Bill Text: DE HB284 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Title 29 Of The Delware Code Relating To Pensions.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-22 - Introduced and Assigned to House Administration Committee in House [HB284 Detail]
Download: Delaware-2011-HB284-Draft.html
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SPONSOR: |
Rep. J. Johnson & Sen. Sorenson |
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Reps. Jaques, Keeley, Miro, Mitchell, Ramone, D. Short, D.P. Williams |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 284 |
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AN ACT TO AMEND TITLE 29 OF THE DELWARE CODE RELATING TO PENSIONS. |
Section 1.Amend §5201(b), Title 29 of the Delaware Code by making insertions as shown by underlining as follows:
§ 5201. Definitions.
(b) An "eligible pensioner" is one who is receiving or is eligible to receive retirement benefits in accordance with the state employees' pension plan under Chapters 53 and 55 of this title, the State Police pension plan under subchapter II and subchapter III of Chapter 83 of Title 11, the pension plan for state judiciary under Chapter 56 of this title or one who is receiving retirement or disability benefits under the teachers' retirement and disability plan (Chapter 39 of Title 14). This subsection shall not apply to members of boards or commissions. An "eligible pensioner" shall include those individuals who were employed by the county prothonotary offices immediately prior to October 1, 1987, and who chose to remain in their respective county pension plans and who would otherwise be eligible to receive retirement benefits in accordance with the state employees' pension plan under Chapters 53 and 55 of this title. An "eligible pensioner" shall include those employees who are receiving disability benefits pursuant to §5253(c) of this title.An Individual qualifying for a service pension under §5522(e) of this Title shall not be an "eligible pensioner".
Section 2.Amend §5501(d), Title 29 of the Delaware Code by making insertions as shown by underlining as follows:
§ 5501. Definitions.
(d) "Credited service" shall mean, for any individual:
(1) Service as an employee, excluding any period during which an employee is on an approved leave unless service credit for such period or periods of leave is purchased pursuant to paragraphs (9), (10), (11) and (12) of this subsection.
(2) Service before June, 1970, which was deemed to be "covered employment" as defined in this section as in effect on May 31, 1970.
(3) (i) Service for which credit was allowed pursuant to §5522 of this title as in effect on May 31, 1970, and service before June, 1970, for which credit was allowed pursuant to §5525(a) and (b) of this title as in effect on May 31, 1970; provided, however, that the provisions of §5525(c) of this title as in effect on May 31, 1970, shall remain in effect and (ii) service as a justice of the peace or as a constable for Justices of the Peace Courts, regardless of whether such person was paid by salary or by fee; provided, however, that if a justice of the peace or a constable for Justices of the Peace Courts is eligible for a pension under a county or municipal pension system of this State, any such service used to establish eligibility under such county or municipal pension system shall only be used in determining such an employee's eligibility under this chapter and shall not be used to determine the pension to be paid under this chapter to such an employee and (iii) service of any individual who became an employee under this chapter on July 1, 1969, in accordance with Volume 57, Laws of Delaware, Chapter 228, provided that, notwithstanding any provision of this chapter to the contrary, the pension of any such individual shall be the greater of the pension determined under this chapter or under the statutory pension system of the county in which any such individual was employed on June 30, 1969, as such statutory pension system was in effect on June 30, 1969, with the amount of any such pension to be determined by using any such individual's total period of service up to retirement.
(4) Who first became an employee before July 1, 1976, full-time active duty, not in excess of 5 years, in the armed services of the United States during time of war or national emergency, provided that the individual became an employee within 5 years after completion of the individual's tour of duty, or within 5 years after the completion of a course of professional or vocational training, if such course was begun within 5 years after completion of the individual's tour of duty, except that the aforesaid 5-year period within which the individual must become an employee shall not apply to full-time officers and members of the National Guard of the State who were active members of the State Employees' Pension Plan on June 1, 1970.
