Chapters

00:00 Introduction

00:30 Question #1 (Big Announcement!)

01:06 Question #2

01:36 Question #3

02:04 Question #4

02:27 Question #5

03:16 Question #6

03:47 Question #7

05:01 Preview of Next Video

05:55 Disclaimer

Transcript

Hi everyone, I'm Ryan Earley, vested PERS member, former school finance officer, current financial planner, and host of the PERS Pro YouTube channel. Today, we are taking a one-day break from our new retirement series to answer seven questions we received from viewers with the answer to the first question containing a big announcement. Let's get started.

Our first question comes from Michelle who asks, Ryan, can I hire you to help me? I'm excited to announce that as of March 2nd, 2026, I am able to offer financial planning services, which includes retirement planning to Mississippi PERS members for a flat fee. I am currently accepting a limited number of new clients for the spring retirement season. I have capacity for six clients as of the date of this recording and next window of opportunity will be late summer 2026. To learn more and schedule an initial consultation, please visit perspro.ms.

Our second question comes from Christy in response to video number 16, new premiums, deductibles, and pharmacy rules for Mississippi State employees. how do employees find out if they are in the pharmacy benefit for the specialty drugs? The answer can be found on page 41 of the 2026 Blue Cross Blue Shield State Health Plan document, which states participants can contact CVS Specialty for more information on the specialty drug management program. I will include a link to the plan document in the show notes below.

Our third question comes from Mary in response to video number 16 again, who asks a similar question to Christy. How do employees contact the specialty drug benefit manager? The answer to this question can be found on page two of the 2026 Blue Cross Blue Shield state health plan document. The specialty pharmacy benefit manager is CVS specialty and they can be reached at 1-800-237-2767.

Our fourth question comes from Daniel in response to video number 16 again, who asks, is PERS going to become an employer benefit provider? No, my focus is on providing the best general personal finance education content for PERS members available anywhere on YouTube for free and providing the best personalized financial planning services to PERS members for a fee for those that need or desire it.

Our fifth question comes from Aldon in response to video number four, COLA. Are you eligible for simple or compound rate? Aldon asks, what do you mean in the video on compounding COLA when you say the fiscal year you turn 55? Answer is the state will use their fiscal year, which is a reminder is July 1st to June 30th when determining when you become eligible for compounded COLA. As an example, if you are a tier one through three member and turn 55 this May, your COLA would transition from simple to compound back in July of 2025. You would have noticed the change in your COLA either July 2025 if you elected monthly COLA or December 2025 if you elected the lump sum COLA.

Our sixth question comes from Emily who asks, do you have information to share on the Blue Cross Blue Shield Mississippi Medicare supplement the state offers when you turn 65. I will include a link in the show notes to a letter that PERS retirees receive once they approach age 65. This topic will also be incorporated into a future video when I discuss the health insurance options available to PERS retirees. This topic is currently scheduled to be in video number 56, although timing is always subject to change.

Our seventh and final question comes from Julie who asks, are PERS retirees supposed to pay Mississippi State income tax on their benefits if the 1099R is coded two in box seven? Why is it coded two and not seven? The answer, generally, retirement income, pensions, and annuities are not subject to Mississippi State income tax if the recipient has met the retirement plan requirements. However, early distributions are not considered retirement income and may be subject to Mississippi State income tax. IRS permits a couple different codes in box seven on 1099R. Code two is specifically for early distribution to a retiree younger than 59 and a half, but who has met the retirement plan requirements and is excepted from the 10% early distribution penalty. Code seven is for normal distribution to a retiree 59 and a half or older.

Keep in mind now that even though Code 2 and Code 7 distributions are not subject to the federal 10% early distribution penalty, nor are they subject to Mississippi State income taxes, these distributions are still subject to regular federal income taxes.

In our next video, we will resume our new retirement series by diving into strategy as we discuss what service retirement benefit option should a PERS Mississippi retiree select. Please make sure you subscribe so you don't miss this and other videos in our new retirement series. If you found this video helpful, can thank me by hitting the thumbs up button and sharing it with other PERS members. If you have a follow up question about PERS or anything else related to personal finance, please visit our website at perspro.ms and submit your question or topic for a future episode. Thank you for your valuable public service to the state of Mississippi. We'll see you next time.

Disclaimer. This video is for educational and informational purposes only. Neither the host nor this YouTube channel are officially affiliated with, endorsed by, or sponsored by the Public Employees Retirement System of Mississippi. Always consult a qualified professional for personal advice specific to your situation.