State Employees’ Pension Plan

Del. Code tit. 29, ch. 55

in effect

Del. Code tit. 29, § 5501 Definitions.

(a) “Approved medical leave” means a leave of absence from covered state employment, without pay, for a definite period of time, authorized by the head of the employee’s department or agency, and necessitated by the employee’s mental and/or physical condition. Approved medical leaves shall not exceed 1 year unless extended by the Board of Pension Trustees. (b) “Board” means the Board of Pension Trustees established by § 8308 of this title. (c) “Compensation” means for any individual all salary, wages and fees, including overtime payments and special payments for extra duties, payable to such individual for service credited under paragraphs (e)(1), (2) and (3) of this section and the value of any maintenance provided for the individual as part of such payments. For any post-2011 employee “compensation” means all salary, wages and fees, including special payments for extra duties, excluding overtime payments payable to such individual for service credited under paragraphs (e)(1), (2) and (3) of this section and the value of any maintenance provided for the individual as part of such payments. For those individuals who purchase credited service under paragraph (e)(12) of this section “compensation” shall include the salary, wages and fees that such individuals would have received had they remained in such employment for the term of the approved leave. (d) “Correction officer” shall mean an employee employed by the Department of Correction in a position responsible for supervising correctional officers in secured facilities and/or classified with a correctional officer job title. (e) “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 (e)(9), (10), (11) and (12) of this section. (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 (f) 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 (e)(4) and (5) of this section, 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 the employee’s 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 the employee’s 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 the employee’s 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 paragraph (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 30/30, 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 30/25, 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 30/25, 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 in § 5600 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 1 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. (f) “Employee” shall mean an individual who: (1) Is employed by: a. The State, including elected or appointed officials; or b. The State Department of Education, a school district which is part of the state school system, the University of Delaware, Delaware State University or Delaware Technical and Community College; or c. A state agency that is supported wholly or in part by funds granted to the State by the federal government; (2) Is employed on a full-time or annual basis or on a regular part-time basis, as the terms “full-time or annual basis” and “regular part-time basis” are defined in rules and regulations adopted by the Board, except that an individual whose initial appointment to a gubernatorial appointed board, council or commission occurs after June 30, 2013, shall not be considered employed on a regular part-time basis; (3) Receives compensation wholly or in part directly from the State Treasury or from the Treasury through an agency within the State that is wholly or in part supported by the State; (4) a. Is not a member of any other state or municipal retirement system which is financed in whole or in part by the State unless the state pension plan provides for a unified state service pension and the member is not concurrently accruing or collecting benefits under that system; and b. Is not a member of a county pension plan with respect to which the employee is accruing credited service and to which the employee and/or the State is making contributions on account of employment with the State; (5) A person who meets the requirements of this subsection shall be regarded as an “employee” during the period such person is on an approved leave and, for school personnel who do not work on 12-month basis, during the period between the expiration of such leave and the beginning of the next regular school term. (g) (1) “Final average compensation” shall mean 1 / 36 of the compensation paid to an employee during any period of 36 consecutive months or any 36 months comprised of 3 periods of 12 consecutive months in that employee’s years of service credited under paragraphs (e)(1), (2), and (3) of this section in which that employee’s compensation was highest, or the average monthly compensation paid to an employee during the period of that employee’s service credited under paragraphs (e)(1), (2), and (3) of this section if such period is less than 36 months. (2) The compensation used in calculating “final average compensation” under paragraph (g)(1) of this section includes the dollar amount of the following awards, granted during an employee’s employment: a. Teachers who receive awards under Chapter 89 of Title 14 for teacher of the year program. b. Merit System employees who receive awards under the “Delaware Award for Excellence and Commitment in State Service” program. c. Educational support professionals who receive awards under Chapter 89D of Title 14, the educational support professional of the year program. (3) Employees that receive a final lagged payment for credited service as defined under § 2712 of this title shall have added to their creditable compensation the amount of lag pay that is received in determining the final average compensation to be used in the computation of their pension. (h) The clause “for which an individual is eligible under the federal Social Security Act” shall mean the old age insurance benefit or the disability insurance benefit for which an individual is or will be eligible by virtue of age and the individual’s wage credits under the federal Social Security Act [42 U.S.C. § 301 et seq.], based on the individual’s final average compensation and the provisions of the federal Social Security Act [42 U.S.C. § 301 et seq.] in effect when the individual ceased to be an employee under this chapter and computed in accordance with rules and regulations approved by the Board, regardless of any other factors such as, without limitation, whether the employee has made application for social security benefits or is subsequently employed. (i) “Post-2011 employee” shall mean an employee, as defined in subsection (f) of this section, who is first employed by the State on or after January 1, 2012. (j) “Prior final average compensation” shall mean 1 / 36 of the compensation paid to an employee during any period of 36 consecutive months or any 36 months comprised of 3 periods of 12 consecutive months in that employee’s years of service credited under paragraphs (e)(1) through (3) of this section in which that employee’s compensation was highest, or the average monthly compensation paid to an employee during the period of that employee’s service credited under paragraphs (e)(1) through (3) of this section if such period is less than 36 months, except that compensation in excess of $24,000 during any calendar year or the sum of any partial calendar years in such period of 36 months shall be excluded and total compensation for such period of 36 months shall not exceed $72,000; provided however, that for an employee who, prior to the issuance of that employee’s first pension check, pays to the Fund contributions determined in accordance with the rules and regulations approved by the Board equal to the sum of: (1) The additional employee contributions which would have been made to the Fund if the maximum limit of $24,000 per annum for computing employee contributions had not been applied; (2) An amount determined by applying the rate of state appropriations to the Fund in effect on December 31, 1976, to that employee’s earnings from January 1, 1966, to December 31, 1976, in excess of $24,000 per annum; and (3) Interest compounded at the rate of 6% per annum on the sum of paragraphs (j)(1) and (2) of this section from the end of the calendar year accrued to the date paid. “Prior final average compensation” shall then mean “final average compensation” as defined in subsection (f) of this section. (k) “Specified peace officer” shall mean: (1) Probation and parole officers and classifications in the Probation and Parole occupational series up to and including the Probation and Parole Director employed by the Department of Correction; (2) Capitol police officers; (3) Department of Natural Resources police officers; (4) University of Delaware Police; (5) Delaware State University Police; (6) State Fire Marshal officers; (7) Division of Alcohol and Tobacco Enforcement agents and classifications in the Alcohol and Tobacco Enforcement Agents occupational series up to and including the Director of Alcohol and Tobacco Enforcement; (8) Delaware State Police Drug Diversion Unit agents; (9) Justice of the Peace Court constables; and (10) juvenile probation and parole officers and juvenile probation and parole officer supervisors employed by the Department of Services for Children, Youth, and Their Families. ( l ) “911 operator” means a call taker, dispatcher, manager, supervisor, or chief employed by the Delaware State Police or Delaware Capitol Police and responsible for the answering of 911 emergency line calls or dispatching law-enforcement personnel and equipment, including personnel assigned to the Delaware State Police Headquarters Communication Center. Specific job titles included in the definition of “911 operator” are Manager, State Police Telecommunications; Assistant Manager, State Police Telecommunications; Emergency Communications Center Manager; Headquarters Communications Center Manager; Telecommunications Shift Supervisor; Senior Telecommunications Specialist (ERC); and Telecommunications Specialist (PSAP and HQ Communications). (m) [Repealed.]

