Updated October 30, 2026. Quick answer: A Mississippi Highway Safety Patrol Retirement System member retiring on service picks a base option: Option 9 (paid unless another is selected), 1, 2, 3, 4, 4A or 4B. Option 4 pays a beneficiary 75 percent and Option 4A 50 percent of the member’s monthly amount. An eligible retiree can add a partial lump sum of 12, 24 or 36 months of the Maximum Benefit, which permanently reduces the monthly benefit and COLA and is final once cashed or deposited. A refund after leaving ends membership and service credit, and 20 percent is withheld from a direct payment.
More on public pension COLAs for 2027: the Mississippi Highway Patrol Retirement COLA for 2027 and the 3% formula.
What this page covers and what it does not
This page covers the Mississippi Highway Safety Patrol Retirement System (MHSPRS), which the Public Employees’ Retirement System of Mississippi (PERS) administers. The handbook says “Participation in MHSPRS is mandatory for sworn officers who are assigned to the Mississippi Highway Safety Patrol”. It is a separate system from the main PERS plan for state and school employees, covered at Mississippi PERS retirement decisions.
Three documents were read: the MHSPRS Member Handbook (64 pages, undated on its face), the PERS Annual Comprehensive Financial Report for the year ended June 30, 2025 (ACFR), and the MHSPRS GASB Statement No. 68 report for June 30, 2025. No standalone actuarial valuation for MHSPRS was among them, and disability retirement is outside this page.
On size, the sources give two counts on different bases. The ACFR membership table lists 508 active members (333 vested and 175 non-vested) and 1,402 total members for fiscal 2025. The GASB report says “The following table summarizes the membership of the System as of June 30, 2024, the Valuation Date” and lists 504 active members and 1,386 total members.
When a pension can start and how it is figured
The handbook says “You become vested when you accumulate five years of service as a contributing member”. Retirement eligibility is a table of conditions.
| Benefit | Condition the handbook lists |
|---|---|
| Reduced benefit | Age 45 with 20 years of creditable service |
| Unreduced benefit | Age 55 with 5 years of membership service, or any age with 25 years of creditable service |
| Partial lump sum (PLSO) eligibility | Age 55 with 5 years of membership service, or any age with 25 years of creditable service |
The benefit is a formula, not an account balance. The handbook says “To determine your Service Credit Factor, multiply your total years of creditable service and any fraction of a year by 2.5 percent. The maximum Service Credit Factor is 100 percent”. A retirement before age 55 with under 25 years of service is reduced by an actuarially determined factor. Average pay is the highest four consecutive years of salary plus payment of up to 240 hours of leave, divided by four. The handbook also sets a minimum monthly benefit by service: $250 for under 10 years, $300 for 10 to 14.75 years and $500 for 15 or more years.
A computed example from the handbook’s own sample, not a figure for any member: the sample member has an average compensation of $39,250 and 24 years of creditable service. Twenty-four years at 2.5 percent a year is a Service Credit Factor of 60 percent, so the unreduced annual benefit is $39,250 x 24 x 2.5 / 100, a computed $23,550.00, and the monthly Maximum Benefit is that divided by 12, a computed $1,962.50. The handbook’s worked example prints the same $1,962.50.
The election: seven base options and what each does for a survivor
The handbook says “MHSPRS provides seven base options from which to choose, plus, if eligible, a Partial Lump Sum Option (PLSO) to add to a base option”. Option 9 applies unless another option is selected.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Option 9, Maximum Benefit | The maximum monthly benefit for life | Spouse receives 50 percent for life; each dependent child 25 percent, up to 50 percent for two or more; any contributions and interest left are refunded to named beneficiaries |
| Option 1, Single Life Annuity | Reduced monthly benefit for life | No monthly benefit to anyone; any contributions and interest left at death are refunded to beneficiaries |
| Option 2, 100 percent Joint and Survivor | Reduced monthly benefit for life | One beneficiary (a person) receives the same monthly amount for life |
| Option 3, 100 percent Joint and Survivor, two beneficiaries | Reduced monthly benefit for life | Each of two beneficiaries receives half of the same monthly amount; if one dies the other receives 100 percent |
| Option 4, 75 percent Joint and Survivor | Reduced monthly benefit for life | One beneficiary receives 75 percent of the same monthly amount for life |
| Option 4A, 50 percent Joint and Survivor | Reduced monthly benefit for life | One beneficiary receives 50 percent of the same monthly amount for life |
| Option 4B, 10, 15 or 20 years certain | Reduced monthly benefit for life | Beneficiaries receive the same amount monthly for the rest of the chosen period, counted from the retirement date |
Option 1 pays only the member: the handbook says “Monthly benefit payments stop at your death” and “No monthly benefits are payable to any beneficiary”. The trade-off between a single-life and a joint choice is covered at single-life versus joint-and-survivor pension.
