-time, or intermittent work and thus not eligible for retirement coverage. This regulation confirms and reaffirms prior construction of law, practice and procedure of the Public Employees’ Retirement System of Mississippi (PERS). Miss. Code Ann. § 25-11-105 II (1972, as amended) provides that “Students of any state educational institution employed by any agency of the state for

temporary, part-time or intermittent work” shall not become members of PERS, any other provisions of Articles 1 and 3 to the contrary notwithstanding.

27 Miss. Admin. Code Pt. 210, R. 101 Determining status as a student

Any employee having the status of a student who, incidental to such person's status as a student, is employed by the institution being attended, shall be deemed to be in part-time, temporary or intermittent employment and such employment shall not constitute covered employment, except that any active member of PERS who elects to pursue additional education at the institution where employed shall remain an active member, provided such employee continues, without interruption, to be employed in an otherwise covered position. Any person who is employed by any covered agency, other than the educational institution the person is attending, shall be covered in the same manner as non-students. Any student employed by any covered agency for a period of 4½ months or less (i.e. summer employment) is employed on a temporary basis and shall not be covered by PERS.

1. Students in Work Study Program

Students employed by any educational institution pursuant to a Work Study Program and who must be full-time students at the institution, are part-time employees and are not in covered service.

2. Graduate Assistants

Student graduate assistants who work while attending the educational institution where they are employed are part-time or temporary employees and such employment is not covered service.

3. Students in Co-Op Program

Co-Op students shall be considered students regardless of the number of months employed and shall not be eligible for membership.

4. Participants in a Paid Internship Program Participants in a paid internship program through a covered employer shall be ineligible for membership in PERS where such participants are required under the terms of the paid internship program to be enrolled as full-time undergraduate or graduate students during the regular school term in a program as described in Miss. Code Ann. § 7-7-204 (1972, as amended) or any similar program.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Ineligibility of student employee for membership in retirement system. Student employees who are not eligible for membership in PERS will not have deductions made from compensation for that employment, and will not receive service credit for that employment. This provision confirms the practice and policy of PERS and applies for granting of future or prior membership service credit.

(History: Adopted December 17, 1991; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007; clarified April 15, 2009)

Chapter 38 Access to Public Records under Mississippi Public Records Act of 1983

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to outline the provisions under which the Public Employees’ Retirement System of Mississippi (PERS) must respond to requests for information subject to the Mississippi Public Records Act of 1983.

27 Miss. Admin. Code Pt. 210, R. 101 General Provisions

The following procedures are adopted as provided under the Mississippi Public Records Act of 1983, Chapter 424, Laws of 1983 (hereinafter referred to as the Public Records Act), and take effect thirty (30) days after adoption by the PERS Board of Trustees.

1. DEFINITIONS

The following terms have been defined for purposes of this policy: a. Public body: A public body is defined as "any department, bureau, division, council, commission, committee, subcommittee, board, agency, and any other entity of the state or a political subdivision thereof, and any municipal corporation and any other entity created by the Constitution or by law, executive order, ordinance or resolution.” Within the meaning of this regulation, the term 'entity' shall not be construed to include individuals employed by a public body or any appointed or elected public official. b. Public records: Public records are defined as "all books, records, papers, accounts, letters, maps, photographs, films cards, tapes, recordings or reproductions thereof, and any other documentary materials, regardless of physical form or characteristics, having been used, being in use, or prepared, possessed or retained for use in the conduct, transaction or performance of any business, transaction, work, duty or function of any public body, or required to be maintained by any public body." c. Exempt Records: Those records exempt from disclosure under the Public Records Act or other provision of the law. d. Non-exempt records: Those records which are not exempt from disclosure under the Public Records Act or other provision of the law. e. Working day: A working day is any day other than a weekend, State holiday, or a day which by executive order an agency is authorized to be closed. f. Fees: By statute, charges are made on a cost-recovery basis. Any person who desires copies of a public record as defined herein may be charged the actual cost per page of each mechanically reproduced copy. Copies of pages printed on both sides (front and back) shall be considered as two pages.

(i) If the searching, reviewing, or duplicating of documents or the separating of non-exempt material from documents, etc., containing exempt material requires more than one-quarter hour of work, the requesting party may be charged for the work time above one-quarter hour in addition to a mechanical reproduction charge of twenty-five cents ($.25) per page for any copies desired. The charge, if any, for the hours shall be based upon the hourly salary of the lowest paid employee qualified and available to do the job.

(ii) In the event the public record is available in computer files and can be obtained through computer use, the requesting party may be charged the cost for the computer use, including programming time and actual computer time as well as any other costs incurred. This charge, if any, will be determined by PERS. (iii) Requests for any information from records which are stored off site will be subject to additional actual costs as incurred in retrieving such information from, and returning information to, storage.

(iv) Mailing costs calculated at the applicable United States Postal Service rates shall be charged where appropriate. The cost of mailing a notice to third parties via certified mail, return receipt requested, shall be charged to persons requesting the public records. Actual costs for shipment by other than United States Postal Service shall be charged to the person requesting the special shipment. (v) Fees established by this rule may be waived or reduced upon a determination that such waiver or reduction is in the public interest because furnishing the information is considered as primarily benefiting the general public. Persons seeking such waiver or reduction may be requested to submit a written statement setting forth the intended purpose for which the records are requested or otherwise indicate how disclosure would primarily benefit the public. Determinations regarding waiver or reduction of fees under this provision are solely within the discretion of the PERS.

2. PROCEDURES FOR RECORD REQUESTS

a. All requests for access to or copies of a public record shall be in writing and shall specify what record is being sought as well as the name, address, and contact information of the individual and/or organization requesting the record. Requests shall be addressed to the Executive Director of the Public Employees' Retirement System of Mississippi. Request forms are available in the PERS office. b. PERS shall respond in writing within seven (7) working days from the date of receipt of the request. If PERS is unable to produce the requested record by the seventh working day after receipt of the request, PERS will provide a written explanation to the requestor stating that it will be produced and specifying why the records cannot be produced within the seven-day period. Unless otherwise agreed to, PERS shall provide the requested information within fourteen (14) working days of receipt of the original request. Requests for information in storage will be provided within seven (7) days of availability of such records to PERS. Denials shall be in writing and shall contain the specific exemption relied upon for the denial. Copies of all denials shall be maintained on file by PERS for not less than three years from the date denial is made. c. Access to non-exempt records will be allowed in the PERS office during regular business hours, Monday through Friday, 8:00 a.m. to 5:00 p.m., excluding legal holidays, in a manner and to the extent that such access does not interfere with the normal business operations of PERS.

d. If any public record which is held to be exempt from disclosure contains material which is not exempt, PERS shall separate or redact the exempt material and make the non-exempt material available for examination and/or copying. e. When fees are appropriate as specified in Section 101.1 of this regulation, the fees must be paid prior to PERS' compliance with the request. Cash, money orders, cashier's checks, personal or company checks will be accepted in payment for fees under Section 101.1.

Payment by personal or company check will be accepted subject to clearance within seven (7) working days. f. Non-exempt records furnished to PERS by third parties which are not public bodies as defined in the Public Records Act, but which contain trade secrets or confidential commercial or financial information will not be released until notice to the third parties has been given. The records shall be released in seven (7) days from expiration of the time as provided in 101.3, unless the third party obtains a court order protecting the records as confidential. g. The Executive Director of PERS or his or her designee has the authority to specify the mode, manner, time and place of access.

3. EXEMPT RECORDS

Any record expressly exempt from the Records Act, or any record specifically declared to be confidential or privileged by any Mississippi statute, case law, or constitutional provision, shall not be submitted to mandatory inspection and copying. Those records which are specifically exempt by statute and which fall within the possession of PERS include, but are not limited to, the following: a. The name, address or contents of any individual member records without the prior written consent of the individual to whom the record pertains; b. Personnel records and applications for employment, except those which may be released to the person who made the application or with the prior written consent of the person who made the application. This shall not be construed to prohibit the disclosure of the following information about employees: name, date of employment, length of employment, qualifications, and salary; c. Test questions and answers which are to be used in employment examinations; d. Letters of recommendation respecting any application for employment;

e. Test questions and answers which are used in future academic examinations; f. Letters of recommendation regarding admission to any educational agency or institution; g. Records in PERS possession which represent and constitute the work product of any attorney representing PERS and which are related to litigation made by or against PERS or any of the retirement programs administered by the Board of Trustees of PERS or in anticipation of prospective litigation, including all communications between such attorney made in the course of an attorney/client relationship; and,

h. Appraisal information which concerns the sale or purchase of real or personal property for public purposes prior to public announcement of the purchase or sale, where the release of such records would have a detrimental effect on such sale or purchase. i. Records in PERS possession which would disclose information about any individual’s tax payments or status. j. Documentary material or data made or received by PERS which consists of trade secrets or commercial or financial information that relates to PERS if the disclosure of the material or data is likely to impair PERS’ ability to obtain such information

in the future, or is likely to cause substantial harm to the competitive position of the person or entity from whom the information was obtained.

Records furnished to PERS by third parties which contain trade secrets or confidential commercial or financial information shall not be subject to inspection, examination, copying or reproduction until notice to said third parties has been given, but such records shall be released within a reasonable period of time unless the said third parties shall have obtained a court order protecting such records as confidential. For the purpose of providing advance notice to submitters of trade secret or confidential commercial or financial information, which is included in records furnished by PERS by another party, thirty (30) days from the submitter’s receipt of written notice shall be deemed a reasonable time for the disclosure of the requested records in the absence of a court order to the contrary.

(History: Adopted October 22, 1991; reformatted August 1, 2007; amended effective July 1, 2010)

Chapter 40 Insurance Advisory Committee

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to establish the Retiree Insurance Advisory Committee of the Public Employees' Retirement System of Mississippi by the Board of Trustees for the purpose of providing information and recommendations to the Board relative to the health and life insurance need of the retirees of the Public Employees' Retirement System of Mississippi and other systems administered by the Board.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Membership on the Insurance Advisory Committee The Committee shall consist of seven members, each retired under a system administered by the Public Employees' Retirement System of Mississippi and at least one of whom shall be a retiree covered by the State Employees' Health Plan. The Executive Director of the Public Employees' Retirement System shall make all appointments to the Committee with the approval of the Board of Trustees. Terms of office shall be for a period of three

(3) years and no committee member shall serve more than two (2) consecutive terms. Service for a portion of an unexpired term shall not count as a full term. The initial appointments for the Board of Trustees, which shall begin on November 1, 1991, shall be as follows:

Two terms for one year expiring October 31, 1992 Two terms for two years expiring October 31, 1993 Three terms for three years expiring October 31, 1994

(After October 31, 1993, the last statement shall read: The term of office shall begin on November 1 of the year of the appointment.)

27 Miss. Admin. Code Pt. 210, R. 102 Selection of Committee Officers

The Committee shall elect by a majority vote of those present a Chairman who shall serve for a term of one year and shall be eligible for reelection to that position. The Committee may select other officers as it considers appropriate for similar terms of service not to exceed one year and the Committee may reelect any officer it so chooses.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Committee Meetings All meetings shall be at the call of the Chairman and should be at least annually. Four members present shall constitute a quorum for the transaction of business for the Committee. Committee members shall be reimbursed for mileage required to attend official committee meetings in accordance with the Public Employees’ Retirement System Travel Policies.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Committee Reports to the Board of Trustees The Committee shall make reports to the Board of Trustees on an annual basis and will coordinate its activities through the Executive Director or his designee.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Filling a vacancy on the Committee Any vacancy in the office of the committee member shall be declared to the Executive Director by the Committee at the occurrence of such vacancy. The vacancy shall be filled by appointment made by the Executive Director of the Public Employees' Retirement System, and approved by the Board of Trustees, for the unexpired portion of the term of office. (History: (Adopted December 17, 1991; amended April 5, 1997; reformatted August 1, 2007, amended effective February 1, 2019)

Chapter 41 PERS Marketing Policy and Guidelines - Deferred Compensation Plan

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to provide enrollment guidelines for the Third Party Administrator to be used in presenting information to and enrolling employees in the Deferred Compensation Plan.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Objective of guidelines The marketing objective is to provide eligible employees a clear understanding of the Deferred Compensation Plan as a supplement to the PERS Retirement Plan. In order to assure that all eligible employees have all the information needed to make informed and unbiased decisions, they should be encouraged to attend group meetings and talk to their Deferred Compensation Registered Representative.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Responsibilities of PERS and the Deferred Compensation Plan Administrator The Deferred Compensation Plan Administrator should be furnished a list of all new eligible employees. The Deferred Compensation Administrator should be permitted to contact the eligible employee to request a mutually agreed upon time for a personal presentation, if the eligible employee desires such a meeting. No high-pressure sales methods will be applied by the Deferred Compensation Registered Representatives. All presentation materials presented to

eligible employees by the Deferred Compensation Registered Representatives will be approved by PERS.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Guidelines The Deferred Compensation Registered Representatives will work within the following marketing guidelines set forth by PERS.

1. PERS has the authority over coordination of the Deferred Compensation marketing effort. 2. The employer has the ultimate responsibility for informing each employee of his/her eligibility for the Deferred Compensation Plan. The Deferred Compensation Administrator will assist in meeting this requirement through group meetings sponsored by the employer and conducted by the Deferred Compensation Administrator. Representatives of the Plan will be available for these group meetings and/or additional meetings as requested by the employer or PERS. 3. Each eligible employer may provide the Deferred Compensation Administrator with the name(s) or the contact person(s) by department or location. In turn, the Deferred Compensation Administrator will provide the employer contacts with the names of their respective Deferred Compensation Registered Representatives. 4. The PERS executive director may provide the Deferred Compensation Administrator with contact, wages, date of birth, and other sensitive personally identifiable information for eligible PERS members, provided the Deferred Compensation Administrator signs a statement that any information provided by PERS with regard to its members must be kept confidential and will not be shared with or released to any third party or used in any way except for the express purposes of presenting information to and enrolling employees in the Deferred Compensation Plan. 5. The Deferred Compensation Administrator's representatives may contact eligible employers and employees through brochure distribution, mail-outs, email, at employer sponsored meetings, or through other approved communications. 6. Gifts or any other monetary award or gratuity to employees or employers under the Deferred Compensation Plan contract are strictly prohibited. 7. No products other than PERS authorized Deferred Compensation products may be marketed by the Deferred Compensation Administrator's representatives. 8. PERS must approve all company sales literature and explanatory materials before any such materials may be distributed. 9. Each employer will make available to eligible employees the approved plan literature with the contact information and website of the Deferred Compensation Administrator.

(History: Adopted September 6, 1991; reformatted August 1, 2007, amended effective December 1, 2019, amended effective July 1, 2023)

Chapter 42 Rules of Hearing Practice and Procedure before the Board of Trustees of the Public Employees’ Retirement System of Mississippi

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

This regulation governs all practice and procedure before the Board of Trustees of the Public Employees' Retirement System of Mississippi in all matters arising under all retirement plans or programs administered by the Board, except where specifically otherwise provided by the statutes of such programs or retirement plans, for which a hearing is requested in any contested case.

27 Miss. Admin. Code Pt. 210, R. 101 Construction of regulation

Where good cause appears, not contrary to statute, the Board may permit deviation from these rules insofar as it may find compliance therewith to be impracticable or unnecessary.

27 Miss. Admin. Code Pt. 210, R. 102 Definitions

The following words and phrases as used in this Regulation, unless a different meaning is plainly required by the context, have the following meanings:

1. “Board” means the Board of Trustees of the Public Employees’ Retirement System of Mississippi. 2. “Executive Director” means the executive director of the Public Employees’ Retirement System of Mississippi.

2. “Hearing Officer” or “Committee” means the Disability Appeals Committee or the Claims Committee of the Board of Trustees of the Public Employees’ Retirement

System of Mississippi, as applicable. 4. “PERS” means the Public Employees’ Retirement System of Mississippi. 5. “Presiding Officer” means the person who presides over the appeals hearing.

a. The Presiding Officer for the Disability Appeals Committee will be a voting member of the Committee.

b. The Presiding Officer for the Claims Committee may be a representative from the Office of the Attorney General, other than the PERS Attorney General Representative, who may also act as a non-voting legal advisor to the Committee during deliberations on the outcome of the hearing.

27 Miss. Admin. Code Pt. 210, R. 103 Perfection of appeal to the Board by timely filing

1. All appeals to the Board shall be initiated by filing a written Notice of Appeal on a form prescribed by the Board.

2. A Notice of Appeal to the Board must be filed within 60 days after the date a person receives written notice of the administrative decision of the Executive Director or decision of the Medical Board, as applicable. Such notice may be filed by mail or in person. Failure to file a completed Notice of Appeal within the time specified shall be a bar to the filing of such appeal.

3. Once an appeal is timely filed, it shall be assigned a docket number.

27 Miss. Admin. Code Pt. 210, R. 104 Filing of pleadings and other documents

1. All documents relating to any proceeding pending or to be instituted before the Board shall be filed with the Executive Director, or his or her designee, at 429 Mississippi Street, Jackson, Mississippi 39201-1005.

2. All documentation filed by any party to an appeal must specify the assigned docket number and should be directed to the Executive Director, or his or her designee.

27 Miss. Admin. Code Pt. 210, R. 105 Exhaustion of remedies

No person may file an appeal with the Board until there has been an administrative decision by the Executive Director or, in the case of disability appeals, a decision by the Medical Board. Failure to exhaust administrative remedies, as herein provided, shall constitute a bar to any action in the courts, to the extent consistent with the laws of this state.

27 Miss. Admin. Code Pt. 210, R. 106 Judicial review

After an Order has been issued by the Board, an aggrieved party may file an appeal with the Circuit Court of the First Judicial District of Hinds County, Mississippi. Any such Notice of Appeal must be filed with the Hinds County Circuit Clerk within 30 days of the entry of the Order of the Board being appealed. Failure to file a Notice of Appeal within the time frame specified will act as a procedural bar and will leave the courts without jurisdiction to hear the appeal.

27 Miss. Admin. Code Pt. 210, R. 107 Assignment of Hearing Officer, setting of hearing and appearance

1. The Board may, by Order entered in its minutes, appoint a committee of the Board or such other qualified personnel as Hearing Officer.

2. The Executive Director shall set a date and time for the hearing. Unless otherwise ordered, hearings shall be held in the Hearing Room of the PERS Building located at 429 Mississippi Street, Jackson, Mississippi.

3. A Notice of Hearing shall be sent via United States mail to the appealing party and legal representative, if applicable.

4. If an appealing party fails to appear at the hearing, the Presiding Officer may proceed with the hearing and prepare a proposed statement of facts and recommendation to the Board based on the evidence presented at such hearing.

27 Miss. Admin. Code Pt. 210, R. 108 Continuances and rescheduling of hearings

1. Any request for a change or delay of a scheduled hearing must be made to the Executive Director in writing.

2. Continuances requested by any party shall be granted within the discretion of the Presiding Officer or Executive Director only for good cause shown.

3. If a continuance is granted upon a request made less than 14 days prior to a scheduled hearing, the requesting party will be responsible for paying any costs of rescheduling. Payment must be received before a new hearing date will be scheduled. 4. When a continuance is granted or a hearing is rescheduled or relocated for any reason, each party shall be responsible for notifying their witnesses of the date, time and location of the hearing.

27 Miss. Admin. Code Pt. 210, R. 109 Witnesses for non-disability-related appeals

In an appeal, other than one from a decision of the Medical Board, each party shall file a list of witnesses who will testify at the hearing, as well as a brief summary of testimony to be given. Each party must file a witness list in compliance with this regulation no later than 10 days prior to the date of the hearing.

1. The list shall contain for each witness proposed to be called by the appealing party: a. Name;

b. Relationship to the appealing party (e.g., co-worker, supervisor, spouse, etc.); and c. Brief summary of testimony to be given. 2. The list shall contain for each witness proposed to be called by PERS: a. Name; b. Employer; c. Title or position; and d. Brief summary of testimony to be given.

27 Miss. Admin. Code Pt. 210, R. 110 Rule 110

Conduct of hearing 1. Each party may be represented by an attorney.

2. At any hearing, the parties shall be entitled to enter an appearance (in person or by an attorney), present evidence, examine and cross-examine witnesses, make arguments, and generally participate in the conduct of the proceeding.

3. The Presiding Officer shall have the authority to administer oaths and affirmations.

4. The appealing party may request that attendance at such hearing be limited to individuals essential to the efficient conduct of the hearing, including but not limited to the claimant, attorneys, witnesses, employer representatives, Presiding Officer, Committee members, court reporter, and PERS administrative and support staff as are necessary. The filing of an appeal shall constitute a waiver of confidentiality only to the extent necessary to process and review the claim.

5. The Presiding Officer may clear the hearing room of witnesses not under examination. PERS may have a representative (in addition to its attorney) remain in the hearing room during the entire course of the hearing, even though the representative may testify. The appealing party may remain in the hearing room throughout the hearing.

6. The matter should be heard as directed by and by sole discretion of the Presiding Officer.

7. The Presiding Officer or any Committee member may question a witness during any part of the direct or cross-examination of such witness.

8. The Presiding Officer shall have the authority to maintain the decorum of the hearing and shall take reasonable steps to do so when necessary, including clearing the hearing room of any person who is disruptive.

9. The Committee may also call upon any party or staff of PERS for further material or relevant evidence upon any issue. However, all parties at interest shall be given a reasonable opportunity to inspect such documents made a part of the record. Further, in the case of disability appeals, the Committee shall have the authority to defer a decision to request a medical evaluation or test or additional existing medical records not previously furnished by the claimant. Failure to provide the additional existing medical records within 90 days of notification of such request or refusal to submit to a medical evaluation or test will result in a recommendation being made by the Committee based on the available information. If, prior to the expiration of the 90-day period, an extension of time is requested in writing, the Executive Director may extend the 90-day period provided the applicant can demonstrate that failure to submit to the medical evaluation or test or to provide the additional information was due to circumstances beyond his or her control.

10. At the conclusion of all testimony, the Committee will adjourn and conclude the hearing. Thereafter, the Committee will retire to deliberate, after which the Committee will

submit its proposed statement of facts, conclusions of law and recommendation, where applicable, solely for consideration by the Board. The Board has the sole authority to issue a decision relative to all claims on appeal by rendering its Order.

27 Miss. Admin. Code Pt. 210, R. 111 Evidence

1. The hearing shall be informal and formal rules of evidence shall not apply. In conducting a hearing, the Committee shall not be bound by the formal rules of evidence and no informality in any proceedings or in the manner of taking of testimony shall invalidate any order or decision of the Board.

2. All testimony to be considered by the Committee, except matters noticed officially or entered by stipulation shall be sworn testimony. Before giving testimony, each person shall swear or affirm that the testimony about to be given before the Committee shall be the truth, the whole truth and nothing but the truth.

3. The Presiding Officer will accept evidence and rule as to the admissibility of evidence that has not been submitted prior to the decision which is the subject of the appeal. All relevant evidence is admissible, but the Presiding Officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by considerations or undue delay, or needless presentation of cumulative evidence. The Presiding officer shall exercise reasonable control over the manner and order of cross-examining witnesses and presenting evidence.

4. Documents received into evidence by the Presiding Officer shall be marked and filed as a part of the record.

5. A copy of the composite exhibit to be introduced on behalf of PERS will be made available to the appealing party prior to the hearing. PERS may charge a fee for providing such copy in accordance with any applicable fee schedule adopted by the Board.

6. Summations of the evidence and the law may be heard in the discretion of the Presiding Officer.

27 Miss. Admin. Code Pt. 210, R. 112 Record of hearing

PERS will ensure that all hearings are recorded by electronic or stenographic means. The method used to record each hearing shall be determined by PERS.

In response to a written request for a transcript of proceedings recorded by electronic means, PERS will provide an audio recording of the hearing. The requesting party must contact a certified court reporter to transcribe and certify, under penalty of perjury, on the transcript that he or she heard the witness sworn on the recording and that the transcript is a correct writing of the recording. It is the responsibility of the party requesting the transcript to pay any costs associated with preparation of the requested transcript.

Any party desiring a transcript of a hearing recorded by stenographic means shall make request of the court reporter in attendance and shall be responsible for the payment of the cost of preparation of the transcript.

In the event the claimant appeals the decision of the Board to the Circuit Court of Hinds County, a certified copy of the transcript must be provided to the Executive Director with cost to be borne by the appealing party.

27 Miss. Admin. Code Pt. 210, R. 113 Order to be filed upon completion of hearing

After all evidence is heard or received and the hearing is completed and the Committee’s deliberation is concluded, the Committee shall certify the record described in Miss. Code Ann. § 25-11-120 (1972, as amended) to the Board. The record shall include the Committee’s proposed statement of fact and recommendation. In no case – other than those specifically left open for additional documentation requested by the Committee – shall evidence received after the hearing be included as part of the record for review by the Board. The Board shall receive the record and make its determination based solely on matters contained therein. Such determination shall be final. A copy of the Order shall be sent by the Executive Director to each party or his or her attorney.

27 Miss. Admin. Code Pt. 210, R. 114 Service of notices and Orders by the Board

All notices and orders required to be served by the Board, the Hearing Officer or the Executive Director may be served by mail and service thereof shall be complete when a true copy of such document, properly addressed and stamped, is deposited in the United States mail.

27 Miss. Admin. Code Pt. 210, R. 115 Rule 115

Amendment, validity, and enforcement of rules 1. The Board may, from time to time, amend these rules or promulgate new rules.

2. If any one or more of these rules is found to be invalid by any court of competent jurisdiction, such finding shall not affect the validity of any other of these rules.

3. The Board shall have the authority, duty and responsibility to abide by and enforce these rules.

27 Miss. Admin. Code Pt. 210, R. 116 Fees

The Board may, by order entered in its minutes, assess and collect fees to offset costs related to the conduct of hearings, including, but not limited to, court reporter fees, medical testimony fees, copying costs, etc.

(History of PERS Board Regulation 42: Adopted September 20, 1993; amended December 15, 1997; amended October 1, 1998; amended December 1, 1999; amended July 1, 2002; amended January 19, 2004; amended and reformatted August 1, 2007; amended October 1, 2009; amended effective April 1, 2010; amended effective August 1, 2014; amended effective June 1, 2015; amended effective December 1, 2017)

Chapter 43 Interest Rates Used in the Calculation of Repayment of a Refund and for Correction of Administrative Reporting Errors

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to clarify the interest rates used in calculating the repayment of a refund of contributions or in reporting paying interest on unreported contributions.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Interest rate of fiscal years prior to July 1, 1994 For fiscal years prior to July 1, 1994, interest, as required in Miss. Code Ann. §25-11-117 (1972, as amended), for the repayment of a refund, or as required in Miss. Code Ann. §25-11-105 (1972, as amended) for the payment of an adjustment for non-reported covered service and/or compensation due to

administrative error, shall be calculated on the basis of the interest rate adopted by the PERS Board of Trustees. This interest rate was based on the actuarial assumed interest rate of the System.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Interest rate for fiscal years beginning on and after July 1, 1994, through June 30, 1998 For the fiscal year beginning on and after July 1, 1994, through June 30, 1998, interest as required in Miss. Code Ann. §25-11-117 (1972, as amended), for the repayment of a refund, or as required in Miss. Code Ann. §25-11-105 (1972, as amended) for the payment of an adjustment for non-reported covered service and/or compensation due to administrative error, shall be computed on the basis of actual annual total rate of return on investments of the System as reflected in the System's annual report, but in no event will interest so charged be less than the rate of interest credited to the member's account in accordance with § 25-11-121(7).

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Interest rate for fiscal years beginning on and after July 1, 1998 For each fiscal year beginning on and after July 1, 1998, interest as required above, shall be computed on the basis of the actuarial assumed interest rate of the System. • The assumed rate of return from July 1, 1998 through June 30, 2015 was 8.0%. • The assumed rate of return from July 1, 2015 through June 30, 2021 was 7.75%. • The assumed rate of return from July 1, 2021 through June 30, 2023 was 7.55%. • The assumed rate of return as of July 1, 2023 is 7.0%.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Interest rate to be credited to member’s account upon repayment of refund Effective on and after July 1, 1994, upon payment of a refund or adjustment, as provided for above, the member's account shall be credited with interest as provided in Miss. Code Ann. §25-11-121(7) (1972, as amended), equal to the interest which would have been posted had the member's contributions been in the plan on a continuous basis. Such interest credit shall apply only to periods of time from and after July 1, 1994.

(History: Adopted August 17, 1993; amended June 25, 1998; amended June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007; amended effective December 1, 2015; amended effective December 1, 2021, amended effective July 1, 2024)

Chapter 44 Refund of Member Contributions

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify the conditions under which a refund of member contributions may be made.

27 Miss. Admin. Code Pt. 210, R. 101 Payment of refund of accumulated contributions

Mississippi Code Ann. §25-11-117 (1972, as amended) provides that a refund of accumulated contributions to the credit of the member in the annuity savings account shall be paid within ninety (90) days from the receipt of a properly completed form requesting such payment. Effective July 1, 2011, a refund of accumulated contributions will be issued after final wages and contributions are posted to the member’s account but no later than ninety (90) calendar days from the date of termination from covered employment or from the date of receipt of the properly completed form requesting the refund, whichever is later. Refunds of accumulated contributions shall be processed after receipt of a properly completed PERS Form 5, Member Refund Application, and after the final wages and contributions are posted to the member’s account but no later than after the ninety (90) calendar-day period has lapsed. The ninety (90) day period will be calculated on the basis of the termination date certified by the employer on the PERS

Form 5 or the date of receipt of the Form 5, whichever is later. Upon filing for a refund, where the member is employed by more than one agency, the latest termination date will be used to calculate the ninety (90) day period.

1. Refund upon death of member

The ninety (90) day period shall not apply in the case of a refund due to the death of a member; however, any refund paid to the beneficiary of a deceased member shall not be paid until after final wages and contributions are posted to the member’s account.

2. Refund to member in case of extraordinary and unforeseen financial emergency

Refunds may be issued prior to the ninety (90) day period in case of a documented extraordinary and unforeseen emergency which cannot be satisfied by PERS communication of the anticipated distribution date and amount. The member will be required to submit a request for emergency distribution (refund) on a form prescribed by PERS. An extraordinary and unforeseen emergency is defined as follows: a. Repossession of real or personal property as documented by official notices of such action. b. Foreclosure or eviction from residence as documented by official notice of such action. c. Loss of personal property due to casualty not covered by insurance.

d. Sudden or unexpected illness or accident of member or his or her dependent not covered by insurance. e. Any extraordinary and unforeseen financial emergency not covered in the above items arising as a result of events beyond the applicant’s direct control.

Living expenses, such as utility bills, moving expenses, and unpaid medical bills for routine medical procedures, are not considered extraordinary and unforeseen emergencies.

(History: Adopted August 17, 1993; amended December 15, 1997; Amended June 21, 2005 to be effective August 1, 2005; reformatted August 1, 2007; amended effective July 1, 2011)

Chapter 45A Administration of Disability Benefits under PERS

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to provide the rules to be applied in the administration of disability benefits for the Public Employees’ Retirement System of Mississippi (PERS) and the Supplemental Legislative Retirement Plan (SLRP).

27 Miss. Admin. Code Pt. 210, R. 101 Fees for disability determination

The Board of Trustees shall adopt and maintain a schedule of fees for disability determination services. The schedule of fees will be reviewed on a periodic basis.

27 Miss. Admin. Code Pt. 210, R. 102 Application for disability benefits

1. An active member who has the requisite membership service credit as noted below or an active member who is disabled as a direct result of a physical injury sustained from an accident or a traumatic event caused by external violence or physical force occurring in the performance of duty may file an application for disability benefits. Miss. Code Ann. § 25-11-113 (1)(a) and § 25-11-114 (6) (1972, as amended).

Membership service required to apply for non-duty-related disability benefits:

a. If a member joined PERS before July 1, 2007, the member must have at least four years of membership service credit; or

b. If a member joined PERS on or after July 1, 2007, the member must have at least eight years of membership service credit.

2. Any inactive member who has the requisite membership service credit as noted below is not eligible for disability retirement benefits unless the disability occurs within six months of termination of active service and unless satisfactory medical evidence is presented to establish that the disabling condition was the direct cause of withdrawal from state service. Application for a disability retirement allowance must be filed within one (1) year of termination from active service. This period may be extended by an additional year if it can be factually demonstrated to the satisfaction of the board of trustees that throughout the initial one-year period the member was incapable of applying for benefits by reason of mental or physical impairment as certified by a medical doctor. § 25-11-113 (1)(c)

Membership service required to apply for non-duty-related disability benefits:

a. If a member joined PERS before July 1, 2007, the member must have at least four years of membership service credit; or

b. If a member joined PERS on or after July 1, 2007, the member must have at least eight years of membership service credit. Any inactive member seeking to establish eligibility for non-duty-related disability benefits must have met the applicable vesting period for eligibility at the time he or she withdrew from covered employment.

3. Any member who is or becomes eligible for service retirement benefits under § 25-11-111 while pursuing a disability retirement allowance under § 25-11-113 or § 25-11- 114 may elect to receive a service retirement allowance pending a final determination of eligibility for a disability retirement allowance in accordance with Board Regulation 35, Filing an Application for Monthly Benefits and Establishing an Effective Date of Retirement, Section 101.2.d. In such a case, an application for the disability retirement allowance must be on file with the system before the commencement of a service retirement allowance. If the application for disability benefits is approved, the option selected and beneficiary designated on the retirement application shall be used to determine the disability retirement allowance. If the application is not approved or if the application is withdrawn or voided pursuant to Board Regulation 35, Section 101.2.e, the service retirement allowance shall continue to be paid in accordance with the option selected. No person may apply or reapply for a disability retirement allowance after the person begins to receive a service retirement allowance. No person electing to receive a service retirement allowance while pursuing eligibility for a disability retirement allowance may select Option 6, the partial lump sum distribution option, as provided under Miss. Code Ann. § 25-11-115.

4. Any inactive member who is vested for benefits in accordance with § 25-11- 113 and who has previously applied for and been denied disability benefits or whose application is voided pursuant to § 25-11-113 (1)(f) and Section 105.2 of this Regulation must return to covered service for a period in excess of six calendar months to be eligible to again apply for non-duty related disability benefits. Upon application for non-duty related disability benefits, such member will be required to establish that he or she was, at the time of such employment, physically capable of performing the job for which he or she was hired.

27 Miss. Admin. Code Pt. 210, R. 103 Effect of death on disability application

1. If a vested member who has filed a claim for disability benefits dies prior to the review and determination of his or her claim by the Medical Board, his or her beneficiary or beneficiaries shall be eligible for death benefits in the form of spouse/survivor benefits or a refund of contributions, unless a PERS Form 16, Advanced Application, has been completed by the member prior to death and is on file with PERS.

2. If a vested member who has filed a claim for disability benefits dies after his or her claim has been approved by the Medical Board but before his or her effective date of disability retirement, his or her beneficiary or beneficiaries shall be eligible for death benefits in the form of spouse/survivor benefits or a refund of contributions, unless a PERS Form 16, Advanced Application, has been completed by the member prior to death and is on file with PERS.

3. If a vested member who has filed a claim for disability benefits dies after his or her claim has been approved by the Medical Board and on or after the effective date of disability retirement but before benefits have begun, his or her beneficiary or beneficiaries shall be entitled to benefits in accordance with the option selected by the member on the disability retirement application.

27 Miss. Admin. Code Pt. 210, R. 104 Effective date of benefits

1. The effective date of benefits shall be the first of the month following receipt of a completed application for a disability retirement allowance but in no event before termination from covered service. § 25-11-113 (1)(a)

2. For purposes of determining the effective date of benefits as referenced in Section 104.1 of this Regulation, termination from covered service shall mean the cessation of the employee/employer relationship as characterized by resignation or termination from employment with or without cause. While a member may not be performing the duties of the job, if the member has not resigned or been terminated by the employer, the member is still considered employed and thus ineligible for initiation of disability retirement benefit payments. In cases where the member is on authorized leave with or without pay, such member is considered an employee of the agency, and thus not eligible to simultaneously receive disability retirement benefit payments.

3. A member must terminate from all positions in state service, whether covered or not, to be eligible for any benefit. If a determination is made that a member who is employed in one covered position is disabled from that position, he or she must terminate from all positions in state service, whether covered or not, to receive a disability retirement allowance. If the member does not terminate all state service within 90 days of approval for

a disability retirement allowance, both the disability retirement and the application shall be void.

4. If a member is reemployed by a covered employer in any capacity, including that of an independent contractor, within 90 days from his or her effective date of retirement, or is promised before retiring that he or she will be reemployed following the 90-day separation period, (i) the member shall be considered to have continued in the status of an employee and not to have separated from service, (ii) the retirement allowance will be canceled, and (iii) any retirement allowance payments received by the member shall be repaid to PERS. The member’s wages and contributions will continue to be reported to PERS, provided that the member is employed in a covered position.

27 Miss. Admin. Code Pt. 210, R. 105 Medical determination of eligibility for disability benefits

1. The employer must provide the following information that will be considered by the Medical Board in its determination for eligibility:

a. The job description and duties of the member; § 25-11-113(1)(a)

b. Whether the employer has offered the member other duties without material reduction in compensation; § 25-11-113 (1)(a)

c. Whether the employer has complied with the applicable provisions of the Americans with Disabilities Act in affording reasonable accommodations

that would allow the employee to continue employment; § 25-11-113 (1)(a) and

d. In the case of an application for duty-related disability benefits, the employer shall certify whether, to the best of its knowledge, a physical injury was sustained from an accident or a traumatic event caused by external violence or physical force that occurred in the performance of duty. § 25-11-114 (6)

2. The member shall submit medical evidence of the disability to the Medical Board for review. The Medical Board may require an independent medical evaluation or such other examination or report as is necessary to determine the member’s eligibility for benefits. Failure to provide the requested information within 90 days of such request or refusal to submit to an examination shall result in the member’s application being considered void. The executive director may extend the 90-day period if the applicant can demonstrate that failure to submit to such examination or to provide the requested information or report(s) was due to circumstances beyond his or her control. § 25-11-113 (1)(f)

To be considered eligible for disability benefits, the Medical Board must certify to the Board of Trustees (i) that the member is mentally or physically incapacitated for the further performance of duty, (ii) that such incapacity is likely to be permanent, and (iii) that the member should be retired.

The Board of Trustees does not automatically accept a Social Security Administration disability determination as evidence of disability benefit eligibility. If, however, a Social Security Administration disability benefit determination has been received during the medical evaluation process, such determination along with (i) the supporting medical documentation, (ii) the condition upon which PERS disability benefits are claimed, and (iii) the

facts of the case will be taken into consideration as a part of the Medical Board’s independent evaluation and determination. § 25-11-113 (1)(a)

3. For purposes of § 25-11-113, medical evidence shall be defined as “objective medical evidence,” which means: reports of examinations or treatments; medical signs which are anatomical, physiological, or psychological abnormalities that are observed and documented by medical professionals; psychiatric signs which are medically demonstrable phenomena indicating specific abnormalities of behavior, affect, thought, memory, orientation, or contact with reality; or laboratory findings which are anatomical, physiological, or psychological phenomena that are shown by medically acceptable laboratory diagnostic techniques, including, but not limited to, chemical tests, electrocardiograms, electroencephalograms, X-rays, and psychological tests. Non-medical information not documented by test results, such as an applicant’s description of pain, is not considered objective medical evidence.

4. The applicant is responsible for providing sufficient objective medical documentation to the Medical Board in support of his or her claim for disability. PERS does not have the burden of proving that an applicant is not disabled. The Medical Board shall certify to the Board of Trustees whether, based on the objective medical evidence, the member is mentally or physically incapacitated for further performance of duty and that such incapacity is likely to be permanent and whether, based on all other facts, the member should be retired on a disability allowance. In making this determination, the Medical Board shall use the following definition:

Disability shall be defined as the inability to perform the usual duties of employment or the incapacity to perform such lesser duties, if any, as the employer in its discretion may assign without material reduction in compensation or the incapacity to perform the duties of any employment covered by the PERS that is actually offered and is within the same general territorial work area without material reduction in compensation. § 25-11-

(1)(a) As part of the determination process, the Medical Board shall consider certification from the employer as to whether reasonable accommodations have been requested by the employee and agreed to by the employer as provided under the Americans with Disabilities Act.

For purposes of disability determination, a material reduction in compensation shall be defined as a salary not in excess of 10 percent less than the current salary of the applicant.

5. In applying for duty-related disability benefits, a member must provide medical proof satisfactory to the Medical Board that his or her disability is a direct result of a physical injury sustained from an accident or a traumatic event caused by external violence or physical force occurring in the performance of duty. In addition, permanent and total disability resulting from a cardiovascular, pulmonary, or musculoskeletal condition that was not a direct result of a physical injury sustained from an accident or a traumatic event caused by external violence or physical force occurring in the performance of duty shall be deemed an ordinary disability. A mental disability based exclusively on employment duties occurring on an ongoing basis shall be deemed an ordinary disability. Further, the employer must

certify on a form prescribed by PERS or by means of other acceptable documentation that an accident or injury has occurred in the performance of duty which precipitated the employee’s claim for disability benefits.

Acceptable documentation may include an accident or injury report, a Workers’ Compensation claim form, or such other similar document signed by an authorized representative of the employing agency as proof of the occurrence of an event in the nature of an accident or injury while on the job. A duty-related disability benefit determination by PERS is independent of any determination of benefit eligibility that may be made by an insurance company or other agency of the State. § 25-11-114 (6)

6. No inactive member shall be eligible to apply for duty-related disability benefits regardless of years of service if withdrawal from service occurred before July 1, 1984, which was the date that such benefits were first authorized.

7. Any active or inactive member must provide a statement certifying all gainful employment at the time the disability is claimed, whether such employment is covered employment or not.

a. Any inactive member applying for disability after one calendar year from date of termination from covered service must provide copies of tax

returns with corresponding income documentation to provide information as to the type of employment and income from any gainful occupation during the period of inactive service.

b. Where the inactive member is found to have engaged in any gainful occupation paying an amount equal to or more than the average compensation used in calculating the benefits, the inactive member shall be deemed ineligible for benefits.

8. If the Medical Board determines that a member is not eligible for disability benefits, a final administrative determination will be issued to the member. The member may appeal the determination to the Board of Trustees in accordance with the provisions of Board Regulation 42, Rules of Hearing Practice and Procedure before the Board of Trustees, and Miss. Code Ann. § 25-11-120 (1972, as amended).

9. Upon certification of eligibility by the Medical Board, if the Board of Trustees concurs with such report of eligibility, the member will be added to the retiree payroll. The Board of Trustees authorizes the executive director to initiate benefits on behalf of the members who are certified by the Medical Board as being disabled in accordance with the statutes to ensure timely payment of benefits to such members, provided that the executive director shall present such approved members along with any supporting information to the Board of Trustees for ratification at a subsequent meeting of the Board.

10. A disability determination will be made based on the member’s inability to perform the job duties associated with a covered position and not a second position where only wages are covered pursuant to Miss. Code Ann. § 25-11-103 (k) (1972, as amended); however, the average compensation will be calculated taking into consideration all covered wages from all positions.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Continuing qualification for disability benefits 1. Medical reexaminations

a. A disability retiree under the age of 60 or until the termination age of the temporary allowance under § 25-11-113 (2)(c) shall be required to submit to medical

reexamination once each year during the first five years following retirement on a disability retirement allowance and once in every period of three years thereafter unless otherwise determined by the Medical Board. The Medical Board may specify both the frequency and the nature of such reexamination.

b. Upon the attainment of age sixty or upon the attainment of the termination age of the temporary allowance period, any member receiving a disability benefit shall be considered to have retired under a service retirement benefit with no further requirement for reexaminations and with no recalculation of benefits. A disability retiree reaching age sixty or the termination age of the temporary allowance shall not be required to submit to medical reexaminations. § 25-11-113 (3)

c. If after 90 days from a request a disability retiree refuses to provide a physician’s statement of reexamination, his or her allowance shall be discontinued until his or her withdrawal of such refusal, and should his or her refusal continue for one year, all rights to a disability benefit shall be revoked by the Board of Trustees. § 25-11-113 (3)

d. If following reexamination the Medical Board determines that a disability retiree is physically and mentally able to return to the employment from which he or she is retired, the Board of Trustees, upon certification of such finding from the Medical Board, shall terminate the disability allowance as provided hereunder whether or not the retiree is reemployed or seeks such reemployment. § 25-11-113 (6)

e. Further, if upon such reexamination, the Medical Board reports and certifies that the disability retiree is engaged in or is able to engage in a gainful occupation paying more than the difference between his or her disability allowance, exclusive of cost-of- living adjustment, and his or her average compensation, and if the Board of Trustees concurs in such report, the disability benefit shall be reduced to an amount that together with the amount earnable by him or her shall equal his or her average compensation. § 25-11-113 (4)

2. Earnings limitations while receiving disability benefits

a. Until the disability retiree reaches age 60 or until the termination age for the temporary allowance under § 25-11-113(2)(c), as applicable, a disability retiree shall be required to submit annually a copy of his or her federal income tax return, including supporting documentation, or other earnings statements acceptable to the Board of Trustees, no later than 30 days following the due date of such return. The earnings limitations pursuant to the statute will be based on the earned income of the disability retiree.

b. If based on a review of earnings during the year, the disability retiree has earned more than the difference between the disability benefit, exclusive of the cost-of- living adjustment, and the average compensation used in calculating the benefit, the benefit shall be reduced to an amount that, when added to the disability benefit, exclusive of the cost-of-living adjustment, shall equal the average compensation. The benefit may be adjusted to recover the excess benefits as well as to recalculate benefits to account for the new earnings capability for the following year. The adjusted benefit will continue to be paid to the extent that the earnings when added to the adjusted benefit as provided above do not exceed the average compensation. § 25-11-113 (4)

c. If documented earnings meet or exceed the average compensation for a period in excess of six months, a medical review shall be required, and the Medical Board shall report to the Board of Trustees whether the retiree is mentally and physically able to return to his or her regular duties or to any gainful employment earning the equivalent of the

average compensation and whether the eligibility for benefits should be continued. Upon a report and certification by the Medical Board, the Board of Trustees may terminate the disability benefit or continue issuing a reduced benefit based upon the retiree’s earning ability. § 25-11-113 (4)

d. If income information is not submitted as required by the Board of Trustees, it will be presumed that the disability retiree is engaged in or is able to engage in a gainful occupation earning more than the average compensation used in calculating the disability benefits, and benefits shall be suspended until such time as the retiree submits proper documentation as required above. § 25-11-113 (4)

e. Until the disability retiree reaches age 60 or until the termination age for the temporary allowance under § 25-11-113(2)(c), as applicable, a disability retiree reemployed by a covered employer must notify PERS in writing of the terms of the eligible employment within five days from the date of employment and also from the date of termination on a form prescribed by the Board of Trustees. Such form must be certified by the employer.

f. Disability retirees who have attained the age of 60 or the age at which the temporary allowance ends as provided under § 25-11-113(2)(c), as applicable, shall be considered to have retired under service retirement, and, for purposes of reemployment with a covered employer, shall be subject to the reemployment limitations as provided under Board Regulation 34, Reemployment After Retirement.

27 Miss. Admin. Code Pt. 210, R. 107 Termination of disability benefits

1. In the event a retiree is determined to no longer qualify for disability benefits, such member will be provided with notice of such determination and benefits will continue for a period of three months unless the retiree has returned to covered employment in the position from which he or she was retired on disability or to other covered service in which he or she is earning an amount equal to or more than his or her average compensation or where such termination is a result of the retiree’s refusal to submit to a medical reexamination, in which case benefits shall be terminated immediately.

2. The Medical Board shall review the objective medical information as with an initial claim for disability benefits and determine whether the medical condition for which benefits were previously approved has improved sufficiently to allow a return to previous employment. The Medical Board may also consider additional information concerning any new medical condition which may have occurred while in receipt of disability benefits.

3. Notice of termination of disability benefits shall constitute a final administrative determination, and the retiree may appeal the determination to the Board of Trustees in accordance with the provisions of Board Regulation 42.

4. If a disability retirement allowance is terminated because the retiree has returned to covered employment in the position from which he or she was retired or to other covered employment in which he or she is earning an amount equal to or more than his or her average compensation and the retiree terminates such covered employment due to his or her disability before contributing for a period of time that exceeds six calendar months, PERS shall credit both the employee and employer contributions paid during such period to the employer who shall then refund to the employee the employee contribution. The original

disability retirement allowance shall be reinstated prospectively the first of the month following termination from covered employment.

5. If the disability is terminated due to the Medical Board’s determination that a member is mentally and physically able to return to his or her former employment, the disability retiree may subsequently qualify for a service retirement allowance based on actual years of service credit plus credit for the period during which a disability allowance was paid as follows:

a. If the disability retiree received benefits under the age limited plan, he or she will receive service credit for the period of time he or she received disability benefits up to age 60; and

b. If the disability retiree received benefits under the Tiered Disability Plan, he or she will receive service credit for the period of time he or she received disability benefits up to the end of the temporary allowance.

6. If the disability is terminated due to the Medical Board’s determination that a member is mentally and physically able to return to his or her former employment, and the disability retiree is eligible for service retirement at the time of such termination or later becomes eligible for service retirement, the disability retiree may subsequently make application for a service retirement benefit and select a new option.

27 Miss. Admin. Code Pt. 210, R. 108 PERS Medical Board

1. The Board of Trustees may designate a medical board to be composed of three physicians or may contract with another governmental agency or non-governmental disability determination service that is qualified to make disability determinations. If required, other physicians may be engaged to report on special cases. A physician shall be considered a medical doctor or a doctor of osteopathy with a license to prescribe drugs.

2. The Board of Trustees authorizes the executive director to appoint special medical board members on a case-by-case basis to serve in the absence of one or more board-appointed medical board members or where a board-appointed Medical Board member may have a conflict of interest. Such special appointments to the Medical Board shall be limited but shall continue for the duration of the claim or claims upon which determinations have been made by such special appointed member.

27 Miss. Admin. Code Pt. 210, R. 109 Duty-related disability benefits excluded from income

Internal Revenue Code Section 104 and applicable Department of the Treasury Regulations provide that, if disability payments (i) are mandated by statute and

(ii) are compensation for occupational injury, such payments are excluded from income, provided that the payments are not based upon the employee’s age or length of service. Accordingly, the minimum duty-related disability benefits paid pursuant to § 25- 11-114 (6) are excluded from income under Code Section 104.

(History: Adopted effective August 1, 1996; amended effective February 1, 2000; amended effective January 1, 2002; amended effective July 1, 2002; amended June 21, 2005 to be effective 8/1/2005; amended and reformatted effective July 1, 2007; amended effective July 1, 2009; amended effective August 1, 2010; amended effective August 1, 2012, amended effective October 1, 2016, amended effective February 1, 2022)

Chapter 45B Administration of Disability Benefits for Municipal Systems

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to provide the rules to be applied in the administration of disability benefits for the municipal retirement plans administered by the PERS Board of Trustees.

27 Miss. Admin. Code Pt. 210, R. 101 Fees for determining disability benefits

The Board of Trustees shall adopt and maintain a schedule of fees for disability determination services which shall be reviewed on a periodic basis.

27 Miss. Admin. Code Pt. 210, R. 102 Application for Disability Benefits

1. Article 1 - General Municipal Employees (Biloxi and Meridian)

a. An active General Municipal System member may file an application for disability benefits provided a) such member has at least five (5) years of membership service, or b) such member is permanently and totally disabled from any gainful occupation and such disability occurred as the natural and proximate result of the actual performance of duty, without willful negligence. (Miss. Code Ann. § 21-29-35 and 21-29-39 (1972, as amended)) b. Any member who has filed a claim for disability benefits, regardless of whether he or she has terminated covered service, but who dies prior to the review and determination by the PERS Medical Board shall be eligible for death benefits, including spouse/survivor benefits or a refund of contributions. c. Any member who has filed a claim for disability benefits who has been approved by the Medical Board to receive such benefits but who dies after approval but prior to termination from covered service shall have benefits paid to the surviving spouse and/or dependent children as if he or she had

died after disability retirement.

a. An active Firemen’s and Policemen’s Disability and Relief Fund member may file an application for disability benefits provided a) such member has at least five (5) years of membership service, or b) such member is totally disabled from duties by reason of sickness or injury caused or sustained by reason of service or discharge of duties. (Miss. Code Ann. §§ 21-29-133, 21-29-135, and 21-29-241 (1972, as amended)) b. Any member who has filed a claim for disability benefits, regardless of whether he or she has terminated covered service, but who dies prior to the review and determination by the PERS Medical Board shall be eligible for death benefits, including spouse/survivor benefits or a refund of contributions. c. Any member who has filed a claim for disability benefits who has been approved by the Medical Board to receive such benefits but who dies after approval but prior to termination from covered service shall have benefits paid to the surviving spouse and/or dependent children as if he or she had died after disability retirement.

27 Miss. Admin. Code Pt. 210, R. 103 Effective date of benefits

1. The effective date of benefits shall be the first of the month following receipt of an application for a disability retirement allowance, but in no event before termination of state service. (Miss. Code Ann. §§25-11-113 (1) (a) and 21-29-35 (1972, as amended)) 2. For purposes of determining the effective date of benefits as referenced in number one (1) above, termination from covered service shall mean the cessation of the employee- employer relationship as characterized by resignation or termination from employment, with or without cause. While a member may not be performing the duties of the job, if the member has not resigned or been terminated by the employer, the member is still considered employed and thus, ineligible for initiation of disability retirement benefit payments. In cases where the member is on authorized leave without pay or administrative leave or is receiving Workers’ Compensation benefits, such member is considered an employee of the agency, and thus, not eligible to receive disability retirement benefit payments.

27 Miss. Admin. Code Pt. 210, R. 104 Medical determination of eligibility for disability benefits

1. The employer must provide the following information, which will be considered by the Medical Board in its determination for eligibility: a. The job description and duties of the member; (Miss. Code Ann. § 25-11- 113 (1) a) (1972, as amended)) b. Whether the employer has offered the member other duties without material reduction in compensation; (Miss. Code Ann. § 25-11-113 (1) (a) (1972, as amended)) c. Whether the employer has complied with the applicable provisions of the Americans With Disabilities Act in affording reasonable accommodations which would allow the employee to continue employment. (Miss. Code Ann. § 25-11-113 (1) (a) (1972, as amended)) d. In the case of an application for hurt on the job benefits, the employer shall certify whether, to the best of its knowledge, the sickness or injury was caused or sustained by reason of service or discharge of duties. (Miss. Code Ann. §§ 21-29-35, 21-29- 133, 21-29-241 (1972, as amended)) 2. The member shall submit medical evidence of the disability to the Medical Board for review. The Medical Board may require an independent medical evaluation or such other examination or report as is necessary to determine the member’s eligibility for benefits. Refusal to submit to such examination or to otherwise provide the requested additional information within ninety (90) days of such request shall result in the member’s application being considered void. (Miss. Code Ann. § 25-11-113 (1) (d) (1972, as amended)) a. In order to be considered eligible for disability benefits the Medical Board must certify to the Board of Trustees that the Firemen’s and Policemen’s Disability and Relief Fund member is mentally or physically incapacitated for the further performance of duty, (ii) that such incapacity is likely to be permanent, and (iii) that the member should be retired. b. The Board of Trustees does not automatically accept a Social Security Administration disability determination as evidence of disability benefit eligibility. If, however, a Social Security Administration disability benefit determination has been received during the medical evaluation process, such determination along with (i) the supporting medical documentation, (ii) the condition upon which Municipal System disability benefits are claimed, and (iii) the facts of the case, will be taken into consideration as a part of the Medical Board’s independent evaluation and determination. (Miss. Code Ann. § 25-11-113 (1) (a) (1972, as amended))

2. The Medical Board shall certify to the Board of Trustees whether the member, based on the medical evidence, is mentally or physically incapacitated for further performance of duty and that such incapacity is likely to be permanent and whether, based on all other facts, the member should be retired on a disability allowance. In making this determination, the Medical Board shall use the following definition: a. Disability, for members of the General Municipal Retirement System, governed by MCA Chapter 29, Article 1, shall be defined as a total and permanent incapacity from duty as well as from any gainful occupation for compensation or profit. (Miss. Code Ann. § 21-29-35 and 21-29-39 (1972, as amended)) b. Disability, for members of the Firemen’s and Policemen’s Disability and Relief Fund, governed by MCA, Chapter 29, Articles 3 and 5, shall be defined as a total inability to discharge duties as a fireman or policeman. Such disability may be due to physical or mental incapacity/illness. c. As part of the determination process, the Medical Board shall consider certification from the employer as to whether or not reasonable accommodations have been requested by the employee and agreed to by the employer as provided under the Americans with Disabilities Act. 4. In applying for job related disability benefits, a member must provide medical proof satisfactory to the Medical Board that his disability is a.) the natural and proximate result of the actual performance of duty without willful negligence, if a member under Article 1, the General Municipal System, or b.) a sickness or injury caused or sustained by reason of service or discharge of his duty, if a member under Article 3 or 5, the Firemen’s and Policemen’s Disability and Relief Fund. (Miss. Code Ann. §§ 21-29-35, 21-29-133, and 21-29-241 (1972, as amended))

3. A disability benefit applicant must provide a statement certifying all gainful employment or other such income statements as may be requested by PERS.

4. If the Medical Board determines that a member is not eligible for disability benefits, a final administrative determination will be issued to the member. The

member may appeal the determination to the Board of Trustees in accordance with the provisions of Regulation 42. (Miss. Code Ann. § 25-11-120 (1972, as amended) and Regulation 42) a. Appeals of decisions made under Regulation 42 by the PERS Board of Trustees may be made by members of the Firemen’s and Policemen’s Disability and Relief Fund to the Board of Disability and Relief Appeals as provided in Miss. Code Ann. § 21-29- 113 and 21-29-215 (1972, as amended).

7. Upon certification of eligibility by the Medical Board, if the Board of Trustees concurs with such report of eligibility, the member will be added to the retiree payroll. The Board of Trustees authorizes the Executive Director to initiate benefits on behalf of the members who are certified by the Medical Board as being disabled in accordance with the statutes in order to ensure timely payment of benefits to such members, provided that the Executive Director shall present such approved members along with any supporting information to the Board of Trustees for ratification at a subsequent meeting of the Board. 8. Retirement on and receipt of service retirement benefits results in the member’s forfeiture of any rights to pursue disability benefits.

27 Miss. Admin. Code Pt. 210, R. 105 Continuing Qualification for Disability Benefits

1. Disability retirees with less than 20 years of service shall be required to submit to medical reexaminations once each year during the first five (5) years following retirement on a disability retirement allowance and once in every period of three

(3) years thereafter, unless otherwise determined by the Medical Board. The Medical Board may specify both the frequency and the nature of such reexamination. Upon the attainment of 20 years of service credit, calculated by adding service credit at retirement plus credit for the service during which a disability benefit is paid, the disability retiree shall be considered to have retired under a service retirement benefit with no further requirement for reexaminations and with no recalculation of benefits. (Miss. Code Ann. §§ 21-29-43, 21-29-137, 21-29-243 (1972, as amended) and PERS Regulation 39) a. In the event a General Municipal System disability retiree refuses to provide a physician’s statement of reexamination, his allowance shall be discontinued until his withdrawal of such refusal, and should his refusal continue for one (1) year, all rights to a disability benefit shall be revoked by the Board of Trustees. (Miss. Code Ann. § 21-29-43 (1972, as amended) In the event a Firemen’s and Policemen’s Disability and Relief Fund disability retiree refuses to provide a statement of reexamination, his allowance shall be discontinued until his withdrawal of such refusal. (Miss. Code Ann. § 21-29-137 and 21-29-243 (1972, as amended)) b. If, following reexamination, the Medical Board determines that a disability retiree is physically and mentally able to return to the employment from which he is retired, the Board of Trustees, upon certification of such finding from the Medical Board, shall terminate the disability allowance as provided hereunder, whether or not the retiree is

reemployed or seeks such reemployment. (Miss. Code Ann. § 21-29-43 (2) (1972, as amended)) c. Disability retirees shall be required to submit annually a copy of their federal income tax return, including supporting documentation, or other earnings statements acceptable to the Board of Trustees, no later than 30 days following the due date of such return. d. Any General Municipal disability retiree, who has not completed twenty (20) years of service prior to retirement, who secures gainful employment over a period of three (3) consecutive months shall have his disability benefit revoked by the Board. (Miss. Code Ann. § 21-29-43 (3) (1972, as amended))

e. If income information is not submitted as required by the Board of Trustees, benefits shall be suspended until such time as the retiree submits proper documentation as required above. (Miss. Code Ann. § 25-11-113 (4) (1972, as amended)) 2. The Medical Board shall review the objective medical information as with an initial claim for disability benefits and determine whether or not the medical condition for which benefits were previously approved has improved sufficiently to allow a return to previous employment. The Medical Board may also consider additional information concerning any new medical condition which may have occurred while in receipt of disability benefits.

27 Miss. Admin. Code Pt. 210, R. 106 Termination of Disability Benefits

1. In the event a retiree is determined to no longer qualify for disability benefits, such retiree will be provided with notice of such determination and benefits will continue for a period of three (3) months prior to termination, unless the retiree has returned to covered employment in the position from which he was retired, or under Article 1, such retiree has returned to any gainful employment over a period of three (3) consecutive months in which case benefits shall be terminated immediately. 2. Notice of termination of disability benefits shall constitute a final administrative determination, and the retiree may appeal the determination to the Board of Trustees in accordance with the provisions of Regulation 42. 3. Appeals of decisions made under Regulation 42 by the PERS Board of Trustees may be made by members of the Firemen’s and Policemen’s Disability and Relief Fund to the Board of Disability and Relief Appeals as provided in Miss. Code Ann. § 21-29-113 and 21-29-215 (1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 107 PERS Medical Board

1. The Board of Trustees may designate a Medical Board to be composed of three (3) physicians or may contract with another governmental agency or non- governmental disability determination service that is qualified to make disability determinations. If required, other physicians may be engaged to report on special cases. A physician shall be considered a medical doctor or a doctor of osteopathy with a license to prescribe drugs.

2. The Board of Trustees authorizes the Executive Director to appoint special Medical Board members on a case by case basis to serve in the absence of one or more Board appointed Medical Board members or where a Board appointed Medical Board member may have a conflict of interest. Such special appointments to the Medical Board shall be limited but shall continue for the duration of the claim or claims upon which determinations have been made by such special appointed member.

(History: Adopted August 1, 1996; amended effective January 1, 2002; amended on June 21, 2005, to be effective August 1, 2005; reformatted August 1, 2007)

Chapter 46 Submission of Monthly Reports and Contributions for the Mississippi Government Employees’ Deferred Compensation Plan & Trust

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

This regulation establishes the due date for contributions and contribution reports for employers participating in the Mississippi Government Employees’ Deferred Compensation Plan and Trust (MDC).

27 Miss. Admin. Code Pt. 210, R. 101 Due Date

All contributions and billing (contribution) reports on behalf of participants in MDC administered by the Public Employees’ Retirement System of Mississippi (PERS) are due from the participating employer as of the fifth working day of each month.

27 Miss. Admin. Code Pt. 210, R. 102 Electronic reporting of contributions and reports

All employers are authorized and shall transfer all funds due to MDC electronically and shall transmit any contributions and billing reports by computerized reporting systems. An employer may submit a written request for a temporary exemption from the application of the above requirements setting forth the reasons for the inability to comply with the requirement. Where the Board finds that an employer cannot comply with the above requirements due to circumstances beyond its control, such temporary exemption may be granted.

a. The Board has previously established guidelines for PERS for determining whether such requests shall be granted. These same guidelines shall apply to the reporting of funds and reports of MDC. b. The Board of Trustees may assess a processing fee for noncompliance with the mandatory electronic funds transfer and/or computerized reporting.

(History: Adopted July 1, 1999; amended July 1, 2000; reformatted August 1, 2007; amended effective August 1, 2014)

Chapter 47 Tax-free Rollovers into Plans Administered by the Board of Trustees of the Public Employees' Retirement System

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

This regulation sets forth the conditions under which a retirement plan administered by PERS can receive an eligible retirement distribution from another plan.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Plans from which an eligible rollover distribution can be received by PERS

1. Where allowed under and subject to the provisions of federal law, plans administered by the Board of Trustees of the Public Employees' Retirement System of Mississippi, (hereafter referred to as PERS) may accept an "eligible rollover distribution" as defined under the Internal Revenue Code of 1986 (Code) in payment of all or a portion of the payment for previously withdrawn contributions and interest or the purchase of optional service credit.

2. For purposes of these rules, “eligible rollover distribution” or “rollover distribution” means all or any portion of a taxable amount that qualifies as an eligible rollover distribution under Section 402(c)(4) of the Code, as amended, and paid to a member or the surviving spouse of the member from:

a. Another employer plan qualified under Section 401(a) of the Code, including a qualified plan described in Section 401(k) of the Code;

b. A traditional individual retirement account or annuity under Section 408(a) or 408(b) of the Code that is eligible to be rolled over and would otherwise be included in gross income;

c. A tax-sheltered annuity qualified under Section 403(b) of the Code;

d. A governmental deferred compensation plan under Section 457(b) of the Code; or

e. An annuity plan under Section 403(a) of the Code;

f. A Simplified Employee Pension Plan (SEP IRA) under Section 408(k) of the Code; and

g. A Savings Incentive Match Plan for Employees (SIMPLE IRA) under Section 408(p) of the Code, if there has been participation in the plan for at least two years.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Qualifying transfers and/or rollovers must meet the following conditions:

1. Funds may be transferred by the member (or surviving spouse who is a member) only for the purpose of establishing service credit as a member through (i) the repayment of part or all of previously withdrawn contributions and interest, or (ii) purchase of optional service credit as allowed by law. The amount of the contribution accepted by the retirement system shall not exceed the cost of the service to be purchased.

2. The member should contact PERS to obtain a cost schedule for the service to be purchased or reinstated. If the member makes less than full payment for the total service credit, payment must be made in increments of not less than one month of creditable service beginning with the most recent service. All service credit purchased or repaid is subject to verification and correction as deemed necessary by PERS.

3. Rollovers from other plans may take one of the following forms: a. Direct Rollovers:

The plan will accept a direct rollover of an eligible rollover distribution from an eligible retirement plan authorized by federal law including the following:

i. A qualified plan described in Section 401(a) of the Code or an annuity plan described in Section 403(a) of the Code, excluding after- tax contributions.

ii. An annuity contract described in Section 403(b) of the Code, excluding after-tax contributions.

iii. An eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

iv. A traditional individual retirement account or annuity described in Section 408(a) or 408(b) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

v. A SEP IRA described in Section 408(k) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

vi. A SIMPLE IRA described in Section 408(p) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

b. Participant Rollover Contributions:

The plan will accept a participant contribution of an eligible rollover distribution from an eligible retirement plan as authorized by federal law as follows:

i. A qualified plan described in Section 401(a) of the Code, including a qualified plan described in Section 401(k) of the Code.

ii. An annuity contract described in Section 403(b) of the Code.

iii. An eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.

iv. A traditional individual retirement account or annuity described in Section 408(a) or 408(b) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

v. A SEP IRA described in Section 408(k) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

vi. A SIMPLE IRA described in Section 408(p) of the Code that is eligible to be rolled over and would otherwise be includible in gross income.

c. Trustee-to-Trustee Transfer:

If permitted under and subject to the provisions of federal law, plans administered by PERS may accept a direct trustee-to-trustee transfer of funds from a plan described under 403(b) or 457(b) of the Code in payment of previously withdrawn contributions and interest or the purchase of optional service credit.

4. The amount of the rollover distribution accepted by the retirement system shall not exceed the cost of the service to be purchased or reinstated.

5. A rollover check from an eligible plan must be payable to the Public Employees' Retirement System of Mississippi, or other applicable plan administered by PERS, for the benefit of the member. The member’s name and Social Security number should be clearly noted on the check. The check and accompanying documentation should be directed to the attention of Member Account Support. The check must be accompanied by the required documentation and a copy of the cost schedule for the service to be purchased or reinstated. (Note: No wire transfers will be accepted unless authorized by the executive director.)

6. If the distribution from the originating institution is greater than the cost of such service to be purchased or reinstated, the originating institution must generate separate checks, making the one payable to the appropriate retirement plan for only the exact cost of the service credit to be purchased or reinstated. If the distribution from the originating institution is less than the cost of the service credit to be purchased or reinstated, a personal check or cashier's check for the difference must accompany the rollover proceeds.

7. Neither partial payments for less than a month of service nor payments in excess of the cost of service to be purchased or reinstated will be accepted.

8. It is the responsibility of the member to see that all forms are properly completed and submitted to PERS along with the appropriate funds.

9. Upon PERS’ review and acceptance of documentation and payment as provided within this regulation, the member will be notified of the applicable funds and service credit posted to the member's account.

(History: Adopted effective July 1, 2000; amended effective March 14, 2002; reformatted August 1, 2007; amended effective December 1, 2012, amended effective July 1, 2017)

Chapter 48 Partial Lump Sum Option (PLSO)

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to provide for the conditions under which the partial lump sum option may be selected by a retiree.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Eligibility for Partial Lump Sum Option Any eligible member of the Public Employees’ Retirement System (PERS), the Supplemental Legislative Retirement System (SLRP), or the Mississippi Highway Safety Patrol Retirement System (MHSPRS), upon withdrawal from service and application for

service retirement benefits, or completion of an Advanced Application, may elect to receive a partial lump sum payment on the date of retirement (or commencement of benefits under an Advanced Application in the case of death prior to retirement) in exchange for a reduced annuity provided such member meets the following age and/or service requirements: a. Any member of PERS/SLRP who became a member before July 1, 2007, and who (i) has at least twenty-eight (28) years of creditable service in PERS; or (ii) has four (4) or more years of membership service in PERS and who is at least age sixty-three (63); or b. Any member of PERS/SLRP who became a member on or after July 1, 2007, but before July 1, 2011, and who has at least twenty-eight (28) years of creditable service in PERS; or c. Any member of PERS/SLRP who became a member on or after July 1, 2011, but before March 1, 2026, and who has at least thirty-three (33) years of creditable service in PERS; or d. Any member of the MHSPRS eligible for an unreduced benefit.

SLRP members must meet the eligibility requirements in PERS and are not required to meet the requirements in both PERS and SLRP. Any member of PERS who became a member on or after March 1, 2026 shall not be eligible for a partial lump sum distribution. 1. Selection of Partial Lump Sum Option (PLSO) Payout Amount a. A member may elect to receive the partial lump sum payment in an amount equal to the unreduced retirement benefit (Maximum Retirement Allowance) which would have been paid over a period of 12, 24 or 36 months, had the lump sum option not been selected. Once the pay out amount is selected, a reduced Maximum Retirement Allowance is then calculated using factors based upon the member’s age at retirement and the pay out option (12, 24, or 36 months) selected. This reduced Maximum Retirement Allowance then serves as the basis upon which other optional payment alternatives are calculated. b. Where a partial lump sum distribution is elected on an Advanced Application in conjunction with either the Maximum Retirement Allowance or an allowable option as noted in Section 101.2 of this Regulation, a different beneficiary may not be named for the purpose of receiving only the PLSO payment. The partial lump sum distribution shall be paid to the same beneficiary as named under the optional benefit payment selected. c. From and after January 1, 2003, if there is an election of the Partial Lump Sum Option (Option 6) after the member has attained the age of sixty-five (65) years, the actuarial equivalent factor based on the retiree’s age at the time of retirement shall be used to compute the reduced maximum monthly retirement allowance. 2. PLSO Not Available with Certain Options The lump sum payment option shall be paid only in conjunction with service retirement benefits selected by the member and shall not be combined with Option 1 (the pro-rated straight life annuity), a disability benefit, a statutory spouse/dependent child benefit, or a benefit calculated after reemployment of a former retiree.

3. Effect of PLSO Selection on Calculation of Retirement Benefit at Subsequent Retirement Further, should a retiree, after having received a partial lump sum payment, be reemployed, the new maximum benefit, including salary and service credit upon subsequent retirement, shall be reduced by the same dollar amount plus one percent (1%) of that amount for each month that the retiree’s benefit was terminated due to the retiree’s return to covered employment. 4. Payment of PLSO Amount a. At retirement, a member must name a beneficiary, as applicable, under the maximum retirement allowance or optional payment plan. When the partial lump sum distribution is selected on a service retirement application, the lump sum amount shall be paid to the retiree. b. The partial lump sum payment shall be paid in a check separate from the regular monthly retirement benefit. c. The total amount of the partial lump sum payment shall be deducted from the member’s account balance consisting of the employee contributions plus interest for purposes of determining unused contributions remaining in the account. d. The member (or the beneficiary where benefits are payable to a beneficiary pursuant to an Advanced Application) may elect to rollover the taxable portion of the partial lump sum payment to an eligible retirement plan or individual retirement account (IRA). The non-taxable portion of the partial lump sum payment can be rolled over to an IRA or another qualified retirement plan as allowed by Internal Revenue Service regulations. 5. Taxation of PLSO Amount This partial lump sum payment shall be subject to federal income tax in accordance with the Internal Revenue Code Section 72 or other such Internal Revenue rules and regulations as may be applicable. This partial lump sum benefit is subject to the same restrictions for assignment and attachment as all other retirement benefits. The appropriate portion of the partial lump sum distribution will be reported to the IRS as taxable income and appropriate tax withholdings will be withheld, unless the member elects to make a direct rollover of the taxable portion of the funds. Should the member have after-tax contributions, a portion of such after-tax contributions will be allocated to the partial lump sum payment and to the remaining annuity on a pro-rata basis. 6. Calculation of PLSO Amount The partial lump sum payment will be based on the service credit and average compensation, including projected wages, at the time of retirement, and will be issued along with the initial monthly benefit check. Since this may be as early as the first of the month after termination and receipt of the completed application and before final wages and contributions are posted to the member's account, PERS reserves the right to correct any overpayment or underpayment in benefits discovered at the time of final benefit recalculation which includes the final wage and contribution postings. Should the member have been overpaid, PERS will collect such overpayment from the member based on an actuarial adjustment to the monthly benefit. Likewise, should the member have been underpaid, PERS will issue an additional payment equal to the amount of the underpayment, as part of the regular monthly benefits. While a

recalculation of benefits may result in a difference between the partial lump sum amount actually paid and the partial lump sum amount which could have been paid based on final postings, any difference in the amount actually paid and the amount calculated upon final wage and service credit posting, shall be paid as part of the monthly benefits, not subject to rollover provisions, or in the case of overpayment, monthly benefits will be actuarially reduced, as appropriate.

(History: Adopted effective July 1, 2000; amended effective April 1, 2002; amended effective July 1, 2002; amended and reformatted July 1, 2007; clarified effective July 1, 2010; amended effective July 1, 2011, amended effective March 1, 2026)

Chapter 49 Military Service

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

This regulation provides information to the member regarding the types of military service that are eligible for service credit under the retirement systems administered by the Public Employees’ Retirement System of Mississippi (PERS) and at what cost, if any.

27 Miss. Admin. Code Pt. 210, R. 101 Background information

Service credit for certain active-duty military service has been available at no cost to members of the Public Employees’ Retirement System of Mississippi (PERS) and the

Mississippi Highway Safety Patrol Retirement System (MHSPRS) for many years. Service qualifying for credit at no cost under PERS and MHSPRS are discussed in this regulation. Military service used in the calculation of benefits of a retirement system administered by PERS may not be used in another such system.

Credit for military service is different in the Municipal Retirement Systems (MRS). Each municipality with a separate retirement system has the option to enact changes in the military service provision that allows credit to members at no cost.

The following information describes eligible active-duty military service available at no cost to members of PERS and MHSPRS in addition to qualified military service based on interrupted employment under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) and Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act). The provisions for interrupted employment under USERRA and HEART Act apply to members of all retirement systems administered by PERS, including MHSPRS, MRS, and the Optional Retirement Plan.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Military Service Available at No Cost to Member (PERS and MHSPRS Members Only)

1. Description of Active-Duty Military Service Available at No Cost

To be eligible to receive credit for Active-Duty military service (including Active Duty for Training for which a DD214 or comparable documentation is available), the member must:

a. Have served on Active Duty as follows:

i. For PERS, in an eligible branch of the U. S. Armed Forces (Army, Air Force, Navy, Marine Corps, or Coast Guard), or in the Commissioned Corps of the United States Public Health Service prior to 1972, or in maritime service during periods of hostility in World War II;

ii. For MHSPRS, in an eligible branch of the U. S. Armed Forces (Army, Air Force, Navy, Marine Corps, or Coast Guard) or in maritime service during periods of hostility in World War II;

b. Have not received a dishonorable discharge, which for purposes of this regulation includes a discharge for bad conduct, or discharge due to court martial, or discharge under other than honorable conditions;

c. Have entered or returned to state service after discharge from qualifying military service;

d. Be vested in his or her retirement system:

i. a member who joined PERS before July 1, 2007, must have a minimum of four years of membership service credit in PERS;

ii. a member who joined PERS on or after July 1, 2007, must have a minimum of eight years of membership service credit;

iii. or a member of the MHSPRS must have a minimum of five years of membership service credit;

e. Not have credit for this service in any other retirement system administered by PERS; and

f. Not have overlapping service credit for the same period of time.

g. Service credit for service in the Commissioned Corps of the United States Public Health Service is only available to those members who retire on or after July 1, 2002.

2. Limitations

If eligible, the member may receive up to a maximum of four years of active-duty military service credit at no cost. This period may be extended if proof is furnished that the member was retained in the Armed Forces during World War II or in maritime service during World War II by causes beyond the member’s control and without opportunity of discharge.

3. Certification

a. The member must submit to PERS a copy (not the original) of his or her military DD214 discharge form (or other documentation acceptable to PERS) that verifies: i. That the service was Active Duty (including Active Duty for Training);

ii. The eligible branch of the Armed Forces or Commissioned Corps in which the member served;

iii. The member’s dates of service; and iv. The member’s discharge status.

b. If the member does not have a copy of his or her DD214, he or she may obtain one by contacting the National Personnel Records Center.

4. National Guard or Reserve Service

a. Service credit is not available for National Guard or Reserve Service. However, if the member is or was a member of the National Guard or in the Reserve Service and was activated into the Armed Forces of the United States (or

Commissioned Corps of the United States Public Health Service prior to 1972) as verified by a DD214, he or she may be eligible for free service as provided under this section of this regulation.

b. Weekend drills and annual two-week training periods are not eligible for credit.

c. Military service is not allowed for periods during which the member received credit for employment with his or her public employer. d. Neither the National Guard NGB Form nor the U.S. Army Reserve Personnel Center Chronological Statement of Retirement Points will be accepted to establish eligibility for Active-Duty military service.

5. Military Service Performed after Withdrawal from State Service

Military service performed after the member withdraws from covered public service or retires does not qualify for service credit under this section. In order to have military service considered for service credit, the member must enter or return to covered state service after discharge from active duty in the Armed Forces (or from service in the Commissioned Corps of the United States Public Health Service prior to 1972). Should the member enter active duty after retirement and later return to covered state service, no service credit for active-duty military service is available for any period in which the member was drawing a retirement allowance.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Military Service Credit for Public Service Interrupted by Qualified Military Service Upon Payment of Employer and Employee Contributions

1. Description of Service That May Be Eligible

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) requires employers to reemploy and preserve job security, pension and welfare benefits for “qualified” employees whose employment was interrupted by military service. If qualified interrupted military service does not meet the qualifications for Active-Duty military service available to the member at no cost as provided under § 102 of this regulation, a member may be awarded credit for time spent in the military that interrupted public service provided that the appropriate employee and employer contributions (and interest, if applicable) are paid.

a. Service in the “Uniformed Services” means the performance of duty on a voluntary or involuntary basis in a Uniformed Service under competent authority and includes active duty, active and inactive duty for training, National Guard duty under Federal statute, and a period during which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform such duty. The term also includes a period for which a person is absent from employment to perform funeral honors duty as authorized by law. In addition, service as an intermittent disaster-response appointee upon activation of the National Disaster Medical System or as a participant in an authorized training program is deemed service in the Uniformed Services in accordance with Public Law 107-188. The definition of “Uniformed Services” shall conform to the definition as provided from time to time pursuant to federal law.

b. Uniformed Service means any of the following:

i. the Army, Navy, Air Force, Marine Corps, Coast Guard, or any reserve components of such services;

ii. the National Guard or Air National Guard; iii. the Commissioned Corps of the United States Public Health Service; or

iv. any other category of persons designated by the President in time of war or emergency.

2. Limitations

The member must have worked for an employer covered by one of the retirement systems administered by PERS, have left that employer for a military leave of absence, and returned to work for the same public employer within three months of discharge or release from the “Uniformed Services.”

a. To qualify to purchase this service, the member must have:

i. Held a job with the state or other public employer participating in PERS, MHSPRS, MRS, or ORP immediately prior to entering the uniformed services; and

ii. Given written or verbal notice (or verification upon return where such notice could not be provided), to the member’s public employer that he or she was leaving the job for military training or service; and

iii. Not exceeded the five-year cumulative limit on periods of service or the period to complete an initial enlistment, or such other period as provided under applicable federal law; and

iv. Have been discharged under honorable conditions or as otherwise provided by applicable federal law (Note that the following types of service do not qualify for purchase under USERRA: a. where the member separated from the service with a dishonorable or bad conduct discharge; b. where the member separated from the service under other than honorable conditions; c. where a member was dismissed or discharged from the service as the result of a court martial; or d. where the member was dropped from the rolls due to absence without authority for more than three months or imprisoned by a civilian court.); and

v. Reported back to the same public employer within 90 days after the member’s discharge, unless he/she was hospitalized for or convalescing from a service-connected injury or illness in which case the deadline for reporting to work may be extended for up to two years; and

vi. Met any other requirements provided by applicable federal law.

b. Military Service Performed after Withdrawal from State Service

No military service is available for service credit under this provision after the member leaves covered public service or retires. In order to begin drawing a retirement allowance the individual must have withdrawn or terminated from service. To have military service considered for service credit, the member must have left state service for the purpose of entering the military and later returned to covered state service after discharge from qualifying service under USERRA. Should the member enter military service after retirement or termination of employment and later return to covered state service, no service credit for such military service is available under this section.

c. Ineligible Service

Weekend drills and temporary annual training periods for which the employee is granted paid leave under State Law (e.g., summer camp) do not qualify for purchase under this provision as contributions have already been made on compensation paid during such periods. Further, a member may not receive additional service credit for periods of time for which he or she has already received service credit (i.e., where the individual is on paid personal leave). Where periods of public and qualified military service overlap, such may not result in more than one year of service credit being awarded during the same fiscal year.

d. Payment

i. To obtain a cost statement, the member’s employer shall complete and submit a Form 25D, Determination of Entitlement to Purchase Pension Service

Credit under the Veteran’s Reemployment Rights Laws, which certifies the employee’s eligibility to purchase service, and a Form 25M, Statement of Qualified Military Service, along with a copy of the member’s military

DD214 honorable discharge forms or other comparable documentation

showing the date of entry and separation from service in the uniformed services and discharge status.

ii. The member and his or her employer shall remit the retirement contributions that would have been due pursuant to applicable state law.

iii. The member must make payment within a period of time beginning with the date of return to membership service and not exceeding three times the member’s qualified military service, but in no case shall the member have in excess of five years from the date of his return to make such payment.

iv. Employer contributions required by the employer with which service was interrupted that are due pursuant to applicable state and federal law shall be billed to the employer for payment after the member has paid the employee contributions.

v. Such service in defined benefit plans must be purchased in minimum increments of one month. As contributions for each month of service (or multiples thereof) are received, service will be credited to the account.

e. Certification

In order to purchase service credit, the member and employer must provide the following:

i. A certificate of service or discharge (DD214) that shows the date of entry into and the date of separation from service in the uniformed services and the discharge status; and

ii. Form 25D, Determination of Entitlement to Purchase Pension Service Credit under the Veteran’s Reemployment Rights Laws; and

iii. Form 25M, Statement of Qualified Military Service, certifying the salary the member would have earned during the period the member was out of service as a public employee by reason of service in the uniformed services.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act) Provisions

1. With respect to the death of a member that occurs while the member is performing qualified military service within the meaning of Section 414(u) of the Internal Revenue Code:

a. The deceased member’s period of qualified military service must be counted for vesting purposes.

b. To the extent required by Section 401(a)(37) of the Internal Revenue Code, the deceased member’s survivors are entitled to any additional benefits that the system would provide if the member had resumed employment and then died,

such as those purchase rights the deceased member could have exercised under Miss. Code Ann. Section 25-11-109(7) (1972, as amended).

2. To the extent required by Section 414(u)(12) of the Internal Revenue Code, a member receiving differential wage payments within the meaning of Section 3401(h)(2) of the Internal Revenue Code from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on an annual addition under Section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

(History of PERS Board Regulation 49: Adopted July 1, 2001; amended July 1, 2002; amended June 21, 2005, to be effective August 1, 2005; amended effective April 1, 2007; amended and reformatted effective July 1, 2007; amended effective January 19, 2009; amended December 1, 2010; amended effective April 1, 2014; amended effective August 1, 2015, amended effective October 1, 2016, amended effective July 1, 2017)

Chapter 50 Direct Rollover of Plan Distributions

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to clarify the types of plans to which eligible distributions from the defined benefit plans administered by PERS may be rolled over in a direct transfer of funds to another eligible plan.

27 Miss. Admin. Code Pt. 210, R. 101 Definition of “Eligible retirement plan”

Effective for all distributions made after December 31, 1992, the following definition of “eligible retirement plan” shall apply for purposes of a direct rollover. An “eligible retirement plan” shall mean any plan as defined in Section 402(f)(2)(B) of the Internal Revenue Code (Code) including a qualified retirement plan under IRC 401(a) or 403(a), or an IRA under 408(a) and 408(b). Effective January 1, 2002, “eligible retirement plan” shall also include an annuity contract described in section 403(b) of the Code and an eligible plan under 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into such plan from this plan. Effective January 1, 2008, “eligible retirement plan” may also include a Roth IRA as described in Internal Revenue Code Section 408A.

27 Miss. Admin. Code Pt. 210, R. 102 Eligible Rollover Distributions

For purposes of the direct rollover provisions in the defined benefit plans administered by PERS, an eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the member or his or her surviving spouse. A distribution of all or any portion of the balance to the credit of a deceased member payable to a non-spouse beneficiary is also qualified as an eligible rollover distribution. However, a non-spouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution and the account or annuity will be treated as an “inherited” individual retirement account or annuity.

27 Miss. Admin. Code Pt. 210, R. 103 Distributions not qualified for rollover

An eligible rollover distribution does not include the following: (a) any amount that is distributed on account of hardship shall not be an eligible rollover distribution and the distributee may not elect to have any portion of such a distribution paid directly to an eligible retirement plan; (b) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the member or the joint lives (or joint life expectancies) of the member and the member’s designated beneficiary, or for a specified period of ten (10) years or more; and (c) any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a) (9).

27 Miss. Admin. Code Pt. 210, R. 104 After-tax contributions eligible for rollover

For purposes of the direct rollover provision, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in section 401(a) or 403(a) of the Code, or on or after January 1, 2007, to a qualified defined benefit plan described in Internal Revenue Code Section 401(a) or to an annuity contract described in Internal Revenue Code Section 403(b) that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

(History: Adopted January 1, 2002; reformatted August 1, 2007; amended July 1, 2008; amended effective January 19, 2009; clarified February 24, 2009)

Chapter 51 Administration of Certification of Accumulated Unused Leave for Service Credit and Lump Sum Payments of Leave at Termination/ Retirement

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to outline the conditions under which service credit may be awarded at retirement for lawfully accumulated unused leave.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

General Requirements for Certification of Accumulated Unused Leave The following regulation confirms and reaffirms prior construction of law, practice, and procedure of the Public Employees’ Retirement System of Mississippi (PERS) relative to the administration of additional service credit for lawfully accumulated unused leave and for the payment of unused leave for retirement purposes. Since May 15, 1984, Miss. Code Ann. §25-11-109 (1972, as amended) has allowed for the certification of accumulated unused leave upon termination of employment or retirement on or after that date. Such leave must be certified to PERS by the governing authority. Effective July 1, 1984, the state’s leave law was amended to allow accumulated unused personal and major medical leave of state and university employees to be certified to PERS upon termination of employment. Effective March 1, 2026, those who become members of PERS will not receive additional service credit for accumulated unused leave.

Except as otherwise provided by law, PERS follows the specific statutory provisions which authorize or limit the accrual of, or payment for, leave applicable to state and university employees, public school personnel, employees of counties, municipalities and other juristic entities, elected officials, court reporters, etc. The following guidelines apply in the accumulation, record keeping, and certification of leave by the employer. 1. Lawfully Adopted Leave Policy Any accumulated unused leave certified to PERS by the employer must have been accumulated by the employee pursuant to a lawfully adopted and written leave policy. Such policies may be found in statutory law, as in the case of state employees and employees of the institutions of higher learning, and/or in written policies adopted by the applicable governing body of a public school, county, municipality, community college or other juristic entity covered by PERS. Such policies, or the modification thereof, may not be adopted or applied retroactively. Accumulated unused leave certified to PERS pursuant to such policies may not exceed that which could have been accrued under the state’s leave law.

Accumulated unused leave certified to PERS by the employer upon termination or retirement of the employee must be leave that is viable under the terms of the policy and available for use by the employee in accordance with the intended purpose, i.e., personal (vacation) leave or major medical (sick) leave. Employers may not create or authorize leave to be accrued for “retirement purposes only” nor may employers certify leave which expires because it may not be carried forward from year to year. Further, employers may not create and certify other categories of leave which are not available to and certifiable on behalf of state employees. Leave certified to PERS must be eligible for use or payment in the form of wages as any other leave under the applicable policy to be certifiable to PERS. 2. Requirement that Records Be Maintained Inherent in the certification of accumulated unused leave is the requirement that accurate leave records be kept of such leave by the employer. In the absence of appropriate records, no leave may be certified to or granted by PERS. Leave certified to PERS by an employer must be based on documented policies and records which

exist at the time of certification of such leave and which reflect any remaining lawfully accumulated unused leave.