Del. Code tit. 29, § 5502 Employment of pensioners.

(a) An individual may not receive a service or disability pension under this chapter for any month during which the individual is an employee unless the individual is any of the following and eligible under paragraph (d)(1) of this section: (1) An official elected by popular vote at a regular state election. (2) An official appointed by the Governor. (3) A temporary, casual, seasonal, or substitute employee as defined by the Board of Pension Trustees. (4) A substitute teacher employed by a school district or charter school in this State. (5) A temporary justice of the peace appointed pursuant to § 9211 of Title 10. (6) A per diem employee of the General Assembly. (b) Nothing in this section shall prevent the State from employing an individual receiving a pension under this chapter as a registration or election official or as a juror. An individual so employed may receive the compensation provided by law without deduction from the individual’s pension. (c) Nothing in this section shall prevent an employee 55 years of age or older from receiving an elected official service or disability pension. (d) (1) If an individual is less than 59½ years old, the individual is required to have a a bona fide 3-month separation of service from that individual’s effective date of retirement before any employment under subsection (a) of this section. (2) During calendar years 2023 and 2024, earnings from employment under paragraph (a)(3) or (a)(4) of this section are subject to an annual earnings limit of $50,000. If an individual exceeded this allowable earned income, the individual’s state pension benefit from this chapter shall be reduced, with a $1.00 deduction for every $2.00 earned over the annual earnings limit. The deduction will begin in July of the year following the calendar year for which the earnings are reported, in a manner as determined by the Board. (e) Any individual who contracts with an employer participating in the plan or represents any private enterprise that has a contract with an employer participating in the plan must have a 6-month separation of service from such individual's effective date of retirement if the individual is under age 65. The employer shall report to the Board, in a form prescribed by the Board, a certification of the worker’s status for the individual. The certification will be used for a determination of the individual meeting the definition of employee under this chapter.

Del. Code tit. 29, § 5503 Attachment and assignment of benefits.

Except for orders of the Delaware Family Court for a sum certain payable on a periodic basis or for benefits payable under § 5546 of this title, the benefits provided by this chapter shall not be subject to attachment or execution and shall be payable only to the beneficiary designated and shall not be subject to assignment or transfer.