A computed example from an assumed $2,000 monthly amount, not a MHSPRS figure and not a reduction the system has computed: if the member were paid $2,000 a month after reduction, the beneficiary would receive 100 percent, a computed $2,000, under Option 2, 75 percent, a computed $1,500, under Option 4, and 50 percent, a computed $1,000, under Option 4A. The handbook does not print the reduction for each option; it says the retirement packet includes a personalized, audited Final Estimate of Benefits, and that estimate shows the real figures for the member’s own ages.
What is irrevocable and when to decide
The handbook’s comparison chart says “You may not change your option” for Options 3 and 4B. For Options 2, 4 and 4A the beneficiary is fixed with limited exceptions: “You may not change your beneficiary once selected unless he or she dies or unless you divorce and your spouse is named as beneficiary”.
Two provisions allow a limited change. Under the pop-up provision, a retiree on Option 2, 4 or 4A can return to the Maximum Retirement Allowance if the designated beneficiary dies first or the retiree divorces that beneficiary. Under the pop-down provision, a retiree on Option 9 or Option 1 can move to Option 2, 4 or 4A to cover a new spouse married after the original selection. The handbook also says “Form R, Application for Recalculation of Benefits, is available to change your benefit option selection, if eligible”. It does not say what makes a member eligible to use that form, so confirm it with PERS before relying on it.
A member who is eligible to retire can file an Advanced Application. The handbook says “Elections made on the Advanced Application do not restrict options available to you at retirement”. On timing, it says “you should begin the application process at least 90 days prior to your desired effective date”.
Federal law can reshape an election: “If a retiring member elects Option 2 or Option 3 and the designated beneficiary is not the member’s spouse, limits are imposed on the amount the beneficiary will be paid upon the death of the retired member”. The appendix says the limits are based on the age difference where “the beneficiary is more than 10 years younger than the retiree”, and that “IRC Section 401(a)(9) provisions apply to Option 2, Option 3, and Option 4B”.
The pages read do not describe a spousal consent form for choosing a non-joint option; they say only that the member is not required to name a spouse on the joint options. The general issue is covered at spousal consent to waive a joint and survivor annuity.
The partial lump sum option
The documents read describe no full lump sum retirement option, but a partial lump sum (PLSO) can be added to a base option. The handbook says “The PLSO is available to first-time retirees who are entering service retirement”, and “At retirement, you may elect a PLSO distribution in an amount equal to either 12 months, 24 months, or 36 months of your Maximum Benefit”. Option 1 is the exception: “PLSO is not available with this option, regardless of eligibility”.
The cost is permanent. The handbook says “By electing to receive a PLSO distribution, your monthly benefit and Cost-of-Living Adjustment (COLA) will be reduced for your lifetime”, and advises: “Seek assistance from a financial advisor and/or a tax professional to help you decide if selecting the PLSO is the right choice for you and your retirement needs”. For the lump sum versus monthly question in general see pension lump sum versus monthly annuity break-even.
On tax, “Generally, 20 percent of a PLSO distribution paid directly to a retiring MHSPRS member will be withheld for federal income taxes”. The finality rule: “All PLSO distributions are considered final once cashed or deposited”. The handbook also says part or all of the distribution may be rolled over to another eligible retirement account.