Generally, once accumulated unused leave is properly certified to PERS, it may not be later “decertified” by the employer or reinstated by the same or another employer, except in the case of wrongful termination where an employee is reinstated to employment back to the date of termination with full compensation, rights, and privileges. 3. Qualifying Leave that May Be Certified to PERS The state leave law provides that only accumulated unused personal leave and major medical leave accrued under Miss. Code Ann. §§25-3-93 and 25-3-95 (1972, as amended) by the individual employee can be certified to PERS at the time of termination or retirement. Accumulated unused personal or major medical leave (or their equivalent) certified to PERS pursuant to other lawfully adopted policies or statutes may not exceed that which could have been accrued and certified under the state’s leave law. 4. Leave That May Not Be Certified to PERS a. Accumulated unused compensatory leave or any other employer created category of leave other than personal leave or major medical leave may not be certified to PERS for additional service credit. b. Leave donated or transferred from one employee to another employee may not be certified to PERS as unused leave of the recipient employee. The accumulation of leave is personal to the individual employee. Only qualifying leave which has actually been accumulated by and which remains unused by the individual employee at termination of employment may be certified to PERS for service credit. c. Leave created, granted, or available “for retirement purposes only” may not be certified to PERS. There is no authority for the creation of a category of leave that is available for “retirement purposes only.” Leave provided to an employee which cannot be carried over from year to year, and which expires at the end of each year, may not be certified or “banked” for purposes of later certification to PERS. d. Accumulated unused leave associated with a refund of contributions may not be used for service credit. Leave accumulated and unused during a period of employment for which contributions are made to PERS and subsequently refunded to the terminated employee becomes void when the refund is made. If the refund is repaid in full, any accumulated unused leave associated with the reinstated service credit may also be reinstated, provided that such leave is or has been certified to PERS. If only a portion of the refund is repaid, the leave remains void and no part of it may be used for additional service credit. e. Leave accumulated with a governmental employer outside the State of Mississippi, i.e., leave associated with out-of-state service, or under the limited reemployment provisions as a retiree under Miss. Code Ann. §25-11-127 (1972, as amended), may not be certified to PERS for additional service credit. Further, leave accumulated with any other non-covered employment, including leave accumulated with an employer prior to the employer joining PERS or any leave

earned while participating in the Optional Retirement Plan or any other plan administered by PERS, may not be certified to PERS for additional service credit. f. Unused leave for those who became members of PERS on or after March 1, 2026, may not be certified to PERS for additional service credit. 5. When Leave Can Be Certified to PERS a. Leave may be certified by the employer only upon termination of employment of the employee. Termination is defined as a withdrawal from service that means a complete severance of employment in state service by resignation, dismissal, or discharge. Qualifying leave can be certified by the employer after termination of employment of the employee so long as official policies and records exist to support the certification. Special Circumstances: i. If unused leave accrued pursuant to a lawfully adopted leave policy of personal employees of an out-going elected chancery or circuit clerk is not assumed by the in-coming elected chancery or circuit clerk, such leave may be certified to PERS on behalf of the employee by the out-going clerk. If so certified for service credit, such leave may no longer be used by the employee while employed under the new clerk. ii. If unused leave accrued pursuant to a lawfully adopted leave policy of employees of an out-going elected district attorney is not assumed by the in- coming elected district attorney, such leave may be certified to PERS on behalf of the employee by the out-going district attorney. If so certified for service credit, such leave may no longer be used by the employee while employed under the new district attorney. iii. Where an employee of a covered employer is elected to office with that same covered employer without a break in service between the non-elected and elected employment, all unused leave accumulated by the employee under a policy of the employer prior to taking office as an elected official, must be certified to PERS at the time of transition from the non-elected to the elected position. b. If an employee transfers from one state agency (including the institutions of higher learning) to another without a break in service (i.e., without a lapse of one eight-hour workday between the termination date at the old agency and effective date of employment at a new agency), any unused leave is transferable to the state agency to which the employee is transferring. Since July 1, 1998, major medical and personal leave earned by employees are transferable between or among any and all state agencies and senior colleges as well as community and junior colleges. c. If leave is eligible for transfer to another covered employer, such leave should not be certified to PERS. 6. Conversion of Accumulated Unused Leave from Hours to Days a. Conversion under policy where leave accrual is no greater than that of the state’s leave law. The maximum accrual rates as provided under the state’s leave law is predicated on a normal eight- (8) hour workday and a five- (5) day workweek. To determine the number of days to be certified to PERS, the number of accumulated hours

should be divided by eight (8). Only hours that equate to whole days will be used to determine additional service credit upon retirement. Any remaining hours or fraction of a day after accumulated unused leave from all sources has been added together and converted into days will not be used in computing the number of whole days for retirement credit. b. Conversion under policy where leave accrual is greater than under the state’s leave law. If an employee (e.g., fireman or policeman) accrues leave at a rate in excess of the maximum combined personal and major medical state accrual rate as set forth in Miss. Code Ann. §§25-3-93 and 25-3-95 (1972, as amended), the following formula shall be used to convert the accumulated unused leave hours to days: i. Divide the maximum monthly or annual accrual rate under state’s leave law by the employee’s actual accrual rate (i.e. actual number of hours accrued per month or per year under the applicable policy) at the time of termination; ii. Multiply the ratio found in Step (i) by the total number of accumulated unused leave hours to find the adjusted allowable hours; iii. Divide the result from Step (ii) by eight (8) to determine the appropriate number of adjusted days that should be certified to PERS. 7. Certification of Accumulated Unused Leave a. State law at Miss. Code Ann. §25-3-97(1) (1972, as amended) imposes a duty upon agencies to maintain accurate records of employee leave. Hence, all PERS reporting employers who have a leave policy under which accumulated leave is or will be certified to PERS, have a like duty to maintain accurate leave records. For service credit based on accumulated unused leave to be granted for retirement purposes, there must be both a) evidence of a policy established by law or a lawfully adopted leave policy, spread upon the minutes of the appropriate authority or otherwise adopted by formal resolution, and b) records documenting accumulated unused leave remaining at termination of employment. b. When accumulated unused leave is certified to PERS by an employer on a form prescribed by the PERS Board of Trustees, such leave is subject to audit by PERS and a copy of the actual leave records and policy may be requested. Upon request, the employer must provide a copy of the leave policy under which any leave is accrued, documentation as to when and how the policy was adopted, and leave records. c. No leave may be certified to PERS where an employee terminated employment prior to May 15, 1984 (or July 1, 1984 in the case of state and university employees), or the effective date of a formally adopted leave policy, if later. d. Only accumulated leave, which has not been used or paid, may be certified. Any lump sum payment of leave automatically reduces the number of accumulated unused leave days which can be certified to PERS by the number of days for which payment is made. e. Service credit for accumulated unused leave is not posted to a member’s account until the time of application for retirement, at which time all eligible accumulated unused leave days certified from all employers are accumulated and converted to retirement service credit. Accumulated unused leave may not be used to determine minimum eligibility (i.e., a minimum of four (4) years of contributing

membership service in PERS for members who joined the System before July 1, 2007, or a minimum of eight (8) years of contributing membership services for members who joined the System on or after July 1, 2007,) for service retirement, disability, or survivor benefits. 8. Certification of Leave in Cases of Dual Employment a. Miss. Code Ann. § 25-11-109(2) (1972, as amended) provides in part that “... nor shall more than one (1) year of service be creditable for all services rendered in any one (1) fiscal year; . . .” As a result, no employee may be granted more than one day of creditable service for each calendar day worked regardless of the number of hours worked or number of positions held. b. Participants in PERS may be employed by two or more covered employers simultaneously. In such case, an employee may accumulate leave under separate leave policies. No employee may receive credit twice for vacation or sick leave earned for the same period of employment. For retirement purposes, upon termination of employment or retirement, a regular employee who has accumulated leave under two or more separate leave policies for the same period of time may elect to use accumulated unused leave credit from only one position. If an employee is simultaneously covered in two positions, one as an elected official and one as a regular employee under a leave policy, the individual as an elected official will automatically receive credit under the special provisions for elected officials. 9. Additional Statutory Leave Granted at Retirement a. Members of PERS who retire after July 1, 2010, shall receive credit for one-half day of leave for each full fiscal year of membership service accrued after June 30, 2010, which shall not be prorated for less than one (1) full fiscal year of service. Such additional leave granted under Miss. Code Ann. Section 25-11-109(2) (1972, as amended) shall be added to the lawfully credited unused leave certified to PERS for which creditable service is allowed under Section 25-11-103(1)(i). b. Additional statutory leave granted at retirement shall be calculated by PERS based on membership service accrued for periods after July 1, 2010. Employers should not credit this leave to any member, nor should an employer certify this additional leave to PERS at retirement or termination of employment. Additional statutory leave granted at retirement shall be applicable for all members of PERS, regardless of the date they became a member.

10. Calculation of Leave for Elected Officials a. Prior to July 1, 1987, there was no provision for additional service credit for elected officials based on leave. An elected official is presumed available for official duties at all times. Effective July 1, 1987, special statutory provisions for “elected official leave” were enacted for those elected officials retiring on or after July 1, 1987. (An elected official, such as a district attorney or elected superintendent of education, does not accrue personal and major medical leave pursuant to a leave policy for employees of the District Attorney or School District. Such officials are covered by the “elected official leave” noted below.) b. For retirement purposes, elected officials are entitled to additional service credit at retirement for “elected official leave” calculated as follows:

i. For service prior to July 1, 1984, the member shall receive credit for leave (combined personal and major medical) for service as an elected official prior to that date at the rate of thirty (30) days per year. ii. For service on and after July 1, 1984, the member shall receive credit for personal and major medical leave beginning July 1, 1984, at the rates authorized in Miss. Code Ann. §§25-3-93 and 25-3-95 (1972, as amended), computed as a full-time employee.

Elected official leave for each period of continuous elected official service should be calculated using the above guidelines. This calculation applies whether the elected service was reported as membership service, prior service, or purchased as non-covered or retroactive service. If there is a break in service, the calculation should take the break in service into account, and the accumulation for the subsequent period started again at the lower accrual rate as provided in Miss. Code Ann. §§25-3-93 and 25-3-95 (1972, as amended). c. Where an employee is a regular employee in one position but also serves as an elected official in another position, he/she may not receive retirement credit for accumulated unused leave under both positions at retirement. Where such service is simultaneous, special “elected official leave” under the statutory provision applies automatically for that period of time. d. Elected officials who become members of PERS on or after March 1, 2026, are not eligible to receive additional service credit for leave.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Calculation of Service Credit Attributable to Unused Leave Days Once the cumulative number of unused leave days is determined at the time of retirement, service credit using whole days is calculated in accordance with the provisions of Miss. Code Ann. §25-11-109(2), which provides that 1. No credit will be allowed for less than fifteen (15) days; and 2. Twenty-one (21) days of unused leave shall constitute one (1) month of service credit.

************************************************************** CONVERSION TABLE ACCUMULATED UNUSED, NON-COMPENSATED LEAVE TIME (This table is based on the state’s leave law, using an 8-hour workday and a 21-day work month) COMBINED ACCUMULATED UNUSED PERSONAL AND MAJOR MEDICAL LEAVE CREDIT EQUIVALENT 15 DAYS TO 77 DAYS 3 months 78 DAYS TO 98 DAYS 6 months 99 DAYS TO 119 DAYS 7 months 120 DAYS TO 140 DAYS 8 months 141 DAYS TO 161 DAYS 9 months 162 DAYS TO 182 DAYS 10 months

27 Miss. Admin. Code Pt. 210, R. 183 Rule 183

DAYS TO 203 DAYS 11 months 204 DAYS TO 224 DAYS 12 months 225 DAYS TO 245 DAYS 13 months 246 DAYS TO 266 DAYS 14 months (Only whole days are used in determining service credit)

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Payment of Unused Leave at Termination, Retirement, Death, or Disability Miss. Code Ann. §25-1-98 defines a workday for a state employee in a full-time employment position as eight (8) hours in duration. PERS law provides that leave policies for the administration of personal or vacation leave and major medical or sick leave as it relates to PERS cannot exceed that of the state leave law. Thus, for purposes of the payment of leave, the maximum allowable number of days paid will be calculated based on an eight-hour day. Upon termination or retirement, the maximum amount that may be reported to PERS for the payment of accumulated unused leave is 240 hours, which is the product of 30 days times 8 hours per day as provided in Miss. Code Ann. §25-3-93(4). The 240 hour payment of unused leave at termination, retirement, death, or disability shall be applicable for all members of PERS, regardless of the date they became a member.

The following statutes control the payment of leave upon termination of employment:

Statutory Authority Leave Payment Authorized Type Employee Affected

Miss. Code Ann §25- 3-93(4) (1972, as amended) Up to 30 days of personal leave payable upon termination

State and University employees (other than 9 month faculty employees) Miss. Code Ann §25- 3-97(3) (1972, as amended) Up to 120 days of major medical leave (No more than a combined total of 30 days of personal leave and major medical leave can be reported to PERS)

State and university employees who can no longer work in any capacity of state government due to total disability

Miss. Code Ann §25- 3-97(6) (1972, as amended) All personal leave payable upon death (Note that a lump sum payment of no more than 30 days of personal leave can be reported to PERS.)

State and university employees upon the death of the employee Miss. Code Ann §25- 3-99 and Miss. Code Authorizes the payment of frozen leave payable upon termination (Up to 20 days State employees who worked with the MESC prior to 1976

Ann §25-11-103(1)(f) (1972, as amended)

with the Miss. Employment Security Commission only)

and who had excess leave still credited on their records Miss. Code Ann §25- 3-95(5) (1972, as amended) Up to 30 days of major medical leave payable only upon retirement

Nine-month faculty members of the eight (8) institutions of higher learning Miss. Code Ann §37- 7-307(5) (1972, as amended) Up to 30 days of personal and sick leave at the rate paid to substitute teachers payable upon retirement

Licensed (certificated) employees with the public school districts in a position that requires a license Miss. Code Ann §37- 7-307(5) (1972, as amended) Up to 30 days of personal and sick leave at the applicable federal minimum wage rate payable upon retirement

Non-Licensed (non- certificated) employees with the public school districts Miss. Code Ann §25- 11-103(1)(k) (1972, as amended) Up to 30 days of leave upon termination All employees covered under a lawfully adopted leave policy of a county, municipality or any other local governing authority that specifically provides for the payment of leave upon termination

Miss. Code Ann §9- 13-19 (1972, as amended) NONE Court Reporters Miss. Code Ann §25- 11-109(2) (1972, as amended) NONE All Elected Officials

All payments of leave should be designated with the appropriate wage code when reported to PERS; i.e., 30 days lump sum payment of leave as Wage Code 02 and Service Credit Flag 00; 30 days lump sum payment of personal leave due to death as Wage Code 04 and Service Credit Flag 00; etc. Any compensatory leave paid in a lump sum should be reported as Wage Code 03 and should be allocated to the period in which the leave was actually earned.

INDEX OF STATUTORY AND OPINION AUTHORITY

Authority to use leave as additional service credit – Miss. Code Ann. §§25-11-103(1)(i) and 25-11-109(2) (1972, as amended)

Requirement for written policy and records - Miss. Code Ann. §25-3-97(1) (1972, as amended) and Opinions dated 1/25/1989 to Joseph F. Mooney; 8/14/1998 to Edward Ranck; 9/6/2002 to Wendell H. Trapp; 11/01/2002 to Olen C. Bryant, Jr.

Maximum accrual limits for retirement purposes - Miss. Code Ann. §§25-3-93, 25-3-95 and 25-11-103(1)(i) (1972, as amended) and Opinions dated 1/25/1989 to Joseph Mooney; 9/13/1994 to Walter P. Cartier; 6/27/1994 to Richard G. Noble; 3/23/2001 to Paula S. Yancey

Compensatory leave may not to be certified to PERS for additional service credit- Miss. Code Ann. §§25-3-92, 25-3-93, and 25-3-95 (1972, as amended)

Leave policy may not be retroactive – Opinions dated 8/14/1998 to Edward Ranck; 9/6/2002 to Wendell H. Trapp; 11/01/2002 to Olen C. Bryant, Jr.

Unused leave may not be accumulated for “retirement purposes only”; Leave which expires at the end of each year may not be certified or “banked” for certification to PERS; Other categories of leave which are not available to state employees may not be certified - Opinions dated 6/27/1994 to Richard G. Noble; 5/26/1998 to Frank Ready; 11/01/2002 to Olen C. Bryant, Jr.

Transfer of leave between and among state agencies, universities and community colleges - Miss. Code Ann. §25-3-97 (1972, as amended); Opinion dated 4/27/2001 to Ronald D. Michael

Accumulated leave associated with a refund of contributions becomes void - Miss. Code Ann. §25-11-117 (1972, as amended)

When leave may be certified to PERS (e.g. upon withdrawal from service) - Miss. Code Ann. §25-11-103(1)(i) (1972, as amended)

Leave may not be used to qualify for minimum vesting requirement for retirement, disability or survivor benefits – Miss. Code Ann. § 25-11-109(1) (1972, as amended)

Certification of leave in cases of dual employment – Opinions dated 12/28/1992 to Milton G. Walker and 2/16/2001 to Frank Ready

Calculation of leave for elected officials – Miss. Code Ann. 25-11-109(2) (1972, as amended) and Opinion dated 2/16/2001 to Frank Ready

Authority of public school districts to establish a leave policy - Miss. Code Ann. §37-7- 307(2) (1972, as amended)

Authority for counties, municipalities or other juristic entities to establish leave policies - Miss. Code Ann. §25-11-103(1)(i) (1972, as amended); Opinions dated 7/18/1997 to William Dean Stark; 9/10/1999 to Jane Ward; 3/23/2001 to Paula S. Yancey

Leave for Court Reporters - Miss. Code Ann. §9-13-15; §9-13-17; §9-13-19 (1972, as amended); Opinion dated 5/26/1998 to Frank Ready

Leave for Compulsory School Attendance Officers - Miss. Code Ann. §37-13-89(6) (a) (1972, as amended); Opinion dated 8/18/1998 to Edward Ranck

Leave for employees of Community and Junior Colleges – Opinions dated 3/8/1990 to David M. Haraway; 4/27/2001 to Ronald D. Michael; and 10/31/2003 to Frank Ready.

Payment of personal leave to state and university employees (other than 9 month faculty employees) upon termination– Miss. Code Ann. §25-3-93(4) (1972, as amended) ; Opinion dated 9/2/1992 to Thomas H. Dyson

Payment of major medical leave to state and university employee in event of disability - Miss. Code Ann. §25-3-97(3) (1972, as amended)

Payment of personal leave to state and university employee in event of death - Miss. Code Ann. §25-3-97(6) (1972, as amended)

Payment of frozen leave- Miss. Code Ann. §25-3-99 and §25-11-103(1)(f) (1972, as amended)

Payment of major medical leave to nine-month faculty member of 8 institutions of higher learning upon retirement- Miss. Code Ann. §25-3-95(5) (1972, as amended)

Payment of up to 30 days personal and sick leave for licensed and non-licensed public school employees upon retirement- Miss. Code Ann. §37-7-307(5) (1972, as amended)

Payment of upon to 30 days leave upon termination for employees of political subdivisions - Miss. Code Ann. §25-11-103(1)(k) (1972, as amended)

Payment of leave to employees of a county, municipality or other political subdivision - Miss. Code Ann. §25-11-103(1)(k) (1972, as amended)

(History: Adopted effective February 1, 2004; amended 6/21/2005 to be effective 8/1/2005; amended and reformatted July 1, 2007; amended December 1, 2009; amended July 1, 2010, amended effective July 1, 2017, amended effective March 1, 2026)

Chapter 52 Payroll Deduction of Retiree Group Life and Health Insurance 100 Purpose The purpose of this regulation is to define the circumstances under which PERS is authorized to deduct group life and health insurance premiums from the retirement allowances of retirees.

27 Miss. Admin. Code Pt. 210, R. 101 Payroll Deduction

1. Any retired member or beneficiary receiving a retirement allowance or benefit pursuant to any retirement system administered by the Board of Trustees of the Public Employees’ Retirement System (PERS) may authorize the system to make

deductions there from for the payment of insurance premiums for employer or system sponsored group life and health insurance. 2. The executive director shall prescribe, subject to these rules, the procedures and forms for the filing of authorizations. 3. The sponsoring entity must adopt a resolution approving payment by payroll deduction. 4. Unless otherwise authorized by the executive director, payment to a sponsoring entity/insurance provider must be made by direct deposit from PERS. 5. Unless otherwise authorized by the executive director, billing from any sponsoring entity/insurance provider will be automated and in the format specified by the system, known as the “Vendor Billing Requirements.”

6. Not fewer than 500 retirees must initially authorize the deduction for payment to the same group health or life insurance provider. 7. Authorization shall be filed in the office of the board. However, the executive director may prescribe in the alternative, filing such authorization with the insurer issuing the group life or health insurance plan, if such insurer has undertaken in a writing filed with the board to: a. Supply to the board with statements of deductions as specified in authorizations received by it and to hold the State, the board and its employees harmless from liability for any errors in withholding or transmitting deductions pursuant to such statements except for moneys actually withheld but not transmitted. b. Keep all authorizations received by it available for inspection by authorized representatives of the board. c. Sign a statement that any information provided by PERS with regard to its retirees, including but not limited to names, addresses, identification numbers, etc, must be kept confidential and will not be shared with or released to any third party or used in any way except for the express purposes of providing the insurance coverage pursuant to which the withholding authorization is executed.

7. Authorizations or changes thereto must be received by PERS no later than the 10th of any month to become effective on the 1st day of the following month. The system shall make the deductions authorized and pay to the organization the amounts deducted, until the authorization is revoked in writing by the person. 9. PERS may charge the insurance provider an amount not exceeding the actual costs incurred by the system in making the deductions.

(History: Adopted effective July 1, 2004; reformatted August 1, 2007)

Chapter 53 PERS’s Organization and Method of Operation

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to describe the organizational structure of the Public Employees’ Retirement System of Mississippi (PERS), the composition of its Board of Trustees, and the programs for which it is responsible

27 Miss. Admin. Code Pt. 210, R. 101 Organization of PERS

1. Composition of the Board of Trustees

The Board of Trustees of the Public Employees’ Retirement System of Mississippi (PERS Board) was created by legislative enactment in 1952. Membership of the PERS Board is set forth in Miss. Code Ann. §25-11-15 (1972, as amended) and consists of the following ten (10) representatives: the state treasurer; one representative who is a member of the System and who is appointed by the Governor; two members elected by state employees; one member elected by county employees; one member elected by municipal employees; one member elected by employees of the State Institutions of Higher Learning; two retirees elected by retired members; and one member elected by employees of the public schools and employees of the public community/junior colleges. Each member fills a term as specified in the statute, generally a six-year term unless the member serves ex officio or is appointed.

2. Programs Administered by the Board of Trustees

This PERS Board is responsible for the administration of a number of retirement systems and retirement related programs including the following: a. Social Security coverage pursuant to the Federal-State Agreement executed in 1952; b. Public Employees’ Retirement System of Mississippi, established effective February 1, 1953; c. Mississippi Highway Safety Patrol Retirement System, established effective July 1, 1958; d. Mississippi Government Employees’ Deferred Compensation Plan and Trust, established in 1973 with administration transferred to PERS in 1974; e. 19 Local Retirement Systems (now closed to new members and which are comprised of 17 Firemen’s and Policemen’s Disability and Relief Funds and 2 Municipal Retirement Systems), with administration transferred to PERS in 1987; f. Supplemental Legislative Retirement Plan, established effective July 1, 1989; g. Retiree’s Insurance Program, established effective July 1, 1988; and

h. The Optional Retirement Plan for teaching and administrative faculty of the Institutions of Higher Learning, established effective July 1, 1990.

3. Day-to-Day Operations of the Retirement Programs

The PERS Board has the authority to appoint the Executive Director, who serves at the will and pleasure of the PERS Board, and to employ staff for the administration of the programs under its purview. The Executive Director and

staff, in concert with various consultants, provide the day-to-day operations of the various programs under the administrative authority of the PERS Board.

The staff of PERS oversees the collection of contributions and the payment of benefits for all the retirement plans, except the following: a. The Social Security coverage where benefits are administered by the Social Security Administration; b. The Mississippi Government Employees’ Deferred Compensation Plan and Trust, which is administered by a third party administrator selected by the PERS Board; c. The Retiree’s Insurance Program, which is administered by life and health insurance companies selected by the PERS Board; and d. The Optional Retirement Plan, which is funded with contributions made directly to annuity contracts or mutual fund accounts underwritten by annuity carriers or offered by other providers and from which benefits are distributed.

4. Place of Business

The Public Employees’ Retirement System of Mississippi is located at 429 Mississippi Street, Jackson, Mississippi 39201. The phone numbers for reaching PERS are 601-359-3589 and 800-444-7377.

(History: Adopted effective August 1, 2005; reformatted effective August 1, 2007; amended effective April 1, 2012)

Chapter 54 Administration of Retired Public Safety Officer Retirement Distribution for Health Insurance

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to provide the administrative framework for implementing the special tax exclusion made available by Section 845 of the Pension Protection Act of 2006 to an “eligible retired public safety officer” of all qualifying retirement systems administered by the Board of Trustees of the Public Employees’ Retirement System.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Description of Tax Exclusion Section 845 of the Pension Protection Act of 2006 amends IRC §402 to allow an “eligible retired public safety officer” to make an election to exclude from federal gross income up to $3,000 of his or her retirement plan benefits if such amount is deducted from the retired member’s benefit and paid directly by the retirement plan for health insurance or long term care insurance premiums. For this purpose, all eligible retirement plans must be treated as a single plan, i.e., a retiree gets only one $3,000 exclusion per calendar year.

The income exclusion is available if and to the extent the retirement plan agrees to deduct and then remit qualifying premiums directly to the insurance provider. Statutory authority as found in Miss. Code Ann. §25-11-129, 25-13-31 and 21-29-307 allows a retired member receiving a retirement benefit to authorize deductions from his or her retirement benefit for the payment of employer or system sponsored group health insurance, subject to the rules and regulations adopted by the Board of Trustees of the

Public Employees’ Retirement System on behalf of the retired members of the Public Employees’ Retirement System (PERS), the Mississippi Highway Safety Patrol Retirement System (MHSPRS), and the Municipal Retirement Systems (MRS). This tax exclusion is available to those Eligible Retired Public Safety Officers who have health insurance premiums deducted by PERS from their retirement or disability benefits. Those eligible retired public safety officers who receive monthly retirement benefits and use those funds to pay eligible insurance premiums directly may claim an exclusion from gross income up to $3,000 on his or her tax return.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Definition of Retired Public Safety Officer “Retired Public Safety officer” means an individual who served and retired from public service by reason of disability or attainment of normal retirement age with a public agency in an official capacity as a law enforcement officer, as a firefighter, as a chaplain, or as a member of a rescue squad or ambulance crew, as those terms are defined in section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 which is codified in 42 U. S. C. 3796b(8)(A) and as interpreted from time to time by the Department of Justice.

1. The term “official capacity” means an individual who served a public agency in an official capacity only if a. he was officially authorized, recognized, or designated by such agency as functionally within or part of it; and b. his acts and omissions, while so serving, were legally those of such agency, which legally recognized them as such. 2. The term “law enforcement officer” means an individual who was involved in crime and juvenile delinquency control or reduction, or enforcement of the criminal laws (including juvenile delinquency), including, but not limited to police, corrections, probations, parole and judicial officers. a. The term “involved” means an individual who was involved in crime (an act or omission punishable as a criminal misdemeanor or felony) and juvenile delinquency control or reduction, or enforcement of the criminal laws (including juvenile delinquency), only if he was an officer of a public agency and, in that capacity, had legal authority and responsibility to arrest, apprehend, prosecute, adjudicate, correct or detain (in a prison or other detention or confinement facility), or supervise (as a parole or probation officer), persons who were alleged or found to have violated the criminal laws, and was recognized by such agency, or the relevant government to have such authority and responsibility. b. The term “criminal laws” means that body of law that declares what acts or omissions are crimes and prescribes the punishment that may be imposed for the same. c. The term “correctional facility” means any place for the confinement or rehabilitation of offenders or individuals charged with or convicted of criminal offenses. 3. The term “firefighter” means an individual who a. Was trained in (i) suppression of fire; or (ii) hazardous-materials emergency response; and b. Had the legal authority and responsibility to engage in the suppression of fire, as an employee of the public agency he served, which legally recognized him to have such. 4. The term “chaplain” means a clergyman or other individual trained in pastoral counseling who served as an officially recognized or designated member of a legally organized police or fire department.

2. The term “member of a rescue squad or ambulance crew” means an officially recognized or designated public employee member of a rescue squad or ambulance crew. 6. Examples of positions that appear to be “Public Safety Officers,” assuming the above conditions are met:

Police officer (including a member of the Mississippi Highway Safety Patrol) Firefighter Chaplain of a police or fire department Sheriff Deputy Sheriff Constable Regular Member of a rescue squad or ambulance crew Narcotics Agent Department of Wildlife, Fisheries & Parks Conservation Officer Department of Wildlife, Fisheries & Parks Game Warden Corrections Officer Parole Officer Department of Transportation Enforcement Officer Department of Transportation Weight Enforcement Officer Forestry Commission Forest Ranger Gaming Commission Enforcement Agent Public Service Commission Regulated Carrier Enforcement Officer State Hospital Security Officer University Police Officer Tax Commission ABC Enforcement Agent Tax Commission Scale Enforcement Officer Judge whose responsibility it was to adjudicate criminal matters Attorneys whose responsibility it was to prosecute criminal matters

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Eligible Retired Public Safety Officer The election is only available to individuals who, by reason of disability or attainment of normal retirement age, retired from service as a Public Safety Officer.

1. Attainment of Normal Retirement Age a. PERS- For purposes of this regulation, and except as otherwise provided by the Internal Revenue Service, the “attainment of normal retirement age” under the Public Employees’ Retirement System shall be defined as: i. having twenty-five (25) or more years of creditable service if the member entered PERS-covered service before July 1, 2011; ii. having thirty (30) or more years of creditable service if the member entered PERS-covered service on or after July 1, 2011; iii. having four (4) or more years of membership service at age 60 or later if the member entered PERS-covered service before July 1, 2007; iv. having eight (8) or more years of membership service at age 60 or later if the member entered PERS-covered service on or after July 1, 2007, but before July 1, 2011; v. having eight (8) or more years of membership service at age 65 or later if the member entered PERS-covered service on or after July 1, 2011.

b. MHSPRS - For purposes of this regulation, and except as otherwise provided by the Internal Revenue Service, the “attainment of normal retirement age” under the Mississippi Highway Safety Patrol Retirement System shall be defined as the age at which an eligible Public Safety Officer retires on an unreduced benefit, i.e., someone who retired with 5 or more years of membership service at age 55 or older, or someone who retired with 25 or more years of service regardless of age. Any Retired Public Safety Officer whose retirement benefit was subject to an early retirement benefit reduction at the time of retirement is not eligible for this election, i.e., someone who retired with 20 or more but less than 25 years of service. c. MRS - For purposes of this regulation, and except as otherwise provided by the Internal Revenue Service, all members who have retired or will retire under one of the Municipal Fire and Police Retirement Systems will be considered to have “attained normal retirement age.” 2. Disability retirement benefits eligible for the exclusion A Retired Public Safety Officer receiving a disability retirement allowance is eligible for the tax exclusion up to the allowable limit for premiums withheld to the extent that his or her disability retirement benefit is taxable. Duty-related disability benefits paid are already tax-exempt, and thus amounts withheld for health insurance premiums would not be subject to the tax-exclusion provisions of Section 845 of the Pension Protection Act of 2006. However, if any portion of a disabled Retired Public Safety Officer’s disability benefit is taxable, an election may be made to exclude amounts withheld for the payment of eligible insurance premiums to the extent such benefits would otherwise be taxable.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Premiums eligible for the exclusion Insurance premiums may be withheld from the retirement benefit of the Eligible Retired Public Safety Officer. Such premiums may be for the benefit of the retiree and his or her spouse and/or dependents. Only the Eligible Retired Public Safety Officer may elect to have the insurance premiums excluded from taxation.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Qualified health insurance plans 1. While federal law allows a governmental retirement plan to agree to deduct and then remit premiums directly to the provider of an accident or health insurance plan or qualified long-term care insurance contract, state law only allows PERS, on behalf of retirees of the retirement plans administered by the Board, to make such premium deductions for employer or system sponsored group health insurance in accordance with PERS Board Regulation 52. Therefore, an election may only be made with regard to such health insurance premiums. 2. For purposes of the election for the tax exclusion provided by Section 845 of the Pension Protection Act of 2006, an employer-provided accident or health insurance plan receiving the payments may be an insured plan as well as a self-insured plan.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Election 1. When the election must be made - An Eligible Retired Public Safety Officer may elect to have the tax exclusion apply in any taxable year to eligible premiums. An

Eligible Retired Public Safety Officer will make the election on the retiree’s IRS Form 1040, in accordance with the instructions thereto. 2. Amount of Tax Exclusion- An Eligible Retired Public Safety Officer is only permitted to have actual eligible insurance premiums excluded from taxation in an aggregate amount from all plans not to exceed $3,000, even if he or she is receiving benefits from more than one retirement plan, e.g., a defined benefit plan such as PERS, MHSPRS or MRS, and an IRC Section 457 (Mississippi Deferred Compensation Plan) or 403(b) plan.

27 Miss. Admin. Code Pt. 210, R. 107 Rule 107

Responsibility for Income Taxes 1. In administering the tax exemption, PERS is only responsible for performing the administrative functions associated with the deduction and payment of qualifying health insurance premiums. The retired member is and remains responsible for income tax liability for retirement benefits paid pursuant to the retirement plans administered by PERS. PERS has no responsibility for tax liability, including interest and penalties that may arise from an Eligible Retired Public Safety Officer’s participation in this tax exclusion. 2. By making the election, the Retired Public Safety Officer agrees that any benefit or privilege granted under this election is subject to change or revocation, and that PERS is not responsible for any consequence of any change in the availability of the exclusion, including unexpected tax liability, interest, and penalties.

27 Miss. Admin. Code Pt. 210, R. 108 Rule 108

Effective Date As the provisions of Section 845 of the Pension Protection Action of 2006 are effective for eligible distributions made in tax years beginning on or after January 1, 2007, and as the Board of Trustees determines that this regulation only confers a benefit to those Retired Public Safety Officers eligible for the tax exclusion, the effective date of this regulation shall be January 1, 2007.

(History: Adopted effective January 1, 2007; amended effective January 19, 2009; amended effective July 1, 2011, amended effective March 1, 2026)

Chapter 55 Administration of Excess Benefit Arrangements for all Defined Benefit Plans Administered by the PERS Board of Trustees

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to provide the administrative framework for the implementation of an excess benefit arrangement for each defined benefit pension plan administered by the PERS Board of Trustees where retirement benefits as provided by state statute must be limited based on the restrictions of Internal Revenue Code Section 415 and corresponding provisions of state law.

27 Miss. Admin. Code Pt. 210, R. 101 Administration of excess benefit arrangements

1. The Board of Trustees of the Public Employees’ Retirement System (Board), pursuant to the authority vested in it by virtue of Miss. Code Ann. Sections 25-11-15, 25-11-301, 25-13-7 (Rev. 2006), 21-29-105 and 21-29-207 (Rev. 2001) shall maintain and administer a

qualified governmental excess benefit arrangement under Section 415(m) of the Internal Revenue Code of 1986 (the Code), as amended from time to time, for the purpose of providing the retirement allowances payable from the Public Employees’ Retirement System, the Supplemental Legislative Retirement Plan, the Mississippi Highway Safety Patrol Retirement System or the Municipal Retirement Systems that would otherwise be limited by Section 415 of the Code. 2. The excess benefit arrangement, as provided herein, shall be maintained solely for the purpose of providing participants in the excess benefit arrangements that part of the participant’s annual benefit, otherwise payable under the applicable state law, that exceeds the limitations on benefits imposed by Section 415 of the Code. Participants do not make an election, directly or indirectly, to defer compensation to the excess benefit arrangement. 3. The Board shall have the authority to establish the necessary and appropriate policies and procedures for the administration of such benefit arrangements under the Code and to determine all questions arising in connection with the arrangements (including its interpretation and factual questions arising there under). The Board shall have the duty and responsibility to maintain records, perform calculations, and determine benefits payable there under. 4. he qualified excess benefit arrangement shall be a separate portion of each system noted in sub-section 101.1. Each system shall establish a separate account to hold employer contributions from which excess benefits shall be paid. 5. These excess benefit arrangements shall be administered by the Board of Trustees of the Public Employees’ Retirement System. The Board shall have the same authority in its administration as it has in the administration of the Public Employees’ Retirement System, the Supplemental Legislative Retirement Plan, the Mississippi Highway Safety Patrol Retirement System, and the Municipal Retirement Systems. 6. The excess benefit arrangements shall constitute qualified governmental excess benefit arrangements as provided in Section 415(m) of the Code.

27 Miss. Admin. Code Pt. 210, R. 102 Participation in excess benefit arrangement

All retired members and beneficiaries of the aforementioned four (4) defined benefit retirement plans administered by the Public Employees’ Retirement System whose effective retirement dates are July 1, 1998, or after, and whose retirement allowances would be or have been limited by Section 415 of the Code shall be participants in the arrangements. Participation in the arrangements shall be determined each calendar year and will cease for any year in which the retirement allowance of a member or beneficiary is not limited by Section 415 of the Code.

27 Miss. Admin. Code Pt. 210, R. 103 Determination of benefit amount

At such time during the calendar year as the participant or beneficiary receives the maximum benefit allowable under Section 415 of the Code, no additional benefits shall be paid out of the system. Thereafter, any benefit amount due as provided by applicable state law shall be paid from the excess benefit arrangement on a monthly basis. The excess benefit shall be subject to withholding for applicable state and federal taxes. The excess benefit shall be paid in accordance with the retirement payment option selected by the member or beneficiary.

27 Miss. Admin. Code Pt. 210, R. 104 Financing the Excess Benefit Arrangement

1. The arrangements at all times shall be entirely unfunded and no provision shall at any time be made with respect to segregating any assets of any of the systems for payment of benefits hereunder. 2. The Board, in accordance with the recommendation of the actuary, shall determine the required employer contributions for each of the four (4) excess benefit arrangements to pay benefits each calendar year. The required contribution for each of the four (4) excess benefit arrangements respectively in each calendar year shall be the total amount of benefits payable under this excess benefit arrangement to all participants in each system plus the amount required to pay the administrative expenses of the excess benefit arrangement and the employer's share of any employment taxes on the benefits paid from the arrangement, where applicable. 3. The required contributions for the payment of said excess benefits shall be paid by the participating employers from an allocation of the employer contribution amount calculated by the actuary to fund the benefit prescribed by law without regard to the limitation. 4. The required contribution for each arrangement shall be deposited into the separate account for each arrangement. Each excess benefit arrangement is intended to be exempt from federal income tax under Internal Revenue Code Sections Section 115 and Section 415(m)(1). 5. The benefit liability of each arrangement shall be determined on a calendar year basis, and contributions shall not be accumulated to pay benefits in future calendar years. Any assets of the arrangements not used to pay benefits in the current calendar year shall be used for payment of the administrative expenses of the excess benefit arrangement for the current or future calendar years or shall be paid to the appropriate retirement system as an additional employer contribution.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Treatment of Benefits – Benefits exempt from taxes, attachment or other process, and unassignable

The benefits payable from the excess benefit arrangements shall be treated in accordance with Miss. Code Ann. Sections 25-11-129, 25-11-319, 25-13-31 (Rev. 2006), and 21-29- 307(Rev. 2001), respectively.

27 Miss. Admin. Code Pt. 210, R. 106 Effective Date

The provisions of any excess benefit arrangement created pursuant to the authority cited in this Regulation, and any administrative rules promulgated as a result of these provisions, shall apply to all retired members and beneficiaries of the defined benefit plans administered by PERS effective from and after July 1, 2007.

(History: Adopted April 24, 2007 to be effective July 1, 2007)

Chapter 56 Employer Contributions to the Government Employees’ Deferred Compensation Plan and Trust

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of the regulation is to provide administrative guidance for administering employer contributions to the Government Employees’ Deferred Compensation Plan and Trust.

27 Miss. Admin. Code Pt. 210, R. 101 Authority for Employer Contributions

Miss. Code Ann. Section 25-14-1 et. seq. (1972, as amended) authorizes the establishment of the Government Employees’ Deferred Compensation Plan and Trust. Pursuant to this authority, MCA Section 25-14-5 provides that a county, municipality, or other political subdivision, except community and junior college districts, may make contributions to the Plan on behalf of actively participating members, provided such contributions are made on a uniform basis through an employer contribution agreement as provided for in the Mississippi Deferred Compensation Plan and Trust Plan Document.

27 Miss. Admin. Code Pt. 210, R. 102 Actively Participating Member

An actively participating member is any employee of an employer authorized to make Employer Contributions to the Mississippi Deferred Compensation Plan and Trust who has enrolled as a participant in the Plan and who is actively contributing to the Plan. For purposes of this regulation, such employee will be referred to as an actively contributing participant.

27 Miss. Admin. Code Pt. 210, R. 103 Employer Election to Provide for Employer Contributions

1. Any employer eligible to make employer contributions as noted in Section 101 who participates in the Government Employees’ Deferred Compensation Plan and Trust may execute an Employer Contribution Addendum to provide an employer contribution to the account of actively contributing participants. The employer contribution must be made available to all actively contributing participants of the employer, without regard to any probationary period, in accordance with one of the methodologies noted in Subsection 3 of this Section.

2. Each Employer Contribution Addendum shall expressly provide the following:

a. that the employer has the budgetary and statutory authority to make contributions to the Plan on behalf of actively contributing participants; and b. that, if adopted, employer contributions will be available on a uniform basis to all actively contributing participants; and c. the basis for making employer contributions as noted in Subsection 3.b of this Section; and d. the time period for which employer contributions will be made, if such contributions are not anticipated, intended, or guaranteed to be on-going. Employer contributions shall be transferred to the Third Party Administrator as part of the regular payroll process and included with the employee contributions; and e. the actively contributing participant will be 100% vested in the employer contributions at the time the contributions are made on the participant’s behalf.

3. In order for employer contributions to be considered made on a “uniform basis,” such contributions must:

a. be made for all actively contributing participants not to exceed the basic annual deferral amount specified in Section 4.1 of the Deferred Compensation Plan Document when aggregated with the employee contributions; and b. be based on one of the following methodologies: (i) a specific dollar amount per pay period; or (ii) a dollar for dollar match per pay period; or (iii) a specific dollar amount per pay period or a dollar for dollar match per pay period up to a specific percent of either salary or employee contribution.

27 Miss. Admin. Code Pt. 210, R. 104 Timing and Method of Payment of Employer Contributions

Each employer who has executed an Employer Contribution Addendum shall make all contributions to the Plan and Trust in the form of cash. Employer contributions shall be paid to the Plan and Trust monthly as part of the regular payroll process no later than the seventh (7th) working day of each month.

27 Miss. Admin. Code Pt. 210, R. 105 Allocation, Investment, and Accounting for Employer Contributions

The Third Party Administrator shall allocate the employer contributions to the account of each actively contributing participant on whose behalf such contributions are made. Such amounts shall be invested in accordance with the investment election of the participant. The amounts shall be accounted for as a part of the participant’s account subject to the same limitations and rights as contributions made by the participant. The employer, Board of Trustees, and Third Party Administrator shall be under no duty to question any investment direction of a participant; nor shall they be held responsible in any manner for investment loss or depreciation in asset value of any such investments.

27 Miss. Admin. Code Pt. 210, R. 106 Benefits, Withdrawals, and Distributions

All benefits, withdrawals, and distributions, whether attributable to employee contributions or employer contributions, will be disbursed according to the terms of the Plan and Trust.

27 Miss. Admin. Code Pt. 210, R. 107 Maximum Contribution Limits to Deferred Compensation Plan

Employer contributions shall be aggregated with any employee contributions for purposes of determining compliance with the applicable basic annual deferral amount specified in Internal Revenue Code Section 457(e) and as outlined in Section 4.1 of the Deferred Compensation Plan Document.

(History: Adopted February 26, 2008, to be effective April 1, 2008)

Chapter 57 Release of Member Information to Participating Employers

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to identify the circumstances under which the Public Employees’ Retirement System (PERS) is authorized to disclose to the employer the name,

address, or contents of an individual member’s record without the prior written consent of the individual to whom the record pertains.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Authority for disclosure of information Miss. Code Ann. § 25-11-119(3) (1972, as amended) provides that PERS shall not disclose the name, address, or contents of any individual member records without the prior written consent of the individual to whom the record pertains, except to the member’s current or former employer as authorized by regulations of the board.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Conditions for disclosure Otherwise exempt information may be disclosed to a participating employer that is a department, agency, or instrumentality of this state, if the executive director determines that the disclosure: 1. is necessary or proper for the administration of the department, agency, or instrumentality, or 2. is necessary to enable the department, agency, or instrumentality to carry out the duties of the office.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Confidentiality requirements for release of information The participating employer requesting otherwise exempt information must agree in writing to limit the use of such information solely for the purpose stated in the request and to protect the confidential information from disclosure, whether directly or indirectly.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Information that may be disclosed to participating employers The following information may be disclosed pursuant to this regulation: 1. list of names and addresses on file for current or former employees of the department, agency, or instrumentality; 2. list of employees currently eligible to retire or eligible to retire within an employer- specified number of years based on service or age and service where such information is necessary for succession planning purposes; 3. list of employees retired from the agency; 4. demographic information on current or retired employees necessary for an employer to provide health insurance coverage for active or retired employees; 5. information necessary for proper enrollment in retirement plans administered by PERS; and 6. information necessary for compliance with Governmental Accounting Standards Board (GASB) reporting.

(History: Adopted effective October 1, 2008; amended effective August 1, 2012, amended effective March 1, 2026)

Chapter 58 Payment of Additional Benefit (COLA) to Retirees of the Mississippi Highway Safety Patrol Retirement System

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

The purpose of this regulation is to provide for the payment of the additional benefit authorized by Miss. Code Ann. § 25-13-12 (1972, as amended) to retirees of the Mississippi Highway Safety Patrol Retirement System.

27 Miss. Admin. Code Pt. 210, R. 101 Eligibility for an additional benefit

Any member who is receiving a retirement allowance for service or disability retirement, or any beneficiary thereof, who has received a monthly benefit for at least one (1) full fiscal year, shall be eligible to receive an additional benefit, on December 1 or July 1 of the year as provided in Section 104 of this regulation.

27 Miss. Admin. Code Pt. 210, R. 102 Calculation of the additional benefit for a retiree

Effective July 1, 2002, the additional benefit shall be equal to the sum of: 1. An amount equal to three percent (3%) of the annual retirement allowance multiplied by the number of full fiscal years in retirement before the end of the fiscal year in which the member reaches age sixty (60) or the age established in the latest phase that has been implemented under subsection (3) of this section, plus 2. An additional amount equal to three percent (3%) compounded by the number of full fiscal years in retirement beginning with the fiscal year in which the member reaches age sixty (60) or the age established in the latest phase that has been implemented under subsection (3) of this section, multiplied by the amount of the annual retirement allowance. 3. The amount of the additional benefit provided is calculated using the following formula:

[ (1.03)ⁿ - 1] x [annual retirement allowance], where ⁿ is the number of full fiscal years in retirement beginning with the fiscal year in which the member reaches age sixty (60).

4. In the calculation of the additional benefit payment, the age at which the compounding begins may be lowered in accordance with § 25-13-12 (3), when, and only when, the mathematical calculations performed by the actuary using the assumptions adopted by the board reflect that compounding the portion of the additional benefit provided in paragraph 2 above at an age lower than 60 will not cause the unfunded accrued actuarial liability amortization period to exceed twenty (20) years. 5. Effective July 1, 2002, the age at which compounding begins is age sixty (60).

27 Miss. Admin. Code Pt. 210, R. 103 Calculation of the additional benefit for a beneficiary

The calculation of the beneficiary’s additional benefit provided in § 25-13-12 shall be based on the member’s age and full fiscal years in retirement as if the member had lived.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Payment of unpaid additional benefits upon death of retiree or beneficiary

1. If a retiree who is receiving a retirement allowance that will terminate upon the retiree’s death is receiving the additional benefit in one (1) payment and dies on or before July 1 but before December 1, the beneficiary designated on the retirement application, if any, shall receive in a single payment a fractional part of the additional benefit based on the number of months in which a retirement allowance was received during the fiscal year. If there is no surviving beneficiary, payment shall be made in accordance with § 25-13-21.1 (1). Likewise, if a retiree is receiving a retirement allowance that will terminate upon the retiree’s death in two (2) to six (6) monthly installments, any remaining payments of the additional benefit will be paid in a lump sum to the beneficiary designated on the application, or if none, in accordance with § 25- 13-21.1(1). 2. Any similar remaining payments of the additional benefit payable to a deceased beneficiary who was receiving a monthly benefit shall be payable in accordance with the provisions of § 25-13-21.1(2). If the additional benefit is being received in one (1) payment each year, the additional benefit shall be prorated based on the number of months in which a retirement allowance was received during the fiscal year when (i) the monthly benefit payable to a beneficiary terminates due to the expiration of an option, remarriage or cessation of dependent status or due to the retiree’s return to covered employment, and (ii) the monthly benefit terminates on or after July 1 and before December 1.

27 Miss. Admin. Code Pt. 210, R. 105 Methods of Payment of the additional benefit

1. The additional benefit shall be paid in one (1) payment in December of each year to those persons who are receiving a retirement allowance on December 1 of that year, unless an election is made as noted below. However, the board, in its discretion, may allow a retired member or a beneficiary thereof who is receiving the additional benefit in one (1) payment each year to have the additional benefit paid in monthly installments if the retired member or beneficiary submits satisfactory documentation that the continued receipt of the additional benefit in one (1) payment each year will cause a financial hardship to the retired member or beneficiary.

2. Retired members or beneficiaries thereof who are receiving a retirement allowance may elect by an irrevocable agreement in writing filed in the Office of the Public Employees' Retirement System no less than thirty (30) days before July 1 of any year, to begin receiving the additional benefit provided in this section in twelve (12) equal monthly installments beginning on July 1 of the year. This irrevocable agreement shall be binding on the member and subsequent beneficiaries. Payment of the monthly installments shall not extend beyond the month in which a retirement allowance is due and payable. The board, in its discretion, may allow a retired member or a beneficiary thereof who is receiving the additional benefit in monthly installments to have the additional benefit paid in one (1) payment in December of each year if the retired member or beneficiary submits satisfactory documentation that the continued receipt of the additional benefit in monthly installments will cause financial hardship to the retired member or beneficiary.

3. The additional benefit or benefits provided in this section are for the fiscal year in which they are paid. 4. In the event of death of a retired member or a beneficiary thereof who is receiving the additional annual payment in two (2) to six (6) monthly installments under an election made before July 1, 2002, and who would otherwise be eligible to receive the

additional benefit provided in this section in one (1) payment in December of the current fiscal year, any remaining amounts shall be paid in a lump sum to the designated beneficiary.

27 Miss. Admin. Code Pt. 210, R. 106 Resumption of additional benefit upon subsequent retirement

When a member retires after July 1 and has previously received a retirement allowance for one or more full fiscal years, the retired member shall be eligible immediately for the additional benefit. The additional benefit shall be based on the current retirement allowance and the number of full fiscal years in retirement and shall be prorated and paid in monthly installments based on the number of months a retirement allowance is paid during the fiscal year.

(History: Adopted effective January 19, 2009)

Chapter 59 Plan Assumptions

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation reflects the applicable actuarial assumptions adopted by the Board of Trustees of the Public Employees’ Retirement System of Mississippi (PERS Board) used to convert a retirement allowance from the normal (maximum) form of payment to an optional form of payment for the Public Employees’ Retirement System of Mississippi, the Supplemental Legislative Retirement Plan, and the Mississippi Highway Safety Patrol Retirement System.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Actuarial Assumptions for the Public Employees’ Retirement System of Mississippi 1. For purposes of determining an “actuarial equivalent” or of an “actuarial computation,” effective July 1, 2026, the PERS Board shall use the following actuarial assumptions for service retirees: a. For Service Retirees: The factors are based on the PubS-2010(B) Retiree Table with the following adjustments: for males, 107% for all ages. For females, 97% up to age 82, 100% for ages 83 to 87, and 110% for ages above 87. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; b. For Contingent Annuitants: The factors are based on the PubS-2010(B) Contingent Annuitant Table with the following adjustments: for males, set forward 2 years, and for females, set forward 3 years. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; c. A 7.00 percent interest assumption; d. An annual Cost-of-Living Adjustment (COLA) of 3 percent is assumed to be on a compounded basis for all ages; and e. Unisex blends of mortality rates are assumed as follows: i. Annuity Values – 30 percent male/70 percent female ii. Full Cash Refund – 25 percent male/75 percent female iii. Certain and Life – 35 percent male/65 percent female iv. Partial Lump Sum – 35 percent male/65 percent female v. Joint and Survivor – 55 percent male/45 percent female

2. For purposes of determining an “actuarial equivalent” or of an “actuarial computation,” effective July 1, 2026, the PERS Board shall use the following actuarial assumptions for disability retirees: a. The factors are based on the Pub.G.H-2010 Disabled Retiree Table with the following adjustments: for males, set forward 1 year and adjusted 134% for all ages, and for females, set forward 2 years and adjusted 125% for all ages. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; b. A 7.00 percent interest assumption; c. An annual Cost-of-Living Adjustment (COLA) of 3 percent is assumed to be on a compounded basis for all ages; and d. Unisex blends of mortality rates are assumed as follows: i. Annuity Values – 30 percent male/70 percent female ii. Full Cash Refund – 30 percent male/70 percent female iii. Certain and Life – 40 percent male/60 percent female iv. Joint and Survivor – 60 percent male/40 percent female

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Actuarial Assumptions for the Supplemental Legislative Retirement Plan 1. For purposes of determining an “actuarial equivalent” or of an “actuarial computation,” effective July l, 2024, the PERS Board shall use the following actuarial assumptions for service retirees: a. For Service Retirees: The factors are based on the PubS-2010(B) Retiree Table with the following adjustments: for males, 107% for all ages. For females, 97% up to age 82, 100% for ages 83 to 87, and 110% for ages above 87. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; b. For Contingent Annuitants: The factors are based on the PubS-2010(B) Contingent Annuitant Table with the following adjustments: for males, set forward 2 years. For females, set forward 3 years. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; c. A 7.00 percent interest assumption; d. An annual Cost-of-Living Adjustment (COLA) of 3 percent is assumed to be on a compounded basis for all ages; and e. Unisex blends of mortality rates are assumed as follows: i. Annuity Values – 30 percent male/70 percent female ii. Full Cash Refund – 25 percent male/75 percent female iii. Certain and Life – 35 percent male/65 percent female iv. Partial Lump Sum – 35 percent male/65 percent female v. Joint and Survivor – 55 percent male/45 percent female 2. For purposes of determining an “actuarial equivalent” or of an “actuarial computation,” effective July 1, 2026, the PERS Board shall use the following actuarial assumptions for disability retirees: a. The factors are based on the PubG.H-2010 Disabled Retiree Table for disabled retirees with the following adjustments: for males, set forward 1 year and adjusted 134% for all ages, and for females, set forward 2 years and adjusted 125% for all

ages. Projection scale MP-2021is used to project future improvements in life expectancy generationally; b. A 7.00 percent interest assumption; c. An annual Cost-of-Living Adjustment (COLA) of 3 percent is assumed to be on a compounded basis for all ages; and d. Unisex blends of mortality rates are assumed as follows: i. Annuity Values – 30 percent male/70 percent female ii. Full Cash Refund – 30 percent male/70 percent female iii. Certain and Life – 40 percent male/60 percent female iv. Joint and Survivor – 60 percent male/40 percent female

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Actuarial Assumptions for the Mississippi Highway Safety Patrol Retirement System 1. For purposes of determining an “actuarial equivalent” or of an “actuarial computation,” effective July 1, 2026, the PERS Board shall use the following actuarial assumptions for service retirees: a. For Service Retirees: The factors are based on the PubS-2010(B) Retiree Table with the following adjustments: for males, 107% for all ages. For females, 97% up to age 82, 100% for ages 83 to 87, and 110% for ages above 87. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; b. For Contingent Annuitants: The factors are based on the PubS-2010(B) Contingent Annuitant Table with the following adjustments: for males, set forward 2 years. For females, set forward 3 years. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; c. A 7.00 percent interest assumption; d. An annual Cost-of-Living Adjustment (COLA) of 3 percent is assumed to be on a compounded basis for all ages; and e. 95 percent male/5 percent female mortality rates are assumed for all option factors. 2. For purposes of determining an “actuarial equivalent” or of an “actuarial computation,” effective July 1, 2026, the PERS Board shall use the following actuarial assumptions for disability retirees: a. The factors are based on the PubG.H-2010 Disabled Retiree Table with the following adjustments: for males, set forward 1 year and adjusted 134% for all ages, and for females, set forward 2 years and adjusted 125% for all ages. Projection scale MP-2021 is used to project future improvements in life expectancy generationally; b. A 7.00 percent interest assumption; c. An annual Cost-of-Living Adjustment (COLA) of 3 percent is assumed to be on a compounded basis for all ages; and d. 95 percent male/5 percent female mortality rates are assumed for all option factors.

27 Miss. Admin. Code Pt. 210, R. 104 Application of Assumptions

Whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, such assumptions will be specified in PERS Board actions and regulations in a manner that precludes employer discretion.

(History of PERS Board Regulation 59: Adopted effective January 19, 2009; amended effective July 1, 2010; amended effective July 1, 2012; amended effective July 1, 2014, amended effective July 1, 2016; amended effective July 1, 2018; amended effective July 1, 2020; amended effective July 1, 2022, July 1, 2024, amended effective July 1, 2026)

Chapter 60 Contribution Rates

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation reflects the current employee and employer contribution rates for the Public Employees’ Retirement System of Mississippi, the Supplemental Legislative Retirement Plan, the Mississippi Highway Safety Patrol Retirement System, and the Optional Retirement Program for Employees of the State Institutions of Higher Learning.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Contribution Rates for the Public Employees’ Retirement System of Mississippi Pursuant to Miss. Code Ann. § 25-11-123 (1972, as amended), the employee and employer contribution rates are as follows:

1. Employee Contribution Rate - 9.00 percent of earned compensation effective July 1, 2010; and 2. Employer Contribution Rate - 18.90 percent of earned compensation effective July 1, 2026.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Contribution Rates for the Supplemental Legislative Retirement Plan Pursuant to Miss. Code Ann. § 25-11-307 (1972, as amended), the Board of Trustees is authorized to set the employer contribution rate on the basis of the liabilities of the plan as shown by the actuarial valuation.

The employee and employer contribution rates are as follows: 1. Employee Contribution Rate – 3.00 percent of earned compensation effective July 1, 1989; and 2. Employer Contribution Rate – 8.40 percent of earned compensation effective July 1, 2024.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Contribution Rates for the Mississippi Highway Safety Patrol Retirement System Pursuant to Miss. Code Ann. § 25-13-7 (1972, as amended), the Board of Trustees of the Public Employees’ Retirement System is authorized to set the employee contribution rate on the basis of the liabilities of the plan as shown by the actuarial valuation. Pursuant to Miss. Code Ann. § 25-13-29 (1972, as amended), the administrative board of the Mississippi Highway Safety Patrol Retirement System is authorized to set biennially the employer contribution percentage rate on the basis of the liabilities of the retirement system as shown by the actuarial valuation.

The employee and employer contribution rates are as follows: 1. Employee Contribution Rate – 7.25 percent of earned compensation effective July 1, 2008; and 2. Employer Contribution Rate – 49.08 percent of earned compensation effective July 1, 2018.

Pursuant to Miss. Code Ann. § 63-15-71 (1972, as amended), the Legislature has levied an additional fee for each certified abstract of operating record furnished by the Motor Vehicle Commission. This fee is deposited into the Mississippi Highway Safety Patrol Retirement System for application to the unfunded accrued liability.

Pursuant to Miss. Code Ann. § 63-1-46 (1972, as amended), the Legislature has levied a fee for the reinstatement of an individual’s suspended driver’s license and has provided that a portion of that fee shall be paid to PERS to provide additional funding for the Mississippi Highway Safety Patrol Retirement System.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Contribution rates for the Optional Retirement Program for Employees of the State Institutions of Higher Learning 1. Pursuant to Miss. Code Ann. § 25-11-411 (1972, as amended), each participant is required to contribute monthly to the optional retirement program the same amount that he or she would be required to contribute to the Public Employees’ Retirement System of Mississippi if he or she were a member of that plan.

Each employer of a participant in the optional retirement program shall contribute on behalf of each participant therein the same amount the employer would otherwise be required to contribute on behalf of such participant if he or she participated in the Public Employees’ Retirement System.

The employee and employer contribution rates are as follows: a. Employee Contribution Rate - 9.00 percent of earned compensation effective July 1, 2010; and b. Employer Contribution Rate - 18.90 percent of earned compensation effective July 1, 2026. 2. Pursuant to Miss. Code Ann. § 25-11-411 (1972, as amended) the Board of Trustees is authorized to deduct not more than two-tenths percent (0.20%) of the participant’s earned compensation to defray the cost of administering the plan. 3. The full amount of the employee contribution which is 9.00 percent of the participant’s earned compensation shall be remitted to the appropriate company or companies for application to the participant’s contract or account or both. 4. For participants initially hired before July 1, 2025, the employers’ contribution of eighteen and nine-tenths percent (18.90%) of the participant’s earned compensation shall be disbursed as follows: a. Two-tenths percent (0.20%) of the participant’s earned compensation shall be paid to PERS as an administrative fee.

b. Three and eight-tenths percent (3.80%) of the participant’s earned compensation shall be remitted to PERS for application to the unfunded accrued liability. c. Fourteen and nine-tenths percent (14.90%) of the participant’s earned compensation shall be remitted to the appropriate company or companies for application to the participant’s contract or account or both. 5. For participants initially hired on or after July 1, 2025, the employers’ contribution of eighteen and nine-tenths percent (18.90%) of the participant’s earned compensation shall be disbursed as follows: a. Two-tenths percent (0.20%) of the participant’s earned compensation shall be paid to PERS as an administrative fee. b. Nine and seven-tenths percent (9.70%) of the participant’s earned compensation shall be remitted to PERS for application to the unfunded accrued liability. c. Up to nine percent (9.00%) of the participant’s earned compensation shall be remitted to the appropriate company or companies for application to the participant’s contract or account or both.

(History of PERS Board Regulation 60: Adopted effective January 19, 2009; amended effective July 1, 2009; amended effective July 1, 2010; amended effective July 1, 2011; amended effective July 1, 2012; amended effective July 1, 2013; amended effective February 1, 2014; amended effective July 1, 2018; amended effective July 1, 2019; amended effective July 1, 2024, amended effective July 1, 2025, amended effective July 1, 2026)

Chapter 61 Compliance with Internal Revenue Service (IRS) Requirements

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to confirm that the defined benefit plans administered by the Board of Trustees of the Public Employees’ Retirement System of Mississippi (PERS Board) shall be administered in accordance with Internal Revenue Service (IRS) requirements applicable to qualified governmental retirement plans.

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Public Employees’ Retirement System of Mississippi 1. The PERS Board shall hold the assets of the Public Employees’ Retirement System of Mississippi (PERS) in trust for the exclusive purpose of providing benefits to participants and paying reasonable expenses of administration. The assets shall be maintained as a separate fund, separate from all other funds held by the PERS Board and shall be used only for the payment of benefits provided by Miss. Code Ann. §25- 11-1 et seq., (1972, as amended) or amendments thereto. 2. It shall be impossible by operation of PERS, by termination, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by other means, for any part of the corpus or income of the trust, or any funds contributed thereto, to inure to the benefit of any employer or otherwise be used for or diverted to purposes other than providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the system.

3. Benefits are provided in accordance with §25-11-1 et seq. Forfeitures of accrued benefits resulting from members electing to receive refunds of employee contributions will not be applied to increase the benefits any member would otherwise receive under these provisions. 4. Benefits payable pursuant to Title 25, Chapter 11 of the Mississippi Code Annotated shall be made in compliance with the limitations set forth in Section 415 of the Internal Revenue Code and any regulations issued there under as applicable to governmental plans. Further, distributions made from PERS shall conform to a good faith interpretation of Section 401(a)(9) of the Internal Revenue Code. 5. Any member of PERS who became a member before July 1, 2007, who is not otherwise vested and who has at least four (4) years of membership service credit will be fully vested in his or her accrued benefit on attaining age 60. Any member of PERS who became a member on or after July 1, 2007, who is not otherwise vested and who has at least eight (8) years of membership service credit will be fully vested in his or her accrued benefit on attaining age 60. Any member of PERS who became a member on or after March 1, 2026, who is not otherwise vested and who has at least eight (8) years of membership service credit will be fully vested in his or her accrued benefit on attaining age 62.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Supplemental Legislative Retirement Plan 1. The PERS Board shall hold the assets of the Supplemental Legislative Retirement Plan (SLRP) in trust for the exclusive purpose of providing benefits to participants and paying reasonable expenses of administration. The assets shall be maintained as a separate fund, separate from all other funds held by the PERS Board and shall be used only for the payment of benefits provided by Miss. Code Ann. §25-11-301 et seq., (1972, as amended) or amendments thereto. 2. SLRP provides benefits that supplement the benefits provided under PERS. Accordingly, the provisions of Miss. Code Ann. §25-11-1, et seq. are incorporated as part of SLRP to the extent they are not inconsistent with the provisions of Miss. Code Ann. §25-11-301, et seq. 3. It shall be impossible by operation of SLRP, by termination, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by other means, for any part of the corpus or income of the trust, or any funds contributed thereto, to inure to the benefit of any employer or otherwise be used for or diverted to purposes other than providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the plan. 4. Benefits are provided in accordance with §25-11-301 et seq. Forfeitures of accrued benefits resulting from members electing to receive refunds of employee contributions will not be applied to increase the benefits any member would otherwise receive under these provisions. 5. Benefits payable pursuant to §25-11-301 et seq. shall be made in compliance with the limitations set forth in Section 415 of the Internal Revenue Code and any regulations issued there under as applicable to governmental plans. Further, distributions made from SLRP shall conform to a good faith interpretation of Section 401(a)(9) of the Internal Revenue Code.

6. Any member of SLRP who became a member of PERS before July 1, 2007, who is not otherwise vested and who has at least four (4) years of membership service credit in PERS will be fully vested in his or her accrued benefit on attaining age 60. Any member of SLRP who became a member of PERS on or after July 1, 2007, who is not otherwise vested and who has at least eight (8) years of membership service credit in PERS will be fully vested in his or her accrued benefit on attaining age 60. 7. SLRP is closed to new employees as of March 1, 2026.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Mississippi Highway Safety Patrol Retirement System 1. The PERS Board shall hold the assets of the Mississippi Highway Safety Patrol Retirement System (MHSPRS) in trust for the exclusive purpose of providing benefits to participants and paying reasonable expenses of administration. The assets shall be maintained as a separate fund, separate from all other funds held by the PERS Board and shall be used only for the payment of benefits provided by Miss. Code Ann. §25-13-1 et seq., (1972, as amended) or amendments thereto. 2. It shall be impossible by operation of MHSPRS, by termination, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by other means, for any part of the corpus or income of the trust, or any funds contributed thereto, to inure to the benefit of any employer or otherwise be used for or diverted to purposes other than providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the system. 3. Benefits are provided in accordance with §25-13-1 et seq. Forfeitures of accrued benefits resulting from members electing to receive refunds of employee contributions will not be applied to increase the benefits any member would otherwise receive under these provisions. 4. Benefits payable pursuant to Title 25, Chapter 13 of the Mississippi Code Annotated shall be made in compliance with the limitations set forth in Section 415 of the Internal Revenue Code and any regulations issued there under as applicable to governmental plans. Further, distributions made from MHSPRS shall conform to a good faith interpretation of Section 401(a)(9) of the Internal Revenue Code. 5. All members of MHSPRS who are not otherwise vested will be fully vested in their accrued benefit on attaining age 55 with at least five (5) years of membership service credit.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Municipal Retirement Systems 1. The PERS Board shall hold the assets of the Municipal Retirement Systems (MRS) in trust for the exclusive purpose of providing benefits to participants and paying reasonable expenses of administration. The assets of each municipal retirement system (including general municipal retirement funds as well as disability and relief funds for firemen and policemen) shall be maintained as separate funds, separate from all other funds held by the PERS Board and shall be used only for the payment of benefits provided by Miss. Code Ann. §§ 21-29-1 et seq., 21-29-101 et seq. and 21-29-201 et seq., (1972, as amended) respectively. 2. It shall be impossible by operation of the MRS, by termination, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by other means, for any part of the corpus or income of the trust, or

any funds contributed thereto, to inure to the benefit of any employer or otherwise be used for or diverted to purposes other than providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the systems. 3. Benefits are provided in accordance with §§ 21-29-1 et seq., 21-29-101 et seq. and 21-29-201 et seq. respectively. Forfeitures of accrued benefits resulting from members electing to receive refunds of employee contributions will not be applied to increase the benefits any member would otherwise receive under these provisions. 4. Benefits payable pursuant to §§ 21-29-1 et seq., 21-29-101 et seq. and 21-29-201 et seq. respectively, shall be made in compliance with the limitations set forth in Section 415 of the Internal Revenue Code and any regulations issued there under as applicable to governmental plans. Further, distributions made from these plans shall conform to a good faith interpretation of Section 401(a)(9) of the Internal Revenue Code. 5. All members of the MRS who are not otherwise vested will be fully vested in their accrued benefit on attaining twenty (20) years of service with the municipality, the last ten (10) of which are continuous in the city in which retirement application is made. 6. MRS System is closed to new employees as of July 1, 1987.

(History: Adopted effective January 19, 2009; amended effective April 1, 2012, amended effective March 1, 2026)

Chapter 62 Crediting of Interest on Member Accumulation Accounts

27 Miss. Admin. Code Pt. 210, R. 101 Purpose

The purpose of this regulation is to reflect the rate of interest credited to a member’s accumulation account in the Public Employees’ Retirement System of Mississippi

(PERS), the Supplemental Legislative Retirement Plan (SLRP), and the Mississippi Highway Safety Patrol Retirement System (MHSPRS).

27 Miss. Admin. Code Pt. 210, R. 102 Statutory Authority to Set Interest Rate PERS

Miss. Code Ann. § 25-11-103 (1972, as amended) defines “accumulated contributions” as the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the annuity savings account, together with regular interest as provided in Miss. Code Ann. § 25-11-123 (1972, as amended). Miss. Code Ann. § 25-11- 121(7) (1972, as amended) authorizes the PERS board of trustees to credit regular interest to the member’s annuity savings account in an amount determined by the board. Section 25-11-123 authorizes the interest to be posted to the member’s account on a monthly basis.

SLRP

Miss. Code Ann. § 25-11-303 (1972, as amended) provides that for purposes of the Supplemental Legislative Retirement Plan the definitions found in the PERS law at § 25- 11-103 will apply unless a different meaning is plainly expressed by the context of the

specific provisions of the Supplemental Plan. Thus, the definition of “accumulated contributions” as found in § 25-11-103, which includes “regular interest” as provided in

§§ 25-11-121 and 25-11-123 above, applies to members of the Supplemental Legislative Retirement Plan.

The Supplemental Legislative Retirement Plan was established effective July 1, 1989.

MHSPRS

Miss. Code Ann. § 25-13-28 (1972, as amended) provides that regular interest as determined by the PERS Board of Trustees shall be credited to employee’s account. Interest was authorized to be credited to member accounts effective July 1, 1991.

27 Miss. Admin. Code Pt. 210, R. 103 Calculation of Interest Rate

Effective July 1, 2016, the interest rate shall be calculated based on the money market rate as published by the Wall Street Journal on December 31 of each preceding year with a minimum rate of one percent and a maximum rate of five percent.

27 Miss. Admin. Code Pt. 210, R. 104 Current Rate of Interest

The phrase “regular interest” as used in this Regulation shall mean the interest credited to the accumulated contributions of the member’s account in the annuity savings account of any system covered by this Regulation during the period his or her membership therein.

As applied to such interest for any period beginning July 1, 1953, through June 30, 1955, “regular interest” shall mean interest credited at the rate of two per cent (2%) per annum.

As applied to such interest for any period beginning July 1, 1955, through June 30, 1982, “regular interest” shall mean interest credited at the rate of one percent (1%) per annum.

As applied to such interest for any period beginning July 1, 1982, through June 30, 1995, “regular interest” shall mean interest credited at the rate of five per cent (5%) per annum.

As applied to such interest for any period beginning July 1, 1995, through June 30, 1996,

“regular interest” shall mean interest credited at the rate of two and one-half percent (2 ½ %) per annum.

As applied to such interest for any period beginning July 1, 1996, through June 30, 2016, “regular interest” shall mean interest credited at the rate of three and one-half percent (3 ½ %) per annum.

As applied to such interest for any period beginning July 1, 2016, and thereafter, until changed by the Board, “regular interest” shall mean interest credited at the rate of one percent (1%) per annum.

(History: Adopted effective October 1, 2009; amended July 1, 2010; amended effective August 1, 2016, amended effective July 1, 2017)

Chapter 63 Temporary Benefit

27 Miss. Admin. Code Pt. 210, R. 100 Purpose

This regulation sets forth the terms and conditions under which a temporary benefit in the form of a partial distribution of a member’s accumulated contributions under Miss. Code Ann. § 25-11-117(4) (1972, as amended) can be paid to an inactive member of the Public Employees’ Retirement System of Mississippi (PERS) and the Supplemental Legislative Retirement Plan (SLRP) to provide such member with a temporary source of income while awaiting a final determination of eligibility for disability retirement benefits.

27 Miss. Admin. Code Pt. 210, R. 101 Authority

Section 25-11-117(4) allows the Board of Trustees to establish rules and regulations for carrying out the provisions authorizing the payment of a temporary benefit to an eligible inactive member of PERS and/or SLRP who is awaiting a final determination on an application for disability retirement benefits.

27 Miss. Admin. Code Pt. 210, R. 102 Eligibility Requirements for the Temporary Benefit

To qualify for a temporary benefit as provided in § 25-11-117(4), a PERS and/or SLRP member who has applied for disability retirement benefits must meet all of the following requirements:

1. Must have no more than a total of 14 days of unused personal (vacation) and/or major medical (sick) leave from the last employer; 2. Must have terminated from employment; 3. Must not be eligible for service retirement benefits; 4. Must have a contribution balance in his or her accumulation account; and 5. Must have completed the required disability retirement application forms as defined in Board Regulation 35, Section 101.2.

27 Miss. Admin. Code Pt. 210, R. 103 Application for the Temporary Benefit

An eligible inactive member must make application for the temporary benefit on a form prescribed by the Board.

27 Miss. Admin. Code Pt. 210, R. 104 Amount of the Temporary Benefit

The temporary benefit in the form of a partial distribution of an eligible member’s accumulated contribution account will be paid in equal monthly installments for a limited time. The total temporary benefit payable will equal no more than 50 percent of the member’s accumulated contributions and will be paid in equal monthly installments over a period of not more than 18 months. The monthly payment shall be no more than one-half of the estimated monthly disability

retirement allowance to which the member would become entitled under the applicable optional benefit payment plan selected by the member if approved for disability retirement benefits.

27 Miss. Admin. Code Pt. 210, R. 105 Payment of the Temporary Benefit

1. The temporary benefit will cease at the end of the 18-month time frame or at the time a final disability determination is made, whichever occurs first. 2. If the Medical Board approves the claim for disability retirement benefits, the temporary benefit will end and disability retirement benefits will commence. 3. If the claim for disability retirement benefits is denied by the Medical Board and appealed to the Disability Appeals Committee, the temporary benefit will continue for the 18-month time frame or until a final decision by the Board of Trustees is rendered, whichever occurs first. 4. In no case will the temporary benefit continue to be paid after a final decision is made by order of the Board of Trustees. 5. Payment of the temporary benefit is dependent upon active pursuit of a claim for disability retirement benefits. Inactivity on a claim for a period of 90 days from the effective date of disability retirement established upon receipt of the member’s completed Form DSBL 1, Pre-Application for Disability Retirement Benefits, will void the application and suspend the temporary benefit. 6. If death occurs during the disability application process after a temporary benefit has been initiated but prior to the final determination of disability, the temporary benefit will cease and future benefits, if any, will be paid under the survivor benefit provisions of the law. a. If monthly survivor benefits are payable under the law, the survivor benefit will be actuarially adjusted to take into account the partial distribution of contributions paid under the temporary benefit provisions. b. In the event the member dies prior to a final determination, the disability application is void and no disability retirement benefits can be paid pursuant to such application. 7. No deductions for life and/or health insurance will be made from the temporary benefit.

27 Miss. Admin. Code Pt. 210, R. 106 Impact of Temporary Benefits on Member’s Service Credit

Receipt of temporary benefits will not affect the member’s service credit. However, the member’s account will be marked as an account from which temporary benefits are or have been paid until a recovery has begun through an actuarially reduced monthly benefit payment as noted in Section 108 below.

27 Miss. Admin. Code Pt. 210, R. 107 Taxation of the Temporary Benefits

1. The temporary benefit is not a disability retirement benefit. The temporary benefit is a partial distribution of the member’s accumulated contributions and is subject to mandatory federal income tax withholding. 2. The temporary benefit will have federal income taxes withheld in accordance with Internal Revenue Service requirements.

2. The temporary benefit may also be subject to a tax penalty if the member is younger than age 55 (age 50 for a qualified public safety employee) at the time of the distribution. 4. An IRS Form 1099-R will be issued at least annually for the temporary benefits paid during the applicable calendar year.

27 Miss. Admin. Code Pt. 210, R. 108 Recovery of the Temporary Benefits

All amounts paid under the temporary benefit provisions will be recovered by PERS. No interest will be charged on the recovery of the temporary benefit when recovered through actuarially reduced disability, service, or survivor retirement benefits. 1. Member Approved for Disability Retirement Benefits A member approved for disability retirement benefits who previously elected to receive a temporary benefit shall have the disability retirement allowance actuarially reduced to ensure full recovery of any temporary benefit paid. 2. Member Denied Disability Retirement Benefits Who Later Elects to Receive Refund of Remaining Accumulated Contributions A member who is not approved for disability retirement benefits and who had previously elected to receive a temporary benefit may apply for and receive a refund of the remaining contributions in his or her account. Where a member applies for and receives a refund of his or her accumulated contributions and interest, the member waives and relinquishes all accrued rights to future benefits from PERS or SLRP, as applicable. Any member who subsequently returns to covered employment and who wishes to repay the refund will be responsible for the payment of interest on the full balance of the member’s account previously distributed including the portion distributed under the temporary benefit provision.

3. Member Denied Disability Retirement Benefits Who Later Applies for Service Retirement Benefits A member who has previously elected to receive a temporary benefit and who is not approved for disability retirement benefits may elect to leave the remaining unused contributions in his or her account in anticipation of returning to covered employment or later becoming eligible to apply for service retirement benefits. The member shall have his or her benefit reduced actuarially to recover the total temporary benefit previously paid over his or her life expectancy. 4. Member Denied Disability Retirement Benefits and Later Dies Before Retirement The spouse and/or dependent children of a member who has previously elected to receive a temporary benefit and who is not approved for disability retirement benefits who dies prior to retirement and having left his or her remaining contributions with PERS or SLRP, as applicable, may be entitled to statutory benefits provided that the deceased member was vested at the time of death. If a deceased member’s spouse or dependent children are eligible for survivor benefits, a reduced actuarial equivalent of the normal benefit will be

paid to the spouse and/or dependent children to recover the total temporary benefit previously paid.

(History: Adopted effective October 1, 2009; amended effective December 1, 2012)

Chapter 64 Purchase of Service Credit in the Public Employees’ Retirement System at Actuarial Cost

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose The purpose of this regulation is to specify the terms, conditions, and cost of purchasing service credit as allowed by law at actuarial cost as provided in Miss. Code Ann. § 25-11- 109 (1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Eligibility to purchase allowable service credit For those who became a member of the Public Employees’ Retirement System (PERS) before March 1, 2026, a vested member, whether active or inactive, may purchase eligible service at actuarial cost, provided the member has entered or reentered state service after completion of the service to be purchased. A member is vested if he or she has the required number of years of membership service to receive a service retirement allowance at age 60. For those who became a member of PERS on or after March 1, 2026, no service credit shall be awarded for the purchase of service credit under this regulation.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Purchasing eligible out-of-state service 1. Public service that qualifies as eligible out-of-state service includes service as a public employee in (i) another state, (ii) political subdivision of another state, (iii) public education system of another state, (iv) governmental instrumentality of another state, or (v) service rendered as a teacher in American overseas dependent schools conducted by the Armed Forces of the United States for children of citizens of the United States residing in areas outside the continental United States. 2. The service in an eligible governmental entity must satisfy the requirements for membership in PERS as outlined in PERS Board Regulation 36, Eligibility for Membership in PERS, except for the requirement that the employment be in the state of Mississippi or a public education system of the state or a governmental instrumentality of the state. 3. A member may not establish out-of-state service for any period of time that the member has previously been awarded service credit under PERS. 4. Service credit for out-of-state service is awarded in the same manner that it would have been awarded if the service had been covered under PERS. 5. To be eligible to purchase out-of-state service, the member must have entered or reentered state service after completion of the out-of-state service to be purchased. Out-of-state service performed after the member withdraws from covered public service or retires does not qualify for purchase under this section. In no case shall out- of-state service be eligible for purchase for any period in which the member was drawing a retirement allowance.

6. To be eligible to purchase out-of-state service, the member must furnish the following from the out-of-state public employer and out-of-state public retirement system: (i) documentation from the employer showing the position held, the employment classification of the position held, and the dates of service performed and (ii) certification from the out-of-state public retirement system that the member is not receiving nor will be entitled to receive benefits from the out-of-state public retirement system on the basis of the out-of-state service being certified to PERS. 7. The member must have received a full refund of all contributions, if any, to his or her credit in the out-of-state public retirement system to be eligible to establish out-of- state service, including distributions from an optional retirement plan, for which the member is seeking to purchase service. 8. A maximum of five years of creditable service may be purchased based on out-of- state public employment.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Purchasing eligible professional leave 1. An eligible employee who has received professional leave without compensation for professional purposes directly related to his or her employment in state service may be eligible to purchase such service at actuarial cost. 2. The professional leave must be or have been performed with a public institution or public agency of this state, or another state or federal agency. 3. A member may not establish credit for professional leave for any period of time that the member has previously been awarded service credit under PERS. 4. Service credit for professional leave is awarded in the same manner that it would have been awarded if the service had been covered under PERS. 5. The employee must provide documentation from the employer showing (i) the reason the employer had for granting the leave and (ii) that a determination has been made by the employer that the professional leave will benefit the employee and employer. 6. Professional leave granted after the member withdraws from covered public service or retires does not qualify for purchase under this section. In no case shall professional leave be eligible for purchase for any period in which the member was drawing a retirement allowance. 7. To be eligible for purchase, (i) the professional leave may not have exceeded two years within any 10-year period of state service and (ii) immediately following the termination of the professional leave, the employee must have served the employer on a full-time basis for a period of time equivalent to the professional leave period granted.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Purchasing eligible non-covered service 1. An eligible employee may purchase certain non-covered service with a public entity of the state. Service that may be purchased includes: (i) any service rendered as an employee of any political subdivision of the state, or any instrumentality thereof, that does not participate in PERS; (ii) any service rendered as an employee of any political subdivision of the state, or any instrumentality thereof, that participates in PERS but did not elect retroactive coverage; or (iii) any service rendered as an employee of any political subdivision of the state, or any instrumentality thereof, for which coverage of the employee’s position was or is excluded.

2. Service with an eligible governmental entity must satisfy the requirements for membership in PERS as outlined in PERS Board Regulation 36. 3. A member may not establish credit for non-covered service for any period of time that the member has previously been awarded service credit under PERS. 4. Service credit for non-covered service is awarded in the same manner that it would have been awarded if the service had been covered under PERS. 5. To be eligible to purchase non-covered service, the member must have entered or reentered state service after completion of the non-covered service to be purchased. Non-covered service performed after the member withdraws from covered public service or retires does not qualify for purchase under this section. In no case shall non-covered service be eligible for purchase for any period in which the member was drawing a retirement allowance. 6. To establish eligibility to purchase non-covered service, the employee must: a. Provide documentation to demonstrate that the employment would have been eligible for coverage under PERS had the position been covered at the time by a joinder agreement and b. Provide documentation of the employment including the dates of service, the salary or wages earned, and the number of hours worked per week or per month. 7. A maximum of 10 years of creditable service may be purchased based on non- covered public service in the state, except in the case of retroactive coverage where either a joinder agreement or retirement law [Reference Miss. Code Ann. § 25-11- 103(z) (1972, as amended)] allows for the purchase of more than 10 years. Retroactive coverage is addressed in PERS Regulation 32.

27 Miss. Admin. Code Pt. 210, R. 105 Rule 105

Calculation of the cost of purchasing eligible service 1. The member shall pay to PERS on the date he or she is eligible for credit for such service or at any time thereafter prior to the date of retirement the actuarial cost as determined by the actuary for each year of creditable service. 2. The cost is a “point in time” determination using an actuarial calculation based on the member’s service credit before the purchase, the member’s service after the purchase, the member’s age, and the greater of the member’s current annual salary or the average of the highest four years of compensation. a. Computation of cost for active members i. An active member is an individual who is currently employed in covered employment. ii. PERS will determine the member’s average compensation and current annual salary based on his or her membership account. iii. Using the actuarial factors for active members as provided by the actuary, PERS will determine the actuarial factor based on the member’s current age and years of service and the actuarial factor based on the member’s current age and years of service including the service eligible for purchase. iv. The difference between the two actuarial factors will be multiplied by the higher of the active member’s average compensation or current annual salary as determined by PERS. The result is the total cost for the service. b. Computation of cost for inactive members

i. An inactive member is an individual who is no longer employed in covered employment and who has not retired or received a refund of his or her contributions. ii. PERS will determine the member’s average compensation from his or her membership account. iii. Using the actuarial factors for inactive members as provided by the actuary, PERS will determine the actuarial factor based on the member’s current age and years of service and the actuarial factor based on the member’s current age and years of service including the service eligible for purchase. iv. The difference between the two actuarial factors will be multiplied by the inactive member’s average compensation. The result is the total cost for the service. 3. The cost schedule will reflect the total cost of all eligible service, as well as the cost of the individual increments of service credit. The member may purchase all or any part of the service prior to his or her effective retirement date with PERS. All purchases must be in not less than monthly increments. 4. If a member does not purchase the service before the date stated on the cost schedule, the cost of any remaining eligible service not purchased by the stated date will be recalculated. The cost will change as the member’s age and service credited to the member’s account change.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Subject to IRC Section 415 Limitations Payments for the purchase of service credit at actuarial cost shall be paid in a manner consistent with any applicable limitations of 26 United States Code, § 415. For any member of PERS who became a member on or after July 1, 1999, Code § 415(c)(1) limits employee after-tax contributions to the lesser of (i) an applicable annual dollar limit or (ii) 100 percent of compensation. A member may be precluded from purchasing some or all years of service credit at actuarial cost if payments exceed applicable annual limitations on after-tax contributions.

27 Miss. Admin. Code Pt. 210, R. 107 Rule 107

Expiration of time to purchase eligible service The purchase of all eligible service at actuarial cost must be completed by the member prior to the member’s death or retirement.

27 Miss. Admin. Code Pt. 210, R. 108 Rule 108

Funds used to purchase service Service credit at actuarial cost can be purchased using after-tax funds received directly from the member. Alternatively, such credit may be purchased using tax-deferred (pre- tax) money from certain retirement plans as allowed by the Internal Revenue Code (IRC). 1. Direct payment of funds by the member PERS will accept funds remitted directly by the member for purchase of service at actuarial cost. These payments are not tax-deductible at the time of the purchase, but are considered after-tax contributions. These funds will be used in the calculation of the tax exclusion applied to the benefit at retirement. Treatment of the funds as after- tax contributions applies even if the source of the funds is from a retirement plan from which the member could have made a direct rollover or transfer of the funds. 2. Direct transfer or rollover of funds to purchase service

PERS will accept qualifying tax-deferred direct trustee-to-trustee transfers or rollovers from the trustee/custodian of a 401(a) or 401(k) qualified plan, IRC Section 457 deferred compensation plan, qualified 403(a) annuity, IRC Section 403(b) annuity, or distributions from an Individual Retirement Account (IRA) for the purchase of service. These funds will be treated as tax-deferred funds and will be taxed when distributed to the member.

(History: Adopted effective February 1, 2011; amended effective August 1, 2012, amended effective July 1, 2017, amended effective March 1, 2026)

Chapter 65 Earned Compensation for the Public Employees’ Retirement System of Mississippi

27 Miss. Admin. Code Pt. 210, R. 100 Rule 100

Purpose This regulation further defines the term “earned compensation” for purposes of reporting compensation to the Public Employees’ Retirement System of Mississippi (PERS).

27 Miss. Admin. Code Pt. 210, R. 101 Rule 101

Statutory definition Except as otherwise provided by law, the term “earned compensation” means the total amount earned during a fiscal year by an employee not to exceed the employee compensation limit set pursuant to § 401(a)(17) of the Internal Revenue Code for the calendar year in which the fiscal year begins and proportionately for less than one year of service. The intent of this definition is to limit earned compensation to the regular periodic compensation paid to an employee, except as otherwise specifically provided by law.

27 Miss. Admin. Code Pt. 210, R. 102 Rule 102

Employment with more than one covered employer Earned compensation shall include wages from a second position if the second position is independently covered under PERS or if the second position is less than half time but would otherwise be covered independently if the employee worked the requisite number of hours as required in PERS Board Regulation 36, Eligibility for Membership in the Public Employees’ Retirement System of Mississippi (PERS). Conversely, where a position is expressly excluded by law or where the position is expressly excluded by joinder agreement, wages from the second position should not be reported to PERS. In no case is compensation paid to an individual as an independent contractor reportable to PERS as earned compensation.

27 Miss. Admin. Code Pt. 210, R. 103 Rule 103

Exclusions from the term “earned compensation” The term “earned compensation” does not include the following: 1. amounts paid by an employer for health or life insurance premiums or the value of such benefits; 2. litigation fees; 3. bond fees; 4. other similar nonrecurring payments; 5. amounts in excess of the lump sum payment for unused leave upon termination from employment as authorized under state law; 6. payments not authorized by law, including but not limited to:

a. the value of personal use of automobile or automobile allowance; b. the value of personal use of employer provided cell phones or reimbursement for business use of a personal cell phone; c. the value of personal use of employer-provided Internet or reimbursement for business use of personal/home Internet; d. monetary awards, honorariums, or bonuses; e. amounts paid in excess of statutory limitations set on salaries; and f. retroactive pay increases, other than bona fide administrative errors; 7. any form of severance or termination pay, other than lump sum payments for leave upon termination from employment as authorized under state law; 8. any additional compensation received in anticipation of retirement, such as early retirement incentives, reduction in force programs, or retroactive payments; 9. commuting and reimbursed travel expenses, whether taxable or not; 10. cash remuneration, if any, selected by an employee in lieu of medical or other insurance benefits within the salary averaging period before retirement; and 11. other employer paid fringe benefits, including, but not limited to: a. educational assistance; b. dependent care assistance; c. transportation benefits; d. nonpaid major medical (sick) and personal (vacation) leave; and e. employer contributions for Social Security and retirement. 12. any form of payment to a state employee outside of budgetary funds appropriated by the legislature.

27 Miss. Admin. Code Pt. 210, R. 104 Rule 104

Reporting of maintenance 1. Maintenance provided to employees before July 1, 2013 a. The definition of “earned compensation” includes the value of either cash or non- cash maintenance furnished by the employer before July 1, 2013, in accordance with the maximum reportable allowances set in PERS Board Regulation 33, Value of Maintenance. b. From and after July 1, 2013, the value of maintenance furnished to an employee shall be reported as earned compensation as that term is defined in Miss. Code Ann. § 25-11-103(k) (1972, as amended) only if the employee was receiving maintenance and having maintenance reported to PERS as of June 30, 2013. c. Where maintenance was not properly reported when furnished by the employer, the employee and employer shall have underreported the earnings of the affected employee and service credit for the underreported period(s) shall not be available until proper contributions and interest, if applicable, on the value of maintenance are made to PERS.

2. Maintenance provided to employees on or after July 1, 2013 Except as otherwise provided in § 105.1.b of this regulation, maintenance provided to employees on or after July 1, 2013, is excluded from earned compensation as that term is defined in § 25-11-103(k) and as further clarified in this regulation.

27 Miss. Admin. Code Pt. 210, R. 105 Reportable income for constables

In the case of constables, the net earnings from their office after deduction of expenses shall apply, except that in no case shall earned compensation be less than the total direct payments made by the state or governmental subdivisions to the official.

27 Miss. Admin. Code Pt. 210, R. 106 Rule 106

Reportable income for chancery and circuit clerks In the case of chancery or circuit clerks, the net earnings from their office after deduction of expenses shall apply as expressed in Miss. Code Ann. § 25-11-123(f)(4) (1972, as amended).

27 Miss. Admin. Code Pt. 210, R. 107 Rule 107

Reportable income for coroners (county medical examiners or county medical examiner investigators) In the case of elected or appointed coroners, all compensation as expressed in Miss. Code Ann. §§ 41-61-59, 41-61-69, and 41-61-75 shall apply. In the case of deputy coroners, all compensation as expressed in Miss. Code Ann. §§ 41- 61-59, 41-61-69, and 41-61-75, shall apply, provided that in addition to the monthly salary as defined in Miss. Code Ann. § 41-61-59, the deputy performs the qualifying service necessary to receive fees as expressed in Miss. Code Ann. §§ 41-61-69 and 41- 61-75.

27 Miss. Admin. Code Pt. 210, R. 108 Rule 108

Reportable income for members of the State Legislature In the case of members of the State Legislature, all remuneration or amounts paid, except mileage allowance, shall apply.

27 Miss. Admin. Code Pt. 210, R. 109 Rule 109

Reportable income for local elected officials In the case of local elected officials, all compensation must be set in good faith and may not be arbitrary and unreasonable when considered with the resources of the employer and the duties of the office.

27 Miss. Admin. Code Pt. 210, R. 110 Rule 110

Performance-based incentive payments 1. Performance-based incentive payments paid to employees before July 1, 2013 Performance-based incentive payments that were paid to employees before July 1, 2013, under a plan or policy adopted by the employer that continued from year to year and that were (i) contracted for by the employer and the employee before the date when services were performed by the employee, (ii) determined in accordance with objective standards of measurement, and (iii) earned by personal services performed by the employee were included in earned compensation as that term was defined in § 25-11-103(k) before July 1, 2013.

2. Performance-based incentive payments paid to employees on or after July 1,

Performance-based incentive payments paid to employees on or after July 1, 2013, are excluded from earned compensation as that term is defined in § 25-11-103(k) and as further clarified in this regulation.

27 Miss. Admin. Code Pt. 210, R. 111 Compensatory leave payments

Compensatory leave paid in a lump sum is included in earned compensation; however, any such payment must be allocated by the employer to the period in which the compensatory leave was actually earned.

