House Bill 41, introduced in Mississippi on January 10, 2025, aims to reform the state's retirement benefits for public employees, specifically addressing the annuity structure for retirees. The bill proposes a dual annuity system: a member's annuity based on their accumulated contributions and an employer's annuity calculated at two percent of the average compensation for each year of service up to 25 years, increasing to two and a half percent for years beyond that.

A significant provision of the bill includes an increase in annual retirement allowances for those who retired before July 1, 1991. These retirees would see a boost of one-eighth of one percent for each year of service beyond 25 years, capped at five-eighths of one percent. Additionally, the bill guarantees a minimum monthly benefit of $10 for each year of service, ensuring that long-term retirees receive adequate support.

Debate surrounding House Bill 41 has centered on its financial implications for the state budget and the sustainability of the retirement system. Critics argue that the proposed increases could strain public resources, while supporters contend that the adjustments are necessary to honor the service of long-time employees and to keep pace with inflation.

The bill's passage could have significant social implications, particularly for retired public workers who rely