The Mississippi Department of Corrections is covered under the Public Employees Retirement System, based on 25 years of active service. An individual is fully vested after eight years of service. The employee contributes 7.25% of their salary and the state contributes 11.85% with the interest rate set by the Board of Trustees.
Deferred Compensation: An optional supplemental retirement savings plan regulated under Section 457 of the Internal Revenue Code. It is also a tax-deferred savings plan with various investment options:
- Current income taxes are reduced.
- Contributions and any interest/earnings are exempt from federal or state taxes until withdrawal, normally at retirement when a person may be in a lower tax bracket.