(5) Who first became an employee before July 1, 1976, service in professional educational employment, not in excess of 4 years, performed for another state, a municipality in another state, the federal government or an accredited private school or college anywhere in the world, provided that the individual who rendered such service (i) subsequently becomes an employee as a schoolteacher, professional administrative or supervisory employee or school nurse employed in a public school, the State Department of Education, the University of Delaware, Delaware State University or Delaware Technical and Community College and (ii) on or before the date of issuance of the first pension benefit check, pays into the fund an amount equal to 5% of the final average compensation for each month so credited except that individuals who retire prior to December 31, 1981, and who elect not to buy-in under subsection (e) of this section shall pay into the Fund an amount equal to 5% of the prior final average compensation for each month so credited; provided, however, that an individual shall not be permitted to obtain credited service under this section for out-of-state professional educational employment for any month during which such individual received a pension under this chapter.
(6) If an individual ceases to be an employee before the individual has acquired 5 years of credited service, the individual's service credits to the date of termination shall be cancelled but shall be restored if: (i) The cessation of employment is due to absence on account of military service, disability or approved leave, under such rules as the Board may adopt, and the individual again becomes an employee within 4 months after such absence, or (ii) the individual again becomes an employee within 4 months after such cessation of employment, or (iii) the individual subsequently acquires 5 years of credited service, or (iv) the individual has been involuntarily terminated for reason other than cause and is rehired within 2 years of the involuntary termination, or (v) the individual has joined another state pension plan which provides for a unified state service pension, or (vi) the individual is subsequently employed in the rehabilitation aide program of the Division of Vocational Rehabilitation of the Department of Labor, provided that if the individual has withdrawn such contributions the individual repays them with interest at a rate determined by the Board.
(7) Any former or present State Fire Marshal, Deputy State Fire Marshal or any successor or substitute therefor who shall have been a volunteer and uncompensated State Fire Marshal or Deputy State Fire Marshal shall receive full credit for the time served as such volunteer and uncompensated State Fire Marshal or Deputy State Fire Marshal in computing the number of years' service required to receive pension benefits provided in this chapter.
(8) Any employee may elect to purchase (i) up to 5 years of credited service for full-time active duty in the armed services of the United States, and/or (ii) up to 5 years of credited service for full-time employment performed for another state, a political subdivision of another state or other service with this State for which the employee will not receive pensionable credit in another Delaware state pension plan, a county or municipality of this State, the federal government or an accredited private school or college anywhere in the world, provided that the individual pays into the Fund, on or before the date of issuance of the individual's first benefit check, a single lump-sum payment equal to the actuarial value of the pension benefits to be derived from such service credits computed on the basis of actuarial assumptions approved by the Board and the individual's attained age and final average compensation. An individual may not accrue a total of more than 10 years of credited service under this paragraph and under paragraphs (4) and (5) of this subsection, and any credited service purchased under this paragraph shall not be used to determine eligibility for benefits under this chapter.
(9) Approved medical leave if the employee pays into the Fund prior to the issuance of his or her first pension check contributions determined by multiplying the rates in effect at the time of payment for employee contributions and state appropriations times the average of the 36 months of creditable compensation used to calculate the individual's pension benefit times the months or fractions thereof so credited. Any credited service purchased for medical leave shall not be used to determine eligibility for benefits under this chapter. For an employee who first became employed before July 1, 1976, the maximum amount of employee contributions and state appropriations used in this calculation will be 5% of the final average compensation.
(10) Approved sabbatical leave other than that provided by §1325 of Title 14 if the employee pays into the Fund, prior to the issuance of his or her first pension check, contributions equal to the sum of the employee contributions and state appropriations which would have been made to the Fund during such periods of sabbatical leave, with the amount of such contributions to be determined in accordance with rules and regulations adopted by the Board.
(11) Approved leave, other than approved medical and sabbatical leaves, provided that the employee pays into the Fund, prior to the issuance of his or her first pension check, contributions determined by multiplying the rates in effect at the time of payment for employee contributions and state appropriations times the average of the 36 months of creditable compensation used to calculate the individual's pension benefit times the months or fractions thereof so credited. Any credited service purchased under this paragraph shall not be used to determine eligibility for benefits under this chapter.
(12) Approved leave granted to an employee without pay, for a definite period of time, inclusive of approved extensions, authorized by the head of the employee's department or agency to assume an elected position in an employee organization as defined in Chapter 40 of Title 14, Chapter 13 of Title 19 and Chapter 16 of Title 19; provided, that within 15 days following the end of each month that such an employee is on such leave, the employee pays contributions equal to the sum of the employee contributions and employer appropriations that would have been made to the Fund based on the salary that would have been paid to the employee had the employee continued to be employed in the capacity in which such employee was employed immediately prior to such leave by an entity described in subsection (a)(1) of this section during such approved leave of absence.