(History of PERS Board Regulation 65: Adopted effective August 1, 2011; amended effective April 1, 2012; amended effective August 1, 2013; amended effective August 1, 2017, amended effective January 1, 2026)

Part 220 Amended Mississippi Deferred Compensation Plan and Trust Document

27 Miss. Admin. Code Pt. 220 Amended Mississippi Deferred Compensation Plan and Trust Document

1 Title 27: Personnel Part 220: PERS, Deferred Compensation Plan & Trust

MISSISSIPPI GOVERNMENT EMPLOYEES' DEFERRED COMPENSATION PLAN AND TRUST FOR EMPLOYEES OF THE STATE OF MISSISSIPPI AND ITS POLITICAL SUBDIVISIONS SPONSORED BY THE STATE OF MISSISSIPPI ADMINISTERED BY THE PUBLIC EMPLOYEES’ RETIREMENT SYSTEM OF MISSISSIPPI

Effective July 1, 2026

TABLE OF CONTENTS

Page 2 ARTICLE I DEFINITIONS ................................................................................................8 1.1. Age 50 Plus Catch-Up Contribution .................................................................8 1.2. Annual Deferral ................................................................................................8 1.3. Beneficiary .......................................................................................................8 1.4. Board ................................................................................................................8 1.5. Code ..................................................................................................................8 1.6. Compensation ...................................................................................................8 1.7. Deferred Compensation ....................................................................................9 1.8. Eligible Individual ............................................................................................9 1.9. Employee ..........................................................................................................9 1.10. Employer ..........................................................................................................9 1.11. Employer Contributions ...................................................................................9 1.12. Includible Compensation ..................................................................................9 1.13. Independent Contractor ..................................................................................10 1.14. Investment Options .........................................................................................10 1.15. Joinder Agreement .........................................................................................10 1.16. Normal Retirement Age .................................................................................10 1.17. Participant .......................................................................................................10 1.18. Participant Account ........................................................................................10 1.19. Participant Deferral Account ..........................................................................10 1.20. Participant 457 Rollover Account ..................................................................10 1.21. Participant Non-457 Rollover Account ..........................................................10 1.22. Participation Roth Account...........................................................11 1.23. Participation Agreement .................................................................................11 1.24. Plan .................................................................................................................11 1.25. Plan Year ........................................................................................................11 1.26. Provider ..........................................................................................................11 1.27. Regulations .....................................................................................................11 1.28. Rollover Contribution .....................................................................................11 1.29. Roth Contribution.....................................................................11 1.30. Self-Directed Brokerage Account....................................................11 1.31. Severance from Employment .........................................................................12 1.32. Special Section 457 Retirement Catch-up Contributions ...............................12 1.33. Third Party Administrator ..............................................................................12 1.34. Trust ................................................................................................................12 1.35. Trust Fund ......................................................................................................12 1.36. Unforeseeable Emergency ..............................................................................12

ARTICLE II ELIGIBILITY ...............................................................................................13 2.1. Conditions of Eligibility to Participate ...........................................................13 2.2. Determination of Eligibility and Effective Date of Participation ...................13 2.3. Termination of Eligibility ...............................................................................13 2.4. Participation Agreements ...............................................................................13

ARTICLE III EMPLOYER PARTICIPATION ................................................................15 3.1. State and State Entities ...................................................................................15

3 3.2. Adoption by Political Subdivision ..................................................................15 3.3. Plan Termination by a Political Subdivision ..................................................15

ARTICLE IV CONTRIBUTIONS AND ALLOCATIONS ..............................................17 4.1. Basic Annual Deferrals ..................................................................................17 4.2. Employer Contributions ..................................................................................17 4.3. Special 457 Retirement Catch-up Contributions ............................................17 4.4. Age 50 Plus Catch-up Contributions ..............................................................18 4.5. Maximum Amount of Catch-up Contributions ...............................................19 4.6. Excess Deferrals Coordination of Limits .......................................................19 4.7. Minimum Deferral ..........................................................................................20 4.8. Roth Contributions 20 4.9. Effect of Leave of Absence on Contributions ................................................20 4.10. Deferrals after Severance from Employment, including Sick, Vacation and Back Pay under an Eligible Plan ....................................................................21 4.11. Voluntary Auto-Escalation of Contributions......................................21

ARTICLE V ACCOUNTS AND REPORTS ....................................................................22 5.1. Participant Account ........................................................................................22 5.2. Statement of Account to Participants .............................................................22 5.3. Valuation ........................................................................................................22 5.4. Deposits ..........................................................................................................22 5.5. Records and Reports .......................................................................................22

ARTICLE VI INVESTMENT OF CONTRIBUTIONS ....................................................23 6.1. Investment Options and Group Trusts ............................................................23 6.2. Direction by Participant ..................................................................................23 6.3. Remittance of Deferrals ..................................................................................24 6.4. Investment Default .........................................................................................24 6.5. Conflicts .........................................................................................................24 6.6. Excessive Trading ..........................................................................................24 6.7. Discontinuance of Investment Options ..........................................................24

ARTICLE VII BENEFITS ....................................................................................................25 7.1. When Benefits are Payable .............................................................................25 7.2. Benefit Payments ............................................................................................25 7.3. Application for Benefits .................................................................................26 7.4. Payment Options ............................................................................................26 7.5. Special Tax Exclusion for Qualified Insurance Deductions ..........................26 7.6. Minimum Distribution Rules ..........................................................................27 7.7. Payments to Beneficiary .................................................................................28 7.8. Participant Deaths after December 31, 2021 ..................................................30 7.9. Distribution for Incompetent or Minor Beneficiary .......................................32 7.10. Location of Participant or Beneficiary Unknown ..........................................32 7.11. Unforeseeable Emergency Withdrawals ........................................................32 7.12. Voluntary In-service Distribution ..................................................................34

4 7.13. Voluntary In-service Small Account Distribution ..........................................34 7.14. Qualified Birth or Adoption Distributions .....................................................34 7.15. Coronavirus-Related Distributions .................................................................34 7.16. Disaster Relief ................................................................................................35 ARTICLE VIII PLAN TO PLAN TRANSFERS ..................................................................36 8.1. Transfers from Other Code Section 457(b) Plans ..........................................36 8.2. Transfers to Other Code Section 457(b) Plans Upon Severance from Employment ...................................................................................................36 ARTICLE IX ROLLOVERS TO AND FROM THE PLAN ............................................38 9.1. Rollovers to this Plan .....................................................................................38 9.2. Rollovers from this Plan .................................................................................39 9.3. Purchasing Service Credits Under a State or Local Retirement System ........39 ARTICLE X ADMINISTRATION ....................................................................................41 10.1. Powers and Responsibilities of the Board ......................................................41 10.2. Reliance on Information from Employer .......................................................42 10.3. Payment of Expenses ......................................................................................42 ARTICLE XI TRUST ...........................................................................................................43 11.1. Trust Status .....................................................................................................43 11.2. Trust Fund ......................................................................................................43 11.3. Trustee ............................................................................................................43 ARTICLE XII NONASSIGNABILITY/ANTI-ALIENATION .........................................44 12.1. Nonassignment ...............................................................................................44 ARTICLE XIII MILITARY SERVICE ................................................................................45 13.1. General USERRA Compliance ......................................................................45 13.2. Additional Deferrals .......................................................................................45 13.3. Death in Military Service ...............................................................................45 13.4. Differential Wage ...........................................................................................45 13.5. Possible Distributions .....................................................................................45 ARTICLE XIV NO LOANS ...................................................................................................47 ARTICLE XV AMENDMENT .............................................................................................48 ARTICLE XVI PLAN TERMINATION AS TO ALL EMPLOYERS ..............................49 ARTICLE XVII MISCELLANEOUS .....................................................................................50 17.1. Compliance with Code Section 457(b) ..........................................................50 17.2. Participant Rights ...........................................................................................50 17.3. Pre-1979 Accounts .........................................................................................50 17.4. Gender and Number .......................................................................................50 17.5. [RESERVED] .................................................................................................51 17.6. Receipt and Release for Payments .................................................................51

5 17.7. Delay of Benefit Payments .............................................................................51 17.8. Payments to Minor Beneficiaries ...................................................................51 17.9. Payments to Incompetents ..............................................................................51 17.10. Binding Contract ............................................................................................51 17.11. Disputes ..........................................................................................................52 17.12. Assumption of Risk ........................................................................................52 17.13. Construction of Plan .......................................................................................52

6 INTRODUCTION Deferred Compensation Plan and Trust for Public Employees of the State and Its Political Subdivisions as Amended Whereas, pursuant to the H.B. 530, Chapter 399, Laws of 1973, the Government Employees’ Deferred Compensation Plan Act was enacted by the Legislature; Whereas, pursuant to H.B. 1279, Chapter 549, Laws of 1974, administration of the Mississippi Government Employees’ Deferred Compensation Plan was transferred to the Board of Trustees of the Public Employees' Retirement System; Whereas, pursuant to Title 25, Chapter 14 of the Mississippi Code Annotated, and Section 457 of the Internal Revenue Code of 1986, as amended, the plan document was adopted and subsequently amended and restated to comply with the Code; Whereas, there have been certain changes in the governing Mississippi statutes, as well as additional federal law changes and guidance, particularly issuance of final and proposed Treasury regulations and model language; Whereas, effective March 1, 2007, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective August 1, 2011, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective July 1, 2012, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective October 1, 2014, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective October 1, 2015, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective August 1, 2016, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Pland and Trust. Whereas, effective April 1, 2017, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust.

7 Whereas, effective January 1, 2021, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees' Deferred Compensation Plan and Trust. Whereas, effective April 1, 2022, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective July 1, 2023, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Whereas, effective December 1, 2023, the Board on behalf of the State of Mississippi did amend and completely restate the Mississippi Government Employees’ Deferred Compensation Plan and Trust. Therefore, effective July 1, 2026, the Board on behalf of the State of Mississippi hereby amends and completely restates the Mississippi Government Employees’ Deferred Compensation Plan and Trust. The Plan consists of the provisions set forth in this document as amended and restated.

The Plan is established pursuant to applicable state law and is intended to comply with the provisions of Section 457(b) of the Internal Revenue Code of 1986, as amended, regulations there under and applicable law. The Plan is effective with respect to each Eligible Individual on the date the Plan is effective or on the date the Eligible Individual becomes a Participant by executing a Participation Agreement, whichever is later. The plan document is effective July 1, 2026, except as otherwise noted, as approved by the Board of Trustees, and supersedes all previous plan documents.

8 ARTICLE I DEFINITIONS As used in this Plan, the following words and phrases shall have the meanings set forth herein unless a different meaning is clearly required by the context. 1.1. "Age 50 Plus Catch-Up Contribution" means the catch-up contribution for Participants who attain age 50 by the end of the calendar year, as permitted under Code Section 414(v) pursuant to Section 4.4. 1.2. "Annual Deferral" means the amount of Deferred Compensation, exclusive of any contributions under Sections 4.3 or 4.4, in any year pursuant to Sections 4.1 and 4.2 and deposited with the Board. 1.3. "Beneficiary" means the person, persons, or trust designated by a Participant on a form prescribed by the Board to receive any benefit payable upon the Participant's death, or if none, the Participant's estate. The Participant may designate more than one Beneficiary or primary and secondary Beneficiaries, or may change the designation of a Beneficiary. If two or more, or less than all, designated Beneficiaries survive the Participant, payments shall be made equally to all such Beneficiaries, unless otherwise provided on the form designating such beneficiary. Elections made by a Participant in his beneficiary designation form shall be binding on any such Beneficiary or Beneficiaries. A Beneficiary may, after the death of the member, designate his own Beneficiary. If none are designated by the Beneficiary, then his estate will be deemed the Beneficiary. Any beneficiary designation form must be received by the Third Party Administrator prior to the Participant's or Beneficiary's death. 1.4. "Board" means the Board of Trustees of the Public Employees' Retirement System of Mississippi, who shall hold assets in trust or custodial accounts or annuity contracts and administer such assets under the terms and provisions of the Plan. 1.5. "Code" means the Internal Revenue Code of 1986, as now in effect or as hereafter amended or recodified. All citations to sections of the Code are to such sections as they may from time to time be amended or renumbered. 1.6. "Compensation" means for an Employee all cash compensation for services to the Employer, including salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in the Employee's gross income for the calendar year, plus amounts that would be cash compensation for services to the Employer includible in the Employee's gross income for the calendar year but for a compensation reduction election under Code Sections 125, 132(f), 401(k), 403(b) or 457(b) (including an election to defer compensation under Article IV). For purposes of an Independent Contractor, "Compensation" shall mean all amounts payable to a Participant from the Employer as remuneration for services rendered which would be includible in income for federal tax purposes, if not deferred under this Plan, subject to the provisions of the current Code. Compensation that would otherwise be paid for a payroll period that begins before Severance from Employment is treated as an amount that would otherwise be paid or made available before an Employee has a Severance from Employment.

9 Compensation also includes payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code Section 414(u)(1)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service. 1.7. "Deferred Compensation" means the amount of Compensation not yet earned, as designated in the Participation Agreement which is made a part hereof, which the Participant and the Employer mutually agree shall be deferred in accordance with the provisions of this Plan, subject to the limitations as described in this plan document. For purposes of the Plan, Deferred Compensation shall include any Roth Contributions and Employer Contributions made hereunder. 1.8. "Eligible Individual" means any individual to include those appointed, elected, or under contract, who performs services for the Employer as an Employee or Independent Contractor for which Compensation is paid, and who meets the criteria set forth in Section 2.1. Individuals who do not perform services for the Employer may not defer Compensation under the Plan. 1.9. "Employee" means any common law employee who is employed by the Employer and who performs services for the Employer for which Compensation is payable. 1.10. "Employer" means the state or, upon execution of a Joinder Agreement, any political subdivision of the state, or any agency or instrumentality of the state, which satisfies the definition of Code Section 457(e)(1)(A) (together with any other entity required to be aggregated with such governmental employer under Code Sections 414(b), (c), (m) or (o)). 1.11. "Employer Contributions" means amounts which may be contributed to the Plan for actively contributing Participants who are Employees of the Employer pursuant to the consent of the Board and/or statutory authority. 1.12. "Includible Compensation" means an Employee's actual wages in box 1 of Internal Revenue Service Form W-2, Wage and Tax Statement, for the Employer, salaries, and fees for professional services and other amounts payable for personal services actually rendered to the Employer to the extent that the amounts are includible in gross income, but increased (up to the dollar maximum) by any Compensation reduction election under Section 125, 132(f), 401(k), 403(b) or 457(b) of the Code. Pursuant to Section 1.457-4(d)(1) of the Income Tax Regulations, Includible Compensation will include any payments made to a Participant who has had a Severance from Employment, provided that the Includible Compensation is paid by the later of 2½ months after the Participant's Severance from Employment or the end of the calendar year that contains the date of such Participant's Severance from Employment. In addition, pursuant to Section 1.457-4(d)(1) of the Income Tax Regulations, Includible Compensation will include payments made to an individual who does not currently perform services for the Employer by reason of qualified military service (as defined in Section 414(u)(5) of the Code) to the extent those payments do not exceed the amount the individual would have received if the individual had continued to perform services for the Employer rather than enter qualified military service. Includible Compensation will not include Employee pick-up contributions described in Section

10 414(h)(2) of the Code. In no event may Includible Compensation exceed the maximum limit established under Code Section 401(a)(17) for the applicable calendar year being tested. 1.13. "Independent Contractor" means any person to whom Compensation from the Employer is payable for services rendered pursuant to one or more written or oral contracts, if such person is not a common-law employee. 1.14. "Investment Options" means group or individual annuity contracts or such other investment arrangements or funds issued by or offered through the Provider as selected and monitored by the Board and used to hold assets of the Plan. 1.15. "Joinder Agreement" means the contract between an Employer that is a political subdivision and the Board to permit participation in the Plan. 1.16. "Normal Retirement Age" shall be age 70½, unless prior to that time another Normal Retirement Age is elected in writing by the Participant. In selecting an alternate Normal Retirement Age, a Participant can choose any age, which is (1) not earlier than the earliest age at which the Participant has the right to retire and receive unreduced retirement benefits from the Employer's basic pension plan and (2) no later than the date the Participant attains age 70½. 1.17. "Participant" means any individual who has entered into a Participation Agreement and for whom a Participant Account is maintained under the Plan. A Participant must be an Eligible Individual. 1.18. "Participant Account" means that total of the Participant Deferral Account, the Participant 457 Rollover Account (including any earnings and losses attributable thereon), and the Participant Non-457 Rollover Account (including any earnings and losses attributable thereon) for each Participant, or if applicable, Beneficiary under the Plan. If the Beneficiary is an irrevocable trust, one separate Account may be established for the trust regardless of the number of beneficiaries of the trust, at the Third Party Administrator's discretion, or the Third Party Administrator may establish separate Accounts for each separate beneficiary of the trust. 1.19. "Participant Deferral Account" means that portion of the Participant Account (including any earnings and losses attributable thereon) established and maintained by the Board for each Participant with respect to his of Deferred Compensation to the Plan, including any amounts transferred in accordance with Section 8.1, provided that any Roth Contributions will be maintained and accounted for separately in the Participant Roth Account. 1.20. "Participant 457 Rollover Account" means that portion of the Participant Account (including any earnings and losses attributable thereon) established and maintained by the Board for each Participant with respect to Rollover Contributions received from another Employer's Code Section 457(b) plan in accordance with Section 9.1, provided that any Rollover Contributions from a designated Roth account will be maintained and accounted for separately from other Rollover Contribution amounts. 1.21. "Participant Non-457 Rollover Account" means that portion of the Participant Account (including any earnings and losses attributable thereon) established and maintained by the Board for each Participant with respect to Rollover Contributions rolled over from all rollover eligible

11 plans other than from another employer's Code Section 457(b) plan in accordance with Section 9.1, provided that any Rollover Contributions from a designated Roth account will be maintained and accounted for separately from other Rollover Contribution amounts. 1.22. “Participant Roth Account” means that portion of the Participant Account (including any earnings and losses attributable thereon) established and maintained by the Board for each Participant with respect to his Roth Contributions to the Plan. 1.23. "Participation Agreement" means the applicable form prescribed by the Board completed by an Eligible Individual to participate in the Plan. 1.24. "Plan" means a deferred compensation plan under Code Section 457(b) as adopted by the Board and known as the Mississippi Government Employees’ Deferred Compensation Plan and Trust and this instrument, including all amendments thereto, governing participation and administration thereof. 1.25. "Plan Year" means the Plan's 12-consecutive month accounting year beginning on July 1 of each year, or as otherwise elected by the Board. 1.26. "Provider" means any entity that has been approved by the Board to provide Investment Options(s) under the Plan. 1.27. "Regulations" means the federal income tax Regulations, as promulgated by the Secretary of the Treasury or his delegate, and as amended from time to time. 1.28. "Rollover Contribution" means contributions made by a Participant (or, if applicable, Eligible Individual) pursuant to Article IX of "eligible rollover distributions" in accordance with Code Section 402(c)(4). 1.29. “Roth Contribution” means an after-tax contribution made by a Participant to the Participant’s Deferral Account that satisfies both of the following conditions: (a) The Participant irrevocably designates the contribution as a Roth Contribution (as defined in Code Section 402A(c)(1)) at the time of the deferral election and the contribution is made in lieu of all or a portion of the pre-tax deferrals the Participant is otherwise eligible to make under the Plan; and (b) The Employer treats the contribution as includible in the Participant’s gross income at the time the amount would have been paid to the Participant in cash, had the Participant not elected to defer it. 1.30. “Self-Directed Brokerage Account” means a brokerage window designed to allow participants to select investments outside of the Investment Options offered in the plan. The brokerage window shall be limited to mutual funds. The Board, the Plan, and the State of Mississippi have no express or implied responsibility for the evaluation, selection, or monitoring of the continued offering of mutual funds available in the Self-Directed Brokerage Account. The selected provider for the Self-Directed Brokerage Account must be a properly registered broker- dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Board, the Plan, and the State of Mississippi reserve the right to substitute an alternative Self-Directed Brokerage provider. If a new provider is chosen, reasonable notice will be

12 provided to all affected Participants of such change. Participation is optional for participants, and an additional fee may be charged for this service. 1.31. "Severance from Employment" means the date on which the Participant dies, retires or otherwise has a severance from employment with the Employer as determined by the Board. Except in case of death of the Participant, such severance shall mean the absence of any employment in any capacity (Employee or Independent Contractor) with a covered Employer. In the event that a Participant changes his employment from the State of Mississippi or any member agency or political subdivision, which is covered by this Plan, to another Employer also covered by this Plan, the Participant is not considered to have satisfied the provisions for a distribution in accordance with Section 7.1(a)(i). The benefits conferred and protected hereunder shall be continued in full force and effect, and the transfer of the Employee from one covered Employer to another shall have no adverse effect upon the Participant rights as pursuant to the Plan. An Independent Contractor shall be considered to have a Severance from Employment upon the expiration of all of the contracts under which services are performed for the Employer, if the expiration constitutes a good faith and complete termination of the contractual relationship. An expiration of such contractual relationship shall not be considered to be a good faith and complete termination if: a) the Employer anticipates a renewal of such contractual relationship, b) the Independent Contractor anticipates being engaged as an independent contractor with another Employer, or c) the Independent Contractor becomes an Employee. 1.32. "Special Section 457 Retirement Catch-up Contributions" means the catch-up contribution for a Participant in the three consecutive years prior to the year in which the Participant reaches Normal Retirement Age, as permitted under Code Section 457(b)(3) and pursuant to Section 4.3. 1.33. "Third Party Administrator" means the entity with which the Board has contracted to perform such administrative duties as delegated by the Board. 1.34. "Trust" means the trust established by the Board pursuant to the amendment to the provisions of the Plan effective December 1, 1998. 1.35. "Trust Fund" means the assets of the Trust invested in all Investment Options selected by the Board. 1.36. "Unforeseeable Emergency" means an extraordinary and unforeseeable circumstance arising as a result of events beyond the control of the Participant resulting in a severe financial hardship in accordance with Section 7.11. Other capitalized terms may be used in this plan document to refer to specific forms that have been adopted by the Board or the Third Party Administrator and must be used as described in this plan document.

13 ARTICLE II ELIGIBILITY 2.1. CONDITIONS OF ELIGIBILITY TO PARTICIPATE Any Eligible Individual who performs services for the Employer for which Compensation is paid and who executes a Participation Agreement with the Employer is eligible to participate in the Plan. A Board member who is an Eligible Individual shall be eligible to participate in the Plan, but such a member, as a member of the full Board or as a member of any committee designated by the Board, shall not be entitled to participate in decisions relating to such member's own participation in the Plan. 2.2. DETERMINATION OF ELIGIBILITY AND EFFECTIVE DATE OF PARTICIPATION a. The Board, or its designated person(s), committee or entity, shall determine whether each Employee and, if applicable, Independent Contractor, is an Eligible Individual and has satisfied the eligibility requirements, as stated in Section 2.1, based upon information furnished by the Employer. Such determination shall be conclusive and binding and the criteria for such determination shall be applied uniformly to all Participants. b. An Eligible Individual shall elect to participate and become a Participant by signing a Participation Agreement pursuant to Section 2.4 and filing such agreement with the Third Party Administrator. c. The Participant shall provide investment direction for contributions made to the Investment Options on such forms as may be required by the Board. 2.3. TERMINATION OF ELIGIBILITY In the event a Participant shall go from a classification of an Eligible Individual to a non-Eligible Individual, such non-Eligible Individual shall be considered an inactive Participant. The Participant Account of such inactive Participant shall continue to allocate any attributable earnings based on the investment direction supplied by the Participant. 2.4. PARTICIPATION AGREEMENTS a. In order to participate in the Plan, an Eligible Individual must complete and file a Participation Agreement in a manner and method determined by the Board. The Participation Agreement shall be effective as soon as administratively practicable for any compensation made available to the Participant after the Participation Agreement is filed and shall specify:

14 (i) the amount (expressed either as a dollar amount or as a percentage) of the Eligible Individual's Compensation which the Employer and the Eligible Individual agree to defer, subject to the limitations of Article IV; and (ii) whether such amounts are to be designated as pre-tax or Roth (if the Participant fails to make a designation, the amounts will be deemed to have been designated as pre-tax) . b. A Participant may, by amendment of a Participation Agreement or by any manner as the Board may prescribe, do any of the following: (i) change the specification of the investment of any contributions of the Account under the Investment Options; (ii) change prospectively the amount of Compensation to be deferred; or (iii) change the designation of such amounts as either pre-tax or Roth. An amendment to the Participation Agreement shall be effective as early as administratively practicable. c. A Participant may at anytime terminate the Participation Agreement to defer Compensation with respect to any calendar month, and the Participant's full Compensation will be thereupon restored in the month subsequent to the effective date of such termination. d. A Participant who has withdrawn from the Plan, or revoked the Participation Agreement as set forth in subsection (c) above, or who returns to perform services for the Employer after a Severance from Employment, may again become a Participant in the Plan and agree to defer Compensation not yet earned by entering into a new Participation Agreement.

15 ARTICLE III EMPLOYER PARTICIPATION 3.1. STATE AND STATE ENTITIES This Plan is available to Employees and Independent Contractors of the following Employers: the State of Mississippi, state universities, community and junior colleges, public schools, political subdivisions and instrumentalities of the State. 3.2. ADOPTION BY POLITICAL SUBDIVISION Any county, municipality, or other political subdivision or instrumentality of the state may make the Plan available to its employees pursuant to Miss. Code Ann. Section 25-14-1 et seq., if it takes the following actions: a. The governing body of the political subdivision must be authorized to participate in the Mississippi Government Employees' Deferred Compensation Plan and Trust as reflected in the official minutes of the political subdivision or authorizing resolution. b. The resolution or minutes must indicate the effective date of adoption. c. The governing body must agree to abide by the rules and conditions established by the Board for the proper administration of the Plan, including the exclusive authority of the Board to designate and establish the duties of the Third Party Administrator. d. Employer must submit a completed Joinder Agreement to the Board. The Board or its designee shall determine whether the requesting Employer is a qualifying political subdivision, and whether the resolution and Employer actions comply with this section and, if they do, shall accept the Joinder Agreement and provide appropriate forms for the Employer and Employees to implement the participation. The political subdivision must agree that Participants may only make contributions to this Plan, not to additional 457 plans sponsored by that subdivision. Upon entry into participation in this Plan, a political subdivision with an existing 457 plan must terminate the existing plan and transfer all assets to the Board. In addition, the political subdivision must provide sufficient information regarding each former Participant and his or her account balance as is needed to allow the Third Party Administrator to establish accounts in this Plan. 3.3. PLAN TERMINATION BY A POLITICAL SUBDIVISION a. A political subdivision that becomes a Participating Employer may terminate its participation in the Plan if it takes the following actions: (i) The governing body of the political subdivision must adopt a resolution terminating their participation in the Plan.

16 (ii) The resolution must specify when the right to participate in the Plan shall end. (iii) The Joinder Agreement may be terminated by executing a Termination Agreement form as prescribed by the Board. The Board shall determine whether the resolution complies with this section and all applicable federal and state laws, shall determine an appropriate effective date and shall provide the appropriate forms to the Participating Employer and the Participants to terminate ongoing participation. b. The Board may at any time terminate the Joinder Agreement for failure of the Employer to comply, in full, with the terms of the Plan and Participation Agreement or for any lawful cause. c. In the event of a termination of an employer’s participation, the Participants in the Plan will be deemed to have withdrawn from future participation in the Plan as of the date of such termination. The Participant's full Compensation on a non- deferred basis will thereupon be restored. Plan benefits shall not be distributed at the time of such termination; rather benefits shall be paid in accordance with the terms of the Plan. If the Employer chooses to transfer assets of active employees from the Plan under the direction of the Board, to another plan, the Employer must provide satisfactory documentation and evidence to the Board that the rights of the Participants to Plan benefits will not be adversely affected, and documentation that the Board has been released from all obligations with respect to these benefits under the Plan. d. Only those assets of Participants who are active employees of the Employer as of the date of termination of the Joinder Agreement are eligible for transfer from the Plan. In addition, transfers from the Plan under this section will only be authorized by the Board for those Participants who make an affirmative election to transfer the assets representing their entire account from the Plan to another plan sponsored by their Employer, and are made in such form and manner as prescribed by the Board.

17 ARTICLE IV CONTRIBUTIONS AND ALLOCATIONS 4.1. BASIC ANNUAL DEFERRALS Except as provided in Sections 4.3 and 4.4 and subject to any applicable law, the maximum amount of Annual Deferrals which may be deferred by a Participant in any taxable year shall not exceed the lesser of (i) the applicable dollar amount provided under Code Section 457(b)(2) (adjusted for cost of living under Section 457(e)(15)(B) of the Code) or (ii) 100% of the Participant's Includible Compensation for the calendar year.

4.2. EMPLOYER CONTRIBUTIONS a. If allowed by state law, the Employer may elect to make contributions to the Plan by executing an Employer Contribution Agreement Form. Such Employer contributions when combined with Participant contributions may not exceed the basic annual deferral limitations set forth in Section 4.1. Each Employer Contribution Agreement Form shall expressly provide the following: (i) That the Employer has the budgetary and statutory authority to make Employer Contributions to the Plan on behalf of actively contributing Participants who are Employees of the Employer; (ii) That, if an election is made, the Employer Contributions will be available to all such actively contributing Participants who are Employees of the Employer on a uniform basis subject to the basic annual deferral limitations; (iii) The basis for making Employer Contributions, i.e., whether Employer Contributions will be based on a specific dollar amount or a percentage of Compensation, etc.; and (iv) That the Employer Contributions will be transferred as part of the regular payroll, included with the Employee's contribution. b. Employer Contributions shall immediately become a part of the Participant's Account subject to the same limitations and rights as contributions made by the Participant and subject to the investment directions of the Participant. 4.3. SPECIAL 457 RETIREMENT CATCH-UP CONTRIBUTIONS a. In any one or more of a Participant's last three calendar years ending before the year in which the Participant attains Normal Retirement Age, as defined in Section 1.16, and the amount determined under this Section 4.3 exceeds the amount computed under Sections 4.1 and 4.2, then the Participant may elect to defer an amount not exceeding the lesser of: (i) twice the dollar amount permitted as a general deferral under Section 4.1 for the current calendar year, or

18 (ii) the sum of the maximum deferral permitted under Section 4.1 for the current calendar year and as much of the applicable deferral limit under Code Section 457(b)(2) in prior years before the current calendar year that had not previously been used ("underutilized amount"). For purposes of this section, a prior year shall be taken into account only if such year began on or after January 1, 1979, and the Participant was eligible to participate in the Plan during all or a portion of the prior year. A Participant may only make this election under this subsection (a) once with respect to any Code Section 457(b) deferred compensation plan of the Employer. b. In determining a Participant's underutilized amount, the Plan shall take into consideration: (i) Prior to 2002, if a Participant made deferrals to the Plan and deferrals to any other Code Section 457(b) plan, salary reduction contributions made to Code Section 401(k) plans, Code Section 403(b) plans, Code Section 402(h)(1) simplified employee pension (SARSEP) plans, Code Section 408(p) simple retirement accounts, and amounts deferred under any plan for which a deduction is allowed because of a contribution to an organization described in Code Section 501(c)(18), such deferrals to the other plans will be taken into account in determining a Participant's underutilized amount under Section 457(b)(2). In addition, Includible Compensation shall be limited to the limitation in effect in the calendar year in which the deferrals were made. If such deferrals cumulatively exceed the then-applicable dollar amount in Section 457(b)(2) in the year that such amounts were deferred, then there will be no underutilized amount for that year. (ii) To the extent that the Employer did not maintain a Code Section 457(b) plan, no underutilized limitation is available to a Participant for that prior year. (iii) After 2001, only deferrals to Code Section 457(b) plans will be taken into account for purposes of determining the underutilized amount. (iv) Age 50 Plus Catch-Up Contributions will not be taken into account for purposes of determining a Participant's underutilized amount. (v) In no event will the deferred amount be more than the Participant's Compensation for the calendar year. 4.4. AGE 50 PLUS CATCH-UP CONTRIBUTIONS A Participant who will attain age 50 before the close of the calendar year may elect Age 50 Plus Catch-up Contributions and commence making such contributions to his Participant Deferral Account. Such contributions are not subject to the limitations of Code Section 457(b) of the Code, but instead are subject to other limitations of Code Section 457(b) of the Code. The maximum dollar amount of the Age 50 Plus Catch-up Contributions for a calendar year is

19 adjusted for cost of living under Section 414(v)(2)(C) of the Code. The Board shall have the authority, in its sole discretion, if determined necessary to comply with applicable law, to suspend the right to make elective deferrals under this paragraph for 2024 or any subsequent calendar year. Any suspension under this subsection shall apply to any new or existing Participation Agreement in effect for such year or years.

4.5. MAXIMUM AMOUNT OF CATCH-UP CONTRIBUTIONS Any catch-up contributions made by a Participant pursuant to Section 4.3 or Section 4.4 may not exceed the greater of (i) the amount that the Participant is eligible to defer under Section 4.3 or (ii) the amount that the Participant is eligible to defer under Section 4.4. 4.6. EXCESS DEFERRALS COORDINATION OF LIMITS a. If a Participant is or has been a participant in one or more other Code Section 457(b) plans in the same calendar year, then this Plan and all such other plans shall be considered as one plan for purposes of applying the limitations of this Article IV. For this purpose, the Board shall take into account contributions of any other such Code Section 457(b) plan maintained by the Employer and, to the extent the Participant provides the Board with sufficient information concerning his or her participation, any such other Code Section 457(b) plans in which the individual participated in the same calendar year. b. For years prior to 2002, if a Participant made deferrals to the Plan and deferrals to any other Code Section 457(b) plan, or a salary reduction or elective contribution under any Code Section 401(k) qualified cash or deferred arrangement, Code Section 401(h)(1)(B) simplified employee pension (SARSEP), Code Section 403(b) annuity contract, and Code Section 408(p) simple retirement account, or under any plan for which a deduction is allowed because of a contribution to an organization described in section 501(c)(18) of the Code, including plans, arrangements or accounts maintained by the Employer or any employer for whom the Participant performed services, the total of such contributions may not exceed the aggregated limit referred to in Section 457(b)(2) of the Code for that year in determining whether an excess deferral has been made. c. For 2002 and thereafter, any amounts contributed by the Participant to a tax- sheltered annuity pursuant to Code Section 403(b) or to a 401(k) plan pursuant to Code Section 402(e)(3) shall not reduce the maximum Annual Deferral under 4.1, 4.2, 4.3, and 4.4 above. d. If the Employer elects to make contributions to the Plan on behalf of actively contributing Participants, the Employer Contributions shall be deemed made by the Participant as additional Annual Deferrals. For purposes of administering Sections 4.1, 4.2, 4.3, and 4.4 of this Plan, Employer Contributions shall be processed as payroll deferrals, shall apply toward the maximum deferral limits

20 and in the taxable year that they are made, and must comply with any procedure established by the Board. e. In the event that the limit on deferral contributions is exceeded pursuant to Article IV, the Board shall apply the proper correction method permissible under applicable law, including calculation of any earnings or losses and the proper tax reporting with respect to such distributions as soon as administratively practicable after the Board determines that the amount is an excess deferral. Any distribution of excess deferrals will first be made from any pre-tax deferrals of the Participant. f. A Participant who participates in the Plan and another 457(b) plan of another employer shall be responsible for complying with the deferral limits of this Article IV. In the event an excess amount has been deferred, the Participant shall notify the Board so that the excess may be distributed as soon as practicable after the Board determines that the amount is an excess deferral. 4.7. MINIMUM DEFERRAL The Board may establish a minimum Annual Deferral and/or minimum deposit amount, and may change such minimums from time to time. The current minimum deferral is $300 per year or $25.00 per month. 4.8. ROTH CONTRIBUTIONS Upon approval by the Mississippi Legislature, a Participant may designate all or a portion of his or her Deferred Compensation as designated Roth Contributions. Any amounts designated as Roth Contributions will be maintained by the Plan in a separate Participant Roth Account. The Plan will credit and debit all contributions and withdrawals of Roth Contributions to such separate Participant Roth Account. The Plan will separately allocate gains, losses, and other credits and charges to the Participant Roth Account on a reasonable basis that is consistent with such allocations for other accounts under the Plan. Roth Contributions shall comply with all applicable requirements under Code Sections 402A and 457(b) and related Treasury Regulations.

4.9. EFFECT OF LEAVE OF ABSENCE ON CONTRIBUTIONS a. If a Participant is on an approved leave of absence from the Employer, with Compensation, his participation in this Plan will continue unless he discontinues such participation in writing to the Third Party Administrator. b. If a Participant is on an approved leave of absence without Compensation, said Participant thereby achieves an inactive status under this Plan. A Participant with inactive status is one for whom no deferrals are currently being made. Severance from Employment does not occur when a Participant achieves inactive status.

21 4.9. DEFERRALS AFTER SEVERANCE FROM EMPLOYMENT, INCLUDING SICK, VACATION AND BACK PAY UNDER AN ELIGIBLE PLAN A Participant who has not had a Severance From Employment may elect to defer accumulated sick pay, accumulated vacation pay, and back pay if the requirements of Code Section 457(b) are satisfied. These amounts may be deferred for any calendar month only if an agreement providing for the deferral is entered into before the beginning of the month in which the amount would otherwise be paid or made available and the Participant is an Employee on the date the amounts would otherwise be paid or made available. Compensation that would otherwise be paid for a payroll period that begins before Severance from Employment is treated as an amount that would otherwise be paid or made available before an Employee has a Severance from Employment. In addition, deferrals may be made for former Employees with respect to Compensation described in Section 1.6 of the Plan provided that such amounts are payable within the later of 2½ months after the Participant's Severance from Employment or the end of the calendar year that includes the date of the Participant's Severance from Employment. 4.11. VOLUNTARY AUTO-ESCALATION OF CONTRIBUTIONS A Participant may elect to participate in a voluntary auto-escalation feature and may schedule automatic annual increases in contribution amounts so long as the increased contributions do not exceed the basic annual deferral limitations set forth in Section 4.1.

22 ARTICLE V ACCOUNTS AND REPORTS 5.1. PARTICIPANT ACCOUNT The Third Party Administrator shall maintain a Participant Account with respect to each Participant, and that account shall be credited with the Participant's annual deferral for each pay period. The balance of such account shall be adjusted daily to reflect any distribution to the Participant and all interest, dividends, account charges and changes of market value resulting from the investment of the Participant's contributions. All Plan records, including individual information, that are maintained by the Third Party Administrator shall be the exclusive property of the Board. Participant Account includes any account established under Article VIII for plan-to- plan transfers made for a Participant and Article IX for Rollover Contributions. 5.2. STATEMENT OF ACCOUNT TO PARTICIPANTS A written report of the status of each Participant's Account shall be furnished by the Third Party Administrator within twenty (20) days after the end of each Plan quarter. All reports to Participants shall be based on the fair market value of investments credited to their Accounts as of the reporting dates. Participant reports shall be deemed to have been accepted by the Participant as correct unless written notice to the contrary is received by the Third Party Administrator within thirty (30) days after the mailing or distribution of a report to the Participant. 5.3. VALUATION The Third Party Administrator and/or the managers of each investment Provider shall value the investments in their Fund each business day based on acceptable industry practices. All daily transactions shall be based on that day's closing market values. The Third Party Administrator shall apply such values, including earnings and losses, to appropriate Participant Accounts. 5.4. DEPOSITS In all cases, deposits of deferrals shall be treated as actually made only as of the date the funds are accepted as in good order by the Third Party Administrator. Such deposits received by the Third Party Administrator before 3:00 p.m. Central Time will be processed on the next business day the New York Stock Exchange is open. 5.5. RECORDS AND REPORTS The Third Party Administrator shall keep a record of all actions taken and shall keep all other books of account, records, and other data that may be necessary for proper administration of the Plan and shall be responsible for supplying all information and reports to the Internal Revenue Service, Participants, Beneficiaries and others as required by law.

23 ARTICLE VI INVESTMENT OF CONTRIBUTIONS 6.1. INVESTMENT OPTIONS AND GROUP TRUSTS The Board shall screen and approve any insurance company or other entity seeking to provide an Investment Option or otherwise operate as a Provider under this Plan for the investment of deferred amounts by Participants or their Beneficiaries. The Board shall monitor and evaluate at least annually the available investment options as well as the appropriateness of continued offerings by the Plan. The Board shall determine, in its sole discretion, whether to add additional investment options and/or to terminate options that are determined to be no longer appropriate for offering. These investment options, unless restricted by law, may include collective investment trusts or common group trusts that provide for the pooling of assets of employee benefits trusts, that meet all the conditions as permitted under Revenue Rulings 81-100 and 2011-1, or subsequent guidance, and that are operated or maintained exclusively for the commingling and collective investment of funds from other trusts. This investment authority is granted on the condition that such funds in a group trust must consist exclusively of trust assets held under plans qualified under Code Section 401(a), that are exempt or treated as exempt under Code Section 501(a); funds from individual retirement accounts that are exempt under Code Section 408(e); funds from eligible governmental plan trusts or custodial accounts under Code Section 457(b) that are exempt under Code Section 457(g); and funds from Code Section 401(a)(24) governmental retiree benefit plans that are not subject to Federal income taxation; and, if permitted by the group trust, funds that consist of assets of a custodial account under Code Section 403(b)(7) are invested in the group trust, all assets of the group trust, including the Code Section 403(b)(7) custodial accounts, are solely permitted to be invested in stock of regulated investment companies. For this purpose, a trust includes a custodial account that is treated as a trust under Code Sections 401(f), 403(b)(7), 408(h) or 457(g)(3). The provisions of the documents governing such collective investments trusts or group trusts, as amended from time to time, shall govern any investments therein and are hereby made a part of this Trust Agreement and its corresponding plan document. The Plan may offer a Self-Directed Brokerage Account for additional investment choices. The Plan Investments may only be made in the Self-Directed Brokerage Account as a transfer of assets from the account balance in the Plan’s Investment Options. A minimum balance of $2,500 in the Plan’s Investment Options is required for a Participant or Beneficiary to be eligible to establish and maintain a Self-Directed Brokerage Account. Additionally, Plan assets held in a Self-Directed Brokerage Account are not eligible for a plan-to-plan transfer. Participants must first move any Self-Directed Brokerage Account assets they wish to transfer to another eligible government plan to the Plan’s Investment Options before a plan-to-plan transfer can be executed. 6.2 DIRECTION BY PARTICIPANT Amounts deferred under the Plan shall be invested in an Investment Options. Participants will direct the investment of their Participant Accounts among the Investment Options offered under the Plan. The Employer, Board of Trustees, and the Third Party Administrator shall be under no duty to question any investment direction of a Participant or to make suggestions to the Participant

24 regarding such investment, nor shall they be held responsible in any manner for investment loss or depreciation in asset value of any such investment. 6.3 REMITTANCE OF DEFERRALS All amounts of Deferred Compensation under the Plan shall be transferred by the Employers to the Trust following the effective date of the deferral under Section 2.4. Deferred Compensation under the Plan shall be transferred by the Employer to the Plan no later than seven (7) business days after the effective date of the deferral. 6.4. INVESTMENT DEFAULT All deferrals will be returned to the Employer if a Participant does not have a valid form specifying the manner in which deferrals are to be invested. No funds shall be invested unless such investment direction is on file. 6.5. CONFLICTS If any provision of an Investment Options agreement is not consistent with the Plan provisions, the terms of the Plan shall control. 6.6. EXCESSIVE TRADING The Third Party Administrator shall administer any excessive trading policy, and restrictions on such excessive trading, that is applicable to each Provider of an Investment Option offered by the Plan. 6.7. DISCONTINUANCE OF INVESTMENT OPTIONS

If an Investment Option ceases to be eligible to receive deferrals under the Plan, the Board may direct that both existing amounts under Participant Accounts that were invested with such Investment Option and any future contributions be transferred to the remaining Investment Options that are approved to receive deferrals under the Plan.

25 ARTICLE VII BENEFITS 7.1. WHEN BENEFITS ARE PAYABLE a. A Participant Deferral Account or Participant Roth Contribution Account may not be paid to a Participant (or, if applicable, the Beneficiary) until one of the following events has occurred: (i) upon the Participant's Severance from Employment or death; (ii) an Unforeseeable Emergency, within the meaning of and subject to Section 7.11; (iii) the election of a voluntary in-service distribution within the meaning of and subject to Section 7.12; (iv) the election of a small account distribution within the meaning of and subject to Section 7.13; (v) the election of a qualified birth or adoption distribution within the meaning of and subject to Section 7.14; or (vi) the election of a coronavirus-related distribution within the meaning of and subject to Section 7.15; b. A Participant 457 Rollover Account shall be paid to a Participant in accordance with sub-section (a) above. c. A Participant Non-457 Rollover Account that is separately accounted for under the Plan may be distributed at any time, pursuant to the Participant’s request. 7.2. BENEFIT PAYMENTS Benefits shall be paid from the Trust Fund in accordance with this Article following one of the events noted in Section 7.1. Benefits payable to a Participant or a Beneficiary shall be based upon the value of the Participant’s Account. Payment of benefits under this Plan and Trust shall be made only to the extent of amounts that are available under the Plan as measured by the elections made by the Participant pursuant to the Participation Agreement, and no responsibility is assumed for the investments or performance results thereof. The value of any benefit shall be determined by the actual value of the Participant’s account at the time of benefit payment unaffected by an independent or arbitrary standard of calculation with respect thereto.

26

7.3. APPLICATION FOR BENEFITS

Upon a Participant’s application for benefits, the Third Party Administrator shall direct the

distribution of a Participant Account in accordance with this Article VII. Benefit payments to a

Participant or Beneficiary, if applicable, shall be made according to the manner and method of

payments as elected in the Participant Systematic Distribution Form or Lump Sum/Partial Lump

Sum Form. Such an election, with the exception of an annuity elected under Section 7.4, may be

changed by a Participant as appropriate and as allowed by the Plan pursuant to Code Section 457.

The election will be effective only if made on the aforementioned forms and received in the office

designated by the Board in accordance with such procedures as the Board may establish. Such

election shall designate the Participant’s account(s) from which the benefits are to be paid.

For purposes of interpreting the provisions of the Plan, except as otherwise provided, the Board

shall only consider the Participant Systematic Distribution Form or Lump Sum/Partial Lump Sum

Form signed by the Participant or Beneficiary, as appropriate, and submitted to the Third Party

Administrator.

7.4. PAYMENT OPTIONS

A Participant or Beneficiary may choose from the following benefit distribution options subject to

the requirements of Code Section 457 and 401(a)(9).

1. Lump Sum Payment
2. Partial Lump Sum Payment
3. Systematic Withdrawal Option

7.5. SPECIAL TAX EXCLUSION FOR QUALIFIED INSURANCE DEDUCTIONS

a. Section 845 of the Pension Protection Act of 2006 amends Internal Revenue Code

§402 to allow an Eligible Retired Public Safety Officer to make an election to

exclude from federal gross income an amount not to exceed $3,000 of his or her

retirement plan benefits if such amount is deducted from the Eligible Retired

Public Safety Officer’s benefit and is used to pay qualified health insurance

premiums. Qualified health insurance premiums include premiums for accident

and health insurance or qualified long-term care insurance. Amounts deducted

from the retirement benefit payable from the Plan may be paid directly to the

participant. The Eligible Retired Public Safety Officer must include with their tax

return for the year in which the distribution is made an attestation that such funds

do not exceed the amount paid by the Eligible Retired Public Safety Officer for

qualified health insurance premiums in the year of the distribution to qualify for

the exclusion. For this purpose, all eligible retirement plans, including this Plan,

must be treated as a single plan.

b. The exclusion is only available to an Eligible Retired Public Safety Officer who,

by reason of disability or attainment of normal retirement age, retired from

service as a public safety officer with the Employer who maintains this Plan.

27 c. An Eligible Retired Public Safety Officer means an individual who served and retired from public service by reason of disability or attainment of normal retirement age with a public agency in an official capacity as a law enforcement officer, as a firefighter, as a fire or police department chaplain, or as a member of a rescue squad or ambulance crew, as may be defined from time to time by the Department of Justice. The Internal Revenue Service shall have the final determination as to whether an individual is an Eligible Retired Public Safety Officer. d. As an alternative to paying the amounts to the Eligible Retired Public Safety Officer directly, an Eligible Retired Public Safety Officer may elect to have eligible premiums withheld from his or her retirement or disability retirement benefit and paid by the Plan directly to the insurance provider. To the extent allowed by law, the retiree may make such election prospectively for the current and future years. e. In administering the tax exclusion, the Plan is only responsible for performing the administrative functions associated with the deduction and payment of qualifying insurance premiums, if elected by the Eligible Retired Public Safety Officer. The Eligible Retired Public Safety Officer is and remains responsible for income tax liability for retirement benefits paid by the Plan. The Plan has no responsibility for tax liability, including interest and penalties, that may arise from an Eligible Retired Public Safety Officer’s election to exclude any amounts from income. 7.6. MINIMUM DISTRIBUTION RULES Notwithstanding any provisions in the Plan to the contrary, any distribution under the Plan shall be made in accordance with Code Section 457(d) and a reasonable and good faith interpretation of Code Section 401(a)(9), including the incidental benefit rules of Section 401(a)(9)(G) of the Code, Treasury Regulations 1.401(a)(9)-1 through -9 as they are amended. No payment option may be selected by a Participant unless the amounts payable to the Participant are expected to be at least equal to the minimum distribution required under Section 401(a)(9) of the Code. The Accounts of a Participant shall be distributed to the Participant beginning no later than the Participant’s “required beginning date.” For purposes of this Section, “required beginning date” means April 1 of the calendar year following the later of (i) the calendar year in which the Participant reaches the applicable age or (ii) the calendar year in which the Participant retires. For a Participant who attained age 70½ before December 31, 2019, the applicable age is 70½. For a Participant who attained age 72 before January 1, 2023, the applicable age is 72. For a member who attains age 72 after December 31, 2022, the applicable age is as defined in Code Section 401(a)(9)(C)(v). During the lifetime of the Participant, the Participant’s Roth Account (or any Rollover Contributions consisting of designated Roth contributions) will not be included in the account balance subject to the required minimum distribution rules. For purposes of this Section, “first distribution year” means the calendar year described in the preceding sentence. Except as otherwise required by Code Section 457(d)(2), the amount to be

28 distributed each year, beginning with the distributions attributable to the first distribution year, shall not be less than the quotient obtained by dividing the Participant’s account balance by the lesser of (i) the applicable life expectancy, or (ii) if the Participant’s spouse is not the designated beneficiary, the applicable divisor specified in Code Section 401(a)(9) or the regulations promulgated there under. Distributions after the death of the Participant to the spouse shall be distributed using the applicable life expectancy as the applicable divisor. Required minimum distributions will be determined under this section beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant’s date of death. If the Participant dies before receiving the minimum distribution payable for the distribution calendar year in the year of the Participant’s death, such amount shall be distributed to the Participant’s Beneficiary. The “distribution calendar year” means the calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant’s required beginning date. The required minimum distribution for the Participant’s first distribution calendar year will be made on or before the Participant’s required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant’s required beginning date occurs, will be made on or before December 31 of that distribution calendar year. The Participant is responsible for coordinating between any other 457 plans he or she has and this Plan to meet the minimum distribution rules. 7.7. PAYMENTS TO BENEFICIARY a. Upon the death of a Participant the Board shall direct that the deceased Participant’s Participant Account be distributed to the Beneficiary in accordance with the provisions of this Section 7.7. b. The designation of a Beneficiary shall be made on a form satisfactory to the Board and must be received in the office of the Third Party Administrator prior to the Participant’s death. A Participant, or after the death of the Participant, a Beneficiary may at any time revoke his designation of a Beneficiary or change his Beneficiary by filing written notice of such revocation or change with the Board. In the event no valid designation of Beneficiary exists at the time of the Participant’s, or surviving Beneficiary’s death, the death benefit shall be payable to the Participant’s or Beneficiary’s estate. c. The Board may require such proper proof of death and such evidence of the right of any person to receive payment of the value of the Participant Account of a deceased Participant, or Beneficiary, as the Board may deem appropriate. The Board’s determination of death and of the right of any person to receive payment shall be conclusive. d. Death benefits payable to a Beneficiary shall be made in a form as selected by the Beneficiary in accordance with the available options as indicated in Section 7.4.

29 In the event a Beneficiary fails to make an election as to a benefit distribution option, any benefit payable to such Beneficiary shall be distributed in a lump sum payment in accordance with Code Section 401(a)(9). The terms of any annuity contract purchased and distributed by the Plan to a Beneficiary shall comply with the requirements of the Plan. e. Notwithstanding any provision in the Plan to the contrary, distributions upon the death of a Participant, shall be made in accordance with the following requirements and shall otherwise comply with Code Section 401(a)(9) and the Regulations there under. f. In accordance with the Beneficiary’s election, if minimum payments under Code Section 401(a)(9) have not begun upon the death of a Participant and the designated Beneficiary is not the Participant’s surviving spouse, death benefit payments must: (i) begin to be distributed to the designated Beneficiary no later than the December 31 of the calendar year immediately following the calendar year of the Participant’s death payable over a period not to exceed the life expectancy of the Beneficiary; or (ii) be distributed no later than the December 31 of the calendar year containing the fifth anniversary of the Participant’s death. g. In accordance with the Beneficiary’s election, if the designated Beneficiary is the Participant’s surviving spouse and minimum payments under Code Section 401(a)(9) have not begun upon the death of a Participant, minimum payments to the surviving spouse as the designated Beneficiary must begin by the later of the: (i) December 31 of the calendar year immediately following the calendar year in which the Participant dies, or (ii) December 31 of the calendar year in which the Participant would have attained age 70½ (age seventy-two (72) with respect to a Participant who would have attained age seventy and one-half (70 ½) after December 31, 2019). Payments to the surviving spouse as the designated Beneficiary must be made over a period not to exceed the surviving spouse’s life expectancy. h. If no Beneficiary is designated or if no Beneficiary survives the Participant, then payment shall be made to the estate of the Participant in a single lump sum amount equal to the current value of such remaining payments. i. If the Participant dies on or after the date distributions begin and there is a designated Beneficiary, distributions shall be based on the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant’s designated Beneficiary.

30 j. Life expectancies calculations will be computed using the factors in the Single Life Table set forth in Section 1.401(a)(9)-9, A-1 of the Regulations, as follows: (i) The Participant’s remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (ii) If the Participant’s surviving spouse is the Participant’s sole, primary designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year. (iii) If the Participant’s surviving spouse is not the Participant’s sole, primary designated Beneficiary, the designated Beneficiary’s remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant’s death, reduced by one for each subsequent year. (iv) If the Participant dies on or after the date distributions begin and there is no designated Beneficiary as of September 30 of the year after the year of the Participant’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the Participant Account by the Participant’s remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 7.8. PARTICIPANT DEATHS AFTER DECEMBER 31, 2021 Notwithstanding any contrary provisions, effective for Participant deaths after December 31, 2021, the following distribution provisions shall take effect: a. Upon the death of a Participant before distributions of his or her account begin under Section 7.6, the following distribution provisions will take effect; provided, however, that such provisions are subject to any regulations or other guidance issued under Code Section 401(a)(9): (i) If the Participant has no designated Beneficiary within the meaning of Code Section 401(a)(9)(E)(i), the Participant's Account under the Plan will be distributed by December 31 of the calendar year containing the tenth anniversary of the Participant's death. (ii) If any portion of the Participant’s Account is payable to a designated Beneficiary within the meaning of Code Section 401(a)(9)(E)(i), the

31 Participant’s Account shall be distributed to the designated Beneficiary by December 31 of the calendar year containing the tenth anniversary of the Participant's death. (iii) Notwithstanding paragraph (ii), if any portion of the Participant’s Account is payable to an Eligible Designated Beneficiary, within the meaning of Code § 401(a)(9)(E)(ii) and as set forth in paragraph (b), the Eligible Designated Beneficiary may elect for the Participant's Account to be distributed (A) by December 31 of the calendar year containing the tenth anniversary of the Participant's death, or (B) beginning no later than December 31 of the calendar year immediately following the calendar year in which the Participant died, over the life of the Eligible Designated Beneficiary or over a period not exceeding the life expectancy of the Eligible Designated Beneficiary. If the Eligible Designated Beneficiary is the surviving spouse, the Eligible Designated Beneficiary may elect to delay payment under item (B) until December 31 of the calendar year in which the Participant would have reached the applicable age. If the Eligible Designated Beneficiary does not elect a method of distribution as provided above, the Participant's Account(s) shall be distributed in accordance with item (A). Effective for calendar years beginning after December 31, 2023, a surviving spouse who is the Participant’s sole designated Beneficiary may elect to be treated as if the surviving spouse were the Participant as provided under Code § 401(a)(9)(B)(iv). (iv) Upon either (A) the death of an Eligible Designated Beneficiary before distribution of the Participant's entire Account or (B) the attainment of the age of majority, as defined under the laws of the State of Mississippi, for an Eligible Designated Beneficiary who is a minor child of the Participant, subparagraph (iii) shall no longer apply, and the remainder of the Account shall be distributed under subparagraph (i) or (ii), as applicable. b. For purposes of this Section 7.8, and in accordance with Code Section 401(a)(9)(E)(ii), an "Eligible Designated Beneficiary" is a designated Beneficiary who, as of the date of the death of the Participant, is: (i) the surviving spouse of the Participant; (ii) a child of the Participant who has not reached the age of majority, as defined by the laws of the State of Mississippi; (iii) disabled within the meaning of Code Section 72(m)(7); (iv) chronically ill within the meaning of Code Section 7702B(c)(2) (except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature); or (v) any other individual who is not more than ten (10) years younger than the Participant.

32 7.9. DISTRIBUTION FOR INCOMPETENT OR MINOR BENEFICIARY In the event a distribution is to be made to a minor Beneficiary, then the Board may direct that such distribution be paid to the legal guardian, or if none, to a custodial parent of such Beneficiary, or to the legal custodian for such Beneficiary. Such a payment to the legal guardian, parent or guardian of a minor Beneficiary shall fully discharge the Provider, any other providers of the Plan, Board, Employer, and Plan from further liability on account thereof. In the event a distribution is to be made to an incompetent as declared by a physician, then the Board may direct that such distribution be paid to the court appointed and currently acting conservator of the incompetent or to other such individual who is legally responsible for the incompetent as permitted by the laws of the state in which the incompetent resides. Such a payment to the conservator or other such individual who is legally responsible for the incompetent shall fully discharge the Provider, any other providers of the Plan, Board, Employer, and Plan from further liability on account thereof. 7.10. LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN In the event that all, or any portion, of the distribution payable to a Participant, or Beneficiary hereunder shall remain unpaid solely by reason of the inability of the Third Party Administrator, after sending a registered letter, return receipt requested, to the last known address, and after further diligent effort, to ascertain the whereabouts of such Participant or Beneficiary the amount so distributable shall be held within the Plan’s Uncashed Check Account. Distributions will be reissued at the request of Participant or Beneficiary, or after the Third Party Administrator confirms the location of the recipient. 7.11. UNFORESEEABLE EMERGENCY WITHDRAWALS a. A Participant may request a lump sum distribution in the form of an Unforeseeable Emergency withdrawal subject to the following requirements: (i) The request for an Unforeseeable Emergency withdrawal will be subject to review and approval based on the Participant’s relevant facts and circumstances. (ii) The request for an Unforeseeable Emergency may be made only to the extent that such emergency is or may not be relieved through:  reimbursement or compensation from insurance or otherwise;  liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or  cessation of the Participant’s deferrals under the Plan. (iii) Distributions due to an Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which may

33 include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution). b. An unforeseeable emergency is a severe financial hardship resulting from: (i) an illness or accident of the Participant or Beneficiary, the Participant’s or Beneficiary’s spouse or of a Participant’s or Beneficiary’s dependent [as defined in Code Section 152(a)]; (ii) loss of the Participant’s or Beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner’s insurance (e.g., as a result of a natural disaster)); (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or the Beneficiary. c. A Participant may request an Unforeseeable Emergency withdrawal by submitting that request in writing on the Plan’s approved form(s) to the Board, or committee appointed by the Board, who will review the request. The Board may rely on the Participant’s written self-certification that i) the circumstances for the Unforeseeable Emergency exist, (ii) the amount requested is not in excess of the amount reasonably necessary to satisfy the emergency need, and (iii) the participant has no alternative reasonably available means to satisfy such need, unless the Board has actual knowledge that is contrary to the Participant’s certification. If the request is denied, a request for review of the determination may be made in writing. If a request of an Unforeseeable Emergency withdrawal is approved, a lump sum distribution from the Participant’s Account will be made in an amount as approved to meet the Unforeseeable Emergency. d. Upon the application of a Participant for an Unforeseeable Emergency withdrawal of funds prior to termination of employment, the Participant shall be required to cease deferrals in the Plan for six (6) calendar months after the Unforeseeable Emergency request. Should a Participant request a subsequent Unforeseeable Emergency withdrawal within three years from the date of such original request, the Participant shall be required to cease deferrals in the Plan for a period of twelve (12) months beginning with the month following the date in which the Unforeseeable Emergency withdrawal was requested. e. In no event shall the amount of a withdrawal for an Unforeseeable Emergency exceed the amount of benefits that would have been available to the Participant at the time of such withdrawal. Notwithstanding any other provision of this Plan, if a Participant makes a withdrawal hereunder, the value of benefits under the Plan shall be appropriately reduced to reflect such withdrawal, and the remainder of any benefits shall be payable in accordance with otherwise applicable provisions of the Plan.

34 7.12. VOLUNTARY IN-SERVICE DISTRIBUTION Upon proper written request, a Participant who has attained the age of 59 ½ or older may elect to receive an in-service distribution provided that the Participant cancels all deferrals of compensation into the Plan before receiving such distribution. Participants, who meet the conditions of Article II, may later resume deferrals of compensation upon receipt by the Plan Administrator of a new Participation Agreement as set forth under Section 2.4. 7.13. VOLUNTARY IN-SERVICE SMALL ACCOUNT DISTRIBUTION Upon proper written request, a Participant who has not yet attained the age of 59 ½ may elect to receive a small account distribution payable in a lump sum if the following requirements as described in Code Section 457(e)(9) are met: a. the Participant Deferral Account value does not exceed $5,000.00 (or the dollar limit under section 411(a)(11) of the Code, if greater); b. the Participant has not previously received an in-service distribution of the Deferral Account under Code Section 457(e)(9)(A); and c. no amount has been deferred under the Plan with respect to the Participant during the two-year period ending on the date of the in-service distribution. 7.14. QUALIFIED BIRTH OR ADOPTION DISTRIBUTIONS Upon proper written request on the Plan’s approved forms, if a Participant experiences a qualified birth or adoption as described under Code Section 72(t)(H), the Participant may elect to receive a distribution payable in a lump sum up to $5,000 within one year from the date of a qualified birth or finalized qualified adoption (excluding the adoption of the child of the Participant’s spouse). The Board may rely on the individual's written certification that the distribution qualifies under this standard. The Participant may elect to recontribute all or part of the amount of a qualified birth or adoption distribution to the Plan within three years after the date the distribution was received. 7.15. CORONAVIRUS-RELATED DISTRIBUTIONS From January 1, 2020, to December 30, 2020, upon proper written request, a qualified Participant may receive a coronavirus-related distribution ("Coronavirus Distribution") up to One Hundred Thousand Dollars ($100,000) from this Plan and all other plans maintained by a related employer if the Participant certifies any of the following requirements, as described in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), are met: a. Participant is diagnosed with the virus SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention; b. Participant’s spouse or dependent (as defined in Code section 152) is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention;

35 c. Participant experiences adverse financial consequences as a result of: (i) the Participant, the Participant's spouse, or a member of the Participant's household (1) being quarantined, (2) being furloughed or laid off, or having work hours reduced, (3) being unable to work due to lack of child care, (4) having a reduction in pay (or self-employment income), or (5) having a job offer rescinded or start date for a job delayed, due to SARS- CoV-2 or COVID-19; or (ii) closing or reducing of hours of a business owned or operated by the Participant, the Participant's spouse, or a member of the Participant's household due to SARS-CoV-2 or COVID-19. The Participant may elect to recontribute all or part of the amount of a coronavirus-related distribution to the Plan within three years after the date the distribution was received. 7.16. DISASTER RELIEF Notwithstanding any other provision of the Plan, a Participant may receive a qualified disaster recovery distribution from the Plan. For these purposes, a qualified disaster is any disaster for which a major disaster has been declared under Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act after December 27, 2020 and a qualified disaster area of a qualified disaster is the area for which such a disaster was declared. A qualified disaster recovery distribution is any distribution made within 180 days after the first day of the incident period or the date of the applicable disaster declaration to an individual (i) whose principal place of abode at any time during the incident period of the qualified disaster is located in the qualified disaster area of the qualified disaster and (ii) who has sustained an economic loss by reason of the qualified disaster. The aggregate distributions for a qualified disaster for all taxable years cannot exceed $22,000.

36 ARTICLE VIII PLAN TO PLAN TRANSFERS 8.1. TRANSFERS FROM OTHER CODE SECTION 457(b) PLANS a. If an Employer adopts the Mississippi Government Employees' Deferred Compensation Plan and Trust offered by the Board, as an amendment and restatement to its "eligible" 457 plan, the Plan will accept transfers of amounts previously deferred under another Code Section 457(b) plan maintained by another Employer under the following conditions: (i) The transfer is from an eligible governmental plan to another eligible governmental plan of the same employer; (ii) The transferring plan provides for the transfer of such amounts; (iii) The value of the Participant's account immediately after the transfer is at least equal to the value of the Participant's account immediately before the transfer. b. The Board may require such documentation from the transferring plan as it deems necessary to effectuate the transfer in accordance with Regulation Section 1.457- 10(b) and to confirm that the transferring plan is an eligible government plan as defined in Regulation Section 1.457-2(f). The amount so transferred shall be credited to the Participant Deferral Account and shall be held, accounted for, administered and otherwise treated in the same manner as amounts deferred under Section 4.1, except that the transferred amounts shall not be taken into consideration for purposes of Code Section 457(b)(2). To the extent the amount so transferred consists of designated Roth contributions, such amount shall be maintained and separately accounted for, and the administrator of the transferring plan must provide the Plan with a statement indicating the portion of the transferred amount consisting of designated Roth contributions, and the first year of the five-taxable-year period or a statement that the distribution is a “qualified distribution” as defined in Code Section 402A(d)(2). 8.2. TRANSFERS TO OTHER CODE SECTION 457(b) PLANS UPON SEVERANCE FROM EMPLOYMENT a. Upon a Participant's Severance from Employment, a Participant, or at the death of the Participant, a spousal Beneficiary, may elect to have all or a portion of the Participant Account transferred to the Code Section 457(b) plan of their employer. Such amounts shall be transferred at the Participant's or spousal Beneficiary's election, provided: (i) The Code Section 457(b) plan to which the Participant's or spousal Beneficiary's benefit is being transferred provides for the acceptance of such amounts;

37 (ii) The value of the Participant's or spousal Beneficiary's account immediately after the transfer is at least equal to the value of the Participant's account immediately before the transfer; and (iii) In the case of a transfer made on behalf of a Participant, such individual has had a Severance from Employment with the Employer and is performing services for the Employer maintaining the receiving plan. b. Upon the transfer of amounts under subsection (a), the Plan's liability to pay benefits to the Participant or spousal Beneficiary under the Plan shall be discharged to the extent of the amount so transferred on behalf of the Participant or spousal Beneficiary. The Board may require such documentation from the receiving plan as it deems appropriate or necessary to comply with this Section 8.2 or effectuate the transfer pursuant to Regulation Section 1.457-10(b).

38 ARTICLE IX ROLLOVERS TO AND FROM THE PLAN 9.1. ROLLOVERS TO THIS PLAN a. Amounts that are considered Eligible Rollover Distributions as defined in Code Section 402(c)(4) may be rolled over by a Participant, from an Eligible Retirement Plan, as defined in subsection (b) below. A Participant who is a surviving spouse beneficiary of another Eligible Retirement Plan (as defined in subsection (b) below) may roll over Eligible Rollover Distributions as defined in Code Section 402(c)(4) from such Eligible Retirement Plan. The amounts rolled over from an Eligible Retirement Plan other than a Code Section 457(b) plan maintained by an Employer shall be allocated to the Participant Non-457 Rollover Account. The amounts rolled over from another Code Section 457(b) plan maintained by an Employer shall be allocated to the Participant 457 Rollover Account. Amounts in the Participant Non-457 Rollover Account shall be accounted for separately from amounts in the Participant 457 Rollover Account. Amounts that consist of designated Roth contributions shall be accounted for separately from other Rollover Contribution amounts. The administrator of the distributing Eligible Retirement Plan must provide this Plan with a statement indicating the portion of the transferred amount consisting of designated Roth contributions, and the first year of the five-taxable-year period or a statement that the distribution is a “qualified distribution” as defined in Code Section 402A(d)(2). b. For purposes of this Section, the term "Eligible Retirement Plan" means any other Code Section 457(b) plan maintained by an Employer, a Code Section 403(b) program, a Code Section 401(a) plan, an individual retirement account as described in Code Section 408(a), and an individual retirement annuity as described in Code Section 408(b). For purposes of this Section 9.1, the term "amounts rolled over from an Eligible Retirement Plan" means: (i) amounts rolled to the Plan directly from another Eligible Retirement Plan on behalf of a Participant; (ii) Eligible Rollover Distributions received by a Participant from another Eligible Retirement Plan that are rolled over by the Participant to the Plan within sixty (60) days, following his receipt thereof; (iii) a Coronavirus Distribution, provided a Participant makes the contribution within 36 months from the date of the Coronavirus Distribution; (iv) a Qualified Birth or Adoption Distribution, provided a Participant makes the contribution within 36 months from the date of the distribution; (v) a Qualified Disaster Recovery Distribution, provided a Participant makes the contribution within 36 months from the date of the distribution; and (vi) an RMD distribution from the Plan received in 2020.

39 9.2. ROLLOVERS FROM THIS PLAN a. Notwithstanding any provision of the Plan to the contrary, a Participant shall be permitted to elect to have any Eligible Rollover Distribution as defined in Code Section 402(c)(4) paid directly to an Eligible Retirement Plan (as defined in Section 9.1(b)) specified by the Participant. The Participant shall, in the time and manner prescribed by the Board, specify the amount to be rolled over and the Eligible Retirement Plan to receive such rollover. b. The election described in subsection (a) also applies to the surviving spouse who is the designated Beneficiary of the Participant, provided that such spouse directs the transfer of an Eligible Rollover Distribution [as defined in Section 9.1(a) into an Eligible Retirement Plan (as defined in Section 9.1(b)] in which such spouse is a participant. c. To the extent allowed by law, a distribution from this Plan payable to a non- spouse Beneficiary may be rolled over via a trust-to-trustee transfer to an individual retirement account or individual retirement annuity established for the purpose of receiving such distribution, provided the distribution is an eligible rollover distribution. Any amount rolled over to such accounts will be treated as an inherited individual retirement account or annuity, subject to applicable minimum distribution rules. d. An Eligible Rollover Distribution made after December 31, 2007, can be rolled over directly to a Roth IRA as provided by IRC Section 408A(e), as amended by the Pension Protection Act of 2006. Such direct rollover is subject to the rules that apply to rollovers from a traditional IRA to a Roth IRA. Effective for an Eligible Rollover Distribution made after December 18, 2015, it may be rolled over directly to a SIMPLE IRA as described in Code Section 408(p), provided that the rollover contribution is made after the two-year period beginning on the date the distributee first participated in any qualified salary reduction arrangement maintained by the distributee's employer under Code Section 408(p)(2), as described in Code Section 72(t)(6). e. For tax years beginning prior to January 1, 2010, restrictions imposed on rollovers as provided under IRC Section 408A(d)(3), as amended by the Pension Protection Act of 2006, shall apply. 9.3. PURCHASING SERVICE CREDITS UNDER A STATE OR LOCAL RETIREMENT SYSTEM A Participant may direct the Board to transfer amounts under his Participant Account (other than Roth Contributions) tax-free under the Plan in accordance with Code Section 457(e)(17) to the fiduciary of a state or local retirement system in order to enable the Participant to purchase years of service credits under the system or repay amounts previously cashed out under the system even if the Participant is not eligible for a distribution under Section 7.1. The Board shall take such

40 reasonable measures as required to ensure that the intended recipient plan will accept such transferred amounts.

41 ARTICLE X ADMINISTRATION 10.1. POWERS AND RESPONSIBILITIES OF THE BOARD a. This Plan will be administered by the Board for the benefit of the Participants and their Beneficiaries, subject to the specific terms of the Plan. The Board shall represent the Employer in all matters concerning the administration of this Plan. Board vacancies will be filled in accordance with Section 25-11-15 of the Mississippi Code of 1972, as amended. By way of illustration and not limitation, the Board is empowered and authorized: (i) The Board shall have full power and authority to adopt rules and regulations for the administration of the Plan, and interpret and construe the Plan in a manner consistent with its terms and provisions and with Code Section 457, including Regulations there under and to establish practices and procedures conforming to those provisions; (ii) to alter, amend or revoke any rules and regulations so adopted; (iii) to enter into contracts on behalf of the Employer with respect to this Plan; (iv) to make discretionary decisions under this Plan; (v) to contract with a Provider to issue an Investment Options(s) or other investment services; (vi) to contract with a third party administrator to provide services under the Plan including, but not limited to, the enrollment of eligible individuals as Participants, the maintenance of individual or other accounts and other records, the making of periodic reports and the disbursements of benefits to Participants and Beneficiaries; (vii) to appoint or employ such agents, attorneys, actuaries, accountants, auditors, investment counsel, and clerical assistants, and other persons as the Board deems necessary or desirable in connection with the administration of this Plan. (viii) and to perform any and all administrative duties under this Plan. b. Consistent with the authority noted above, the Board's determination shall be final and conclusive upon all persons affected thereby. It is recognized that unusual circumstances may occur and questions may arise that are not specifically covered by any provision of the Plan, and the Board shall have the right to resolve all such questions. Notwithstanding the above, the Board's power and responsibility under the Plan shall not extend to, nor have any control over, those responsibilities and duties of the Provider.

42 c. The Employer, Providers, the Board of Trustees and the persons they designate to carry out or help carry out their duties or responsibilities, are fiduciaries under the Plan. Each fiduciary has only those duties or responsibilities specifically assigned to him under the Plan or Trust, or delegated by another fiduciary. Each fiduciary may assume that any direction, information or action of another fiduciary is proper and need not inquire into the propriety of any such action, direction or information. Except as provided by law, no fiduciary will be responsible for the malfeasance, misfeasance or nonfeasance of any other fiduciary. d. The Board of Trustees and all other fiduciaries shall discharge their duties with respect to this Trust solely in the interest of the Participants and Beneficiaries of the Plan. Such duties shall be discharged for the exclusive purpose of providing benefits to the Participants and Beneficiaries and defraying expenses of the Plan. The Board of Trustees' powers and duties shall be those defined for the Board of Trustees under applicable Mississippi State Statutes. e. The Board shall periodically review the performance of any person to whom duties have been delegated or allocated by it under the provisions of this Plan or pursuant to procedures established hereunder. This requirement may be satisfied by formal periodic review by the Board or by a qualified person specifically designated by the Board, through day-to-day conduct and evaluation, or through other appropriate ways. 10.2. RELIANCE ON INFORMATION FROM EMPLOYER To enable the Board or its designee to perform their functions, the Employer shall supply the necessary information to the Board on a timely basis regarding the Participants under the plan, including but not limited to Compensation, date of hire, date of death, Severance from Employment, and such other pertinent facts and data as the Board may require. The Board may rely upon such information as is supplied by the Employer and shall have no duty or responsibility to verify such information. 10.3. PAYMENT OF EXPENSES All expenses of administration will be paid by fees assessed to the Participants.

43 ARTICLE XI TRUST 11.1. TRUST STATUS All assets held in connection with the Plan, including all amounts of Deferred Compensation pursuant to the Plan, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property or rights shall be held and invested in trust for the exclusive benefit of Participants and their Beneficiaries under the Plan. No part of the assets and income of the Plan shall be used for, or diverted to purposes other than for the exclusive benefit of the Participants and their Beneficiaries and for defraying reasonable expenses of the Plan. 11.2. TRUST FUND Effective December 1, 1998, to the extent required by Section 457(g) of the Code, all amounts of Deferred Compensation pursuant to the Plan, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property or rights held as part of the Plan, shall be held, managed, invested and distributed as part of the Trust Fund in accordance with the provisions of the Plan. All contributions to the Plan must be transferred by the Employers to the Trust pursuant to Section 6.3. All benefits under the Plan shall be distributed solely from the Trust Fund pursuant to Article VII. 11.3. TRUSTEE The Board of Trustees of the Public Employees' Retirement System is the trustee for assets of the Trust Fund.

44 ARTICLE XII NONASSIGNABILITY/ANTI-ALIENATION 12.1. NONASSIGNMENT a. Subject to applicable state law (and Code Section 401(g) if the Investment Options consists of an annuity contract) no benefit which shall be payable to any person (including a Participant or his Beneficiary) shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements, or torts of any such person, nor shall be subject to attachment or legal process for or against such person. b. Notwithstanding Section 12.1(a), the Third Party Administrator may, upon the Participant's or Beneficiary's being eligible for a distribution from the Plan, pay from a Participant's or Beneficiary's Deferral Account the amount that the Third Party Administrator finds is lawfully demanded under a levy issued by the Internal Revenue Service with respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against the Participant or Beneficiary.

45 ARTICLE XIII MILITARY SERVICE 13.1. GENERAL USERRA COMPLIANCE Notwithstanding any provisions of this Plan to the contrary, contributions, benefits, and service credit with respect to qualified military service shall be provided in accordance with the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA") (as codified at Chapter 43, Title 38, of the United States Code); Code Section 414(u); and, effective January 1, 2007, Code Section 401(a)(37), as amended from time to time. For purposes of this section, "qualified military service" means any service in the uniformed services as defined in USERRA by any individual if such individual is entitled to reemployment rights under USERRA with respect to such service. 13.2. ADDITIONAL DEFERRALS A Participant whose employment is interrupted by qualified military service under Code Section 414(u) or who is on a leave of absence for qualified military service under Code Section 414(u) may elect to make additional contributions under Article IV upon resumption of employment with the Employer. Such additional contribution shall be equal to the maximum amount that the Participant could have deferred during that period if the Participant's employment with the Employer had continued (at the same level of Compensation) without the interruption or leave, reduced by any amounts deferred on behalf of the Employee during the period of the interruption or leave. Such additional contribution shall be made no later than five years following the resumption of employment (or, if sooner, for a period equal to three times the period of the interruption or leave). 13.3. DEATH IN MILITARY SERVICE Effective January 1, 2007, to the extent provided under Code Section 401(a)(37), in the case of a Participant whose employment is interrupted by qualified military service and who dies while performing qualified military service, the survivor of such Participant shall be entitled to any additional benefits rights provided under the Plan as if the Participant timely resumed employment in accordance with USERRA and then terminated employment the next day on account of death. 13.4. DIFFERENTIAL WAGE Effective January 1, 2009, a Participant who is receiving a differential wage payment within the meaning of Code Section 414(u)(12)(D) from the Employer shall be treated as an Employee of the Employer and the differential wage payment shall be treated as Compensation. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner. 13.5. POSSIBLE DISTRIBUTIONS A Participant shall be treated as having a Severance from Employment for purposes of electing to take a distribution from the Plan during any period the individual is performing service in the uniformed services described in Code Section 3401(h)(2)(A) (i.e., any period during which the individual is performing service in the uniformed services (as defined under USERRA) while on

46 active duty for a period of more than 30 days). A Participant who elects a distribution from his or her account by reason of the preceding sentence may not defer any Compensation pursuant to Article IV during the 6-month period beginning on the date of the distribution.

47 ARTICLE XIV NO LOANS No loans are available under this Plan.

48 ARTICLE XV AMENDMENT The Board shall have the right at any time to amend this Plan subject to the limitations of this Code Section 457 and applicable state law. Any such amendment shall become effective as provided therein upon its execution. Provided however, no amendment to the Plan shall be effective if it authorizes or permits any part of the Plan assets (other than such part as is required to pay taxes and administration expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the Participants or Beneficiaries; or causes or permits any portion of the Plan assets to revert to or become property of the Employers.

49 ARTICLE XVI PLAN TERMINATION AS TO ALL EMPLOYERS Pursuant to Miss. Code Ann. § 25-14-1, et. seq., the Mississippi legislature may terminate this Plan as to all Employers at any time, with or without prior notice to governmental bodies that have adopted the Plan, provided however, no termination shall affect the rights of a Participant or a Beneficiary to the receipt of benefits with respect to any Deferred Compensation before the time of the termination as adjusted for the investment experience of the Investment Options prior to or subsequent to the termination.

50 ARTICLE XVII MISCELLANEOUS 17.1. COMPLIANCE WITH CODE SECTION 457(b) The intention of the Employers is that the Plan shall comply with the provisions of Code Section 457(b) and the corresponding provisions of any subsequent laws. This Trust is intended to be exempt from taxation under Code Section 501(a). The provisions of the Plan shall be construed to effectuate such intention. In the event any provision shall be determined to be illegal or invalid for any reason, the illegal or invalid provision shall not affect the remaining parts of the Plan and the Board and the Third Party Administrator may perform such alternative acts which most clearly carry out the intent and purpose of the Plan. 17.2. PARTICIPANT RIGHTS This Plan shall not be deemed to constitute a contract between an Employer and any Participant or to be a consideration or an inducement for the employment of any Participant, Employee, or Independent Contractor. Nothing contained in this Plan shall be deemed to give any Participant, Employee, or Independent Contractor the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge any Participant, Employee or Independent Contractor at any time regardless of the effect which such discharge shall have upon him as a Participant of this Plan. 17.3. PRE-1979 ACCOUNTS Any amounts held by the Employer as a result of deferrals made by a Participant prior to January 1, 1979 shall be held under this Plan from and after the latest of (a) the Effective Date; (b) the date on which the Participant elects to have this Plan apply to such amount; or (c) the date on which such Participant exercises any right or power available under this Plan but not under the Plan agreement pursuant to which such deferral was made. All such persons who were Participants in any prior plan, who exercise any such right or privilege and who have not yet received a distribution of the amounts to which they are entitled under such prior plan shall be deemed to be Participants under this Plan for all purposes. 17.4. GENDER AND NUMBER Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply, and whenever any words are used herein in the singular or plural form, they shall be construed as though they were also used in one other form in all cases where they would so apply.

51

17.5. [RESERVED]

17.6. RECEIPT AND RELEASE FOR PAYMENTS

Any payment to any Participant, Beneficiary, or to any guardian or conservator appointed for such

individual in accordance with the provisions of this Plan, shall, to the extent thereof, be in full

satisfaction of all claims hereunder against the Board, Provider, and Employer.

17.7. DELAY OF BENEFIT PAYMENTS

The Third Party Administrator may delay payment of a distribution to a Participant or Beneficiary

for any of the following reasons:

1. if a dispute arises as to the proper payee;
2. if the paperwork is not in good order to enable it to be processed by the Third Party

Administrator;

c. if notice of legal proceeding involving the Participant's Account has been received

and restricts payments from such Account; or

d. for any other lawful purpose.

17.8. PAYMENTS TO MINOR BENEFICIARIES

If a payment is to be made to a minor Beneficiary, payment shall be made to a person or entity

determined by the Third Party Administrator to be a proper recipient for the Beneficiary under

applicable state law. This may include a duly appointed and currently acting legal guardian or

conservator over the Beneficiary's estate, an adult who is a relative of the Beneficiary or with

whom the Beneficiary resides, or to a court having jurisdiction over the estate of the Beneficiary.

The Third Party Administrator has no duty to supervise or inquire into the application of any

amounts so paid.

17.9. PAYMENTS TO INCOMPETENTS

To the extent the Employer or Third Party Administrator determines that the following procedure

meets applicable state or local law, if a Participant or Beneficiary entitled to receive any benefits

hereunder is adjudged to be legally incapable of giving valid receipt and discharge for such

benefits, benefits will be paid to such person as the Third Party Administrator may designate for

the benefit of such Participant or Beneficiary. Such payments shall be considered a payment to

such Participant or Beneficiary and shall, to the extent made, be deemed a complete discharge of

any liability for such payments under the Plan.

17.10. BINDING CONTRACT

This Plan, and any amendments hereto, shall be binding on the parties hereto and their respective

heirs, administrators, trustees, successors, and assignees and on all Participants and Beneficiaries.

52 17.11. DISPUTES If a dispute as to the proper payee arises, the Third Party Administrator may delay payment until after the dispute is resolved by a court of competent jurisdiction or is settled by the parties involved. 17.12. ASSUMPTION OF RISK Each Participant and Beneficiary assumes all risk in connection with the investment decisions made and any decrease in the value of their Accounts. Neither the Board, the Third Party Administrator, an Employer, nor the Plan shall be liable or responsible for any investment losses under the Plan. 17.13. CONSTRUCTION OF PLAN This Plan shall be construed and governed in accordance with the laws of the State of Mississippi and venue for the resolution of any dispute shall be Jackson, Hinds County, Mississippi.

Part 240 PERS, Optional Retirement Plan

27 Miss. Admin. Code Pt. 240, R. 11.3 Rule 11.3

Governing Law ..................................................................................................................................... 24 11.4 Merger, Consolidation, or Transfers of Plan Assets ......................................................................... 24 11.5 Contracts ............................................................................................................................................... 24 11.6 Requests for Information and Other Claims Procedures ................................................................. 24 ARTICLE XII ............................................................................................................................................................ 26 TRUST .................................................................................................................................................................... 26 12.1 Trust ...................................................................................................................................................... 26 12.2 Trust Status .......................................................................................................................................... 26 12.3 Trust Fund ............................................................................................................................................ 26 12.4 Trustee................................................................................................................................................... 26

ARTICLE I ESTABLISHMENT OF PLAN AND TRUST

1.1 Establishment of Plan House Bill No. 1070, enacted by the Legislature of the State of Mississippi, established the Optional Retirement Plan for Institutions of Higher Learning in the State of Mississippi (the “Plan”) as of July 1, 1990. This Plan document sets forth the provisions of this Defined Contribution (Money Purchase) Retirement Plan, as defined in Section 2.8, and which is a governmental plan, as defined in Internal Revenue Code Section 414(d) (“Code” or “Code Section”) and establishes a Trust for the Plan Assets. The Plan is intended to be a qualified plan under Code Section 401(a). The Plan and Trust are established for the exclusive benefit of Participants and their Beneficiaries. Consistent with Code Section 401(a)(2), no amount held under the Plan will ever inure to the benefit of the Plan Sponsor, any Institution, or any successor of any of them, and all Plan investments and amounts will be held for the exclusive purpose of providing benefits to the Plan’s Participants and their Beneficiaries. Notwithstanding anything in the Plan to the contrary, it will be impossible at any time before the satisfaction of all liabilities to Participants and Beneficiaries for any part of the Plan assets to be used for or diverted to purposes other than for the exclusive benefit of Participants and Beneficiaries, except that payment of taxes and administration expenses may be made from the Plan assets as provided by the Plan or permitted by applicable law. Plan contributions are invested, at the direction of each participant, in one or more Funding Vehicles available to Participants under the Plan. Required Participant Plan Contributions are designated picked-up by the Institution so as not to be included in Participants' gross income for federal tax purposes as provided by Code Section 414(h)(2).

ARTICLE II DEFINITIONS

2.1 Application of Definitions The words and phrases defined in this Article have the following meanings throughout this Plan document. 2.2 Accumulation Account “Accumulation Account” means the separate account established for each Participant to which will be credited all Plan contributions, less expense charges, plus earnings thereon. 2.3 Annual Additions “Annual Additions” means the sum of the following amounts credited to a Participant's Accumulation Account for the Limitation Year: (a) Institution Plan Contributions; (b) Participant Plan Contributions; (c) all nondeductible employee contributions; and (d) forfeitures; however, this Plan does not accept nondeductible employee contributions or provide for forfeitures. 2.4 Beneficiary “Beneficiary” means the individual, institution, trustee, or estate designated by the Participant to receive benefits or otherwise entitled to receive benefits that may become payable hereunder after the death of such Participant. 2.5 Board “Board” means the Board of Trustees of the Public Employees' Retirement System of Mississippi. 2.6 Break in Service “Break in Service” means a valid break which shall be at least one year when there is no contribution to PERS and the Employee was not in a PERS-covered position. This only applies to Employees hired before July 1, 1990. 2.7 Code “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific Code Section includes not only the section but any comparable section or sections of any future legislation that amends, supplements, or supersedes the section. 2.8 Code Section 401(a) Defined Contribution (Money Purchase) Retirement Plan A “Code Section 401(a) Defined Contribution (Money Purchase) Retirement Plan” means a plan that provides for a separate account for each Participant and benefits based solely on the amounts of vested Plan contributions to the Participant's Accumulation Account(s) and earnings thereon and that meets the requirements of Code Section 401(a). All benefits under the Plan are fully funded and are provided solely through the Funding Vehicles selected by the Participant; therefore, benefits are not subject to, nor covered by, federal plan termination insurance. 2.9 Compensation “Compensation” means the full amount earned during a fiscal year by an employee as defined in Miss. Code Ann. § 25-11-103(k) (1972, as amended), including any maintenance furnished subject to the conditions and limits prescribed in PERS Board Regulation 33, Value of Maintenance, not to exceed the employee compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code for the calendar year in which the fiscal year begins and proportionately for less than one (1) year of service. Such amount shall also include compensation which is not currently includable in the Participant's gross income by reason of application of Code Sections 125, 403(b), 414(h)(2), or 457. Compensation includes the following amounts paid following the Participant’s Termination of Employment: (1) amounts that

would have been paid in the absence of a Termination of Employment and is regular pay for services (such as regular wages, overtime, or shift differential or other similar compensation); and (2) amounts that are payment for accrued bona fide sick, vacation, or other leave pursuant to Miss. Code Ann. Sections 25-3-93 and 25-3-95 (1972, as amended) that would have been used if employment continued, provided such payments are made by the later of 2 ½ months after Termination of Employment or the last day of the Plan Year that includes the date of the Termination of Employment. Compensation does not include other amounts paid following Termination of Employment, including severance pay or deferred compensation. 2.10 Date of Employment or Reemployment “Date of Employment or Reemployment” means the effective date of the appointment on which compensation begins for an Employee in an ORP-eligible position. 2.11 Effective Date “Effective Date” means July 1, 1990, which is the effective date of the Plan. 2.12 Eligible Employee “Eligible Employee” means any Employee of an Institution who is appointed or employed on or after July 1, 1990, and who holds a position as defined herein and is eligible for membership in the Public Employees’ Retirement System of Mississippi (sometimes hereafter referred to as PERS). Teaching positions include: (a) All persons whose specific assignments customarily include conducting instruction, research or public service as a principal activity (or activities), and who hold academic-rank titles of professor, associate professor, assistant professor, instructor, lecturer, and/or research scientist. (b) Employees hired on or after August 1, 1998, as librarians with academic rank as well as intercollegiate coaches, with or without academic rank. (c) Employees hired on or after July 1, 2001, in the following categories: (1) an intern or resident in training at the University of Mississippi Medical Center or the College of Veterinary Medicine at Mississippi State University under a teaching program at such institution, (2) a post doctoral assistant/fellow at any Institution, or (3) a research scientist with or without academic rank whose specific assignments customarily include conducting research at any Institution. (d) Deans, associate deans, assistant deans, and executive officers of academic departments (chairmen, head or the equivalent) if their principal activity is instructional. (e) Teaching Positions do not include student teachers or research assistants. Administrative Faculty Positions include: (a) Persons whose assignments require primary (and major) responsibility for management of the Institution or a customarily recognized department. Assignments require the performance of work directly related to management policies or general business operations of the Institution, department, or subdivision. It is assumed that assignments in this category customarily and regularly require the incumbent to exercise discretion and independent judgment and to direct the work of others. (b) The administrative faculty category is generally limited to officers holding such titles as president, vice president, and dean as well as officers subordinate to any of these administrators with such titles as associate dean, assistant dean, or executive officer of

academic departments, (chairmen, head or the equivalent) if their principal activity is administrative. (c) Employees hired on or after August 1, 1998, as administrators with significant budgetary authority, including, but not limited to, athletic directors, shall be deemed to hold Administrative Faculty Positions. 2.13 Employee “Employee” means any person employed by the Institution as a common law employee. 2.14 Fund Sponsor “Fund Sponsor” means a life insurance company licensed to do business in the State of Mississippi, mutual fund company, or other company offering similar investments, or a subsidiary of, or a company affiliated with, or under common management with, such a company that provides funding vehicles available to participants under this Plan as designated by the Board. 2.15 Funding Vehicles “Funding Vehicles” means tax-deferred annuities, fixed or variable in nature or a combination thereof, mutual fund shares, or other similar investment products approved by the Board, issued for the purpose of funding accrued benefits under this Plan. 2.16 Institution “Institution” means any of the State Institutions of Higher Learning included in Miss. Code Ann. Section 37-101-1, (1972, as amended), namely: Alcorn State University Delta State University Jackson State University Mississippi State University Mississippi University for Women Mississippi Valley State University University of Mississippi University of Mississippi Medical Center University of Southern Mississippi Any other of like kind which may hereafter be established by the State 2.17 Institution Plan Contributions “Institution Plan Contributions” means contributions by the Institutions under this Plan, as required by Article IV. 2.18 Limitation Year “Limitation Year” means the period beginning on July 1 of each year and ending on June 30 of the next succeeding year. 2.19 Normal Retirement Age “Normal Retirement Age” is age 60 provided a Participant hired before July 1, 2007, has completed four (4) or more full years of participation in the Plan, or age 60 provided a Participant hired on or after July 1, 2007, has completed eight (8) or more full years of participation in the Plan, or when a Participant has completed 25 full years of participation in the Plan regardless of age or as otherwise provided in Miss. Code Ann. Section 25-11-111 (1972, as amended). 2.20 Participant “Participant” means any Employee of the Institution who participates in the Plan in accordance with Article III.