Appendix H prints the factors used for the reduced monthly benefit, effective July 1, 2016, and the handbook notes they are subject to periodic change. Selected rows:
| Age | 12 month factor | 24 month factor | 36 month factor |
|---|---|---|---|
| 55 | 0.9321 | 0.8642 | 0.7964 |
| 60 | 0.9255 | 0.8510 | 0.7765 |
The handbook does not print the formula that applies these factors, so this page does not turn them into a dollar reduction; the PERS calculator and the final estimate give that figure.
A computed example from the handbook’s sample Maximum Benefit of $1,962.50, not a figure for any member: a 12 month PLSO is 12 x $1,962.50, a computed $23,550.00, and a 36 month PLSO is 36 x $1,962.50, a computed $70,650.00. If the 36 month amount were paid directly to the retiree, 20 percent withholding would be a computed $14,130.00 (36 x $1,962.50 x 20 / 100). See 20% withholding on a pension lump sum.
Leaving before retirement: refund or leave the money
A member who stops working as a sworn officer has two paths. The handbook says “By not refunding, you become an inactive member; you retain your right to a lifetime retirement benefit when you meet eligibility requirements; and you retain your right to survivor benefits, if eligible”. See pension refund versus leaving it for the general trade-off.
The alternative is a refund. The handbook says “upon termination from employment, you may apply for a full refund of your contributions plus accumulated interest”, but “You cannot receive loans, partial refunds, or hardship withdrawals of your contributions”. The price is stated directly: “Refunding your contributions constitutes a forfeiture of your membership and benefits in MHSPRS as well as the accompanying service credit”. Employer money is not part of it: “Employer contributions are not credited to individual member accounts and are not payable to members through refunds”. The handbook says the PERS Board of Trustees sets the interest rate. The GASB report adds that “The interest rate on employee contributions 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”, and uses an assumed rate of 2.00%. The pages read do not print the percentage currently credited.
How a refund is taxed and rolled over
A refund is requested on Form 5, and a rollover needs a second form: “you must complete Form 5C, Rollover Distribution Election, to request a rollover of contributions”. The handbook states the tax consequence of a direct payment: “If you terminate employment and elect to receive a refund of contributions and interest paid directly to you, 20 percent (or more upon your request) will be withheld for federal income tax from the taxable portion of your refund”. It adds that “If you withdraw contributions before you reach age 50, the Internal Revenue Service may impose a 10 percent federal tax penalty on the distribution”. The handbook says Mississippi does not tax the retirement benefits, though another state may tax benefits paid to a resident there.
Buying service credit and repaying a refund
For someone who has taken a refund and later returns, the handbook says “Should you return to MHSPRS-covered service, you may repay the refund; however, your service credit will not be reinstated until you have become vested”. The cost: “The cost to repay a refund includes the gross amount of the refund plus non-refundable interest for each year beginning with the date of the refund, based upon rates established by the PERS Board of Trustees”. Appendix C lists a refund payback interest rate of 7.75% for fiscal years 2016 to the present.
A member with law enforcement service credit under PERS or a Municipal Retirement System may elect to buy that credit in MHSPRS, at an interest-based cost. Purchases end at retirement: “Service credit may not be purchased after you retire, nor may beneficiaries purchase service credit on behalf of a deceased member”. Whether a purchase is worth the cost is a break-even question; the pension buyback calculator sets that up.
Cost-of-living adjustments
Retirees and beneficiaries become eligible after at least one full state fiscal year of benefit payments. The handbook says “the COLA is equal to 3 percent of your annual base benefit for each full fiscal year of retirement prior to the year in which you reach age 60, plus 3 percent compounded for each fiscal year thereafter, beginning with the fiscal year in which you turn age 60”. How it is paid is a choice: “You may irrevocably elect to receive your COLA in 12 equal monthly installments”; otherwise “If you do not make that election, your COLA will be paid annually in one lump sum payment on or about December 15”.
A computed example from the handbook’s own sample, not a figure for any member: a member who retired at age 55, has been retired for 15 full fiscal years and has a $1,000 gross monthly base benefit has a computed annual base benefit of $12,000. Five years before age 60 at 3 percent is a simple 15 percent, a computed $1,800.00, and ten years from age 60 at 3 percent compounded is 34.39 percent, a computed $4,126.80. Added together, the computed COLA for that year is $5,926.80, the same as the handbook’s printed total.