Del. Code tit. 29, § 5504 Waiver of benefits.

Any individual entitled to any benefits under this chapter may decline to accept all or any part of such benefits by a waiver signed and filed with the Board. Such waiver may be revoked in writing at any time, but no payment of the benefits waived shall be made covering the period during which such waiver was in effect.

Del. Code tit. 29, § 5505 University of Delaware.

Any sections of this chapter to the contrary notwithstanding: (1) The term “employee” as used in this chapter shall exclude all designated faculty and designated professional staff of the University of Delaware who are first employed by the University after June 1, 1970. (2) Faculty and designated professional staff of the University of Delaware who, as of January 1, 1971, have less than 5 years of credited service, exclusive of service credited under § 5501(e)(4) or (5) of this title, and are in a position covered by the Teachers’ Insurance and Annuity Association Retirement Plan shall cease to be employees under this chapter on January 1, 1971, and shall have their accumulated contributions with interest refunded upon the filing of an application on or after January 1, 1971, in a form prescribed by the Board. (3) Faculty and designated professional staff of the University of Delaware who, as of January 1, 1971, have had 5 or more years of credited service, exclusive of service credited under § 5501(e)(4) or (5) of this title, and are in a position covered by the Teachers’ Insurance and Annuity Association Retirement Plan may, effective January 1, 1971, elect to either: a. Continue to be an employee under this chapter and continue to make the contributions required under § 5543 of this title; or b. Cease to be an employee under this chapter and leave their accumulated contributions in the State Employees’ Retirement Fund; or c. Cease to be an employee under this chapter and have their accumulated contributions with interest refunded upon the filing of an application on or after January 1, 1971, in a form prescribed by the Board. (4) Faculty and designated professional staff who leave their accumulated contributions in the State Employees’ Retirement Fund in accordance with paragraph (3)b. of this section shall become eligible to receive a service pension or acquire a vested right to a service pension in accordance with §§ 5522 and 5523 of this title, respectively, provided that their age and total years of credited service under this chapter plus their years of service with the University of Delaware after January 1, 1971, meet the requirements of § 5522 or § 5523 of this title. The amount of the monthly service pension payable to any such faculty or designated professional staff shall be one sixtieth of their final average compensation as of January 1, 1971, multiplied by the number of years, taken to the nearest twelfth of a year, in the period of credited service under this chapter, subject to a maximum of $1,000. (5) Faculty and designated professional staff who leave their accumulated contributions in the State Employees’ Retirement Fund in accordance with paragraph (3)b. of this section shall become eligible to receive a disability pension or, in the event of death before commencement of service or disability pension payments, a monthly survivor’s pension shall be payable to their eligible survivor or survivors only if they are eligible to receive a service pension under § 5522(a)(2) or (3) of this title as of January 1, 1971. All other such faculty and designated professional staff shall not become eligible to receive a disability pension or, in the event of death before commencement of service pension payments, a monthly survivor’s pension shall not be payable to their eligible survivor or survivors. In the event any such individual dies after commencement of service or disability pension payments, § 5528(b) of this title shall apply, provided that such individual had 15 years of credited service under this chapter, exclusive of service credited under § 5501(e)(4) or (5) of this title, as of January 1, 1971. (6) By October 1 of each year beginning with 1970, the University of Delaware shall submit to the Board a list of the faculty and designated professional staff who are not employees under this chapter and are covered by the Teachers’ Insurance and Annuity Association Retirement Plan, showing the estimated salaries of such faculty and professional staff for the fiscal year beginning July 1 of the following year. The Board shall apply the normal rate of contribution determined in accordance with § 5544 of this title to the total estimated salaries of such faculty and professional staff and report the resulting amount to the Director of the Office of Management and Budget of the State by November 1 of each year beginning with 1970. The State shall appropriate such amount from the General Fund to the University of Delaware each fiscal year, payments of which shall be made in equal monthly installments beginning with the fiscal year beginning July 1, 1971. (7) a. The term “employee” as used in this chapter shall exclude all professional staff of the University of Delaware who are first employed by the University after June 1, 1974. All professional staff, who as of January 1, 1975, have less than 5 years of credited service, exclusive of service credited under § 5501(e)(4) or (5) of this title, shall cease to be employees under this chapter on January 1, 1975, and shall have their accumulated contributions with interest refunded upon the filing of an application in a form prescribed by the Board. b. All professional staff who, as of January 1, 1975, have 5 or more years of credited service, exclusive of service credited under § 5501(e)(4) or (5) of this title, and were not previously permitted to make an election in accordance with paragraph (3) of this section shall, effective January 1, 1975, elect 1 of the 3 options in paragraph (3) of this section; paragraphs (4) and (5) of this section shall apply to any such professional staff who elect to leave their accumulated contributions in the State Employees’ Retirement Fund in accordance with paragraph (3)b. of this section, except that January 1, 1975, shall be substituted for January 1, 1971, wherever the latter appears in paragraphs (3) and (4) of this section. (8) Notwithstanding any other provisions of this section to the contrary, hourly and salaried staff employees who become professional employees may elect to continue to be employees under this chapter and make contributions into and be covered by the State Employees’ Retirement Fund.