2.21 Participant Plan Contributions “Participant Plan Contributions” means the contributions by a Participant under this Plan, as required by Article IV. Participant Plan Contributions are designated by the Institution as being made by the Institution in lieu of Plan contributions by the Participant. Furthermore, the pick-up amounts cannot be received directly by the Participants in accordance with Code Section 414(h)(2). 2.22 Plan “Plan” means the Optional Retirement Plan for Institutions of Higher Learning in the State of Mississippi as contained herein or as duly amended. 2.23 Plan Contributions “Plan Contributions” means contributions by the Institution and the Participant under this Plan as required by Article IV. 2.24 Plan Entry Date “Plan Entry Date” means the later of the effective date of the Plan or the date on which an Employee becomes an Eligible Employee. 2.25 Plan Year “Plan Year” means the 12 consecutive month period beginning on July 1 and ending on June 30. 2.26 Termination of Employment “Termination of Employment” means the complete severance of employment by resignation, dismissal, discharge, or retirement. 2.27 Trust “Trust” means and refers to the legal entity and the legal relationship created by Section 1 of Article 1 and pursuant to Article XII. Consistent with Code Section 401(a)(2), the Trust must be solely for purposes of the Plan and consistent with Section 1 of Article 1 and Article XII. 2.28 Trustee “Trustee” means the Board of Trustees of the Public Employees’ Retirement System of Mississippi. 2.29 Years of Participation “Years of Participation” means any year of service after participation in the Plan begins and during which Institution and Participant contributions are made, for a period of not less than the full school year or the full fiscal year as applicable for the position. 2.30 Valuation Date The date or dates provided in the Funding Vehicles; provided that, if a Funding Vehicle does not provide for a valuation date, the Valuation Date for the assets in that Funding Vehicle shall be the last day of the Plan Year. The Plan’s investments will be valued on each Valuation Date.

ARTICLE III ELIGIBILITY FOR PARTICIPATION

3.1 Participation In lieu of participation in the Public Employees' Retirement System of Mississippi (PERS), Eligible Employees may elect to begin participation in this Plan on the Plan Entry Date. Such elections, which are irrevocable, must be made no later than 30 days following date of initial employment in an ORP-eligible position. Any person electing to participate in the Plan shall be ineligible for membership in PERS so long as he or she is employed in a position for which the Plan is available. However, should a participant in an ORP-eligible position be simultaneously employed in a PERS-eligible position with an entity other than an Institution, that person will participate in both the Plan and PERS so long as the qualifications for participation in each are met. A Participant transferred or reclassified to a position that does not qualify for participation in this Plan will cease to participate in the Plan. Where an Employee covered under PERS in a position other than one as defined under Section 2.12 of the Plan is employed by the Institutions after July 1, 1990, in an ORP-eligible position, such Employee would be entitled to the option to elect to join the Plan. An Eligible Employee covered under PERS prior to July 1, 1990, who terminates employment with an Institution and who is reemployed by an Institution after a valid Break in Service as defined in Section 2.6 of the Plan may elect to participate in the Plan, provided the Eligible Employee has not retired from the Public Employees’ Retirement System of Mississippi. 3.2 Notification The Institution will notify each Eligible Employee when participation in the Plan begins. Each Participant is entitled to the benefits and is bound by all of the terms, provisions, and conditions of this Plan, including any and all amendments which from time to time may be adopted, including the terms, provisions and conditions of any contract and/or certificate under the Plan. 3.3 Enrollment in Plan upon Initial Employment in an ORP-eligible Position To participate in this Plan, an individual initially employed in an ORP-eligible position on or after July 1, 1990, shall within 30 days of employment complete and return to the employing Institution the following: (1) Form 4E, Optional Retirement Plan Election/Vendor Selection; (2) Form 4S, Vendor Selection Change; and (3) the appropriate enrollment form(s) for the Fund Sponsor(s) and Funding Vehicle(s) selected. If an individual initially employed in an ORP-eligible position on or after July 1, 1990, does not return the appropriate Election Form and Vendor Selection Form to the employer within 30 days, he or she shall become a member of the Public Employees' Retirement System of Mississippi (PERS) in accordance with Miss. Code Ann. Section 25-11-101 et seq. (1972, as amended). An election to participate in the Plan shall be irrevocable. The election shall be in writing and filed with the employing Institution, or as otherwise provided by the Board. 3.4 Reemployment Once an Eligible Employee has irrevocably elected to participate in the Plan, the Eligible Employee must once again participate in the Plan upon any subsequent reemployment in a Plan- eligible position. An individual reemployed in an ORP-eligible position shall complete and return

to the employing Institution within 30 days of reentry into employment in an ORP-eligible position (1) Form 4S, Vendor Selection Change, and (2) the appropriate enrollment form(s) for the Fund Sponsor(s) and Funding Vehicle(s) selected. If an individual reemployed in an ORP- eligible position does not return the Vendor Selection Form to the employer within 30 days of reentry into employment in an ORP-eligible position, his or her previous Vendor Selection Form shall be reactivated. Moreover, any Eligible Employee drawing a monthly retirement allowance from the Public Employees’ Retirement System of Mississippi, who is subsequently employed in a Plan-eligible position must comply with the reemployment limitations as they may be amended from time to time as set forth in Miss. Code Ann. Section 25-11-127 (1972, as amended), unless such retirement allowance is terminated and the Employee returns to PERS-covered employment. 3.5 Cessation of Active Participation A Participant shall no longer continue to contribute to the Plan if: (a) he or she assumes a position in state service other than as an Employee of an Institution; (b) he or she is retired or terminated from employment with the Institution; (c) he or she is transferred or reclassified to a position that does not qualify for participation in this Plan; or (d) the Plan is terminated. Where a Participant in the Plan accepts a position that is not eligible for the Plan, that individual’s participation in the Plan will be suspended during the period in which the individual occupies a position for which participation in the Plan is not available. The individual’s participation in the Plan will recommence, by virtue of the election made at the time of initial employment in an ORP-eligible position, when the individual again occupies a position for which participation in the Plan is available.

ARTICLE IV PLAN CONTRIBUTIONS

4.1 Plan Contributions The Institution will make Institution Plan Contributions monthly during years of participation in accordance with the schedule set forth below except as the same may hereafter be changed by statute, regulation, or termination of the Plan. Pursuant to Miss. Code Ann. § 25-11-411, (1972, as amended) the Board is authorized to deduct a fee of up to two-tenths percent (0.20%) of the Participant’s Compensation to defray the cost of administering the plan. The Participant’s contribution of 9.00% of Compensation, which is picked-up by the Institution, shall be credited to the Participant’s account. For legacy Participants initially hired before July 1, 2025, the Institution shall contribute 14.90% of the Participant’s Compensation to be credited to the Participant’s account. In addition, the Institution shall contribute 3.80% of the Participant’s Compensation to PERS for application to the accrued liability contribution fund and 0.20% of the Participant’s Compensation to PERS for an administrative fee. For Participants initially hired on or after July 1, 2025, the Institution shall contribute up to 9.00% of the Participant’s Compensation to be credited to the Participant’s account. In addition, the Institution shall contribute 9.70% of the Participant’s Compensation to PERS for application to the accrued liability contribution fund and 0.20% of the Participant’s Compensation to PERS for an administrative fee. The Institution may make additional contributions to the Participant’s accounts up to the maximum amount allowable under federal law. Any changes to the employer contribution rate shall be adopted by the Institution no more than annually and shall be effective on July 1 following the adoption and notification to the Board.

Employer and Employee Plan Contributions as a Percentage of Compensation By the Participant By the Institution Total 9.00% 18.90% 27.90%

Legacy Employees Initially Hired before July 1, 2025 Allocation of 18.90% Employer Contribution Administrative Fee % to PERS UAAL % to Participant’s Account 0.20% of Compensation 3.80% of Compensation 14.90% of Compensation

Participants Initially Hired on or after July 1, 2025 Allocation of 18.90% Employer Contribution Administrative Fee % to PERS UAAL % to Participant’s Account 0.20% of Compensation 9.70% of Compensation 9.00% of Compensation

In no event will Compensation taken into account under the Plan exceed the limit of Code Section 401(a)(17) as such amount may be adjusted by the Secretary of Treasury from time to time.

All Plan contributions are fully vested and nonforfeitable. Plan contributions during educational, maternity and sick leave are provisional on the continuation of salary or Compensation by the employing Institution. 4.1(a) Contributions during Qualified Military Service Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to Qualified Military Service will be provided in accordance with Code Section 414(u)(5). A Participant shall be allowed to make Participant Plan Contributions, on an after-tax basis, for each year of Qualified Military Service in any amount up to the maximum Participant contributions the Participant would have been eligible to contribute had he not been in Qualified Military Service based on his compensation as herein defined, provided such Participant entered such Qualified Military Service directly from the employ of the Institution and was reemployed by the Institution immediately following discharge from such Qualified Military Service. The Participant shall be required to contribute such make-up Participant Plan Contributions during the period which begins on the date of the Participant’s reemployment with the Institution and not exceeding three (3) times the Participant’s Qualified Military Service; provided however, that in no event shall such period exceed five (5) years. If the Participant makes the required Participant Plan contribution as noted above, an Institution Plan Contribution shall be made for any eligible Participant for each year of Qualified Military Service in an amount equal to the amount the Participant would have been credited had he not been in Qualified Military Service based on his compensation as herein defined. A Participant who is in Qualified Military Service shall be treated as receiving compensation during such period of Qualified Military Service equal to the compensation the Participant would have received during such period if the Participant were not in Qualified Military Service, determined based on the rate of pay the Participant would have received from the Institution but for absence during the period of Qualified Military Service. Any Institution Plan Contributions made pursuant to this Section shall not be subject to any otherwise applicable limitations contained in Code Section 404(a), 402(g), or 415 with respect to the year in which the Institution Plan Contributions are made; however, such Institution Plan Contributions shall be subject to such limitations with respect to the year to which the Institution Plan Contributions relate. Qualified Military Service means any service in the uniformed services (as defined in Chapter 43, Title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such services. 4.2 Allocation of Plan Contributions Plan contributions to the Participant’s account shall be forwarded by the Institution to the Fund Sponsor of the Funding Vehicle(s) selected by a Participant and may be allocated by the Participant to one or more Funding Vehicles in whole-number percentages. At least as frequently as once a month a Participant may change his or her allocation of future Plan contributions to such Funding Vehicle(s) of a Fund Sponsor. A Participant may direct contributions to more than one Fund Sponsor. A Participant may change Fund Sponsors quarterly, and such changes are effective January 1, April 1, July 1, and October 1 of each year if the correct form is received by the date specified by the Institution. 4.3 Statements The Institution will determine the total amount of contributions to be made for each Participant from time to time on the basis of its books and records and in accordance with the provisions of this Article. When each contribution payment is made by the Institution, the Institution will

prepare a statement showing the name of each Participant and the portion of the payment which is made for him or her and will deliver a copy of the statement to the appropriate Fund Sponsor(s) with the contributions payment. 4.4 Record Maintenance Records for each Participant under this Plan are maintained on a calendar year basis. At least once a quarter the Fund Sponsor(s) will send each Participant a report summarizing the status of his or her Accumulation Account(s) as of the end of that current quarter. Similar reports or illustrations may be obtained by a Participant upon Termination of Employment or at any other time by writing directly to the Fund Sponsor(s). 4.5 Limitations Notwithstanding anything to the contrary contained in this Plan, the obligation of the Institution to make Institution Plan Contributions is subject to the provisions of Article X relating to the amendment and termination of the Plan, provided that no amendment or termination will affect any obligation of the Institution to make Institution Plan Contributions with respect to Compensation earned by Participants prior to the date of amendment or termination. 4.6 Reversion All contributions and earnings thereon credited to the Plan and/or a Participant’s Accumulation Account shall be irrevocable except as provided herein and may only be used for the exclusive benefit of the Participant and his or her designated Beneficiaries. Under no circumstances or conditions will any Plan Contributions revert to, be paid to, or inure to the benefit of the Institution, directly or indirectly. However, erroneous Plan Contributions will be corrected and returned by the Fund Sponsor to the Institution no later than 30 days after notification of the error if such correction and return can be completed within one year of the erroneous contributions. In any event, any correction made under this section shall be made in accordance with the Internal Revenue Service Employee Plans Compliance Resolution System. 4.7 Maximum Contribution Notwithstanding anything contained in this Plan document to the contrary, the total annual additions made on behalf of any Participant for any year will not exceed the amount permitted under Code Section 415. Notwithstanding the foregoing, the otherwise permissible annual contributions for any Participant under this Plan may be further reduced to the extent necessary to prevent disqualification of the Plan under Code Section 415. If the annual additions exceed the limitations under Code Section 415, the failure to limit annual additions may be corrected in any manner permitted by the Internal Revenue Service under its Employee Plans Compliance Resolution System. If the limitations are exceeded because the Participant is also participating in another Plan required to be aggregated with this Plan for the purposes of Code Section 415, then the extent to which annual contributions under this Plan will be reduced, as compared with the extent to which annual benefits or contributions under any other plans will be reduced, will be determined by the Institution in a manner as to maximize the aggregate benefits payable to the Participant from all plans. If the reduction is under this Plan, the Institution will advise affected Participants of any additional limitation on their annual contributions required by this paragraph.

ARTICLE V FUND SPONSORS/FUNDING VEHICLES

5.1 Fund Sponsors/Funding Vehicles Plan contributions are invested in one or more Funding Vehicles available to Participants under this Plan. These Funding Vehicles, unless restricted by law, may include collective investment trusts or common group trusts that provide for the pooling of assets of employee benefits trusts, as permitted under Revenue Rulings 81-100 and 2011-1, Notice 2012-6, Revenue Ruling 2014- 24, or subsequent guidance, and that are operated or maintained exclusively for the commingling and collective investment of monies, provided that the funds in the group trust consist exclusively of trust assets held under plans qualified under section 401(a) of the Internal Revenue Code, individual retirement accounts that are exempt under section 408(e) of the Internal Revenue Code, eligible governmental plans that meet the requirements of section 457(b) of the Internal Revenue Code, and governmental plans under section 401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes a custodial account or separate tax-favored account maintained by an insurance company that is treated as a trust under section 401(f) or under section 457(g)(3) of the Internal Revenue Code. Any collective or common group trust to which assets of the Plan are transferred shall be adopted by the Board as part of the Plan by executing appropriate participation, adoption agreements, and/or trust agreements with the group trust's trustee. The separate account maintained by the group trust for the Plan shall not be used for, or diverted to, any purpose other than for the exclusive benefit of the members and beneficiaries of the Plan. For purposes of valuation, the value of the separate account maintained by the group trust for the Plan shall be the fair market value of the portion of the group trust held for the Plan, determined in accordance with generally recognized valuation procedures. The Board shall periodically monitor and evaluate the available Fund Sponsors and Funding Vehicles as well as the appropriateness of continued offerings by the Plan. The Board shall determine whether to add additional Funding Vehicles and/or to terminate Funding Vehicles that are determined to be no longer appropriate for offering.

5.2 Fund Transfers Subject to a Funding Vehicle's rules for transfers and in accordance with the provisions of the Code for maintaining the tax deferral of the Accumulation Account(s), a Participant may specify that a part or all of his or her Accumulation Account in one Funding Vehicle may be transferred to another Funding Vehicle(s) of the Fund Sponsor or the Funding Vehicle(s) of another Fund Sponsor. Transfers between Fund Sponsors are subject to each Fund Sponsor's rules for such transfers.

ARTICLE VI VESTING

6.1 Participant Plan Contributions Amounts attributable to Participant Plan Contributions shall at all times be nonforfeitable. 6.2 Institution Plan Contributions Amounts credited to the Participant account derived from Institution Plan Contributions shall be nonforfeitable when such Institution Plan Contributions are made.

ARTICLE VII BENEFITS

7.1 Retirement Benefits Following attainment of Normal Retirement Date or other Termination of Employment at any age and subject to any applicable penalties and tax, a Participant may elect to receive benefits under any of the options set forth in Section 7.4 and in the contracts between the Fund Sponsor(s) and Participant and/or the Trustee. In no case shall any distribution be made prior to Termination of Employment. 7.2 Death and Disability Benefits In the event a Participant terminates from employment due to disability or dies prior to commencement of retirement benefit payments, the full current value of the vested amount in the Accumulation Account(s) is then payable to the Participant or to the Participant’s Beneficiary or Beneficiaries as named by the Participant, under one of the options offered by the Fund Sponsor(s). In no case shall any distribution be made prior to Termination of Employment. 7.3 Application for Benefits Procedures for receipt of benefits are initiated by contacting the Fund Sponsor(s). Benefits provided by Funding Vehicles or contract(s) to which Plan contributions have been applied will be payable by the Fund Sponsor(s) upon receipt of a request for benefits, and applicable supporting documentation, which the Fund Sponsor(s) determines to be in good order. The necessary forms will be provided to the Participant, the surviving spouse, or the Beneficiary by the Fund Sponsor(s). A representative of the Institution, or its designee, must approve all distributions of funds for the payment of benefits from the Plan, including rollover distributions, surrenders, or other forms of distribution/payment. The application process may be handled in writing or by electronic means.

7.4 Distribution Requirements The requirements of this Section apply to any distribution of a Participant's Accumulation Account(s). Such distributions will in all cases be made in accordance with a good faith interpretation of Code Section 401(a)(9). (a) Limits on Settlement Options. Distributions may only be made over one of the following periods (or a combination thereof): i) The life of the Participant, ii) The life of the Participant and a designated Beneficiary, or iii) A period certain not extending beyond the joint and last survivor life expectancy of the Participant and the designated Beneficiary, or iv) Lump sum, subject to provision of applicable Funding Vehicle(s), or v) Any other distribution set forth in the contracts between the Fund Sponsor(s) and Participant and/or the Trustee. Notwithstanding anything contained herein to the contrary, the Plan shall in all events commence distribution of the interest of each Participant in accordance with this section not later than April 1 of the calendar year following the calendar year in which the Participant attains age seventy- two (72) for those Participants who were born on or after July 1, 1949 or age seventy and one- half (70 ½) for those Participants who were born on or before June 30, 1949, or in the calendar year in which he retires, whichever is later, but in all instances distribution shall occur in accordance with a good faith interpretation of Code Section 401(a)(9), including the minimum distribution incidental death benefit requirements of Treasury Regulation 1.401(a)(9)-2. The life

expectancy of a Participant and the Participant’s spouse (other than for a life annuity) may be redetermined annually at the Participant’s election. If a distribution is required to begin according to Section 7.4(a) and the Participant has not filed a claim by the date that is sixty (60) days before the Participant’s required beginning date as required in Code Section 401(a)(9), the Fund Sponsor shall direct payment according to the automatic payout option provided by the applicable Funding Vehicle(s), or, to the extent not so provided, as a lump sum distribution. (b) Death Distribution Provisions for deaths before January 1, 2022. Upon death of the Participant, the following distribution provisions will take effect: i) If the Participant dies after distribution of his or her vested Accumulation Account(s) has begun, the remaining portion of the Accumulation Account will continue to be distributed at least as rapidly as under the method of distribution being used prior to the participant’s death. ii) If the Participant dies before distribution of his or her Accumulation Account(s) begins, the Participant’s entire Accumulation Account will be distributed no later than five years after the Participant's death except to the extent that an election is made to receive distributions in accordance with (1) or (2) below: (1) If any portion of the Participant’s Accumulation Account(s) is payable to a designated Beneficiary, distributions may be made in substantially equal installments over the life or life expectancy of the designated Beneficiary beginning no later than one year after the Participant’s death. (2) If the designated Beneficiary is the Participant's surviving spouse, the date distributions are required to begin in accordance with (1) above must not be later than the date on which the Participant would have attained age 70 ½ (age seventy-two (72) with respect to a Participant who would have attained age seventy and one-half (70 ½) after December 31, 2019), and if the spouse dies before payments begin, subsequent distributions will be made as if the spouse had been the Participant. (3) If a distribution is required to begin to a Beneficiary and the Beneficiary has not filed a claim by the date that is sixty (60) days before the date required by Code Section 401(a)(9), the Fund Sponsor shall direct payment according to the automatic payout option provided by the applicable Funding Vehicle(s), or, to the extent not so provided, as a lump sum distribution. (c) Death Distribution Provisions for deaths on or after January 1, 2022. Upon death of the Participant, the following distribution provisions will take effect: (i) If the Participant dies before the distribution of his or her entire account (regardless of whether any distributions had begun before the Participant's death) and the Participant has a designated Beneficiary: (1) The entire Participant Account shall be distributed to the designated Beneficiary by December 31 of the calendar year containing the tenth anniversary of the Participant's death. (2) Notwithstanding paragraph (1), if the designated Beneficiary is an Eligible Designated Beneficiary, then the Eligible Designated Beneficiary may elect for the Participant's Account(s) to be distributed (A) by December 31 of the calendar year containing the tenth (10th) anniversary of the Participant's death, or (B) beginning no later than December 31 of the calendar year immediately following the calendar year in which the Participant died, over the life of the Eligible Designated Beneficiary or over a period not exceeding the life expectancy of the Eligible Designated Beneficiary. If the Eligible Designated Beneficiary is the surviving spouse, payment

under item (B) is not required until the later of December 31 of the calendar year immediately following the calendar year in which the Participant died or December 31 of the calendar year in which the Participant would have attained age seventy and one-half (70½) (age seventy-two (72) with respect to a Participant who would have attained age seventy and one-half (70½) after December 31, 2019). If the Eligible Designated Beneficiary does not elect a method of distribution as provided above, the Participant's Account(s) shall be distributed in accordance with item (B). (3) Upon either (A) the death of an Eligible Designated Beneficiary before distribution of the Participant's entire account or (B) the attainment of the age of majority for an Eligible Designated Beneficiary who is a minor child under subsection 7.4(b)(iii), paragraph (2) shall no longer apply, and the remainder of the account shall be distributed under paragraph (1). (ii) If the Participant dies before distributions of his or her account begins and the Participant has no designated Beneficiary, the Participant's account under the Plan shall be distributed by December 31 of the calendar year containing the fifth (5th) anniversary of the Participant's death. If the Participant dies after distribution of his or her account begins and the Participant has no designated Beneficiary, any remaining portion of the account shall continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the Participant's death. (iii) For purposes of this subsection, an "Eligible Designated Beneficiary" shall mean designated beneficiary who, as of the date of the death of the Participant, is: (A) the surviving spouse of the Participant; (B) a child of the Participant who has not reached the age of majority; (C) disabled within the meaning of Code Section 72(m)(7); (D) chronically ill within the meaning of Code Section 7702B(c)(2) (except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature); or (E) any other individual who is not more than ten (10) years younger than the Participant. Notwithstanding the preceding, a child described in (B) above shall cease to be an Eligible Designated Beneficiary as of the date he or she reaches the age of majority. (d) A Participant or Beneficiary who would have been required to receive required minimum distributions in 2020 (or paid in 2021 for the 2020 calendar year for a Participant with a required beginning date of April 1, 2021) but for the enactment of Code Section 401(a)(9)(I) (“2020 RMDs”), and who would have satisfied that requirement by receiving distributions that are either (1) equal to the 2020 RMDs, or (2) one or more payments (that include the 2020 RMDs) in a series of substantially equal periodic payments made at least annually and expected to last for the life (or life expectancy) of the participant, the joint lives (or joint life expectancies) of the participant and the participant’s designated beneficiary, or for a period of at least 10 years (Extended 2020 RMDs), will not receive those distributions for 2020 unless the Participant or Beneficiary elects to receive such distributions. Further, if provided by the Funding Vehicle or contracts, the 2020 RMD will be treated as eligible rollover distributions. 7.5 Eligibility for Health Insurance Coverage at Retirement To the extent a Participant otherwise meets the State and School Employees’ Life and Health Insurance Plan’s eligibility requirements to participate in such plan as a retiree of a Mississippi retirement plan, retirees of the Plan are eligible to continue participation in the State and School

Employees’ Life and Health Insurance Plan under the same terms and conditions as retirees of the Public Employees’ Retirement System of Mississippi. 7.6 Effect of Unused Leave at Retirement or Termination of Employment If, at retirement or Termination of Employment, a Participant in the Plan has unused leave, then the Participant may be paid for any such unused leave to the extent allowed by state law. Appropriate Institution and Participant Plan Contributions shall be made to the Plan for such lump sum payment of unused leave in accordance with Miss. Code Ann. Section 25-11-103(f) (1972, as amended). Where an employee has earned and has been reported for the maximum annual allowable earnings, he or she may be paid for up to 30 days of unused leave in accordance with the leave laws of the State of Mississippi; however, contributions shall not be withheld on any such lump sum leave payment resulting in the earnings for the year which exceed the maximum allowable under the Plan for the year or a proportionate share of a year, whichever is applicable. Any remaining unused, uncompensated leave lapses upon retirement or Termination of Employment. 7.7 Direct Rollover (a) Consistent with Code Section 401(a)(31), a Participant shall be permitted to elect to have any “eligible rollover distribution” transferred directly to an “eligible retirement plan” specified by the Participant. The Plan provisions otherwise applicable to distributions continue to apply to the direct transfer option. The Participant shall, in the time and manner prescribed, specify the amount to be directly transferred and the “eligible retirement plan” to receive the transfer. Any portion of a distribution which is not transferred shall be distributed to the Participant. For purposes of this Section, the term “eligible rollover distribution” means any distribution of the balance to the credit of the Participant other than: (a) a distribution of substantially equal periodic payments over the life or life expectancy of the Participant (or joint life or joint life expectancies of the Participant and the designated Beneficiary) or, (b) a distribution over a specified period certain of ten (10) years or more. Amounts required to be distributed under Code Section 401(a)(9) are not eligible rollover distributions. The direct transfer option described in subsection (a) applies only to eligible rollover distributions which would otherwise be includible in gross income if not transferred. For purposes of the direct rollover provision of this Plan, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Code Sections 408(a) or (b), or to a qualified defined contribution plan described in Code Sections 401(a) or 403(a), or on or after January 1, 2007, to a qualified defined benefit plan described in Code Section 401(a) or to an annuity contract described in Code Section 403(b), that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. (b) For purposes of this Section, the term “eligible retirement plan” means an individual retirement account as described in Code Section 408(a), an individual retirement annuity as described in Code Section 408(b), an annuity plan as described in Code Section 403(a), or a qualified retirement plan as described in Code Section 401(a) which is exempt from tax under Code Section 501(a) and which accepts rollover distributions. Transfers under this section shall not be considered assignments under Section 8.1. An eligible retirement plan shall also mean an annuity contract described in Code Section 403(b) and an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. Effective January 1, 2008,

“eligible retirement plan” may also include a Roth IRA as described in Code Section 408(A). Effective for distributions made after December 18, 2015, an eligible retirement plan includes a SIMPLE IRA as described in Code Section 408(p), provided that the rollover contribution is made after the two-year period beginning on the date the distributee first participated in any qualified salary reduction arrangement maintained by the distributee's employer under Code Section 408(p)(2), as described in Code Section 72(t)(6). The definition of “eligible retirement plan” shall also apply in the case of a distribution to a surviving spouse. The election described in subsection (a) also applies to the surviving spouse after the Participant’s death. A distribution of all or any portion of the balance to the credit of a deceased Participant payable to a non-spouse Beneficiary is also qualified as an eligible rollover distribution. However, a non- spouse Beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution and the account or annuity will be treated as an “inherited” individual retirement account or annuity. 7.8 Types of Rollovers Accepted A. Direct Rollovers: The Plan will accept a direct rollover of an eligible rollover distribution from: a) A qualified plan described in Code Section 401(a) or 403(a), including after-tax employee contributions, b) An annuity contract described in Code Section 403(b), excluding after-tax employee contributions, c) An eligible plan under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. B. Participant Rollover Contributions from Other Plans: The Plan will accept a Participant contribution from an eligible rollover distribution from: a) a qualified plan described in Code Section 401(a) or 403(a), b) an annuity contract described in Code Section 403(b) , c) an eligible plan under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. C. Participant Rollover Contributions from IRAs. The Plan will not accept a participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in Code Section 408(a) or 408(b) that is eligible to be rolled over and would otherwise be includible in gross income. The Plan will not accept Participant contributions from a Roth IRA described in Code Section 408A. 7.9 Other Benefits No retirement benefit, death benefit or other benefit under the Plan shall be paid by the State of Mississippi or a participating Institution, or the Board with respect to any Employee selecting and participating in the Plan or with respect to any Beneficiary of that Employee. The benefits payable to a Participant or his or her Beneficiary whose funds are invested with annuity providers shall be governed solely by the terms of the contracts of the issuing insurance company or companies. To the extent that a Participant has invested funds in mutual fund shares, the benefits shall be limited to the value of the shares in the Participant’s account.

ARTICLE VIII GENERAL PROVISIONS AND LIMITATIONS REGARDING BENEFITS

8.1 Nonalienation of Retirement Rights or Benefits All Participant rights, benefits, contributions, contracts, and Accumulation Accounts under the Plan shall not be assignable and shall be exempt from levy, sale, garnishment, attachment, domestic relations orders, or any other process, including any Mississippi state or municipal tax, except to the extent that state income tax may be payable under Chapter 7, Title 27, Mississippi Code of 1972, as amended.

ARTICLE IX ADMINISTRATOR

9.1 Plan Administrator This Plan shall be administered by the Board. 9.2 Authority of the Board The Board, which is the Administrator for purposes of the Miss. Code Ann. Section 25-11-401 et. seq. (1972, as amended), has all the powers and authority expressly conferred upon it herein and further has the sole right to interpret and construe the Plan and to determine any disputes arising under it. In exercising these powers and authority, the Board will at all times exercise good faith, apply standards of uniform application and refrain from arbitrary action. The Board may employ attorneys, agents and accountants as it finds necessary or advisable to assist it in carrying out its duties. The Board may designate a person or persons other than the Board to carry out any of its administrative powers, authority, or responsibilities. Any delegation will be set forth in writing. 9.3 Designation of Executive Director The Executive Director shall execute all documents, contracts, agreements, amendments, and any other document of this Plan for and on behalf of the Board, all as more fully set forth in the PERS Executive Director Standard Operating Procedures Manual.

ARTICLE X AMENDMENT AND TERMINATION

27 Miss. Admin. Code Pt. 240, R. 10.1 Rule 10.1

Amendment and Termination While it is expected that this Plan will continue indefinitely, the Board reserves the right at any time to amend, otherwise modify, or terminate the Plan or to discontinue any further contributions or payments under the Plan as authorized by the Legislature. In the event of a termination of the Plan or discontinuance of Plan contributions, the Board will notify all Participants of the termination. As of the date of complete or partial termination, all Accumulation Accounts will become nonforfeitable to the extent funded. 10.2 Limitation Notwithstanding the provisions of Section 10.1, the following conditions and limitations apply: (a) No amendment will be made that will operate to recapture for the Institution any Plan contributions previously made under this Plan. However, Institution Plan Contributions made in contemplation of approval by the Internal Revenue Service may be returned to the Institution if the Internal Revenue Service fails to approve the Plan. In the event that a Fund Sponsor has funds as a result of an error, it shall pay to the Institution the amount found to be in error within 30 days. (b) No amendment will deprive, take away, or alter any then accrued right of any Participant insofar as Plan contributions are concerned.

ARTICLE XI MISCELLANEOUS

27 Miss. Admin. Code Pt. 240, R. 11.1 Rule 11.1

Plan Non-contractual Nothing contained in this Plan will be construed as a commitment or agreement on the part of any person to continue his or her employment with the Institution, and nothing contained in this Plan will be construed as a commitment on the part of the Institution to continue the employment or the rate of compensation of any person for any period, and all Employees of the Institution will remain subject to discharge to the same extent as if the Plan had never been put into effect. 11.2 Claim of Other Persons The provisions of the Plan will in no event be construed as giving any Participant or any other person, firm or corporation, any legal or equitable right against the Board, the Trustee, an Institution, their officers, employees, or directors, except the rights as are specifically provided for in this Plan or created in accordance with the terms and provisions of this Plan. 11.3 Governing Law Except as provided under federal law, the provisions of the Plan are governed by and construed in accordance with the laws of the State of Mississippi. 11.4 Merger, Consolidation, or Transfers of Plan Assets The Plan will not be merged or consolidated with any other Plan, nor will any of its assets or liabilities be transferred to another Plan, unless immediately after a merger, consolidation, or transfer of assets or liabilities, each Participant would receive a benefit under the Plan that is at least equal to the benefit he or she would have received immediately prior to a merger, consolidation, or transfer of assets or liabilities (assuming in each instance that the Plan had then terminated). 11.5 Contracts The terms of the contracts between the Fund Sponsor(s) and the Institution and/or Participants and any certificates issued to a Participant are a part of the Plan as if fully set forth in the Plan document and the provisions of each are incorporated by reference into the Plan. In cases where there is any inconsistency or ambiguity between the terms of the Plan and those of the contracts and certificates the terms of the contracts/certificates control. 11.6 Requests for Information and Other Claims Procedures Requests for information concerning the annuity contracts, mutual fund shares, or other similar investment products, and their terms, conditions, and interpretations thereof, claims thereunder, any requests for review of such claims and service of legal process may be directed in writing to the Fund Sponsor. If a written request is denied, the Fund Sponsor shall within a reasonable period of time provide a written denial to the Participant. It will include the specific reasons for denial, the provisions of the contracts on which the denial is based, and how to apply for a review of the denied claim. Where appropriate, it will also include a description of any material which is needed to complete or perfect a claim and why such material is necessary. A Participant may request in writing a review of a claim denied by the Fund Sponsor and may review pertinent documents and submit issues and comments in writing. The Fund Sponsor shall provide in writing to the Participant a decision upon such request for review of a denied claim within 60 days of receipt of the request. If special circumstances require a delay on the initial decision on a claim or a review of a denied claim, the Fund Sponsor will notify the Participant within 30 days of the date the claim was

initially submitted or within 60 days of the date a review was requested. The notice will explain the reasons for the delay and when a decision can be expected.

ARTICLE XII TRUST

27 Miss. Admin. Code Pt. 240, R. 12.1 Rule 12.1

Trust A Trust is hereby established under State Law. 12.2 Trust Status All assets held in connection with the Plan, including all amounts of compensation deferred pursuant to the Plan, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property or rights shall be held and invested in trust for the exclusive benefit of Participants and their Beneficiaries under the Plan. No part of the assets and income of the Plan shall be used for, or diverted to purposes other than for the exclusive benefit of the Participants and their Beneficiaries and for defraying reasonable expenses of the Plan. 12.3 Trust Fund Effective February 1, 2009, all amounts of compensation deferred pursuant to the Plan, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property or rights held as part of the Plan, shall be held, managed, invested and distributed as part of the Trust Fund in accordance with the provisions of the Plan. All contributions to the Plan must be transferred by the Employers to the Trust Fund pursuant to Section 4.1. All benefits under the Plan shall be distributed solely from the Trust Fund pursuant to Article VII. 12.4 Trustee The Board is the trustee for assets of the Trust Fund.

Part 250 Hybrid Defined Contribution Plan

27 Miss. Admin. Code Pt. 250 Hybrid Defined Contribution Plan

Title 27: Personnel Part 250: PERS, Hybrid Defined Contribution Plan MISSISSIPPI HYBRID DEFINED CONTRIBUTION RETIREMENT PLAN PLAN DOCUMENT Effective March 1, 2026

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MISSISSIPPI HYBRID DEFINED CONTRIBUTION RETIREMENT PLAN Table of Contents Page ARTICLE I ESTABLISHMENT OF PLAN AND TRUST...........................................................4 1.1 Establishment of Plan ..............................................................................................4 ARTICLE II DEFINITIONS ..........................................................................................................5 2.1 Account Balance ......................................................................................................5 2.2 Accumulation Account ............................................................................................5 2.3 Annual Additions .....................................................................................................5 2.4 Beneficiary ...............................................................................................................5 2.5 Board ........................................................................................................................5 2.6 Code .........................................................................................................................6 2.7 Compensation ..........................................................................................................6 2.8 Covered Position ......................................................................................................6 2.9 Date of Employment or Reemployment ..................................................................6 2.10 Effective Date ..........................................................................................................6 2.11 Eligible Employee ....................................................................................................6 2.12 Employee .................................................................................................................7 2.13 Employer ..................................................................................................................7 2.14 Employer Contribution ............................................................................................7 2.15 Fund .........................................................................................................................7 2.16 Hardship Distribution...............................................................................................7 2.17 Limitation Year ........................................................................................................7 2.18 Participant ................................................................................................................7 2.19 Participant Plan Contributions .................................................................................7 2.20 Participation Agreement ..........................................................................................8 2.21 Plan ..........................................................................................................................8 2.22 Plan Contributions ...................................................................................................8 2.23 Plan Entry Date ........................................................................................................8 2.24 Plan Sponsor ............................................................................................................8 2.25 Plan Year ..................................................................................................................8 2.26 Provider ....................................................................................................................8 2.27 Rollover Contribution ..............................................................................................8 2.28 Severance from Employment ...................................................................................8 2.29 State Service.............................................................................................................9 2.30 Third-Party Administrator .......................................................................................9 2.31 Transfer Contribution...............................................................................................9 2.32 Trust .........................................................................................................................9 ARTICLE III ELIGIBILITY FOR PARTICIPATION ................................................................10 3.1 Participation ...........................................................................................................10

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3.2 Notification ............................................................................................................10 3.3 Reemployment .......................................................................................................10 3.4 Cessation of Active Participation...........................................................................10 ARTICLE IV PLAN CONTRIBUTIONS ....................................................................................11 4.1 Participant Plan Contributions ...............................................................................11 4.2 Employer Contributions .........................................................................................11 4.3 Contributions during Qualified Military Service ...................................................11 4.4 Rollover Contributions and Transfers from Other Eligible Plans .........................12 4.5 Maximum Contribution .........................................................................................13 4.6 Reversion ...............................................................................................................13 4.7 Allocation of Plan Contributions ...........................................................................13 4.8 Fee Paid Officials ...................................................................................................14 ARTICLE V ACCOUNTS AND REPORTS ...............................................................................15 5.1 Participant Account ................................................................................................15 5.2 Statement of Account to Participants .....................................................................15 5.3 Valuation ................................................................................................................15 5.4 Deposits..................................................................................................................15 5.5 Records and Reports ..............................................................................................15 ARTICLE VI VESTING ..............................................................................................................16 6.1 Participant Plan Contributions ...............................................................................16 6.2 Employer Contributions .........................................................................................16 ARTICLE VII INVESTMENT OF CONTRIBUTIONS .............................................................17 7.1 Investment Options ................................................................................................17 7.2 Direction by Participant .........................................................................................17 7.3 Investment Default .................................................................................................17 7.4 Conflicts .................................................................................................................17 7.5 Excessive Trading ..................................................................................................17 7.6 Discontinuance of Investment Option ...................................................................18 ARTICLE VIII BENEFITS ..........................................................................................................19 8.1 When Benefits are Payable ....................................................................................19 8.2 Benefit Payments ...................................................................................................19 8.3 Application for Benefits .........................................................................................19 8.4 Payment Options ....................................................................................................19 8.5 Minimum Distribution Rules .................................................................................20 8.6 Payments to Beneficiary ........................................................................................20 8.7 Distribution for Incompetent or Minor Beneficiary...............................................21 8.8 Location of Participant or Beneficiary Unknown ..................................................22 8.9 Beneficiary Designation.........................................................................................22 8.10 Hardship Distributions ...........................................................................................22 8.11 Direct Rollover.......................................................................................................24 8.12 Effect of Unused Leave at Retirement or Severance from Employment ...............25

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ARTICLE IX ADMINISTRATION .............................................................................................26 9.1 Plan Administrator .................................................................................................26 9.2 Authority of the Board ...........................................................................................26 9.3 Reliance on Information from Employer ...............................................................26 9.4 Payment of Expenses .............................................................................................27 ARTICLE X NONASSIGNABILITY ..........................................................................................28 10.1 Nonassignment .......................................................................................................28 ARTICLE XI AMENDMENT AND TERMINATION ...............................................................29 11.1 Right to Amend Plan ..............................................................................................29 11.2 Nonforfeitable Benefits upon Termination ............................................................29 ARTICLE XII MISCELLANEOUS .............................................................................................30 12.1 Compliance with Code Section 401(a) ..................................................................30 12.2 Assumption of Risk................................................................................................30 12.3 Disputes..................................................................................................................30 12.4 Governing Law ......................................................................................................30 ARTICLE XIII TRUST ................................................................................................................31 13.1 Trust .......................................................................................................................31 13.2 Trust Status ............................................................................................................31 13.3 Trust Fund ..............................................................................................................31 13.4 Trustee....................................................................................................................31

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ARTICLE I ESTABLISHMENT OF PLAN AND TRUST 1.1 Establishment of Plan House Bill No. 1, enacted by the Legislature of the State of Mississippi, established the Hybrid Defined Contribution Plan (the “Plan”) as of March 1, 2026. This Plan document sets forth the provisions of this Defined Contribution (Profit Sharing) Retirement Plan, which is a governmental plan as defined in Internal Revenue Code Section 414(d), and establishes a Trust for the Plan assets. The Plan is intended to be a qualified, defined contribution plan under Code Section 401(a). The Plan and Trust are established for the exclusive benefit of Participants and their Beneficiaries. Consistent with Code Section 401(a)(2), no amount held under the Plan will ever inure to the benefit of the Plan Sponsor, any Employer, or any successor of any of them, and all Plan investments and amounts will be held for the exclusive purpose of providing benefits to the Plan’s Participants and their Beneficiaries. Notwithstanding anything in the Plan to the contrary, it will be impossible at any time before the satisfaction of all liabilities to Participants and Beneficiaries for any part of the Plan assets to be used for or diverted to purposes other than for the exclusive benefit of Participants and Beneficiaries, except that payment of taxes and administration expenses may be made from the Plan assets as provided by the Plan or permitted by applicable law. Plan Contributions are invested, at the direction of each Participant, in one or more investment options available to Participants under the Plan. Required Participant Plan Contributions are designated picked-up by the Employer so as not to be included in Participants’ gross income for federal tax purposes as provided by Code Section 414(h)(2).

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ARTICLE II DEFINITIONS 2.1 Account Balance “Account Balance” means the total Participant Plan Contributions made by the Participant, Employer Contributions, any Rollover Contribution amounts and Transfer Contribution amounts under Section 4.4, and any investment gains or losses thereon. 2.2 Accumulation Account “Accumulation Account” means the separate account established for each Participant to which will be credited all Plan Contributions, less expense charges, plus earnings thereon. 2.3 Annual Additions “Annual Additions” means the annual addition as defined in Code Section 415(c) and as modified in Code Sections 415(l)(1) and 419A(d)(2). In general, Code Section 415(c) defines the annual addition as the sum of the following amounts credited to a Participant’s accounts for the Limitation Year under this Plan and any other defined contribution plan maintained by the Employer: (a) Participant Plan Contributions; (b) Employer Contributions; (c) forfeitures; (d) amounts allocated to an individual medical account, as defined in Code Section 415(l)(2), which is part of a pension or annuity plan maintained by the Employer, as applicable; and (e) mandatory employee contributions to a defined benefit plan maintained by the Employer, unless the contributions are picked up by the Employer pursuant to Code Section 414(h)(2). 2.4 Beneficiary “Beneficiary” means the individual, entity, trustee, or estate designated by the Participant to receive benefits or otherwise entitled to receive benefits that may become payable hereunder after the death of such Participant. 2.5 Board “Board” means the Public Employees’ Retirement System of Mississippi (PERS) Board of Trustees.

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2.6 Code “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific Code Section includes not only the section but any comparable section or sections of any future legislation that amends, supplements, or supersedes the section. 2.7 Compensation “Compensation” means the full amount earned during a fiscal year by an Employee as defined in Miss. Code Ann. Section 25-11-103(1)(k) (1972, as amended) and Board Regulation 65. Such amount shall also include Compensation which is not currently includable in the Participant’s gross income by reason of application of Code Sections 125, 403(b), 414(h)(2), or 457. Compensation includes the following amounts paid following the Participant’s Termination of Employment: (1) amounts that would have been paid in the absence of a Termination of Employment and is regular pay for services (such as regular wages, overtime, or shift differential or other similar Compensation); and (2) amounts that are payment for accrued bona fide sick, vacation, or other leave pursuant to Miss. Code Ann. Section 25-11-103(1)(f) (1972, as amended) that would have been used if employment continued, provided such payments are made by the later of 2 ½ months after Termination of Employment or the last day of the Plan Year that includes the date of the Termination of Employment. Compensation does not include other amounts paid following Termination of Employment, including severance pay or deferred Compensation. 2.8 Covered Position “Covered Position” means any office or any employment covered under PERS in accordance with Miss. Code Ann. Section 25-11-101, et seq. (1972, as amended) and Board Regulation 36. Based on Mississippi Law and Board regulations, the Employer shall determine upon initial employment, and during the course of employment of an Employee who does not meet the criteria for coverage in PERS based on the position held, whether the Employee is or becomes eligible for coverage in PERS based upon any other employment in a covered agency or political subdivision. 2.9 Date of Employment or Reemployment “Date of Employment or Reemployment” means the date of the appointment on which Compensation begins for an Employee in an PERS-eligible Covered Position. 2.10 Effective Date “Effective Date” means March 1, 2026, which is the Effective Date of the Plan. 2.11 Eligible Employee “Eligible Employee” means any Employee hired in a Covered Position. An Eligible Employee is paid regular, periodic Compensation that is subject to payroll taxes, is provided all other Employee benefits and meets the PERS requirements as adopted by the

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Board through regulation. Effective March 1, 2026 and after, participation in this Plan is mandatory for any new Eligible Employee. 2.12 Employee “Employee” means any person legally occupying a position in State Service and includes the Employees of the PERS. An Employee is a person in the service of another where the Employer has the power or right to control and direct the Employee in the material details of how the work is to be performed. Only Employees are eligible for membership in PERS and participation in the Plan. 2.13 Employer “Employer” means the State of Mississippi or any of its departments, agencies, political subdivisions, or instrumentalities from which any Employee receives his or her Compensation. 2.14 Employer Contribution “Employer Contribution” means amounts which may be contributed to the Plan for actively contributing Participants who are Employees of the Employer pursuant to the Employer’s specific Participation Agreement. 2.15 Fund “Fund” means a registered investment company or an insurance company separate account or collective investment fund or group trust or any similar pooled investment under which the value of the holder’s interest is calculated according to the number of shares or units held for the holder’s account. 2.16 Hardship Distribution “Hardship Distribution” means a distribution under Section 8.10.

2.17 Limitation Year “Limitation Year” means the period beginning on July 1 of each year and ending on June 30 of the next succeeding year. 2.18 Participant “Participant” means any Employee who participates in the Plan in accordance with Article III. 2.19 Participant Plan Contributions “Participant Plan Contributions” means the pre-tax, picked-up contributions by a Participant under this Plan, as required by Article IV. Participant Plan Contributions are

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designated by the Employer as being made by the Employer in lieu of Plan Contributions by the Participant. Furthermore, the pick-up amounts cannot be received directly by the Participants in accordance with Code Section 414(h)(2). 2.20 Participation Agreement “Participation Agreement” means the agreement (in the form prescribed by the Board or the Third- Party Administrator), as amended from time to time, entered into by and between the Employer and the Board for any Employer opting to make Employer Contributions. 2.21 Plan “Plan” means the Mississippi Hybrid Defined Contribution Plan as contained herein or as duly amended. 2.22 Plan Contributions “Plan Contributions” means contributions by the Participant and the Employer under this Plan in accordance with Article IV. 2.23 Plan Entry Date “Plan Entry Date” means the later of the Effective Date of the Plan or the date on which an Employee begins employment in a Covered Position. 2.24 Plan Sponsor “Plan Sponsor” means the State of Mississippi or the Mississippi Legislature. 2.25 Plan Year “Plan Year” means the twelve (12) consecutive month period beginning on July 1 and ending on June 30. 2.26 Provider “Provider” means any entity that has been approved by the Board to provide investment options under the Plan. 2.27 Rollover Contribution “Rollover Contribution” means an amount or property received into this Plan under Section 4.4. 2.28 Severance from Employment “Severance from Employment” or “Termination of Employment” means the complete severance of employment by resignation, death, dismissal, discharge, or retirement as

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determined by the Board. Such severance shall mean the absence of any employment in any capacity (Employee or Independent Contractor) with a covered Employer. In the event that a Participant changes his or her employment from the State of Mississippi or any member agency or political subdivision, which is covered by this Plan, to another Employer also covered by this Plan, the Participant is not considered to have satisfied the provisions for a distribution in accordance with Section 8.1(a)(i). The benefits conferred and protected hereunder shall be continued in full force and effect, and the transfer of the Employee from one covered Employer to another shall have no adverse effect upon the Participant rights as pursuant to the Plan. 2.29 State Service “State Service” means all offices and positions of trust or employment in the employ of the state, or any political subdivision or instrumentality of the state that elects to participate in PERS by way of joinder agreement in accordance with Miss. Code Ann. Section 25-11- 105(f) (1972, as amended), including the position of elected fee officials of the counties and their deputies and employees performing public services and any department, independent agency, board or commission, and also including all offices and positions of trust or employment in the employ of joint state and federal agencies administering state and federal funds and service rendered by employees of the public schools. 2.30 Third-Party Administrator “Third-Party Administrator” means the entity with which the Board has contracted to perform such administrative duties as delegated by the Board. 2.31 Transfer Contribution “Transfer Contribution” means an amount or property transferred into this Plan under Section 4.4. 2.32 Trust “Trust” means and refers to the legal entity and the legal relationship created by Section 1.1 of Article 1 and pursuant to Article XIII. Consistent with Code Section 401(a)(2), the Trust must be solely for purposes of the Plan and consistent with Section 1.1 of Article I and Article XIII.

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ARTICLE III ELIGIBILITY FOR PARTICIPATION 3.1 Participation Participation in this Plan is mandatory for any new Eligible Employee in a Covered Position. An Employee is eligible for membership under this Plan on the first day of employment. Such eligibility, however, shall terminate at any time employment with the Employer is terminated. A Participant transferred or reclassified to a position that does not qualify for participation in this Plan will cease to participate in the Plan. 3.2 Notification The Employer will notify each Eligible Employee when participation in the Plan begins. Each Participant is entitled to the benefits and is bound by all of the terms, provisions, and conditions of this Plan, including any and all amendments which from time to time may be adopted, including the terms, provisions and conditions of any contract and/or certificate under the Plan. 3.3 Reemployment Once an Eligible Employee is enrolled in the Plan, the Eligible Employee must once again participate in the Plan upon any subsequent reemployment in a Covered Position. Moreover, any Eligible Employee drawing a monthly retirement allowance from PERS, who is subsequently employed by an Employer must comply with the reemployment limitations as they may be amended from time to time as set forth in Miss. Code Ann. Sections 25-11-126 and 25-11-127 (1972, as amended), unless such retirement allowance is terminated and the Employee returns to active, PERS-covered employment. 3.4 Cessation of Active Participation A Participant shall no longer continue to contribute to the Plan if: (a) he or she is retired or terminated from employment; (b) he or she is transferred or reclassified to a position that does not qualify for participation in this Plan; or (c) the Plan is terminated.

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ARTICLE IV PLAN CONTRIBUTIONS 4.1 Participant Plan Contributions Each Participant shall participate in the 401(a) Plan at a pre-tax contribution rate of five percent (5%) of the Employee’s Compensation. These funds, designated as Participant Plan Contributions, shall be paid by the Employer for all Participants and picked up pursuant to Code Section 414(h)(2) and credited to the Participant’s account. Participants may not elect to receive such Participant Plan Contributions directly instead of having them paid by the Employer to the Plan. All Plan Contributions are fully vested and nonforfeitable. Plan Contributions during personal or medical leave are provisional on the continuation of salary or Compensation by the employing Employer. Participant Plan Contributions shall be remitted to the Third-Party Administrator within five (5) business days following the end of the month in which such amount is withheld from the Compensation of the Participant. As set forth in Board Regulation 14, Section 104, interest shall be assessed to the Employer and applied to any delinquent contributions received fifteen (15) business days or more after the date following the end of the month in which such amount is withheld from the Compensation of the Participant. 4.2 Employer Contributions Employers may elect to contribute an amount up to the maximum pre-tax amount allowable under Code Section 415. Employer Contributions shall be remitted to the Third-Party Administrator within five (5) business days following the end of the month in which such amount is attributable. Any changes to the Employer Contribution rate shall be adopted by the Employer no more than annually and shall be effective on the first day of the Plan Year, following the adoption and notification to the Board. Each Employer shall enter into a Participation Agreement with the Board specifying the amount of Employer Contributions adopted for the Plan Year. As set forth in Board Regulation 14, Section 104, interest shall be assessed to the Employer and applied to any delinquent contributions received fifteen (15) business days or more after the date following the end of the month in which such amount is withheld from the Compensation of the Participant. 4.3 Contributions during Qualified Military Service Notwithstanding any provision of this Plan to the contrary, contributions and benefits with respect to Qualified Military Service will be provided in accordance with Code Section 414(u)(5). A Participant shall be allowed to make Participant Plan Contributions for each year of Qualified Military Service in any amount up to the maximum Participant contributions the Participant would have been eligible to contribute had he or she not been in Qualified Military Service based on his or her Compensation as herein defined, provided such Participant entered such Qualified Military Service directly from the employ of the Employer and was reemployed by the Employer immediately following discharge from such Qualified Military Service. The Participant shall be required to contribute such make- up Participant Plan Contributions during the period which begins on the date of the Participant’s reemployment with the Employer and not exceeding three (3) times the

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Participant’s Qualified Military Service; provided however, that in no event shall such period exceed five (5) years. If the Participant makes the required Participant Plan Contribution as noted above, any eligible Employer Contribution shall be made for any eligible Participant for each year of Qualified Military Service in an amount equal to the amount the Participant would have been credited had he or she not been in Qualified Military Service based on his or her Compensation as herein defined. A Participant who is in Qualified Military Service shall be treated as receiving Compensation during such period of Qualified Military Service equal to the Compensation the Participant would have received during such period if the Participant were not in Qualified Military Service, determined based on the rate of pay the Participant would have received from the Employer but for absence during the period of Qualified Military Service. Any contributions made pursuant to this Section shall not be subject to any otherwise applicable limitations contained in Code Section 404(a), 402(g), or 415 with respect to the year in which the Contributions are made; however, such contributions shall be subject to such limitations with respect to the year to which the contributions relate. Qualified Military Service means any service in the uniformed services (as defined in Chapter 43, Title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such services. 4.4 Rollover Contributions and Transfers from Other Eligible Plans (a) To the extent permitted by the applicable provisions of the Code and regulations issued thereunder, a Participant may contribute to the Plan in cash as a Rollover Contribution a qualified rollover amount from an eligible retirement plan as such terms are defined in Code Sections 402(c)(4) and 402(c)(8)(B), and as permitted by Code Section 408(d)(3); provided that the Third-Party Administrator, in its discretion, determines that the contribution satisfies all applicable requirements of the Code. A Rollover Contribution shall be allocated to the Rollover Contribution account of the Participant as of the date of the contribution. The Participant’s Rollover Contribution account shall be available for distribution at any time at the direction of the Participant, subject to any applicable penalties or other distribution requirements under the Code. (b) To the extent permitted by the applicable provisions of the Code and regulations issued thereunder, a Participant may make a plan-to-plan transfer to this Plan from another qualified plan as provided in this section. Such a transfer is permitted only if the other plan provides for the direct transfer of the Participant’s interest therein to the Plan. The Third-Party Administrator may require in its sole discretion that the transfer be in cash or other property acceptable to the Third-Party Administrator. The Third-Party Administrator may require such documentation from the other plan as it deems necessary to effectuate the transfer and to confirm

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that the other plan is a qualified plan as defined in Section 401(a) of the Code. The amount so transferred shall be credited to the Participant’s Transfer Contribution account and shall be held, invested, accounted for, administered, and otherwise treated in the same manner as a Rollover Contribution, subject to any applicable distribution requirements or limitations under the Code. 4.5 Maximum Contribution Notwithstanding anything contained in this Plan document to the contrary, the total annual additions made on behalf of any Participant for any year will not exceed the amount permitted under Code Section 415. Notwithstanding the foregoing, the otherwise permissible annual contributions for any Participant under this Plan may be further reduced to the extent necessary to prevent disqualification of the Plan under Code Section 415. If the Annual Additions exceed the limitations under Code Section 415, the failure to limit Annual Additions may be corrected in any manner permitted by the Internal Revenue Service under its Employee Plans Compliance Resolution System. If the limitations are exceeded because the Participant is also participating in another Plan required to be aggregated with this Plan for the purposes of Code Section 415, then the extent to which annual contributions under this Plan will be reduced, as compared with the extent to which annual benefits or contributions under any other plans will be reduced, will be determined by the Employer in a manner as to maximize the aggregate benefits payable to the Participant from all plans. If the reduction is under this Plan, the Employer will advise affected Participants of any additional limitation on their annual contributions required by this paragraph. 4.6 Reversion All contributions and earnings credited to the Plan and/or a Participant’s Accumulation Account shall be irrevocable except as provided herein and may only be used for the exclusive benefit of the Participant and his or her designated Beneficiaries. Under no circumstances or conditions will any Plan Contributions revert to or be paid to the benefit of the Employer, directly or indirectly. However, erroneous Plan Contributions will be corrected and returned by the Third-Party Administrator to the Employer no later than thirty (30) days after notification of the error if such correction and return can be completed within one (1) year of the erroneous contributions. In any event, any correction made under this section shall be made in accordance with the Internal Revenue Service Employee Plans Compliance Resolution System. 4.7 Allocation of Plan Contributions Plan Contributions to the Participant’s account shall be forwarded by the Employer to the Third-Party Administrator and may be allocated by the Participant to one (1) or more investment options.

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4.8 Fee Paid Officials For each covered constable, chancery clerk, and circuit clerk, under Miss. Code Ann. Sections 25-11-106 and 25-11-106.1 (1972, as amended), the applicable county shall pay any elective Employer Contribution on direct payroll income as set forth under Section 4.2. If the county elects under Miss. Code Ann. Sections 25-11-106 and 25-11-106.1 (1972, as amended), the applicable county may be responsible for any elective Employer Contribution on fee income and such Employer Contributions shall be received by the Plan from the county no later than April 15 of the following tax year. All retirement contributions due from the Participant and not withheld and submitted to the Board by the applicable county shall be paid by the Participant no later than April 15 of the following year on a post-tax basis. For any retirement contributions not received by April 15, PERS shall certify the delinquency to the applicable county and the county shall withhold any and all payments and fees due to the Participant until such time as the retirement contributions are fully reported and made. Any amounts due and not remitted by April 15 begin accruing interest daily at the rate specified in Board Regulation 43 from April 15 until the date of payment. Any excess Participant Plan Contributions shall be distributed to the Participant after April 15 of the following year with applicable earnings thereon, if any, from April 15 until the date of payment.

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ARTICLE V ACCOUNTS AND REPORTS 5.1 Participant Account The Third-Party Administrator shall maintain a Participant’s Accumulation Account with respect to each Participant, and that account shall be credited with the Participant’s annual deferral for each pay period. The balance of such account shall be adjusted daily to reflect any distribution to the Participant and all interest, dividends, account charges, and changes of market value resulting from the investment of the Participant’s contributions. All Plan records, including individual information, that are maintained by the Third-Party Administrator shall be the exclusive property of the Board. Participant’s Accumulation Account includes any account established under Section 4.4 for Rollover Contributions and Transfer Contributions. 5.2 Statement of Account to Participants A written report of the status of each Participant’s account shall be furnished by the Third- Party Administrator within twenty (20) days after the end of each Plan quarter. All reports to Participants shall be based on the fair market value of investments credited to their accounts as of the reporting dates. Participant reports shall be deemed to have been accepted by the Participant as correct unless written notice to the contrary is received by the Third-Party Administrator within thirty (30) days after the mailing or distribution of a report to the Participant. 5.3 Valuation The Third-Party Administrator and/or the managers of each investment Provider shall value the investments in their Fund each business day based on acceptable industry practices. All daily transactions shall be based on that day’s closing market values. The Third-Party Administrator shall apply such values, including earnings and losses, to appropriate Participant accounts. 5.4 Deposits In all cases, deposits of deferrals shall be treated as actually made only as of the date the funds are accepted as in good order by the Third-Party Administrator. Such deposits received by the Third-Party Administrator after 3:00 p.m. Central Time will be processed on the next business day the New York Stock Exchange is open. 5.5 Records and Reports The Third-Party Administrator shall keep a record of all actions taken and shall keep all other books of account, records, and other data that may be necessary for proper administration of the Plan and shall be responsible for supplying all information and reports to the Internal Revenue Service, Participants, Beneficiaries, and others as required by law.

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ARTICLE VI VESTING 6.1 Participant Plan Contributions A Participant is immediately vested in Participant Plan Contributions made to that Participant’s account. Participant Plan Contributions shall at all times be nonforfeitable. 6.2 Employer Contributions A Participant is immediately, one hundred percent (100%) vested in amounts credited to the Participant account derived from Employer Contributions, and such amounts shall at all times be nonforfeitable.

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ARTICLE VII INVESTMENT OF CONTRIBUTIONS 7.1 Investment Options The Board shall screen and approve any investment option under this Plan for the investment of contributions by Participants or their Beneficiaries. The investment options must be authorized for PERS investment under Miss. Code Ann. Section 25-11-121 (1972, as amended). The Board shall monitor and evaluate at least annually the available investment options, as well as the appropriateness of continued offerings by the Plan. The Board shall determine, in its sole discretion, whether to add additional investment options and/or to terminate options that are determined to be no longer appropriate for offering. The Plan may offer a self-directed brokerage account for additional investment choices. The Plan investments may only be made in the self-directed brokerage account as a transfer of assets from the account balance in the Plan’s investment options. A minimum balance of $2,500 in the Plan’s investment options is required for a Participant or Beneficiary to be eligible to establish and maintain a self-directed brokerage account. Additionally, Plan assets held in a self-directed brokerage account are not eligible for a plan-to-plan transfer. Participants must first move any self-directed brokerage account assets they wish to transfer to another eligible government plan to the Plan’s investment options before a plan- to-plan transfer can be executed. 7.2 Direction by Participant Participants will direct the investment of their Participant accounts among the investment options offered under the Plan. The Employer, Board, and the Third-Party Administrator shall be under no duty to question any investment direction of a Participant or to make suggestions to the Participant regarding such investment, nor shall they be held responsible in any manner for investment loss or depreciation in asset value of any such investment. 7.3 Investment Default In the event a Participant fails to select any investment option upon enrollment in the Plan, the Board shall direct those contributions to the target date fund with a target year closest to the year the Participant will reach age 65. 7.4 Conflicts If any provision of an investment option agreement is not consistent with the Plan provisions, the terms of the Plan shall control. 7.5 Excessive Trading The Third-Party Administrator shall administer any excessive trading policy, and restrictions on such excessive trading, that is applicable.

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7.6 Discontinuance of Investment Option If an investment option ceases to be eligible to receive deferrals under the Plan, the Board may direct that both existing amounts under Participant Accumulation Accounts that were invested with such investment option and any future contributions be transferred to the remaining investment options that are approved to receive deferrals under the Plan.

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ARTICLE VIII BENEFITS 8.1 When Benefits are Payable (a) A Participant Accumulation Account may not be paid to a Participant (or, if applicable, the Beneficiary) until one of the following events has occurred: (i) at least thirty (30) days following the Participant’s Severance from Employment or death; (ii) a Hardship Distribution, within the meaning of and subject to Section 8.10; (b) A Participant Contribution Rollover account shall be paid to a Participant in accordance with Section 4.4. 8.2 Benefit Payments Benefits shall be paid from the Trust in accordance with this Article following one of the events noted in Section 8.1. Benefits payable to a Participant or a Beneficiary shall be based upon the value of the Participant’s account. Payment of benefits under this Plan and Trust shall be made only to the extent of amounts that are available under the Plan as measured by the elections made by the Participant, and no responsibility is assumed for the investments or performance results thereof. The value of any benefit shall be determined by the actual value of the Participant’s account at the time of benefit payment unaffected by an independent or arbitrary standard of calculation with respect thereto. 8.3 Application for Benefits Upon a Participant’s application for benefits, the Third-Party Administrator shall direct the distribution of a Participant account in accordance with this Article VIII. Benefit payments to a Participant or Beneficiary, if applicable, shall be made according to the manner and method of payments as elected by the Participant. Benefit payments to a Participant or Beneficiary shall be made after final contributions are posted to the Participant’s Accumulation Account, or at least thirty (30) days following Severance from Employment. 8.4 Payment Options A Participant or Beneficiary may choose from the following benefit distribution options subject to the requirements of Code Section 401(a): (a) Lump Sum Payment; (b) Partial Lump Sum Payment;

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(c) Systematic Withdrawal Option; (d) A direct rollover to an eligible retirement plan; or (e) Any other form approved by the Board. 8.5 Minimum Distribution Rules Notwithstanding any provisions in the Plan to the contrary, any distribution under the Plan shall be made in accordance with a reasonable and good faith interpretation of Code Section 401(a)(9), including the incidental benefit rules of Section 401(a)(9)(G) of the Code, Treasury Regulations 1.401(a)(9)-1 through -9 as they are amended. No payment option may be selected by a Participant unless the amounts payable to the Participant are expected to be at least equal to the minimum distribution required under Section 401(a)(9) of the Code. The accounts of a Participant shall be distributed to the Participant beginning no later than the Participant’s “required beginning date.” For purposes of this Section, “required beginning date” means April 1 of the calendar year following the later of (i) the calendar year in which the Participant reaches the applicable age or (ii) the calendar year in which the Participant retires. For a Participant who attains age 72 after December 31, 2022, and age 73 before January 1, 2033, the applicable age is 73. For a Participant who attains age 74 after December 31, 2032, the applicable age is 75. The applicable age is defined in Code Section 401(a)(9)(C)(v). 8.6 Payments to Beneficiary (a) Upon the death of a Participant before distributions of his or her account begin under Section 8.5, the following distribution provisions will take effect; provided, however, that such provisions are subject to any regulations or other guidance issued under Code Section 401(a)(9): (i) If the Participant has no designated Beneficiary within the meaning of Code Section 401(a)(9)(E)(i), the Participant’s account under the Plan will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. (ii) If any portion of the Participant’s account is payable to a designated Beneficiary within the meaning of Code Section 401(a)(9)(E)(i), the Participant’s account shall be distributed to the designated Beneficiary by December 31 of the calendar year containing the tenth anniversary of the Participant’s death. (iii) Notwithstanding paragraph (ii), if any portion of the Participant’s account is payable to an Eligible Designated Beneficiary, within the meaning of Code Section 401(a)(9)(E)(ii) and as set forth in paragraph (b), the Eligible Designated Beneficiary may elect for the Participant’s account to be distributed (A) by December 31 of the calendar year containing the tenth

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anniversary of the Participant’s death, or (B) beginning no later than December 31 of the calendar year immediately following the calendar year in which the Participant died, over the life of the Eligible Designated Beneficiary or over a period not exceeding the life expectancy of the Eligible Designated Beneficiary. If the Eligible Designated Beneficiary is the surviving spouse, the Eligible Designated Beneficiary may elect to delay payment under item (B) until December 31 of the calendar year in which the Participant would have reached the applicable age. If the Eligible Designated Beneficiary does not elect a method of distribution as provided above, the Participant’s account(s) shall be distributed in accordance with item (A). A surviving spouse who is the Participant’s sole designated Beneficiary may elect to be treated as if the surviving spouse were the Participant as provided under Code Section 401(a)(9)(B)(iv). (iv) Upon either (A) the death of an Eligible Designated Beneficiary before distribution of the Participant’s entire account or (B) the attainment of the age of majority, as defined under the laws of the State of Mississippi, for an Eligible Designated Beneficiary who is a minor child of the Participant, subparagraph (iii) shall no longer apply, and the remainder of the account shall be distributed under subparagraph (i) or (ii), as applicable. (b) For purposes of this Section 8.6, and in accordance with Code Section 401(a)(9)(E)(ii), an “Eligible Designated Beneficiary” is a designated Beneficiary who, as of the date of the death of the Participant, is: (i) the surviving spouse of the Participant; (ii) a child of the Participant who has not reached the age of majority, as defined by the laws of the State of Mississippi; (iii) disabled within the meaning of Code Section 72(m)(7); (iv) chronically ill within the meaning of Code Section 7702B(c)(2) (except that the requirements of subparagraph (A)(i) thereof shall only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature); or (v) any other individual who is not more than ten (10) years younger than the Participant. 8.7 Distribution for Incompetent or Minor Beneficiary In the event a distribution is to be made to a minor Beneficiary, then the Board may direct that such distribution be paid to the legal guardian, or if none, to a custodial parent of such Beneficiary, or to the legal custodian for such Beneficiary. Such a payment to the legal guardian, parent or legal custodian of a minor Beneficiary shall fully discharge the Provider, any other providers of the Plan, Board, Employer, and Plan from further liability on account thereof. In the event a distribution is to be made to an incompetent person as declared by a physician, then the Board may direct that such distribution be paid to the court appointed and currently acting conservator of the incompetent person or to other such individual who is legally responsible for the incompetent person as permitted by the laws of the state in which the incompetent person resides. Such a payment to the conservator or other such

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individual who is legally responsible for the incompetent person shall fully discharge the Provider, any other providers of the Plan, Board, Employer, and Plan from further liability on account thereof. 8.8 Location of Participant or Beneficiary Unknown In the event that the Administrator does not have current contact information for or is unable to identify a Participant or Beneficiary under the Plan, the Administrator shall make reasonable attempts to determine the address and identity of the Participant or Beneficiary entitled to benefits under the Plan. A reasonable attempt to locate a missing or lost Participant or Beneficiary may include (i) providing notice to the Participant at the Participant’s last known address via certified mail; (ii) determining whether the Employer’s records or the records of another plan maintained by the Employer has a more current address for the Participant; (iii) attempting to contact any named Beneficiary of the Participant; and (iv) searching for the missing Participant via free electronic search tools, such as Internet search engines, public record databases, obituaries, and social media. If such search methods are unsuccessful, based on the facts and circumstances, the Third- Party Administrator may use other search methods, including using Internet search tools, commercial locator services, credit reporting agencies, information brokers, investigation databases, and analogous services that may involve charges. The Third-Party Administrator may charge missing Participants and Beneficiaries reasonable expenses for efforts to find them. In the event that all, or any portion, of the distribution payable to a Participant or Beneficiary hereunder shall remain unpaid solely by reason of the inability of the Third- Party Administrator to ascertain the whereabouts of such Participant or Beneficiary, the amount so distributable shall be held within the Plan’s uncashed check account. Distributions will be reissued at the request of Participant or Beneficiary, or after the Third- Party Administrator confirms the location of the recipient. 8.9 Beneficiary Designation. A Participant or former Participant in the plan may designate one or more individuals as a Beneficiary by filing a written notice of Beneficiary designation with the Third-Party Administrator. If the Participant fails to designate a Beneficiary, the designated Beneficiary is deceased, or the designated beneficiary is otherwise disqualified, then the Beneficiary shall be deemed to be the statutory Beneficiary under Miss. Code Ann. Section 25-11-117.1. 8.10 Hardship Distributions (a) A Participant shall be permitted to make a hardship withdrawal from the Account Balance of amounts credited for Participant Plan Contributions and Employer Contributions if the Participant self-certifies that the Participant has incurred an immediate and heavy financial need for funds and the withdrawal is necessary to satisfy the financial need.

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(b) The amount of any Hardship Distribution by a Participant shall not exceed the amount necessary to satisfy the immediate and heavy financial need and not reasonably available from other resources of the participant. For these purposes, a Hardship Distribution will be treated as necessary to satisfy an immediate and heavy financial need if the Participant self-certifies that the need cannot be relieved; (1) through reimbursement or compensation by insurance or otherwise; (2) by liquidation of the Participant's assets to the extent such liquidation would not itself cause an immediate and heavy financial need; or (3) by other currently available distributions from the Plan or by borrowing from commercial sources on reasonable commercial terms. (c) The following situations are deemed to meet the requirements for an immediate and heavy financial need: (i) Expenses incurred for, or necessary to obtain, medical care as described in Code § 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) for the Participant, Participant’s spouse, or Participant’s dependents (as defined in Code § 152), or the primary Beneficiary, (ii) Costs directly related to the purchase of a principal residence for the Participant (excluding mortgage payments), (iii) Payments of tuition, related educational fees and room and board expenses for the next 12 months of post-secondary education, including expenses for the then current semester or quarter, for the Participant or the Participant’s spouse, children, dependents (as defined in Code § 152, without regard to Code § 152(b)(1), (b)(2) and (d)(1)(B)), or primary Beneficiary, (iv) Payments necessary to prevent the eviction of the Participant from the Participant’s principal residence or foreclosure on the mortgage on that residence, (v) Payments for funeral or burial expenses for the Participant’s deceased parent, spouse, child, or dependent (as defined in Code § 152, without regard to Code § 152(d)(1)(B)), or primary Beneficiary, (vi) Expenses to repair damage to the Participant’s principal residence that would qualify for a casualty loss deduction under Code § 165 (determined without regard to Code § 165(h)(5) and whether the loss exceeds 10% of adjusted gross income), (vii) Expenses and losses (including loss of income) incurred by the Participant on account of a disaster declared by the Federal Emergency Management Agency (FEMA) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100–707, provided that the Participant’s principal residence or principal place of employment at the

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time of the disaster was located in an area designated by FEMA for individual assistance with respect to the disaster, or (viii) Such other financial circumstances as declared by the Commissioner of Internal Revenue to constitute immediate and heavy financial need under applicable Code sections and Treasury Regulations. 8.11 Direct Rollover (a) Consistent with Code Section 401(a)(31), a Participant shall be permitted to elect to have any “eligible rollover distribution” transferred directly to an “eligible retirement plan” specified by the Participant. The Plan provisions otherwise applicable to distributions continue to apply to the direct transfer option. The Participant shall, in the time and manner prescribed, specify the amount to be directly transferred and the “eligible retirement plan” to receive the transfer. Any portion of a distribution which is not transferred shall be distributed to the Participant. For purposes of this Section, the term “eligible rollover distribution” means any distribution of the balance to the credit of the Participant other than: (i) a distribution of substantially equal periodic payments over the life or life expectancy of the Participant (or joint life or joint life expectancies of the Participant and the designated Beneficiary) or, (ii) a distribution over a specified period certain of ten (10) years or more. Amounts required to be distributed under Code Section 401(a)(9) are not eligible rollover distributions. The direct transfer option described in subsection (a) applies only to eligible rollover distributions which would otherwise be includible in gross income if not transferred. For purposes of the direct rollover provision of this Plan, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax Employee contributions which are not includible in gross income. (b) For purposes of this Section, the term “eligible retirement plan” means an individual retirement account as described in Code Section 408(a), an individual retirement annuity as described in Code Section 408(b), an annuity plan as described in Code Section 403(a), or a qualified retirement plan as described in Code Section 401(a) which is exempt from tax under Code Section 501(a) and which accepts rollover distributions. Transfers under this section shall not be considered assignments under Section 10.1. An eligible retirement plan shall also mean an annuity contract described in Code Section 403(b) and an eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. Effective January 1, 2008, “eligible retirement plan” may also include a Roth IRA as described in Code Section 408A. Effective for distributions made after December 18, 2015, an eligible retirement plan includes a SIMPLE IRA as described in Code Section 408(p), provided that the rollover contribution is made after the two-year period beginning on the date the distributee first participated in any qualified salary reduction arrangement maintained by the distributee’s employer under Code Section 408(p)(2), as described in Code Section 72(t)(6).

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The definition of “eligible retirement plan” shall also apply in the case of a distribution to a surviving spouse. The election described in subsection (a) also applies to the surviving spouse after the Participant’s death. A distribution of all or any portion of the balance to the credit of a deceased Participant payable to a non-spouse Beneficiary is also qualified as an eligible rollover distribution. However, a nonspouse Beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an “inherited” individual retirement account or annuity. 8.12 Effect of Unused Leave at Retirement or Severance from Employment If, at retirement or Severance from Employment, a Participant in the Plan has unused leave, then the Participant may be paid for any such unused leave to the extent allowed by state law. Appropriate Employer and Participant Plan Contributions shall be made to the Plan for such lump sum payment of unused leave in accordance with Miss. Code Ann. Section 25-11-103(1)(f) (1972, as amended). Where an Employee has earned and has been reported for the maximum annual allowable earnings, he or she may be paid for unused leave in accordance with the leave laws of the State of Mississippi; however, contributions shall not be withheld on any such lump sum leave payment resulting in the earnings for the year which exceed the maximum allowable under the Plan for the year or a proportionate share of a year, whichever is applicable. Any remaining unused, uncompensated leave lapses upon retirement or Severance from Employment.

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ARTICLE IX ADMINISTRATION 9.1 Plan Administrator This Plan shall be administered by the Board. 9.2 Authority of the Board The Board, which is the administrator for purposes of Miss. Code Ann. Section 25-11-101 et seq. (1972, as amended), has all the powers and authority expressly conferred upon it herein and further has the sole right to interpret and construe the Plan and to determine any disputes arising under it. In exercising these powers and authority, the Board will at all times exercise good faith, apply standards of uniform application and refrain from arbitrary action. The Board may employ attorneys, agents, and accountants as it finds necessary or advisable to assist it in carrying out its duties. The Board may designate a person or persons other than the Board to carry out any of its administrative powers, authority, or responsibilities.

Consistent with the authority noted above, the Board’s determination shall be final and conclusive upon all persons affected thereby. It is recognized that unusual circumstances may occur and questions may arise that are not specifically covered by any provision of the Plan, and the Board shall have the right to resolve all such questions. Notwithstanding the above, the Board’s power and responsibility under the Plan shall not extend to, nor have any control over, those responsibilities and duties of the Providers. The Employer, Providers, the Board, and the persons they designate to carry out or help carry out their duties or responsibilities, are fiduciaries under the Plan. Each fiduciary has only those duties or responsibilities specifically assigned to him under the Plan or Trust, or delegated by another fiduciary. Each fiduciary may assume that any direction, information or action of another fiduciary is proper and need not inquire into the propriety of any such action, direction, or information. Except as provided by law, no fiduciary will be responsible for the malfeasance, misfeasance, or nonfeasance of any other fiduciary. The Board and all other fiduciaries shall discharge their duties with respect to this Trust solely in the interest of the Participants and Beneficiaries of the Plan. Such duties shall be discharged for the exclusive purpose of providing benefits to the Participants and Beneficiaries and defraying expenses of the Plan. The Board powers and duties shall be those defined for the Board under applicable Mississippi State Statutes. 9.3 Reliance on Information from Employer To enable the Board or its designee to perform their functions, the Employer shall supply the necessary information to the Board or its designee on a timely basis regarding the Participants under the Plan, including but not limited to Compensation, date of hire, date of death, Severance from Employment, and such other pertinent facts and data as the Board may require. The Board may rely upon such information as is supplied by the Employer

27

and shall have no duty or responsibility to verify such information. In the event of an error, the Employer shall use good faith efforts to coordinate with the Board to correct the error. 9.4 Payment of Expenses The Board may assess the Employer an amount, out of the PERS statutory employer contribution rate under Miss. Code Ann. Section 25-11-123 (1972, as amended), up to 0.2% of the Participant’s total earned Compensation as defined in Miss. Code Ann. Section 25-11-103(1)(k) (1972, as amended) to provide for administrative expenses.

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ARTICLE X NONASSIGNABILITY 10.1 Nonassignment All Participant rights, benefits, contributions, contracts, and Accumulation Accounts under the Plan shall not be assignable and shall be exempt from levy, sale, garnishment, attachment, domestic relations orders, or any other process, including any Mississippi state, county, or municipal tax.

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ARTICLE XI AMENDMENT AND TERMINATION 11.1 Right to Amend Plan. The Board shall have the right at any time to amend this Plan subject to the limitations of Code Section 401(a) and applicable state law. Any such amendment shall become effective as provided therein upon its execution. Provided however, no amendment to the Plan shall be effective if it authorizes or permits any part of the Plan assets (other than such part as is required to pay taxes and administrative expenses) to be used for or diverted to any purpose other than for the exclusive benefit of the Participants or Beneficiaries; or causes or permits any portion of the Plan assets to revert to or become property of the Employers. 11.2 Nonforfeitable Benefits upon Termination. In the event of termination of the Plan, the rights of each Participant to all benefits accrued to the date of such termination, shall be one hundred percent (100%) nonforfeitable and fully vested in each Participant.

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ARTICLE XII MISCELLANEOUS 12.1 Compliance with Code Section 401(a) The intention of the Employers is that the Plan shall comply with the provisions of Code Section 401(a) and the corresponding provisions of any subsequent laws. This Trust is intended to be exempt from taxation under Code Section 501(a). The provisions of the Plan shall be construed to effectuate such intention. In the event any provision shall be determined to be illegal or invalid for any reason, the illegal or invalid provision shall not affect the remaining parts of the Plan and the Board and the Third-Party Administrator may perform such alternative acts which most clearly carry out the intent and purpose of the Plan. 12.2 Assumption of Risk Each Participant and Beneficiary assumes all risk in connection with the investment decisions made and any decrease in the value of their accounts. Neither the Board, the Third-Party Administrator, an Employer, nor the Plan shall be liable or responsible for any investment losses under the Plan. 12.3 Disputes If a dispute as to the proper payee arises, the Third-Party Administrator may delay payment until after the dispute is resolved by a court of competent jurisdiction or is settled by the parties involved. 12.4 Governing Law Except as provided under federal law, the provisions of the Plan are governed by and construed in accordance with the laws of the State of Mississippi. Venue for the resolution of any dispute shall be Jackson, Hinds County, Mississippi.

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ARTICLE XIII TRUST 13.1 Trust A Trust is hereby established under State Law. 13.2 Trust Status All assets held in connection with the Plan, including all amounts of Compensation remitted pursuant to the Plan, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property or rights shall be held and invested in trust for the exclusive benefit of Participants and their Beneficiaries under the Plan. No part of the assets and income of the Plan shall be used for or diverted to purposes other than for the exclusive benefit of the Participants and their Beneficiaries and for defraying reasonable expenses of the Plan. 13.3 Trust Fund Effective March 1, 2026, all amounts remitted pursuant to the Plan, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property or rights held as part of the Plan, shall be held, managed, invested and distributed as part of the Trust in accordance with the provisions of the Plan. All contributions to the Plan must be transferred by the Employers to the Trust pursuant to Article IV. All benefits under the Plan shall be distributed solely from the Trust pursuant to Article VIII. 13.4 Trustee The Board is the trustee for assets of the Trust.

STATE PERSONNEL BOARD STATE PERSONNEL BOARD

Part 110 Mississippi State Personnel Board Policy and Procedures Manual

27 Miss. Admin. Code Pt. 110 Mississippi State Personnel Board Policy and Procedures Manual

Table of Contents CHAPTER 1 – INTRODUCTION .......................................................................................................... 1 1.0.1 Scope and Intent of the Manual ............................................................................................ 1 1.0.2 Amendments to this Manual ................................................................................................. 1 1.1 MISSISSIPPI STATE PERSONNEL BOARD ............................................................................. 2 Executive Office – (601) 359-1406 ............................................................................................... 2 Employee Appeals Board – (601) 359-2982 ................................................................................. 2 Office of Classification, Compensation, and Recruitment– (601) 359-1406 ................................. 3 Office of Training and Development – (601) 359-2757 ................................................................ 3 Office of Information Technology – (601) 359-2759 .................................................................... 3 Communications – (601) 359-1406 ............................................................................................... 3 Office of Administrative Services – (601) 359-1406 .................................................................... 3 1.2 PUBLIC RECORDS ACT REQUESTS ........................................................................................ 3 1.3 STATEWIDE HUMAN RESOURCES INFORMATION SYSTEMS ......................................... 5 1.4 DECLARATORY OPINIONS ...................................................................................................... 5 1.5 ORAL PROCEEDINGS ................................................................................................................ 8 1.6 AGENCY DESIGNEES AND CONTACTS TO CONDUCT BUSINESS WITHMSPB ............. 9 CHAPTER 2 – DEFINITIONS ............................................................................................................. 10 2.1 STATE SERVICE ....................................................................................................................... 10 2.1.1 Conferment of State Service Status .................................................................................... 10 2.2 NON-STATE SERVICE ............................................................................................................. 11 2.2.1 Non-state Service Appointment .......................................................................................... 11 2.2.2 Salary Certification ............................................................................................................. 14 2.2.3 Notification of Non-State Service Status ............................................................................ 14 2.2.4 Hiring under Emergency Conditions ................................................................................... 14 CHAPTER 3 – RECRUITMENT.......................................................................................................... 15 3.1 RECRUITMENT PROGRAMS .................................................................................................. 15 3.1.1 Open Consideration of Qualified Candidates ...................................................................... 15 3.1.2 Regular Recruitment ........................................................................................................... 15 3.1.3 Special Recruitment ............................................................................................................ 15 3.1.4 Authority to Take a Position off Recruitment ..................................................................... 16 3.1.5 Length of Recruitment ........................................................................................................ 16 3.1.6 Non-State Service and Exempt Recruitment ....................................................................... 16 3.2 RECRUITMENT ANNOUNCEMENTS .................................................................................... 16 3.3 CONTENT OF ANNOUNCEMENT .......................................................................................... 16 3.4 ADVERTISING .......................................................................................................................... 17

3.4.1 Agency Advertising Efforts/Concurrent Advertisements ................................................... 17 3.4.2 Notice of Advertising .......................................................................................................... 17 3.5 RECRUITMENT AND COUNSELING ..................................................................................... 17 3.6 EXEMPT STATUS RECRUITMENT AND SELECTION ........................................................ 18 CHAPTER 4 – SELECTION ................................................................................................................. 19 4.1 APPLICANT PROCESSING ...................................................................................................... 19 4.2 THE APPLICATION PROCESS ................................................................................................ 19 4.2.1 Application Form ................................................................................................................ 19 4.2.2 When Applications Shall Be Filed ...................................................................................... 19 4.2.3 Locations Where Applications May Be Filed ..................................................................... 20 4.2.4 Who May Apply for State Employment .............................................................................. 20 4.2.5 Evaluation of Education/Training and Experience ............................................................. 21 4.2.6 Additional Documentation Supplied for Evaluation ........................................................... 21 4.2.7 Verification of Education/Training and Experience ........................................................... 22 4.2.8 Falsification of State of Mississippi Application or Resume .............................................. 22 4.2.9 Non-Competitive Initial Appointment ................................................................................ 22 4.3 EVALUATION OF APPLICANTS BASED ON MINIMUM QUALIFICATIONS ................. 23 4.3.1 Minimum Qualifications ..................................................................................................... 23 4.3.2 Notification of Failure to Meet Minimum Qualifications ................................................... 24 4.3.3 Substitution of Minimum Qualifications ............................................................................ 24 4.3.4 Special Qualifications/Job Specific Supplemental Question(s) .......................................... 25 4.4 MISSISSIPPI STATE PERSONNEL BOARD STATUTORY ELECTION AUTHORITY OVER NON-STATE SERVICE PERSONNEL .................................................................................................. 25 4.5 EVALUATIONS OVERVIEW ................................................................................................... 26 4.5.1 Evaluation of Applications ................................................................................................. 26 4.5.2 Disqualification of Applicants ............................................................................................ 26 4.5.3 Notification of Evaluation Results ...................................................................................... 27 4.5.4 Adjustment of Errors........................................................................................................... 27 4.6 DESIGNATION OF VETERANS’ STATUS ............................................................................. 28 4.7 SELECTION PROCEDURE DEVELOPMENT AND VALIDATION ..................................... 28 4.7.1 Development of Selection Procedures ................................................................................ 28 4.7.2 Validation of Selection Procedures ..................................................................................... 28 4.8 REFERRAL OF APPLICANTS TO AGENCIES ....................................................................... 29 4.9 REFERRED LISTS – for job classifications requiring recruitment via the online ................... 29 4.9.1 Establishment and Maintenance of Referred Lists .............................................................. 29 4.9.2 Preparation of Referred Lists .............................................................................................. 30

4.9.3 RIF/Reemployment Applicants .......................................................................................... 30 4.9.4 Promotional Referred Lists ................................................................................................. 31 4.9.5 Transfer Referred Lists ....................................................................................................... 31 4.9.6 Open Referred Lists ............................................................................................................ 31 4.9.7 Agency Only Non-Competitive Promotional Eligibility .................................................... 32 4.9.8 Duration of Referred List .................................................................................................... 32 4.9.9 Request for Referred Lists .................................................................................................. 32

4.9.10 Procedures for Completing a Recruitment Request ....................................................................... 33 4.9.11 Selective Certification ................................................................................................................... 34 4.9.12 Supplying of Referred Lists ........................................................................................................... 34 4.9.13 Appointments from Referred Lists ................................................................................................ 35 4.9.14 General Instructions for Actioning a Referred List ....................................................................... 35 4.9.15 Consideration of Reduction-in-Force and Reemployment Applicants .......................................... 36 4.9.16 Concurrent Recruitment ................................................................................................................ 36 4.9.17 Correction of Errors in Certification Process ................................................................................ 36 4.9.18 Confirmation of Availability for Appointment ............................................................................. 36 4.10 APPLICANT’S REVIEW PROCEDURE ............................................................................................... 36 4.10.1 Review of Action ........................................................................................................................... 37 4.11 APPLICANT INTERVIEWS ................................................................................................................... 37 4.12 EMPLOYMENT AUTHORIZATION .................................................................................................... 37 CHAPTER 5 – CLASSIFICATION AND COMPENSATION....................................................................... 39 5.1 CLASSIFICATION ................................................................................................................................. 39 5.1.1 Creation of New Job Families and Classifications .......................................................................... 39 5.1.2 Role Summaries ............................................................................................................................... 40 5.1.3 Role Summary Revision .................................................................................................................. 40 5.1.4 Mandated Changes to Role Summaries and Minimum Qualifications ............................................ 41 5.1.5 Role Summaries of Multiple User Agencies ................................................................................... 41 5.2 COMPENSATION ................................................................................................................................... 41 5.2.1 Pay Range Assignment .................................................................................................................... 42 5.2.2 General Compensation Rules .......................................................................................................... 42 5.2.3 Implementation of Salaries .............................................................................................................. 43 5.3 ALLOCATION OF EMPLOYMENT POSITIONS ................................................................................ 44 5.3.1 Title Changes ................................................................................................................................... 44 5.3.2 Requests for Title Changes (Upward, Downward, Lateral) ............................................................ 44 5.4 APPOINTMENTS ................................................................................................................................... 46 5.4.1 Original Appointment and Salary Determination ............................................................................ 46 5.4.2 Standard New Hire Salary ............................................................................................................... 46 5.4.3 Open-Competitive New Hire ........................................................................................................... 46 5.4.4 Overlap New Hire and New Hire Flexibility ................................................................................... 47 5.4.5 Non-Competitive New Hire and New Hire Above Start ................................................................. 48 5.4.6 Part-Time and Time-Limited New Hire .......................................................................................... 48 5.4.7 Emergency Appointment ................................................................................................................. 49 5.4.8 Reappointment (Return from Authorized Leave of Absence) ......................................................... 50 5.4.9 Reemployment into the State Service .............................................................................................. 51 5.4.10 Retiree Employment ...................................................................................................................... 52 5.4.11 Dual Employment and Salary Determination ................................................................................ 53 5.5 IN-SERVICE MOVEMENT .................................................................................................................... 53

5.5.1 Promotions ....................................................................................................................................... 53 5.5.2 Promotion (Intra-Agency) ............................................................................................................... 53 5.5.3 Promotion (Inter-Agency) ............................................................................................................... 54 5.5.4 Lateral Transfer (Intra-Agency) ...................................................................................................... 54 5.5.5 Lateral Transfer (Inter-Agency) ...................................................................................................... 55 5.5.6 Demotional Transfers ...................................................................................................................... 56 5.5.7 Demotional Transfer (Intra-Agency) ............................................................................................... 56 5.5.8 Demotional Transfer (Inter-Agency) ............................................................................................... 56 5.5.9 Dual Transfer (Intra-Agency) .......................................................................................................... 57 5.6 DETAIL TO SPECIAL DUTY ................................................................................................................ 57 5.6.1 DFA Pilots and Aircraft Maintenance Director ............................................................................... 58 5.7 ADMINISTRATION OF ADDITIONAL COMPENSATION SCHEDULES ....................................... 58 5.7.1 Application of Additional Compensation ........................................................................................ 59 5.7.2 Agency Authorization for Additional Compensation ...................................................................... 59 5.7.3 Certification of Employees for Additional Compensation .............................................................. 59 5.7.4 Job Classification Authorization or Rescindment of Additional Compensation ............................. 59 5.8 COOPERATIVE EDUCATION COMPENSATION PLANS ................................................................ 60 5.9 PRODUCTIVITY .................................................................................................................................... 60 5.10 LONGEVITY ........................................................................................................................................... 60 5.11 EMPLOYER REQUIREMENTS UNDER FLSA ................................................................................... 60 5.12 EMPLOYEE DATA CHANGES ............................................................................................................. 61 5.13 SEPARATIONS ....................................................................................................................................... 61 5.14 SELECTIVE SERVICE REGISTRATION ............................................................................................. 61 CHAPTER 6 – STAFFING MANAGEMENT POLICIES ............................................................................. 63 6.0.1 Purpose ............................................................................................................................................ 63 6.1 AGENCY’S ROLE IN THE STAFFING MANAGEMENT PROGRAM .............................................. 63 6.1.1 Reporting Data ................................................................................................................................ 64 6.2 ESTABLISHMENT AND ABOLISHMENT OF AGENCIES ............................................................... 64 6.2.1 Establishment of a New Agency ..................................................................................................... 64 6.2.2 Consolidation of Existing Agencies ................................................................................................ 64 6.2.3 Inactivation of Agencies .................................................................................................................. 65 6.2.4 Agency Program Budget Data ......................................................................................................... 65 6.3 ORGANIZATIONAL PLANNING AND POSITION MANAGEMENT .............................................. 66 6.3.1 The Staffing Planning Cycle ............................................................................................................ 67 6.3.2 Budgeting for Staffing Positions ..................................................................................................... 67 6.3.3 Organizational Planning .................................................................................................................. 67 6.3.4 Agency Organizational Chart .......................................................................................................... 68 6.3.5 Staffing Guides/Plans/Standards ..................................................................................................... 69 6.3.6 Agency Reorganization ................................................................................................................... 70 6.3.7 Establishment of Positions............................................................................................................... 70

6.3.8 Abolishment of Positions ................................................................................................................ 71 6.3.9 Swap or Transfer of Positions within Legislative Authority ........................................................... 71 6.3.10 Annual Registration of Authorized Positions ................................................................................ 72 6.3.11 Continuation of Position(s) ............................................................................................................ 73 6.3.12 Change in Position Status .............................................................................................................. 73 6.3.13 Position Program Budget Data Change ......................................................................................... 73 6.4 POSITION COST PROJECTION AND POSITION VALIDATION ..................................................... 74 6.5 LEGAL SERVICES CONTRACT APPROVAL REQUESTS ............................................................... 74 6.5.1 Consideration Timelines .................................................................................................................. 75 6.5.2 Procedures for Requesting Approval ............................................................................................... 76 6.5.3 Contract Format and Required Clauses ........................................................................................... 76 6.5.4 Determination .................................................................................................................................. 77 6.5.5 Termination ..................................................................................................................................... 77 6.6 REMOTE WORK .................................................................................................................................... 77 6.6.1 Remote Work Policy ....................................................................................................................... 77 6.6.2 Full Time Remote Work .................................................................................................................. 78 6.6.3 Hybrid Remote Work ...................................................................................................................... 78 6.6.4 Intermittent Remote Work ............................................................................................................... 78 6.6.5 Reporting to MSPB ......................................................................................................................... 78 6.7 FAMILY AND MEDICAL LEAVE ACT ............................................................................................... 79 CHAPTER 7 – EMPLOYEE RELATIONS ..................................................................................................... 80 7.1 TRAINING AND DEVELOPMENT....................................................................................................... 81 7.1.1 Training Needs ................................................................................................................................ 80 7.1.2 Development and Coordination ....................................................................................................... 80 7.1.3 Interagency Partnerships ................................................................................................................. 80 7.1.4 Guidelines for Development of Agency Career Development Programs ........................................ 80 7.1.5 Training Data ................................................................................................................................... 81 7.2 EXCELLENCE IN GOVERNMENT AND LONGEVITY SERVICE AWARDS ................................. 81 7.2.1 Excellence in Government Awards ................................................................................................. 81 7.2.2 Longevity Service Awards .............................................................................................................. 84 7.3 REDUCTION-IN-FORCE ....................................................................................................................... 84 7.3.1 Furlough .......................................................................................................................................... 90 7.4 EDUCATIONAL LEAVE ....................................................................................................................... 93 7.4.1 General Professional Development .......................................................................................................... 93 7.4.2 Professional Development Programs ....................................................................................................... 97

Effective July 1, 2026 Page 1

CHAPTER 1 – INTRODUCTION

1.0 ABOUT THIS MANUAL This manual is effective as of July 1, 2026. The most up-to-date version of this manual is always located on the Mississippi State Personnel Board web site at http://www.mspb.ms.gov. This manual should be read in conjunction with the Mississippi State Employee Handbook. As an official product of state government, this document is in the public domain and may be copied or redistributed without restriction. 1.0.1 Scope and Intent of the Manual This manual contains the policies and rules of the Mississippi state employment service and applies to all employees placed under the purview of the Mississippi State Personnel Board by Mississippi Code Annotated §§ 25-9-101 et seq., and other pertinent laws. This volume supersedes all previous editions. The purpose of this manual is to provide a standardized, comprehensive system of human capital administration consistent with Mississippi’s laws. In addition, the policies, rules, and procedures contained herein should be followed in a manner consistent with any federal statutes or regulations which are applicable to a particular agency. If any part of this manual is inconsistent with such federal law or regulation, the federal law takes precedence. The policies and rules contained in this manual and all other publications of the Mississippi State Personnel Board are in accordance with the following principles as listed in Mississippi Code Annotated § 25-9-103: Principle I: Recruiting, selecting, and advancing employees shall be based on their relative ability, knowledge, and skills including open consideration of qualified applicants for initial appointment. Principle II: Equitable and adequate compensation shall be provided. Principle III: Employees shall be trained, as needed, to ensure high quality performance. Principle IV: Employees shall be retained based on the adequacy of their performance. Provisions shall be made to correct inadequate performance and to separate employees whose inadequate performance cannot be corrected. Principle V: Fair treatment of applicants and employees in all aspects of personnel administration shall be ensured without regard to race, religious creed, sex, national origin, political affiliation, age, or disability. Principle VI: Employees shall be free from coercion for partisan or political purposes, and employees shall be prohibited from using their official authority to interfere with or to affect the result of election or nomination for office. 1.0.2 Amendments to this Manual The Mississippi State Personnel Board may amend the policies, rules, and procedures, which establish and maintain the state human capital system as circumstances and conditions require.