(13) In determining an employee's eligibility under this chapter, such an employee shall be considered to have been in covered employment during a period of documented interruption not to exceed 2 months and not otherwise provided for in this chapter. The term "documented interruption" shall be defined in the rules and regulations of the Board of Pension Trustees but shall not include interruptions due to termination of employment. Time so credited under this subsection for eligibility shall not be used for the computation of retirement benefits. This subsection shall apply to employees who retire on or after January 1, 1979.
(14) "Equalized state service" shall mean:
a. Years of service as an "employee" as defined in §5551(5) of this title, multiplied by 3 0/30, provided that the individual is not accruing nor collecting benefits under Chapter 55A of this title. It shall not include service for which the employee has received the withdrawal benefit provided by §5580 of this title, or the refund provided by §5573(b) of this title, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
b. Years of service as an "employee" as defined in §8351(5) of Title 11, multiplied by 3 0/25, provided that the individual is not accruing or collecting benefits under subchapter III of Chapter 83 of Title 11. It shall not include service for which the employee has received the withdrawal benefit provided by §8374 of Title 11, or the refund provided by §8364(d) of Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
c. Years of service as an "employee" as defined in §8801(5) of Title 11, multiplied by 3 0/25, provided that the individual is not accruing or collecting benefits under Chapter 88 of Title 11. It shall not include service for which the employee has received the withdrawal benefit provided by §8824 of Title 11, or the refund provided by §8814(d) of Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
d. Years of service as a "member" as defined §5600 (5) of this title, provided that the individual is not accruing nor collecting benefits under Chapter 56 of this title. It shall not include service for which the employee has received the withdrawal benefit provided by §5612 (b) of this title, or the refund provided by §5608 (b) of this title, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(15) Service with the Delaware Solid Waste Authority as established by Chapter 64 of Title 7.
(16) Service prior to October 1, 1987, with the county Prothonotary offices provided that the individual was employed by that office immediately prior to October 1, 1987, and further provided that the past service cost associated with such service is paid into the Fund, by the respective counties, on a schedule approved by the Board of Pension Trustees.
(17) Service commencing July 1, 1995 with the Office of Disciplinary Counsel, which office is established by rule of the Delaware Supreme Court.
(18) Service with the county Register in Chancery Office, provided that the individual was employed by that office immediately prior to January 1, 2002, and further provided that the past service cost associated with said service is paid into the Fund by the respective counties or individuals on a schedule approved by the Board of Pension Trustees.
(19) Service with the Jobs for Delaware Graduates (JDG) program a teacher or administrator of the program; provided however, that the individual pays into the Fund, on or before the date of issuance of the individual's first benefit check, a single lump-sum payment equal to the actuarial value of the pension benefits to be derived from such service credit computed on the basis of actuarial assumptions approved by the Board and the individual's attained age and final average compensation. Any credited service purchased under this paragraph shall not be used to determine eligibility for benefits under this chapter. No individual shall purchase more than one year of state-credited service for each year of JDG service, up to a maximum total of 5 years provided further, that each year of state-credited service may not result in pension credit for another Delaware Pension Plan.
(20) Service for accrued sick leave, not in excess of 1 year, provided that the employee on or before the date of issuance of the first benefit check, pays into the fund an amount equal to 5% of the final average compensation for each month credited. Periods of accrued sick leave beyond 90 days or the balance for which the employee received payment may be converted to creditable service; 1 month of credited service will be granted for each 21 days of accrued sick leave beyond 90 days or the balance for which the employee received payment. Educational employees will receive credited service based on the contract establishing the employee's school year. Any credited service purchased under this paragraph shall not be used to determine eligibility for benefits under this chapter.
(21) Service for the period of time that an employee was collecting disability benefits pursuant to Chapter 52A of this title.
(22) Service as a per diem employee with the House or Senate of this State.
Section 3.Amend §5502(a), Title 29 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
§ 5502. Employment of pensioners.