Del. Code tit. 29, § 5519 Disability insurance option.

(a) An employee who, as of January 1, 2006, has fewer than 5 years of credited service, will be ineligible for disability pension coverage under § 5524 of this title and shall be covered under the Disability Insurance Program under Chapter 52A of this title. (b) An employee who, as of January 1, 2006, has 5 or more years of credited service may elect either: (1) To continue coverage under the disability pension provisions of § 5524 of this title; or, (2) To elect coverage under the Disability Insurance Program provided in Chapter 52A of this title. This election must be made in a form approved by the Board, and filed prior to December 15, 2005, in the State Pension Office, and shall be effective January 1, 2006. All elections made pursuant to this subsection shall be irrevocable. Members of the Delaware National Guard or members of the U.S. Armed Forces Reserves who are serving on active duty during the period of election required pursuant to this subsection shall elect a coverage option within 45 days of discharge from active duty. (c) If it is determined by the State Pension Administrator that an employee is or was unable to make this election in a timely manner due to circumstances beyond the employee’s control, the Administrator, in the Administrator’s sole and absolute discretion, may extend the time period for making the election beyond the periods specified in this section. (d) An employee who elected disability pension coverage pursuant to subsection (b) of this section, may elect to either: continue coverage under the disability pension provisions under § 5524 of this title; or elect to be covered under the Disability Insurance Program under Chapter 52A of this title. This election must be made in a form approved by the Committee, filed prior to December 15, 2006, to be effective January 1, 2007, and shall be irrevocable; however, if the date of disability is prior to January 1, 2007, coverage in the Disability Insurance Program will commence on the first day the employee returns to work after January 1, 2007. The employee will be required to submit evidence of insurability satisfactory to the carrier. All members of the Delaware National Guard or members of the U.S. Armed Forces Reserves who have been called to active duty must make their election within 45 days of the date they are no longer on active duty.

Del. Code tit. 29, § 5520 Retirement option.

When an employee applies for a pension, he or she shall choose either a unified pension or an ordinary pension.

Del. Code tit. 29, § 5521 Amount of unified service, disability or survivor pension.

The amount of the unified pension payable to an employee, former employee or survivor shall be the sum of: (1) The amount computed according to this chapter exclusive of service credited under § 5501(e)(14) of this title; plus (2) The sum of the amounts computed, based on credited service as an employee, according to subchapter II of Chapter 55A of this title; subchapter III of Chapter 83 of Title 11; and Chapter 88 of Title 11; and, the amount computed based on credited service as a member, according to Chapter 56 of this title.

Del. Code tit. 29, § 5522 Eligibility for service pension.

(a) An employee is eligible to receive a service pension, beginning with the month after the employee has terminated employment, if any of the following apply: (1) The employee has 5 years of credited service, exclusive of service credited under § 5501(e)(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(e)(4), (5) and (12) of this title, and has attained age 60. (3) The employee has 30 years of credited service. (4) The employee has 25 years of credited service, exclusive of service credited under § 5501(e)(4), (5) and (12) of this title, regardless of age. (5) The employee has 25 years of credited service, exclusive of service credited under § 5501(e)(4), (5) and (12) of this title, regardless of age, and is a Department of Correction employee, a Department of Services for Children, Youth, and Their Families employee, or a specified peace officer. The employee must have 20 years of credited service as a correction officer or specified peace officer. (6) The employee has 25 years of credited service, exclusive of service credited under § 5501(e)(4), (5), and (12) of this title, regardless of age, and is a 911 operator. The employee must have 25 years of credit service as a 911 operator. (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 the former employee’s 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 the employee has terminated employment, if the employee has 15 years of credited service, exclusive of service credited under § 5501(e)(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 (a)(4) of this section shall be reduced by 2 / 10 percent for each month of credited service the employee has less than 30 years. (e) A post-2011 employee shall become eligible to receive a service pension, beginning with the month after the employee has terminated employment, if: (1) The employee has 10 years of credited service, exclusive of service credited under § 5501(e)(12) of this title, and has attained age 65; (2) The employee has 20 years of credited service, exclusive of service credited under § 5501(e)(12) of this title, and has attained age 60; or (3) The employee has 30 years of credited service. (f) A post-2011 employee shall become eligible to receive a reduced service pension, beginning with the month after the employee has terminated employment, if: (1) The employee has 15 years of credited service, exclusive of service credited under § 5501(e)(12) of this title, and has attained age 55; the amount of the service pension payable to such an employee shall be reduced by 4 / 10 percent of each month the employee is under age 60; or (2) The employee has 25 years of credited service, exclusive of service credited under § 5501(e)(12) of this title, regardless of age; the amount of the service pension payable to such an employee shall be reduced by 4 / 10 percent of each month the employee has less than 30 years. (g) A former post-2011 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 the former post-2011 employee’s attainment of age 65 if credited service is equal to or greater than 10 years.