Effective July 1, 2026 Page 2

Any appointing authority, agency head, or member of the Personnel Advisory Council operating under the Mississippi State Personnel Board may recommend an amendment to policies and rules when a provision in the state personnel system causes unnecessary hardship or when the efficiency of the system may be improved.

1.1 MISSISSIPPI STATE PERSONNEL BOARD The Mississippi State Personnel Board (hereinafter referred to as “MSPB”) consists of five members appointed by the Governor for staggered five year terms. MSPB holds its regularly scheduled meeting the third Thursday of every month, at 10:00 a.m., CST, on the Second Floor of the Regions Bank Building at 210 East Capitol Street in Jackson, Mississippi. MSPB holds meetings at least once a month as provided in Mississippi Code Annotated § 25-9-113. All MSPB meetings are open to the public unless an executive session is declared by an affirmative vote of a minimum of 3/5 of all members present. MSPB may make and enforce reasonable rules and regulations for the conduct of persons attending its meetings. Minutes of all meetings are kept, whether the meeting is open or in executive session. The minutes will show members present and any final actions taken by MSPB, and are available to the public during business hours a reasonable time after recess or adjournment. MSPB, as the governing authority for the statewide human capital system as established in Title 25, Chapter 9 of Mississippi Code Annotated, has delegated much of its authority to the State Personnel Director, who may act on behalf of the Board when such action is necessary for the timely, effective, and efficient implementation of the state’s human capital system; the day-to-day business of MSPB is therefore carried out by the state agency also known as MSPB. References to the State Personnel Director throughout this Manual may also refer to his or her designee(s). Following an organizational restructuring in 2009, MSPB is divided into six sections. Agency directors, personnel officers, personnel assistants, and members of the public requiring assistance are urged to direct any inquiry to the MSPB staff section assigned the applicable responsibility. Functional assignments are outlined below. If you are unsure where to direct your inquiry, contact the MSPB switchboard at (601) 359-1406 or your agency’s Classification, Compensation, and Recruitment Analysts. For a complete listing of MSPB employees, go to http://www.mspb.ms.gov. Executive Office – (601) 359-1406 Agency Budget ♦ Annual Report ♦ Executive Support ♦ General Administration ♦ Strategic Planning ♦ Discipline ♦ Employee Handbook ♦ Policy Development and Interpretation ♦ Grievances ♦ Leave Administration ♦ Federal Employment Laws ♦ Legal Questions ♦ Statutes relating to Mississippi State Personnel Board Matters

Employee Appeals Board – (601) 359-2982 Appeals Filing ♦ Appeals Scheduling ♦ General Appeals Information

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Office of Classification, Compensation, and Recruitment– (601) 359-1406 Compensation Surveys ♦ Role Summaries ♦ Consultative Services ♦ Job Classifications♦ Job Description Development and Validation ♦ Job Reclassification ♦ Staffing Management ♦ Organizational Charts ♦ Transactions Processing ♦ Salary Certification ♦ Technical Assistance ◆ Application Evaluation ♦ Application Storage ♦ Certification of Referred Applicants to Agencies ♦ Organizational Studies ♦ Substitution of Education and Experience ♦ Compensation and Equity Review

Office of Training and Development – (601) 359-2757 Agency Sponsored On-Site Training ♦ Career Pathing ♦ Consultative Services ♦ Electronic Training Center ♦ Internship Programs ♦ Management Certification Programs ♦ Organizational Design ♦ Performance Review ♦ Professional Development Courses ♦ Succession Planning ♦ Support Staff Certification Programs ♦ Talent Management ♦ Technical Assistance ♦ Training Certification ♦ Training Evaluation ♦ Training Needs Assessments ♦ Training Programs ♦ Workforce Analysis

Office of Information Technology – (601) 359-2759 Data Management ♦ Special Reports ♦ Technical Assistance ♦ Information Systems

Communications – (601) 359-1406 Outreach ♦ Public Records Requests ♦ Media Relations ♦ Website Development

Office of Administrative Services – (601) 359-1406 MSPB Personnel Office ♦ MSPB Business Office ♦ Performance Measures ♦ Cost Center Budgeting ♦ Business Continuity ♦ Grant Writing

1.2 PUBLIC RECORDS ACT REQUESTS MSPB complies with requests for information under the Mississippi Public Records Act of 1983, Mississippi Code Annotated §§ 25-61-1 et seq., according to the following policies: A. Requests for information under the Mississippi Public Records Act of 1983 should be marked “Request for Public Records” and must be submitted in writing by U.S. mail or hand delivery to the State Personnel Director, Mississippi State Personnel Board, 210 East Capitol Street, Suite 800, Jackson, MS 39201; submitted via e-mail to MSPB.Communications@mspb.ms.gov; or transmitted by facsimile to (601) 488- 2903. B. Requests should describe in reasonable detail the records sought, and, if possible, should include a description of the type of records, names, dates, dates of birth, social security numbers, job class and county, title of a publication, and other information which may aid in locating records.

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C. Upon receipt of a request, the State Personnel Director shall determine whether the records sought are exempt from production under the Mississippi Public Records Act, and shall either produce or deny production of the records sought within seven (7) working days of the receipt of the request. If the State Personnel Director is unable to produce a public record by the seventh working day after the request is made, the State Personnel Director shall provide a written explanation to the person making the request. The explanation shall state that the records requested will be produced and willexplain with specificity why the records cannot be produced within the seven-day period. The timeline for production may be extended beyond the seven (7) working days upon mutual agreement of the parties. Unless there is mutual agreement of the parties to extend the timeline, the State Personnel Director shall produce the requested records within fourteen (14) working days from the receipt of the original request. D. If the State Personnel Director determines that the records requested are exempt or privileged under the law, he or she shall deny the request and shall send the person making the request a statement of specific reasons for the denial. Such denials shall be kept on file for inspection by any person for three years. Information gained from third parties containing trade secrets or confidential commercial or financial information will not be released until a reasonable time after notice has been sent to the third parties, unless the material is protected by a court order. Where possible, non-exempt material will be separated from exempt material and only the exempt material will be withheld. E. The request for information should be accompanied by sufficient funds, payable by cashier’s check or money order to the Mississippi State Personnel Board, to defray the actual costs of searching, reviewing, copying and, if applicable, mailing the records. Fees charged for the records will not exceed the actual costs, and any overpayment will be refunded. Fees shall be collected prior to compliance with the request. The fees charged will be according to the following schedule: Employee time ......................... Salary rate plus 17 percent for fringe Photocopies ...............................$0.13 per page Automated records search ........ $90.00 setup charge, plus computer time and paper cost (Programming time in excess of one hour will be charged at $40.00 per hour) Data acquisition .........................Actual cost Other printed materials ............. Actual cost Mailing ..................................... Actual cost The State Personnel Director or designee shall promptly notify the person making the request of the estimated fees if the estimate exceeds the funds accompanying the request. The above schedule of fees will apply even if the search is unproductive.

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1.3 STATEWIDE HUMAN RESOURCES INFORMATION SYSTEMS

A. The online system of record (hereinafter referred to as “OSR”) is the repository of record for agencies which fall under the purview of MSPB. Any reference in this manual to OSR also means any other state system that replaces OSR, including Mississippi’s Accountability System for Government Information and Collaboration (hereinafter referred to as “MAGIC”). Transactions entered through OSR are considered to be initiated and approved by the head of the submitting agency. Once entered and approved at the submitting agency level, transactions are automatically forwarded to the proper reviewer at MSPB for appropriate action. Transactions which are invalid, incorrect, or incomplete will be returned to the submitter without action, with notes attached indicating items that must be corrected prior to resubmission. OSR is maintained by the Mississippi Management and Reporting System, (hereinafter referred to as “MMRS”) within the Department of Finance and Administration. For more information on OSR, including training and reference materials, contact the MMRS Helpdesk at (601) 359- 1343 or see the OSR website at http://www.mmrs.state.ms.us/. B. NeoGov is the statewide recruitment and selection system for positions under the purview of MSPB. Transactions entered through NeoGov are considered to beinitiated and approved by the head of the submitting agency. Once entered, transactions are automatically forwarded to the proper reviewer at MSPB for appropriate action. NeoGov is maintained by MMRS within the Department of Finance and Administration. C. Each state agency shall make every effort to ensure the accuracy of all data it enters into these statewide human resources information systems.

1.4 DECLARATORY OPINIONS This section sets forth the Mississippi State Personnel Board’s rules governing the form, content, and filing of requests for declaratory opinions, the procedural rights of persons in relation to the written requests, and the MSPB’s procedures regarding the disposition of requests as required by Mississippi Code Annotated § 25-43-2.103. A. MSPB will issue declaratory opinions regarding the applicability to specified facts of:

1. A statute administered or enforceable by MSPB;
2. A rule promulgated by MSPB; or
3. An order issued by MSPB.
   2. A request must be limited to a single transaction or occurrence.
   3. When a person with substantial interest, as required by Mississippi Code Annotated
   § 25-43-2.103, requests a declaratory opinion, the requestor must submit a printed, typewritten, or legibly handwritten request.
4. Each request must be submitted on 8-1/2” x 11” white paper.

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2. The request may be in the form of a letter addressed to the MSPB Executive Director or in the form of a pleading as if filed with a court.
3. Each request must include the full name, telephone numbers, and mailing address of the requestor(s).
4. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request.
5. Each request must clearly state that it is a request for a declaratory opinion. D. Any party who signs the request shall attest that the request complies with the requirements set forth in these rules, including but not limited to a full, complete, and accurate statement of relevant facts and that there are no related proceedings pending before any agency, administrative, or judicial tribunal. E. Each request must contain the following:
6. A clear identification of the statute, rule, or order at issue;
7. The question for the declaratory opinion;
8. A clear and concise statement of all facts relevant to the question presented;
9. The identity of all other known persons involved in or impacted by the facts giving rise to the request including their relationship to the facts, and their name, mailing address, and telephone number; and
10. A statement sufficient to show that the requestor has a substantial interest in the subject matter of the request. F. MSPB may, for good cause, refuse to issue a declaratory opinion. The circumstances in which declaratory opinions will not be issued include, but are not necessarily limited to the following:
11. The matter is outside the primary jurisdiction of MSPB;
12. There is a lack of clarity concerning the question presented;
13. There is pending or anticipated litigation, administrative action or anticipated administrative action, or other adjudication which may either answer the question presented by the request or otherwise make an answer unnecessary;
14. The statute, rule, or order on which a declaratory opinion is sought is clear and not in need of interpretation to answer the question presented by the request;
15. The facts presented in the request are not sufficient to answer the question presented;
16. The request fails to contain information required by these rules or the requestor failed to follow the procedure set forth in these rules;

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7. The request seeks to resolve issues which have become moot or are abstract or hypothetical such that the requestor is not substantially affected by the rule, statute, or order on which a declaratory opinion is sought;
8. No controversy exists or is certain to arise which raises a question concerning the application of the statute, rule, or order;
9. The question presented by the request concerns the legal validity of a statute, rule, or order;
10. The request is not based upon facts calculated to aid in the planning of future conduct, but is, instead, based on past conduct in an effort to establish the effect of that conduct;
11. No clear answer is determinable;
12. The question presented by the request involves the application of a criminal statute or sets forth facts which may constitute a crime;
13. The answer to the question presented would require the disclosure of information which is privileged or otherwise protected by law from disclosure;
14. The question is currently the subject of an Attorney General’s opinion request;
15. The question has been answered by an Attorney General’s opinion;
16. One or more requestors have standing to seek an Attorney General’s opinion on the proffered question;
17. A similar request is pending before this agency, or any other agency, or a proceeding is pending on the same subject matter before any agency, administrative or judicial tribunal, or where such an opinion would constitute the unauthorized practice of law; or
18. The question involves eligibility for a license, permit, certificate, or other approval by MSPB or some other agency and there is a statutory or regulatory application process by which eligibility for said license, permit, or certificate or other approval may be determined. G. Within forty-five (45) days after the receipt of a request for a declaratory opinion which complies with the requirements of these rules, MSPB shall, in writing:
19. Issue an opinion declaring the applicability of the statute, rule, or order to the specified circumstances;
20. Agree to issue a declaratory opinion by a specified time but no later than ninety(90) days after receipt of the written request; or
21. Decline to issue a declaratory opinion, stating the reasons for its action.

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The forty-five (45) day period shall begin on the first business day after which the request is received by MSPB. H. Declaratory opinions and requests for declaratory opinions shall be available for public inspection and copying at the expense of the viewer during normal business hours. All declaratory opinion and requests shall be indexed by name, subject, and date of issue. Declaratory opinions and requests which contain information which is confidential or exempt from disclosure under the Mississippi Public Records Act or other laws shall be exempt from this requirement and shall remain confidential.

1.5 ORAL PROCEEDINGS This section applies to all oral proceedings held for the purpose of providing the public with an opportunity to make oral presentations or written input on proposed new rules, amendments to rules, and proposed repeal of existing rules before MSPB pursuant to the Administrative Procedures Act, specifically Mississippi Code Annotated § 25-43-3.104. A. When a political subdivision, an agency, or ten (10) persons request an oral proceeding in regards to a proposed rule adoption, the requestor must submit a printed, typewritten, or legibly handwritten request.

1. Each request must be submitted on 8-1/2” x 11” white paper.
2. The request may be in the form of a letter addressed to the MSPB Executive Director or in the form of a pleading as if filed with a court.
3. Each request must include the full name, telephone numbers, and mailing address of the requestor(s).
4. All requests shall be signed by the person filing the request, unless represented by an attorney, in which case the attorney may sign the request. B. Notice of the date, time, and place of all oral proceedings shall be filed with the Secretary of State’s Office for publication in the Administrative Bulletin. The agency providing the notice shall provide notice of oral proceedings to all persons requesting notification of proposed rule adoptions. The oral proceedings will be scheduled no earlier than twenty (20) days from the filing of the notice with the Secretary of State. The State Personnel Director or designee who is familiar with the substance of the proposed rule shall preside at the oral proceeding on a proposed rule. C. Public participation shall be permitted at oral proceedings, as follows:
5. At an oral proceeding on a proposed rule, persons may make statements and present documentary and physical submissions concerning the proposed rule.
6. Persons wishing to make oral presentations at such a proceeding shall notify the State Personnel Director at least three business days prior to the proceeding and indicate the general subject of their presentations. The presiding officer in his or her discretion may allow individuals to participate that have not contacted MSPB prior to the proceeding.

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3. At the proceeding, those who participate shall indicate their names and addresses, identify any persons or organizations they may represent, and provide any other information relating to their participation deemed appropriate by the presiding officer.
4. The presiding officer may place time limitations on individual presentations when necessary to assure the orderly and expeditious conduct of the oral proceeding. To encourage joint presentations and to avoid repetition, additional time may be provided for persons whose presentations represent the views of other individuals as well as their own views.
5. Persons making presentations are encouraged to avoid restating matters that have already been submitted in writing. Written materials may be submitted at the oral proceeding.
6. Where time permits and to facilitate the exchange of information, the presiding officer may open the floor to questions or general discussion. The presiding officer may question participants and permit the questioning of participants by other participants about any matter relating to that rule-making proceeding, including any prior written submissions made by those participants in that proceeding. No participant shall be required to answer any question. D. Physical and documentary submissions presented by participants in an oral proceeding shall be submitted to the presiding officer. Such submissions become the property of MSPB, part of the rulemaking record, and are subject to MSPB’s public records request procedure. MSPB may record oral proceedings by stenographic or electronic means.

1.6 AGENCY DESIGNEES AND CONTACTS TO CONDUCT BUSINESS WITH MSPB

In order for an agency to transact business with MSPB’s Office of Classification, Compensation, and Recruitment, that agency must submit in an MSPB-approved format a list of people designated by the appointing authority who are authorized to do so. The agency must designate a personnel designee with signature authority who is authorized to act as the agency’s designee on behalf of the agency with regards to personnel actions that the agency head is not required to execute by law or policy. The agency must also designate employees with authority to discuss personnel actions with MSPB by telephone or email. The agency must designate an employee as the primary contact for the MSPB Office of Training and Development to discuss employees’ status, program completion, etc. No one who is not an employee of the agency, board, or commission is eligible to serve as the agency’s sole designee. MSPB will not discuss personnel matters with any employee who has not been authorized by his or her agency head as either the designee or an approved agency contact. Any electronic communications between MSPB staff and an independent contractor must copy the agency’s official designee.

The submission must have the name of the agency, the name(s) of the agency’s designee(s), the designee’s or designees’ telephone number and email address, any additional contacts that are authorized to communicate about personnel matters, and the name of the training contact(s). That submission must be signed by the agency head or appointing authority.

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CHAPTER 2 – DEFINITIONS

2.0 INTRODUCTION This chapter contains definitions which are used throughout this manual. However, if anything in this chapter is found to be inconsistent with any state or federal statute, the statute takes precedence.

2.1 STATE SERVICE “State Service” shall mean all employees of state departments, agencies, and institutions as defined in Mississippi Code Annotated §§ 25-9-101 et seq., except § 25-9-107(c). A. OSR shall automatically place all state service employees in a probationary status upon original appointment and reemployment. The probationary period shall be the initial twelve months of service. State service employees who have served a full twelve-month probationary period shall retain permanent status as long as they maintain continuous state service. Mississippi Code Annotated § 25-9-127. B. A probationary period shall be required when transferring a current non-state service status employee into a state service position within the same agency or into a different agency. Time spent in a non-state service position of the same classification or of a higher classification within the same job class series may be counted toward the probationary period upon approval by the State Personnel Director. Mississippi CodeAnnotated § 25- 9-143. C. Extended probationary status shall be assigned only to those employees previously exempt- ed from the selection process as a result of pending litigation. Mississippi Code Annotated §§ 25-9-139; -143.

2.1.1 Conferment of State Service Status Employees not otherwise excluded from the state service, with at least twelve months’ continuous state service in an agency and who have not been assigned extended probationary status, shall have state service status. Mississippi Code Annotated §§ 25-9-127; -143. OSR will automatically update the status of employees who have completed the twelve-month probationary period. Upon original appointment into state service, each incumbent shall automatically receive a status date the same as the hire date. This date reflects the beginning date of the incumbent’s status in state service. The term “Probationary” will automatically be placed in the “Employee Status” field when the transaction is processed. Upon completion of twelve months of continuous state service, each employee shall attain state service status and the term “Permanent” will automatically be placed in the “Employee Status” field by OSR. Once an employee has attained state service status, the status date shall remain the same on any requests for in-service movement except in the following cases: state service to non-state service; non-state service to state service; and litigated classes to state service. Any request processed for in-service movement in the above-mentioned cases shall automatically reset the status and the status date of the employee to the effective date of the transaction.

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2.2 NON-STATE SERVICE All personnel transactions in the non-state service shall be effected through appointments to authorized employment positions by the appointing authority. The Office of Classification, Compensation, and Recruitment shall be notified of each appointment and may acknowledge the appointment. Mississippi Code Annotated § 25-9-107(c). To ensure that the Office of Classification, Compensation, and Recruitment is informed of all appointments to authorized vacant non-state service positions under the salary setting authority of MSPB, all human capital transactions pertaining to personnel in these non-state service positions shall be submitted through OSR in accordance with the procedures contained herein. Requests for salary certifications shall be acknowledged, rather than certified, by MSPB for non-state service employees not under the salary setting authority of MSPB.

2.2.1 Non-state Service Appointment Unless otherwise provided for by law, the appointing authority shall determine job qualifications for non-state service employees. “Non-state service” is defined by Mississippi Code Annotated § 25-9-107(c) as follows: “Non-state service” shall mean the following officers and employees are excluded from the state service by this chapter. The State Personnel Director acknowledges the appointing authority actions for the following, which are excluded from the state service: (i) Members of the State Legislature, their staffs and other employees of the legislative branch; (ii) The Governor and staff members of the immediate office of the Governor; (iii) Justices and judges of the judicial branch or members of appeals boards on a per diem basis; (iv) The Lieutenant Governor, staff members of the immediate office of the Lieutenant Governor and officers and employees directly appointed by the Lieutenant Governor; (v) Officers and officials elected by popular vote and persons appointed to fill vacancies in elective offices; (vi) Members of boards and commissioners appointed by the Governor, Lieutenant Governor, or the State Legislature; (vii) All academic officials, members of the teaching staffs and employees of the state institutions of higher learning, the Mississippi Community College Board, and community and junior colleges; (viii) Officers and enlisted members of the National Guard of the State; (ix) Prisoners, inmates, student or patient help working in or about institutions;

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(x) Contract personnel; provided, that any agency which employs state service employees may enter into contracts for personal and professional services only if such contracts are approved in compliance with the rules and regulations promulgated by the State Public Procurement Review Board under Section 27-104- 7. Before paying any warrant for such contractual services in excess of One Hundred Thousand Dollars ($100,000.00), the Auditor of Public Accounts, or the successor to those duties, shall determine whether the contract involved was for personal or professional services, and, if so, was approved by the State Public Procurement Review Board; (xi) Part-time employees; provided, however, part-time employees shall only be hired into authorized employment positions classified by the board, shall meet minimum qualifications as set by the board, and shall be paid in accordance with the Variable Compensation Plan as certified by the board; (xii) Persons appointed on an emergency basis for the duration of the emergency; the effective date of the emergency appointments shall not be earlier than the date approved by the State Personnel Director and shall be limited to thirty (30) working days. Emergency appointments may be extended to sixty (60) working days by the State Personnel Board; (xiii) Physicians, dentists, veterinarians, nurse practitioners and attorneys, while serving in their professional capacities in authorized employment positions who are required by statute to be licensed, registered or otherwise certified as such, provided that the State Personnel Director shall verify that the statutory qualifications are met prior to issuance of a payroll warrant by the auditor; (xiv) Personnel who are employed and paid from funds received from a federal grant program, which has been approved by the Legislature or the Department of Finance and Administration whose length of employment has been determined to be time- limited in nature. This paragraph shall apply to personnel employed under the provisions of the Comprehensive Employment and Training Act of 1973, as amend- ed, and other special federal grant programs which are not a part of regular federally funded programs wherein appropriations and employment positions are appropriated by the Legislature. Such employees shall be paid in accordance with the Variable Compensation Plan and shall meet all qualifications required by federal statutes or by the Mississippi Classification Plan; (xv) The administrative head who is in charge of any state department, agency, institution, board or commission, wherein the statute specifically authorizes the Governor, board, commission or other authority to appoint said administrative head; provided, however, that the salary of such administrative head shall be determined by the State Personnel Board in accordance with the Variable Compensation Plan unless otherwise fixed by statute; (xvi) The State Personnel Board shall exclude top-level positions if the incumbentsdeter- mine and publicly advocate substantive program policy and report directly to the agency head, or the incumbents are required to maintain a direct confidential

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working relationship with a key excluded official. Provided further, a written job classification shall be approved by the board for each such position, and positions so excluded shall be paid in conformity with the Variable Compensation Plan; (xvii) Employees whose employment is solely in connection with an agency’s contract to produce, store or transport goods, and whose compensation is derived there from; (xviii) Repealed; (xix) The associate director, deputy directors, and bureau directors within the Department of Agriculture and Commerce; (xx) Personnel employed by the Mississippi Industries for the Blind; provided, that any agency may enter into contracts for the personal services of MIB employees without the prior approval of the State Personnel Board or the State Public Procurement Review Board; however, any agency contracting for the personal services of an MIB employee shall provide the MIB employee with not less than the entry level compensation and benefits that the agency would provide to a full- time employee of the agency who performs the same services; and (xxi) Personnel employed by the Mississippi Department of Wildlife, Fisheries, and Parks and the Mississippi Department of Marine Resources as law enforcement officer trainees (cadets); such personnel shall be paid in accordance with the Colonel Guy Groff/ Neville Kenning State Variable Compensation Plan. (xxii) Administrators and instructional employees under contract or employed by the Mississippi School of the Arts (MSA) established in Sections 37-140-1 et seq. (xxiii) The President of the Mississippi Lottery Corporation and personnel employed by the Mississippi Lottery Corporation; and (xxiv) Employees, excluding administrative employees, of the State Veterans Affairs Board who are employed at a veterans home established by the State Veterans Affairs Board under Section 35-1-19. (xxv) Personnel employed by the Mississippi Department of Health whose employment is solely in connection with the Department’s responsibilities to implementing, administering, and enforcing provisions of the Mississippi Medical Cannabis Act. This subparagraph shall stand repealed on June 30, 2026; and (xxvi) Personnel employed by the Mississippi Department of Revenue whose employment is solely in connection with the Department’s responsibilities in implementing, administering, and enforcing provisions of the Mississippi Medical Cannabis Act. This subparagraph shall stand repealed on June 30, 2026.

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Other non-state service employees include: (i) Non-state service positions of deputy superintendents, associate superintendents and directors within the State Department of Education (Mississippi Code Annotated § 37-3-13(1)); (ii) Non-state service positions of associate directors, deputy directors and bureau directors within the Mississippi Development Authority (Mississippi Code Annotated § 57-1-5(3)(c)(xi)); (iii) All employees whether administrative, licensed instructional, non-licensed instructional staff or otherwise employed at the Mississippi School for the Blind and the Mississippi School for the Deaf (Mississippi Code Annotated §§ 43-5-1 et seq.

2.2.2 Salary Certification Salaries for appointment to non-state service positions shall be certified in accordance with the provisions governing appointments. See Mississippi Code Annotated § 25-9-119(2)(c)(i) and (ii). Salary certification for administrative officers, deputies, bureau chiefs, and directors who report directly to the department, agency, institution, or commission, unless otherwise set by statute shall be determined by the appointing authority and MSPB not to exceed the end of the salary range assigned.

2.2.3 Notification of Non-State Service Status Each applicant who accepts appointment to a non-state service position shall be given written notice by the appointing authority prior to the appointment that state service status will not be attained while employed in that position and that the State of Mississippi is under no obligation to continue their employment in such a position. State service status employees who accept appointment to a non-state service position lose their permanent employment status at the time of the appointment, except under the provisions of Mississippi Code Annotated § 25-9-125 and shall be so notified in writing prior to the appointment.

2.2.4 Hiring under Emergency Conditions Authority to hire under emergency conditions is defined as hiring personnel in order that appropriate care and protection for life or property may be implemented or maintained. Salary certification for emergency appointments shall be at a minimum equitable salary of the given classification.

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CHAPTER 3 – RECRUITMENT

3.0 INTRODUCTION The State Personnel Director shall administer a recruitment program as referenced in the Mississippi Code Annotated § 25-9-119(2)(c). This program shall ensure the fair and equitable treatment of all applicants without regard to political affiliation, race, color, handicap, genetic information, religion, national origin, sex, religious creed, age, or disability. Mississippi Code Annotated §§ 25-9-103 and 25-9-149; and Intergovernmental Personnel Act Programs: Standards for a Merit System of Personnel Administration, 5 C.F.R. §§ 900.603; 900.604 (1983). Any questions regarding these functions should be addressed to the Career Counseling Center.

3.1 RECRUITMENT PROGRAMS Recruitment shall be tailored to the number and nature of positions to be filled and to labor market conditions. The recruiting efforts of the Office of Classification, Compensation, and Recruitment and agencies will be coordinated and carried out in a timely manner.

3.1.1 Open Consideration of Qualified Candidates The State Personnel Director shall respond to agency needs by developing methods of reaching qualified applicants. Recruitment efforts for initial appointments shall be planned and carried out in a manner that ensures open competition and equal consideration of all qualified candidates, except as provided in Chapter 4. Recruitment activities may include, but not be limited to, contact with institutions and organizations, personal contact, and public announcements.

3.1.2 Regular Recruitment The State Personnel Director shall initiate recruitment efforts in response to current or projected agency staffing requirements. Agencies that anticipate vacancies due to circumstances such as a separation, transfer of an employee, or authorization for additional positions may request that those positions be placed on recruitment. Agencies will use MSPB’s recruitment and selection software system to request recruitment for vacancies that are not exempt from Regular Recruitment. Additionally, MSPB authorizes agencies to use concurrent recruitment methods as determined by the hiring agency to include job boards, agency websites, and job fairs (See Section 4.9.16). Agencies should submit the requisition at least five (5) working days prior to the opening date of the recruitment posting in the system and coordinate beginning and ending dates of advertisements for concurrent recruitment.

3.1.3 Special Recruitment The MSPB Executive Director may initiate additional recruitment efforts for certain difficult-to- fill job classifications or upon agency requests. In order for the State Personnel Director to coordinate agency recruitment efforts, agencies will advise the State Personnel Director three (3) working days in advance, when planning is initiated for any and/or all recruitment efforts and/or advertising outside of the recruitment and selection software system. Notification is essential to enable the State Personnel Director to ensure that the agency recruitment efforts are in accordance with state policy and procedure.

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3.1.4 Authority to Take a Position off Recruitment

Positions placed on recruitment may be assigned a closing date due to, but not limited to, the

following circumstances:

1. a vacancy has been filled;
2. a role summary revision has been initiated; or
3. there is a written request by the appointing authority.

Positions placed on recruitment for an indefinite period may not be assigned a closing date until a

vacancy is filled. The authority to take a position or job classification off recruitment rests with the

State Personnel Director.

3.1.5 Length of Recruitment Once a position has been placed on recruitment, it may be recruited continuously in accordance with Sections 3.2 and 3.3 until it is taken off recruitment in accordance with Section 3.1.4. The State Personnel Director may elect to take the position off recruitment when deemed appropriate.

3.1.6 Non-State Service and Exempt Recruitment The State Personnel Director does not determine recruitment programs for non-state service positions as defined in Mississippi Code Annotated §§25-9-107(c)(xiii), 25-9-107(c)(xv), and 25- 9-107(c) (xvi) as well as those classifications MSPB has exempted from Regular Recruitment. However, standard recruitment policies apply to non-state service positions defined in Mississippi Code Annotated §§25-9-107(c)(xi) and 25-9-107(c)(xiv). Recruitment or advertising for these positions must be coordinated with the State Personnel Director in accordance with the advertising requirements below. Agencies with positions identified above as exempt from Regular Recruitment that wish to recruit may request assistance from the State Personnel Director. Staff will be available to assist in the development of a plan for recruitment that addresses procedures such as posting of announcements, advertising, evaluation, and referral procedures for applicants. Agencies should note that exemption from Regular Recruitment through MSPB’s online recruitment software does not remove the agency’s responsibility in complying with state and federal law regarding merit-basedcompetitive recruitment.

3.2 RECRUITMENT ANNOUNCEMENTS

Regular Recruitment announcements shall, at a minimum, be listed on the MSPB web site. All recruitment announcements shall be advertised for not less than three (3) working days. Job announcements shall not begin or end on weekends or holidays.

3.3 CONTENT OF ANNOUNCEMENT Recruitment announcements may contain the MSPB role summary of the vacancy or the equivalent of a Mississippi Department of Employment Security job announcement, including the following: title of the position, summary of education and experience requirements, beginning and ending dates

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of recruitment, salary, geographic location, supplemental information provided by the agency in open form fields, and agency contact information.

3.4 ADVERTISING For special recruitment purposes, the State Personnel Director may utilize advertising to supplement the public notice requirements above.

3.4.1 Agency Advertising Efforts/Concurrent Advertisements

Agencies may coordinate their advertising efforts with the State Personnel Director. Commercial

advertising shall be at the expense of the requesting agency. Items required by MSPB to be included

in the concurrent advertising are listed below:

1. the official MSPB job title;
2. the education and experience requirements (Minimum Qualifications) as determined

by the agency within the parameters of the typical qualifications on the role summary;

C. any special qualifications requested by the agency and approved by the Office of Classification, Compensation, and Recruitment (when applicable); D. the statement “An Equal Opportunity Employer”; E. the agency address or email address where applications or resumes are to be sent if the position is not being posted on the MSPB website. For concurrent recruitments, agencies may add other job information or agency specific information as deemed necessary. Agencies must coordinate concurrent recruitment efforts with MSPB by forwarding a copy of the advertisement/link to the advertisement to the Career Counseling Center via email. This will ensure that MSPB staff is aware of the agency’s intentions and will be able to provide information to applicants regarding the advertisement. If the position being advertised is not exempt from the MSPB selection process, the agency will also be required to comply with section 3.1.2, Regular Recruitment, and should coordinate the posting dates with MSPB to ensure that the position is placed on open recruitment on the MSPB website at the same time it is to be advertised by the agency.

3.4.2 Notice of Advertising For those agencies requesting MSPB assistance pursuant to 3.4.1, the appointing authorities will notify the State Personnel Director at least five (5) working days prior to all recruitment advertising, whether the advertising is donated, paid for by the agency, or sponsored and paid for by MSPB.

3.5 RECRUITMENT AND COUNSELING MSPB will provide information and assistance to state agencies and applicants. These services may include, but are not limited to, recruitment efforts; the processing of applications; and counseling/assistance regarding the evaluation and selection processes. The services provided to applicants may include, but are not limited to, assistance with the application process, career counseling, and assistance with the substitution review process.

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3.6 EXEMPT STATUS RECRUITMENT AND SELECTION The State Personnel Director does not determine recruitment programs for job classes or positions exempted under Rule 4.2.9. However, recruitment or advertising for these classifications may be coordinated with the State Personnel Director in accordance with the requirements above. Source: Mississippi Code Annotated §§ 25-9-103, -119, -147.

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CHAPTER 4 – SELECTION

4.0 INTRODUCTION This chapter contains information regarding the application and selection process. Any questions regarding these functions should be addressed to the Career Counseling Center.

4.1 APPLICANT PROCESSING MSPB shall set forth standardized procedures for processing applications, uniformly evaluating education/training and experience, and certifying and providing Referred Lists through the online recruitment software.

4.2 THE APPLICATION PROCESS

4.2.1 Application Form A. All applications for state service positions and the non-state service positions in Section 4.4.1 which require competitive recruitment shall be on the State of Mississippi Application, either electronic or paper. B. The State Personnel Director shall be responsible for the format and may amend the State of Mississippi Application as needed. C. The State Personnel Director shall require that only the original State of Mississippi Application be accepted by MSPB for evaluation.

D. For concurrent recruitment of promotional jobs and jobs exempt from Regular Recruitment, resumes will be accepted in accordance with Section 4.2.6.C.

4.2.2 When Applications Shall Be Filed A. The State Personnel Director may establish procedures which allow the following employees and/or applicants to file applications for Promotional Only Opportunities:

1. current employees with at least six (6) months of continuous service;
2. persons who were terminated from the state service due to a Reduction-in-Force (RIF) within the last twelve (12) months; and
3. former employees who left the state service in good standing within the past twelve (12) months, and who have completed at least six (6) months of continuous employment. B. Applicants not meeting the criteria for the above must file an application during a period when the job classification is listed on MSPB’s Job Opportunities List or via concurrent recruitment posting. C. Applicants for jobs on open recruitment shall file all applications or resumes on or prior to the closing date specified in the announcement.

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4.2.3 Locations Where Applications May Be Filed A. Applications for state service positions must be completed online on MSPB’s website.

B. For jobs posted on the MSPB website, applications must be filed online. Paper applications are no longer accepted for jobs posted via MSPB’s website.

C. An individual is not considered a bona fide applicant until the application is received by either MSPB or the Mississippi Department of Employment Security. Individuals who file an application directly with a state agency/board, etc. are not considered a bona fide applicant until the application is received by MSPB unless part of a concurrent recruitment. D. Applications for positions and job classifications falling under Section 4.2.9 shall be exempt from this section.

4.2.4 Who May Apply for State Employment A. An applicant is defined as any individual who files his or her State of Mississippi Application in accordance with Sections 4.2.1, 4.2.2, and 4.2.3. B. The truth of the statements contained within the submitted State of Mississippi Application shall be certified and are considered true and correct by the applicant clicking the “Accept” button.

C. For resumes submitted for exempt or concurrent recruitment, applicants who submit a resume to a hiring agency are certifying the information to be true and correct by the applicant. D. The State Personnel Director shall have final authority in determining the validity of the application. E. A State of Mississippi Application determined to be invalid shall be returned to the applicant. F. A State of Mississippi Application returned as invalid and subsequently resubmitted must meet the validity requirements effective on the last date received. G. Agencies may submit a State of Mississippi Application for agency-only non- competitive promotions with a note in OSR delineating the action as non-competitive.

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4.2.5 Evaluation of Education/Training and Experience A. All prospective or current state service employees shall have their State of Mississippi Application or resume formally evaluated prior to appointment or promotion except as provided in these rules. MSPB shall uniformly evaluate the qualifications of applicants as stated in their State of Mississippi Application. Applicants shall be evaluated without regard to political affiliation, race, color, handicap, genetic information, religion, national origin, sex, religious creed, age, or disability except as provided by law. B. All State of Mississippi Applications or resumes received at MSPB are reviewed to assess the applicant's education/training and experience as listed in the application to determine qualifications for the job class for which the applicant is applying. All college education and training related to the position for which application is made shall be assessed at a maximum of 120 semester hours (or the equivalent) for a Bachelor’s degree; a maximum of 150 semester hours (or the equivalent) for a Master’s degree; a maximum of 180 semester hours (or the equivalent) for a Specialist degree; and 210 semester hours (or the equivalent) for a doctoral degree. Additionally, college hours will be counted for up to 119 semester hours in increments of 30, 60 or 90 hours. All experience entries listed on the application related to the position for which the application is made, including military, paid, and unpaid volunteer work, shall be assessed at a maximum of forty (40) hours per week. This forty (40) hour limit will also apply where a combination of related work is gained through concurrent jobs. The applicant must meet the minimum requirements outlined in the current active job posting.

4.2.6 Additional Documentation Supplied for Evaluation A. Applicants may be required to submit proof of the possession of any license, certificate, degree, or other evidence of eligibility or qualification required by state law or role summary. Applicants may be disapproved for failure to provide the requested documentation. B. Applicant(s) will be notified regarding additional information or documents necessary to complete processing of application(s).

C. For applicants submitting resumes for evaluation via exempt or concurrent appointment, the following must be included or supplemental by the applicant or hiring agency:

1. Name
2. Address
3. Phone Number
4. Email Address
5. Educational History
   1. Institution Information
   2. Dates Attended
   3. Degree Received
6. Employment History

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1. Employer
2. Month and Year of hire
3. Month and Year of separation
4. Duties
5. Hours per week worked

D. The agency must also include the following when hiring an applicant utilizing a resume: a. Job Title b. Selective Service Status c. Veterans Status

4.2.7 Verification of Education/Training and Experience A. An applicant’s educational record and work history may be investigated by the State Personnel Director or the hiring agency. B. Investigative procedures may include but not necessarily be limited to contacting present and previous employers and/or schools, colleges, or other institutions to verify information contained in the State of Mississippi Application or related documents supplied by the applicant and/or the hiring agency. C. The appointing authority may require the applicant to submit proof of the possession of any license, certificate, degree, or other evidence of eligibility or qualification required by state or federal law or role summary. D. The hiring agency shall ultimately be held accountable for verifying the correctness of information recorded in the State of Mississippi Application.

4.2.8 Falsification of State of Mississippi Application or Resume A. Should an agency, after investigation, discover an applicant’s State of Mississippi Application or resume to be falsified, the agency should immediately inform the State Personnel Director of such falsification in writing. The State Personnel Director may remove the applicant from consideration as provided for in Section 4.5.2. B. When such action is taken, written notification will be mailed to the applicant’s last known mailing address.

4.2.9 Non-Competitive Initial Appointment Job Classifications (State Service), under Mississippi Code Annotated § 25-9-105 A. Each Agency is responsible for ensuring that its workforce complies with all state and federal laws, guidelines, and court orders regarding Equal Opportunity Employment. B. Non-competitive appointments to job classifications exempted from the selection process by state law or by action of MSPB are not required to be made from a Referred List. The State Personnel Director only certifies the candidates referred by the appointing authority who meet the minimum requirements for the job classification.

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C. Exempt classifications may consist of, but are not limited to, the following: (1) skilled or semi-skilled labor, domestic or custodial work; (2) classifications which involve professional or technical skills not normally available in the general applicant population and for which recruiting procedures produce recurring deficiencies; (3) classifications which include a small number of positions; (4) classifications which are unique to a particular agency; (5) classifications which have high turnover rates, and (6) classifications which require professional licensure and/or certification. In general, for a job to be classified as exempt from competitive recruitment, multiple criteria outlined previous must apply to either the agency and/or classification.

D. The State Personnel Director shall review agency proposed classifications or positions and make recommendations to MSPB to develop a list of job classifications exempt from the use of a Referred List. The list of exempt classifications may be furnished to the agencies. E. Agencies may request classifications be reinstated to a competitive appointment basis and may recommend changes to the list of exempt classifications. F. Exempt classifications may apply to entire classifications or specific positions assigned to a classification. G. The appointing authority shall submit a current State of Mississippi Application or resume to the State Personnel Director. The applicant is required to meet the minimum qualifications to be certified for the class or position.

H. Incumbents in state service positions exempt from the selection process by actions of MSPB have the same rights as any other state-service employee.

4.3 EVALUATION OF APPLICANTS BASED ON MINIMUM QUALIFICATIONS Applicant’s qualifications shall be evaluated to determine if they meet the minimum requirements for the position for which they applied. Established standards shall be uniformly applied to all applications without regard to the applicant’s political affiliation, race, color, handicap, genetic information, religion, national origin, sex, religious creed, age, or disability.

4.3.1 Minimum Qualifications The minimum qualifications for a job classification shall consist of the minimum qualifications listed on the role summary plus any special qualifications, known as job specific supplemental questions, for the position applied for as requested by an agency and as approved by the State Personnel Director. A. An applicant’s education/training and experience background, as stated on the State of Mississippi Application or resume, is reviewed in detail to determine qualifications for the position applied for in line with the approved minimum requirements in the role summary and any job specific supplemental questions levied by the user agency as approved by the State Personnel Director. B. The State Personnel Director shall determine a formula for the evaluation of the

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training and experience qualifications of applicants. This formula shall give due regard to relatedness as well as quantity of the training and experience.

4.3.2 Notification of Failure to Meet Minimum Qualifications A. A standardized notification approved by the State Personnel Director shall be sent to all applicants who do not meet the minimum qualifications of the job classification for which they have made application. B. An applicant shall have the right to make a written request for the review of the disapproval by the Director of the Office of Classification, Compensation, and Recruitment or through the substitution process outlined in Section 4.3.3.

4.3.3 Substitution of Minimum Qualifications An applicant, employee, or an agency (for non-competitive intra-agency transfers only) may request in writing that the State Personnel Director substitute the substantial equivalent of education/training and experience for the minimum qualifications required for entry into a job classification, thereby allowing the certification to a Referred List or in-service movement of an individual not otherwise meeting the stated minimum qualifications. A. There shall be no consideration given to the substitution of equivalent education/training or experience where relevant licensing, certification, or similar requirements, or where state or federal statutes or regulatory guidelines preclude evaluation on this alternative basis. B. The State Personnel Director shall appoint a committee of staff members to review all requests. C. The review committee shall consider, but not limit its consideration to, the amount of related experience and formal education/training as documented by a State of Mississippi Application.

D. Decisions of the review committee shall be binding; however, final consideration may be made by the State Personnel Director upon written justification submitted by the employee, applicant, or agency. E. Requests for substitutions of the substantial equivalent of education/training and experience by applicants, employees, or agencies should be sent to subpanel@mspb.ms.gov and include:

1. Detailed and current State of Mississippi Application or resume;
2. Letter of request;
3. Transcript of related college credit hours;
4. Certificates of completion of any related training courses where applicable; and
5. Other pertinent documents deemed necessary by the review panel.

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4.3.4 Special Qualifications/Job Specific Supplemental Question(s) Agencies have the flexibility to fully customize each job posting via the requisition process. With regards to special or preferred qualifications or job specific qualifications, agencies will have the ability to list any preferred qualifications for each posting subject to approval of the State Personnel Director or designee.

A special qualification/job specific supplemental qualification(s) is a requirement used in conjunction with the minimum qualifications of a job class to designate specific skills, abilities, education, and/or experience necessary for a particular position.

The State Personnel Director shall have the authority to modify and/or deny any request for special qualifications/job specific supplemental questions. Exceptions to this policy will be reviewed on a case-by-case basis by the State Personnel Director.

4.4 MISSISSIPPI STATE PERSONNEL BOARD STATUTORY ELECTION AUTHORITY OVER NON-STATE SERVICE PERSONNEL

4.4.1 Non-State Service Personnel Evaluation The State Personnel Director only acknowledges the appointment of non-state service personnel as provided below in Section D. Employees appointed into positions from Sections A and C must come off a referred list. A. Part-Time Positions – The appointing authority shall submit position-employee data along with a copy of a current State of Mississippi Application or resume and other required documentation to the State Personnel Director when appointing to part-time positions. The individual to be appointed must meet the minimum qualificationsfor the job classification as set by MSPB and be certified as such prior to appointment unless otherwise authorized by the State Personnel Director. B. Physicians, dentists, veterinarians, nurse practitioners, and attorneys, while serving in their professional capacities in authorized employment positions who are required by the State to be licensed, registered, or otherwise certified as such, shall submit State of Mississippi Applications or resumes and other documentation as needed to substantiate their professional status. The State Personnel Director shall verify such licensure, registration, or certification as being current and valid prior to acknowledging the appointment of such personnel. The appointing authority shall submit position-employee data along with a copy of a current State of Mississippi Application and other required documentation to the State Personnel Director when appointing to such positions. C. Time-Limited Positions – The appointing authority shall submit position-employee data along with a copy of a current State of Mississippi Application or resume to the State Personnel Director when appointing to time-limited positions. The individual to be appointed must meet the minimum qualifications for the job classification as set by MSPB as well as qualifications required by federal laws and regulations and be certified as such prior to appointment unless otherwise authorized by the State Personnel Director. Mississippi Code Annotated § 25-9-107(c)(xiv).

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D. Applicants for top-level positions excluded from the state service by Mississippi Code Annotated § 25-9-107(c)(xvi) shall submit a State of Mississippi Application or resume to the appointing authority. The appointing authority shall submit position- employee data along with a copy of a current State of Mississippi Application or resume to the State Personnel Director. E. With the exception of those positions stipulated in sections A, B, and C above, the State Personnel Director only acknowledges the appointment of non-state service personnel.

4.5 EVALUATIONS OVERVIEW A. Applicants for job classifications must be evaluated and found minimally qualified by the State Personnel Director prior to being placed on the Referred List. B. The State Personnel Director shall maintain uniform standards for evaluating the education/training and experience of minimally qualified applicants for positions. C. The established uniform standards shall be applied to all applications withoutregard to the applicant’s political affiliation, race, color, handicap, genetic information, religion, national origin, sex, religious creed, age, or disability except as provided by law. D. All State of Mississippi Applications or resumes for the same job classification are afforded uniform and equal treatment in all phases of the evaluating process.

4.5.1 Evaluation of Applications A. After applicants are determined to have met the minimum qualifications for a position’s allocated job classification, they shall be assigned a passing disposition. B. Evaluations shall be determined by the amount of the education/training and experience documented on the applicant's State of Mississippi Application as compared to the minimum qualifications, characteristics of work, description of duties contained in the role summary for which application has been made, and by the job specific supplemental questions, if any.

C. The State Personnel Director shall determine a formula for the evaluation of the education/training and/or experience qualifications of the applicants. This formula shall give due regard to job relatedness as well as quantity of the education/training and/or experience. D. Any applicant claiming credit for education/training and/or experience gained through unpaid and/or volunteer activities and/or military service shall receive appropriate credit for such education/training and/or experience when it is related to the duties of the job classification for which application is made.

4.5.2 Disqualification of Applicants The State Personnel Director may refuse to evaluate an applicant or, after evaluating, may

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disqualify the applicant, remove the applicant’s name from the Referred List, refuse to certify an applicant on a Referred List, or may consult with the appointing authority in taking steps to remove a person already appointed if the individual:

A. Has provided job-related information which indicates inability to perform the tasks assigned to the job classification for which evaluated; B. Has made a false statement of material fact in the State of Mississippi Applicationor resume; C. Has used or attempted to use political pressure or bribery to secure an advantage in the evaluation process; D. Has directly or indirectly obtained information regarding the evaluation process to which an applicant is not entitled; E. Has failed to submit the State of Mississippi Application or resume correctly or within the prescribed time limits; F. Has taken part in the compilation, administration, or correction of the selection procedures applied; G. Has otherwise willfully violated the provisions of these rules; and/or H. Does not meet any one (1) of the minimum qualifications established for the job classification for which evaluated.

4.5.3 Notification of Evaluation Results

1. Applicants will be notified of their evaluation results in a timely manner.
2. The State Personnel Director may prohibit the disclosure of evaluation results by

phone, in person, or by any other means except electronically or by mail.

4.5.4 Adjustment of Errors A. The State Personnel Director shall take whatever action deemed necessary to correct a manifest error in the evaluation of an applicant’s qualifications for the job classification for which application is made. Due consideration will be given to the circumstances surrounding the cause of the error. B. Such corrective action may include, but is not limited to, removing an applicant’s name from the Referred List and/or canceling any Referred List deemed flawed due to the manifest error. C. Such corrective action shall not invalidate an appointment previously made unless the applicant fails to meet qualifications imposed by federal or state law, or does not possess licensure, registration, or certification required for the job class to which appointed.

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4.6 DESIGNATION OF VETERANS’ STATUS The veteran status of an applicant shall be designated on the Referred List, if the applicant is otherwise qualified to be placed on a Referred List. Veterans’ designations shall not be awarded for periods of active duty when duty was for “training purposes only” to meet obligations in the Reserve Forces, National Guard, etc. Terms in this section are as follows: A. Veteran: A person who has served in the active Armed Forces of the United States for a period of ninety (90) days during a period of war or armed conflict and was granted an honorable discharge there from; or was discharged there from for a service- connected injury in less than ninety (90) days. Mississippi Code Annotated § 25-9-301(a). B. Disabled Veteran: A veteran whom the Veterans Administration has certified to have a service-connected disability rating of at least thirty percent (30%) within the last ninety (90) days, or a veteran who was awarded the Purple Heart for wounds received in combat. Mississippi Code Annotated § 25-9-301(b). C. Proof of Eligibility: A certified copy of the veteran’s discharge papers and separation record or certification from the Veterans Administration or the Department of Defense will be accepted as proof of veteran status. Applicants requesting disabled veteran status shall submit, on such forms as may be required by the State Personnel Director, proof of disability certified by the Veterans Administration.

4.7 SELECTION PROCEDURE DEVELOPMENT AND VALIDATION

4.7.1 Development of Selection Procedures A. A comprehensive system of evaluation for all job classifications within the state service is maintained. B. The State Personnel Director determines the need for technical assistance to supplement staff expertise in the development of valid selection procedures. Subject to approval by MSPB, the State Personnel Director may contract for selection procedure services, purchase selection procedure material, or utilize qualified technical consultants. When technical assistance is required to supplement staff expertise, criteria for selecting said assistance shall consist of, but is not limited to, the lowest cost proposal, meeting time requirements set forth by the State Personnel Director, methodology to be used, and the amount of time of professional level staff which is allocated to the project.

4.7.2 Validation of Selection Procedures A. It is the intent of MSPB to validate selection procedures used as the basis for making employment decisions with regard to choosing prospective employees for employment or current employees for in-service placement. Selection procedures will be validated by methods and techniques that are feasible, practical, and consistent with federal guidelines and professional standards, as permitted by necessary levels of funding and staff.

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B. Important elements of job content shall be determined through interviews and/or the completion of appropriate questionnaires. Employees and/or supervisors and other subject matter experts shall identify and rate job tasks and related knowledge, skills, and abilities, as necessary. C. Employees and/or supervisors and other subject matter experts are required to evaluate potential selection procedure items under strict security provisions. D. Objective methods using employees’ and/or supervisors’ and other subject matter experts’ ratings of selection procedure items are used to establish minimum qualifications for each selection procedure validated.

4.8 REFERRAL OF APPLICANTS TO AGENCIES The appointing authority of hiring agencies shall appoint applicants to positions as follows: A. The State Personnel Director may determine to be invalid any appointments not made in conformance with MSPB procedures. B. All appointments to the state service shall be from a Referred List and made on a competitive basis, except as provided in 4.2.9. C. Names on Referred Lists shall be derived from applicants that have met the selection criteria for a job classification.

4.9 REFERRED LISTS – for job classifications requiring recruitment via the online recruitment software. For policies governing concurrent recruitment, please see Section 4.9.16. It is the policy of MSPB to certify applicants who meet the minimum qualifications to fill vacancies within the state service. Referred Lists shall be maintained in accordance with policies, rules, and procedures promulgated by MSPB. Selection and procedural requirements shall be balanced with the interest of economy. It is the applicant’s responsibility to review the policies and procedures pertaining to the maintenance of Referred Lists. MSPB shall make such policies and rules accessible to all applicants. MSPB may respond to applicant requests for information or assistance. A separate, original State of Mississippi Application is required for each job opening posting for which application is made.

4.9.1 Establishment and Maintenance of Referred Lists The State Personnel Director establishes and maintains Referred Lists necessary to provide a list of qualified candidates for positions in state service. The appointing authorities shall notify the State Personnel Director as far in advance as possible, but a minimum of five (5) working days, of a job opening to be posted for recruitment. The State Personnel Director is responsible for the establishment and maintenance of appropriate lists for all state service position openings postings except as provided for in Section 4.2.9. Referred Lists are categorized in NeoGov as: A. Regular and Promotional – state employees and the general public may

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apply; B. Departmental Promotional Only – agency employees only may apply; and

C. Transfer – state employees only may apply.

4.9.2 Preparation of Referred Lists A. After the State Personnel Director has determined that an applicant has met the evaluation criteria for a job classification, the applicant’s name is added to the appropriate Referred List. B. The names of referred applicants shall be placed on the list in alphabetical order. Applicants who have a Veterans or Disabled Veterans status will be designated as such on the Referred List. C. Promotional lists and Transfer lists shall be for all state service status employees. D. Reduction-In-Force (RIF) applicants, who apply within twelve (12) months of their separation date, shall be designated as RIF on the Referred List as provided in Section 4.9.3.

4.9.3 RIF/Reemployment Applicants A. Reduction-In-Force (RIF) Applicants

1. Any employee in a state service position, who has been laid off while in good standing in accordance with the rules governing RIF, may, upon submission of a current State of Mississippi Application within twelve (12) months of the termination date, be designated as RIF on the Referred List established for the job classification for which application is made. It is the responsibility of the terminated employee to notify the State Personnel Director of his or her RIF status for each application filed.
2. Reemployment into job classifications exempted from the selection process shall be made in the same manner as original appointments to the job classifications.
3. An applicant’s pass/fail disposition for the job classification from which terminated and for lower job classifications in the same job family will be determined by a rating of his/her education/training and experience. If for any reason the employee does not meet the current minimum qualifications for the job classification or lower job classes in the job family from which terminated, he/she may still be placed on the Referred List. However, any requirement set by state or federal laws or guidelines, or any requirement for a license, certification, or certificate of training must be met.
4. Applicants for higher job classes within the class series from which terminated or other job classes must meet the current minimum qualifications. B. Reemployment Applicants

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1. A former state service status and/or those probationary state service, part-time, time-limited, and/or other MSPB purview non-state service employees, who have completed at least six (6) months of continuous employment and who voluntarily terminated in good standing may apply for the Promotional and Transfer openings through submission of a current State of Mississippi Application within twelve (12) months of their termination date.
2. Reemployment into job classifications exempted from the selection process shall be made in the same manner as original appointments to the job classifications.
3. Applicants must meet the current minimum qualifications.

4.9.4 Promotional Referred Lists A. A state service status, probationary state service, part-time, time-limited, and/or other MSPB purview non-state service employee, who has been continuously employed for six (6) months in the agency where the opening occurs, may apply for a Promotional opening through submission of a current State of Mississippi Application.

B. Promotion into job classifications exempted from the selection process (See Section4.2.9) shall be made in the same manner as original appointments to the job classifications. C. Applicants must meet the current minimum qualifications.

4.9.5 Transfer Referred Lists A. A state service status, probationary state service, part-time, time-limited, and/or other MSPB purview non-state service employee who has been continuously employed for six (6) months, may apply for a Transfer opening through submission of a current State of Mississippi Application. B. Transfer into job classifications exempted from the selection process (See Section4.2.9.) shall be made in the same manner as original appointments to the job classifications. C. Applicants must meet the current minimum qualifications.

4.9.6 Open Referred Lists A. The applicant must file a valid State of Mississippi Application during an announced job posting. B. Applicants must meet the current minimum qualifications. C. Applicants are placed on a Referred List after meeting the minimum qualifications.

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4.9.7 Agency Only Non-Competitive Promotional Eligibility A. For non-competitive promotions into positions classified as non-state service or exempt from selection, the agency may consider any candidate employed by the appointing authority. For a permanent state service promotional position, the agency may consider any candidate who has completed at least six (6) months of continuous service.

B. Agencies shall submit a current copy of a State of Mississippi Application along with the appropriate position-employee data for those employees to be considered for agency-only, non-competitive promotion. C. Only those employees meeting the applicable selection criteria shall be approved for non-competitive promotion by the State Personnel Director.

4.9.8 Duration of Referred List A. The term of an applicant's name on the Referred List begins on the date of placement of the applicant's name on the Referred List and expires once the position is filled. B. The applicant’s time on a list shall expire automatically at the end of the appropriate validity period, which is seventy-five (75) calendar days from the date of issue unless the time is otherwise extended by the State Personnel Director in advance of the expiration date of the Referred List.

4.9.9 Request for Referred Lists A. To fill vacancies for positions, which are not exempt from the selection process, the appointing authority shall submit a request (requisition) for recruitment, which will result in the issuance of a Referred List after the closing date of the job announcement.

B. Initial appointments to full-time, state service positions or job classifications which are not exempt from the selection process shall be accomplished through Referred Lists.

C. A single request for a Referred List may be made for one (1) or more positions provided each position is for the same classification and in the same county or counties. D. A request for a Referred List shall be submitted by an individual duly authorized by the agency. E. Part-time appointments and appointments to time-limited positions shall be accomplished by the submission of position-employee data and a current copy of the State of Mississippi Application to the State Personnel Director. Candidates for these appointments are to possess the minimum requirements contained in the role summary and are not required to be appointed from a Referred List. F. Agencies may request Referred Lists for filling time-limited or part-time vacancies. Final authority for issuing Referred Lists rests with the State Personnel

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Director. G. Demotion of state service employees shall be accomplished by the submission of the position-employee data and a current copy of a State of Mississippi Application to the State Personnel Director. Candidates for demotion are to possess the minimum qualifications contained in the role summary. H. Emergency appointments shall be made in accordance with Mississippi Code Annotated § 25-9-107(c)(xii); and shall be accomplished by the submission of the position-employee data to the State Personnel Director. Except where otherwise required by federal or state law, licensure, certification or registration, such appointments are made without regard to minimum requirements contained in the role summary. Emergency appointments shall not exceed sixty (60) working days. I. In-service placement of incumbents as a result of a title change shall be accomplished by the submission of position-employee data. Title changes shall not be approved where incumbents do not meet minimum requirements for the new classifications except where an agency request has been approved under Sections 4.2.3 or 4.2.4. All title change requests shall be accompanied by a current copy of a State of Mississippi Application except when otherwise authorized by the State Personnel Director. J. A lateral transfer of a state service employee, or a state service employee who has completed six (6) months of his/her probationary period, into the same job class may be accomplished by the submission of the appropriate position-employeedata. K. Permanent appointments to full-time positions in job classes or positions, which are exempt from the selection process, shall be accomplished in accordance with 4.2.

4.9.10 Procedures for Completing a Recruitment Request When requesting recruitment to fill a vacancy, the following shall be in effect: A. Please reference the Mississippi State Personnel Board’s Recruitment and Selection software training manual for detailed instructions regarding the procedures to enter a recruitment request. B. The Mississippi State Personnel Board’s Recruitment and Selection software will automatically assign the Referred List request number.

C. Indicate requested recruitment type:

Open – To be used when the agency desires to recruit all qualified applicants.

Promotional – To be used when the agency desires to recruit qualified applicants employed by the particular master agency and meeting the criteria for placement on the promotional list. See Section 4.9.4.

Transfer – To be used when the agency desires to recruit qualified applicants

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employed by the state and meeting the criteria for placement on the transfer list. See Section 4.9.5. D. Special requirements should be noted. All requests for job related supplemental questions must be accompanied by appropriate justification and must be approved by the State Personnel Director prior to usage. E. Travel Schedule MUST be identified as: Some day only; Often day only; Some overnight; Often Overnight; or None. Shift Schedule MUST be identified as: Day only; Evening only; Night only. F. When employees are hired into vacant positions and will be required to work in multiple counties, all counties must be selected. G. The requisition shall be submitted by an individual duly authorized to sign for the agency. H. The requisition will be returned without action if not properly submitted.

4.9.11 Selective Certification Requests for selective certification of referrals are considered upon adequate justification submitted to the State Personnel Director. A. The State Personnel Director may provide for an individual participating in a MSPB approved agency co-op program, upon completion of the approved co-op program and subsequent graduation, to be selectively certified to fill a position on a non- competitive basis, provided the individual meets the minimum educational and/or experience requirements of the position.

B. Requests for selective certification shall be made by the appointing authority or designee.

1. The special requirements for selective certification must be clearly stated and justification for the request must be attached.
2. The State Personnel Director shall have the authority to modify and/or deny any request for selective certification.

4.9.12 Supplying of Referred Lists

A. No Referred List shall be issued unless the agency has a vacancy or an impending vacancy. The receipt by the State Personnel Director of a notice of termination with a specific date of termination within 60 days shall signify a vacancy or an impending vacancy.

B. Upon receipt of a properly filed requisition, a Referred List shall be submitted to the appointing authority within one (1) working day after the closing date of the associated job announcement. The Referred List shall contain the names of all

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applicants meeting the qualifications of the position and any job-related supplemental questions specified by the agency.

4.9.13 Appointments from Referred Lists

A. The appointing authority may appoint any applicant certified to the agency on the Referred List upon certification that the minimum qualifications are met. B. Initial appointments to full-time state service positions shall be made from those referred on the Referred List. C. The agency shall submit to the State Personnel Director notification of intent to appoint from a Referred List. Such notification shall consist of the actioned Referred List and position-employee data. D. An appointment from a Referred List shall be made within seventy-five (75) calendar days from the date of issue, unless the time is otherwise extended by the State Personnel Director in advance of the expiration date of the Referred List. An appointment cannot be made for a future hire date more than fifteen (15) calendar days after the expiration date of the Referred List. E. The expiration date is listed on each issue of the Referred List. F. The appointing authority may return the Referred List, without any action taken, prior to the seventy-five (75) day expiration period. The reason for such cancellation should be noted in the appropriate space provided in the system.

4.9.14 General Instructions for Actioning a Referred List

When filling vacant positions through open job announcements, a Referred List is issued by the

State Personnel Director in response to a properly filed requisition. The following shall be in effect:

1. A Referred List can be used only for positions (PINS) identified on the requisition.
2. Action taken concerning each referral should be noted in the appropriate space on

the Referred List according to the proper codes. Please reference the Training

Manual for detailed instructions regarding specific codes.

C. If selection is not made, a new requisition and posting is required.

D. The agency is responsible for maintaining documentation for each referral actioned

on the Referred List.

E. The date of appointment may not be earlier than the date the Referred List is issued.

The State Personnel Director may consider earlier dates when justified by the agency.

F. The life of a Referred List is seventy-five (75) days.

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4.9.15 Consideration of Reduction-in-Force and Reemployment Applicants A. Agencies are encouraged to consider any applicant whose name is designated as RIF on the Referred List. B. Agencies should give full consideration to any applicant who was terminated from the state in good standing within the past year.

4.9.16 Concurrent Recruitment The State Personnel Director shall authorize concurrent recruitment procedures for any job that requires posting via the online recruitment software. For concurrent recruitments initiated by the agency, the information contained in all recruitment avenues shall be substantially similar across all platforms regarding salary range, dates of advertisements, requirements, duties, shift, travel, etc. When planning on initiating a concurrent recruitment in conjunction with posting through MSPB, the agency must notify the Career Counseling Center of the other methods of recruitment to be utilized by the hiring agency prior to the job posting.

4.9.17 Correction of Errors in Certification Process A. When errors are corrected by the State Personnel Director, they may not nullify an active Referred List or appointment but may result in the removal of a name from the Referred List. B. In the event that a Referred List is flawed through error and the error is discovered before an appointment is made from the Referred List, the erroneous list may be withdrawn and a correct list issued.

C. In the event that a Referred List is flawed through error and is discovered after an appointment is made from the list, the list shall not be withdrawn, except by the direction of the MPSB Executive Director.

4.9.18 Confirmation of Availability for Appointment A. Agencies may make written, facsimile, electronic, or telephone inquiries to those referrals it chooses to interview. B. Agencies are solely responsible for maintaining supporting documentation concerning action taken on individuals whose names appear on a Referred List. C. Agencies are required to maintain documentation of compliance with the requirements of Mississippi Code Annotated § 25-9-351 (Selective Service Registration). Males between the ages of 18 and 26 must submit proof of Selective Service Registration as a condition for appointment and/or promotion.

4.10 APPLICANT’S REVIEW PROCEDURE The State Personnel Director shall establish a review procedure for assistance to applicants pertaining to the selection process.

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4.10.1 Review of Action Individuals or referrals requesting a review of actions of the Office of Classification, Compensation, and Recruitment shall make a written request to the Director of the Office of Classification, Compensation, and Recruitment. Such written request shall stipulate the reason the review is requested and shall contain documentation supporting the applicant’s position. Should the decision of the Director of the Office of Classification, Compensation, and Recruitment not prove satisfactory to the applicant, the applicant shall make a written request to the State Personnel Director for review of the action.

4.11 APPLICANT INTERVIEWS Any agency employee interviewing an applicant for a vacant position, whether for original or promotional appointment, should document each interview by making notes and maintaining a file of the following information: job title, interviewer’s name, date and time, names of those interviewed, questions asked, major topics covered, whether or not applicant was hired, and reasons for hire or non-hire. Agencies should ensure the interview process complies with applicable state and federal laws.

4.12 EMPLOYMENT AUTHORIZATION A. Employment Requirements Under the Immigration Reform and Control Act of 1986 (IRCA)

Under the Immigration Reform and Control Act of 1986, Public Law No. 99- 603, November 6, 1986 (IRCA), it is unlawful for an employer in the United States to hire an alien or to continue employing an alien, knowing the alien is an unauthorized alien. It is also unlawful for an employer to employ any individual without complying with certain provisions for verification of both identity and eligibility for employment. To comply with IRCA, state agency employers must examine certain documents, after an individual has been hired (the term "hire" under IRCA means the actual commencement of employment for wages or other remuneration), and attest on a form called the Form I-9, that the documents provided by the employee have been examined and that they establish both the employee’s identity and eligibility for employment. The employer must then retain the Form I- 9, which is subject to inspection by both the U.S. Immigration and Naturalization Service (INS) and the U.S. Department of Labor (DOL). IRCA also prohibits discrimination against applicants and employees because of national origin or citizenship status in matters involving hiring, recruitment, job referrals where a fee is involved, and discharges. However, persons lacking lawful status are not protected. For detailed instructions on completing the Form I-9, refer to the Handbook for Employers published by the INS, which can be found at http://www.uscis.gov. All state agency employers must adhere to IRCA and the rules and regulations pertaining thereto.

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B. Employment Requirements pursuant to Mississippi Code Annotated § 71-11-3

Effective July 1, 2008, state agencies under the purview of MSPB shall verify the employment authorization for any person or entity that is hired to perform work within the State of Mississippi and to whom a United States Internal Revenue Service Form W-2 or Form 1099 must be issued and any person or company that provides workers for another company, including but is not limited to leasing companies and contract employers. Verification of employment authorization must be conducted in accordance with the Federal E-Verify Program, and it shall be the responsibility of the employing agency to verify employment authorization and to maintain records of employment verification as required by state and federal laws. Source: Mississippi Code Annotated §§ 25-9-103, -119. C. Hiring Prohibition State agencies “shall not employ or continue to employ a person who has been convicted or pled guilty in any court of this state, another state, or in federal court of any felony in which public funds were unlawfully taken, obtained or misappropriated in the abuse or misuse of the person’s office or employment or money coming into the person’s hands by virtue of the person’s office or employment.” Source: Mississippi Code Annotated § 25-1-113(2).

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CHAPTER 5 – CLASSIFICATION AND COMPENSATION

5.0 INTRODUCTION The functions of classification and compensation have been subsumed into the Office of Classification, Compensation, and Recruitment. Any questions regarding these functions should be addressed to your Classification, Compensation, and Recruitment Analysts.

5.1 CLASSIFICATION The State Personnel Director shall maintain the statewide classification plan, which shall be based upon objective analysis of the duties of each employment position. The State Personnel Director shall assign each position a job classification from the inventory of classes based upon the duties performed. The statewide classification plan shall apply to state service as well as non- state service positions under the purview of MSPB. The plan shall be arranged so that positions essentially alike are grouped into an appropriate job classification, thereby ensuring uniform treatment; likewise, positions not so alike shall be grouped into distinctive job classifications, thereby ensuring recognition of the nature and extent of any differences. The assignment of a position to a job classification shall be based upon job analysis data, to include the Job Content section of the Performance Review Assessment (PRA) or the Role Description Questionnaire (RDQ), professionally accepted principles and guidelines for position classification, and review of role summaries. MSPB shall have the sole authority to limit, increase, combine, or delete job classifications in the statewide classification plan. Upon recommendation by the Director of the Office of Classification, Compensation, and Recruitment, a job classification may be deleted from the statewide classification plan if another job classification already adequately describes the class, or if there are no employees in that job classification, and an job classification may be inactivated when the job classification is not utilized by any agency. Further, upon evidence that two or more job classifications have substantially the same tasks, duties, responsibilities, and minimum qualifications, the Director of the Office of Classification, Compensation, and Recruitment may recommend that job classifications be combined.

5.1.1 Creation of New Job Families and Classifications MSPB shall have the sole authority to create new job classifications. To discourage the proliferation of unnecessarily similar job classifications, requests for new job families or classifications shall be approved by MSPB only upon the production of compelling documentation in support of the need to create new classes. In the absence of compelling documentation, such requests shall result in the positions being assigned to already existing job classification in the MSPB’s schedule of job classifications. The State Personnel Director, in his discretion, may authorize the creation of additional levels of workers within an existing family.

A. Family and class establishment requests must include the following documentation:

1. A detailed letter of justification signed by the agency head and addressed to the State Personnel Director, which includes: i. the total number of affected positions;

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ii. the types of job classification affected, if any; iii. the exact nature by which the job has evolved, and/or internal and external conditions precipitating establishment of the new class; iv. clearly drawn distinctions between the proposed class and the most similar classes in the existing MSPB inventory of job classes; v. the precise consequences of not establishing the new class; vi. why current job classifications do not meet current needs; and vii. an explanation of any discrepancy between the provided salary survey data and the requested salary range for the requested class. 2. The proposed role summary for the requested class. 3. All current regulatory and legal authority materials (including citations) governing performance of job functions or which mandate or require the creation of a new class. 4. Valid salary survey data submitted on a completed Agency Salary Survey Data Sheet which may be found at http://www.mspb.ms.gov. 5. Any other documentation requested by the Classification, Compensation, and Recruitment Analyst.

5.1.2 Role Summaries Each job classification shall have a unique role summary, which includes the minimum qualifications an individual should possess to perform the duties of the particular position at entry. Statements of job duties and responsibilities do not limit the authority of the appointing official to assign, direct, and control the work of employees. The use of a particular illustration of duties does not exclude others that are similar in nature, nor do the specifications dictate that each position allocated to the class will be assigned all the duties outlined. In determining the proper classification of a position, each class is considered to have entry-level characteristics as well as characteristics exhibited at full performance. No minimum qualification shall be established which excludes individuals based on age, sex, physical requirement, or disability unless such qualification constitutes a bona fide occupational qualification necessary for performance of essential functions.

5.1.3 Role Summary Revision When revision of an existing classification is requested by a user agency either through a change in the title, summary, or minimum qualifications, the Director of the Office of Classification, Compensation, and Recruitment shall evaluate the justification for the request. Only those revisions approved by the State Personnel Director or designee shall be implemented.

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A. Role summary revision requests must include the following documentation:

1. Detailed letter of justification to the Director of the Office of Classification, Compensation, and Recruitment which indicates: i. the total number of positions and type(s) of job classification affected in the agency; ii. quantitatively documented recruitment difficulties experienced (if any); iii. the exact nature by which the job has evolved, including clearly drawn distinctions between current specifications and proposed changes; iv. the precise consequences of not revising the role summary; and v. why the existing job classification does not meet current needs.
2. The agency must annotate the proposed revisions on the current MSPB role summary.
3. A current (less than twelve months old), Job Content section of the Performance Review Assessment or Role Description Questionnaire signed by the employee (if any) and current or prospective supervisor, for each affected position. A representative PRA or RDQ, appropriately signed, may be submitted when all incumbents perform substantially the same work.
4. All current regulatory and legal authority materials (including citations) governing performance of job functions.
5. Any other documentation requested by the Classification, Compensation, and Recruitment Analyst or Director. B. Revisions to job classifications currently on recruitment shall not be effective until the class is taken off recruitment.

5.1.4 Mandated Changes to Role Summaries and Minimum Qualifications It is the responsibility of the user agency to notify MSPB of changes to role summaries or minimum qualifications necessitated by state or federal laws, regulations, guidelines, or other lawful requirements for those respective classes utilized by the agency.

5.1.5 Role Summaries of Multiple User Agencies When two or more agencies utilize or wish to utilize the same job classification, the State Personnel Director shall evaluate the needs of all user agencies in determining the content of the role summary.

5.2 COMPENSATION The Variable Compensation Plan (VCP) shall be the primary instrument establishing compensation policy. MSPB shall administer appropriate compensation plans and additional compensation

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schedules in accordance with the policies established by the VCP for each fiscal year, congruent with the intent of the Legislature as expressed in appropriations language and all other pertinent rules, regulations, procedures, and statutes. It is the intent of the State of Mississippi to compensate its employees at a level sufficient to maintain market competitiveness necessary to recruit and retain a competent workforce as well as encourage excellence of performance. In establishing salaries for state employees, MSPB will ensure that our rates are competitive with rates in the external labor market, consistent with legislative direction, and equitable within each agency and across all state agencies under MSPB purview.

5.2.1 Pay Range Assignment The State Personnel Director or designee shall assign salary ranges to job classifications in recognition of the relative level of duties and responsibilities assigned to positions in an occupational class. Salary ranges for new job classifications will be based on valid salary survey data or established relative to comparable job classifications or classification series.

5.2.2 General Compensation Rules The rate of compensation certified by the State Personnel Director under these provisions constitutes total remuneration for services rendered. No supplementary compensation for additional work performed for the state is paid except as authorized under policies governing additional compensation. Mississippi Code Annotated § 25-9-119(2)(c).

A. All requests for salary certification shall be submitted to the Office of Classification, Compensation, and Recruitment. B. The State Personnel Director certifies all salaries within the state service and non- state service unless otherwise authorized by MSPB or by statute. C. In no case shall a salary increase or other action result in the incumbent exceeding the maximum salary of the job classification, salary of the agency head, or statutory maximum, unless specifically provided for in legislation.

D. In coordination with appointing authorities, MSPB may set the annual salaries of those appointed officials whose salaries are not otherwise set by statute who work on a full- time basis in the capacity of agency head, executive director, or administrator of any state department, agency, institution, board, or commission under the jurisdiction of MSPB as provided in Mississippi Code Annotated §§ 25- 9-101 et seq., in conformity with the MSPB’s compensation plan. Salaries of such officials who serve in their professional capacity as a physician, dentist, nurse practitioner, veterinarian, or attorney shall be set in accordance with Mississippi Code Annotated § 25-9-107(c)(xiii). E. Unless authorized by statute, no employee under the salary setting authority of MSPB shall receive an annual salary or compensation greater than 125 percent of the maximum salary fixed in law for the Governor, except for: a) the Executive

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Director of the Mississippi Development Authority as set by the Governor; b) the Commissioner of Child Protection Services as set by the Governor; and c) the Executive Director and the Chief Investment Officer of the Public Employees’ Retirement System. In addition, no employee within an agency shall receive an annual salary greater than the agency head. However, in accordance with Mississippi Code Annotated § 25-3-39(2), MSPB, based upon its findings of fact, may exempt physicians and actuaries when the acquisition of such professional services is precluded based on the prevailing wage in the relevant labor market. Compensation, for the purposes of this section, is defined as the employee’s base salary and any additional or special compensation, less paid fringe, authorized by state or federal law or as otherwise provided in MSPB policy. Further, agencies are required to ensure that no employees subject to the overtime provisions of the Fair Labor Standards Act of 1938, as amended, are scheduled to work hours that could cause the employee’s total annual compensation to exceed that of the governor or the agency director. F. Payment of retroactive pay shall be certified by the State Personnel Director for employees in the state service in accordance with the Constitution of Mississippi, Article 4, Section 96 (1890). Generally, an administrative error justifies retroactive pay only when an employee was legally owed money that due to the administrative error was not paid. See MS AG Op. 2014-0059, Mosley (February 21, 2014) and MS AG Op. 2014-0060, Mosley (February 22, 2014). G. The pay grade of an employee in a supervisory status should be superior in salary range to that of the employees being supervised. Exceptions will be considered by the Office of Classification, Compensation, and Recruitment on a case-by-case basis. So as not to violate the principle of seniority or time-in-service, a subordinate employee may have an actual salary equal to or greater than the supervisor. H. The rate of compensation to be paid an employee or prospective employee shall be certified on the basis of the standard work period for full-time employment and in conformity with the salary range assigned the job class for which employed. Payment for part-time service shall be certified on this basis and in proportion to time actually worked. An employee’s starting salary shall be set in accordance with the salary range of the job class to which he or she is assigned. The monthly rate of the corresponding salary is to be used for positions authorized to work forty hours per week and the hourly rate is to be used for positions authorized to work less than forty hours per week.

5.2.3 Implementation of Salaries An appointing authority shall notify the Director of the Office of Classification, Compensation, and Recruitment of the need to establish a salary or to adjust an existing salary as the result of an approved employment position or personnel transaction in accordance with reporting procedures. Mississippi Code Annotated § 25-9-119(2)(c).

A. Only those salary increases resulting from approved position and personnel transactions for which provisions have been made during the legislative

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appropriations shall be implemented during the fiscal year, except where MSPB authorizes implementation outside the condition of this rule. B. All salary adjustments shall be effective on the first day of the next payperiod.

5.3 ALLOCATION OF EMPLOYMENT POSITIONS State service positions and those non-state service positions under the purview of MSPB shall be allocated by the State Personnel Director to an appropriate job classification based on the level and complexity of tasks, duties, and responsibilities assigned to that position.

5.3.1 Title Changes MSPB provides for the adjustment in classification of a position through the title change process when the Office of Classification, Compensation, and Recruitment determines that significant job content, responsibility, and accountability changes have occurred. Downward and lateral title change requests are processed throughout the year. Upward title changes are typically requested through the legislative budget process in accordance with the provisions of the Staff Management Planning Instructions for the appropriate fiscal year. However, each agency head shall have the opportunity to document the need for a title change by demonstrating that a bona fide staffing need exists that cannot be adequately addressed through normal budget procedures. MSPB will consider title changes outside the legislative process only upon certification by the agency director that adequate funds are available. The submission of any transaction through OSR shall be considered an official request from the agency head or appointing authority. Such submission shall serve as certification that adequate funding is available.

5.3.2 Requests for Title Changes (Upward, Downward, Lateral) Requests for title changes must be submitted through OSR and supporting documentation sent to the agency’s Classification, Compensation, and Recruitment Analysts. In addition, title change requests for filled positions which exercise supervisory responsibilities and meet criteria identified in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year, should also be submitted to the State Personnel Director in a detailed letter of justification, together with the appropriate documentation, and will be presented to MSPB for its approval. For all other title change requests, the notes as entered into OSR serve as the request’s justification; however, when deemed necessary, the agency’s Office of Classification, Compensation, and Recruitment Analysts may request additional justification. All title change requests approved by MSPB or staff will be effective on the first day of the next pay period. Title changes at the worker level within the same job family may be approved by the agency’s Office of Classification, Compensation, and Recruitment Analysts. Upward title changes of vacant positions at the worker level but changing job families must be approved by the Director of the Office of Classification, Compensation, and Recruitment. Upward title changes of filled positions at the worker level and changing job families must be approved by the State Personnel Director or designee. The justification for title change requests must be entered into OSR with the following information

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entered either into the OSR Notes Section or in a letter to the State Personnel Director:

1. A description of how the position’s duties have substantially changed,
2. Why the agency believes the proposed classification better describes the new

duties,

C. A description of the consequences, if any, of disapproval of the request,

D. A valid Job Content section of the Performance Review Assessment (PRA) or Role Description Questionnaire (RDQ), completed within the last twelve months and signed by the position’s incumbent and direct supervisor, or, if vacant, by the direct supervisor only, or the same information entered into the comment section on the transaction in the OSR, E. Organizational structure adjustments impacted by the change should also be entered for the proposed placement for which title change is requested, as well as the placement of any other relevant positions,

F. Copies of any federal or state regulations, case law, or statutes that have bearing on the proposed action,

G. Justification for any change from non-state service to state service, or the reverse. In either case, statutory authority must be cited. Mississippi Code Annotated § 25-9- 107(c). Incumbents of filled positions changing from non-state to state service status must be selected from a Referred List, except where the proposed classification is exempt from the initial competitive selection process,

H. A current (completed within the last twelve months) State of Mississippi Application or resume if filled,

I. A written acknowledgement signed by the affected employee, if the request is a downward title change,

J. A written acknowledgement signed by the affected employee indicating agreement with loss of state service status, if applicable, and

K. Any additional documentation requested by the Classification, Compensation, and Recruitment Analysts. On-site desk audits, conducted by MSPB staff, may be required as a component of the analysis of upward title change requests. Before the request can be approved, the incumbent must have a valid performance review rating. Following approval, OSR will create a new 365-day performance review period beginning the effective date of the reallocation. The authorized salary for an upward title change of a filled position shall be in accordance with the provisions indicated in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year.

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5.4 APPOINTMENTS Vacancies which are not filled by transfer, promotion, or demotion shall be filled by probationary appointment, reemployment, or emergency appointment. Salaries paid upon appointment shall be the minimum that will attract suitably qualified applicants for job openings consistent with the provisions set forth in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year. The date which is entered into the statewide human resources information systems as the employee’s hire date for any appointment shall be the first date on which the employee reports for work. Requests to change this date once entered and processed by MSPB must be submitted in writing by the agency head providing a justification for the requested change.

5.4.1 Original Appointment and Salary Determination Original appointments are made competitively from a Referred List, concurrent recruitment, or are made non-competitively where exempt from the selection process. See Chapter 4.

5.4.2 Standard New Hire Salary At no time will an employee bepaid below the federally mandated minimum wage. See the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year to determine the authorized salary for a new hire.

5.4.3 Open-Competitive New Hire

When hiring personnel to fill a vacancy, the following shall be in effect:

1. The hire date cannot be earlier than the date of issue of the Referred List.
2. The salary shall be set in accordance with provisions outlined in the policy

memorandum, Administration of the Variable Compensation Plan, for the current

fiscal year.

C. All competitive new hires shall be probationary.

D. For an open-competitive new hire of a probationary employee, the employee shall

retain his/her status date and is required to complete the balance of the existing

probationary period.

E. OSR will create a new 365-day performance review period beginning the effective

date of the personnel transaction.

F. The following documentation is to be submitted to the Office of Classification,

Compensation, and Recruitment for a competitive new hire request:

1. The Referred List must be actioned; or
2. For concurrent recruitment appointments, in addition to attaching the resume to the action in the online system of record, submission of the following information via the current, applicable methodology:

a. Employee Name

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2. Hiring Agency
3. Job Title
4. Concurrent Recruitment avenues utilized (job boards, agency website, etc.)
5. Number of applications received
6. Number of candidates interviewed

The details of this information including avenues, applicants, and interviews are subject to random audits by the Office of Classification, Compensation, and Recruitment.

3. Detailed justification on how the proposed salary was determined. (Refer to the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year.)

Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Analysts for more detailed information regarding the hiring of an employee.

5.4.4 Overlap New Hire and New Hire Flexibility

In rare circumstances, an agency may elect to hire a replacement up to ninety days prior to the

separation of an employee in order that the separating employee may provide specialized training

to the new employee.

The effective date of the Overlap New Hire cannot be greater than ninety calendar days from the

effective date of separation by the separating employee.

The following documentation is to be submitted for competitive overlap new hire requests:

1. The actioned Referred List; or
2. For concurrent recruitment appointments, in addition to attaching the resume to the

action in the online system of record, submission of the following information via

the current, applicable methodology:

1. Employer Name
2. Hiring Agency
3. Job Title
4. Concurrent Recruitment avenues utilized (job boards, agency website, etc.)
5. Number of applicants received
6. Number of candidates interviewed; and

C. Detailed justification on how the proposed salary was determined. (See the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year.) The following documentation is to be submitted for non-competitive overlap new hire requests:

A. A completed State of Mississippi Application or resume; and

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B. Detailed justification on how the proposed salary was determined. (See the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year.)

