Mississippi PERS Retirement Calculator
Estimate your Public Employees' Retirement System of Mississippi benefit. Pick your tier, enter your service and average compensation, and see the monthly allowance, when you can retire and what the COLA adds.
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Five tiers, set by hire date
PERS assigns a Retirement Tier from your hire and entry date. The tier sets your vesting period, your retirement eligibility and your formula. The rules below come from the PERS Member Handbook and, for Tier 5, the PERS Hybrid Retirement Plan Handbook.
- Tier 1: hired on or before June 30, 1992. Vests at 4 years.
- Tier 2: July 1, 1992 to June 30, 2007. Vests at 4 years.
- Tier 3: July 1, 2007 to June 30, 2011. Vests at 8 years.
- Tier 4: July 1, 2011 to Feb. 28, 2026. Vests at 8 years.
- Tier 5 (Hybrid Plan): members on or after March 1, 2026. Vests at 8 years.
The formula: 2%, then 2.5%
Tiers 1-3: 2% x years up to 25 + 2.5% x years over 25
Tier 4: 2% x years up to 30 + 2.5% x years over 30
Tier 5: 1% x years of service
The result is your service credit factor, which multiplies your average compensation. The handbook's example uses $31,500 and 30 years. Tiers 1-3: 25 x 2% + 5 x 2.5% = 62.5%, or $19,687.50 a year ($1,640.63 a month). Tier 4: 30 x 2% = 60%, or $18,900 ($1,575). Every year past 25 or 30 adds 2.5%. Tiers 1-3 also have a minimum of $10 a month for each year of service.
When you can retire
Tiers 1-3 can retire with 25 years at any age, or at 60 once vested. Tier 4 needs 30 years at any age, or 60 and vested. Tier 5 needs 30 years, or 62 and vested. None of the tiers has a reduced early retirement at 55. A Tier 2 member who leaves at 55 with 20 years waits until 60 to draw.
Tier 4 and Tier 5 have a catch. Retiring under 65 without 30 years means an actuarial reduction for each year short of 30 or each year under 65, whichever is fewer. PERS doesn't print a fixed percentage for it, so the calculator shows the unreduced amount and flags the reduction. Ask PERS for an estimate before you pick a date.
Average compensation
PERS averages your four highest years of salary, plus payment for up to 240 hours of leave. The years don't have to be consecutive. PERS compares your four highest fiscal years, four highest calendar years, a non-overlapping mix, and your last 48 months, and uses the best. Raises over 8% a year in the final 24 months are left out unless they come from a new position or a Legislature or State Personnel Board action.
The COLA
After one full fiscal year of benefits, Tiers 1-4 get a yearly COLA. For each full fiscal year retired before the year you turn 55 (Tiers 1-3) or 60 (Tier 4), it's 3% of your base benefit, simple. From that age on, 3% compounds. The handbook example: a $9,000 base benefit, retired at 52 and 16 years in, gets $810 + $4,216.50 = $5,026.50 under Tiers 1-3 and $2,160 + $2,401.20 = $4,561.20 under Tier 4. It's paid as a lump sum each December unless you choose 12 monthly installments.
Tier 5 has no automatic COLA. The Legislature can grant an extra benefit for a given year.
Taxes
Mississippi doesn't tax PERS retirement benefits. Another state you move to might.
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Frequently asked questions
What are the Mississippi PERS retirement tiers?
Your hire date sets your tier. Tier 1: hired on or before June 30, 1992. Tier 2: July 1, 1992 to June 30, 2007. Tier 3: July 1, 2007 to June 30, 2011. Tier 4: July 1, 2011 to Feb. 28, 2026. Tier 5, the Hybrid Plan: members on or after March 1, 2026. Tiers 1-2 vest at 4 years; Tiers 3-5 at 8.
How is a Mississippi PERS pension calculated?
Tiers 1-3: 2% of average compensation for each of the first 25 years, plus 2.5% for each year over 25. Tier 4: 2% for each of the first 30 years, plus 2.5% for each year over 30. The handbook example: $31,500 average compensation with 30 years is $19,687.50 a year for Tiers 1-3 (62.5%) and $18,900 for Tier 4 (60%). Tier 5 pays 1% per year of service plus a defined contribution account.
When can I retire from Mississippi PERS?
Tiers 1-3: with 25 years at any age, or at 60 once vested. Tier 4: with 30 years at any age, or at 60 once vested. Tier 5: with 30 years at any age, or at 62 once vested. There's no reduced early retirement at 55 for any tier.
Is there a reduction for retiring early?
Not for Tiers 1-3. Tier 4 and Tier 5 members who retire without 30 years and before 65 take an actuarial reduction for each year short of 30 years or under 65, whichever is fewer. PERS doesn't publish a fixed rate, so this calculator shows the unreduced amount and you should ask PERS for the reduced figure.
How does the Mississippi PERS COLA work?
After one full fiscal year of benefits, retirees get a COLA of 3% of the base benefit for each full fiscal year retired before the year they turn 55 (Tiers 1-3) or 60 (Tier 4), plus 3% compounded for each year after. The handbook example: a $9,000 base benefit, retired at 52 for 16 years, gets a $5,026.50 COLA under Tiers 1-3. Tier 5 has no automatic COLA.
What average compensation does PERS use?
Your four highest years of salary, which don't have to be consecutive, plus payment for up to 240 hours of leave. PERS checks fiscal years, calendar years, a non-overlapping mix of both, and the last 48 months, and uses the highest. Raises above 8% a year in the last 24 months are excluded unless they come from a new position or a Legislature or State Personnel Board action.
Is a PERS pension taxed by Mississippi?
No. PERS retirement benefits aren't subject to Mississippi income tax. If you live in another state, that state may tax them.