(a) An individual shall not receive a service or disability pension under this chapter for any month during which the individual is an employee unless the individual is:
(1) An official elected by popular vote at a regular state election; or
(2) An official appointed by the Governor;
(3) A temporary, casual, seasonal or substitute employee as defined by the
Board of Pension Trustees., provided that the individual is not
accruing nor collecting benefits pursuant to §5522, §5525, or Chapter 55A of
this title;
(4) A substitute teacher employed by a school district in the State; or
(5) A temporary justice of the peace appointed pursuant to §9211 of Title 10.
Section 4.Amend §5522, Title 29 of the Delaware Code by making insertions as shown by underlining as follows:
§ 5522. Eligibility for service pension
(a) An employee shall become eligible to receive a service pension, beginning with the month after the employee has terminated employment, if:
(1) The employee has 5 years of credited service, exclusive of service credited under §5501(d)(4), (5) and (12) of this title, and has attained age 62;
(2) The employee has 15 years of credited service, exclusive of service credited under §5501(d)(4), (5) and (12) of this title, and has attained age 60;
(3) The employee has 30 years of credited service; or
(4) The employee has 25 years of credited service, exclusive of service credited under §5501(d)(4), (5) and (12) of this title, regardless of age.
(b) A former employee with a vested right to a service pension shall become eligible to receive such pension, computed in accordance with this chapter beginning with the first month after his or her attainment of:
(1) Age 60 if credited service is equal to or greater than 20 years and includes service prior to July 1, 1976; or
(2) Age 62 if credited service is equal to or greater than 5 years.
(c) An employee shall become eligible to receive a reduced service pension, beginning with the month after he or she has terminated employment, if he or she has 15 years of credited service, exclusive of service credited under § 5501(d)(4), (5) and (12) of this title, and has attained age 55; the amount of the service pension payable to such an employee shall be reduced by 2/10 percent of each month the employee is under age 60.
(d) The amount of the service pension payable to an employee who becomes eligible to receive a service pension pursuant to paragraph (4) of subsection (a) of this section shall be reduced by 2/10 percent for each month of credited service the employee has less than 30 years.
(e) Notwithstanding the provisions of this section to the contrary, a person shall become eligible to receive a service pension if he or she has 85 months of credited service as an employee of the House or Senate of this State and was employed as such for at least 20 consecutive years with the service as a per diem employee with the House or Senate of this State regardless of age.Eligibility for a service pension pursuant to this subsection shall begin the month after the expiration of the person's most recent contract for services with the agency or instrumentality of this State with whom the person has been employed.
Section 5.Amend §5525, Title 29 of the Delaware Code by making insertions as shown by underlining as follows:
§ 5525. Payment of service pension.
(a) Service pension payments shall be made to a retired employee or former employee for each month beginning with the month in which the retired employee or former employee becomes eligible to receive such pension and ending with the month in which the retired employee or former employee dies.
(b) Service pension payments shall be made to a retired per diem employee of the House or Senate of this State for each month beginning with the month in which the person becomes eligible to receive such pension and ending with the month in which the person dies; provided, however, that on or before the date of issuance of the first pension benefit check, any recipient thereof who was employed as a per diem employee prior to July 1, 2007 shall pay into the fund an amount equal to 5% of the final average compensation for each month of service credited pursuant to §5522(e) of this title.
Section 6.Amend §5527, Title 29 of the Delaware Code by making insertions as shown by underlining as follows:
§ 5527. Amount of ordinary service or disability pension
(a) The amount of the monthly service or disability pension payable to an employee or former employee shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1997, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996. The amount payable to a participant who does not make the additional contribution provided in §5501(h) of this title for years of credited service before 1977 shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service between January 1, 1977, and December 31, 1996, plus 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1977, provided that the maximum amount based on the service before 1977 is $1,000, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996.
(b) In the case of an employee or former employee whose credited service under § 5501(d)(1), (2) and (3) of this title includes service before June 1970, the minimum amount payable shall be:
(1) If he or she has 15 years of such credited service, the lesser of $150 or his or her final average compensation; or
(2) If he or she does not have 15 years of such credited service, the minimum amount payable under subsection (c) of this section, subject to the limitation specified in subsection (c) of this section.