5.4.5 Non-Competitive New Hire and New Hire Above Start When non-competitively hiring to fill a vacant position, the following shall be in effect: A. The hire date for a non-competitive/exempt appointment will be the date the individual begins work. Employees hired into those job classifications and positions exempt from the selection process pursuant to MSPB action or by the nature of their service type must meet the selection criteria. The request must be received by MSPB within the same pay period the individual begins work. B. For concurrent recruitment appointments, in addition to attaching the resume to the action in the online system of record, submission of the following information via the current, applicable methodology: a. Employee Name b. Hiring Agency c. Job Title d. Concurrent Recruitment avenues utilized (job boards, agency website, etc.) e. Number of applications received f. Number of candidates interviewed C. The authorized salary for a non-competitive new hire shall be set in accordance with provisions outlined in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year. D. Appointments to state-service positions for exempt job classes shall be probationary. E. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction.

F. The following documentation is to be submitted for a non-competitive new hire request:

1. A completed State of Mississippi Application or resume; and
2. Detailed justification on how the proposed salary was determined. (See the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year.)

5.4.6 Part-Time and Time-Limited New Hire The appointment of an individual scheduled to work less than forty hours a week and/or less than twelve months per year constitutes an hourly or part-time appointment. When hiring personnel to fill a part-time or time-limited position, the following shall be in effect:

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1. The hire date cannot be earlier than the date of the referred list.
2. For concurrent recruitment appointments, in addition to attaching the resume to the

action in the online system of record, submission of the following information via

the current, applicable methodology:

1. Employee Name
2. Hiring Agency
3. Job Title
4. Concurrent Retirement avenues utilized (job boards, agency website, etc.)
5. Number of applicants received
6. Number of candidates interviewed

C. The authorized salary for a part-time or time-limited new hire shall be in accordance with the provisions outlined in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year. D. All part-time or time-limited employees must meet selection criteria. E. All part-time positions shall be non-state service in accordance with Mississippi Code Annotated § 25-9-107(c)(xi). The status code “11” will populate in the “service status” field on the Maintain Employee Agency Info screen in OSR.

F. All time-limited positions shall be non-state service in accordance with Mississippi Code Annotated § 25-9-107(c)(xiv). The status code “14” will populate in the “service status” field on the Maintain Employee Agency Info screen inOSR. G. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction. H. The following documentation is to be submitted for a part-time or time-limited new hire request:

1. The referred list must be actioned; and
2. Detailed justification on how the proposed salary was determined. (See the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year.)

5.4.7 Emergency Appointment An emergency appointment is defined as the employment of an individual for a specified period of time to perform tasks which directly or indirectly involve the continuing care and protection of life or property. A. Emergency appointments shall be limited to classes and positions normally filled competitively from a Referred List. The Office of Classification, Compensation, and Recruitment shall evaluate each request for emergency appointment prior to certification based on the following criteria:

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1. Justification provided by agency;

2. Patient and/or security support;

3. Number of vacancies in the class within the requesting agency; and

4. The period of time those vacancies have existed. B. The effective date cannot be earlier than the date approved by the Office of Classification, Compensation, and Recruitment. C. The authorized salary for an emergency hire shall be the start salary of the class to which appointed. D. Individuals hired on an emergency basis shall be designated by a status code of “12” in the “service status” field on the Maintain Employee Agency Info screen. E. An emergency appointment shall not exceed sixty working days. The appointing authority shall be responsible for initiating appropriate action to preclude any emergency appointment extending beyond the limit of sixty working days. F. The following documentation must be submitted with an emergency appointment request:

5. A completed State of Mississippi Application or resume;

6. Detailed justification outlining the emergency nature of the appointment; and

7. Proof of valid licensure, registration, or certification when required under state or federal statute for the job class to which appointed.

5.4.8 Reappointment (Return from Authorized Leave of Absence) An individual separated on an authorized leave of absence, e.g., military, extended illness, education, and leave of absence under provisions of Mississippi Code Annotated §§ 25-3-93, 25- 3-95, 25-9-125, and 33-1-21 is eligible for reappointment. When reappointing an employee RETURNING FROM AUTHORIZED LEAVE OF ABSENCE, the following shall be in effect:

A. For non-military leaves of absence, eligibility for reappointment is valid for one year from the date of the beginning of leave. For reappointment eligibility for leaves of absence due to military duty, the provisions of the federal Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 apply. B. Reappointment under these provisions shall be restricted to the same job classification as occupied at the time of separation, except as provided for by USERRA. C. Upon reappointment, the employee’s status shall be the same as it was at the time of separation and shall be reflected by the status code in the “service status” field

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and the status date. If the employee was state service at separation, the status date shall not be altered. If the employee had not completed the twelve-month probationary period, a new status date shall be determined by adding the number of days out of state service to the status date at the time of separation to allow the individual to complete twelve months of supervised probation. D. The effective date shall be the date requested by the agency. The request must be received by MSPB within the same pay period the individual returns to work. E. The authorized salary for a reappointment shall be no more than the current salary at the time of the separation unless general compensation adjustments were effected since the date of the separation. Such adjustments shall be added to the current salary where applicable. F. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction.

5.4.9 Reemployment into the State Service An individual separated in good standing for reasons other than an authorized leave of absence may be reemployed into the same job class from which separated. A. Individuals reemployed into a different job class from which separated shall be hired under the provisions for Appointments in this chapter. B. The appropriate selection criteria shall apply.

C. The effective date for the employees shall be:

1. RIF Reemployment List – cannot be earlier than the date the Referred List was issued.
2. Alternative Reemployment List – cannot be earlier than the date the Referred List was issued.
3. The hire date for a non-competitive/exempt reemployment will be the date the individual begins work. Employees hired into those job classifications and positions exempt from the selection process pursuant to MSPB action must meet the selection criteria. The request must be received by MSPB within the same month the individual begins work.

D. The authorized salary for reemployment shall be no more than the current salary at the time of separation unless salary adjustments were effected since the date of the separation. Such adjustments shall be added to the current salary where applicable. E. Upon reemployment due to a Reduction-In-Force, the employee’s status date and hire date shall be the same as it was at the time of separation. If the employee was permanent at separation, the status date and hire date shall not be altered. If the employee had not fully completed the probationary period, a new status date shall be determined by adding the number of days out of state service to the status date at

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the time of separation. Reemployment for reasons other than a Reduction-In-Force shall receive a new status date equal to the new hire date. F. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction. G. The following documentation must be submitted with a reemployment request:

1. An actioned Referred List, where applicable; and
2. A completed State of Mississippi Application or resume, where applicable.

5.4.10 Retiree Employment When requesting the reemployment of a retired state employee, not necessarily returning to the same job class from which retired, and for (1) a period of time not to exceed one-half of the normal working days for the position during which the employee will receive no more than one-half of the salary for the position, or (2) for a period of time in any fiscal year sufficient in length to permit a retiree to earn not in excess of 25 percent of retiree’s average compensation (Note: If a retiree is hired outside the guidelines noted above, the retirement benefit of such retiree must be terminated immediately and the employer must immediately begin reporting that individual to PERS as any other active member would be reported.) See Mississippi Code Annotated § 25-11- 127. A. The effective date shall reflect a minimum of ninety (90) days from the date of Retirement. PERS Regulation 34 provides that if the retired member is reemployed by the same or another covered employer in any capacity, including that of an independent contractor as well as service without pay, within ninety (90) days from the effective date of retirement, or is guaranteed such reemployment, the member shall be considered to have continued in the status of an employee and not to have separated from state service. B. The authorized salary shall be no more than the salary paid to the individual prior to the employee’s retirement, except that the salary shall not exceed the end salary of the pay range of the job class to which appointed. C. Upon reemployment of a retired employee, the status and hire date shall reflect the new date of hire and status.

D. The employer is required to notify PERS of the reemployment of a retiree under one of the above exceptions within five days of reemployment on a Form 4B, Certification/Acknowledgment of Reemployment of Retiree. E. OSR will create a new 365-day performance period beginning the effective date of the personnel transaction. F. The following documentation must be submitted with reemployment of a retired employee request:

1. An actioned Referred List, where applicable;
2. A completed State of Mississippi Application, where applicable;

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3. Detailed justification, which describes the circumstances surrounding the reemployment of a retiree. After the appointment process is complete, display the action and press F5 to add notes.

5.4.11 Dual Employment and Salary Determination An individual may be employed by more than one state agency or by a state agency and an institution of higher learning in two part-time positions, or one full-time and one part-time position. Policies, rules, and procedures governing appointments shall apply.

Under Fair Labor Standards Act (FLSA) regulations, the State of Mississippi is considered to be one employer. Therefore, eligible (non-exempt) employees who work for two entirely different agencies in state government in the same workweek are considered joint employees and must be paid overtime or must be provided compensatory time off for a combination of hours worked in excess of forty (40) hours. Overtime payment or provision of compensatory time should be computed according to current FLSA rules issued by the U.S. Department of Labor.

5.5 IN-SERVICE MOVEMENT All in-service movement is subject to the provisions of the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year. In addition, the following provisions apply.

5.5.1 Promotions

Promotions may be made in one (1) of three (3) ways subject to approval of the Director of the

Office of Classification, Compensation, and Recruitment:

1. Agency-only competitive;
2. Agency-only non-competitive; and
3. State service competitive.

See also Chapter 4.

5.5.2 Promotion (Intra-Agency) When requesting the promotion (within agency/master agency) of a state service employee who has satisfactorily completed six months of service, the following shall be in effect:

A. A valid performance review rating shall be required prior to processing the transaction.

B. Promoted employees retain status date and hire date in the new position to which promoted.

C. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction.

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D. For an intra-agency promotion request of a non-competitive promotion, an agency must submit a completed State of Mississippi Application or resume. Additionally, agencies must complete the Non-Competitive/Concurrent Appointment Form referenced in Section 5.4.3.F.2.

5.5.3 Promotion (Inter-Agency) When requesting the promotional transfer (inter-agency) of a state service employee, the following shall be in effect: A. The requested effective date must coincide to reflect no break in service and may be as follows:

1. Competitive State Service – effective any time during the month provided it is no earlier than the date the Referred List was issued.
2. The effective date for a non-competitive/exempt promotion will be the date the individual begins work. Employees hired into those job classifications and positions exempt from the selection process pursuant to MSPB action or by the nature of their service type (part-time and time-limited positions) must meet the selection criteria. The request must be received by MSPB within the same month the individual begins work. B. Promoted employees retain status date (except as otherwise stated in section 2.1.1) and hire date in the new position to which promoted. C. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction. D. The following documentation is to be submitted with a promotion request:
3. A Referred List, if a competitive promotion; and
4. A completed State of Mississippi Application or resume. Additionally, agencies must complete the Non-Competitive/Concurrent Appointment Form referenced in Section 5.4.3.F.2, if a non-competitive promotion. E. It is the transferring agency’s responsibility to enter into OSR the separation indicating an employee’s transfer on the correct day.

5.5.4 Lateral Transfer (Intra-Agency) When requesting the lateral transfer (within agency/master agency) of a state service employee to a position in state service, the following shall be in effect: A. Only lateral transfers in which the employee is changing job classifications will be considered. An agency may request in writing that the State Personnel Director or designee waive this policy in certain limited circumstances. B. A valid performance review rating shall be required prior to processing the

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personnel transaction. C. Laterally transferred employees retain their status date (except as otherwise stated in Section 2.1.1) and hire date in the new position to which transferred. D. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction. E. The following documentation is to be submitted with a lateral transfer (intra- agency) request if the transfer is to a different job classification:

1. The actioned Referred List, where applicable; and
2. A completed State of Mississippi Application or resume. Additionally, agencies must complete the Non-Competitive/Concurrent Appointment Form referenced in Section 5.4.3.F.2, where applicable.

5.5.5 Lateral Transfer (Inter-Agency) When requesting the lateral transfer (inter-agency) for a state service employee to a competitive or non-competitive position in state service, the following shall be in effect:

A. The requested effective date may be as follows:

1. Competitive State Service – effective any time during the month, provided it is no earlier than the date the Referred List was issued.

2. The effective date for a non-competitive/exempt lateral transfer will be the date the individual begins work. Employees hired into those job classifications and positions exempt from the selection process pursuant to MSPB action must meet the selection criteria. The request must be received by MSPB within the same month the individual begins work. B. Laterally transferred employees retain status date (except as otherwise stated in section 2.1.1) and hire date in the new position to which transferred. C. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction. D. The following documentation is to be submitted with the lateral transfer (inter- agency) request if the transfer is to a different job classification:

3. The actioned Referred List, where applicable; and

4. A completed State of Mississippi Application or resume. Additionally, agencies must complete the Non-Competitive/Concurrent Appointment Form referenced in 5.4.3.F.2, where applicable. E. It is the transferring agency’s responsibility to enter into OSR the separation indicating an employee’s transfer on the correct day.

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5.5.6 Demotional Transfers An employee may be demoted because of inadequate performance, disciplinary reasons, a reduction-in-force, or voluntarily. When the affected employee is a state service status employee, written notice of intent to affect any demotion and the reason for such action shall be given to the employee at least ten working days prior to the effective date of the demotion. All actions adversely affecting compensation or employment status require that the state service status employee be given an opportunity for a conference with the appointing authority or designated representative and to respond in writing prior to any such action.

5.5.7 Demotional Transfer (Intra-Agency) When requesting the demotional transfer (intra-agency) of an employee (voluntary or for cause), the following shall be in effect: A. A valid performance review rating shall be required prior to processing the transaction as requested from the agency. B. Demoted employees retain status date (except as otherwise stated in Section 2.1.1) and hire date in the new position to which demoted. C. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction.

D. The following documentation is to be submitted with a demotional transfer (intra- agency) request:

1. A completed State of Mississippi Application or resume. Additionally, agencies must complete the Non-Competitive/Concurrent Appointment Form referenced in Section 5.4.3.F.2;
2. A statement signed by the employee acknowledging the demotion (voluntary only) or a statement from the agency that the demotion is disciplinary (non- voluntary); and
3. Detailed justification if demotion with extraordinary circumstances is requested. After the demotion process is complete, display the action and press F5 to add notes describing the need to retain the employee’s current salary.

5.5.8 Demotional Transfer (Inter-Agency) When requesting a demotional transfer (inter-agency), the following shall be in effect: A. The requested effective date shall be as follows:

1. Competitive State Service – effective any time during the month provided it is no earlier than the date the Referred List was issued.
2. The effective date for a non-competitive/exempt demotional transfer (inter- agency) will be the date the individual begins work. Employees hired into those job classifications and positions exempt from the selection process

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pursuant to MSPB action or by the nature of their service type (part-time and time-limited positions) must meet the selection criteria. The request must be received by MSPB within the same month the individual begins work. B. Determination of salary for a demotional (inter-agency) transfer shall be in accordance with the policies and procedures outlined in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year. C. Transferred and demoted employees retain their status date (except as otherwise stated in section 2.1.1) and hire date in the new position to which transferred and demoted. D. OSR will create a new 365-day performance review period beginning the effective date of the personnel transaction. E. The following documentation is to be submitted with a demotional transfer (inter- agency):

1. The actioned Referred List, where applicable; and
2. A completed State of Mississippi Application or resume. Additionally, agencies must complete the Non-Competitive/Concurrent Appointment Form referenced in Section 5.4.3.F.2, where applicable.
3. It is the transferring agency’s responsibility to enter into OSR the separation indicating an employee’s transfer on the correct day.

5.5.9 Dual Transfer (Intra-Agency) When transferring positions between two current employees, the applicable preceding policies, rules, and procedures governing promotions, lateral transfers, and/or demotions shall apply.

5.6 DETAIL TO SPECIAL DUTY When the services of an employee are temporarily needed in a position at the supervisory level within the employing agency other than the position to which regularly assigned, the employee may be required, at the discretion of the appointing authority, to perform the tasks of such a position for a period not to exceed 180 days without a change in position title or employee status.

A. A probationary employee in a state service position assigned to special duty shall not be required to serve an additional probationary period. B. When an employee is assigned the duties of a position that is in an equal or higher pay range, a temporary salary award up to 10 percent above the detailed employee’s current salary may be awarded when justified and approved by the Director of the Office of Classification, Compensation, and Recruitment. The position to which the employee is being detailed must be vacant or filled by an incumbent who is not available for duty due to an authorized leave. C. In unusual circumstances, a detail beyond 180 days may be authorized by the Director of the Office of Classification, Compensation, and Recruitment upon

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written request by the appointing authority. D. If an employee is being detailed to a filled position, the incumbent of the filled position must have been absent for at least thirty days prior to the request for detail. In extraordinary circumstances, the agency may request Director of the Office of Classification, Compensation, and Recruitment approval of actions which do not meet this 30-day requirement. E. Any salary increase certified for special duty shall be withdrawn upon completion of special duty. F. No more than one employee may be awarded Detail to Special Duty Pay for assuming the responsibilities and functions of a single position. G. The following documentation is to be submitted to the agency’s Classification, Compensation, and Recruitment with a Request for Detail to Special Duty:

1. Detailed justification which indicates the position to which the employee is being detailed and the duties to be assigned while performing in the detail capacity;
2. A statement from the employee acknowledging the temporary salary increase and the subsequent salary withdrawal upon completion of special duty; and
3. Organizational chart pages, signed by the appointing authority, depicting both the employee's position and the position to which the employee will be detailed.
4. If an employee is being detailed to a filled position, the date on which the absent employee is expected to return. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Analysts for more detailed information regarding the submission of Detail to Special Duty Pay requests.

5.6.1 DFA Pilots and Aircraft Maintenance Director The Executive Director of the Department of Finance and Administration has authority to set the salaries of all licensed jet pilots and aircraft maintenance director assigned to the Office of Air Transportation within the salary range set by MSPB. Such pilots are not eligible for Pilot’s Pay Additional Compensation. Further, all licensed jet pilots assigned to the Office of Air Transportation Services shall serve at the will and pleasure of the Executive Director of the Department of Finance and Administration.

5.7 ADMINISTRATION OF ADDITIONAL COMPENSATION SCHEDULES MSPB shall establish and administer additional compensation schedules to accommodate the full and efficient operation of an agency in the delivery of essential services within or outside of the standard work schedule or the standard workplace.

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5.7.1 Application of Additional Compensation In accordance with the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year, the State Personnel Director may recommend to MSPB those job classifications certified for payment under provisions governing additional compensation. The State Personnel Director, with the approval of MSPB, shall amend additional compensation schedules based upon evaluation of labor market conditions and the economic value of comparable services within relevant public sectors and the relevant private labor market, if any.

5.7.2 Agency Authorization for Additional Compensation A. To request authorization of additional compensation, the appointing authority shall submit a letter to the State Personnel Director fully explaining and justifying the request. B. Determination as to agency authorization for additional compensation shall be subject to approval by MSPB.

5.7.3 Certification of Employees for Additional Compensation The appointing authority shall indicate in OSR those positions to be certified payment of additional compensation and of the need to decertify employees no longer working under the conditions set forth in the provisions governing additional compensation.

5.7.4 Job Classification Authorization or Rescindment of Additional Compensation A. The appointing authority shall indicate in OSR which job classifications are necessary to accommodate the full and efficient operation of the agency in the delivery of essential services within or outside the confines of the standard work period and the standard work schedule as defined below:

1. Standard work period: an eight-hour workday, a forty-hour workweek, a 173.929- hour work month, and a 2087.143-hour work year.
2. Standard work schedule: the hours of work established by an appointing authority for individuals employed within the agency, which typically begin at 8:00 a.m. and end at 5:00 p.m. each day with a one-hour interval for a lunch period. B. Any position change affecting the classification of a position certified for additional compensation will cause the certification to be automatically removed from the position.

C. Where certification is required as a prerequisite for authorization of additional compensation for a job classification, the agency is responsible for verifying receipt of certification by the individual for which additional compensation is requested and indicating in the OSR payroll segment the hours worked which qualify for additional compensation. D. An individual shall not be certified to receive more than three types of additional compensation during a single pay period.

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5.8 COOPERATIVE EDUCATION COMPENSATION PLANS Upon requests by appointing authorities, MSPB may establish and maintain compensation plans to remunerate individuals enrolled in designated fields of study at institutions of higher learning, junior colleges, community colleges, or technical schools who alternate between intervals of state service or non-state service employment followed by unpaid intervals during training for the designated job classification.

5.9 PRODUCTIVITY Productivity increases are performance- b ased salary increases awarded at the discretion of the agency director and management. Productivity allows an agency director to reward excellence among agency employees. Productivity awards must be thoroughly documented by current performance evaluations and are awarded in accordance with policies and procedures outlined in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year, if the Legislature appropriates specified funds for this purpose. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Analysts for more detailed information regarding requests for productivity increases.

5.10 LONGEVITY Longevity awards are lump sum payments awarded to employees who have reached the maximum salary (end salary) for their respective job classes. Longevity payments are awarded in accordance with policies and procedures outlined in the policy memorandum, Administration of the Variable Compensation Plan, for the current fiscal year, if the Legislature appropriates specified funds for this purpose.

5.11 EMPLOYER REQUIREMENTS UNDER FLSA The Fair Labor Standards Act of 1938, as codified at 29 U.S.C. § 201 and following (hereinafter referred to as “FLSA”), is a federal law which is applicable to all state agency employers. The FLSA provides that all covered, or non-exempt, employees must be paid at least a minimum wage, and must be paid at the rate of one and one-half times, or time-and-a-half, their regular rate of pay for each hour over forty worked during a single workweek. State agency employers may, in lieu of cash payment for overtime, pay their non-exempt employees in compensatory time at the rate of one and one-half hours for each hour over forty worked during a single workweek. Police and firefighters, emergency response personnel, and employees engaged in seasonal activities may accrue up to 480 hours of compensatory time. Other non-exempt employees may only accrue up to 240 hours of compensatory time. After a non-exempt employee has accrued the maximum amount of compensatory time, the employer is required to pay the employee overtime for the additional overtime hours worked in cash. A state agency employer may require a non-exempt employee requesting leave to exhaust an FLSA compensatory leave balance prior to use of any personal and/or medical leave, and a state agency employer may compel a non-exempt employee to use FLSA compensatory time and take time off work to reduce a compensatory time balance below the 480 or 240 hour thresholds.

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The U. S. Department of Labor (DOL) is responsible for the enforcement of the FLSA, and may investigate and gather data concerning wages, hours, and other employment practices. For assistance in complying with the FLSA, state agency employers may contact the area office of the Wage and Hour Division of the DOL. The federal regulations governing FLSA applicable to state agency employers in the area of compensatory time and other areas may be found at 29 C.F.R. § 500. When requesting authorization under FLSA for payment of overtime compensation to non-exempt employees, the following shall be in effect: A. Each agency must petition MSPB and be approved to receive overtime compensation.

B. Each job classification to receive overtime compensation must receive prior approval by MSPB. C. Positions must be determined to be non-exempt from FLSA provisions, and so marked in OSR, before overtime compensation can be paid.

5.12 EMPLOYEE DATA CHANGES When requesting changes to employee data, the following shall be in effect: A. Employee data changes include changes in social security number, last name, first name, middle name, date of birth, race, sex, years of education, agency hire date, PIN entry date or status date.

1. Supporting documentation may be required in changing date of hire, PIN entry date, status date, social security number, and performance development rating.

2. Requests for hire date changes once entered and processed by MPSB must be submitted in writing by the agency head providing a justification for the requested change.

5.13 SEPARATIONS The effective date of separation shall be the last day the employee worked or utilized authorized leave. For a complete list of the Separation Reason Codes to enter into OSR, reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or contact your Classification, Compensation, and Recruitment Analysts.

5.14 SELECTIVE SERVICE REGISTRATION Mississippi Code Annotated § 25-9-351 provides that every male between the ages of eighteen and twenty-six who is required to register under the Federal Military Selective Service Act, 50 U.S.C. App. 453 and seeking employment with the State of Mississippi shall submit to theperson, commission, board or agency to which his application is submitted satisfactory documentation of his compliance with the draft registration requirements of the Military Selective Service Act prior

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to appointment. In accordance with Mississippi Code Annotated § 25-9-127, every male between the ages of eighteen and twenty-six who is required to register under the Federal Military Selective Service Act, 50 U.S.C. App. 453, and who is an employee of the State, shall not be promoted to any higher position of employment with the state until he submits to the person, commission, board, or agency by which he is employed satisfactory documentation of his compliance with the draft registration requirements of the Military Selective Service Act prior to promotion. To verify a registration or for information regarding who is and is not required to register, seethe Selective Service System’s website at http://www.sss.gov.

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CHAPTER 6 – STAFFING MANAGEMENT POLICIES

6.0 INTRODUCTION The Staff Management Program is authorized by Mississippi Code Annotated §§ 25-9-101 et seq. and applies to all agencies and positions within agencies under the purview of MSPB. See Mississippi Code Annotated § 25-9-107(d).

6.0.1 Purpose The Staff Management Program authorizes MSPB to monitor, control, and implement short and/or long-range organizational planning to achieve the most efficient and economical use of staffing positions within agencies. In support of the stated purposes, the Staff Management Program provides for the following: A. The establishment, consolidation, or abolishment of agencies and employment positions; B. The submission, approval, and determination of compliance of agency organizational and staffing plans, payroll, program budget data, and other essential personnel data; and C. The provision of timely reports or recommendations on agency organizations and staffing cost projections to the Department of Finance and Administration and the Legislative Budget Office during the budget process regarding the status of employment positions within agencies.

6.1 AGENCY’S ROLE IN THE STAFFING MANAGEMENT PROGRAM Each agency director is responsible for the continual evaluation of the agency’s mission and workload to ensure that staffing resources are consistent with legal authority, mission priority,and sound staffing management principles. Actions taken to ensure the maximum utilization of staffing positions include, but are not limited to, the following: A. Conducting long-range agency organizational planning in which organizational changes, additions or deletions of positions, or similar actions affecting budgetary requirements are anticipated and/or recommended for future fiscal years; B. Recommending elimination of non-essential agencies or positions; C. Recommending consolidation of agencies, positions, and activities when duplication of functions is indicated; and D. Establishing and maintaining a system of agency staffing management documentation and collection and retention of data. See Mississippi Code Annotated § 25-9-133.

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6.1.1 Reporting Data By the end of each quarter of the calendar year (i.e. March 31, June 30, September 30, and December 31) each state agency, department or institution shall submit to the State Personnel Board a report on the use of the paid parental leave provided under this section by the eligible employees of the agency, department or institution for the preceding fiscal year. The report should include the number of employees who have taken Paid Parental Leave and the number of hours that each employee has taken. The report should be submitted via a reporting mechanism established by MSPB. The director of each agency shall submit to MSPB all information deemed necessary by MSPB for the provision of required reports to the Governor, Legislature, Federal Government and general public. See Mississippi Code Annotated § 25-9-135(2).

Any agency requesting an exemption from the requirements of Miss. Code Ann. § 25-9-127(1) shall submit the required information to MSPB and the Legislature. See Mississippi Code Annotated § 25-9-127(8)&(9).

6.2 ESTABLISHMENT AND ABOLISHMENT OF AGENCIES Legislative appropriation of funds, Executive Order, Department of Finance and Administration budget escalation, the receipt of federal funds, or loss of funding or authorization shall require the submission of documentation to MSPB for the establishment and/or abolishment of agencies and/or master agencies prior to requesting additions, deletions or changes in employment positions resulting there from. All agencies established or abolished in accordance with the provisions herein shall be based on legislative intent and authorization, appropriation or escalation of funds or loss thereof, and current fiscal policy.

6.2.1 Establishment of a New Agency When legislative appropriation or other authority provides for the creation of a new agency, the agency director shall submit the following to MSPB: A. A copy of the enabling legislation or other authority that created the new agency and/or master agency; and B. A copy of the appropriation bill or other authority that funds the new agency and/or master agency. The Office of Classification, Compensation, and Recruitment employees will perform all functions in OSR related to the creation, maintenance, inactivation, and reactivation of an agency. Once the agency records have been created in OSR (to include the fiscal year records), the agency shall create a Program Budget record for each new agency to be reviewed and approved by the Office of Classification, Compensation, and Recruitment. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Analyst for more detailed information regarding the establishment of new agencies.

6.2.2 Consolidation of Existing Agencies Agencies directed by appropriation acts or other legislative authority to consolidate existing

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agencies shall submit the following to MSPB: A. A letter of request to the State Personnel Director describing by name and agency code number, which agencies are expanding, and which agencies are being abolished. The letter shall also address the disposition of former agency directors, bureau directors and division directors along with possible duplication of functions such as clerical support, print shops, computer centers, etc.;

B. A copy of the enabling legislation or other authority that directed the consolidation to be accomplished; C. A copy of the appropriation bill or other authority that funded the consolidation of the agencies; D. A revised organizational chart identifying the precise location, after consolidation, of all authorized positions prepared in accordance with established procedures;

E. Any updates to the expanded agency’s Program Budget record should be submitted in OSR to the Office of Classification, Compensation, and Recruitment for review and approval; and F. Any other relevant supporting documentation. NOTE: Once all positions have been transferred to the expanded agency, the relevant agencies shall be inactivated by the Office of Classification, Compensation, and Recruitment.

6.2.3 Inactivation of Agencies Agency inactivation becomes necessary when the Legislature does not pass an appropriation act to continue or fund any positions within an agency. Petitions for inactivation of an agency shall be submitted a minimum of sixty (60) days prior to the proposed effective date. Note that all positions must be abolished before the agency may be inactivated.

6.2.4 Agency Program Budget Data The agency program budget data is submitted to the Office of Classification, Compensation, and Recruitment in OSR for each agency. This information must be submitted to the Office of Classification, Compensation, and Recruitment at the following times: A. During conversion from the current fiscal year to the newly appropriated fiscal year; B. As part of the annual Personal Services Budget Request for the next fiscal year; C. When adding an agency or program during the operating fiscal year; and/or D. When changing the workers’ compensation rate during the operating fiscal year. General Instructions for submitting agency program budget data:

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A. Fiscal Year

1. For FY Conversion – Use appropriated fiscal year;
2. For Budget Request – Use fiscal year for which Budget Request is made;
3. For Addition of Agency or Program and/or Change in Workers’ Compensation Rate– Use Operating Fiscal Year.

B. Program Number and Description – Program Numbers and Names as assigned by the Legislative Budget Office and the Department of Finance and Administration. Change, deletion, or addition of a program during the operating fiscal year or for the budgeted fiscal year will require documentation of Legislative Budget Office and Department of Finance and Administration concurrence. C. General Fund, Federal Fund, Other Fund

1. For FY Conversion or Change in Workers’ Compensation Rate – Indicate amount of total appropriated personal services dollars assigned to each fund within each program;
2. For Budget Request – Indicate amount of total personal services dollars necessary to fully fund existing positions and requested actions assigned to each fund within each program;
3. For Addition of Agency or Program – Indicate amount of total personal services dollars authorized by the Department of Finance and Administration assigned to each fund within each program. D. Current Workers’ Compensation Rate – The numerical rate, expressed in a four (4) digit decimal form, used to compute the total amount needed to cover the operating or budgeted fiscal year's Workers' Compensation Insurance. E. Requested to Cover Cost
4. For FY Conversion, Addition of Agency or Program, and/or Change in Workers’ Compensation Rate – Use total amount needed to cover Workers’ Compensation for operating fiscal year;
5. For Budget Request – Use total amount needed to cover Workers’ Compensation for the fiscal year for which the budget request is made. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding adding/modifying agency program budget information.

6.3 ORGANIZATIONAL PLANNING AND POSITION MANAGEMENT MSPB shall recommend policies and procedures for the efficient and economical use of each

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employment position. The appointing authority of each agency shall be responsible for directing organizational planning and position management intended to manage the number and distribution of staffing resources through: A. Efficient and effective organization and staffing plans to accomplish the agency mission and program requirements; B. Effective utilization of all personnel resources, considering such factors as available staffing, positions, supervisory spans of control, lines of supervision, supervisor/employee ratios, functional responsibility and delegation of authority; and C. Continuing review of organizational structure, staffing plans and position utilization.

See Mississippi Code Annotated § 25-9-119(2)(h)-(i).

6.3.1 The Staffing Planning Cycle The staffing planning cycle is a continuous process reflecting the current, ongoing planning phase and the advanced planning phase required to be in concert with the personal services budget and appropriation cycles. The staffing planning cycle is divided into three units of time: A. Current fiscal year encompasses the present appropriation acts under which agencies are operating; B. Next fiscal year is the fiscal year immediately following the current fiscal year and for which the appropriation acts are approved by the current year's legislative session for implementation and use after the current fiscal year; C. Future fiscal year means the fiscal year(s) immediately following the next fiscal year for which agencies prepare budget requests to effect advanced planning for position(s), organizational changes and future appropriations.

6.3.2 Budgeting for Staffing Positions All agency requests and justification for additional staffing positions shall be submitted in OSR to the Office of Classification, Compensation, and Recruitment for recommendation to the Department of Finance and Administration and the Legislative Budget Office as part of the annual budget process. Budget requests for the future fiscal year must be submitted in accordance with the Department of Finance and Administration/Legislative Budget Office Budget Instructions and MSPB Staff Management Planning Instructions. These instructions are issued annually. Requests for additional positions shall not be recommended for authorization when there are existing long- term vacancies within the organization of the same, similar or related classes. MSPB shall annually monitor each agency’s budget request and appropriation bill through the legislative appropriations process. See Mississippi Code Annotated § 25-9-133(1).

6.3.3 Organizational Planning The Staffing Management Program of each agency shall incorporate existing and proposed agency and position data into organizational charts indicating each position authorized. All current or

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proposed organizational charts shall be reviewed by the agency for completeness and accuracy of data to ensure inclusion of actions approved for next fiscal year implementation and conformance to the agency’s next fiscal year appropriation act. The following shall be in effect with respect to agency organizational charts: A. Agencies shall submit an original and one file copy of the organizational chart in the format indicated in the examples at the end of this chapter for approval by the Office of Classification, Compensation, and Recruitment prior to the start of each fiscal year. Upon approval by the Office of Classification, Compensation, and Recruitment, the organizational structure and codes shall become the official organizational structure of the agency for current and/or succeeding fiscal years and the basis for all requested position and organizational changes; B. Constant internal review of any agency organizational structure is an agency responsibility. Agencies may make minor alterations or movement of individual positions, including county code changes, in their organizational charts for efficiency or to balance staffing workload (generally singular moves below the division level) during the fiscal year. When requesting organizational chart revisions, the Agency shall submit the request for organizational code or county code change online through OSR on the Position Screen. The following information shall be forwarded to MSPB in support of the organizationalchange:

1. Organizational chart pages signed by the appointing authority or designee depicting both current and proposed structures; and

2. Additional documentation as may be specified by the State Personnel Director. C. Agencies shall request MSPB to review major changes or movement of positions within the organizational structure. Major alterations, movements, or changes within the agency organizational structure must be approved by MSPB prior to implementation by the agency. Contact your Classification, Compensation, and Recruitment Consultant to determine the format in which to submit your proposed reorganization for formal presentation before MSPB.

6.3.4 Agency Organizational Chart A. The overview page of an organizational chart is applicable to the larger agencies that require several pages of organizational charts to depict all authorized positions. Items to be included on the overview page include:

1. Agency Head;

2. Agency Head’s immediate staff; and

3. Program functions depicted by separate squares using lines to indicate related functions by supervision. B. Mandatory items that shall be included on the agency organizational chart:

4. All authorized positions;

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2. Each square shall include the following data as depicted in the examples at the end of this chapter: i. The official job classification title of the position at the top of the square; ii. The functional title for the position at the bottom of the square (required for direct supervisors of one or more employees; optional for non- supervisory employees); iii. The start salary (rounded to the nearest hundred dollars) of the job classification in the lower left side of the position box (i.e., $37,856.48=37.9 and $37,829.74=37.8);

iv. The position identification number (PIN) in the lower right side of the position box (agency code numbers may also be indicated for agencies utilizing multiple agency codes.); v. The FLSA classification in the bottom center of the position box. FLSA Codes are identified below:

Classification Code Exempt E Non-Exempt/Hospitals H Non-Exempt/Other O Non-Exempt/Public Safety

P vi. The page number where each PIN can be found if necessary; vii. The service status code (if the position is non-state service, i.e. x- 16). C. In the example at the end of this chapter, the chart only goes down through bureau level, indicating precisely those individuals directly supervised by, or reporting directly to, the agency head. Agencies not authorized offices or bureaus shall use divisions directly under the agency head. D. All organizational charts shall show the lines of supervision within the agency hierarchy. Lines of supervision reveal a supervisor’s span of control and clarify the raters and reviewers in the agency’s performance review system. E. The information in the upper right corner of the organizational chart example shall be placed on each page. However, the agency director need only sign the first page.

6.3.5 Staffing Guides/Plans/Standards Each agency director, in conjunction with MSPB, shall be responsible for development of staffing

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guides, plans and standards to justify and substantiate staffing position requirements. Agency staffing plans shall be utilized to formulate uniform staffing standards applicable to designated employment positions and classes within agencies. See Mississippi Code Annotated § 25-9- 133(1).

6.3.6 Agency Reorganization

Agency requests for reorganization shall be accomplished:

1. In accordance with the provisions of MSPB rules, regulations and procedures;
2. According to authorization of positions in appropriation acts or budgetary

escalations;

C. In accordance with current fiscal policy and legislative intent; and

D. Through submission of a detailed letter of compelling justification from the

agency director to the State Personnel Director. Attachments to this letter shall

include:

1. Current and proposed organizational charts;
2. All required documentation for requested downward, lateral, and upward title changes, if applicable (See Section 5.3);
3. All required documentation for any requested new role summaries (See Section5.1.2); and/or

6.3.7 Establishment of Positions The establishment of positions occurs either at the start of the fiscal year at conversion for newly appropriated positions or during the operating fiscal year when mandated by special circumstances such as budget escalation authorized by the Department of Finance and Administration or deficit appropriation. A. The following documentation shall be submitted in support of all requests to establish new positions:

1. A copy of the appropriation bill or Department of Finance and Administration escalation authority authorizing the position establishment;
2. An organizational chart depicting the precise location of all authorized positions, including ones to be established;
3. A Job Content section of the Performance Review Assessment (PRA) or Role Description Questionnaire (RDQ) for each position requested. A representative PDA may be submitted when all positions are to be allocated to the same job class and will be assigned substantially the same work. B. Requests for new positions in a new job class shall also include documentation required for a class establishment. See Section 5.1.2.

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C. OSR will assign the next available Position Identification Number (PIN). Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding position establishments.

6.3.8 Abolishment of Positions Each agency shall enter vacant position abolishments online in OSR when the number of actual positions is in excess of the number of positions authorized by the agency’s appropriation act for the next fiscal year. See Mississippi Code Annotated §§ 25-9-119(i) and 25-9-133. Routine position abolishments shall be submitted online in OSR as soon as practical prior to the proposed effective date unless such abolishment would result in agency reorganization. Agencies effecting reductions in positions resulting in reorganization shall submit required forms and revised organizational charts to MSPB at least sixty (60) days prior to deleting the positions. Petitions for position abolishment to effect a reduction-in-force shall be submitted to MSPB for review. Reductions in agency staffing shall be proportionate among positions within the hierarchal structure so as not to adversely affect supervisory or non-supervisory classes of positions. Agencies shall apply a study of the essential needs of the organization, including the need for supervisory positions, when planning a reduction in employment positions. Changes in agency program shall be constantly analyzed with the intent of effecting maximum efficiency with minimum staffing. Agencies should note the possibility of changes in the Job Content section of the Performance Review Assessment (PRA) for other continued positions impacted by reductions. Agencies effecting reductions in employment positions shall submit required documents on MSPB approved forms in accordance with the instructions contained herein. NOTE: Individuals cannot receive payment for accrued annual leave unless OSR reflects separation from the requesting agency. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding Position Abolishments.

6.3.9 Swap or Transfer of Positions within Legislative Authority A Position Transfer is the movement of an authorized position from one agency to another agency. A full-time/part-time swap is the change in the part-time/full-time status of two (2) positions accomplished within legislative authority. The swapping or transferring of positions may occur either at the start of the fiscal year as a part of conversion or during the operating fiscal year as follows: A. Agencies may be mandated by legislative action to transfer positions from one master agency to another master agency, or from one agency to another agency within the same master agency at the start of the fiscal year, or as a part of conversion. Position transfers from one agency to another agency within the same master agency should be requested through OSR using the Intra-Agency Position Transfer screen. At the same time position transfers are requested for approval, the following documents must be submitted in support of all such requests:

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1. A copy of the bill authorizing position transfers; and
2. Pages of the appropriate organizational chart depicting the proposed placement of the position(s) to be transferred.

B. Certain agencies are given authority each fiscal year in their appropriation bill to transfer positions between authorized agencies. Authority to transfer positions between agencies is granted by the legislature to specified agencies in the annual appropriation to the agency. Position transfers from one agency to another agency within the same master agency should be requested through OSR using the Intra- Agency Position Transfer screen. Approval to implement transfers during the current fiscal year must be requested and received from the Department of Finance and Administration prior to submitting online in OSR submission to MSPB. The following attachments must be included with all such requests:

1. A copy of the letter of authorization from the Department of Finance and Administration; and
2. Appropriate organizational chart pages depicting the placement of the positions before and after the swap. C. Any agency authorized both part-time and full-time positions may change the status of a position from part-time to full-time at any time during the operating fiscal year. In such instances, the agency must provide a companion action changing the status of a full-time position to part-time to maintain its appropriated position count. A Full- time/Part-time swap should be requested using the Full-Time/Part-Time Swap screen within the Position Segment of OSR. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding Intra-Agency Position Transfers or Full-time/Part-time Position Swaps.

6.3.10 Annual Registration of Authorized Positions A. Registration of authorized positions shall apply to the following agencies and employment positions:

1. State service agencies and positions; and
2. Non-state service agencies and positions excluded from the state service (See Mississippi Code Annotated § 25-9-107(c));
3. Agencies voluntarily operating under limited provisions of MSPB; and/or
4. Time-limited positions (See Mississippi Code Annotated § 25-9- 107(c)(xiv)).

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B. Registration shall be completed by the close of business on the last day of the fiscal year. All inconsistencies between next fiscal year authorization and current MSPB agency, position and employee data shall be resolved by this date, including the completion of any plan to adjust positions (adjustments; reauthorizations; establishments; abolishments; transfers; consolidations; changes of status from part- time to full-time or full-time to part-time; or changes of status from permanent to time- limited or time-limited to permanent), execute a reduction-in-force or implement a legislatively mandated reorganization. There shall be no exceptions to this policy. See Mississippi Code Annotated §§ 25-9-103(g) and 25-9-135(1). C. All agencies and employment positions authorized in each agency’s appropriation act shall be updated to reflect actual next fiscal year program budget data by program and fund source by the date specified in the Conversion and Registration of Authorized Agencies, Positions, and Program Budget Data Instructions updated prior to the beginning of each fiscal year. D. Organizational charts shall be revised to reflect position adjustments required to conform to the next fiscal year authorization and submitted to MSPB by June 1 of each fiscal year. A legislatively mandated reorganization shall be monitored by MSPB to ensure compliance with legislative intent. A reorganization initiated by the agency or necessitated to conform to the agency’s next fiscal year position authorization, or an adjustment to an existing staffing plan, shall require prior MSPB approval.

6.3.11 Continuation of Position(s) A. Documentation will not be required to continue established permanent positions within the agency where no change has occurred. B. Time-limited positions should be marked for continuation in the next fiscal year using the FY Time-Limited Position Re-Authorization screen within the Position Segment of OSR. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding the reauthorization of time-limited positions.

6.3.12 Change in Position Status Authority to change the status of an established position from part-time to full-time (or full-time to part-time) will require an online revision of the months and/or hours fields as well as revising the service type of the position on the Maintain Position Information screen within OSR. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding position status changes.

6.3.13 Position Program Budget Data Change Changes to the program budget data of positions during the operating fiscal year shall be submitted

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online using the Position Program Budget Information screen within OSR. Please reference the OSR User Training Workbook at http://www.mmrs.state.ms.us or your Classification, Compensation, and Recruitment Consultant for more detailed information regarding changes to position program budget.

6.4 POSITION COST PROJECTION AND POSITION VALIDATION Agencies cannot view or print position cost projections using the Maintain Budget Projection Parameters screen within OSR. Information found in any projection provided by the Office of Classification, Compensation, and Recruitment should be reviewed by the agency for accuracy and be looked upon as the basis for any future position additions, changes, or abolishments. NOTE: The authorized appropriated position data in the MSPB database must be kept up-to-date at all times.

6.5 LEGAL SERVICES CONTRACT APPROVAL REQUESTS The following procedures are for legal services contracts which must be approved by MSPB Board. Mississippi Code Annotated § 27-104-105 states: The Department of Finance and Administration shall not process any warrant requested by any state agency for payment for legal services without first determining that the services and contract were approved either by the Attorney General and the State Personnel Board, or as authorized under Section 7-5-39(3); contracts for legal services performed by the State Highway Department in eminent domain cases shall not require approval by the State Personnel Board. The State Auditor shall test for compliance with this section. Therefore, state agencies must obtain approval of legal services contracts from both the Attorney General’s Office and MSPB in order to be able to make payment for legal services provided tothe agency. This requirement applies to any written or oral contract between an agency and any person or entity for the performance of legal services wherein payment for such services is to be processed by the Department of Finance and Administration. Certain legal services contracts are exempt from this statutory requirement, including contracts for legal services entered into by the Mississippi Department of Transportation involving eminent domain activities and contracts for legal services entered into by the Attorney General’s Office with state agencies for assignment of Special Assistant Attorneys General and contracts for legal services authorized pursuant to Mississippi Code Annotated § 7-5-39(3). To facilitate the approval request process, MSPB delegates to the State Personnel Director the authority to review and approve or disapprove legal services contracts with a maximum contract value of $100,000.00 or less, including any modifications thereto. MSPB retains sole authority to review and approve or disapprove legal services contracts with a maximum contract value of more than $100,000.00. Contracts shall neither be artificially divided nor shall the extent of the service required be underestimated so as to circumvent MSPB’s authority to review and approve or disapprove legal services contracts.

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MSPB has adopted standardized procedures to assist state agencies in requesting approval in compliance with Mississippi Code Annotated § 27-104-105, and this policy provides the administrative procedures to be followed when requesting legal services contract approval from MSPB. This policy applies to all legal services contracts under the purview of MSPB.

6.5.1 Consideration Timelines Any agency desiring to contract for legal services should ensure that it requests appropriate approval of such a contract from any required regulatory board governing the agency’s contracts, the Attorney General’s Office and MSPB in advance of any deadline as set forth in this section. To the extent legal services are performed under a proposed contract before appropriate approval is obtained, an agency does so at its own risk that the contract may not be approved. See MS AG Op. 1993-0488, Stringer (July 9, 1993).

Approval requests for contracts with a maximum contract value of more than $100,000.00 that are received from the Attorney General’s Office at least 15 working days prior to a regularly scheduled MSPB Board meeting will be considered for approval at that month’s meeting. Contracts received after this deadline that require Board consideration will be considered at the next month’s regularly scheduled meeting. Contracts received from the Attorney General’s Office more than sixty (60) days after the proposed start date of the contract, regardless of amount, will require board approval. As a part of the contract packet, the agency must also include a letter to the board chairman which provides the following information:

1. The circumstances surrounding the contract being brought for consideration for retroactive approval;
2. The steps the agency has taken to curtail requests for retroactive approval of contracts; and
3. The number of contracts the agency has brought before MSPB for consideration for retroactive approval in the previous three years.

Approval requests for contracts with a maximum contract value of $100,000.00 or less, including contracts with state retirees, will be considered for approval within 15 working days of receipt from the Attorney General’s Office. These timelines are applicable at all times, including the end of each fiscal year. All legal services contract amendments, modifications, or extensions for contracts ending June 30 with a value of $100,000.00 or less shall be received from the Attorney General’s Office at least 15 working days before the end of the fiscal year to ensure sufficient time for processing. Failure to receive the contracts at least 15 working days before the end of the fiscal year may result in the agency being required to enter into a new contract to continue the legal services. Any request for expedited consideration of a legal services contract must be submitted in writing to the State Personnel Director and must contain a detailed account of the circumstances justifying the request. The written request must be executed by the Agency Head. All such requests will be considered and granted or denied at the discretion of the State Personnel Director.

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6.5.2 Procedures for Requesting Approval Prior to requesting MSPB’s approval of a legal services contract, an agency must obtain approval of the contract from any applicable regulatory board and the Attorney General’s Office. If the Attorney General’s Office approves the contract, the Attorney General’s Office will then forward the contract to MSPB for consideration. Agencies should submit a request for approval of a legal services contract to the Attorney General’s Office online through the MAGIC system. For the purpose of timeliness and to establish a chain of custody, agencies must utilize the Legal Services Contract Routing Sheet throughout the approval process in order for the contract to be considered for approval by MSPB. This form may be found at http://www.mspb.ms.gov. The agency must also provide a printed MAGIC Cover Sheet and the original proposed legal services contract, executed only by any appropriate agency personnel, to the Attorney General’s Office. The contractor should not execute the contract until the contract is approved by both the Attorney General’s Office and MSPB. The agency should also submit through the MAGIC system a justification of the need for the legal services to be provided under the contract. If an agency is submitting a legal services contract with a contract worker, then in lieu of the MAGIC document, it should submit the appropriate OSR document. Additionally, agencies should submit the completed PERS Form 4B for all contract worker contracts with state retirees toensure the contracts comply with Mississippi Code Annotated § 25-11-127. If an agency desires to amend or modify an existing and previously approved contract, the agency should submit a request for approval to the Attorney General’s Office online through the MAGIC system. The agency must also provide a printed MAGIC Cover Sheet and a copy of the executed approved contract and any prior amendments to the Attorney General’s Office. Agencies should be aware that MSPB does not have the authority to approve any modification, renewal or extension of an expired contract. See MS AG Op., 1999-0272, Stringer (June 25, 1999).

6.5.3 Contract Format and Required Clauses All legal services contracts submitted for approval must be effective for a definite term with a maximum period of five years. All such contracts must also contain a maximum expenditure provision and the legal rate(s) for all professionals. All contracts must contain all clauses found in the legal services template at http://www.mspb.ms.gov or http://www.ago.state.ms.us/. Legal services contract worker contracts do not require the Mississippi Employment Protection Act clause, but agencies are responsible for ensuring that contract workers meet requirements under Mississippi Code Annotated 71-11-3 and federal law. Any attorney or law firm providing services under the contract should be identified in the contract by name and address. Each contract should also provide a description of the scope of services to be provided under the contract. Finally, each contract should provide signature space for any required agency personnel, the contractor, any regulatory board, the Attorney General’s Office and MSPB. Agencies utilizing a legal services contract or contract amendment template that has been approved by the Attorney General’s Office and MSPB will be presumed to have complied with this section. A sample contract or contract amendment template approved by the Attorney General’s Office

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and MSPB may be found at http://www.mspb.ms.gov or http://www.ago.state.ms.us/.

6.5.4 Determination Once a determination has been made by either MSPB or the State Personnel Director regarding an agency’s request for approval of a legal services contract, the original contract and either the original MAGIC Cover Sheet or OSR document will be returned to the requesting agency. MSPB will provide a copy of the proposed contract as approved by MSPB to the Attorney General’s Office. If approved, the original contract should then be finally executed by the contractor. The agency shall provide MSPB and the Attorney General’s Office with a copy of the contract after it is fully executed. Additionally, the agency should upload the fully executed contract into MAGIC. Once MSPB and the Attorney General’s Office receive an electronic copy of the fully executed contract and the fully executed contract is uploaded into MAGIC, then DFA will be notified electronically through the MAGIC system that the agency has complied with Mississippi Code Annotated § 27-104-105 and that payment for legal services provided pursuant to the approved contract may be processed.

6.5.5 Termination Each agency must notify MSPB within ten days upon the termination of a previously approved legal services contract. The notification must be submitted to the State Personnel Director indicating the termination of services pursuant to the contract and identifying the effective date of such termination.

6.6 REMOTE WORK

“Remote work” is when an employee performs any function of his or her job outside of the physical confines of the state office building. An employee works remotely when he or she performs any function outside of the office. This includes, but is not limited to, reading emails or other electronic communications and telephonic communications related to state business. Whether the employee is performing these out-of-office functions during regular business hours, before regular business hours, or after regular business hours, that employee is working remotely. “Full time remote work” is when an employee performs all functions of his job from somewhere other than the physical confines of the state office. “Hybrid remote work” is when an employee has days scheduled to work within the physical confines of the state office building and days scheduled to work remotely. “Intermittent remote working” is when an employee works primarily from the state office building but may work remotely due to some foreseen or unforeseen circumstance. 6.6.1 Remote Work Policy

In order to implement a remote work policy for one or more of its employees, an appointing authority shall: • Develop a remote work policy;

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• Establish procedures to protect any information that is privileged or confidential; • Require all employees who ever work remotely to sign an agreement that includes the employee’s work schedule, requires the protection of privileged or confidential information that is managed remotely on an agency computer or other device, establishes protocols for accessibility to coworkers and clients, and any other matters deemed appropriate by the appointing authority; • Establish work schedules that ensure that the agency’s state office building is staffed in compliance with Miss. Code Ann. § 25-1-98 to provide direct contact with the public.

It is the responsibility of the appointing authority to ensure that all of its employees are adequately performing the responsibilities of their jobs, whether working remotely or in the state office. The appointing authority shall monitor any productivity or performance, and any issues related to productivity or performance shall be addressed by the individual agency. 6.6.2 Full Time Remote Work

Any agency that wishes to classify an employee as eligible to work remotely full time must submit a request to the State Personnel Director in writing and signed by the agency’s executive director. The State Personnel Director or designee has to approve any request for an employee to work remotely full time. Approval of full time remote work status is not required for any employee who reports to a state office at some time, even if most of the work performed by employees in their job classification is performed outside of an office (e.g. highway maintenance techs, law enforcement officers, bank inspectors, etc.). 6.6.3 Hybrid Remote Work

An agency may allow employees to work remotely on a hybrid basis. In doing so, the agency must ensure that the state office is adequately staffed during regular business hours. 6.6.4 Intermittent Remote Work

As long as an employee can perform the essential functions of his or her job outside of the physical confines of the state office, that employee should be classified as eligible for at least intermittent remote working. Any employee who receives agency-owned telecommunications equipment (including, but not limited to, laptop, cellular phone, or tablet) should be classified as eligible for at least intermittent remote working. Agencies can, in their discretion, allow employees to work remotely for foreseen or unforeseen circumstances. Agencies should consider using intermittent remote work in lieu of administrative leave. 6.6.5 Reporting to MSPB

On or before December 31, 2025, all agencies under MSPB purview must certify that their current policies related to remote working comply with this Policy & Procedures Manual.

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Each agency that allows any employee to work remotely must submit to the State Personnel Director via mspb.communications@mspb.ms.gov a copy of the agency’s remote work policy. Each agency is responsible for designating the remote work status of its employees within the HR system of record. Remote work eligibility and participation are required fields. If an agency has an active remote work policy and employees who are eligible to work remotely, the agency is required to document this in the system of record using the following definitions: • No: This employee is not allowed to work remotely. • Not Eligible: This employee is not eligible for remote work based on job duties or other factors and must perform all duties at the state office. • Yes – Full: This employee never or rarely reports to the state office and performs all or most duties at an alternate, approved location. This employee has a signed remote work agreement on file. • Yes – Hybrid: This employee participates in a hybrid schedule that includes both remote work and in-office days and has a signed remote work agreement on file. • Yes – Intermittent: This employee is eligible to work remotely as needed during an emergency or in other foreseen or unforeseen circumstances approved by the employee’s supervisor. This employee has a signed remote work agreement on file.

6.7 FAMILY AND MEDICAL LEAVE ACT

When an employee takes leave under state law (Major Medical, Paid Parental, Personal), if the leave is covered by the FMLA, the agency must designate the leave as FMLA leave and the employee must be given notification of the designation, which should include the amount of leave to be counted against the employee’s FMLA leave entitlement. Any state leave taken by an employee for a qualifying event that would be covered by FMLA must run concurrently with FMLA.

Employees must notify the Agency of their need for leave as soon as practicable. The notification should include sufficient information to determine if the leave qualifies under FMLA and/or state leave laws.

The Agency will designate the leave as FMLA and/or state-granted leave based on the information provided by the employee and in accordance with applicable laws. The Agency will track the leave taken under both FMLA and state leave entitlements concurrently to ensure accurate record-keeping and compliance. The Agency has the responsibility to inform Employees of their rights and responsibilities under both FMLA and state leave laws, including the requirement to provide medical certification and the potential consequences of failing to do so. MSPB will review this policy annually and revise it as necessary to ensure continued compliance with federal and state leave laws.

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CHAPTER 7 – EMPLOYEE RELATIONS

7.1 TRAINING AND DEVELOPMENT MSPB assists appointing authorities in planning for the agency’s future workforce needs by offering assistance in the review of organizational design, talent management, and career development. The primary emphasis of workforce development is to improve state government services. Under Mississippi Code Annotated § 25-9-103(c), MSPB shall administer a state personnel system to train employees, as needed, to ensure high quality performance. The appointing authority may contact the Office of Training and Development of MSPB to request career development activities for his or her employees. Such activities may be conducted either in the MSPB training facility, on-site, or in other designated facilities.

7.1.1 Training Needs The State Personnel Director shall assess the workforce development needs of the state service and take necessary steps to meet those needs consistent with funding and resources. An appointing authority shall respond to the workforce development needs assessments sent by the MSPB Training and Development staff to the agencies.

7.1.2 Development and Coordination The State Personnel Director shall provide or coordinate career development programs integral to the administration of the statewide personnel system and career development needs generic to all state agencies, such as supervisory/management skills, interpersonal skills, clerical skills, and professional development skills. Registration for career development courses is done through the Learning Solution (LSO) in the Mississippi Accountability System for Government Information and Collaboration (MAGIC), a link to which is at http://www.mspb.ms.gov. Employees and agencies may also register for career development courses by completing a registration form, which is also located at http://www.mspb.ms.gov under the Office of Training and Development.

7.1.3 Interagency Partnerships The State Personnel Director shall encourage and, when feasible, coordinate inter-agency partnerships in sharing employee workforce planning and career development activities, resources, materials, and programs.

7.1.4 Guidelines for Development of Agency Career Development Programs The appointing authority should: A. Assess the workforce needs of the agency workforce;

B. Develop an agency-wide workforce planning policy using available internal resources, capabilities, facilities, and staff to meet assessed career development needs when appropriate; and

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C. Provide specialized career development activities to agency personnel as required to ensure high quality performance and to meet agency objectives.

7.1.5 Training Data The State Personnel Director may request from agencies, any career development activity data necessary for comprehensive, statewide planning purposes.

7.2 EXCELLENCE IN GOVERNMENT AND LONGEVITY SERVICE AWARDS Two award programs have been established to recognize and acknowledge achievement in and commitment to public service and encourage innovation in efficiencies and cost savings in state government: the Excellence in Government Awards program and the Longevity Service Awards program.

7.2.1 Excellence in Government Awards The recognizing of excellence and innovation in the management of administrative procedures, which increase the quality of public service at the state, district, and local governmental levels shall be governed by the procedures outlined below. The development of the following procedures is based upon Mississippi Code Annotated § 25-9-134(2) which states as follows: The State Personnel Board is hereby authorized and directed to establish a program to encourage and recognize excellence, innovation, and diversity on the part of state, district, and local governmental entities in the design, execution, and management of their own administrative procedures. The State Personnel Board shall establish by rule and regulation procedures for evaluating said examples of improvement in public administration, and shall provide for an annual awards program to recognize excellence in government. The Board may establish categories of governmental service in order to recognize these achievements. Provisions for Award Determination

A. A maximum of two individuals or two groups of individuals will be publicly recognized each year. One shall be the recipient of the Award for Excellence in State Government, and one shall be the recipient of the Award for Excellence in Local and District Government. B. The Award for Excellence in State Government shall recognize the state service or non- state service employee or group of employees whose contributions within the last five (5) years represent excellence in government. C. The Award for Excellence in Local and District Government shall recognize the local or district level employee or group of employees whose contributions within the last five (5) years represent excellence in government.

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General Procedures for Award Determination

A. Eligibility Criteria

1. A nominee must be, at the time of the nomination, a full-time employee of a governmental entity in a classified position with a minimum of three (3) years of service.
2. Persons holding elected offices will be evaluated based on their career in public service, excluding time served as an elected official. B. Nomination Requirements
3. Each year, the appointing authority or the governing boards or commissions of governmental entities shall submit nominations for personnel in the entity under their purview by the date established by the State Personnel Director.
4. Each nomination must be accompanied by a nomination form signed by the appointing authority of the governmental entity employing the nominee. (An appointing authority may only be nominated by the governing board or commission of the entity employing the appointing authority nominee.)
5. In addition to the nomination form, a written nomination should include the following: (i) Brief biography of the nominee, summarizing positions held, educational background, civic and professional involvement, and other personal data; and (ii) Statement of achievement (a) Description of the nominee’s work, including but not limited to what was accomplished, how resources were maximized, and what was innovative about the nominee’s work; (b) Description of the significance of the nominee’s work, including but not limited to the impact on efficiency and effectiveness; and (c) Description of the nominee’s commitment to government in Mississippi and how his/her service exemplifies that commitment. C. Submission Guidelines Nominations may be submitted electronically to MSPB at mspb.communications@mspb.ms.gov, by mail, or by hand-delivery. D. Verification Information submitted in support of nominations is subject to verification by the State Personnel Director. In addition, the Governor or the State Personnel Director may request a nominating party or nominee to furnish additional information.

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Selection Criteria

A. The nominee must have primary and direct responsibility for administrative action and implementation of personnel-related improvements in productivity, efficiency, or effectiveness. B. Measurability and tangibility of results will be considered. Examples include, but are not limited to, increased revenues, reduced expenditures while maintaining same quality/quantity standards, or improved quality/quantity standards at equal or decreased cost. C. Innovation of action or approach will be considered.

D. Selection will be based on clear and practicable actions for the improvement of particular aspects of technical or administrative procedures, which include, but are not limited to, the following:

1. Strengthening one or more major areas of public administration such as personnel recruitment, training, development and/or payroll administration.
2. Increasing intergovernmental cooperation with respect to such matters as personnel interchange, personnel recruiting, staff utilization and interchange, and fringe benefits.
3. Establishment of personnel systems of general or specific functional coverage to meet the needs of governmental jurisdictions. E. Nominations meeting the requirements will be submitted to MSPB for review and comment. Following review and comment by the Board, the State Personnel Director shall submit all nominations to the Governor for review, comments, and recommendation at least sixty (60) days prior to final evaluation and award by the Board. An explanation in writing shall be sent to the Governor in the event the Board does not concur with recommendations of the Governor in approving or disapproving said nominations. Announcement of Awards

The announcement of the awards shall be made publicly at an awards ceremony, and each recipient shall receive an award. Should an insufficient number of valid nominations for the Local and District Government Award and/or the State Government Award be received, the State Personnel Director may recommend the award(s) not be presented in any given year.

Reactivation of Nominations

Individual nominations made in previous years may be reactivated by the State Personnel Director for nomination in a subsequent year’s competition. However, this provision is not automatic, and nominating parties are encouraged to re-nominate deserving personnel who

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did not win in the previous year’s nominations. Subsequent re-nominations should be updated to include the nominee’s latest achievements.

7.2.2 Longevity Service Awards

The Longevity Service Award Program was established to recognize full-time employees for service to the State of Mississippi. The program is established based upon Mississippi Code § 25- 9-151 which states that awards shall be made upon attainment of ten (10), twenty (20) and thirty (30) years of full-time service in state government, and shall be the same for all personnel regardless of position or title. Agencies, boards and commissions may request awards for employees by submitting the Longevity Service Award Program form, which is available on the MSPB website at http://www.mspb.ms.gov, to the State Personnel Director. The award program does not provide for the giving of gifts or monetary bonuses to employees.

7.3 REDUCTION-IN-FORCE Except as otherwise provided in these rules, the tenure of an employee with state service status shall be continued during good behavior and the satisfactory (Successful) performance of assigned duties. Mississippi Code Annotated § 25-9-127 provides for a Reduction-in-Force policy. A. Reduction-in-Force – An appointing authority may reduce the number of employees in a state service agency whenever deemed necessary for the following reasons:

1. Shortage of funds or work;

2. Material change in duties or organization; or

3. Merger of agencies. When requesting approval of the reduction-in-force, the agency must provide a written explanation or justification to MSPB citing one or more of the above reasons for the reduction-in-force. If the cited reason is a shortage of funds, the agency shall submit a written certification of a funds shortage from the Department of Finance and Administration or written certification of a funds shortage by the agency head. In addition, the agency must submit a proposed organization chart, a proposed staffing plan, and a current staffing plan to MSPB for approval thirty (30) calendar days before MSPB will act upon a reduction-in-force request. Further, a reduction-in- force shall be effective no earlier than fourteen (14) calendar days from the MSPB approval date. Upon emergency request by an agency, MSPB may waive the thirty (30) day calendar requirement to allow an agency to request approval to implement a reduction-in-force pursuant to the Expedited Implementation Procedure outlined in subsection (B) under circumstances otherwise not qualifying for such a procedure. In considering whether to grant the waiver, it shall consider the emergency nature of the request and whether there has been sufficient time to review the agency’s written justification, proposed

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organization chart, and proposed staffing plan.

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B. Expedited Implementation Procedure During periods of severe shortfalls of state revenue, an appointing authority may request approval on an expedited basis to implement a reduction-in-force. When requesting approval of a reduction-in-force, the agency must provide a written explanation or justification to MSPB for the reduction-in-force because of a shortage of funds to the agency, including a written certification of a general funds shortage from the Department of Finance and Administration or a written certification of a special or federal funds shortage from the agency. The agency also must submit a proposed organization chart, a proposed staffing plan to MSPB for approval, in the form required by MSPB, and a current staffing plan at least ten (10) calendar days before MSPB will act on a reduction-in-force request. If an agency requests expedited consideration of its request in compliance with this procedure, MSPB will review such a request and make its determination regarding the request within ten (10) calendar days after receipt of the required proposed organization chart and proposed staffing plan. A reduction-in-force approved by MSPB pursuant to this subsection will be effective no earlier than ten (10) calendar days after the date of approval by MSPB. C. Method of Reduction-in-Force

1. A reduction-in-force because of shortage of funds or work or because of material change in duties or organization may be administered by the following method(s): i. By functional area (e.g., Office, Bureau, Division, Branch, Section, Unit); ii. By location (e.g., counties, districts, state office, agency-wide); iii. By job class; or iv. By a combination of the preceding factors. An agency may exempt a program area or a certain number of positions in a program area from a reduction-in-force when such an exemption is required by federal law or grant requirements. Once the method of reduction-in-force is determined and prior to implementation, each agency shall submit to MSPB a written statement of the method of the reduction-in-force to be administered and the proposed effective date. Such statement is required to establish a record. Then Sections C and D herein are applied. The result of applying the order for reduction-in-force formula (Section C) and the retention point formula (Section D) must be submitted to MSPB for purpose of establishing a record. Afterward, Section E herein is applied.
2. The method of reduction-in-force because of the merger of agencies shall be administered as follows: i. First – by functional area and/or funding source

ii. Second – by location, (e.g., counties, districts, state office, agency-wide)

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iii. Third – by job class or job class series When requesting approval of a reduction-in-force by merger of agencies, each agency shall submit to MSPB a written statement of the functional area(s) and/or funding source(s), locations(s) and job class(es), which are targeted for reduction- in-force and the proposed effective date. Such statement is required for the purpose of establishing a record. Then Sections C and D herein are applied. The result of applying the order for reduction-in-force formula (Section D) and the retention point formula (Section C) must be submitted to MSPB for purpose of establishing a record. Afterward, Section E herein is applied. D. Order for Reduction-in-Force – The reduction-in-force formula shall be in the order that follows:

1. Those with emergency appointments;

2. Those with probationary or indefinite probationary appointments;

3. State Service employees. E. Retention Point Formula for Reduction-in-Force – In situations when not all employees are affected by the proposed methodology, an agency shall use the Retention Point Formula for a Reduction-in-Force. State service status employees shall be the last group of employees to be separated in a reduction-in- force. When state service employees must be separated, employees with the lowest number of retention points based on seniority, performance ratings, and veterans' preference shall be dismissed first. The retention point formula shall be as follows: Seniority (1 Point for Each Year of State Service) x 40% Converted Performance Rating Average x 40% +Veterans Preference Score x 20% TOTAL RETENTION POINTS

4. Seniority (40% of total score) – An employee shall be credited with one point for each year or portion thereof of continuous state service as a state service employee for a total not to exceed thirty (30) points. In calculating retention points for a partial month of service, one-twelfth of a point is credited to employees with service equal to fifteen days in the month. No credit is given for service of less than fifteen days of the month.

5. Performance Rating (40% of total score) – Each agency shall use the three most recent annual performance ratings, as recorded in agency files, and assign retention points to calculate the Adjusted Rating Score (ARS), as of the date the agency submits the organizational chart and staffing plan. i. The retention points for each of the three performance ratings shall be

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averaged together and converted to an Adjusted Rating Score (ARS) using the Performance Rating Conversion Chart. The resulting score should be rounded to the tenth decimal place. ii. If an employee has received less than three performance evaluations, then the employee receives a presumptive “Successful” for each missing evaluation. An appraisal rating rendered more than three years before the date the agency submits the organizational chart and staffing plan for reduction-in-force will not be used to calculate an employee’s Adjusted Rating Score. iii. Employee ratings are very critical whenever an agency has to implement a reduction-in-force. Ratings not completed and recorded pursuant to policy and procedures will not be used in the computation of the Adjusted Rating Score and a presumptive rating of “Successful” will be used. 3. Veterans’ Preference (20% of total score)– Veterans shall be awarded four (4) points, and disabled veterans shall be awarded eight (8) points. 4. Performance Rating Conversion Chart The average of the employee’s three most recent annual performance ratings shall be converted to an Adjusted Rating Score as identified below:

Average Rating Performance Rating Points Under 2.00 0 points 2.00 – 2.19 3 points 2.20 – 2.39 6 points 2.40 – 2.59 9 points 2.60 – 2.79 12 points 2.80 – 3.00 15 points

If an agency must use the Retention Point Formula for a Reduction-in-Force for employees who do not have three annual performance reviews under the 3-point system, previous annual review scores on the 4-point scale should be converted to a 3-point scale. For example, an employee’s previous rating of 3.5 out of 4 would be converted to a 2.625 out of 3. EXAMPLE FOR COMPUTATION OF TOTAL RETENTION POINTS:

Employee A profile: • Continuous state service of 15 years = 15 points based onseniority • Performance ratings of 2.3, 2.5, and 2.2 with an average of 2.3 = 6 points based on performance (see conversion chart in E.4) • Employee A is not a veteran and would receive 0 points forveterans’

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preference. Employee A’s total retention points would be calculated as follows: 15(.4) + 6(.4) + 0(.2) = 6 + 2.4 + 0 = 8.4 Employee A’s final score would be 8.4.

Employee B profile: • Continuous state service of 7 years and 3 months = 7.25 points based on seniority • Performance ratings of 2.7, 2.8, and 2.9 with an average of 2.8 = 15 points based on performance (see conversion chart in E.4) • Employee B is not a veteran and would receive 0 points for veterans’ preference.

Employee B’s total retention points would be calculated as follows: 7.25(.4) + 15(.4) + 0(.2) = 2.9 + 6 + 0 = 8.9 Employee B’s final score would be 8.9 Employee C profile: • Continuous state service of 5 years and 10 months = 5.83 points based on seniority • Performance ratings of 2.5, 2.8, and 2.8 with an average of 2.70 = 12 points based on performance (see conversion chart in E.4) • Employee C is a disabled veteran and would receive 8 points for veterans’ preference. Employee C’s total retention points would be calculated as follows: 5.83(.4) + 12(.4) + 8(.2) = 2.33 + 4.8 + 1.6 = 8.73 Employee C’s final score would be 8.73 In this example, Employee A has the lowest retention points and would be dismissed first, followed by Employee C then Employee B. F. Employees who will be terminated by a reduction-in-force shall be notified in writing of the effective date of the reduction-in-force termination at least ten (10) working days prior to the effective date of the reduction-in-force. The written notification shall cite the reasons for the layoff. The appointing authority and MSPB shall attempt to place affected employees in other positions for which they are qualified. See Chapter 4 of this manual.

G. When requesting a separation in OSR of an employee due to a Reduction-in-Force, the following shall be in effect:

1. The effective date of the separation shall be the last day the employee worked.

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2. An individual cannot receive payment for accrued personal leave unless records reflect that a termination date has been entered in OSR by the requesting agency.

3. Online submission of the separation of the employee using the appropriate separation and Reduction-in-Force reason is required.

4. Positions affected by a Reduction-in-Force cannot be filled, reallocated, or abolished and reestablished for a period of one year following the reduction-in- force.

7.3.1 Furlough A furlough, or an involuntary leave without pay, may be implemented when such action is necessary to temporarily reduce expenditures to avoid a deficit of funds. A. Provisions for Implementation of Furlough (Involuntary Leave without Pay) The MSPB furlough policy shall apply uniformly to all executive and subordinate employees within an agency, regardless of job class. MSPB shall review furlough plans only upon written certification of a general funds shortage from the Department of Finance and Administration or written certification of a special or federal funds shortage from the agency. MSPB shall ensure that any furlough plan complies with all applicable policies, rules, and regulations of MSPB. Such furlough leave for the purpose of reducing expenditures shall be based on the agency head’s determination that:

1. Funds on hand or funds to be received during the current fiscal period will be inadequate to effectively discharge the agency's responsibilities without recourse to reductions-in-force; or
2. It is necessary to accrue funds by reducing current payroll expenses so that reductions-in-force or more extensive furloughs may be minimized or avoided. B. When instituting a furlough, the agency head shall abide by the following rules and regulations:
3. Before instituting furlough leave, an agency head shall develop an equitable and systematic plan for implementation of an agency-wide furlough stating the reasons that require this action. Such plan and subsequent furlough action must be sub- mitted to MSPB for review and approval prior to implementing such leave.
4. Such a plan shall apply uniformly to all employees in the agency, regardless of status or funding source unless prohibited by law, loss of federal funds, or inability to continue a federally mandated program; however, agency heads may request MSPB for an exemption from the loss of federal funds provision. All employees, including those on paid leave, shall be placed on an equivalent number of hours of leave without pay. A proportionate number of hours shall be applied to part-time

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employees. However, an agency head may, with the approval of the State Personnel Director, make such leave subject to early cancellation or periodic call- back on a case-by-case basis to protect public health, safety, or property or to ensure operations of critical agency functions. The plan and the employees' notice of leave shall describe the reasons for and conditions of the provision. Agency heads who are elected and whose salary is set by Mississippi Code Annotated § 25-3-31 are not subject to an agency furlough.

3. Employees placed on furlough leave shall be given prior written notice, advising the employee of the particulars regarding the action, including the dates and times furlough leave is to begin and end.
4. While on furlough leave, an employee shall not accrue personal and major medical leave for that portion of the employee’s salary funded by the restricted funds. Additionally, personal, major medical, and compensatory leave shall not be taken in lieu of furlough leave.
5. During furlough leave, group health and life insurance benefits funded by the State will continue for employees who remain qualified in accordance with the eligibility criteria as set forth in the group health and life insurance plan approved by the Health Insurance Management Board. An employee will continue to pay for dependent insurance coverage as well as other insurance premiums paid by the employee.
6. During furlough leave, employees classified as Exempt employees, in accordance with U.S. Department of Labor regulations promulgated pursuant to the Fair Labor Standards Act of 1938, as amended, lose their exemption for the workweek in which the furlough occurs. See 29 C.F.R. § 541.5d(3)(b).
7. Once the funds have been restored, the agency head shall implement, on an equitable and systematic basis, the recall of furloughed employees. Failure on the part of an employee to return from furlough leave to his or her previous work status as directed in writing shall be cause for discharge.
8. Involuntary leave without pay conducted under this policy shall not be grievable.
9. For provisions regarding implementation of furlough of federally funded employees due to the restricting or limiting of federal funds, see Section C below. C. Provisions for Implementation of Furlough of Federally Funded Employees (Involuntary Leave Without Pay) Mississippi Code Annotated § 25-9-126 authorizes furloughs of federally funded employees as follows: In the event that federal funds for the funding of programs of any state agency shall be restricted or limited, the administrative board of such

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agency or agency administrative head shall have the authority to furlough rather than dismiss employees in accordance with rules and regulations established by MSPB. When instituting such a furlough, the administrative board or agency administrative head shall abide by the following rules and regulations:

1. The restriction or limiting of federal funds must be certified in writing by an agency of the federal government, or be an indisputable fact (as in the failure of the United States Congress to pass funding legislation for the federal fiscal year.)
2. The administrative board or agency administrative head shall developan equitable and systematic plan of furlough and shall administer it uniformly to all executive and subordinate employees, without regard to status, whose positions are funded by the federal funds being restricted or limited. Employees whose positions are funded only in part by federal funds may be placed on part-time duty to exclude the obligation and expenditure of federal funds.
3. Within forty-eight hours of implementation of the furlough plan, the administrative board or agency administrative head shall notify the State Personnel Director in writing of the furlough and shall include the reasons and the plan for implementation.
4. Employees placed on such furlough leave shall be given prior written notice, advising the employee of the particulars regarding the action, including the dates and time furlough leave is to begin and end.
5. While on furlough leave, an employee shall not accrue personal and major medical leave for that portion of the employee's salary funded by federal funds. Additionally, personal, major medical, and compensatory leave shall not be taken in lieu of furlough leave.
6. During furlough leave, group health and life insurance benefits funded by the State will continue for employees who remain qualified in accordance with the eligibility criteria as set forth in the group health and life insurance plan approved by the Health Insurance Management Board. An employee will continue to pay for dependent insurance coverage as well as other insurance premiums paid by the employee.
7. Once the restrictions have been lifted and/or the funds restored, the administrative board or agency administrative head shall implement, on an equitable and systematic basis, the recall of furloughed employees. Failure on the part of an employee to return from such leave to his or her previous work status as directed in writing shall be cause for discharge.
8. The administrative board or agency administrative head may make such furlough leave subject to early cancellation or periodic call-back on a case-by-case basis to protect public health, safety, or property, or to ensure operations of critical agency functions only upon approval by the federal agency of the obligation and expenditure of federal funds.

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9. Involuntary leave without pay conducted under this policy shall not be grievable.

7.4 EDUCATIONAL LEAVE

7.4.1 General Professional Development State agencies are authorized to grant paid educational leave on a part-time or full-time basis and/or reimburse employees for educational leave expenses in order for employees to develop job-related skills and to develop employees for higher-level professional and management positions; to prescribe eligibility for such educational leave and expense reimbursement; and, for related purposes. Employees should note that not all State agencies offer educational leave. See Mississippi Code Annotated § 37-101-293. MSPB is required to approve the form of the contract prepared by the Attorney General and establish a maximum salary amount at which any employee may be paid full compensation while on educational leave and establish a deduction ratio or reduced percentage rate of compensation to be paid to all employees compensated at a salary level above such maximum salary amount. An approved Educational Leave Assistance Contract template may be found at http://www.mspb.ms.gov. The law also stipulates that each agency granting paid educational leave or reimbursing expenses, or both, shall file an annual report with the Legislature detailing for each recipient’s position the cost of educational assistance, the degree program, and the school attended. This report, covering the previous fiscal year, shall also be filedwith MSPB on or before January 1 of each year. A sample Educational Leave Report may be found at https://www.mspb.ms.gov. See Mississippi Code Annotated § 37-101-293. A. Procedures Outline Agencies should:

1. Develop internal policies and procedures governing educational leave;
2. Identify the job classifications in which they are experiencing demonstrated critical shortages;
3. Have educational leave recipients sign a contract, the form of which has been approved by the Attorney General and MSPB; and,
4. Forward to MSPB and to the Legislature prior to January 1 of each year a copy of the annual report on the Educational Leave program as required by the statute. B. Eligibility
5. Requirements for All Employees a. Candidates for Educational Leave must have worked at a state agency for three years at the time of application or be working at a State agency at the time of application for part-time graduate level education in a particular profession deemed by the administrative head of the State

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agency to meet a critical need within the State agency.

b. Candidates must agree to enter into a contract with the requesting State agency, which must contain the statutory provisions and regulatory terms and conditions upon which the paid Educational Leave will be granted to the candidate. c. Candidates must attend a college or university located in the State of Mississippi and approved by the head of the agency unless such course of study is not available at a Mississippi college or school.

d. Candidates must agree to work as an employee in the same state agency for at least three (3) full years after completion of the course of study or, in the case of employees on educational leave on a part-time basis or receiving reimbursement for educational expenses only, to work for a time prorated based upon the total amount of expenses, including leave, paid for by the agency. 2. Additional Requirements for Mental Health Medical Residents a. Candidates must be medical residents of the University of Mississippi. b. Candidates must be approved by the Department of Mental Health Educational Leave Committee. c. Candidates must meet all obligations established under agreements between the Department of Mental Health and the University of Mississippi and the regulations promulgated by the Board of Mental Health. d. Candidates must fulfill their obligations under this program on an annual pro rata basis for each year on paid educational leave. C. Salaries of Employees on Educational Leave

1. Educational Leave Contract Salary a. The Educational Leave contract shall specify the salary by which Educational Leave recipients shall be compensated. b. MSPB prescribes the maximum salary levels permitted employees on Educational Leave, except for Department of Mental Health Medical Residents. Department of Mental Health Medical Residents may receive a stipend in an amount not to exceed the salary of a medical resident.
2. Determination of Maximum Educational Leave Salary a. Employees whose salaries at the time of application are $24,941.40 or less may have their salaries established at the discretion of the appointing

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authority at any salary up to the current salary at the time of application. The salary established shall be the maximum salary permitted while on Educational Leave.

b. Employees whose salaries at the time of application are greater than$24,941.40 may have their salaries established by the appointing authority at any salary up to $24,941.40. Appointing authorities may additionally grant 50% of the difference between $24,941.40 and the current salary. This formula shall establish the maximum salary permitted while on Educational Leave. See the following example:

Current Salary: $35,711.04 Educational Leave Salary: $24,941.40 Difference: $10,769.64 $10,769.64 x 50% = $5,384.82 $5,384.82 + $24,941.40 = $30,326.22 (max. salary on Educational Leave) c. If any part of a month is spent on Educational Leave, the employee shall be compensated at the Educational Leave salary for that entire month. d. Employees shall be informed of their Educational Leave salary prior to signing the Educational Leave Contract.

3. Legislative and Variable Compensation Plan Salary Increases

Employees shall be ineligible for salary increases for the time they are on Educational Leave. However, upon the completion of Educational Leave, recipients of Educational Leave shall have their salaries restored by appointing authorities to the level the salary would have been after the addition of any salary increases guaranteed by the Legislature during the period of Educational Leave. No back pay or back award of pay shall be authorized for the time spent on Educational Leave. D. Educational Programs Which Qualify for Educational Leave Educational Leave shall be granted only to pursue undergraduate and graduate level education. Undergraduate and graduate-level education shall be defined as an educational program:

1. Conducted by a college, university, or school; and
2. That awards academic credit upon successful completion of each course.

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E. Educational Opportunities Which Do Not Qualify for Educational Leave

Educational Leave does not apply to educational programs other than those identified above. Educational Leave shall not apply to training conducted, sponsored, or co- sponsored by the requesting agency, MSPB, or other state or federal agencies which offer job-related training of short duration.

F. Equal Educational Opportunity Appointing authorities shall ensure that Educational Leave and training opportunities are accorded all qualified agency employees without unlawful discrimination as to political affiliation, race, color, handicap, genetic information, religion, national origin, sex, religious creed, age, or disability. See Mississippi Code Annotated §§ 25-9-103; 25-9-149.

G. Duration of Educational Leave Unless otherwise terminated, the duration of Educational Leave may be the length of the semester, quarter, or term in which the employee is actually enrolled pursuing his or her designated professional course work; or at the option of the appointing authority, the duration may extend across successive semesters, quarters, or terms, as long as the employee is enrolled and pursuing his or her designated professional course work in each intervening semester, quarter, or term. Agencies shall maintain contemporaneous leave records, which detail those periods an employee uses Educational Leave. H. Conditions Requiring Termination of Educational Leave Educational Leave may be terminated by the administrative head of the agency based on a variety of reasons, including, but not limited to:

1. Any condition listed in the Educational Leave Contract;
2. Agency fund constraints;
3. Agency reorganization or change in agency mission,
4. Agency program changes,
5. Agency workload increases or staffing crises,
6. Reductions-in-force,
7. Disciplinary action, or
8. Failure to make adequate academic progress. Unless otherwise specified in the Educational Leave contract, adequate academic progress shall be defined as maintaining a “B” or better cumulative average. Failure to make adequate academic progress in one term may result in the employee being ineligible for further Educational Leave.

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I. Administrative Provisions

1. If an Educational Leave candidate will be having his or her salary decreased as a result of Educational Leave, the requesting agency shall submit the action into OSR. Please reference the OSR User Training Workbook located at http://www.dfa.ms.gov or contact your Classification, Compensation, and Recruitment Analyst for more detailed information regarding Educational Leave. The employee’s current salary plus any legislative guarantees will continue on the PIN to ensure proper salary projections.

2. Any Educational Leave candidate on full-time educational leave shall not accrue personal or major medical leave while on paid educational leave.

J. Refer to Mississippi Code Annotated § 37-101-293 for other requirements. These include specific employment obligations in exchange for Educational Leave benefits, repayment obligations and liquidated damages with interest for failure to fulfill the terms of the contract, other legal rights and remedies, and the requirement for annual agency reports to the Legislature on Educational Leave. K. The administrative head of the employing agency shall be responsible for stipulating any other needed contractual provisions, including but not limited to repayment obligations should the employee be separated for cause, failure to make adequate academic progress, disciplinary action, retirement, or other conditions which may result in the failure to meet Educational Leave contractual obligations. If the administrative head of the agency wishes to require the applicant to be employed at the conclusion of their Educational Leave in a specific geographic location, office, or location, then such terms should be addressed in the contract.

7.4.2 Professional Development Programs Certain paid educational leave and paid internship programs have been authorized to develop professional skills and to prepare employees for higher-level professional and management positions. Those employees deemed qualified for paid educational leave or paid internship shall receive funds that may be used to pay for tuition, books, and related fees to pursue their degrees. See Mississippi Code Annotated §§ 37-101-291 and 37-101- 292.

Employees may contact their agency human resources office for more information on the availability of Educational Leave benefits and agency specific policies pertaining to educational leave.

Part 120 Mississippi State Employee Handbook/Manual

27 Miss. Admin. Code Pt. 120 Mississippi State Employee Handbook/Manual

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TABLE OF CONTENTS CHAPTER 1 – WELCOME TO STATE GOVERNMENT ................................................................. 1 1.2 STATEMENT OF EQUAL OPPORTUNITY EMPLOYMENT .................................................. 1 1.3 THE STATEWIDE PERSONNEL SYSTEM ............................................................................... 1 The Mississippi State Personnel Board ................................................................................................... 1 Duties of the Mississippi State Personnel Board .................................................................................... 1 State Personnel Director ......................................................................................................................... 2 Personnel Advisory Council ................................................................................................................... 2 Employee Appeals Board ....................................................................................................................... 2 CHAPTER 2 – STATE EMPLOYMENT STATUS .............................................................................. 3 2.2 NON-STATE SERVICE EMPLOYMENT ................................................................................... 3 2.3 NOTIFICATION OF STATUS FOR NON-STATE SERVICE EMPLOYMENT ....................... 3 2.4 PROBATIONARY PERIOD AND TERMINATION AT WILL ................................................. 3 2.5 PROMOTIONAL OPPORTUNITIES FOR PROBATIONARY EMPLOYEES ......................... 3 2.6 EMPLOYEE DISCIPLINARY ACTION, GRIEVANCE, AND APPEAL RIGHTS .................. 4 2.7 TRANSFER ................................................................................................................................... 4 CHAPTER 3 – HOLIDAYS AND LEAVE ............................................................................................ 5 3.1 HOLIDAYS ................................................................................................................................... 5 3.2 LEAVE .......................................................................................................................................... 6 Transfer of Leave Between State Agencies ............................................................................................ 6 Personal Leave ........................................................................................................................................ 6 Major Medical Leave .............................................................................................................................. 7 Compensatory Leave .............................................................................................................................. 8 ➢ FLSA Compensatory Leave ........................................................................................................... 9 ➢ State Compensatory Leave ............................................................................................................ 9 Administrative Leave ............................................................................................................................ 10 Accumulated Leave Upon Retirement .................................................................................................. 10 Leave Record Keeping .......................................................................................................................... 10 Donated Leave for Catastrophic Injury or Illness ................................................................................. 11 Family and Medical Leave Act Leave .................................................................................................. 12 Availability of Family Medical Leave .................................................................................................. 13 Military Leave Entitlements ................................................................................................................. 13 Serious Health Condition ...................................................................................................................... 14 Intermittent or Reduced Schedule Leave .............................................................................................. 15 Married Couples ................................................................................................................................... 16 Notice Requirements ............................................................................................................................. 16 Use of Accrued Leave ........................................................................................................................... 17 Benefits During Leave .......................................................................................................................... 17 Return from Leave ................................................................................................................................ 17 Unlawful Acts ....................................................................................................................................... 18 Temporary Assignments ....................................................................................................................... 18 Leave Without Pay ................................................................................................................................ 18 Use of Leave During Pregnancy ........................................................................................................... 18

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Paid Parental Leave .............................................................................................................................. 18

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Military Leave .................................................................................................................................................. 20 Educational Leave ............................................................................................................................................ 20 Mississippi Living Organ Donor Leave ........................................................................................................... 20 3.3 PANDEMIC POLICY ............................................................................................................................. 21 Preventing the Spread of the Illness in the Workplace ..................................................................................... 21 Staying Home When Ill .................................................................................................................................... 21 Reporting to Work When Not Ill ...................................................................................................................... 21 3.4 MEDICATION USE IN THE WORKPLACE ....................................................................................... 22 CHAPTER 4 – EMPLOYEE BENEFITS ........................................................................................................ 24 4.2 WORKERS’ COMPENSATION ............................................................................................................ 24 4.3 TRAVEL AND EXPENSES ................................................................................................................... 25 4.4 SOCIAL SECURITY .............................................................................................................................. 25 4.5 RETIREMENT ........................................................................................................................................ 25 Contributions .................................................................................................................................................... 25 Vesting Period .................................................................................................................................................. 26 Retirement Eligibility ....................................................................................................................................... 26 4.6 INSURANCE .......................................................................................................................................... 26 4.7 CAFETERIA PLAN ................................................................................................................................ 27 4.8 STATE CREDIT UNIONS ..................................................................................................................... 27 4.9 UNEMPLOYMENT COMPENSATION ............................................................................................... 27 CHAPTER 5 – STANDARDS OF EMPLOYEE CONDUCT ........................................................................ 28 5.1 EMPLOYEE WORK SCHEDULES ...................................................................................................... 28 5.2 REMOTE WORK ................................................................................................................................... 28 5.3 ATTENDANCE ...................................................................................................................................... 28 5.4 DILIGENCE DURING WORK PERIOD ............................................................................................... 29 5.5 WORK PERFORMANCE ...................................................................................................................... 29 5.6 RESIGNATION ...................................................................................................................................... 29 5.7 WORKPLACE HARASSMENT ............................................................................................................ 29 5.8 CONFLICT OF INTEREST ................................................................................................................... 30 5.9 POLITICAL ACTIVITY ........................................................................................................................ 30 Political Contributions and Services................................................................................................................. 30 Use of Official Authority or Influence to Coerce Political Action ................................................................... 30 Fair Treatment of Applicants and Employees .................................................................................................. 31 Freedom From Political Coercion .................................................................................................................... 31 Informing Employees of Political Activities Laws .......................................................................................... 31 Violation of Provisions ..................................................................................................................................... 31 Prohibited Political Activity ............................................................................................................................. 31 The Hatch Act .................................................................................................................................................. 32 Agency Specific Prohibitions ........................................................................................................................... 32 5.10 WORKPLACE VIOLENCE ................................................................................................................... 32 5.11 DRUG-FREE WORK PLACE ACT OF 1988 ........................................................................................ 32

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5.12 DRUG AND ALCOHOL TESTING ...................................................................................................... 33

5.13 EMPLOYEE USE OF STATE PROPERTY........................................................................................... 33

Wireless Communication Devices and Electronic Communications ............................................................... 33

Storage of Information ..................................................................................................................................... 33

Expectation of Privacy ..................................................................................................................................... 34

Right to Search ................................................................................................................................................. 34

Personal Property ............................................................................................................................................. 34

5.14 PROHIBITED RELATIONSHIPS ......................................................................................................... 34

5.15 OUTSIDE EMPLOYMENT ................................................................................................................... 35

5.16 SOCIAL MEDIA .................................................................................................................................... 35

CHAPTER 6 – PERFORMANCE REVIEW SYSTEM ................................................................................. 36

6.1 SCOPE .................................................................................................................................................... 36

6.2 APPLICABILITY ................................................................................................................................... 37

6.3 WORKFORCE TALENT DEVELOPMENT AND SUCCESSION PLANNING ................................. 37

6.4 PROCESS ................................................................................................................................................ 37

1. The Beginning of the Review Period....................................................................................................... 37
2. Review Sessions ...................................................................................................................................... 38
3. The End of the Review Period ................................................................................................................. 38

CHAPTER 7 – EMPLOYEE CORRECTIVE AND DISCIPLINARY ACTION ........................................ 40

7.1 DISMISSED OR OTHERWISE ADVERSELY AFFECTED AS TO COMPENSATION OR

EMPLOYMENT STATUS .................................................................................................................................. 40

Written Reprimand and Informal Corrective Action ........................................................................................ 40

7.2 INEFFICIENCY OR OTHER GOOD CAUSE....................................................................................... 41

7.3 DUE PROCESS ...................................................................................................................................... 42

Administrative Leave/Suspension with Pay Pending the Employee’s Due Process Hearing ........................... 43

7.4 DISCIPLINARY/CORRECTIVE ACTION DECISION ........................................................................ 43

7.5 FORMS OF DISCIPLINE AND CORRECTIVE ACTION ................................................................... 44

Dismissal .......................................................................................................................................................... 44

Involuntary Demotion ...................................................................................................................................... 44

Suspension Without Pay ................................................................................................................................... 44

Written Reprimand ........................................................................................................................................... 45

Informal Corrective Action .............................................................................................................................. 45

CHAPTER 8 – GRIEVANCES ......................................................................................................................... 46

8.2 GRIEVANCE PROCEDURE ................................................................................................................. 46

8.3 GRIEVANCE FORM AND TIMEFRAME REQUIREMENTS ............................................................ 47

CHAPTER 9 – MISSISSIPPI EMPLOYEE APPEALS BOARD .................................................................. 48

Definitions ............................................................................................................................................................ 48

9.1 AVAILABILITY OF RULES AND MEAB ADMINISTRATIVE OFFICE ......................................... 49

9.2 TIME CALCULATIONS ........................................................................................................................ 49

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9.3 WHO MAY APPEAL; ACTIONS WHICH MAY BE APPEALED ..................................................... 49 9.4 PERFECTION OF APPEAL BY TIMELY FILING .............................................................................. 49 9.5 JURISDICTION ...................................................................................................................................... 50 9.6 PARTIES ................................................................................................................................................. 50 9.7 FILING OF PLEADINGS AND OTHER DOCUMENTS; COPIES TO BE MADE AVAILABLE..... 50 9.8 ADMINISTRATIVE OFFICE ................................................................................................................ 52 9.9 ASSIGNMENT OF CASES; SCHEDULING OF PREHEARING CONFERENCE ............................. 52 9.10 PREHEARING CONFERENCE AND ORDER .................................................................................... 52 9.11 MOTIONS ............................................................................................................................................... 53 9.12 WITNESSES ........................................................................................................................................... 53 9.13 SUBPOENAS .......................................................................................................................................... 53 9.14 WITHDRAWALS, SETTLEMENTS, AND DISMISSALS .................................................................. 54 9.15 FAILURE TO APPEAR AT HEARING ................................................................................................ 55 9.16 CONDUCT OF HEARING ..................................................................................................................... 55 9.17 EVIDENCE ............................................................................................................................................. 56 9.18 ORDER OF PROOF; BURDEN OF PROOF ......................................................................................... 56 9.19 PRESERVATION OF RECORD HEARING ......................................................................................... 57 9.20 ORDER TO BE FILED UPON COMPLETION OF HEARING ........................................................... 57 9.21 COMPLIANCE WITH ORDER ............................................................................................................. 57 9.22 RELIEF TO BE GRANTED ................................................................................................................... 57 9.23 JUDICIAL REVIEW .............................................................................................................................. 58 9.24 ASSESSMENT OF FEES AND COSTS ................................................................................................ 58 9.25 JUDICIAL CONDUCT ........................................................................................................................... 58 9.26 AMENDMENT OF RULES; VALIDITY OF RULES; ENFORCEMENT OF RULES ........................ 59

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CHAPTER 1 – WELCOME TO STATE GOVERNMENT 1.1 INTRODUCTION This Handbook contains the rules and regulations for State employees under the purview of the Mississippi State Personnel Board. The information contained in this Handbook is not intended to and does not grant to any State employee any additional rights or privileges of employment not otherwise expressly provided in State or Federal law. The rules of the Mississippi State Personnel Board are periodically revised. The Mississippi State Employee Handbook is available on the Mississippi State Personnel Board website at http://www.mspb.ms.gov and should be read in conjunction with the Mississippi State Personnel Board Policy and Procedures Manual.