Del. Code tit. 29, § 5523 Vested right to service pension.

(a) An employee who is not a post-2011 employee and who has 5 years of credited service exclusive of service under § 5501(e)(4), (5) and (12) of this title shall have a vested right to a pension. A post-2011 employee who has 10 years of credited service exclusive of service under § 5501(d)(12) of this title shall have a vested right to a pension. (b) A former employee’s vested right shall be forfeited upon an application for a refund of the former employee’s accumulated contributions.

Del. Code tit. 29, § 5524 Eligibility for disability pension.

(a) An employee who has 5 years of credited service, exclusive of service credited under § 5501(e)(4), (5) and (12) of this title, and develops a disability shall become eligible to receive a disability pension beginning with the fourth month following the inception of his or her disability. Such individual shall cease to be eligible at the end of the month in which he or she recovers from disability and is again offered employment as an employee, if such recovery and offer of employment occurs before his or her attainment of age 60. (b) Such an employee shall be kept on the active payroll and receive credited service from the inception of the employee’s disability to the end of the third month following and shall receive payments at the same rate of compensation the employee received before the employee developed a disability. (c) An employee shall be deemed to have developed a disability for the purposes of this section if the employee has a physical or mental disability which prevents the employee from performing the duties of the employee’s position. (d) An employee who previously elected to participate in the disability insurance option pursuant to § 5519(b)(2) of this title and has been deemed to have a disability pursuant to § 5253(c) of this title and whose benefit under the disability insurance option has been discontinued because of the limits of coverage for mental condition or substance abuse have been exhausted, shall be deemed to have a disability for the purposes of this section and be covered under the disability pension provisions of this section.

Del. Code tit. 29, § 5525 Payment of service pension.

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.

Del. Code tit. 29, § 5526 Payment of disability pension.

(a) Disability pension payments shall be made to a retired employee for each month beginning with the month in which the retired employee becomes eligible to receive such pension and ending with the month in which the retired employee ceases to be eligible or dies. (b) Any disability pensioner who has not attained age 60 shall report to the Board by April 30 each year, beginning in 1972, in a form prescribed by the Board, the total earnings from any gainful occupation or business in the preceding calendar year. The excess of such earnings over 1 / 2 of the annual rate of compensation, adjusted annually for any increase in the total “Median Usual Weekly Earnings” as published by the U.S. Department of Labor, received before the pensioner developed a disability shall be deducted from the disability pension during the 12 months beginning in July of the year following the calendar year for which earnings are reported, in a manner determined by the Board. If any person received a disability pension for less than 12 months in the calendar year for which earnings are reported, the deduction, if any, shall be determined on a pro rata basis. (c) Any disability pensioner who was employed as a “police officer” as defined in § 8401 of Title 11 or employed as an officer of the Capitol Police who has not attained age 60 shall report to the Board by April 30 each year, in a form prescribed by the Board, their total earnings from any gainful occupation or business in the preceding calendar year. The excess of such earnings over the annual rate of compensation, adjusted annually for any increase in the total “Median Usual Weekly Earnings” as published by the U.S. Department of Labor, received at the time of the disability shall be deducted from their disability pension during the 12 months beginning in July of the year following the calendar year for which the earnings are reported, in a manner determined by the Board. If any person received a disability pension for less than 12 months in the calendar year for which earnings are reported, the deduction, if any, shall be determined on a pro-rata basis. (d) Termination of a disability pension on account of recovery from disability shall not prejudice the right of the pensioner to qualify subsequently for a service pension or another disability pension.

Del. Code tit. 29, § 5527 Amount of ordinary service or disability pension [For application of this section, see 79 Del. Laws, c. 315, § 10].