(c) In the case of an employee or former employee whose credited service under § 5501(d)(1), (2) and (3) of this title does not include service before June 1970, but does include service prior to July 1, 1976, the minimum amount payable shall be $5 multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service, but not more than 30 such years.
(d)(1) Notwithstanding provisions of this chapter to the contrary, an elected official shall receive a pension computed in accordance with this subsection. The service or disability pension payable to the elected official and the survivor's pension payable to the eligible survivor of such individuals shall be computed on the basis of compensation to the elected official as an elected official irrespective of other credited service, with contribution to be determined based upon compensation as an elected official. The minimum amount of pension payable to an elected member of the General Assembly or a retired elected member of the General Assembly shall be computed by multiplying his or her years of service as an elected member of the General Assembly times the highest rate of payment being paid to any retired member of the General Assembly, such rate to be computed by dividing the monthly pension being paid to such retired member by his or her years of service as an elected member of the General Assembly. An elected official shall be eligible to receive a pension beginning with the first month after the attainment of age 60, provided that he or she shall have served at least 5 years at the time of his or her termination of service as an elected official, or beginning with the first month after attainment of age 55, provided that he or she shall have served at least 10 years at the time of his or her termination of service as an elected official. Any pension for credited service other than as an elected official shall be determined under the remainder of this chapter as a separate pension.
(2)a. The minimum amount of pension payable to a statewide elected official shall be computed by multiplying his or her years of service as an elected official times the highest rate of payment being paid to any retired member of the General Assembly. The employee must elect to receive the minimum pension provided for in this subsection prior to the issuance of his or her 1st benefit check. This election must be made in a form approved by the Board and shall be irrevocable.
b. A statewide elected official receiving a service or disability pension which was effective prior to July 1, 1996, may elect to receive the minimum provisions of subsection (a) of this section. This election must be made in a form approved by the Board, filed prior to July 31, 1996, to be effective August 1, 1995, for statewide elected officials receiving a service or disability pension on July 1, 1996.
(e) Any section of this chapter to the contrary notwithstanding, the amount of the monthly service or disability pension payable to any regular part-time employee who is not employed on a full-time or annual basis, as the term full-time or annual basis is defined in rules and regulations adopted by the Board, shall be determined in accordance with subsection (a) of this section, provided that no minimum amount shall be payable to any such regular part-time employee. However, for any public school cafeteria employee who entered state service on or before July 1, 1971, and who accrues 15 years of credited service as an employee under §5501(d)(1) of this title by the date of the employee's retirement eligibility, shall receive, beginning at age 62, a minimum amount which, when combined with the social security benefit, shall not be less than $200 per month.
(f) Notwithstanding provisions of this chapter to the contrary, the minimum amount of monthly service, including vested, or disability pension payable to any full-time or regular part-time employee shall be $1 multiplied by each year of service taken to the nearest 1/12 of a year. In the case of a regular part-time cafeteria worker also eligible for a minimum pension under subsection (e) of this section, the minimum shall be the greater of subsection (e) or this subsection. The minimums specified in this subsection shall not apply to members of boards or commissions.
(g)(1) Notwithstanding provisions of this section to the contrary, an employee may elect to have his or her service or disability pension, computed under this section, reduced by 3% thereby providing a survivor's pension equal to 75% of such reduced amount to the employee's eligible survivor or survivors at the time of the employee's death. This election must be made in a form approved by the Board, filed prior to the issuance of his or her first benefit check and shall be irrevocable.
(2) Notwithstanding the provisions of this section to the contrary, an individual receiving a service or disability pension which was effective prior to July 1, 1989, or an individual with a vested right to a service pension may elect to have his or her service or disability pension reduced by 3%, thereby providing a survivor's pension equal to 75% of such reduced amount to his or her eligible survivor or survivors at the time of his or her death. This election must be made in a form approved by the Board, filed prior to December 15, 1989, to be effective January 1, 1990, for individuals receiving a service or disability pension on July 1, 1989, or, in the case of an individual with a vested right to a service pension, filed prior to the issuance of his or her first pension check.
(h) Notwithstanding the provisions of this section to the contrary, the service pension payable to an individual qualifying under §5522(e) of this Title shall be computed as the greater of 50% of the individual's final average compensation or as pursuant to subsection (a) of this section.
SYNOPSIS
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