This Mississippi State Employee Handbook is effective as of July 1, 2026.

1.2 STATEMENT OF EQUAL OPPORTUNITY EMPLOYMENT The State of Mississippi is an equal opportunity employer and assures equal employment opportunities to all persons in compliance with state and federal law. In order to implement the State’s equal employment policy and to assure non-discriminatory personnel administration, theMississippi State Personnel Board promotes non-discriminatory practices and procedures in all phases of personnel administration and prohibits any form of unlawful discrimination. Equal employment opportunity can only be attained through State agency commitment to complying with all applicable laws affording equal employment opportunities to individuals. Accordingly, it is imperative that State agencies make all personnel decisions in accordance with Mississippi State Personnel Board policies, practices, and procedures.

Equal employment opportunity does not guarantee an employee any rights not otherwise provided by law.

1.3 THE STATEWIDE PERSONNEL SYSTEM In 1980, the Mississippi State Legislature created the Statewide Personnel System, which governs the establishment of employment positions, classification of positions, employment conduct, movement and separation of employees and provides a system of personnel management for State government. The Legislature also created the Mississippi State Personnel Board (hereinafter referred to as “MSPB”) as the governing authority to administer the Statewide Personnel System. In 1981, the Legislature further established the “Colonel Guy Groff/Neville Kenning State Variable Compensation Plan” or the VCP and authorized MSPB to implement the plan and review the plan annually. Mississippi Code Annotated § 25-9-147. The Mississippi State Personnel Board MSPB is composed of five members appointed by the Governor with the advice and consent of the Senate. One Board member is appointed from each of the three Supreme Court Districts, and two members are appointed from the State at large. Each Board member serves a five- year term, with the terms staggered such that one member’s appointment expires at the end of each fiscal year. In addition to the Board members, the Lieutenant Governor may designate two Senators and the Speaker of the House may designate two Representatives to attend Board meetings, acting in the capacity of advisors, but with no vote on any matter within the jurisdiction of the Board. Mississippi Code Annotated § 25-9-109.

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Duties of the Mississippi State Personnel Board

The duties of MSPB are two-fold: (1) to support State government by providing a system of personnel management that enhances efficiency and effectiveness with regard to the use of personnel resources and (2) to provide the Executive and Legislative branches data necessary for budgetary and planning purposes. MSPB has a strong and continuing commitment to equal employment opportunity, employee development, performance review, uniform administration of leave benefits, open communication, and equitable and adequate compensation. The framework of personnel management provided by MSPB is designed to be fair to all, based on state-of-art theory and practice, and in compliance with Federal and State laws and regulations. Mississippi Code Annotated §§ 25-9-101, et seq. State Personnel Director The State Personnel Director is the MSPB Executive Director. The Board sets the general policies by which its assigned duties and responsibilities may be accomplished and has tasked its Executive Director with the daily administration of the system. His or her role is “to administer the operations of the State Personnel System and to otherwise act in the capacity of chief executive officer to the Mississippi State Personnel Board.” Mississippi Code Annotated § 25-9-119. Personnel Advisory Council The Personnel Advisory Council is composed of personnel directors of five major State agencies. These members, appointed by and serving a term concurrent with that of the Governor, advise MSPB in the development of comprehensive policies, programs, rules and regulations that will improve public employment in the State. The Council also assists in the promotion of public understanding of the purposes, policies and practices of the Statewide Personnel System. Mississippi Code Annotated § 25-9-117. Employee Appeals Board Mississippi Code Annotated § 25-9-129 provides that the Mississippi State Personnel Board shall appoint an employee appeals board (hereinafter referred to as the Mississippi Employee Appeals Board or “MEAB”). The MEAB shall consist of three (3) hearing officers for the purpose of holding hearings, compiling evidence and rendering decisions on appeals of personnel action adversely affecting employment status or compensation (formal disciplinary action defined in Section 7.1). Grievable issues specified in Section 8.1 may also be appealed to the MEAB. The MEAB website may be found at https://www.eab.ms.gov/. Employees can find this handbook, FAQs, the Notice of Appeal, and grievance forms on this website.

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CHAPTER 2 – STATE EMPLOYMENT STATUS 2.1 STATE SERVICE EMPLOYMENT MSPB identifies employees of State agencies as either State Service employees or Non-State Service employees. The Legislature has defined by statute those employees that are considered Non-State Service employees. See Mississippi Code Annotated § 25-9-107(c). Employees of State departments, agencies and institutions who are not listed within that statute are defined as State Service employees. A State Service employee retains that status upon transfer (intra- and inter-agency), promotion, demotion, or title change as long as he or she remains in a State Service position and does not have a break in service. A break in service is defined as either (1) lump sum payment for accrued personal leave, (2) lapse of one eight-hour work day between employment with the original State Service status agency and the new State Service status agency, or (3) separation of employment.

2.2 NON-STATE SERVICE EMPLOYMENT Non-State Service employees cannot attain State Service status while employed in a Non-State Service position. MSPB has salary setting authority for several categories of Non-State Service employees. In addition, MSPB has the authority to set minimum qualifications for Non-State Service positions such as time-limited and part-time employees as well as verify the statutory qualifications of certain physicians, dentists, veterinarians, nurse practitioners, and attorneys.

2.3 NOTIFICATION OF STATUS FOR NON-STATE SERVICE EMPLOYMENT Each applicant, including State Service employees who have attained permanent status, shall be given written notice, prior to his or her appointment to a Non-State Service position by the appointing authority, that he or she may be dismissed or otherwise adversely affected as to compensation or employment status, with or without cause and is not entitled to due process of law.

2.4 PROBATIONARY PERIOD AND TERMINATION AT WILL Every employee, upon original entry into a State Service status position, must successfully serve a twelve-month probationary period before that employee is granted State Service status. During the probationary period, the employee’s work and conduct are carefully observed. During this twelve- month probationary period, the employee is Non-State Service and may be dismissed or otherwise adversely affected as to compensation or employment status, with or without cause and is not entitled to due process of law.

2.5 PROMOTIONAL OPPORTUNITIES FOR PROBATIONARY EMPLOYEES A state service status, probationary state service, part-time, time-limited and/or other MSPB purview non-state service employee, who has been continuously employed for six (6) months in the agency where the opening occurs, may apply for a Promotional opening through submission of a current State of Mississippi Application. If the employee transfers to another State Service status position in the same agency or in a different State Service status agency, the employee shall continue to serve the remainder of the twelve-month probationary period without penalty, provided there is no break in service.

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2.6 EMPLOYEE DISCIPLINARY ACTION, GRIEVANCE, AND APPEAL RIGHTS Mississippi Code Annotated § 25-9-127 requires that State Service employees may only be dismissed or otherwise adversely affected as to compensation or employment status for inefficiency or other good cause. The statute also requires that such personnel action must be in accordance with policies and procedures promulgated by the MSPB, complying with due process of law. Chapter 7 of this handbook contains the policies and procedures concerning employee corrective and disciplinary action for State Service employees. A Non-State Service employee may be dismissed or otherwise adversely affected as to compensation or employment status, with or without cause and is not entitled to due process of law.

Chapters 8 and 9 contain the policies and procedures for employee grievances and appeals to the Mississippi Employee Appeals Board (MEAB).

2.7 TRANSFER Employees may transfer from an employment position in one agency to a vacant employment position in another agency. The transfer of a State Service employee into a promotional State Service position at another agency is accomplished through the use of a Referred List, except in the case of a demotional transfer or a lateral transfer into the same job class currently occupied by the employee.

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CHAPTER 3 – HOLIDAYS AND LEAVE Although MSPB develops rules governing the administration of leave benefits, the appointing authority of each agency may develop internal administrative procedures governing the application of these leave rules. Agency Human Resources Offices, payroll offices or immediate supervisors may provide employees with information regarding procedures unique to a specific agency.

3.1 HOLIDAYS State employees receive regular pay for ten legal holidays and for any other day proclaimed as a holiday by the Governor of the State of Mississippi or the President of the United States. Employees who are not in an active pay status on a legal holiday will not be compensated for the holiday. Active pay status is defined as either physically working or on paid leave the day of a legal holiday, the day immediately preceding a legal holiday, or the day immediately following a legal holiday. Compensation for legal holidays for part-time employees will be computed on a pro-rata basis according to hours regularly scheduled to work. The State of Mississippi observes the following legal holidays:

January 1 New Year’s Day The Third Monday of January Robert E. Lee’s Birthday and Dr. Martin Luther King Jr.’s Birthday The Third Monday of February Washington’s Birthday The Last Monday of April Confederate Memorial Day The Last Monday of May National Memorial Day and Jefferson Davis’ Birthday July 4 Independence Day The First Monday of September Labor Day November 11 Armistice or Veterans’ Day A day fixed by proclamation by the Governor of Mississippi as a day of Thanksgiving, which shall be fixed to correspond to the date proclaimed by the United States President

Thanksgiving Day December 25 Christmas Day In the event any of these holidays fall on a Saturday or Sunday, then the legal holiday will be observed as declared by the Governor. Except as may be provided in specific agency appropriations bills, when, in the opinion of the agency, it is essential that a State employee work during an official State holiday, the employee will receive credit for the number of hours actually worked. In addition, and in accordance with specific provisions of an agency's appropriation bill, an agency may require employees in specific job classes to work on an official State holiday and be paid call-back pay in lieu of receiving compensatory time credit.

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3.2 LEAVE Each month State employees earn two types of leave, personal leave and major medical (sick) leave. Employees, including part-time employees, will be granted leaves of absence for Non-State Service and military leave as provided by statute. The appointing authority cannot increase the amount of personal leave or Major Medical Leave to an employee's credit, and it is unlawful for an appointing authority to grant personal and Major Medical Leave in an amount greater than was earned and accumulated by the employee. Part-time employees are granted leave only during periods when they are scheduled to work. Transfer of Leave Between State Agencies

Both major medical and personal leave earned by employees are transferable between any and all State agencies, junior colleges and senior colleges. However, compensatory leave is not transferable. Each appointing authority will be furnished a statement of accrued leave when an employee transfers between agencies. Upon transfer, leave accrual rates at the receiving agency will reflect total continuous service. An employee transferring with a break in service must begin accruing at the rate established for new employees. Lump sum payment for accrued personal leave and/or the lapse of one eight-hour workday between the termination date with the original agency and the effective date with the new agency denote a break in service. Personal Leave All full-time employees and appointed officers of the State of Mississippi earn personal leave as follows:

CONTINUOUS SERVICE ACCRUAL RATE (Monthly) ACCRUAL RATE (Annually) 1 month to 3 years 12 hours 18 days 37 months to 8 years 14 hours 21 days 97 months to 15 years 16 hours 24 days Over 15 years 18 hours 27 days Employees begin to earn and accumulate personal leave on the first working day of each month the employee works or receives paid leave. Personal leave is available for the employee’s use on the first day of the month after the leave is earned. Part-time and temporary employees accrue personal leave on a pro rata basis. There is no limit to the accumulation of personal leave. Upon termination of employment, each employee may be paid for not more than thirty days of accumulated personal leave.

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Employees are encouraged to use earned personal leave for vacations and personal business. However, all requests for personal leave, except when taken due to an illness, are approved at the agency’s discretion. Personal or compensatory leave must be used for illnesses of the employee requiring absences of one day or less. In addition, accrued personal or compensatory leave must be used for the first day of an employee's illness requiring his or her absence of more than one day. A workday is defined as eight working hours. Accrued personal, major medical, or compensatory leave may also be used for an illness in the employee's immediate family, including only a spouse, parent, stepparent, sibling, child, stepchild, grandchild, grandparent, son-in-law, daughter-in-law, mother-in-law, father-in-law, brother-in-law or sister-in-law. A state law enforcement officer who is injured by wound or accident in the line of duty is not required to use earned personal leave during the period of recovery from such injury. For the purpose of computing credit for personal leave, each appointed officer or employee is considered to work no more than five days each week. For purposes of calculating the leave accrual rate for employees, leaves of absence granted by the appointing authority for one year or less are permitted without forfeiting previously accumulated continuous service. The provisions of this section do not apply to military leaves of absence. The beneficiary of an employee who dies with unused personal leave will receive payment for all personal leave accumulated but not used by the employee. The beneficiary designated with PERS will receive these benefits unless another beneficiary has been designated. Source: Mississippi Code Annotated §§ 25-3-93 and 25-3-97. Major Medical Leave All full-time employees and appointed officers of the State of Mississippi accrue Major Medical Leave as follows:

CONTINUOUS SERVICE ACCRUAL RATE (Monthly) ACCRUAL RATE (Annually) 1 month to 3 years 8 hours 12 days 37 months to 8 years 7 hours 10.5 days 97 months to 15 years 6 hours 9 days Over 15 years 5 hours 7.5 days Employees begin to earn and accumulate Major Medical Leave on the first working day of each month the employee works or receives paid leave. The leave is available for the employee’s use the first day of the month after the leave is earned. Part-time and temporary employees accrue Major Medical Leave on a pro rata basis. There is no maximum limit to Major Medical Leave accumulation. Major Medical Leave may be used for the illness or injury of an employee or member of the employee's immediate family, including only a spouse, parent, stepparent, sibling, child, stepchild, grandchild, grandparent, son-in-law, daughter-in-law, mother-in-law, father-in-law, brother-in-law or sister-in-law. The employee should remember that Major Medical Leave

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can be used in this manner only after the employee has used one day of accrued personal or compensatory leave. In the event that an employee has no accrued personal or compensatory leave, the first day of leave must be taken as Leave Without Pay. This is a requirement for each absence due to illness. Major Medical Leave may be used, without prior use of personal or compensatory leave, to cover regularly scheduled visits to a doctor’s office or a hospital for the continuing treatment of a chronic disease, as certified in advance by a physician. "Physician" means a doctor of medicine, osteopathy, dental medicine, podiatry or chiropractic. Employees must remember that the initial eight hours (one day) of leave relating to the condition must be personal leave, compensatory leave or Leave Without Pay. For each absence due to illness that requires the employee be absent from work for thirty-two consecutive working hours (combined personal, major medical, and compensatory leave), Major Medical Leave can be authorized only when certified in writing by the attending physician. An employee may use up to three days of earned Major Medical Leave for each occurrence of death in the immediate family requiring the employee's absence from work. No use of personal or compensatory leave will be required prior to the use of Major Medical Leave for this purpose. The immediate family is defined as only a spouse, parent, stepparent, sibling, child, stepchild, grandchild, grandparent, son-in-law, daughter-in-law, mother-in-law, father- in-law, brother-in-law, or sister-in-law. Child means a biological, adopted or foster child, or a child for whom the individual stands or stood in loco parentis.

An employee may use up to six weeks of earned major medical leave for the birth of the employee’s biological child or for the placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement, after using the paid parental leave authorized under the Mississippi State Employees Paid Parental Leave Act.

With appropriate documentation, an employee is entitled to use all accrued Major Medical Leave for recuperation from illness. In cases of illness or disability exhausting available Major Medical Leave, the employee may be allowed to charge the excess days against accumulated personal leave or compensatory time earned by the employee. If all accumulated major medical, personal leave and compensatory time have been used, employees are subject to a pro rata deduction from their salaries for the length of time or number of days in excess of accumulated leave. Family Medical Leave is also available for qualifying State employees and is described in detail in the Family and Medical Leave Act Leave Section herein. A state law enforcement officer who is injured by wound or accident in the line of duty is not required to use earned major medical leave during the period of recovery from such injury.

Employers have no authority to pay an employee's beneficiary for unused Major Medical Leave in the event of an employee's death. Source: Mississippi Code Annotated § 25-3-95.

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Compensatory Leave Compensatory leave is administered in accordance with State law and in compliance with the Fair Labor Standards Act and the regulations promulgated by the U. S. Department of Labor (hereinafter referred to as “DOL”). ➢ FLSA Compensatory Leave State employees in positions which have been classified “non-exempt,” as defined in the federal regulations promulgated by DOL pursuant to the Fair Labor Standards Act (hereinafter referred to as “FLSA”), may receive compensatory time at a rate of not less than one and one-half hours for each hour worked over forty hours in a workweek as defined in DOL regulations, instead of cash overtime pay. State employees in positions that have been classified as “exempt” under DOL regulations may receive compensatory time earned under FLSA only when they perform duties of a “non- exempt” position on an emergency and temporary basis. There are limits on the extent to which the non-exempt employee may continue to accrue compensatory time. The limit of earned compensatory time under the FLSA for most non-exempt employees is 240 hours. Law enforcement, fire fighters, emergency response personnel, and employees engaged in seasonal activities may accrue up to 480 hours of compensatory time under the FLSA. State employees should consult their agency Human Resources Office to confirm the status of their position under the FLSA, when their DOL workweek begins and ends, and to determine the limit of compensatory time, which may be earned for their position under the FLSA. The appointing authority may require a State employee to use compensatory time earned pursuant to the FLSA prior to the use of accrued personal or state compensatory time. Further, the appointing authority may require a non-exempt employee to take FLSA compensatory time off when the employee’s compensatory time earned under the FLSA has reached the limit allowed under the regulations, as stated above. ➢ State Compensatory Leave State law provides that when, in the opinion of the appointing authority, it is essential that a State employee work after normal working hours, the employee may receive credit for compensatory leave. Further, except as otherwise provided by statute,when in the opinion of the appointing authority, it is essential that a State employee work during an official State holiday, the employee will receive credit for compensatory leave. Compensatory time earned under State law is credited at a rate of an hour for an hour for all employees. Upon termination of employment, an employee may not be paid for accumulated state compensatory leave. Should an employee retire having accumulated state compensatory leave, such leave may not be counted as creditable service for retirement purposes. Employers also have no authority to pay an employee’s beneficiary for

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unused state compensatory leave in the event of an employee’s death. Administrative Leave State employees may be granted administrative leave with pay. For the purposes of this section, “administrative leave” means discretionary leave with pay, other than personal leave or Major Medical Leave. • The appointing authority may grant administrative leave to any employee serving as a witness or juror or party litigant, as verified by the clerk of the court, in addition to any fees paid for such services, and such services or necessary appearance in any court shall not be counted as personal leave. • The Governor or the appointing authority may grant administrative leave with pay to State employees on a local or statewide basis in the event of extreme weather conditions or in the event of a manmade, technological or natural disaster or emergency. Any employee on a previously approved leave shall be eligible for such administrative leave granted by the Governor or appointing authority and shall not be charged for his or her previously approved leave. Appointing authorities should require intermittent remote work in lieu of administrative leave for eligible employees. The number of hours of remote work granted in lieu of administrative leave should be reported to MSPB during the first business week of each month. The report shall include the dates remote work was granted and a brief description of why remote work was granted in lieu of administrative leave. • The appointing authority may grant administrative leave with pay to any employee who is a certified disaster service volunteer of the American Red Cross (hereinafter referred to as “ARC”) and who participates in specialized disaster relief services for the ARC in this State and in states contiguous to this State when the ARC requests the employee's participation. Administrative leave granted under this paragraph cannot exceed twenty days in any twelve-month period. An employee on leave under this paragraph is not considered to be an employee of the State for the purposes of workers' compensation or for purposes of claims against the State. As used in this paragraph, the term "disaster" includes disasters designated at level II and above in the ARC national regulations and procedures. • During the first business week of each month, every agency or appointing authority shall report to MSPB the total number of hours it granted for administrative leave in the previous month. The report shall include the dates administrative leave was granted, and a brief description of why the administrative leave was granted. Accumulated Leave Upon Retirement Unused personal and Major Medical Leave for which an employee is not compensated upon termination or retirement will be governed by the rules of the Public Employees’ Retirement System based on your Tier within the plan. Contact the agency Human Resources Office, payroll officer and/or PERS (http://www.pers.ms.gov) for answers to specific questions regarding the crediting of unused leave.

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Leave Record Keeping All State agencies whose payroll is processed through the online system of record offer the same leave record reporting method. Time and leave record reporting should be entered into the online system of record in a timely manner to ensure that records accurately reflect the State’s liabilities and obligations. The balances of both personal and Major Medical Leave are reported on each pay stub. Employees should verify leave balances on a monthly basis for accuracy. Donated Leave for Catastrophic Injury or Illness “Catastrophic injury or illness” means a life-threatening injury or illness of an employee or a member of an employee’s immediate family, including only a spouse, parent, step-parent, sibling, child or stepchild, which totally incapacitates the employee from work, as verified by a licensed physician, and forces the employee to exhaust all leave time earned by that employee, resulting in the loss of compensation for the employee. Conditions that are short- term in nature, including, but not limited to, common illnesses such as influenza and the measles, and common injuries are not catastrophic. Chronic illnesses or injuries, such as cancer or major surgery, which result in intermittent absences from work and which are long- term in nature and require long recuperation periods, may be considered catastrophic. Any employee may donate a portion of his or her earned personal leave or Major Medical Leave to another employee who is either suffering from a catastrophic injury or illness or who has a member of his or her immediate family that is suffering from a catastrophic injury or illness, as follows: • The employee donating the leave (the “donor employee”) must designate the employee who is to receive the leave (the “recipient employee”) and the amount of earned personal leave and Major Medical Leave that is to be donated and must notify the donor employee's supervisor of his or her designation. The donor employee’s supervisor will then notify the recipient employee's supervisor of the amount of leave that has been donated by the donor employee to the recipient employee. • The maximum amount of earned personal leave that an employee may donate to any other employee may not exceed the number of days that would leave the donor employee with fewer than seven days of personal leave, and the maximum amount of earned Major Medical Leave that an employee may donate to any other employee may not exceed fifty percent of the earned Major Medical Leave of the donor employee. All donated leave shall be in increments of at least twenty-four hours. • An employee must have exhausted all of his or her earned personal leave and Major Medical Leave before he or she will be eligible to receive any leave donated by another employee. • Before an employee may receive donated leave, he or she must provide his or her supervisor with a physician's statement that states the beginning date of the catastrophic injury or illness, a description of the injury or illness, a prognosis for recovery and the anticipated date that the recipient employee will be able to return to work.

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• If an employee is aggrieved by the decision of his or her appointing authority that the employee is not eligible to receive donated leave because the injury or illness of the employee or member of the employee’s immediate family is not, in the appointing authority’s determination, a catastrophic injury or illness, the employee may appeal the decision to the Employee Appeals Board. • The maximum period of time that an employee may use donated leave without resuming work at his or her place of employment is ninety days, beginning on the first day that the recipient employee uses donated leave. Donated leave that is not used because arecipient employee has used the maximum amount of donated leave authorized under this paragraph must be returned to the donor employees in the manner provided in this subsection. • If the total amount of leave that is donated to any employee is not used by the recipient employee, the donated leave must be returned to the donor employees on a pro rata basis, based on the ratio of the number of days of leave donated by each donor employee to the total number of days of leave donated by all donor employees. In no case will any donor employee receive more leave in return than the employee donated. • The failure of any appointing authority or supervisor of any employee to properly deduct an employee’s donation of leave to another employee from the donor employee’s earned personal leave or Major Medical Leave shall constitute just cause for the dismissal of the appointing authority or supervisor. • No person, through the use of coercion, threats or intimidation shall require or attempt to require any employee to donate his or her leave to another employee. Any person who alleges a violation of this paragraph must report the violation to the executive director of the agency by whom he or she is employed or, if the alleged violator is the executive director of the agency, then the employee must report the violation to MSPB. Anyperson found to have violated this paragraph will be subject to removal from office or termination of employment. • No employee can donate leave after tendering notice of separation for any reason or after termination of his or her employment. • Recipient employees of agencies with more than five hundred (500) employees as of March 25, 2003 may receive donated leave only from donor employees within the same agency. A recipient employee in an agency with five hundred (500) or fewer employees as of March 25, 2003 may receive donated leave from any donor employee. • In order for an employee to be eligible to receive donated leave, the employee must have been employed for a total of at least twelve months by the employer on the date on which the leave is donated and have been employed for at least 1,250 hours of service with such employer during the previous twelve month period from the date on which the leave is donated. • Donated leave may not be used in lieu of disability retirement.

Family and Medical Leave Act Leave In keeping with the requirements of the Family and Medical Leave Act of 1993 (hereinafter referred to as “FMLA”) and the State of Mississippi’s policies, an employee must have

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worked for the State for a total of twelve months and the employee must have worked for the State for 1,250 hours in the twelve-month period immediately preceding the commencement of the leave to be eligible for FMLA leave. An employee meeting these requirements is referred to as an “eligible employee” for purposes of this policy. Availability of Family Medical Leave An eligible employee may take up to the equivalent of twelve workweeks of unpaid family and/or medical leave (FMLA leave) during any twelve-month period for one or more of the following purposes: • For incapacity due to pregnancy, prenatal medical care, or childbirth; • To care for a newborn son or daughter, a recently adopted child, or a recently placed foster child through formal placement by a State agency; • To care for a legal spouse, parent (not including in-laws) or son or daughter (under the age of eighteen or over the age of eighteen and incapable of self- care because of a physical or mental disability), who has a serious health condition; or • Because of a serious health condition that makes the employee unable to perform the functions of his or her job. Leave to care for a new child must be taken within the first twelve months of birth or placement by adoption or foster care, and leave may be taken by the father and/or the mother of the child. Federal regulations allow an employer to choose from several different methods in determining the twelve-month period in which the twelve weeks of leave entitlement occurs. Military Leave Entitlements Eligible employees are entitled to two different kinds of leave as a result of having family members in the military: • Eligible employees are entitled to up to twelve weeks of FMLA leave because of any qualifying exigency arising out of the fact that the spouse, son, daughter, or parent of the employee is a member of any Armed Forces and/or a reserve component of the Armed Forces on covered active duty, or has been notified of an impending call to covered active duty status. Qualifying exigencies may include any one or more of the following: 1) attending to issues arising from a short notice (seven days or less) of deployment, with FMLA leave entitlement lasting up to seven days from the notice; 2) attending certain military events; 3) attending certain childcare and school activities related to the military duty; 4) addressing certain financial and legal arrangements; 5) attending certain counseling sessions; 6) taking up to fifteen days to spend with a military member who is on short-term, temporary rest and recuperation leave; 7) attending post-deployment reintegration briefings; 8) parental care leave, when a military member’s parent is incapable of self-care when the care is

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necessitated by the member’s covered active duty; or 9) other activities agreed to by the agency and the employee. Eligible employees must provide notice of the need for such leave as soon as reasonable and practicable. This kind of leave may be taken intermittently or on a reduced schedule. Upon request, eligible employees must provide documentation to support any request for leave. • Eligible employees may take up to twenty-six weeks of leave during a single twelve-month period to care for a “military member” who is the employee’s spouse, son, daughter, parent or next of kin (nearest blood relative or designated as such). A military member is a member of the Armed Forces (including a member of the National Guard or Reserves) who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness; or a veteran, who was discharged or released under conditions other than dishonorable, who is undergoing medical treatment, recuperation, or therapy, for a serious injury or illness and who was a member of the Armed Forces (including a member of the National Guard or Reserves) at any time during the period of five years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy, as set forth in the FMLA regulations. Eligible employees may take this kind of leave intermittently, or on a reduced schedule, where medically necessary. This twenty-six week leave entitlement will include all other permissible FMLA leave. Serious Health Condition A “serious health condition” is defined as an illness, injury, or physical or mental condition that involves: • In-patient care in a hospital, hospice, or residential care facility, including a period of incapacity or treatment related to the inpatient care (i.e., an overnight stay); • A period of incapacity of more than three consecutive calendar days, with two or more visits to a health care provider, one occurring within seven days of the onset of incapacity, and the second within thirty days of the onset (unless extenuating circumstances exist); • A period of incapacity of more than three consecutive calendar days, withone or more visits to a health care provider, the first occurring within seven days of the onset of the incapacity, and which results in a regimen of continuing treatment under the supervision of the health care provider (example: four-day absence, one doctor’s visit, and prescription medication); • Any period of incapacity due to pregnancy, for prenatal care, or childbirth; • Treatment for or incapacity because of a chronic serious health condition (examples: diabetes or epilepsy), which requires periodic visits (at least two per year) for treatment by a health care provider; • Incapacity which is permanent or long term for which treatment may be

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ineffective, and the individual is under the continuing supervision of a healthcare provider (example: Alzheimer’s Disease); or • Any absence to receive multiple treatments by a health care provider either for restorative surgery after an injury, or for a condition that would likely result in a period of incapacity of more than three consecutive calendar days in the absence of treatment (example: chemotherapy treatments for cancer). The serious health condition must prevent the employee from performing the functions of his or her job or prevent the qualified family member from participating in school or other daily functions. A “serious injury or illness” in the case of a member of the Armed Forces (including a member of the National Guard or Reserves), means an injury or illness that was incurred by the military member in the line of duty on covered active duty in the Armed Forces (or existed before the beginning of the service member’s covered active duty and was aggravated by service in the line of duty on covered active duty in the Armed Forces) and that may render the service member medically unfit to perform the duties of the service member’s office, grade, rank, or rating; and in the case of a veteran who was a member of the Armed Forces (including a member of the National Guard or Reserves) at any time during a period of covered active duty, means a qualifying (as defined by the Secretary of Labor) injury or illness that was incurred by the covered service member in the line of duty on covered active duty in the Armed Forces (or existed before the beginning of the service member’s covered active duty and was aggravated by service in the line of duty on covered active duty in the Armed Forces) and that manifested itself before or after the service member became a veteran, and is: • A continuation of a serious injury or illness that was incurred or aggravated when the covered veteran was a member of the Armed Forces and rendered the service member medically unfit to perform the duties of the service member’s office, grade, rank, or rating; or • A physical or mental condition for which the covered veteran has received a U.S. Department of Veterans Affairs Service-Related Disability Rating (VASRD) of 50 percent or greater, and such VASRD rating is based, in whole or in part, on the condition precipitating the need for caregiver leave; or • A physical or mental condition that substantially impairs the veteran’s ability to secure or follow a substantially gainful occupation by reason of a disability or disabilities related to military service, or would do so absent treatment; or • An injury, including a psychological injury, on the basis of which the covered veteran has been enrolled in the Department of Veterans Affairs Program of Comprehensive Assistance for Family Caregivers. Intermittent or Reduced Schedule Leave An eligible employee generally does not need to use FMLA leave entitlement in one block. Eligible employees who, because of a serious health condition of their own or a qualifying relative, need to take FMLA leave on an intermittent basis or to stretch

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their leave out by working a reduced schedule, must provide certification of the medical necessity for such leave. Eligible employees must make reasonable efforts to schedule planned medical treatment so as not to unduly disrupt the agency’s operations. When eligible employees request intermittent or reduced schedule leave because of a birth or placement of a child with them for adoption or foster care, the agency director and/or management will consider such things as how the request for intermittent leave or reduced hours will affect the work output of the employee’s position, and the request will be granted only at the agency’s discretion. Under certain circumstances, the agency may require an employee on intermittent leave or reduced schedule leave to transfer temporarily to an alternative job for which he or she is qualified and that better accommodates the leave. Married Couples The twelve-week maximum per eligible employee per year applies to married couples, rather than individual employees, if both members of the couple work for any State agency and the leave is for the purpose of caring for a new child by birth, adoption or foster care placement or to care for the employee’s parent. Leave requested because of an eligible employee’s own serious health condition is not subject to this limitation, nor is leave to care for the eligible employee’s sick spouse or child. Husbands and wives who are both employed by any State agency are limited to a combined twenty- six workweeks of leave during the twelve-month period to care for a covered service member. Notice Requirements Employees: Employees must provide sufficient information to the agency’s human resources department to determine if the leave qualifies for FMLA protection, and they must also provide the anticipated timing and duration of the leave. Sufficient information may include that the employee is unable to perform job functions, the family member is unable to perform daily activities, the need for hospitalization or continuing treatment by a health care provider, or circumstances supporting the need for military family leave. Employees also must inform the employer if the requested leave is for a reason for which FMLA leave was previously taken or certified. When leave is foreseeable, employees are required to give thirty days’ advance notice of their expected need for FMLA leave. If they fail to provide such notice, the agency may deny the leave until a thirty-day notice period has expired. When thirty days’ notice is not possible, employees are required to give as much notice as is practicable, and they generally must comply with the agency’s call-in procedures. Medical certification for most FMLA leave is required and must be submitted within no more than fifteen days of an employee’s initial request for leave. Medical certifications must be submitted on the appropriate form which may be obtained in the agency’s human resources department. It is the employee’s obligation to return this form as required. If the certification indicates that the employee does not qualify for FMLA leave, or if the employee fails to return the form in a timely manner, the employee will be subject to the agency’s normal attendance and discipline policies. Employees on leave must call the agency periodically (but at least every thirty days) to report on their status and

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intent to return to work. The Agency: The agency will inform employees if they are eligible under FMLA, if their requested leave will be designated as FMLA-protected, and the amount of leave counted against the employee’s leave entitlement. The notice will also specify any additional information required, as well as the eligible employee’s rights and responsibilities. If the agency determines that the leave is not FMLA protected, the agency will notify the employee and supply the reason for the ineligibility. Use of Accrued Leave Employees may choose or employers may require use of accrued paid leave while taking FMLA leave, if they otherwise satisfy all of the procedural requirements for the use of that accrued leave. Leave for a worker’s compensation injury that involves a serious health condition, as defined by this policy, will run concurrently with FMLA leave up through the permissible twelve weeks of FMLA leave. Benefits During Leave Health insurance benefits will be continued during FMLA leave, and the State of Mississippi will continue to cover the applicable premium amount for the employee. An employee may continue dependent coverage during leave, but he or she will be responsible for paying for the coverage on a timely basis. If the employee ceases paying the premium, the State may cancel the dependent coverage. However, the State may also continue the dependent coverage at its own expense and recoup payments from the employee upon the employee’s return to active employment. Personal and medical leave benefits will not accrue during unpaid FMLA leave. An employee who fails to return to work at the end of the FMLA leave and who cannot excuse the failure as due to reasons beyond his or her control, or because of the continuance, recurrence or onset of a serious health condition, is potentially liable for reimbursing the State for its payment of any or all of the health insurance premiums or other non-health premiums it paid during the employee’s FMLA leave, except for premiums paid by the State while the employee was concurrently on paid leave. The amounts paid can be deducted from any moneys owed by the State to the employee, including unpaid wages or accrued leave, to the extent permitted by law. Employees are considered to have “returned to work” if they come back to work for at least thirty days after the conclusion of the FMLA leave. Return from Leave Employees returning from FMLA leave will be restored to their prior positions and pay wherever practicable. Such employees will receive all benefits accrued prior to the beginning of leave, and they will be provided continuation of, or reinstatement to, health insurance benefits. If the employee’s prior position is not available, the employee will be restored to an equivalent position with equivalent pay and terms and conditions of employment.

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Employees must report on their intention to return to work as requested by the agency. So that their work may be properly scheduled, employees must provide reasonable notice (within two business days) of any foreseeable changed circumstances requiring either longer or shorter FMLA leave periods than originally requested. Unlawful Acts The FMLA makes it unlawful for any employer to interfere with, restrain, or deny the exercise of or the attempt to exercise any right provided under the FMLA; or discharge or discriminate against any person for opposing any practice made unlawful by the FMLA or for involvement in any proceeding under, or relating to, the FMLA. Please notify the agency’s executive director immediately if any of these actions occur. Employees may also file a complaint with the United States Department of Labor or bring a private lawsuit against the agency. Temporary Assignments Mississippi Code Annotated § 25-9-125 allows for a State Service employee, with the consent of the head of the department, agency or institution and the concurrence of the State Personnel Director, may be placed on a leave of absence for purposes of accepting an assignment in the Non-State Service for a period not to exceed one year.

Leave Without Pay Leave Without Pay (hereinafter referred to as “LWOP”) is employee leave taken in the absence of paid leave. LWOP must be authorized by the appointing authority. When a State government employee is on LWOP, it is the employee’s responsibility to pay the employee and employer portion, if any, of all insurance premiums the employee wishes to continue. In order to continue insurance coverage while out on LWOP, the employee should contact his or her human resources director. Use of Leave During Pregnancy Women affected by pregnancy, childbirth or related medical conditions will be treated the same for all employment-related purposes, including receipt of benefits under fringe benefit programs, as other persons not so affected but similar in their ability or inability to work. All types of leave will be granted to pregnant women on the same terms as leave is granted to other employees. When certified in advance by a medical doctor, pregnant women can use Major Medical Leave for regularly scheduled prenatal care by a medical doctor without the requirement that personal leave be used for the first eight hours of each absence for subsequent visits. Just as with Major Medical Leave, the first day (or the first eight hours) of leave taken for pregnancy must be personal or compensatory leave or leave without pay if the employee has no accrued personal or compensatory leave. Paid Parental Leave

“Eligible employee” means a person who has been employed by the State of Mississippi or any agency, department or institution of the state for a minimum of twelve (12) consecutive

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months in a position for which he or she is compensated on a full-time permanent basis and who is the primary caregiver of a child. “Paid parental leave” means the compensated absence from work provided to an eligible employee for the birth of the employee's biological child; or legal adoption of a child under eighteen (18) years of age. “Primary caregiver” means the parent who has the primary responsibility for the care of a child following the birth or adoption of a child. Only one parent can be the primary caregiver of the child at the same time. An eligible employee who is the primary caregiver of a child shall be entitled to receive six (6) weeks (two hundred forty (240) hours) of paid parental leave compensated at one hundred percent (100%) of the employee's regular salary, to be used to care for the child after the birth or adoption of the child. The employee’s regular salary consists of what the employee would have made but for using paid parental leave (e.g. TDL or special duty pay). The paid parental leave provided under this section must be taken within twelve (12) weeks of the birth or adoption of the child. Paid parental leave may be taken only once in a period of twelve (12) months. The paid parental leave provided under this section shall be in addition to other leave benefits available to state employees by state or federal law and shall not be counted against accrued personal leave or major medical leave under Sections 25–3–93 and 25–3–95. The paid parental leave shall run concurrently with any leave provided to an eligible employee under the federal Family and Medical Leave Act (FMLA) where applicable. Legal state and federal holidays shall not be counted against the paid parental leave. The paid parental leave shall not be accrued or carried over or used for retirement purposes and is not payable upon separation from state service. An eligible employee requesting the paid parental leave under this section shall give notice at least thirty (30) calendar days before the anticipated leave start date, where foreseeable, to the employee's supervisor and human resources manager and shall follow the employer's usual procedures for notification and documentation. If advance notice of thirty (30) days is not possible due to exigent circumstances, the employee shall notify the employee's supervisor and human resources manager at the earliest available opportunity and shall follow the employer's usual procedures in doing so. The use of paid parental leave may be restricted due to public safety concerns, at the discretion of the employee's agency head. The form for requesting paid parental leave shall be available on the State Personnel Board’s website. Every person wishing to take paid parental leave shall attest to the fact that he or she is qualified for paid parental leave and that for the period he or she is requesting paid parental leave that he or she is the child’s primary caregiver. The agency shall be responsible for the verification and appropriateness of all paid parental leave. If the agency determines that an employee has been awarded paid parental leave pursuant to malfeasance or falsification of the request or any information in it by the employee, the agency shall use all remedies available at law to recoup such benefit from the employee, and the employee shall be subject to disciplinary proceedings with a punishment up to and including termination of employment.

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Since paid parental leave under state law runs concurrent with FMLA leave, submission of the WH-380 FMLA form is sufficient documentation for leave due to pregnancy. For leave due to adoption, an employee should provide adequate documentation to show that he or she actually adopted a child. All documentation provided to support a request for parental leave will be kept confidential and separate from the employee’s personnel file. Military Leave Employees who are members of the military reserves or former members of the military are entitled to fifteen days of paid leave of absence when ordered to duty to participate in training or military exercises. Such employees are further entitled to unpaid leaves of absence from their respective duties in excess of the previously outlined fifteen days without loss of time, annual leave or efficiency rating until relieved from duty when ordered to duty as above. The Uniformed Services Employment and Re-Employment Act of 1994, a federal law, requires employers to allow up to five years of unpaid leave to a soldier who leaves employment to perform military duty, performs that duty satisfactorily, and requests his or her job back within the statutory time limits. The soldier must be re-employed without regard to whether the military duty was voluntary or involuntary. Educational Leave State agencies are authorized to grant paid educational leave on a part-time or full-time basis and/or reimburse employees for educational leave expenses in order for employees to develop job-related skills and to develop employees for higher-level professional and management positions; to prescribe eligibility for such educational leave and expense reimbursement; and for related purposes. Employees should note that not all State agencies offer educational leave. Employees may contact their agency Human Resources Office for more information on the availability of educational leave benefits and agency specific policies pertaining to educational leave.

Mississippi Living Organ Donor Leave All full-time or part-time employees who have been employed by any agency of State government for a period of six months or more and who donate an organ, bone marrow, blood or blood platelets are eligible for organ donor leave. Those individuals employed by local government entities or school districts are not eligible for leave under this policy. Employees may use organ donor leave only upon receipt of prior approval from the donor employee’s agency but are not required to use accumulated Major Medical Leave or personal leave before using organ donor leave. Certification by the employee’s attending physician for an employee participating as a bone marrow or organ donor will be required prior to using organ donor leave. Employees requesting placement on organ donor leave for the purpose of donating blood or blood platelets must provide verification from the blood service organization of the donation of blood and/or blood platelets to their supervisor upon returning to work to be approved for

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organ donor leave. An employee may use: • Up to thirty days (240 hours) of organ donor leave in any twelve-month period to serve as a bone marrow donor; • Up to thirty days (240 hours) of organ donor leave in any twelve-month period to serve as an organ donor; • Up to one hour to donate blood every fifty-six days; and • Up to two hours to donate blood platelets no more than twenty-four times in a twelve- month period in accordance with appropriate medical standards established by the ARC or other nationally recognized standards. 3.3 PANDEMIC POLICY Preventing the Spread of the Illness in the Workplace State employees are encouraged to cooperate in taking steps to reduce the transmission of both seasonal and novel strains of illness in the workplace. The best strategy for reducing the transmission of viruses is frequent hand washing with warm, soapy water, covering mouths with tissues whenever you sneeze, discarding tissues used when sneezing. Agencies are also encouraged to install alcohol-based hand sanitizers throughout the workplace and in common areas. Staying Home When Ill Many times, with the best of intentions, employees report to work even though they feel ill. State employees are provided with paid medical leave to compensate employees who are unable to work due to illness. During flu season, an influenza pandemic, and/or other pandemic, it is critical that employees do not report to work while they are ill and/or experiencing the following symptoms: fever, cough, sore throat, runny or stuffy nose, body aches, headache, chills and fatigue. A significant number of people who have been infected also have reported diarrhea and vomiting. Currently, the Centers for Disease Control and Prevention recommends that people with influenza-like illness remain at home until at least 24 hours after they are free of fever (100 degrees F or 37.8 degrees C) or signs of a fever without the use of fever-reducing medications. Employees who report to work ill will besent home in accordance with these health guidelines. Employees who are sent home under this policy will be required to utilize leave in accordance with Section 3.2 Leave. Reporting to Work When Not Ill A pandemic could result in a significant level of absenteeism. State employees may be unable to work if they become ill due to the virus while others may need to remain home to care for ill family members or simply to provide care for children during school closings. During this time, unless otherwise notified, attendance and leave policies will remain in place. Individuals who believe they may face particular challenges reporting to work during a severe pandemic should take steps to develop any necessary contingency plans.

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3.4 MEDICATION USE IN THE WORKPLACE Prescription and over-the-counter drugs are not prohibited in the workplace when taken in standard dosage and/or according to a prescription. However, certain medication, including the medical use of medical cannabis, even when taken in the standard dosage and/or according to a prescription may interfere with the safe, effective performance of assigned duties or compromise workplace safety. Section 5.4 states that all employees must apply themselves to their assigned duties during the full schedule for which compensation is being received. Section 5.5 requires that all employees must meet established performance standards. Employees using medication that interferes with required job performance or workplace safety may be required to use applicable leave in accordance with Section 3.2. Employers must consider that such employees may possibly be eligible for Family and Medical Leave Act leave and/or could qualify for protection under the Americans with Disabilities Act.

Mississippi law now allows the legal use of medical cannabis for medical purposes only, as set forth in Senate Bill 2095 from the 2022 Regular Session of the Mississippi Legislature. Regardless of the purpose of its use, marijuana is still classified as a controlled substance and illegal under federal law. Therefore, any agency receiving federal funding or otherwise subject to the Drug Free Workplace Act of 1988 must continue to have policies consistent with that Act in order to stay compliant and/or eligible for federal funds. Nothing in the provisions of Senate Bill 2095 from the 2022 Regular Session of the Mississippi Legislature shall be construed to do any of the following:

• Require any agency to permit, accommodate, or allow the medical use of medical cannabis, or to modify any job or working conditions of any employee who engages in the medical use of medical cannabis or who for any reason seeks to engage in the use of medical cannabis;

• Prohibit any agency from refusing to hire, discharging, disciplining, or otherwise taking an adverse employment action against an individual with respect to hiring, discharging, tenure, terms, conditions, or privileges of employment as a result, in whole or in part, of that individual’s medical use of medical cannabis, regardless of the individual’s impairment or lack of impairment resulting from the medical use of medical cannabis;

• Prohibit or limit the ability of any agency from establishing or enforcing a drug-testing policy so long as the policy complies with state law and Section 5.12 of the State Employee Handbook;

• Interfere with, impair or impede any federal restrictions or requirements on employment or contracting, including, but not limited to, regulations adopted by the United States Department of Transportation in Title 49, Code of Federal Regulation;

• Permit, authorize, or establish any individual’s right to commence or undertake any legal action against an agency for refusing to hire, discharging, disciplining or otherwise taking an adverse employment action against an individual with respect to hiring, discharging, tenure, terms, conditions, or privileges of employment due to the individual’s medical use of medical cannabis.

All agencies must ensure strict compliance with all federal and state laws regarding discrimination

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and protected health information.

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CHAPTER 4 – EMPLOYEE BENEFITS 4.1 DEFERRED COMPENSATION PLAN Deferred Compensation is a supplemental, voluntary savings plan administered by the Public Employees' Retirement System Board of Trustees offering tax advantages to participants. Employees who choose to participate in this plan may set aside part of their salary each year. Income tax liability is postponed on that part of their salary until the year in which the employee actually receives the deferred amount. Interest and/or earnings also are tax deferred until withdrawal. Interested employees may contact their Human Resources Office, payroll office, or PERS. 4.2 WORKERS’ COMPENSATION Workers’ compensation is administered by the Mississippi Workers’ Compensation Commission, and all State employees are covered under the provisions of the Mississippi Workers’ Compensation Law. The basic purpose of workers’ compensation is to provide fixed benefits to employees in the event an employee is injured in the course of employment. An employee who is injured on the job is entitled to certain benefits at no cost to the employee, including compensation for reasonable and necessary medical expenses, partial compensation for income lost because of the injury or illness, retraining for new skills, if necessary, and certain other related benefits. Workers’ compensation is unavailable when an injury was caused by an employee’s use of illegal drugs, abuse of prescription medication or intoxication due to the use of alcohol. An employee may be requested to submit to a drug and alcohol test if injured while at work. Workers’ compensation wage loss benefits are not payable for the first through the fifth days of disability unless the disability extends to fourteen days or more. The workers’ compensation benefit is payable at 2/3 the average weekly wage or, in some cases, to a weekly maximum set by law. Wage benefits are payable in addition to any accrued leave the employee may be entitled to use. It is the employee’s responsibility to ensure that payment of accrued Personal Leave and/or Major Medical Leave and the receipt of workers’ compensation benefits simultaneously do not result in the employee being paid a total amount that exceeds 100 percent of his wages earned in State employment at the time of injury. A State employee who is absent due to a work-related injury for which the employee is receiving temporary disability benefits is limited in his or her use of accrued Personal Leave and/or Major Medical Leave and the receipt of workers’ compensation benefits simultaneously if the combined receipt of both benefits results in the employee being paid a total amount that exceeds 100 percent of his wages earned in State employment at the time of injury. It is the employee’s responsibility to cooperate with the agency to determine if he or she has received excess wages and, if so, to notify the agency’s Human Resources Office of how such excess wages should be recovered from the employee. Recovery could be: • Through direct repayment (by endorsing the temporary disability benefit check over to the agency or remitting a personal check/money order); • Through a payroll deduction; • Through a payroll adjustment by which the Personal Leave and/or Major Medical Leave taken

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during the affected pay period is reclassified to Leave Without Pay; or • By a combination of direct repayment, payroll deduction and/or reclassification of paidleave to Leave Without Pay. Should the employee elect to be placed on Leave Without Pay rather than use accrued Personal Leave and/or Major Medical Leave, employment benefits (i.e., employer-paid life and/or health insurance, leave accrual, FICA and PERS contributions) may be adversely affected. Any excess wages that are not remitted to the agency will be deemed to be a debt owed to the State of Mississippi and are subject to collection as allowed by Mississippi law. Any injury or illness which is work related should be reported as soon as possible to the supervisor or agency’s workers’ compensation representative so that appropriate medical treatment can be arranged and a report of the injury can be sent to the Workers’ Compensation Commission. Timely reporting also ensures that any wage loss benefits, which are due, will be paid without undue delay. For assistance in the event of injury or for questions concerning workers’ compensation, contact the agency Human Resources Office or the agency’s workers’ compensation representative. 4.3 TRAVEL AND EXPENSES If a State employee is required to travel in the performance of an official duty, reasonable expenses will be paid by the State. Prior approval may be required for travel reimbursement. Employees should request information regarding their agency’s travel reimbursement policy from their human resources director. Rules and regulations governing official travel are established by the Department of Finance and Administration. 4.4 SOCIAL SECURITY Every employee of the State of Mississippi is required to participate in the federal Social Security program. For further information, you may call Social Security at 1-800-772-1213. 4.5 RETIREMENT Employees and officials of the State become members of the Public Employees' Retirement System as a condition of employment. PERS participation and coverage is provided to employees in positions requiring employees to work and receive compensation for not less than twenty hours per week OR not less than eighty hours per month. Participation is restricted to employees whose wages are subject to payroll taxes and are reported on IRS Form W-2. When a State employee is first employed, the agency will furnish the employee with a member information form to establish a membership account. The employee's social security number will serve as a membership number. A fiscal year membership statement will be sent to the employee each year containing information regarding contributions paid into PERS. Additional information is contained in the PERS Member Handbook which the agency will provide. You may also contact PERS by calling 1-800-444-7377 or (601) 359-3589 or visit the website at http://www.pers.ms.gov. Contributions An employee’s monthly contribution is equal to a percentage of the employee’s Gross Reportable Earnings, and this amount is refundable. The employer’s monthly contribution of

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a percentage of the employee’s Gross Reported Earnings is not refundable. Vesting Period If an employee was employed by the State of Mississippi at any point prior to July 1, 2007, the employee may receive monthly benefits once the employee becomes eligible for retirement after the employee contributes to the retirement system for at least four years. For those employees first employed by the State of Mississippi after July 1, 2007, the employee must contribute to the retirement system for eight years prior to being able to receive monthly benefits upon eligibility for retirement. Retirement Eligibility Any employee hired before June 30, 2011, with twenty-five years of participation in PERS, is eligible to retire and draw monthly benefits at any age. Any employee hired on July 1, 2011 or later, with thirty years of participation in PERS is eligible for retirement and benefits at any age. Alternatively, employees with less than twenty-five years of participation in the retirement system who became members of the retirement system before July 1, 2007 and have at least four years of membership in the system are eligible to retire at age sixty and receive a retirement allowance. Employees who became members of the retirement system after July 1, 2007 and have at least eight years of membership in the system are eligible to retire at age sixty and receive a retirement allowance. 4.6 INSURANCE As a benefit to its employees, the State of Mississippi provides a life and health insurance plan to assist its employees with the cost of such insurance. The State and School Employees’ Life and Health Insurance Plan (hereinafter referred to as “the Plan”) provides State employees and their dependents with many options for health and life insurance coverage. All new employees are provided with a Summary Plan Description (hereinafter referred to as “SPD”) that describes in more detail the Plan’s benefits, eligibility and how to use the Plan. New SPDs are sent to enrolled employees every year when changes occur in the Plan. Also, all enrolled employees receive the Health Plan Update, a newsletter that is distributed throughout the year to give more information about Plan benefits. All new employees must enroll in the Plan or waive coverage. Enrollment in the Plan is effective on an employee’s first day of employment; however, an employee must complete his or her enrollment paperwork within thirty-one days of his or her hire date. Additionally, there is an annual Open Enrollment period for coverage effective the following plan year. Depending on the employee’s specific employment status, the State of Mississippi pays some portion of the health insurance premium and life insurance premium for the employee. The Plan also allows employees to cover their dependents under the Plan by paying the premiums for their dependents through payroll deductions. Eligible dependents include a lawful spouse, as well as the enrollee’s child up to age 26. Dependent children who meet eligibility requirements at the time of enrollment may remain covered regardless of age if permanently physically disabled or mentally disabled, are incapable of self-sustaining employment, and depend upon the enrollee for 50% or more of their support. The disabling condition must have occurred prior to the dependent’s 26th birthday.

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For additional information, you may contact your Human Resources Office, the Department of Finance and Administration’s (“DFA”) Office of Insurance, or visit the DFA website at http://www.dfa.ms.gov. 4.7 CAFETERIA PLAN An employee of the State of Mississippi may choose to participate in a Section 125 plan, also known as a “Cafeteria Plan.” A Cafeteria Plan allows employees’ payments for health, life, dental and vision care, prescription drugs, disability contributions, and deposits to flexible spending accounts to be deducted pre-tax from an employee’s earnings. Please contact your agency Human Resources Office or payroll office for information on how to participate in your agency’s Cafeteria Plan. 4.8 STATE CREDIT UNIONS All State employees are eligible to join the Public Employees’ Credit Union as well as applicable agency specific credit unions. Credit Unions are non-profit financial organizations serving the savings and borrowing needs of members. Services such as financial counseling, money orders and free notarizing may also be provided. Credit Unions return all earnings exceeding operating expenses to its members in the form of dividends, interest, reserves, and services. The Public Employees’ Credit Union may be contacted at (601) 948-8191. 4.9 UNEMPLOYMENT COMPENSATION If a State employee becomes separated from a job for reasons beyond the employee’s control, that employee may be eligible for unemployment compensation. Inquiries may be directed to the Mississippi Department of Employment Security or visit the web site at http://www.mdes.ms.gov.

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CHAPTER 5 – STANDARDS OF EMPLOYEE CONDUCT The maintenance of high standards of honesty, integrity, impartiality and conduct by employees of the State of Mississippi is essential to earning and retaining the confidence of the citizens of Mississippi. The avoidance of misconduct and conflicts of interests on the part of employees through informed judgment is indispensable to quality of performance as well as to the maintenance of these high standards. The following guidelines should be followed by State employees: 5.1 EMPLOYEE WORK SCHEDULES

State law requires that all State offices be available to the public for services from 8:00 a.m. until 5:00 p.m., Monday through Friday.

MSPB defines a normal work schedule as eight hours per day, forty hours per week, 173.929 hours per month and 2,087 hours per year.

Each part-time employee will be provided a schedule of working hours.

To provide for maximum flexibility in scheduling employees, the appointing authority may develop modified work schedules providing for flextime, compressed, or telework. “Flextime” is a schedule which offers agency management a choice to vary employee arrival and departure times from work. A “compressed work schedule” allows agency management to schedule the general forty-hour workweek requirement in less than the usual five workdays per week. Telework means a work flexibility arrangement under which an employee performs duties, responsibilities, or other authorized activities from an approved worksite other than the location from which the employee would otherwise work.

5.2 REMOTE WORK

If any appointing authority chooses to allow its employees to work remotely, those employees must follow that agency’s remote work policy. Remote work is a privilege and does not create an expectation of any right to working remotely. An employee’s remote work status may be revised at the sole discretion of the agency. The alteration of an employee’s remote work status is not grieveable nor appealable to the Mississippi Employee Appeals Board.

Remote work does not change the job duties, obligations, responsibilities, or terms and conditionsof agency employment including requirements for taking leave. Employees who work remotely must comply with all agency rules, policies, practices, and instructions. Department directors or their designee shall continually assess whether an employee’s remote work assignment is effective and accomplishing the responsibilities and mission of the department.

5.3 ATTENDANCE

Regular attendance is a basic condition of employment with the State of Mississippi and shall be considered among the essential elements for all employees. All employees must report to and leave work at the time designated by their employer. Anticipated absence from work is to be arranged with the employee’s supervisor in advance, and unexpected absences are to be reported promptly to the

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employee’s supervisor prior to the beginning of the employee’s work period.

5.4 DILIGENCE DURING WORK PERIOD

All employees must apply themselves to their assigned duties during the full schedule for which compensation is being received, except for reasonable time provided to take care of personal needs.

5.5 WORK PERFORMANCE

All employees must meet established performance standards. Any conditions or circumstances in the work environment, which prevent an employee from performing effectively, are to be reported to the supervisor.

Many departments and agencies maintain more specific rules for employees. The employee’s supervisor or the agency Human Resources Office may provide additional information.

5.6 RESIGNATION

An employee who desires to terminate service with the State should submit a written resignation to the appointing authority at least ten working days before the final working day.

5.7 WORKPLACE HARASSMENT

Each appointing authority must take appropriate steps to provide a professional workplace free from any type of harassment. Federal law prohibits harassing behavior based on race, color religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information. It is also prohibited for individuals to be harassed in retaliation for certain “protected activity” such as participating in a discrimination complaint process or opposing employment practices that are reasonably believed to be in violation of anti-discrimination laws. State law also requires a personnel system that assures employees are free from coercion for partisan or political purposes and shall receive fair treatment in all aspects of personnel administration without regard to political affiliation.

Offensive conduct can include, but is not limited to, offensive jokes, slurs, epithets, physical assaults or threats, intimidation, ridicule, insults, offensive objects or pictures, and interference with work performance. A harasser can be a supervisor, agent of the employer, co-worker, or a non-employee. A victim does not have to be the person harassed, but can include anyone affected by the offensive conduct.

It is essential that each appointing authority take appropriate steps to prevent and promptly correct harassment, especially harassing behavior based on or motivated by an individual’s membership in a protected group. Employees should immediately report harassing behavior they experience, witness or become aware of to an appropriate agency administrator (immediate supervisor, upper management, human resources or an employee designated by the appointing authority to receive such complaints). Agencies should provide alternative opportunities for employees to report harassment to an appropriate agency administrator, in case the source of the harassment is in the employee’s management chain.

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An appointing authority’s reasonable care to prevent workplace harassment should include, but not be limited to, establishing and implementing an anti-harassment policy consistent with these principles. The policy should be well publicized and clearly communicated to all employees. Each level of management and human resources should communicate and demonstrate that harassment will not be tolerated and employee concerns will be promptly addressed, without any fear of retaliation.

After receiving notice of a possible violation of policy, the agency must take prompt action reasonably calculated to end the alleged harassment and conduct a thorough investigation. After completing the investigation, the agency should take effective and appropriate remedial measures, including necessary corrective or formal disciplinary action against the harasser.

If an agency appointing authority is the source of the alleged harassment, the victim may report the harassing behavior directly to the Executive Director of the MSPB at statepersonneldirector@mspb.ms.gov. The Executive Director shall promptly take reasonable steps to ensure the complaint is appropriately and effectively addressed by the responsible parties. Each appointing authority should ensure agency anti-harassment policies are consistent with these guidelines and principles and a sample agency anti-harassment policy can be found at the MSPB website.

5.8 CONFLICT OF INTEREST State employees should be especially careful to avoid using, or appearing to use, an official position for personal gain, giving unjustified preferences, or losing sight of the need for efficient and impartial decision making in the State's method of operation. No act should be committed which could result in questioning the integrity of State government. Employees are not to engage in any activity in either a private or official capacity where a conflict of interest may exist. A State employee's first loyalty should be to the public's interest. Associations, dealings or interests that could affect an employee's objectivity in performing the employee's job or in making the decisions required of the employee's position should be avoided.However, employees are encouraged to participate in professional and civic organizations if such participation does not adversely affect the employee's role as a public employee. 5.9 POLITICAL ACTIVITY Personnel administration must be conducted in an atmosphere free from political influence or coercion. Political Contributions and Services No State Service employee may be obliged, by reason of his or her employment, to contribute to a political fund or to render political service, and he or she may not be removed or otherwise prejudiced for refusal to do so. Use of Official Authority or Influence to Coerce Political Action No State Service employee may use his or her official authority or influence to coerce the political action of a person or body.

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Fair Treatment of Applicants and Employees Each appointing authority will assure fair treatment of applicants and employees in all aspects of personnel administration without regard to political affiliation.

Freedom From Political Coercion Each appointing authority will assure that employees are free from coercion for partisan or political purposes. State law requires a personnel system that assures employees are free from coercion for partisan or political purposes and shall receive fair treatment in all aspects of personnel administration without regard to political affiliation.

Informing Employees of Political Activities Laws Each appointing authority will inform all employees of which political activities are permitted or prohibited by law.

Violation of Provisions Any employee in the State Service who violates any of the provisions of this section may be subject to appropriate disciplinary action.

Prohibited Political Activity Mississippi law prohibits any agency or appointing authority from attempting to direct or coerce any state employee to vote or not to vote and from either discharging or threatening to discharge, changing the salary of, or promoting or demoting any State employee because of the employee’s vote or failure to vote for any particular candidate or group of candidates. State law further prohibits any agency or employee of any agency with the authority to employ or discharge other employees from giving out or circulating any statement or report that is calculated to intimidate, coerce, or otherwise influence any employee as to the employee’s vote. If any such statement or report is circulated, the agency must publicly repudiate it or will be deemed to have circulated the statement. Agencies are also prohibited from requesting, directing or allowing any employee to canvas for or otherwise render any services for or against any candidate or group of candidates during working hours or while an employee is on vacation or other leave of absence at the expense of the agency. No State employee, at the expense, in whole or part, of his or her employer, may take any part whatsoever in any election campaign except the time necessary to cast his or her vote. No one who has any control over, directly or indirectly, the expenditure of any public funds in the State of Mississippi may suggest or intimate either publicly or privately that any such expenditure will in any way depend on or be influenced by the vote of any person or groups of persons. No person may, in order to promote his or her own candidacy or that of any other person for public office in Mississippi, directly or indirectly promise to appoint or secure or assist in securing the appointment, nomination or election of another person to any public position or

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employment or the employment of any person under any public contract or the expenditure of any public funds in the personal behalf of any particular person or group. However, a candidate for election may publicly announce his position in relation to an election in which he may be called on to take part if elected. This prohibition is further inapplicable to a sheriff, chancery clerk, circuit clerk or any other person of the State or county when it comes to his or her office force. The Hatch Act The federal "Hatch Act," 5 U.S.C. §§ 1501 et seq., covers individuals employed by State or local agencies receiving federal loans or grants whose principal employment is in connection with an activity which is financed in whole or in part by loans or grants made by the United States or a federal agency. A State or local officer or employee may not (1) use his official authority or influence for the purpose of interfering with or affecting the result of an election or a nomination for office; (2) directly or indirectly coerce, attempt to coerce, command, or advise a State or local officer or employee to pay, lend, or contribute anything of value to a party, committee, organization, agency, or person for political purposes or 3) if the salary of the employee is paid completely, directly, or indirectly, by loans or grants made by the United States or a Federal agency, be a candidate for a partisan elective office. Under federal guidelines, all State or local employees regardless of funding may be a candidate in a nonpartisan election. The Hatch Act regulations which are applicable to State and local employees may be found in the Code of Federal Regulations at 5 C.F.R. § 151.101 et seq. In cases where the Hatch Act is applicable, the State of Mississippi may additionally place more strict prohibitions on the political activity of its employees. Additional information about the Hatch Act can be found at http://www.osa.gov. Agency Specific Prohibitions Several State agencies have specific laws which relate to the political activity of its employees. Those agencies are responsible for informing all employees of which political activities are permitted or prohibited pursuant to the law applicable to that agency’s employees. 5.10 WORKPLACE VIOLENCE Each appointing authority must take appropriate steps to provide a safe workplace environment for employees that is free from violence. Employers must immediately respond to acts of violence, intentional damage to property, and acts of aggression or intimidation in the workplace. Any threat of workplace violence to employees or the general public, direct or implied, is strictly prohibited and should be immediately reported to agency management.

5.11 DRUG-FREE WORK PLACE ACT OF 1988 The Drug-Free Workplace Act of 1988 requires grantees of federal agencies to certify that they will provide a drug-free workplace. State agencies which are federal grantees must comply fully with the provisions of this law.

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5.12 DRUG AND ALCOHOL TESTING State law governing drug and alcohol testing of employees and job applicants provides procedures and guidelines for appointing authorities who wish to formulate a drug and alcohol testing policy. Except as provided by federal law, agencies are not required to administer drug or alcohol tests. If an agency chooses to implement a drug and alcohol testing policy, it must comply with State law. However, Mississippi’s statutory law regarding drug and alcohol testing does not apply to agencies subject to any federal law or regulations which govern the administering of drug and alcohol tests. Agencies are also required to be cognizant of the proscriptions of the Americans with Disabilities Act regarding pre-employment medical tests. Refusal to take a drug or alcohol test when directed to do so by an employer, in accordance with applicable state and federal law, is considered good cause for possible disciplinary action pursuant to Chapter 7.

5.13 EMPLOYEE USE OF STATE PROPERTY State employees have no ownership rights in or control of State property, which is defined to include all office space, space adjacent to the workplace controlled by the State or State agency, furniture, fixtures, equipment, and inventory including without limitation, all computer software, databases, servers, computer hardware, discs, and information of any kind contained in or recorded on physical or electronic data sources of any kind. Employees are prohibited from using State property for personal use. Wireless Communication Devices and Electronic Communications State employees may not directly or indirectly use or allow the use of agency property of any kind, including property leased to an agency, for other than officially approved activities. In addition, employees shall protect and conserve agency property, including wireless communications equipment. Wireless communications equipment includes cellular phones, personal digital assistant devices, and standard and two-way pagers, as well as any similar devices that perform some or all of these functions. Employees are hereby notified that the agency will enforce this policy through a variety of methods and may monitor use of wireless communications equipment to assure compliance. Wireless communication devices shall be used for legitimate State business only. Use of an agency-provided cellular phone for personal calls may result in appropriate disciplinary action and/or the loss of the use of the phone. The agency may not reimburse employees for any charges on personal wireless communication devices. Employees should be aware that cellular phone transmissions are not secure transmissions. Confidential information regarding official business should be transmitted from a secure environment. Storage of Information All information, in any form, including written materials that pertain to work at a State agency, should be stored on the computer or in an employee’s desk in accordance with dictated procedures so that other employees or an employee’s supervisor has access to it. Agency Information Technology employees and agency supervisors may have passwords or other information necessary to access an employee’s voice mail and email, and duplicate keys, if any, to all desks and file cabinets. Employees are prohibited from locking desks or cabinets

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unless permitted by management or altering equipment or programs to prohibit access. Expectation of Privacy State employees have no expectation of privacy in their work premises. All State property, including an employee’s workstation, all physical storage areas and all electronic storage areas, including all software and data on all computers, voicemail and email, are subject to access and inspection at any time by management, other employees or third parties designated by management. Because agency management may access or inspect an employee’s work area at any time to find materials or obtain information, employees should not store any personal documents or materials on or in State property. Right to Search The State reserves the right to conduct reasonable searches on, in or of State property and on State premises including, at any time, locked and unlocked areas, for any reason related to the operation of State business. Consent by the employee is implied and lack of cooperation or refusal to permit a search can result in immediate discipline, including termination. The State or an agency may conduct inspections or searches for illegal drugs, weapons, explosives, contraband or other prohibited materials on, around or in State property, at any time, without notice, whenever there is a reasonable basis to believe that an employee may be in the possession of such materials in violation of policy. Inspections or searches for prohibited materials may be conducted by any member of management, an independent person appointed by management, law enforcement representatives, or by the State or an agency with its own personnel. The right to conduct routine searches of agency premises is in addition to the right of an agency to access all State property without requiring consent of the employee. Personal Property Employment or continued employment with the State constitutes acknowledgement by employees that routine searches of State property might result in the discovery of an employee’s personal possessions or personal information. Because the State or third parties will have access to all areas of State property, employees are encouraged not to store or bring to the workplace any personal property or to transmit or obtain the transmission of personal information or messages using State-owned equipment. 5.14 PROHIBITED RELATIONSHIPS The State of Mississippi requires that all employees behave at all times in a professional manner that avoids any unlawful discrimination, including harassment, conflict of interest, or risk of a claim or loss to the State of Mississippi. These requirements include maintenance of a work environment in which the State prohibits romantic, dating or sexual relationships between: • employees working in a common sphere of influence, meaning a relationship between a supervisor and subordinate, or any relationship in which one employee supervises or manages, directly or indirectly, another employee or makes decisions concerning another employee’s terms, conditions or privileges of employment, and/or

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• an employee and a contractor, subcontractor, potential employees or vendor when the employee has the capacity to influence, directly or indirectly, the business relationship or potential employment. Such relationships can cause conflict and adversely affect morale, operations and productivity because of the perception of impropriety or unfairness and the possibility of accusations that one’s position is being used to obtain or grant sexual favors, and of inappropriate influence on others, favoritism, bias or unfair treatment. Additional problems can occur in the workplace should the relationships cease.

5.15 OUTSIDE EMPLOYMENT All employees must be available for and devote their full attention to their assigned duties and responsibilities during scheduled working hours. Further, employees having emergency response responsibilities must be reasonably available during non-scheduled hours. Each employee must ensure that his or her off-the-job activities do not adversely affect job performance with and are not contrary to the interests of the State. For this reason, the following guidelines and rules are established for all employees: • Employment with the State will be the employee’s primary job responsibility and obligation; any other employment will be deemed secondary. • An employee should not seek or accept outside or secondary employment that may negatively impact or affect the employee’s punctual and consistent attendance, ability to satisfactorily and efficiently perform his or her duties or that creates a conflict of interest. • The demands or requirements of outside or secondary employment may not be considered as excusable reasons for absences, tardiness, poor performance or other areas of concern from a personnel perspective. • Prior to seeking or accepting outside employment, full-time regular employees must discuss a secondary job with management to determine whether or not the job is considered a “conflict of interest” as previously defined herein. Outside employment refers to a job or task performed for which any form of compensation is received. This includes the receipt of a benefit as opposed to monetary compensation; for example, performing a service and receiving goods for the task performed instead of receiving a salary or wage. Outside employment does not refer to being a member of a reserve component of the military. Employees engaging in any outside employment must submit a request for approval to the individual or individuals designated by the agency prior to employment. This request must be completed if an outside activity exists at the time the employee is hired by the State; when an outside employment activity previously approved is being discontinued or the nature or scope of the activity is being changed; or, when the employee plans to enter into any outside employment. If the outside employment constitutes a conflict of interest, detracts from the employee’s responsibilities, or has an appearance of a conflict of interest, the request will be denied. 5.16 SOCIAL MEDIA Social media is defined as the various activities that integrate technology, social interaction, and content creation. Through social media, individuals or groups can create, organize, edit or comment

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on, combine, and share content. Social media uses many technologies and forms, including social- networking, blogs, wikis, photo–sharing, video–sharing, podcast, social bookmarking, mash-ups, widgets, virtual worlds, microblogs, Really Simple Syndication (RSS) and more. Any personal social media activity by State employees may not be represented as official state or agency social media activity. State email addresses shall not be used to register for personal social media activity. State employees should not pressure or coerce other employees to connect with them via social media. It is considered to be protected expression for state employees to engage in social media activity concerning issues of public concern, while on personal time and in a personal capacity. State employees must make clear that any views concerning issues of public concern are those of the individual and do not reflect the views of the state or any entity of the state. State employees maintain their First Amendment rights, but any speech or expression, even in a personal capacity, causing disruption or that undermines the effectiveness and/or operation of the workplace is prohibited. Any of the following social media activity, comments, expression or posts by a state employee in his or her professional or personal capacity are also prohibited: A. Content that is discriminatory, harassing or physically threatening, as defined in sections 5.7 and 5.10 of this Handbook, toward other state employees; B. Disclosure of agency information that is confidential or proprietary; C. Content that demonstrates unlawful conduct; D. Content that is in violation of MSPB conflict of interest regulations, as defined in sections 5.8, 5.14 and 5.15 of this Handbook. E. Content that is in violation of the federal Hatch Act, 5 U.S.C Section 1501 et seq., and 5 C.F.R. Section 151.101 et seq. Additional information concerning the Hatch Act may be found in Section 5.9 of this Handbook. State agency regulation of employees engaging in social media, while on personal time and in a personal capacity, must be both consistent and measured. Violations of this policy are subject to disciplinary action as set forth in Chapter 7 of this Handbook. CHAPTER 6 – PERFORMANCE REVIEW SYSTEM The Mississippi Legislature requires the Mississippi State Personnel Board and the State Personnel Director to provide a system of rules and regulations to measure employee performance.

6.1 SCOPE A performance review system serves several distinct purposes and functions, including: aligns, corrects, and leverages the performance of each employee; allows managers to make effective decisions regarding workforce performance issues; and promotes quality services. The performance of each employee whose position is under the salary setting authority of MSPB must be reviewed at least annually.

Performance reviews must be administered in a fair manner and in compliance with state and federal laws. The Performance Review System (hereinafter referred to as “PRS”) assesses an employee’s

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performance at either the Outstanding (3.0) Performance Level, the Successful (2.0 – 2.9) Performance Level, or the Improvement Needed (1.0 – 1.9) Performance Level.

6.2 APPLICABILITY Every employee whose position is under the salary setting authority of MSPB must have their job performance assessed at least once annually. Assessments are based on the employee’s performance in three areas:

1. Use of required systems/programs/equipment/instruments
2. Job knowledge/technical ability, and
3. Problem solving/decision making. For employees who oversee a program or who have functional supervision of at least one employee, performance in a fourth area is included: project management/delegation.

6.3 WORKFORCE TALENT DEVELOPMENT AND SUCCESSION PLANNING The Performance Development System (PDS) used from January 15, 2013 – December 31, 2019 included an Individual Development Plan (IDP) to emphasize the importance of development on performance. Effective January 1, 2020, the IDP is transitioning to Workforce Talent Development and Succession Planning.

Employees impact agency services. Nowhere is this more evident than in the public sector, where services that are critical to an agency’s mission are delivered through our employees. When individual development directly contributes to meeting agency needs, the result is an enhanced level of performance for the agency.

The Workforce Talent Development and Succession Planning Guide on the MSPB website provides details about development and customizable templates agencies can use to coordinate individual development with specific agency needs. The revised IDP includes a section that identifies how the agency benefits from the employee’s development plan.

6.4 PROCESS The PRS process outlined below provides a brief overview of the annual Review Period. Details of the PRS process are provided with the PRS templates on the MSPB website.

Actions taken by the direct supervisor and the employee at the beginning of the Review Period Section 6.4.(A) are performed within fourteen days of the initial employment date, then at twelve-month intervals for each subsequent Review Period. Actions taken during Review Sessions Section 6.4.(B) occur three months and nine months after the initial employment date, then at the six-month midpoint for each subsequent Review Period. Actions taken at the end of the Review Period Section 6.4.(C) occur six months and twelve months after the initial employment date, then at twelve-month intervals for each subsequent Review Period.

A. The Beginning of the Review Period

During the first fourteen days of the Review Period, the direct supervisor and employee

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review, and if necessary, update the job duties of the position and identify what constitutes a Successful (2.0 – 2.9) Performance level.

B. Review Sessions

Review sessions may be held at any time. However, the direct supervisor must conduct a mid- point review session with the employee during the Review Period. As referenced in 6.4(C), failure to perform job duties before the conclusion of a Review Period may warrant immediate corrective or disciplinary action at any time. The purposes of the review sessions during the Review Period are:

1. To provide feedback to the employee concerning the overall assessment of performance during the Review Period.
2. To review and update duties in light of changing requirements of the employee’s position.
3. To identify areas of performance requiring improvement and to identify methods/training needed to facilitate that improvement.

The direct supervisor maintains relevant documentation supporting the performance rating of each employee. Examples of such documentation include, but are not limited to:

1. Narrative statements about the employee’s performance;
2. Examples of work;
3. Previous Performance Reviews or Performance Development Assessments;
4. Informal Corrective Action (Section 7.5)
5. Formal Disciplinary Action (Section 7.5)

Formal disciplinary action is also maintained in the employee’s Human Resources personnel file. Supervisors should coordinate with Human Resources whether documentation of Informal Corrective Action should also be included in the employee’s personnel file (Section 7.5). In the event that an agency does not have a Human Resources division, supervisors should coordinate with the appointing authority’s designee who has Human Resources responsibilities.

C. The End of the Review Period

Mississippi Code Annotated § 25-9-127 provides that a state service employee may be dismissed or otherwise adversely affected as to compensation or employment status for inefficiency or other good cause. Failure to receive a Successful rating at the conclusion of a Review Period is considered to be inefficiency or other good cause (Section 7.2) warranting possible corrective or disciplinary action. In addition, failure to perform job duties before the conclusion of a Review Period may warrant immediate corrective or disciplinary action at any time (Section 7.2).

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Corrective or disciplinary action for an employee’s failure to receive a Successful rating and/or non-performance of job duties during a Review Period shall comply with Chapter 7 (Employee Corrective and Disciplinary Action). An employee that is dismissed or otherwise adversely affected as to compensation or employment status (formal disciplinary action defined in Section 7.1 as Written Reprimand, Suspension Without Pay, Involuntary Demotion or Dismissal) may review Chapters 8 and 9 concerning any applicable grievance or appeal procedures. Corrective action such as a documented warning/counseling session or other appropriate informal means intended to correct unsatisfactory job performance (Section 7.5) is not grievable. Although such action is not grievable, Human Resources should appropriately respond to questions or concerns raised by an employee concerning the Performance Review System. In the event that an agency does not have a Human Resources division, the appointing authority’s designee who has Human Resources responsibilities should appropriately respond to such questions or concerns.

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CHAPTER 7 – EMPLOYEE CORRECTIVE AND DISCIPLINARY ACTION Mississippi Code Annotated § 25-9-127 provides that no employee of any department, agency or institution under the State Personnel System, who is subject to the policies and procedures prescribed by MSPB, may be dismissed or otherwise adversely affected as to compensation or employment status except for inefficiency or other good cause. Before such disciplinary action, a State Service employee must be provided written notice and hearing within the department, agency or institution as provided in the policies and procedures promulgated by MSPB complying with due process of law.

7.1 DISMISSED OR OTHERWISE ADVERSELY AFFECTED AS TO COMPENSATION OR EMPLOYMENT STATUS Dismissed means an involuntary termination of employment. An employee is adversely affected as to compensation or employment status when the employee is dismissed, involuntarily demoted with a reduction in pay, or suspended without pay. Each of these personnel actions either reduces or terminate an employee’s compensation and shall be based on inefficiency or other good cause. State Service employees are first entitled to due process of law before receiving such disciplinary action.

Mississippi Code Annotated § 25-9-127 provides that this provision does not apply to the following persons: 1) employees separated from employment due to a curtailment of funds or a reduction in force approved by the MSPB; 2) employees dismissed or otherwise adversely affected as to compensation or employment status during the probationary period of state service of twelve (12) months; 3) or employees dismissed or otherwise adversely affected as to compensation or employment status, as an executive officer or other Non-State Service employees of any state agency who serves at the will and pleasure of the Governor, board, commission or other appointing authority.

Written Reprimand and Informal Corrective Action

Employees may also be issued a Written Reprimand before disciplinary action reducing or terminating an employee’s compensation is necessary. A Written Reprimand is formal notice to an employee of inefficiency or other good cause warranting disciplinary action and is intended to correct unacceptable behavior or unsatisfactory job performance. When warranted, an employer may attempt to correct unacceptable behavior or unsatisfactory job performance with a documented warning/counseling session or other appropriate informal means, before taking formal disciplinary action (Written Reprimand, Suspension Without Pay, Involuntary Demotion or Dismissal).

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7.2 INEFFICIENCY OR OTHER GOOD CAUSE The following list of examples illustrating inefficiency or other good cause is not all-inclusive. It is not intended to limit an appointing authority’s discretion in determining that inefficiency or other good cause exists, warranting disciplinary action in compliance with MSPB procedures.

• Failure to report to work at the required time. • Unauthorized time away from the assigned work area. • Leaving the work site without permission during assigned work hours. • Failure to report to work without giving the required notice to the supervisor. • Acts in violation of Section 5.7 of the MSPB Handbook (Workplace Harassment). • Acts in violation of Section 5.8 of the MSPB Handbook (Conflicts of Interest). • Acts in violation of Section 5.9 of the MSPB Handbook (Political Activity). • Acts in violation of Section 5.10 of the MSPB Handbook (Workplace Violence). • Acts in violation of Section 5.14 of the MSPB Handbook (Prohibited Relationships). • Acts in violation of Section 5.16 of the MSPB Handbook (Social Media). • Conviction of a moving traffic violation while operating a state vehicle or operating a state vehicle in an unsafe manner. • Operation of a state vehicle without a valid driver’s license. • Arrest or conviction of driving under the influence while in a state vehicle or while in a personal vehicle and on state business. • Failure or refusal to follow supervisor’s instructions or perform assigned work. • Failure or refusal to comply with agency policies or procedures. • Resisting management directives through insolent behavior, undermining a supervisor’s ability to manage. • Failure to receive a Successful MSPB Performance Review rating at the conclusion of a Review Period. • Failure to perform job duties requiring disciplinary/corrective action before the conclusion of a Review Period. • Use or possession of alcohol during assigned work hours or consuming alcohol preceding reporting to work. • The unlawful manufacture, distribution, possession, or use of controlled substances during assigned work hours or being under the influence of or impaired by the unlawful use of controlled substances during assigned work hours. • Refusal to take a drug or alcohol test when directed to do so by an employer, in accordance with applicable state and federal law. • Falsification of records (including electronic communication), such as, but not limited to,

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travel reimbursement vouchers, time records, leave records, employment applications, invoices, reports, or other documents. • Intentionally or negligently causing damage to state property or the property of another employee or invitee of the agency. • Violation of agency safety rules. • Unauthorized possession or use of firearms, dangerous weapons or explosives. • Careless, negligent, or unauthorized use or intentional misuse of state property or records. • Breach of agency confidentiality requirements. • Refusing to cooperate or intentionally giving false statements in an administrative investigation concerning, but not limited to, work performance, misconduct or violations of MSPB/agency policies and procedures. • The failure of any appointing authority or supervisor of an employee to properly deduct an employee’s donation of leave to another employee for a catastrophic injury or illness from the donor employee’s earned personal leave or major medical leave. • Theft on the job. • Arrest or conviction for a felony criminal charge. • Arrest or conviction for a misdemeanor criminal charge that is related to an employee’s job duties or conflicts with the mission of the agency. • Other violations of MSPB or agency policies, procedures, rules or regulations not specifically referenced herein.

7.3 DUE PROCESS A State Service employee may be dismissed or otherwise adversely affected as to compensation or employment status only after being given written notice and hearing, complying with due process of law. A Non-State Service employee may be dismissed or otherwise adversely affected as to compensation or employment status, with or without cause and is not entitled to due process.

Written notice means the employee is provided with a statement summarizing the reasons(s) the employee is facing possible disciplinary action. The notice should state with sufficient specificity the inefficiency and/or other good cause reason(s), so the employee may adequately respond. Thenotice must state an appointed time and location for the employee to respond to the allegation(s) in a hearing. The reason(s) listed in the notice will be the only reason(s) addressed throughout the appeals process. The employee may choose to submit a written waiver of the hearing or respond in writing to the allegation(s) in the notice.

The hearing is an informal conference between the employee and the appointing authority or designated representative. The employee must be provided the notice at least five (5) working days prior to the hearing. The purpose of the hearing is to give the employee a meaningful opportunity to respond to the allegation(s) in the notice and for the employer to determine if inefficiency or other good cause exists, warranting disciplinary action.

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Administrative Leave/Suspension with Pay Pending the Employee’s Due Process Hearing An employee may be placed on administrative leave/suspension with pay before the due process hearing. The hearing must take place within twenty-five (25) working days from the first day of the administrative leave/suspension with pay and the written notice must be provided to the employee at least five (5) working days prior to the hearing. Factors an employer shall consider in determining if administrative leave/suspension with pay pending the hearing is appropriate include, but are not limited to: • The seriousness of the allegation(s) against the employee, taking into account the mission of the agency and the employee’s particular job duties; • The reasonable possibility of serious disciplinary action being issued as a result of the pending hearing; • Whether the employee’s continued presence at work pending the hearing would be contrary to the best interests of the agency. In circumstances where the employee has been charged with a felony, the employee may be suspended without pay before the hearing. This period of suspension without pay prior to the hearing shall not be considered as a disciplinary Suspension Without Pay pursuant to Section 7.5.

7.4 DISCIPLINARY/CORRECTIVE ACTION DECISION In the hearing, the appointing authority or designated representative should only consider the reasons stated in the written notice, any related supporting documentation, and the employee’s response. A determination and recommendation from the designated representative to the appointing authority should include both a summary of the employee’s response and the basis for the decision and recommendation. The appointing authority should carefully consider the designated representative’s determination and recommendation but may choose to accept or disregard the recommended personnel action.

If it is determined that inefficiency or other good cause exists, factors to consider in determining the appropriate personnel action include, but are not limited to:

• The seriousness of the misconduct/unsatisfactory job performance. • The mission of the agency and the employee’s particular duties. • The employee’s assigned level of responsibility. • The employee’s previous record of both formal and informal disciplinary/corrective action • Consistency with past disciplinary/corrective action for other similarly situated employees Disciplinary action should be timely, and employers are to ensure fair treatment for employees while also providing efficient operation of the agency. When warranted, employers should practice progressive disciplinary/corrective action to address employee misconduct or unsatisfactory job performance. Depending on the particular circumstances, escalated disciplinary/corrective action may not be possible.

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If a disciplinary notice is issued as a result of the due process hearing, the notice shall:

• Re-state the reasons contained in the written notice that was the subject of the due process hearing and were determined to be inefficiency or other good cause for disciplinary action. The reason(s) listed in the notice will be the only reason(s) addressed throughout the appeals process; • State the effective date(s) of the disciplinary action. If the employee is involuntarily demoted, the notice should state the new job class and salary; • State the decision may be appealed to the Mississippi Employee Appeals Board (MEAB) with a written Notice of Appeal filed within fifteen (15) calendar days after receipt of the disciplinary notice or within fifteen (15) calendar days of the first attempted delivery date by certified mail, return receipt request, whichever occurs first. The disciplinary notice may be hand delivered or sent by certified mail; • Refer the employee to chapter nine (9) of the MSPB Handbook for additional information concerning appeals to the MEAB; • Be issued by the appointing authority Mississippi Code Annotated § 25-9-127 provides that any State Service employee who appeals to the MEAB his or her dismissal or action adversely affecting compensation or employment status shall be required to furnish evidence that the reasons stated by the employer are not true or are not sufficient grounds for the action taken.