(a) (1) The amount of the monthly service or disability pension payable to an employee or former employee shall be the sum of 2.0% of the employee’s final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the employee’s period of credited service prior to January 1, 1997, plus 1.85% of the employee’s final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the employee’s period of credited service after December 31, 1996. If the employee is a 911 operator, then the amount of pension would also include 2.45% of the employee’s final average compensation multiplied by years of service above 25 years. The amount payable to a participant who does not make the additional contribution provided in § 5501(j) of this title for years of credited service before 1977 shall be the sum of 2.0% of the employee’s final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the employee’s period of credited service between January 1, 1977, and December 31, 1996, plus 2.0% of the employee’s final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the employee’s 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 the employee’s final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the employee’s period of credited service after December 31, 1996. (2) If the employee is a correction officer or a specified peace officer then the amount of pension shall also include the following: a. For years of service before December 31, 2021, 2.45% of the employee’s final average compensation multiplied by years of service above 25 years. b. For years of service on or after January 1, 2022, 2.5% of the employee’s final average compensation multiplied by the number of years of service for up to 20 years, plus 3.5% of the employee’s final average compensation multiplied by the number of years of service above 20 years. (b) In the case of an employee or former employee whose credited service under § 5501(e)(1), (2) and (3) of this title includes service before June 1970, the minimum amount payable shall be: (1) If the employee or former employee has 15 years of such credited service, the lesser of $150 or the employee or former employee final average compensation; or (2) If the employee or former employee 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(e)(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 $5.00 multiplied by the number of years, taken to the nearest twelfth of a year, in the employee’s or former employee’s 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 individual elected to be a member of the General Assembly before February 28, 2025, shall be computed by multiplying the elected official’s 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 the elected official’s years of service as an elected member of the General Assembly. The pension payable to an individual elected to be a member of the General Assembly on or after February 28, 2025, shall be computed under paragraph (a)(1) of this section. An elected official elected prior to January 1, 2012, shall be eligible to receive a pension beginning with the first month after the attainment of age 60, provided that the elected official shall have served at least 5 years at the time of the elected official’s termination of service as an elected official, or beginning with the first month after attainment of age 55, provided that the elected official shall have served at least 10 years at the time of the elected official’s termination of service as an elected official. An elected official elected on or after January 1, 2012, shall be eligible to receive a pension beginning with the first month after the attainment of age 60, provided that the elected official shall have served at least 20 years at the time of the elected official’s termination of service as an elected official, or beginning with the first month after attainment of age 65, provided that the elected official shall have served at least 10 years at the time of the elected official’s termination of service as an elected official. For the purposes of this section, a member of the General Assembly who is elected on election day in November and serves through the next election day in November will receive full-service credit for that term. 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 the elected official’s 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 the elected official’s first 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(e)(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 $1.00 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 chapter to the contrary, an employee may elect to have the employee’s service or disability pension computed under this chapter reduced by 2% thereby providing a survivor’s pension equal to 2 / 3 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 the employee’s first benefit check and shall be irrevocable. (2) Notwithstanding provisions of this section to the contrary, an employee may elect to have the employee’s 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 the employee’s first benefit check and shall be irrevocable. (3) 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 the employee’s service or disability pension 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 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 the employee’s first pension check. (4) Notwithstanding provisions of this chapter to the contrary, an employee may elect to have the employee’s service or disability pension computed under this chapter reduced by 6% thereby providing a survivor’s pension equal to 100% 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 the employee’s first benefit check and shall be irrevocable.

Del. Code tit. 29, § 5528 Ordinary survivor’s pension [For application of this section, see 79 Del. Laws, c. 315, § 10].

(a) (1) Upon the death of an employee who has 5 years of credited service, exclusive of service credited under § 5501(e)(4), (5) and (12) of this title, a monthly survivor’s pension shall be payable to his or her eligible survivor or survivors equal to ¾ of the service pension the employee would have been eligible to receive had he or she elected the option provided under § 5527(g) of this title. (2) A survivor’s pension shall begin with the month following the month in which the employee dies. If payable to a widow or widower, it shall cease with the month in which the survivor dies. If payable to a parent, it shall cease with the month in which the parent dies. If payable to a child, it shall cease with the month in which the child dies or fails to meet the conditions of eligibility in paragraph (d)(2) of this section. (b) (1) Upon the death of an individual receiving a service or disability pension at the time of his or her death, a monthly survivor’s pension shall be payable to his or her eligible survivor or survivors equal to the greater of: a. Fifty percent of such service or disability pension; b. If such pension was computed under the provisions of § 5527(g)(1) of this title, 2 / 3 of such service or disability pension; c. If such pension was computed under the provisions of § 5527(g)(2) or (3) of this title, 75% of such service or disability pension; or d. If such pension was computed under the provisions of § 5527(g)(4) of this title, 100% of such service or disability pension. (2) A survivor’s pension shall begin with the month following the month in which the pensioner dies. If payable to a widow or widower, it shall cease with the month in which the survivor dies. If payable to a parent, it shall cease with the month in which the parent dies. If payable to a child, it shall cease with the month in which the child dies or fails to meet the conditions of eligibility in paragraph (d)(2) of this section. (c) Upon the death of a former employee with a vested right to a pension, a monthly survivor’s pension equal to 1 / 2 of the former employee’s entitlement shall be payable to his or her eligible survivor or survivors beginning with the month that the former employee would have been eligible to receive such pension. If payable to a widow or widower, it shall cease with the month in which the survivor dies. If payable to a parent, it shall cease with the month in which the parent dies. If payable to a child, it shall cease with the month in which the child dies or fails to meet the conditions of eligibility in paragraph (d)(2) of this section. (d) For the purpose of this section, the eligible survivors of any employee covered under this chapter on or after the effective date of the 1976 Pension Act shall be as follows, provided that an employee may change the priority of eligible survivors specified for herein by designating his or her priority of eligible survivors on a form prescribed by the Board and filed with the Board at the time of the employee’s death: (1) The widow or widower; or (2) If there is no eligible widow or eligible widower, a child (or, with the survivor’s pension divided among them in equal shares, all such children if there are more than 1), provided the child is unmarried and either: a. Has not attained age 18; b. Has attained age 18 but not age 22 and is attending school on a full-time basis; or c. Has attained age 18 and has a permanent disability as the result of a disability which began before the child attained age 18; or (3) If there is no eligible widow, eligible widower or eligible child, a dependent parent (or, with the survivor’s pension divided between them in equal shares, both such parents if there are 2). (e) The amount payable to a widow or widower who has not attained age 50 at the time the survivor’s pension begins shall be actuarially reduced, in accordance with actuarial tables approved by the Board, for each month the survivor is under age 50 at such time. However, the actuarial reduction for any such widow or widower shall not apply for the period during which such widow or widower has in his or her care a son or daughter who is unmarried and either: (1) Has not attained age 18; (2) Has attained age 18 but not age 22 and is attending school on a full-time basis; or (3) Has attained age 18 and has a permanent disability as the result of a disability which began before the child attained age 18. (f) A parent shall be deemed to have been dependent on the deceased employee, former employee or pensioner if such individual was receiving at least one half of his or her support from such deceased person at the time of death.