If a member dies before retiring
The handbook says “If you die before becoming vested in MHSPRS, your designated beneficiaries will be eligible to receive a lump sum refund of your account balance”. For a vested member, “If you die before retirement but after becoming vested in MHSPRS and have not filed Form 16, Advanced Application, monthly benefits are payable to your spouse and/or dependent children under the provisions of Option 9, Maximum Benefit”.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of MHSPRS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that “If you do roll it over and want to defer tax on the entire taxable portion, you’ll have to add funds from other sources equal to the amount withheld”. The handbook describes the same 20 percent withholding on a refund or PLSO paid directly, with a rollover as the alternative. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan (within in the meaning of section 414(d)) provided that the qualified public safety employee has separated from service during or after the year in which they attained age 50 or 25 years of service under the plan, whichever is earlier”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the sources disagree
First, who may take a refund. The handbook says “upon termination from employment, you may apply for a full refund of your contributions plus accumulated interest”, while the ACFR describes the refund for “A member who terminates employment from the highway patrol and who is not eligible to receive monthly retirement benefits may request a full refund of his or her accumulated employee contributions plus interest”. Whether a member already eligible to retire may still take a refund is not settled by the pages read, so confirm it with PERS.
Second, the early-distribution age. The handbook warns about withdrawals before age 50, while the IRS list quoted above includes separation from service at or after age 55 and an exception for qualified public safety employees. Which applies depends on the member’s own facts, so confirm it with a tax preparer.
Third, member counts: 508 active (ACFR, fiscal 2025) against 504 (GASB report, June 30, 2024 valuation) are different dates, not a contradiction.
What this page could not settle
- The pages read do not state how much Option 1, 2, 3, 4, 4A or 4B reduces a particular member’s benefit; the system’s estimate decides.
- The pages read do not describe a full lump sum retirement option or a deferred retirement option plan (DROP).
- The pages read describe no spousal consent requirement for choosing a retirement option (the handbook does describe a surviving spouse waiving the monthly death benefit before retirement), and do not say who may use Form R to change an option after retirement.
- The pages read do not print the percentage currently credited to member accounts; the GASB report gives only the formula (money market rate, 1% minimum, 5% maximum) and a 2.00% assumption.
- No standalone actuarial valuation for MHSPRS was among the documents read.
- The handbook is undated on its face and a newer edition may exist; the statute was read only as these documents describe it.
Common mistakes
- Assuming a base option can be changed after retirement; only limited pop-up and pop-down changes are described.
- Taking a partial lump sum without weighing that it reduces the monthly benefit and the COLA for life and is final once cashed or deposited.
- Expecting the full refund check; 20 percent is withheld from the taxable portion of a direct payment unless it is rolled over.
- Treating a refund as pausing membership; the handbook says it forfeits membership, benefits and service credit.
Related on this site: Mississippi PERS retirement decisions, single-life versus joint-and-survivor pension, pension refund versus leaving it, pension lump sum versus monthly annuity break-even, 20% withholding on a pension lump sum and public pension retirement decisions by system.
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Answer againSources
- Public Employees’ Retirement System of Mississippi, Mississippi Highway Safety Patrol Retirement System Member Handbook (64 pages, undated on its face): https://www.pers.ms.gov/Content/Handbooks/MHSPRS_Member_Handbook.pdf
- Public Employees’ Retirement System of Mississippi, Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025: https://www.pers.ms.gov/sites/default/files/Content/CAFR/2025_ACFR.pdf
- CavMac Consulting for the Public Employees’ Retirement System of Mississippi, Mississippi Highway Safety Patrol Retirement System GASB Statement No. 68 Report prepared for June 30, 2025 financial reporting (dated November 3, 2025): https://www.pers.ms.gov/sites/default/files/Content/GASB%20Resource%20Materials/2025/HSPRS%20GASB%2068%20Report%20-%202025%20FINAL.pdf
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 30, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.