7.5 FORMS OF DISCIPLINE AND CORRECTIVE ACTION Dismissal Dismissal is an involuntary termination of employment. Involuntary termination of employment can occur based upon disciplinary action or a Reduction in Force approved by the MSPB. Dismissal can also occur based on the failure of the employee to continue to meet the eligibility criteria for the position held or an inability to perform the essential functions of the job. The appointing authority may dismiss a permanent State Service status employee only for good cause or inefficiency. A probationary employee may be dismissed by the appointing authority at any time during the probationary period, with or without cause. Involuntary Demotion An involuntary demotion is when an employee is demoted for disciplinary reasons from a position in one job class to a position in a lower job class having a lower salary range. The involuntary demotion shall include a reduced salary in accordance with the MSPB Variable Compensation Plan. An employee may receive an involuntary demotion in addition to a suspension without pay. Suspension Without Pay A disciplinary suspension without pay is the temporary removal of an employee from performing his or her duties and from receiving payment. The maximum period an employee may be suspended without pay during any twelve (12) month period is thirty (30) cumulative

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work days. The twelve (12) month period shall begin with the first day of the initial suspension. Written Reprimand A written reprimand is a formal notice to an employee of inefficiency or other good cause warranting disciplinary action. It is intended to correct unacceptable behavior or unsatisfactory job performance before disciplinary action reducing or terminating an employee’s compensation is necessary. A written reprimand should state with sufficient specificity the inefficiency or other good cause reason(s) for the disciplinary action. The reprimand must also:

• Inform the employee of his/her right to grieve the reprimand in accordance with MSPB grievance procedures; • Inform the employee that a copy of the reprimand will be placed in his/her personnel file • Contain the employee’s signature acknowledging that he/she has received the reprimand. If the employee refuses to sign the acknowledgment, the person issuing the reprimand should sign the acknowledgment section confirming the reprimand was delivered to the employee. An employee is not entitled to a due process hearing before being issued a written reprimand. If the employee has a due process hearing before being issued the reprimand, the reprimand may be appealed directly to the MEAB without first exhausting the MSPB grievance procedure. Otherwise, employees must exhaust the grievance procedure before appealing the reprimand to the MEAB.

Informal Corrective Action When warranted, an employer may attempt to also correct unacceptable behavior or unsatisfactory job performance with a documented warning/counseling session or other appropriate informal means, before taking formal disciplinary action (Written Reprimand, Suspension Without Pay, Involuntary Demotion or Dismissal). Informal corrective action is not grievable. A formal disciplinary action notice shall be maintained in the employee’s personnel file. Supervisors should coordinate with Human Resources as to whether documentation of informal corrective action should be included in the employee’s personnel file. Employees must be given copies of any disciplinary/corrective action documentation placed in his/her personnel file. Documentation of formal disciplinary action or informal corrective action may be kept indefinitely in the employee’s personnel file.

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CHAPTER 8 – GRIEVANCES

8.1 GRIEVABLE ISSUES The following issues are grievable and appealable to the Mississippi Employee Appeals Board (MEAB) after exhausting the MSPB grievance procedure:

A. Written Reprimands issued pursuant to Section 7.5 of the MSPB Handbook. Non-state service employees may only grieve Written Reprimands on the basis of alleged violations of state or federal law. B. Open Competitive Appointments or Promotions into a Permanent State Service position alleged to be in violation of MSPB or agency policy; C. Promotions or appointments alleged to be in violation of state and/or federal law; D. Involuntary relocation of an employee as an alleged disciplinary measure or for arbitrary or capricious reasons; or E. Alleged violations of Mississippi Code Annotated §25-9-171 through §25-9-177.

An employee is not permitted to file a grievance or appeal to the MEAB concerning issues which are pending or have been concluded in a separate administrative or judicial forum. Additionally, at any time during an EAB appeal, if an employee appeals issues pending before the EAB in a separate administrative or judicial forum, then it is grounds for dismissal of the EAB appeal.

When an employee has received due process (written notice and hearing pursuant to Section 7.3 of the MSPB Handbook) prior to being issued a Written Reprimand, the employee may appeal directly to the MEAB without exhausting the MSPB grievance procedure.

8.2 GRIEVANCE PROCEDURE A. Grievances must be submitted to the agency Human Resources Director or other agency designee(s) within seven (7) working days of the employee becoming aware of the alleged grievable issue. In the event that an agency does not have a Human Resources division, grievances must be submitted to the appointing authority’s designee who has Human Resources responsibilities. The HR Director or other agency designee shall then timely forward the grievance to the appropriate level supervisor to review the issues, meet with the employee, and provide a 1st Level Agency Response. The agency Human Resources Director or other agency designee shall assist the supervisor in this process. B. Within seven (7) working days of the employee initially submitting the grievance, the designated supervisor shall meet with the employee. This timeframe may be extended by agreement of the parties. Within three (3) working days of the meeting, the supervisor shall provide the employee with the 1st Level Agency Response to the grievance. C. If not satisfied with the 1st Level Agency Response, within three (3) working days of receipt, the employee may re-submit the grievance to the Human Resources Director or other agency designee for it to be timely forwarded to the agency Appointing Authority. D. Within seven (7) working days of the grievance being re-submitted, the Appointing Authority or designee shall meet with the employee. This timeframe may be extended by agreement of

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the parties. Within three (3) working days of the meeting, the Final Agency Response shall be provided to the employee. E. If not satisfied with the Final Agency Response, the employee may file an appeal with the Mississippi Employee Appeals Board in compliance with Chapter 9 of the MSPB Handbook.

8.3 GRIEVANCE FORM AND TIMEFRAME REQUIREMENTS Grievances are to be submitted using the MSPB Grievance Form and management shall provide the 1st Level and Final Agency Response on the grievance form. If necessary, either party may attach relevant supporting documents.

An employee’s failure to comply with the required timeframe in Section 8.2(A) or 8.2(C) prohibits the employee from using or exhausting the grievance procedure. In such circumstances, the MEAB does not have jurisdiction to hear an appeal concerning the issue.

An employee’s failure to comply with or exhaust the grievance procedure does not relieve an agency’s responsibility to timely and appropriately address such issues as necessary. Issues of concern to an employee that are not considered grievable pursuant to Section 8.1 may still require an immediate and appropriate response by the agency. Agencies are especially required to timely and effectively respond to complaints of alleged workplace harassment (Section 5.7) and workplace violence (Section 5.10).

If the agency fails to comply with the required timeframe in Section 8.2 (B) or 8.2 (D) the employee may elect to treat the relief requested as denied at that step and immediately appeal the grievance to the next step.

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CHAPTER 9 – MISSISSIPPI EMPLOYEE APPEALS BOARD Purpose

Mississippi Code Annotated § 25-9-129 provides that the Mississippi State Personnel Board shall appoint an employee appeals board (hereinafter referred to as the Mississippi Employee Appeals Board or “MEAB”). The MEAB shall consist of three (3) hearing officers for the purpose of holding hearings, compiling evidence and rendering decisions on appeals of personnel action adversely affecting employment status or compensation (formal disciplinary action defined in Section 7.1). Grievable issues specified in Section 8.1 may also be appealed to the MEAB.

Definitions

• “Agency” means the State agency against which an employee or job applicant is filing an appeal. • “Administrative Office” means the office that receives, maintains, and provides data regarding the filings and other matters before the Employee Appeals Board. • “Administrative Office Notice” means the process of informing the parties of action by a presiding hearing officer. Notice may be given electronically, including facsimile notice, or by any other method reasonably calculated to effect actual notice. This definition applies to notices of hearings, orders, decisions, and other pertinent documents. • “En banc hearing” means an EAB hearing conducted by all three hearing officers as provided in Section 9.9 (C). • “File” means submitting pleadings and other documents to the Administrative Office. Filing may be accomplished electronically, including fax, by certified mail or personal delivery, or any other method specified by the presiding hearing officer. The date of filing is the date of receipt by the Administrative Office of the document. When a document is filed electronically, filing is considered accomplished on the date the electronic message is sent as indicated by the electronic message, except for Saturday, Sunday, legal holiday, or other day the Administrative Office is closed. If a filing is received on a day when the Administrative Office is closed, the pleading will be filed the next business day. • “Final order” means the order granting disposition of the appeal by either the individual hearing officer, or the hearing officer if the matter was heard en banc. • “Hearing Officer” means one of the individual hearing officers appointed pursuant to Mississippi Code Annotated § 25-9-129. • “Parties” mean the person or persons filing an appeal and all agencies against which an appeal is filed. • “Presiding hearing officer” means the hearing officer assigned to an appeal or the hearing officer when the EAB hears a matter en banc. • “Serve” means giving notice of a filing to all other parties. Service may be accomplished electronically, by certified mail, personal delivery, or any other method specified by the Administrative Office. The date of service will be determined by the date indicated on the serving party’s certification.

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• “Working days” means Monday through Friday, excluding legal holidays and any other days when state government offices are closed pursuant to executive order of the Governor.

9.1 AVAILABILITY OF RULES AND MEAB ADMINISTRATIVE OFFICE The MSPB shall make these MEAB Administrative Rules available on the MSPB and MEAB website and MSPB staff shall provide administrative support to the MEAB through the Administrative Office.

9.2 TIME CALCULATIONS In computing any period of time prescribed or allowed by these rules, the day of the act or event from which the designated period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday, legal holiday or any other day the Administrative Office is in fact closed, in which event the period runs until the end of the next day that is not a Saturday, Sunday, legal holiday or other day the Administrative Office is closed. Intermediate Saturdays, Sundays, and legal Holidays shall be excluded in the computation when the period of time prescribed or allowed is less than ten (10) days. In the event any legal holiday falls on a Saturday or Sunday, the legal holiday will be observed as mandated by law.

9.3 WHO MAY APPEAL; ACTIONS WHICH MAY BE APPEALED A. State Service employees may appeal having been dismissed or otherwise adversely affected as to compensation or employment status (formal disciplinary action defined in Section 7.1). B. Non-State Service employees may appeal having been dismissed or otherwise adversely affected as to compensation or employment status (formal disciplinary action defined in Section 7.1) only on the basis of alleged violations of state or federal law. C. Employees may appeal issues that are grievable pursuant to Section 8.1 after having properly exhausted the grievance procedure pursuant to Section 8.2. When an employee has received due process (written notice and hearing pursuant to Section 7.3) prior to being issued a Written Reprimand, the employee may appeal directly to the MEAB without exhausting the MSPB grievance procedure. D. Employees may appeal alleged violations of Mississippi Code Annotated §§ 25-9-171 through 25-9-177. E. Pursuant to Mississippi Code Annotated § 25-3-95(8)(e) an employee may appeal the decision that he or she is not eligible to receive donated leave because the injury or illness of the employee or member of the employee’s immediate family is not, in the appointing authority’s determination, a catastrophic injury or illness.

9.4 PERFECTION OF APPEAL BY TIMELY FILING A. All appeals shall be initiated by filing a written Notice of Appeal with the Administrative Office. Notice of Appeal forms are available to all State agencies and employees on the MEAB website. B. A Notice of Appeal must be filed within fifteen (15) days after the date a person receives written notice of formal disciplinary action defined in Section 7.1 or the Final Agency Response to a grievance pursuant to Section 8.2 (E) or within fifteen (15) days of the first attempted delivery date by certified mail, return receipt requested, or other verifiable delivery

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through the United State Postal Service, FedEx, UPS, or other verifiable delivery service, whichever occurs first. C. A fee of one hundred dollars ($100.00) in the form of a cashier’s check, bona fide attorney’s check, or money order made payable to the “Mississippi Employee Appeals Board” shall be filed by the appealing party with each Notice of Appeal. Cash or personal checks will not be accepted. The filing fee may be paid electronically via debit or credit card when filing an online Notice of Appeal.

9.5 JURISDICTION A. When an appeal is filed, a presiding hearing officer shall determine whether or not he or she has jurisdiction. If not, the appeal shall be dismissed sua sponte (of the hearing officer’s own will without prompting or suggestion) without any type of hearing. If an appeal is dismissed for lack of jurisdiction and without hearing, the EAB shall return the appellant’s $100 filing fee. B. An employee is not permitted to appeal issues which are pending or have been concluded in a separate administrative or judicial forum. Additionally, at any time during an EAB appeal, if an employee appeals issues pending before the EAB in a separate administrative or judicial forum, then it is grounds for dismissal of the EAB appeal. Employees and agencies have an ongoing duty to notify the EAB if an employee appeals the same issues in a separate administrative or judicial forum during the pending EAB appeal. C. Pursuant to Mississippi Code Annotated § 25-9-127, an employee separated from employment due to a curtailment of funds or a reduction in force approved by the MSPB is not permitted to appeal such decision to the MEAB.

9.6 PARTIES A. Unless the Notice of Appeal names some other respondent, the appealing party's employing state agency shall be considered the only respondent. B. All attorneys representing a party before the EAB shall file an Entry of Appearance. C. When applicable, attorneys should file a Motion to Withdraw and submit a proposed Order.

9.7 FILING OF PLEADINGS AND OTHER DOCUMENTS; COPIES TO BE MADE AVAILABLE A. All pleadings, briefs, requests, and other correspondence shall be filed with the Administrative Office. When an appeal is filed, the Administrative Office shall assign it a docket number. B. All pleadings and other documents filed in the appeal shall be entered on a docket to be maintained by the Administrative Office. The Administrative Office shall make a notation of the filing date on all such pleadings and other documents. C. Copies of any and all pleadings, briefs and requests filed by any party to an appeal must be served on every other party or his or her attorney. All such documents must contain a certification executed by the serving party identifying the parties served, the manner of service and the date of service. D. All pleadings, briefs, and requests filed by any party to an appeal must be signed by such party or his or her attorney and must specify the assigned docket number.

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E. Obligation to Protect Sensitive and Private Information

1. Parties and their counsel shall refrain from including, or shall partially redact where inclusion is necessary and relevant to the case, the following personal data identifiers from all pleadings and other papers filed with the tribunal, including exhibits thereto, whether filed electronically or in paper, unless otherwise ordered by the tribunal or except where otherwise specifically required by rule or statute: a. Social Security numbers: If an individual’s social security number must be included in a pleading, only the last four digits of that number should be used. b. Names of minor children: If the involvement of a minor child must be mentioned, only the initials of that child should be used. c. Dates of birth: If an individual’s date of birth must be included in a pleading, only the year should be used. d. Financial account numbers: If financial account numbers are relevant, only the last four digits of those numbers should be used. e. Health Information Portability and Accountability Act protected information in which the records do not belong to a party. f. Any confidential agency records or information protected under Federal law or regulation for a specific agency due to their federal funding guidelines.
2. The responsibility for redacting these personal identifiers rests solely with counsel and the parties. The EAB Administrative Office staff will not review pleadings for compliance with this procedure. Attorneys are also advised to exercise caution when filing documents that contain the following:
   1. personal identifying number, such as driver’s license number;
   2. medical records, treatment, and diagnosis;
   3. employment history;
   4. individual financial information: and,
   5. proprietary or trade secret information
3. Attorneys are strongly urged to share this notice with all clients so that an informed decision may be made about the inclusion of certain materials in EAB documents.
4. Counsel and the parties are cautioned that failure to redact personal identifiers and/or the inclusion of irrelevant personal information in a pleading or exhibit filed with the tribunal may subject the party and/or counsel to sanctions as provided in Section 9.16(F). F. A party may file a motion to seal records in lieu of the redaction requirement. If the hearing officer issues an order to seal the records, then the party may file the records unredacted. G. Filing Documents with Sensitive and Private Information A party wishing to file a document containing the personal data identifiers listed above may do so in the following manner:

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1. File an unredacted version of the document under seal, or
2. File a reference list under seal. The reference list shall contain the complete personal data identifier(s) used in its (their) place in the filing. All references to the redacted identifiers in the case included in the references list will be constructed to refer to the corresponding complete personal data identifier. The references list must be filed under the seal and may be amended without leave of the tribunal. The unredacted version of the document or the reference list shall be retained by the court as part of the record. The tribunal may, however still require the party to file a redacted copy for the public file. H. A party waives his or her right to the protection of 9.7 (E) by filing documents that include his or her own personal data identifiers without redaction.

9.8 ADMINISTRATIVE OFFICE A. When an appeal is filed, the Administrative Office shall give notice to the employing agency and any other appropriate party within five working days. B. The Administrative Office will give notice to the parties of any orders, including those for prehearings, hearings, and motions at their last known mailing address or through email. It shall be the duty and responsibility of each party to inform the Administrative Office of any change of address and provide the mailing address or email address to which future notices and communications should be directed. All correspondence shall be conducted through email unless otherwise requested by a party. C. The Administrative Office may create and disseminate forms to expedite the appeals process and assist the parties.

9.9 ASSIGNMENT OF CASES; SCHEDULING OF PREHEARING CONFERENCE A. The Administrative Office shall assign cases to the hearing officers in a manner that is most efficient and effective to hear and decide cases. B. When, in the opinion of the hearing officer, pending appeals involve a common question of law or fact, he or she may, on his or her own motion or upon motion of a party, order that the appeals be consolidated. C. When, in the opinion of the hearing officer, the issues and circumstances of an appeal warrant that the hearing be conducted before the three hearing officers en banc instead of a single hearing officer, he or she may issue an order or notice to that effect. D. Once a case is filed, prehearing conferences may be held at the discretion of the presiding hearing officer to simplify the issues, procedures, and evidence in order to fairly hear and decide the case.

9.10 PREHEARING CONFERENCE AND ORDER When a prehearing conference is conducted, the presiding hearing officer may order any such matters as may resolve, simplify and/or expedite the appeal, including but not limited to a prehearing statement, dispositive motions, and statements regarding possible settlement, and may order any other

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preliminary matter be brought forward at that time at the discretion of the presiding hearing officer. After a prehearing conference, the presiding hearing officer may issue a prehearing order, if appropriate.

9.11 MOTIONS A. Parties may file written motions, including requests for continuance, with the Administrative Office. The request must state the grounds, whether the party desires a hearing, and any relief requested. The other parties shall have ten (10) days after service of the motion on the parties to respond to such motion. The presiding hearing officer assigned to the case will promptly act upon the request. After a Motion is filed, it is at the presiding hearing officer’s discretion whether to hold a hearing on the Motion. The presiding hearing officer may rule on Motions without holding a hearing. Motions not filed in a timely manner pursuant to this rule will be heard only at the discretion of the presiding hearing officer. B. Motions for continuance and Motions to Amend the Notice of Appeal will be granted only for good cause or upon the agreement of both parties. C. No party shall be granted more than one motion for continuance except in the case of extreme emergency or unusual hardship, as determined by the presiding hearing officer. Except for extraordinary reasons, motions for continuance may not be filed any later than fourteen days before the scheduled hearing. D. For purposes of this rule, requests for subpoenas and subpoenas duces tecum shall be considered motions.

9.12 WITNESSES A. Each party shall file a list of witnesses such party may call to testify at the hearing. Each party must file a witness list in compliance with this rule no later than ten (10) days prior to the date of the hearing. The list shall contain for each witness: i. Name; ii. Employer; iii. Street address of employer; and, iv. Brief summary of testimony to be given. B. The issuance of subpoenas to compel the attendance of witnesses shall be governed by Rule 9.13.

9.13 SUBPOENAS A. The presiding hearing officer shall have the authority to issue subpoenas in connection with a hearing. B. To compel the attendance of a witness, or witnesses, any party to an appeal may file with the Administrative Office a written Request for Issuance of Subpoenas. Each request shall contain for each witness: i. Name;

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ii. Street address where the witness may be readily found for service of the subpoena (If the only available address is a route number or box number, the party requesting the subpoena must provide complete and accurate directions for locating the witness.); and, iii. Brief statement supporting the relevance and materiality of the testimony of the witness to the appeal. C. To compel the production of documentary evidence, any party to an appeal may file with the Administrative Office a written Request for Issuance of Subpoena Duces Tecum. Each request shall specify: i. Name of person who is to produce such documentary evidence; ii. Street address where such person may be readily found for service of the subpoena (If the only available address is route number or box number, the party requesting the subpoena must provide complete and accurate directions for locating the witness.); and, iii. Brief statement supporting the relevancy and materiality of the documentary evidence to the appeal. D. Each request must be filed no later than twenty (20) days prior to the hearing date to ensure timely service. Requests for subpoenas must be served on every other party or his or her attorney. A person or entity shall be given at least ten (10) days to produce documentary evidence pursuant to a subpoena. E. A subpoena may be served as provided by the Mississippi Rules of Civil Procedure. F. Once a subpoena is issued to the appropriate office for service by the county sheriff, the Administrative Office will return the issued subpoenas to the requesting party for service. It is the responsibility of the requesting party to forward the issued subpoenas and the required fee to the appropriate office for service by the county sheriff. A fee determined by the county sheriff for each person to be subpoenaed shall accompany the subpoena. Any questions regarding fees or where to send subpoenas should be directed to the sheriff’s office that will be serving the subpoena. The Administrative Office cannot answer questions regarding mailing instructions or fees for county sheriff’s offices. G. In case of the failure of any person to comply with any subpoena issued by the presiding hearing officer, the requesting party may invoke the aid of any court of this state of general jurisdiction. The court may thereupon order such person to comply with the requirements of the subpoena. Failure to obey the order of the court may be punished by the court as contempt thereof.

9.14 WITHDRAWALS, SETTLEMENTS, AND DISMISSALS A. An appeal may be withdrawn by the appellant at any time prior to the issuance of a decision of the presiding hearing officer before whom the matter is pending. A request for withdrawal of an appeal shall be stated in the record of the proceeding, or shall be submitted in writing to the Administrative Office. Such a withdrawal shall have the same effect as a dismissal of the appeal. The hearing officer may issue an Order of Dismissal after receipt of the request for withdrawal.

B. In cases where there has been no action of record during the preceding six months, the

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Administrative Office shall mail notice to the parties or attorneys of record that such case will be dismissed by the presiding hearing officer for want of prosecution unless within thirty days following said mailing, action of record is taken or an application in writing is made to the presiding hearing officer and good cause shown why it should be continued as a pending case. If action of record is not taken or good cause is not shown, the presiding hearing officer may dismiss the case for want of prosecution.

C. Parties are not authorized to use settlement agreements to circumvent statutory requirements or the MSPB’s polices in the Handbook, the Policy and Procedures Manual, or the Variable Compensation and Special Compensation Plan. Prior to finalizing the terms of any settlement agreement or the issuance of an Order of Dismissal due to settlement which involves reinstating an employee, promoting an employee, changing an employee’s job title/position, affects compensation rules, or any other term which is impacted by the classification, compensation, or recruitment rules, parties must receive approval of those terms from the State Personnel Director to ensure compliance with statutory and policy requirements.

D. When cases are settled prior to the issuance of a Final Order, the parties shall provide confirmation to the EAB from the Office of Classification, Compensation, and Recruitment via the completed settlement agreement approval form that the terms of the settlement agreement are in compliance with statutory and policy requirements. After the completed settlement agreement approval form is received, the hearing officer will issue an Order of Dismissal due to settlement.

E. All Agreed Orders of Dismissal due to a settlement submitted to the presiding hearing officer must include a provision that the settlement agreement terms are in compliance with Section 9.14(C).

9.15 FAILURE TO APPEAR AT HEARING If any party, without good cause, fails to appear at a hearing, the presiding hearing officer may find in favor of the opposing party and dismiss the appeal with prejudice.

9.16 CONDUCT OF HEARING

1. The hearing is de novo, affording the appealing party all procedural due process.
2. The responding agency may have a representative, in addition to its attorney, remain in the

hearing room during the entire course of the hearing, even though the representative may

testify. The appealing party may remain in the hearing room throughout the hearing. The

presiding hearing officer has authority to control the presence of witnesses in the hearing

location.

C. The presiding hearing officer is authorized to administer oaths and affirmations and will take

testimony under such oaths and affirmations.

D. Parties may be represented by counsel licensed to practice in Mississippi.

E. The presiding hearing officer will afford the parties, witnesses, and representatives respect

and fairness consistent with their duty to maintain decorum and exercise due diligence.

F. The presiding hearing officer is authorized to sanction parties and representatives for

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inappropriate behavior and failure to follow these rules. Such sanctions include but are not limited to: default judgment, taking a negative inference, or limiting evidence, provided his or her reasons for taking such action are in the record.

9.17 EVIDENCE A. Hearings shall be informal, and technical rules of evidence and civil procedure shall be relaxed. B. All witnesses shall testify under oath and shall be subject to cross- examination. C. All parties shall have the opportunity to respond and present evidence and argument on all relevant issues. All relevant evidence is admissible, but the presiding hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence. The presiding hearing officer shall exercise reasonable control over the manner and order of cross-examining witnesses and presenting evidence to make the cross-examination and presentation effective for ascertaining the truth, avoiding needless consumption of time, and protecting witnesses from harassment or undue embarrassment. D. In the appeal of formal disciplinary action, the presiding hearing officer shall hear or receive evidence on only those reasons and allegations contained in the responding agency's formal disciplinary notice to the employee of such action. E. Documents received into evidence by the presiding hearing officer shall be marked by him or her, or under his or her direction, and filed for the record of the appeal. F. Rebuttal and surrebuttal evidence may be heard in the discretion of the presiding hearing officer. G. Summations of the evidence and the law may be heard in the discretion of the presiding hearing officer. H. Unless the presiding hearing officer leaves the record open for additional evidence or submission of briefs, the record shall be considered closed five (5) working days after the conclusion of the hearing, and no additional evidence or documentation shall be submitted.

9.18 ORDER OF PROOF; BURDEN OF PROOF A. At the hearing, the matter should be heard as directed by the presiding hearing officer in his or her sole discretion. B. A State Service employee shall have the burden of proving that the reasons stated in the notice of the agency’s formal disciplinary action (i) are not true or (ii) are not sufficient grounds for the action taken. C. A Non-State Service employee that has received formal disciplinary action shall have the burden of proving such action was a violation of state or federal law. D. A party appealing a grievance filed pursuant to Section 8.1 (B) shall have the burden of proving the appointment or promotion was in violation of MSPB or agency policy. E. A party appealing a grievance filed pursuant to Section 8.1 (C) shall have the burden of

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proving the promotion or appointment was in violation of state or federal law. F. A party appealing a grievance filed pursuant to Section 8.1 (D) shall have the burden of proving his or her involuntary relocation was a disciplinary measure or for arbitrary or capricious reasons. G. A party appealing a grievance filed pursuant to Section 8.1 (E) (alleged violations of Mississippi Code Annotated §§ 25-9-171 through 25-9-177) shall have the burden of proving: i. that he or she is a whistleblower as defined in § 25-9-171; and ii. as a result of being a whistleblower has been subjected to workplace reprisal, retaliation or adverse personnel action as defined in § 25-9-171 through § 25-9-177. H. A party appealing pursuant to Mississippi Code § 25-3-95(8)(e) shall have the burden of proving that he or she is eligible to receive donated leave because the injury or illness of the employee or member of the employee’s family is a catastrophic injury or illness.

9.19 PRESERVATION OF RECORD HEARING All hearings and prehearing matters shall be electronically recorded. It is the responsibility of the Administrative Office to record the proceedings. Upon request and at a reasonable cost, the Administrative Office will provide electronic copies to the parties. In order to maintain appropriate confidentiality and maintain the integrity of the official record, no other recording of the hearing, or any prehearing matter, will be permitted.

9.20 ORDER TO BE FILED UPON COMPLETION OF HEARING A. Except in extraordinary or unique circumstances as determined by the presiding hearing officer, upon the closing of the record, the presiding hearing officer, within twenty-five (25) days thereafter, shall prepare and file a written decision and order. B. An order may be considered valid and filed only if signed by the Hearing Officer. To expedite resolutions of matters before the EAB, the Hearing Officer’s signature may be affixed through actual or electronic means. C. The presiding hearing officer may, within thirty (30) days of the date of the initial order, correct any clerical mistakes or jurisdictional orders upon the hearing officer’s own initiative or on the motion of any party.

9.21 COMPLIANCE WITH ORDER All parties shall promptly comply with all orders of the EAB, unless either party has timely sought available judicial review.

9.22 RELIEF TO BE GRANTED A. If a party appealing formal disciplinary action meets his or her applicable burden of proof in Section 9.18, the hearing officer may: i. Order reinstatement of a dismissed employee and restore all his or her employee rights and benefits, including back pay, medical leave, and personal leave. Retirement benefits may also be restored provided the integrity of such benefits remains uncompromised in accordance with all applicable laws, policies, rules and regulations.

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ii. Order reinstatement of a demoted employee to his or her previous position and salary, including back pay. iii. Order that an employee suspended without pay be reimbursed for the period of suspension iv. Order that a Written Reprimand be removed from an employee’s personnel file and not considered for possible future disciplinary action. B. Pursuant to Mississippi Code Annotated § 25-9-131, the hearing officer may modify the formal disciplinary action issued to an appealing party but may not increase the severity of such action. In such circumstances, pursuant to Section 9.18 (B) (ii), the employee has the burden of proving that the reasons stated in the formal disciplinary action notice are not sufficient grounds for the action taken. The agency’s decision concerning the level of disciplinary action issued to the employee is entitled to a presumption of correctness and the hearing officer shall accord a degree of deference to the agency’s determination. C. If a party appealing pursuant to Section 9.3 (C), (D) or (E) meets his or her applicable burden of proof in Section 9.18, the hearing officer may grant the appropriate relief allowed by law.

9.23 JUDICIAL REVIEW A. Any party aggrieved by a final written decision and order of the EAB may appeal such order in the manner provided by applicable laws and statutes. Upon notification by the clerk of the relevant court that an appeal has been filed and, if necessary, bond provided, the Administrative Office shall prepare and transmit its record of the appeal. Except as authorized under federal law, no aggrieved party may file a petition for judicial review with a court of competent jurisdiction until a final written decision and order of the MEAB has been filed by the Administrative Office.

Source: Mississippi Code Annotated §§ 25-9-132, 11-51-93, or 11-51-95.

B. Pursuant to the Uniform Circuit and County Court Rule 5.04, parties appealing the Final Order of the EAB to a circuit court must provide a copy of the notice of appeal to the EAB. Parties should not rely on the circuit court to provide the EAB with notice of the appeal or proof of bond payment.

C. Parties are responsible for providing proof of payment of the appeal bond before the EAB will transmit the EAB record to the circuit court.

9.24 ASSESSMENT OF FEES AND COSTS The Administrative Office shall have the authority to establish reasonable fees and assess reasonable costs of providing the record on appeal. The invoice for reasonable fees and costs shall be paid before the EAB will transmit the EAB record to the appeals court.

9.25 JUDICIAL CONDUCT A. The hearing officers shall be guided by and subject to the Mississippi Rules of Court, Code of Judicial Conduct (Adopted by the Mississippi Supreme Court April 4, 2002). B. No Hearing Officer shall be removed from office during his or her term except by a finding

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of misfeasance, malfeasance, or nonfeasance in office.

9.26 AMENDMENT OF RULES; VALIDITY OF RULES; ENFORCEMENT OF RULES MSPB may amend these rules or promulgate new rules. If any one or more of these rules is found to be invalid by any court of competent jurisdiction, such finding shall not affect the validity of any other of these rules. The MEAB shall have the authority, duty, and responsibility to abide by and enforce these rules.

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Part 130 Variable Compensation Plan Manual

27 Miss. Admin. Code Pt. 130 Variable Compensation Plan Manual

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Variable Compensation Plan for FY 2027

TO: Elected Officials, Agency Directors and Personnel Officers State Government Agencies

FROM: Kelly Hardwick Mississippi State Personnel Board Executive Director

DATE: April 16, 2026

SUBJECT: ADMINISTRATION OF THE VARIABLE COMPENSATION PLAN FOR FISCAL YEAR 2027 EFFECTIVE JULY 1, 2026

A. Statement of Purpose

Administration of the Variable Compensation Plan for Fiscal Year 2027 shall be governed by policies and procedures contained herein. These provisions shall supersede all conflicting policies and procedures for administration of salaries published in the Mississippi State Personnel Board Policy and Procedures Manual, any additional or replacement manuals, and all subsequent changes to the manual, effective as of close of business June 30, 2026, and shall become an official attachment to the Mississippi State Personnel Board Policy and Procedures Manual for Fiscal Year 2027.

The increase or decrease of any salary under the salary setting authority of the Mississippi State Personnel Board (hereinafter ‘MSPB’) shall comply with the policies below except where Legislative authority specifies otherwise.

The development of the following policies is based upon implementation of Legislative intent as expressed in the following language contained in state service agencies’ appropriation acts:

As used in this section, the term "Personal Services" shall mean funds provided under the major object of expenditure category Personal Services for Salaries, Wages, and Fringe Benefits. Funds in this category shall not be transferred to any other category.

It is the intention of the Legislature to ensure compliance with the Variable Compensation Plan, as outlined in Section 25-9-147, Mississippi Code of 1972. Payment from these funds shall be in accordance with the Variable Compensation Plan promulgated by the Mississippi State Personnel Board.

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It is the Legislature's intention that no employee's salary falls below the minimum salary established by the Mississippi State Personnel Board.

The State Personnel Board shall determine and publish the projected annual cost of "Personal Services" based on monthly and year-to-date payroll expenditures in compliance with the provisions of this act.

With the funds herein appropriated, it shall be the agency's responsibility to ensure that no single personnel action or combination of personnel actions, when annualized, exceeds the Fiscal Year 2027 appropriation for "Personal Services" with the exception of escalated funds. Further, it shall be the agency's responsibility to ensure that funds required to be appropriated for "Personal Services" for Fiscal Year 2028 do not exceed Fiscal Year 2027 funds appropriated for that purpose unless programs or positions are added to the agency's Fiscal Year 2027 budget by the Mississippi Legislature.

If, at the time the agency takes any action to change "Personal Services," the State Personnel Board determines that the agency has taken or will take an action that would cause the agency to exceed the funds appropriated in this act when annualized for Fiscal Year 2027 or increase the need for "Personal Services" for Fiscal Year 2028, when annualized, the State Personnel Board shall process no salary actions until such time as the requirements of the provisions of this section are met with the exception of new hires determined to be essential for the agency.

When used in this section, "Vacancy Funding" shall mean funds included in the Total Personal Services amount listed above and designated for approved vacancies in Fiscal Year 2027. These funds are to be utilized to increase the number of filled headcounts that were authorized but unfilled as of the last day of Fiscal Year 2026. If the agency fills additional headcounts after March 1, 2026, until the end of Fiscal Year 2026, the amount of available Vacancy Funding may be proportionally adjusted to reflect the updated number of filled headcounts. The agency shall be responsible for ensuring that "Vacancy Funding" is used to increase headcounts and not for promotions, title changes, in-range salary adjustments, or any other mechanism for increasing salaries for current employees.

Any transfers or escalations shall be made in accordance with the terms, conditions, and procedures established by law or allowable under the terms set forth within this act. The State Personnel Board shall not escalate positions or increase the Personal Services total without written approval from the Department of Finance and Administration. The Department of

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Finance and Administration shall not provide written approval to escalate any funds for salaries and/or headcounts without proof of availability of new or additional funds above the appropriated level. Unless specifically noted, all Fiscal Year 2026 escalated headcounts have been accounted for and shall be converted to authorized time-limited headcounts.

No general funds authorized to be expended herein shall be used to replace federal funds and/or other special funds used for salaries authorized under the provisions of this act and which are withdrawn and no longer available.

None of the funds herein appropriated shall be used in violation of the Internal Revenue Service's Publication 15-A relating to the reporting of income paid to contract employees, as interpreted by the Office of the State Auditor.

If the agency's total authorized headcount decreases from Fiscal Year 2026 to Fiscal Year 2027, it will be the agency's discretion as to what headcounts are removed.

Where the Legislature has authorized agency-specific exemptions and/or designated agency-specific actions that may be processed for FY 2027, the Mississippi State Personnel Board will process those transactions within the parameters provided by the Legislature.

B. Coverage of these Policies

1. These policies shall govern employee salary increases and position changes for:

a. State service employees and positions;

b. Non-state service employees and positions excluded from the state service by Mississippi Code Annotated § 25-9-107(c), but subject to Mississippi State Personnel Board salary setting authority as listed below:

(1) Part-time employees and positions [Refer, Mississippi Code Annotated § 25-9-107 (c)(xi)];

(2) Persons appointed on an emergency basis [Refer, Mississippi Code Annotated § 25-9-107 (c)(xii)];

(3) Time-limited employees and positions [Refer, Mississippi Code Annotated § 25-9-107 (c)(xiv)];

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(4) Administrative heads appointed by the Governor, board, commission or other authority, unless otherwise fixed by statute [Refer, Mississippi Code Annotated § 25-9-107 (c)(xv)];

(5) Administrative officers, deputies, bureau chiefs, and directors and their positions [Refer, Mississippi Code Annotated § 25-9-107 (c)(xvi)];

(6) Personnel employed by the Mississippi Department of Wildlife, Fisheries and Parks and the Mississippi Department of Marine Resources as law enforcement trainees (cadets) [Refer, Mississippi Code Annotated § 25-9-107 (c)(xxi)]; and

2. Agencies or positions with statutory exclusion (not under the salary setting authority of the Mississippi State Personnel Board and not subject to the compensation policies of this memorandum) are listed below:

a. Non-state service agencies [Refer, Mississippi Code Annotated §§ 25- 9-107 (c)(i), (ii), (iii), (iv), (vii), (viii), and (xvii)];

b. Non-state service occupations [Refer, Mississippi Code Annotated § 25- 9-107 (c)(v), (vi), (ix), and (xiii)];

c. Non-state service positions of associate director, deputy directors and bureau directors within the Department of Agriculture and Commerce [Refer, Mississippi Code Annotated § 25-9-107 (c)(xix)];

d. The President of the Mississippi Lottery Corporation and personnel employed by the Mississippi Lottery Corporation. [Refer, Mississippi Code Annotated § 25-9-107 (c)(xxiii)];

e. Administrators and instructional employees under contract or employed by the Mississippi School of the Arts (MSA) established in Sections 37-140- 1 et seq. [Refer, Mississippi Code Annotated § 25-9-107 (c)(xxii)];

f. Employees, excluding administrative employees, of the State Veterans Affairs Board who are employed at a veteran’s home established by the State Veterans Affairs Board under Section 35-1-19. [Refer, Mississippi Code Annotated § 25-9-107 (c)(xxiv)]; and

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g. All employees whether administrative, licensed instructional, non-licensed instructional staff or otherwise employed at the Mississippi School for the Blind and the Mississippi School for the Deaf (Mississippi Code Annotated §§ 43-5-1 et seq.

3. Salaries set by statute shall be implemented strictly in accordance with Legislative intent [Refer, Mississippi Code Annotated §§ 25-3-31 and 25-3- 35].

C. Policy Provisions for Implementation of Legislative Intent

1. Salary Progression

Funds were not specifically appropriated for all agencies, boards, and commissions for this component of the Variable Compensation Plan for Fiscal Year 2027.

2. Cost of Living

Funds were not specifically appropriated for all agencies, boards, and commissions for this component of the Variable Compensation Plan for Fiscal Year 2027.

3. Performance

Funds were not specifically appropriated for all agencies, boards, and commissions for this component of the Variable Compensation Plan for Fiscal Year 2027.

5. No Increase to Appropriated Dollars or Projected Annual Cost

On or about August 1, 2026, the Mississippi State Personnel Board staff shall publish the projected annual cost to fully fund all filled positions. Additionally, MSPB shall publish the authorized salary and vacancy amount. The authorized salary amount is established by the Legislature, and the vacancy amount is based on preliminary data provided by the Legislative Budget Office and adjusted to ensure all actions prior to July 1, 2026 are captured in the report.

a. It shall be the responsibility of the agency head to ensure that no single

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personnel action would cause the agency to exceed their expected annual salary cost and/or cause the agency to require additional appropriation for Fiscal Year 2027 appropriations for "Personal Services" when annualized, with the exception of escalated funds.

b. Following each payroll run, the Mississippi State Personnel Board will publish a report indicating the flexibility available to each agency with regard to their projected annual payroll cost and their appropriated dollars compared to actual expenditures.

c. If the Mississippi State Personnel Board determines the agency has taken an action that would cause the agency to exceed their appropriated salary dollars for Fiscal Year 2027 or 2028 when annualized, with the exception of escalated funds, then any subsequent action will not be processed until such time as the agency has sufficiently reduced the projected annual cost and/or the appropriation requirement.

d. This language is not intended to stop the escalation of time-limited positions. Escalations shall not be considered to cause an agency to exceed the established limits and will not be accounted for in the reports relative to this language.

D. Scope of State Personnel Director Authority

A. Salary Determination for Current Employees and New Hires

1. Every classification within the MSPB’s inventory is assigned to a pay plan and pay grade. For information regarding classification, please refer to the Mississippi State Personnel Board’s Policy and Procedures Manual. These pay plans are listed in this plan.

2. Each pay grade consists of a minimum, market, and maximum salary.

3. For salary decisions concerning current employees and new hires, agencies should use criteria outlined below for the four salary zones in determining an appropriate salary for an employee.

4. In making salary determinations, agencies should consider a current or potential employee’s peers within the same job family who possess similar education, experience, licensure/certification, and performance.

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5. Within each pay range, there are four distinct salary zones. These zones are identified within each pay plan and pay grade. The criteria for each zone is as follows:

a. Zone 1 (within 10% of minimum) - Entry Level. Meets minimum qualifications with little or no prior related experience. Requires active training and management to build knowledge and skills. Salary determinations in Zone 1 are made at the agency level subject to equity audits by MSPB staff.

b. Zone 2 (between 10% above minimum to the market) - Has minimal prior closely related experience. Requires active training and management to build knowledge and skills. Salary determinations in Zone 2 are made at the agency level subject to equity audits by MSPB staff.

c. Zone 3 (between market and 10% above market) - Has previous closely related experience and a demonstrated ability to perform assigned duties. May need minimal training to perform duties independently. Salary determinations in Zone 3 are made at the agency level subject to equity audits by the State Personnel Director or designee prior to approval.

d. Zone 4 (between 10% above market and maximum) – Reserved for those employees who have exemplary performance, a broad and deep knowledge of the position and related areas, and/or possess scarce skills or licenses/certifications that are highly valued in the marketplace. Difficulty to recruit suitable candidates can be considered in paying in Zone 4. Any appointments or salary increases in Zone 4 require Mississippi State Personnel Board approval with the exceptions listed in Section A.6. Additionally, the State Personnel Director or designee may approve salary increases in Zone 4 for employees in job classifications whose salary scale is set by statute.

6. In making salary determinations in Zone 4, certain qualifications are authorized by the Mississippi State Personnel Board to give immediate access to Zone 4 without a separate request presented to and approved by the Mississippi State Personnel Board. These specific qualifications also are exempted from the 7% maximum increase for in- range adjustments. These qualifications include:

• Certified Examiner in Charge • Chartered Financial Analyst • Certified Financial Examiner • Certified Internal Auditor • Certified Insurance Examiner • Nursing Home Administrator • Certified Public

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Accountant • Certified Fraud Examiner • Certified Government Financial Manager • Engineer and Geologist in Training as part of a special compensation plan • Statutory Academic Teacher pay plan prorated for 12 months

7. Further, in making salary determinations in Zone 4, certain qualifications are authorized by the Mississippi State Personnel Board to give immediate access to Zone 4 without a separate request presented to and approved by the Mississippi State Personnel Board; however, these specific qualifications also are bound by the 7% maximum increase for in-range adjustments:

• Employees with 20+ years of experience related to their current classification

B. Compensation Delivery Mechanisms

All salary decisions made by agencies utilizing these compensation delivery mechanisms are subject to equity audits by the State Personnel Director or designee prior to or after approval.

1. Title Change –A title change is a movement from one classification to another with greater job content, responsibility, and accountability typically within the same job family. Increase can be between 5-15% and considerations should be given for how many pay grades are between the new and old grade, the employee’s current salary in relation to the new pay grade, the level of skill the employee possesses, the employee’s recent performance review, and parity with others in the same/new job classification. Exceptions to the 15% maximum will be allowed if the new position is moving from the General Pay Plan to any other pay plan or if the requested salary has been previously authorized by the Mississippi State Personnel Board as a part of an approved pay plan. Additionally, employees in the Medical Pay Plan who obtain the following advanced certifications are exempted from the 15% maximum:

• Nursing Assistant obtains Licensed Practical Nurse • Licensed Practical Nurse obtains Registered Nurse • Registered Nurse obtains Nurse Practitioner • Nurse Practitioner obtains Psychiatric Nurse Practitioner

All requests for a title change must be justified and submitted by the requesting agency as outlined in the Mississippi State Personnel Board Policy and Procedures Manual for approval by the Mississippi State Personnel Board or the State Personnel Director or designee. All title changes are subject to review by MSPB staff. Requests for

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upward title changes for jobs in the Information Technology Occupational Group going from the worker level to the supervisory level or a change in job family or occupational group shall also be considered on a case-by-case basis by MSPB staff with recommendation by the Information Technology Professional Development Committee.

For title changes, the following approvals are required:

a. Increasing a current employee from the worker level to the supervisor level requires approval from the Mississippi State Personnel Board if the new minimum salary is greater than $70,000.00.

b. Non-supervisory current employees moving upward or laterally within the same job family as well as all title changes for vacant positions require approval from the State Personnel Director or designee.

2. Promotion - Differs from Title Change in that the employee applied for a posted position rather than being progressed through a job family. Increase can be between 5- 15% and considerations should be given for how many pay grades are between the new and old grade, the employee’s current salary in relation to the new pay grade, the level of skill the employee possesses, the employee’s recent performance review, and parity with others in the same/new job classification. Exceptions to the 15% maximum will only be allowed if the new position is moving from the General Pay Plan to any other pay plan, the requested salary has been previously authorized by the Mississippi State Personnel Board as a part of an approved pay plan, or if the 15% maximum creates a documented salary inequity. Additionally, employees in the Medical Pay Plan who obtain the following advanced certifications are exempted from the 15% maximum:

• Nursing Assistant obtains Licensed Practical Nurse • Licensed Practical Nurse obtains Registered Nurse • Registered Nurse obtains Nurse Practitioner • Nurse Practitioner obtains Psychiatric Nurse Practitioner

Lateral transfers are defined as the movement of an employee from one position to a different position where both positions have the same pay grade. Employees who laterally transfer are not eligible for any additional salary increase as a result of the transfer; however, the employee retains their eligibility for in-range salary adjustments.

3. In-Range Adjustments - There are three mechanisms to award an in-range salary increase, but at no point will an employee be allowed to receive more than a cumulative 7% increase in compensation in total for these reasons within a fiscal year. The three

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mechanisms are as follows:

a. Salary Progression - moderate changes in duties and responsibilities which are at a higher level and/or an increase in the variety and scope of the duties assigned. This increase in duties/responsibilities is considered moderate and not significant enough to warrant a Title Change. Additional considerations include performance, longevity, licensure/certification attainment, and job mastery.

b. Equity - relationship of employee’s salary to the salary of other employees with comparable education, experience, performance, and same or similar duties within the agency.

c. Immediate Labor Market Changes - allows agencies to address immediate changes in the labor market that may impact retention, the work performed is critical, and replacing an employee is difficult.

4. Demotion - A movement from one classification to another with less job content, responsibility, and accountability typically within the same job family. The agency must provide a written acknowledgement signed by the impacted employee or a statement from the appointing authority or designee for disciplinary/involuntary demotions. For salary determination of a demotion, the following guidance governs pay determination:

a. Voluntary Demotion within 12 months of appointment/promotion – reduce pay by amount of the promotional increase received.

b. Voluntary Demotion after 12 months of appointment/promotion – reduce pay to appropriate level within new range based on qualifications and peers.

c. Involuntary Demotion due to Discipline/Performance – reduce pay to appropriate level within the new range.

5. Legislative Increases - Direct appropriation from the Legislature based on performance, cost of living, and/or market shall be implemented in accordance with Legislative intent.

6. Job Offer Match – In order to ensure that an agency can remain competitive with their peers, at their discretion, agencies may match job offers for current employees under the following conditions:

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1. The job offer must be in writing from an agency under MSPB purview,
2. The pay grade for the new job is equivalent to the employee’s current pay grade,

and

c. The resulting salary will not create an inequity with other similarly situated

employees.

C. Additional Compensation

Forms of additional compensation above base pay to accommodate the full and efficient operation of an agency in the delivery of essential services within or outside of the standard work schedule or the standard workplace include the following:

1. Extensive Travel – paid to an individual(s) in a designated job classification(s) who are required by the appointing authority to travel at least eight work nights per month on a continuous basis. Qualifying employees can be paid additional compensation at a dollar amount set by the employing agency at a maximum of $800 per month.

2. Standby – paid to an individual(s) in a designated job classification(s) who are required by the appointing authority to remain available after regularly assigned working hours to provide emergency services which are restricted to the care, preservation, and protection of life and property. Standby pay is awarded at 10% of an employee’s hourly rate for the hours on call.

3. Call Back – paid to an individual(s) in a designated job classification(s) who are required by the appointing authority to return to work after regular hours to provide emergency services which are restricted to the care, preservation, and protection of life and property. Call Back is paid at the standard hourly rate for hours worked over the standard work period.

4. Shift Differentials – paid to an individual(s) in a designated job classification(s) within a department, agency, or institution which provides service twenty-four hours a day. Shift differentials are 10% for evening shift and 15% for night shift.

5. Special Duty Pay – paid to an individual(s) in a designated job classification(s) who are required by the appointing authority to perform temporary duties other than those regularly assigned. Employees can only be detailed to a supervisory position. The position to which the employee is being detailed must be vacant or filled by an incumbent who is not available for duty due to an authorized leave.

6. Type/Duty/Location Pay – paid to an individual(s) in a designated job classification(s) when critical recruitment or employee retention problems are recognized in a specific location. Rates vary based on classification and location.

VCP27 12

Certification of additional compensation shall be limited to those forms of additional compensation previously approved by the MSPB, with the exception of call-back/overtime pay and any other form of compensation that may be subject to the Fair Labor Standards Act during Fiscal Year 2027. The MSPB shall consider other requests for additional compensation where the requests are justified by demonstrating that delayed implementation would seriously impair critical agency operations.

D. Agency Head Salary Determination – Each agency head’s salary will be capped by the Mississippi State Personnel Board’s maximum recommendation. These recommendations are based on the prevailing wage in the four contiguous states and any applicable statutory provisions. The Mississippi State Personnel Board must approve any decrease in agency head salary.

E. Salaries that Exceed the Agency Head

Mississippi Code Annotated Section 25-3-39 establishes a ceiling for salaries in relation to the Governor’s salary and that of the agency head. Please refer to this section when making salary decisions for agency heads and salaries that exceed the agency head and be advised that an employee’s total compensation cannot exceed the agency head. In reference to the language contained within this statute, the Mississippi State Personnel Board reviews requests for salary exemptions for select classifications on a case-by-case basis and has determined that the salaries of physicians and actuaries are exempt from Section 25-3-39 of the Mississippi Code Annotated.

F. A current Performance Review System rating shall be on file and be provided with, or submitted prior to, requests for processing personnel actions.

VCP27 13

All classifications are assigned to a Pay Plan and Grade as identified below:

Mississippi General Pay Plan Grade Minimum/Zone 1 Zone 2 Market Zone 3 Maximum/Zone 4 20 $101,626.42 $111,789.07 $142,881.66 $157,169.83 $178,602.08 19 $91,555.33 $100,710.88 $128,722.22 $141,594.44 $160,902.78 18 $82,482.28 $90,730.52 $115,965.96 $127,562.56 $144,957.45 17 $74,308.36 $81,739.21 $104,473.84 $114,921.22 $130,592.30 16 $66,944.47 $73,638.93 $94,120.58 $103,532.63 $117,650.72 15 $61,416.94 $67,558.65 $86,349.15 $94,984.07 $107,936.44 14 $56,345.82 $61,980.41 $79,219.41 $87,141.35 $99,024.26 13 $51,693.41 $56,862.76 $72,678.36 $79,946.19 $90,847.95 12 $47,425.15 $52,167.68 $66,677.39 $73,345.13 $83,346.73 11 $43,509.31 $47,860.25 $61,171.92 $67,289.11 $76,464.89 10 $40,286.40 $44,315.05 $56,640.67 $62,304.74 $70,800.83 9 $36,624.00 $40,286.41 $51,491.51 $56,640.66 $64,364.39 8 $33,600.00 $36,960.01 $47,239.92 $51,963.91 $59,049.90 7 $31,111.11 $34,222.23 $43,740.67 $48,114.74 $54,675.83 6 $28,542.30 $31,396.54 $40,129.05 $44,141.95 $50,161.32 5 $26,185.60 $28,804.17 $36,815.64 $40,497.20 $46,019.56 4 $24,023.49 $26,425.84 $33,775.82 $37,153.40 $42,219.77 3 $22,039.90 $24,243.90 $30,986.99 $34,085.69 $38,733.74 2 $20,220.09 $22,242.11 $28,428.43 $31,271.28 $35,535.54 1 $18,216.30 $20,037.93 $25,611.20 $28,172.32 $32,014.00

VCP27 14

Information Technology Pay Plan Grade Minimum/Zone 1 Zone 2 Market Zone 3 Maximum/Zone 4 12 $101,657.06 $111,822.78 $142,924.75 $157,217.22 $178,655.93 11 $90,765.23 $99,841.77 $127,611.39 $140,372.53 $159,514.23 10 $82,513.85 $90,765.24 $116,010.35 $127,611.39 $145,012.94 9 $73,673.08 $81,040.40 $103,580.66 $113,938.73 $129,475.83 8 $65,779.54 $72,357.50 $92,482.74 $101,731.02 $115,603.42 7 $60,906.98 $66,997.69 $85,632.16 $94,195.38 $107,040.21 6 $55,877.96 $61,465.77 $78,561.62 $86,417.78 $98,202.02 5 $50,798.15 $55,877.97 $71,419.65 $78,561.62 $89,274.57 4 $44,954.11 $49,449.53 $63,203.23 $69,523.55 $79,004.04 3 $40,137.60 $44,151.37 $56,431.45 $62,074.60 $70,539.32 2 $36,160.00 $39,776.01 $50,839.15 $55,923.07 $63,548.94 1 $32,000.00 $35,200.01 $44,990.40 $49,489.44 $56,238.00

Medical Pay Plan Grade Minimum/Zone 1 Zone 2 Market Zone 3 Maximum/Zone 4 11 $181,879.60 $200,067.57 $255,713.62 $281,284.98 $319,642.02 10 $151,566.33 $166,722.97 $213,094.68 $234,404.15 $266,368.35 9 $126,305.28 $138,935.81 $177,578.90 $195,336.79 $221,973.63 8 $104,384.53 $114,822.99 $146,759.43 $161,435.37 $183,449.28 7 $86,987.10 $95,685.82 $122,299.52 $134,529.47 $152,874.40 6 $75,640.96 $83,205.07 $106,347.41 $116,982.15 $132,934.26 5 $65,774.75 $72,352.23 $92,476.01 $101,723.61 $115,595.00 4 $55,741.31 $61,315.45 $78,369.50 $86,206.45 $97,961.87 3 $47,238.40 $51,962.25 $66,414.83 $73,056.32 $83,018.54 2 $38,720.00 $42,592.01 $54,438.38 $59,882.22 $68,047.98 1 $32,000.00 $35,200.01 $44,990.40 $49,489.44 $56,238.00

VCP27 15

Special Compensation Plans Annual Review

Statement of Request:

Annual Special Compensation Plans Review for Fiscal Year 2027

Each fiscal year, agencies have the opportunity to request authority to implement, amend, or continue special compensation plans for the upcoming fiscal year. Special compensation plans are designed to compensate employees within selected occupational classes based on a demonstrated inability to compete satisfactorily for employees in terms of pay or availability, i.e., engineering, teaching, and nursing professions. For the most part, a special compensation plan serves to increase an employee’s base salary as he/she gains experience in the position; however, some plans only grant special compensation while the employee is in a certain occupational title or is performing certain duties.

Appropriateness of Request:

As defined in the Mississippi State Personnel Board Policy and Procedures Manual, Section 5.8:

MSPB may establish, maintain, and amend special compensation plans within the Variable Compensation Plan to compensate employees within selected occupational classes based on a demonstrated inability to compete satisfactorily for employees in terms of pay or availability. Only special compensation plans reviewed prior to the start of the fiscal year and approved by MSPB for implementation or continuation during the fiscal year shall be certified. . . .

All requesting agencies have attested to the necessity of their respective special compensation plan(s) and have indicated the complications that would arise if the plan(s) were discontinued.

Requests for Amendment:

Academic Teachers, Speech Therapists, Speech Pathologists

Based on the adjusted scale for the 2026-2027 school year (as stated in Mississippi Code Annotated § 37-19-7) and pro-rated for a twelve-month school year.

Compulsory School Attendance Officers

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Department of Education — as referenced in Section 37-13-89(6) of the Mississippi Code Annotated, “The State Personnel Board shall develop a salary scale for school attendance officers as part of the variable compensation plan... School attendance officers shall be paid in accordance with this salary scale...” This plan differentiates between employees with a bachelor’s degree or less, those who are Licensed Social Workers, and those with a master’s degree.

Requests for Continuation:

Engineers-in-Training

Department of Transportation — two plans in the area of professional civil engineering, which compensate graduate engineers during the four years they must work before being allowed to take the Professional Engineer examination.

Plan A, Bachelor of Science in Engineering Plan B, Master of Science in Engineering

Department of Environmental Quality and Department of Health — one plan each in the area of environmental engineering, which compensates graduate engineers for the four years they must work before being allowed to take the Professional Engineer examination.

Geologist-in-Training

Department of Environmental Quality — compensates graduate geologists for the four years they must work before being allowed to take the Registered Professional Geologist examination.

Post-Secondary Maximum Reimbursement Salary Schedule

Department of Corrections — developed by the Department of Education as a means to reimburse institutions that employ post-secondary/vocational instructors. This plan is pro- rated to a twelve-month school year.

Type/Duty/Location

Department of Human Services, Department of Mental Health, and Mississippi Veterans’ Affairs— form of special compensation designed to pay nurses in institutional settings (specifically, the juvenile training facilities, Mental Health facilities, and the State Veterans’ Homes) a salary commensurate with other nurses in the same geographical vicinity of the institutions.

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Department of Mental Health — form of special compensation designed to pay direct care workers and active treatment technicians at South Mississippi Regional Center and Specialized Treatment Facility.

Department of Public Safety — compensates officers assigned to the Motor Carrier Safety Assistance Program with up to an additional up to $1,000 per month. The goal of this federal program is to reduce commercial motor vehicle (CMV) related crashes, fatalities, and injuries through consistent, uniform, and effective CMV safety programs.

Department of Public Safety — special compensation of 10 percent for officers assigned to the Executive Protection Unit. This unit is responsible for providing personal protection and transportation for elected officials, their families, and other dignitaries as directed by the Commissioner of Public Safety.

Department of Public Safety —seven pay codes to recognize employees engaged in Traveling Criminal Apprehension Program, Criminal Reconstruction Unit, Public Affairs Officers, Special Operations Group, Special Weapons and Tactics, Honor Guard, and Motorcycle Unit.

Department of Corrections — form of special compensation designed to pay hazardous duty pay to Correctional Officers and Social Workers assigned to the maximum security units and the prisons under MDOC purview.

All Law Enforcement Agencies – Specialized Unit designation for officers required to perform duties beyond regular officers and/or at times outside of their normal work schedule.

High Turnover Families for All Agencies –Form of special compensation designed to incentivize recruitment and retention in the families listed below who have historically had high turnover and recruitment difficulties. In order to be eligible for this pay, employees and positions must be in the families listed below AND have made good faith recruitment efforts without success. Good faith effort includes, but is not limited to, multiple postings within a specific geographic area with fewer than 10 applicants. This form of additional compensation should only be utilized once all other mechanisms within the plan have been exhausted. The job families authorized for this pay include: • Support Care (Direct Health Occupational Group) • Benefits and Eligibility • Social Services • Transportation Infrastructure Maintenance • Correctional Security • Nursing

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Mississippi Board of Animal Health – form of special compensation designed to pay hazardous duty pay for employees dispatched to diseased farms to depopulate and dispose of all birds a farms where Avian Influenza is present.

Part 140 Mississippi State Personnel Board By-Laws

Chapter 1 Article I - Purpose and Intent

27 Miss. Admin. Code Pt. 140, R. 1.1 Introduction

The following Bylaws are the operating rules for the Mississippi State Personnel Board regarding the Board’s transaction of business.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 1.2 Name

The name of this agency is the Mississippi State Personnel Board (hereinafter referred to as “Board”).

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 1.3 Objective

These guidelines will serve to establish clearly the functions of the Board and to provide operating instructions enabling it to act effectively in carrying out its responsibilities. These Bylaws will fulfill the requirements of Miss. Code Ann. § 25-9-111, as amended. In the event of any conflict between any statute having application to the actions of the Board and any provision of these Bylaws, the statute shall control.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 1.4 Authority

The general authority of the Mississippi State Personnel Board is created and defined in Miss. Code Ann. § 25-9-101 through § 25-9-155, as amended.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 1.5 Functions

The functions of the Board shall be to administer a state personnel system with the following principles:

(a) to recruit, select and advance employees on the basis of their relative ability, knowledge and skills, including open consideration of qualified applicants for initial appointment; (b) to provide equitable and adequate compensation; (c) to train employees, as needed, to assure high quality performance; (d) to retain employees on the basis of the adequacy of their performance, to correct inadequate performance, and to separate employees whose inadequate performance cannot be corrected; (e) to assure fair treatment of applicants and employees in all aspects of personnel administration without regard to political affiliation, race, national origin, sex, religious creed, age, or disability; (f) to assure that employees are free from coercion for partisan or political purposes and to prohibit employees from using their official authority for the purpose of interfering with or affecting the result of an election or a nomination for office; and

(g) to provide authority for the establishment and abolishment of employment positions within the departments, agencies, and institutions under the Board’s purview.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 1.6 Amendments

These Bylaws may be amended by a majority vote of the Board members, providing at least 30 days notice, in writing, has been given on any proposed amendment.

History

• Source: Miss. Code Ann. § 25-9-111.

Chapter 2 Article II - Membership and Election of Officers

27 Miss. Admin. Code Pt. 140, R. 2.1 Membership

The composition, terms of office, and compensation of the Board are prescribed by Miss. Code Ann. § 25-9-109, as amended.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.2 Composition of the Board

The Board shall consist of the membership set forth in Miss. Code. Ann. § 25-9-109, as amended. All appointments shall be made by the Governor and confirmed by the Senate. Each member of the Board shall take the Oath of Office prescribed by Section 268 of the Mississippi Constitution.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.3 Terms of Office

The terms of office shall be as prescribed in Miss. Code Ann. § 25-9- 109, as amended.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.4 Legislative Designees

The Lieutenant Governor may designate two Senators and the Speaker of the House of Representatives may designate two Representatives to attend any meeting of the Board. Pursuant to Miss. Code Ann. § 25-9-111, the Legislative Designees may not vote on any matter but shall receive per diem and expenses which shall be paid from the contingent expense funds of their respective houses in the same amounts as provided for committee meetings when the Legislature is not in session. Per diem and expenses for attending meetings of the Board may not be paid while the Legislature is in session.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.5 Compensation

The members of the Board shall receive per diem compensation, as provided by law, for each day devoted to the discharge of official duties. In addition, the members of the Board shall be reimbursed the actual and necessary expenses incurred in the discharge of their duties and shall be reimbursed for mileage and actual expenses incurred in the performance of their duties in accordance with Miss. Code Ann. § 25-3-41. No Board member may incur per diem, travel, or other expense unless previously authorized by vote at a meeting of the Board, which action shall be recorded in the official minutes of said meetings. All

administration expenses incurred by the Board shall be paid from such funds as may be appropriated by the Legislature for such purpose.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.6 Ethics in Government

Conflicts of interest and improper use of office are addressed in Miss. Code Ann. § 25-4-101 through § 25-4-121, as amended. As an appointed official of the government, a member of the Board is defined as a “public servant” and is subject to the Ethics in Government Laws.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.7 Election of Officers

The Board shall elect from its membership the Chair and Vice Chair and any other officer deemed necessary by the Board during the Board’s regular meeting in the month of June. The term of office of said officers shall be one year and shall begin July 1st and end on June 30th. The Executive Director shall serve as the Executive Secretary to the Board.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 2.8 Vacancies on the Board

In the event the Chair is unable to complete his/her term of office, the Vice Chair shall become Chair and complete the remainder of the term. If the Vice Chair is unable to assume the position, the Board shall fill the vacancy. In the event an officer (other than the Chair) is unable to complete the term of office, the Board, at its discretion, shall fill the vacancy by a majority vote of a quorum at the next appropriate meeting of the Board.

History

• Source: Miss. Code Ann. § 25-9-111.

Chapter 3 Article III - Setting and Conducting Meetings

27 Miss. Admin. Code Pt. 140, R. 3.1 Open Meetings

All meetings of the Board are declared to be open meetings and shall be open to the public at all times unless an executive session is declared. All meetings shall be conducted in accordance with Miss. Code Ann. § 25-41-1 through § 25-41-17, as amended, which govern open meetings (hereinafter referred to as the “Open Meetings Act”). Any member of the public may attend Board meetings, as provided by law.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.2 Regular Monthly Meetings

The Board will hold regular meetings at least once each month. Normally, the Board will meet at the headquarters of the Mississippi State Personnel Board on the third Thursday of each month. When requested by any member of the Board or the Executive Director, the time, day, and location of a regularly scheduled meeting may be changed. Special meetings may be called by the Chair when they are justified.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.3 Called Special Meetings

The Board Chair may call a special meeting that was not otherwise set during the Board’s prior meeting. The notice and conduct of said meetings shall be consistent with the Open Meetings Act and other applicable statutes.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.4 Notice

Notice for all meetings shall be consistent with Miss. Code Ann. § 25-41-13 which provides that any public body which holds its meetings at such times and places and by such procedures as are specifically prescribed by statute shall continue to do so and no additional notice of such meetings shall be required; however, notice of the place, date, hour and subject matter of any recessed meeting, adjourned meeting, interim meeting or any called special meeting shall be posted within one hour after such meeting is called in a prominent place available to examination and inspection by the general public in the building in which the Board normally meets. A copy of the notice shall be made a part of the minutes or other permanent official records of the Board.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.5 Quorum Voting

A majority of the Board members constitutes a quorum at all meetings of the Board and shall be necessary for the purposes of voting or taking action. Where no vote is needed and no action is required, those members present in the absence of a quorum may receive information and discuss matters of business.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.6 Teleconference or Video Meetings

The Chair or Executive Director shall decide whether a meeting may be conducted via teleconference or video. Notice and conduct of said meeting shall be consistent with the Open Meetings Act and other applicable statutes.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.7 Board Actions

An act on the part of the majority at which a quorum is present shall be the act of the Board unless statute requires action by a greater number. The method of voting shall be by voice vote unless any one member of the Board requests a roll call vote. In the event of a Board meeting conducted with multiple members participating via teleconference/video means, votes shall be recorded by name in roll-call fashion and recorded in the minutes.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.8 Agenda

An agenda shall be developed for each meeting. Items shall be placed on the agenda with the approval of the Chair or Executive Director at least four days prior to the meeting except in cases of a called special meeting. The agenda shall provide the outline for the meeting. However, the Board may consider and take action on items that are not on the agenda.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.9 Minutes

Accurate written minutes shall be kept for each regular or special meeting of the Board. The Executive Director shall be responsible for insuring that such minutes are maintained. The minutes shall show the members present; the date, time, and place of the meeting; an accurate recording of any final actions taken at such meeting; and any other information that the Board requests be included or reflected in the minutes. The minutes shall be made available for public inspection during regular business hours.

History

• Source: Miss. Code Ann. § 25-9-111.

27 Miss. Admin. Code Pt. 140, R. 3.10 Presentations to the Board

Persons wishing to make formal presentations to the Board shall submit a written request to the Executive Director not less than ten days prior to a scheduled Board meeting. Presentations shall be allowed at the discretion of the Chair. The Chair may impose limits on the length of time each person may speak. Members of the public attending a Board meeting shall have no standing in the conduct of the business of the Board.

History

• Source: Miss. Code Ann. § 25-9-111.

Part 150 Special Compensation Plan/Manual for Information Technology Classifications

27 Miss. Admin. Code Pt. 150 Special Compensation Plan/Manual for Information Technology Classifications

ITCSCP22 1

Information Technology Classifications Special Compensation Plan for FY 2022

TO: Elected Officials, Agency Directors, and Personnel Officers State Government Agencies

FROM: Kelly Hardwick Executive Director

DATE:

SUBJECT: ADMINISTRATIVE POLICIES AND PROCEDURES FOR THE SPECIAL COMPENSATION PLAN FOR INFORMATION TECHNOLOGY CLASSIFICATIONS FOR FISCAL YEAR 2022

A. Statement of Purpose

It is the intent of the Mississippi State Personnel Board (hereinafter “MSPB”) to establish the Special Compensation Plan for Information Technology Classifications (hereinafter “Special Compensation Plan”) for the purpose of attracting, retaining, and developing competent information technology professionals to support the information technology business needs of the State of Mississippi. The plan shall provide methods for employment, promotion, and reassignment that are responsive to organizational or program needs and that offer flexibility to appointing authorities/governing bodies to negotiate, establish, and adjust salaries.

These provisions shall supersede all conflicting policies and procedures for the administration of salaries published in the Mississippi State Personnel Board Policy and Procedures Manual and any additional or replacement manuals, effective July 1, 2021. This policy shall become an official attachment to the Mississippi State Personnel Board Policy and Procedures Manual for Fiscal Year 2022.

The statutory increase or decrease of any salary under the salary setting authority of the Mississippi State Personnel Board shall comply with the policies below, except where the Legislature may otherwise provide.

B. Coverage of these Policies

These policies shall govern the Special Compensation Plan for classifications within the State of Mississippi Information Technology Career Path Chart (Attachment 2) with implementation and utilization subject to the Variable Compensation Plan. This plan is also open to those state

ITCSCP22 2

agencies not under the purview of the Mississippi State Personnel Board, which voluntarily operate under limited provisions of the Mississippi State Personnel Board.

C. General Policy Provisions

1. Designation Authority

The Mississippi State Personnel Board shall have exclusive authority to approve designated Special Compensation Plan classifications. The Mississippi State Personnel Board will appoint, from a list of nominees submitted by the Executive Director of Information Technology Services, an Information Technology Professional Development Committee (ITPDC) to review information technology related degrees in regard to meeting classification minimum requirements and agency requests for reallocations and class establishments. The ITPDC will provide a recommendation for action to the Mississippi State Personnel Board. This committee shall act in an advisory capacity to the Mississippi State Personnel Board. The ITPDC shall be established by precept and members are appointed in accordance with the procedures in Attachment 1.

Rules for operation of the ITPDC will be published with the Secretary of State’s Office as Attachment 1 to this policy.

2. Adding Classifications to the Special Compensation Plan

Classifications shall be added to the Special Compensation Plan only upon prior approval by the Mississippi State Personnel Board with recommendations by the ITPDC.

3. Position Movement

Positions may be placed under the Special Compensation Plan through the normal reallocation process as outlined in the Mississippi State Personnel Board Policy and Procedures Manual and the Variable Compensation Plan for FY 2022.

Requests for budgeted and non-budgeted reallocations and new positions shall be considered on a case-by-case basis by the Mississippi State Personnel Board with recommendations by the ITPDC. Classifications that are part of the Special Compensation Plan are not eligible for reclassifications.

4. Educational Benchmarks

The Mississippi State Personnel Board Executive Director is authorized to certify requests to award Educational Benchmark increases on a case-by-case basis. Employees may

ITCSCP22 3

receive an educational benchmark for the possession or attainment of education, licensure, certification, or registration, which exceeds the level of minimum qualifications listed for the employee’s assigned job class.

General Benchmark Policies

a. Requests for Educational Benchmark awards are made at the discretion of the agency head.

b. No Educational Benchmark shall be awarded for degrees, licensure, certification, or registration, which the incumbent possessed at the time of hire.

c. If the employee being awarded an Educational Benchmark is currently at end salary of his or her classification or should the benchmark cause an employee’s salary to exceed end salary, that portion of the benchmark exceeding end salary shall be paid as a one-time lump-sum payment.

d. Any new hire flexibility, recruitment flexibility, or other discretionary compensation awarded for, or in anticipation of, future educational achievement, licensure, certification, or registration shall not result in a subsequent award of an Educational Benchmark for the same achievement.

e. Educational Benchmarks shall not be awarded for degrees, licensure, certifications, or registrations, which are required by law for performance of job duties.

5. Designation Policies Each appointing authority shall comply with Mississippi State Personnel Board policies and administrative procedures which govern the designation of positions and employees for inclusion in the Special Compensation Plan.
6. Annual Policy Memorandum The Mississippi State Personnel Board shall publish annually a Special Compensation Plan Policy Memorandum, which addresses all policies and procedures to govern the Special Compensation Plan for that fiscal year.

ITCSCP22 4

7. Assignment of Salaries

The salaries assigned to positions in the Special Compensation Plan shall be fixed in accordance with the provisions of the Special Compensation Plan and Variable Compensation Plan, unless otherwise provided by law. 8. Provisions for Awarding Special Compensation Plan Salary Increases

Salary increases for in-class movement under the Special Compensation Plan may, subject to Legislative restrictions, be awarded for achievement of educational objectives, the development of additional critical competencies, or evidence of increasing complexity of work goals. The Special Compensation Plan is intended to reward employees who have attained additional education and competencies, which directly add value to their ability to perform the duties and tasks of their position, which ultimately add value to the agency. It is intended to be awarded individually to employees, similar to an Educational Benchmark, and is not intended to reflect any increases in the value of the classification.

a. General Policies

1. Requests for special compensation awards are made at the discretion of the agency head and are based on a 24-month measurement period. The measurement period begins upon completion of the Competencies/Education Profile form by the employee’s supervisor. The measurement period ends upon award of a special compensation salary increase. Another measurement period begins immediately after the award of a special compensation salary increase.

Employees are eligible for their initial special compensation award after a minimum of 12 months evaluation in a Special Compensation Plan position, provided that he/she has remained in the same position and has not been promoted during the evaluation period.

The measurement period will start over upon promotion of the employee or upon a lateral or downward transfer to a different agency than the one in which the employee began the measurement period. Any prior education or training accomplished at the prior agency may be transferred to the new measurement period at the new agency. Certification of prior hours must be received from the employee’s former agency.

2. Employees who complete the requirements for a special compensation increase may be eligible for a salary increase of up to six percent of their

ITCSCP22 5

current salary at the time they complete the requirements. A special compensation increase may be awarded up to 12 months after the employee completes the requirements for a special compensation increase.

3. All special compensation awards must be accomplished from within funds available.

4. To be eligible for a special compensation award, the employee must have maintained a “Successful” or higher rating for each competency of the individual’s Performance Review Assessment (PRS) during the measurement period.

5. A Competencies/Education Profile (CEP) form (Attachment 2) signed by the employee’s immediate supervisor and authorized by the agency head must be kept on file by the agency for each special compensation increase.

6. Further, to qualify for a special compensation increase, agencies must complete Form ITSCP-0716 (included at the end of this document), which certifies that the recipient has completed all requirements as outlined in this memorandum.

b. Requirements for Eligibility

1. To be eligible for a special compensation increase, an employee must complete at least 120 contact hours of education/training. At least 60 hours of the contact hours must be technical in nature and appropriate for his/her classification. The remaining 60 hours may be as approved by the agency head. However, employees who receive a special compensation award for the initial twelve-month period, as discussed in paragraphs (1) and (2) above must complete 60 contact hours of education/training. At least 30 hours of the contact hours must be technical in nature and appropriate for his/her classification. The remaining 30 hours may be as approved by the agency head.
2. In addition to the education/training hours, an employee must receive a rating of Yes (Y) indicating added value accomplished by the employee for at least three of the competencies identified for that classification, indicating the employee has fully met the supervisor’s expectations relative to those competencies. Documentation supporting the added value must be maintained by the agency.

ITCSCP22 6

3. The employee must have maintained a “Successful” or higher rating for each competency of the individual’s Performance Review Assessment (PRS) during the measurement period.

c. Approved Education/Training

1. A listing of qualified education/training categories will be maintained by the Information Technology Professional Development Committee (ITPDC). Approved categories will be listed for each of the four job families (Management, Infrastructure, Operations and Support, and Systems Delivery, Attachment 2). Training hours from conferences must be documented in detail, reviewed, and approved by the agency head for consideration of training hours for special compensation.

2. Copies of course certificates or other documents specifying completion for education/training hours shall be maintained by the agency and shall accompany the Competencies/Education Profile (CEP) form. In the case of education/training which specifies a range of hours required for completion, the minimum number of hours specified will be used. In the case of conferences or general session type meetings where individual documents of completion are not distributed to participants/attendees, the employee’s immediate supervisor must certify in letter format the number of hours claimed by the employee. The certification will be approved by the employee’s first level reviewer for the agency head. On the job training will not be counted as training for special compensation.

3. Education/training contact hours shall count only for the current measurement period. Hours achieved in excess of 120 will not be carried over to future periods, nor will they be given additional weight or computation in the current measurement period. Once a special compensation award is made, the employee then begins the next measurement period with zero contact hours.

d. Critical Competencies

1. A complete listing of critical competencies has been identified for each job classification. At the beginning of the measurement period, the employee’s supervisor will identify on the Competencies/Education Profile (CEP) form those critical competencies that are to be achieved by the employee. At the end of the measurement period, the supervisor will annotate the form with a “Y” to indicate the employee has successfully achieved the expected

ITCSCP22 7

improvement of the individual competency or will annotate with an “N” to indicate that the employee did not achieve the expected level of improvement of that individual competency. An indication of a “Y” or an “N” only indicates the employee did or did not achieve the planned increase in each individual competency. It does not indicate an acceptable or unacceptable level of competency, but merely if the employee achieved the change outlined by the supervisor at the beginning of the measurement period.

2. During the measurement period, generally at a six-month or one-year interval, the critical competencies indicated by the supervisor at the beginning of the measurement period should be reviewed and discussed with the employee. If the focus of the employee’s position has changed since the beginning of the period, the supervisor may, at any time prior to the end of one full year of the measurement period, close out the previous competency/competencies and indicate a different set of critical competencies to be in effect for the remainder of the measurement period. The close out and resultant change of competency selection must be accompanied by a narrative describing the reason for the change.

3. No official feedback document is required for critical competencies. Each supervisor should, on a continuing basis, review and discuss with the employee his or her progress, or lack thereof, in relation to each critical competency to be attained during the measurement period. Courses, seminars, books, and other materials may be suggested by the supervisor to assist the employee in accomplishment of the competencies.

e. Competencies/Education Profile (CEP) Form (Attachment 2)

1. A CEP form will be filled out by the employee’s PDS rating supervisor at the beginning of the measurement period for each employee eligible to receive a special compensation award as approved by the agency head. After the competencies and education/training goals have been discussed with and agreed to by the employee, the rating supervisor will submit the CEP form to the employee’s PDS first level reviewer for approval. Approved CEP forms will be maintained by the employee’s supervisor or in the employee’s PDS supplement employee folder.

2. During the last 14 days prior to the end of the first year of measurement period (or during the PDS review and feedback sessions), the CEP form should be reviewed by the employee’s rating supervisor, and the status of

ITCSCP22 8

the employee’s accomplishment of competencies and completion should be discussed with the employee. Any changes to the critical competencies to be accomplished must be made by the end of the first year of the measurement period and initiated by the employee and then approved by the employee’s first level reviewer and by the agency head.

3. A copy of the CEP form must be maintained in the employee’s file for all requests for a special compensation award. These forms are subject to post award review by the ITPDC or by the Mississippi State Personnel Board.

D. Status Inclusion in the Special Compensation Plan shall not be construed to exclude any position or employee from being designated as state service, nor shall inclusion be construed to confer permanent status on employees designated as non-state service. Refer to Section 25-9-107(c) of the Mississippi Code Annotated. E. Classification and Pay Plan The Mississippi State Personnel Board shall classify all positions in the Special Compensation Plan by assigning each position to its appropriate job classification according to the position description and the organizational placement of the position. Requests for positions to report to classifications with a lower salary range shall be considered on a case-by-case basis by the Mississippi State Personnel Board with the recommendation of the ITPDC. A pay range shall be assigned by the Mississippi State Personnel Board to each position’s job classification in the Special Compensation Plan on the basis of criteria set forth in the Mississippi State Personnel Board Policy and Procedures Manual and the Variable Compensation Plan, and any realignment recommendations shall be based upon the prevailing wage in the relevant labor market. F. Recruitment and Appointment

1. Hiring of new employees into information technology classification positions shall be exempted from the selection process established by the Mississippi State Personnel Board, provided the applicant meets the minimum qualifications of the classification of the position into which he or she is being appointed.

2. Vacant information technology classification positions should be reallocated to the appropriate classification within the Special Compensation Plan prior to an initial appointment being made.

ITCSCP22 9

G. Salary Restrictions

1. No new appointee to a Special Compensation Plan position shall be awarded a salary in excess of end salary.

2. Current statutory salary restrictions remain in effect.

3. Salary increases under these policies shall be calculated so as not to result in personal services funding shortfalls, employee reductions-in-force, or the unsupported reallocation of a vacant position.

4. All salary increases must be accomplished from within funds available.

H. Role Description Questionnaire (RDQ) General Policies

1. For all instances where the scoring factors section of the PRA is cited in the Mississippi State Personnel Board Policy and Procedures Manual and other policy memorandums or statements, for information technology classifications qualified under the Special Compensation Plan, the Role Description Questionnaire (RDQ) shall be used instead. Copies of the RDQ and related guidelines may be obtained from the Mississippi State Personnel Board.

2. Requests for all personnel actions for positions allocated to classifications under the Special Compensation Plan shall be accompanied by a completed and signed RDQ. Submission of the request in SPAHRS indicates agency endorsement.

ITCSCP22 10

Form ITSCP-0721

CERTIFICATION OF COMPLETION OF COMPETENCIES/EDUCATION

I acknowledge by my signature that I have completed all requirements as approved by my supervisor and appointing authority and have reviewed and understand the following guidelines:

a. Employees who complete the requirements may be eligible for a salary increase of up to six percent of the current salary.

b. An employee must have completed at least 120 contact hours of education/training (or 60 contact hours of education/training for the initial award of special compensation).

c. An employee may be awarded up to 12 months after the measurement period has been completed.

d. Education and contact hours shall count only for the current measurement period.

e. An employee must have maintained a “Successful” or higher rating for each competency of the individual’s Performance Review Assessment (PRS) during the measurement period. Information Technology Classifications Special Compensation Plan Increase Recipient Signature

Date

Increase Amount

$

Agency Head Signature

Date

ITSCP22 1

Attachment No. 1 to Information Technology Classifications Special Compensation Plan FY 2022

ITSCP22 2

Information Technology Professional Development Committee A. The Information Technology Professional Development Committee (ITPDC) is chartered by the Mississippi State Personnel Board (MSPB) as an advisory group for the field of information technology.

B. The purpose of the ITPDC is to make recommendations to MSPB on specific requested personnel actions within the field of information technology, as detailed below.

C. Composition of the ITPDC:

1. The Committee will consist of ten members.

2. In order to have a quorum for a meeting of the Committee, at least five members must be present.

3. The MSPB Executive Director, or MSPB staff member designated by the MSPB Executive Director, will be a permanent member of the ITPDC.

4. The ITS Executive Director, or an ITS staff member designated by the ITS Executive Director, will be a permanent member of the ITPDC.

5. The Chairmanship of the Committee will rotate on a fiscal year basis between the MSPB Executive Director or his/her designee and the ITS Executive Director or his/her designee.

The MSPB Executive Director will serve as chair in odd-numbered fiscal years; the ITS Executive Director will serve as chair in even-numbered fiscal years.

6. The other eight Committee members will be appointed by MSPB from a list of nominees submitted by the ITS Executive Director, as follows:

1. Two additional staff members from ITS;
2. Three Information Technology Directors from state agencies with large

information technology staffs (i.e. ten or more full-time positions for jobs in the

information technology career model);

c. Three additional information technology professionals from other state

agencies.

ITSCP22 3

D. Length of term:

1. Members are appointed for staggered six year terms.

2. If an individual on the committee leaves state employment, changes agencies, or moves to a non-information technology job within the agency, a new member will be appointed to fill the remainder of that individual’s unexpired term.

E. Scope of the Committee’s Review and Recommendations:

1. The Committee shall review and make recommendations for requests related to the level of information technology positions required within a state agency to effectively perform its technology functions, such as reallocations and requested new positions.
2. The Committee shall review and make recommendations concerning the appropriateness of educational requirements associated with the information technology job classifications. F. Meeting Schedule:
3. The Committee’s regular meeting will be held on the second Tuesday of each calendar month. MSPB will post the meeting date, time, and location each month via the Mississippi Public Meeting Notice Board.
4. If there are no pending requests for the Committee’s consideration, the Committee will not meet.
5. Requests to be considered by the Committee should be submitted to MSPB two weeks prior to the Committee meeting. Exemptions to this requirement will be reviewed on a case by case basis. All requirements must be complete to include a letter or SPAHRS screen print, organizational charts showing full reporting structure, and complete role description questionnaire in order to be considered by the Committee.
6. A special called meeting of the Committee may be called at any time at the request of the Chairperson of the Committee. Special called meetings will be posted via the Mississippi Public Meeting Notice Board as soon as the meeting is set.

ITSCP22

Attachment No. 2 to Information Technology Classifications Special Compensation Plan FY 2022

Competencies/Education Profile Form IT, Career Path Chart, and Training Schedules.

ITSCP22

Competencies/Education Profile Form Information Technology Special Compensation Plan Management Roles: Page #1

Employee Name: Date:

Classification Title: PIN:

Agency:

Rating Supervisor: PIN:

1 st Level Reviewer: PIN:

Competencies/Behavior Indicators Indicate for each checked competency: Please check those to be measured: (Y) Yes (N) No Value Added

Adaptability:

Coaching and Developing Others:

Decisive Insight:

Holding People Accountable:

Impact and Influence:

Information Gathering:

Vision Communication:

Leadership:

Measurement period for competencies to be accomplished: to: Signatures (at the beginning of the measurement period):

Employee

Date

Rating Supervisor

Date 1 st Level Reviewer

Date

ITSCP22

Competencies/Education Profile Form Information Technology Special Compensation Plan Management Roles: Page #2

Education/Training Contact Hours Indicate number of contact hours for each checked Course/Conference Title education/training item listed

TOTAL HOURS: SUMMARY for Submission For the measurement period from: to: this employee received a rating of Yes for value added on competencies and completed contact hours of education/training and therefore is eligible to receive an Increased Value Compensation as allowed by this agency for Fiscal Year .

Signatures (at the end of the measurement period):

Employee

Date

Rating Supervisor

Date 1 st Level Reviewer

Date

ITSCP22

Competencies/Education Profile Form Information Technology Special Compensation Plan Infrastructure Roles: Page #1

Employee Name: Date:

Classification Title: PIN:

Agency:

Rating Supervisor: PIN:

1 st Level Reviewer: PIN:

Competencies/Behavior Indicators Indicate for each checked competency: Please check those to be measured: (Y) Yes (N) No Value Added

Analytical Thinking/Attention to Detail: _

Business Perspective:

Communication:

Customer Advocate:

Facilitating Effective Relationships:

Willingness to Learn:

Fostering Innovation/Leading Change:

Project Performance:

Measurement period for competencies to be accomplished: to: Signatures (at the beginning of the measurement period):

Employee Date Rating Supervisor Date

ITSCP22

1 st Level Reviewer Date Competencies/Education Profile Form Information Technology Special Compensation Plan Infrastructure Roles: Page #2

Education/Training Contact Hours Indicate number of contact hours for each checked Course/Conference Title education/training item listed

TOTAL HOURS: SUMMARY for Submission For the measurement period from: to: this employee received a rating of Yes for value added on competencies and completed contact hours of education/training and therefore is eligible to receive an Increased Value Compensation as allowed by this agency for Fiscal Year .

Signatures (at the end of the measurement period):

Employee

Date

Rating Supervisor

Date 1 st Level Reviewer

Date

ITSCP22

Competencies/Education Profile Form Information Technology Special Compensation Plan Operations and Support Roles: Page #1

Employee Name: Date:

Classification Title: PIN:

Agency:

Rating Supervisor: PIN:

1 st Level Reviewer: PIN:

Competencies/Behavior Indicators Indicate for each checked competency: Please check those to be measured: (Y) Yes (N) No Value Added

Analytical Thinking/Attention to Detail:

Business Perspective:

Communication:

Customer Advocate:

Facilitating Effective Relationships:

Willingness to Learn:

Fostering Innovation:

Personal Accountability:

ITSCP22

Measurement period for competencies to be accomplished: to: Signatures (at the beginning of the measurement period):

Employee Date Rating Supervisor Date

1 st Level Reviewer Date Competencies/Education Profile Form Information Technology Special Compensation Plan Operations and Support Roles: Page #2

Education/Training Contact Hours Indicate number of contact hours for each checked Course/Conference Title education/training item listed

TOTAL HOURS: SUMMARY for Submission For the measurement period from: to: this employee received a rating of Yes for value added on competencies and completed contact hours of education/training and therefore is eligible to receive an Increased Value Compensation as allowed by this agency for Fiscal Year .

Signatures (at the end of the measurement period):

Employee Date Rating Supervisor Date

ITSCP22

1 st Level Reviewer Date

Competencies/Education Profile Form Information Technology Special Compensation Plan System Delivery Roles: Page #1

Employee Name: _ _ _ Date: _

Classification Title: _ PIN:_

Agency: _ _

Rating Supervisor: _ _ _ PIN:_

1 st Level Reviewer: _ _ _ PIN:_

Competencies/Behavior Indicators Indicate for each checked competency: Please check those to be measured: (Y) Yes (N) No Value Added

Analytical Thinking/Attention to Detail: _ _ _

Business Perspective:_ _ _ _

Communication:_ _ _ _

Customer Advocate:_ _ _ _ _ _

Facilitating Effective Relationships: _ _ _ _

Willingness to Learn: _ _ _

ITSCP22

Personal Accountability: _ _ _ _

Project Performance: _ _ _ _

Measurement period for competencies to be accomplished: to: _ Signatures (at the beginning of the measurement period):

_ _ Employee Date Rating Supervisor Date

_ 1 st Level Reviewer Date

Competencies/Education Profile Form Information Technology Special Compensation Plan System Delivery Roles: Page #2

Education/Training Contact Hours Indicate number of contact hours for each checked Course/Conference Title education/training item listed

TOTAL HOURS: SUMMARY for Submission For the measurement period from: to: this employee received a rating of Yes for value added on competencies and completed contact hours of education/training and therefore is eligible to receive an Increased Value Compensation as

ITSCP22

allowed by this agency for Fiscal Year . Signatures (at the end of the measurement period):

Employee

Date

Rating Supervisor

Date 1 st Level Reviewer

Date

State of Mississippi IT Career Path Chart MANAGEMENT INFRASTRUCTURE OPERATIONS and SUPPORT SYSTEMS DELIVERY

Systems Operations WAN Admin Network Engineering Systems Engineering Database Admin Technology Planning Systems Admin Systems Operations Commun Service Commun Support Program/ Analysis Business Analysis

J Chief Systems Information Officer 2594 $72,248.14

I Systems Manager III 2351 $66,990.50

Managing Consultant 2430 $66,990.50

H

Systems Manager II 2350 $61,309.81

Lead Network Specialist – ITS 2353 $64,408.34

Database Administrator – ITS 2380 $61,309.81 Technology Planning Coordinator 2354 $61,123.76

Lead Business Systems Analyst 2369 $61,309.81

G

Systems Manager I 2349 $56,932.59

Operations Manager II 2373 $56,932.59

Lead Network Specialist 2352 $59,809.70 Lead Systems Specialist 2370 $56,932.59

Database Admin. 2376 $56,932.59

Senior IT Planner 2382 $56,932.59

Lead Prog Analyst 2395 $56,932.59 Senior Business Systems Analyst 2367 $56,932.59

F

Operations Manager I 2372 $52,899.65

Senior Network Specialist 2401 $55,555.48 Senior Systems Specialist 2408 $52,899.65 Database Analyst II 2410 $52,899.65

IT Planner 2381 $52,899.65 Lead Systems Admin 2388 $52,899.65

Comm. Admin 2398 $52,899.65

Senior Prog Analyst 2394 $52,899.65 Business Systems Analyst II 2365 $52,899.65

E

Lead WAN Admin 2417 $42,399.05 Network Specialist II 2400 $45,423.76 Systems Specialist II 2403 $42,399.05 Database Analyst I 2409 $42,399.05

Senior Systems Admin 2385 $42,399.05

Senior Comm Analyst 2420 $42,399.05

Prog Analyst II 2397 $42,399.05 Business Systems Analyst I 2357 $42,399.05

D

WAN Admin II 2416 $35,307.66

Network Specialist I 2399 $38,414.24

Systems Specialist I 2402 $35,307.66

Systems Admin II 2392 $35,307.66 Lead Systems Operator 2424 $35,307.66

Comm Analyst II 2419 $35,307.66 Lead Comm. Tech 2427 $38,603.90

Prog Analyst I 2396 $35,307.66 Associate Business Systems Analyst 2356 $35,307.66

C

WAN Admin I 2414 $31,726.88

Systems Admin I 2389 $30,564.96 Senior Systems Operator 2423 $30,564.96 Comm Analyst I 2418 $31,726.88 Comm. Tech II 2426 $32,604.38 Associate Prog Analyst 2855 $30,564.96

B

Systems Operator II 2422 $26,628.47

Comm. Tech I 2425 $29,734.91

A

Systems Operator I 2421 $23,664.09

July 2019 with realignment included