Del. Code tit. 29, § 5529 Death benefit.

Upon the death of an employee, former employee or pensioner or if a survivor’s pension is payable upon such death, when such pension ceases to be payable, there shall be paid to the designated beneficiary or, in the absence of a designated beneficiary, to the estate of the employee, former employee or pensioner a lump sum equal to the excess, if any, of the accumulated employee contributions with interest over the aggregate of all pension payments made.

Del. Code tit. 29, § 5530 Withdrawal benefit.

Upon the withdrawal from service of an employee who is not eligible for a service or disability pension, the accumulated contributions with interest shall be paid to the employee.

Del. Code tit. 29, § 5531 Application for benefits.

(a) A service pension, disability pension, survivor’s pension, death benefit or withdrawal benefit shall be paid only upon the filing of an application in a form prescribed by the Board. A monthly benefit shall not be payable for any month earlier than the second month preceding the date on which the application for such benefit is filed. Said 2-month look-back restriction shall not apply to applications pursuant to § 5524 of this title. (b) The Board may require any employee, former employee or eligible survivor to furnish such information as may be required for the determination of benefits under this chapter, or to authorize the Board to procure such information including, but not limited to, information regarding benefits pursuant to the federal Social Security Act [42 U.S.C. § 301 et seq.]. The Board may withhold payment of any pension under this chapter whenever the determination of such pension is dependent upon such information and the employee, former employee or eligible survivor does not cooperate in the furnishing or procuring thereof. (c) A service pension, disability pension, or survivor’s pension applied for under this act may be paid into a Miller Trust Bank account, pursuant to the creation of an irrevocable income assignment trust (“Miller Trust”), established on behalf of an eligible pensioner or survivor covered under this chapter who is a person with disabilities, so long as the Miller Trust is established consistent with the laws of the State of Delaware, the laws of the United States and in accordance with the rules and regulations of the local and federal agencies responsible for administering assistance programs for persons with disabilities.

Del. Code tit. 29, § 5532 Increases in pensions.

(a) Any monthly service or disability pension which became effective on or before January 1, 1993, and is payable on the date this subsection is enacted into law and any survivor pension based on a former service or disability pension that was effective on or prior to January 1, 1993, and is payable on the date this subsection is enacted into law shall be increased effective January 1, 1994, by 1% plus an additional 2% for pensions effective prior to January 1, 1991, up to a maximum of 3% plus .15% for each full month of retirement preceding January 1, 1981, up to a maximum of 9%. These increases shall continue to be paid through June 30, 1994, and every fiscal year thereafter provided that funds are appropriated in accordance with § 5544 of this title. (b) Any monthly service or disability pension which became effective on or before December 1, 1990, and is payable on July 21, 1994, and any survivor pension based on a former service or disability pension that was effective on or prior to December 1, 1990, and is payable on the date this subsection is enacted into law shall be increased effective April 1, 1995, by 2% plus .10% for each full month of retirement preceding January 1, 1981, up to a maximum of 15%. These increases shall continue to be paid through June 30, 1995, and every fiscal year thereafter provided that funds are appropriated in accordance with § 5544 of this title. (c) Any monthly service or disability pension which became effective on or before July 1, 1995, and is payable on July 18, 1996, and any survivor pension based on a former service or disability pension that was effective on or before July 1, 1995, and is payable on July 18, 1996, shall be increased effective July 1, 1996, by 2% plus 1% for pensions that were effective prior to January 1, 1980. These increases shall continue to be paid through June 30, 1997, and every fiscal year thereafter; provided that funds are appropriated in accordance with § 5544 of this title. (d) Any monthly service or disability pension which became effective on or after July 1, 1976, and is payable on July 18, 1996, and any survivor pension based on a former service or disability pension which became effective on or after July 1, 1976 and is payable on the date this subsection is enacted into law shall also be increased effective July 1, 1996, by the amount of difference between the pensioner’s computed benefit under § 5527(a) of this title, as effective July 1, 1996, less the benefit previously awarded under § 5527(a)(1) and (2) of this title [repealed]. (e) Any monthly service or disability pension which became effective on or before July 1, 1996, and is payable on July 9, 1997, and any survivor pension based on a former service or disability pension that was effective on or before July 1, 1996, and is payable on July 9, 1997, shall be increased effective July 1, 1997, in accordance with the following schedule: Year Pension Became Effective Percent Increase Prior to 1974 9% 1974 8% 1975 7% 1976 6% 1977 5% 1978 4% After 1978 2% These increases shall continue to be paid through June 30, 1998, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (f) Any monthly service, disability and survivor pension based on a former service or disability pension that was effective on or before July 1, 1997, but after December 31, 1985, and is payable on the effective date of this subsection shall be increased effective July 1, 1998, by 2%. Any monthly service, disability, or survivor pension based on a former service or disability pension that was effective prior to January 1, 1986, shall be increased effective July 1, 1998, by 3% or $20 per month, whichever is greater. These increases shall continue to be paid through June 30, 1999, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (g) Any monthly service, disability and survivor pension based on a former service or disability pension that was effective on or before July 1, 1998, but after December 31, 1979, and is payable on July 9, 1999, shall be increased effective July 1, 1999 by 2%. Any monthly service, disability or survivor pension based on a former service or disability pension that was effective prior to January 1, 1980. Shall be increased effective July 1, 1999 by 3% or $25 per month, whichever is greater. These increases shall continue to be paid through June 30, 2000, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (h) Any monthly service, disability and survivor pension based on a former service or disability pension that was effective on or before June 30, 2000, but after December 31, 1979, and is payable on July 21, 2000, shall be increased effective July 1, 2000, by 2%. Any monthly service, disability, or survivor pension based on a former service or disability pension that was effective prior to January 1, 1980, shall be increased effective July 1, 2000, by 3% or $25 per month, whichever is greater. These increases shall continue to be paid through June 30, 2001, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (i) (1) Any monthly service, disability and survivor pension based on a former service or disability pension that was effective prior to July 1, 2001, and is payable on July 1, 2001, shall be increased effective July 1, 2001, by 1.5%. These increases shall continue to be paid through June 30, 2002, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (2) Any monthly service, disability and survivor pension based on a former service or disability pension that was effective prior to July 1, 2001, and is payable on July 1, 2001, shall be increased effective July 1, 2001, by 0.5%. These increases shall continue to be paid through June 30, 2002, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (j) Any monthly service, disability and survivor pension based on a former service or disability pension that was effective on or before June 30, 2001, but after December 31, 1975, and is payable on September 1, 2003, shall be increased effective September 1, 2003, by 2% or $25 per month, whichever is greater. Any monthly service, disability and survivor pension based on a former service or disability pension that was effective before January 1, 1976, and is payable on September 1, 2003, shall be increased effective September 1, 2003, by 2% or $35 per month, whichever is greater. These increases shall continue to be paid through June 30, 2004, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (k) (1) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2001, but after December 31, 1975, and is payable on July 1, 2004, shall be increased effective July 1, 2004, by 2%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective before January 1, 1976, and is payable on July 1, 2004, shall be increased effective July 1, 2004, by 2% or $35 per month, whichever is greater. These increases shall continue to be paid through June 30, 2005, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (2) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2003, but after June 30, 2001, and is payable on July 1, 2004, shall be increased effective July 1, 2004, by 2%. These increases shall continue to be paid through June 30, 2005, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (3) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before May 31, 2004, but after June 30, 2003, and is payable on July 1, 2004, shall be increased effective July 1, 2004, by 2%. These increases shall continue to be paid through June 30, 2005, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. ( l ) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2004, but after December 31, 1980, and is payable on July 1, 2005, shall be increased effective July 1, 2005, by 2%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective before January 1, 1981, and is payable on July 1, 2005, shall be increased effective July 1, 2005, by 2% plus $50 per month. These increases shall continue to be paid through June 30, 2006, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (m) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2005, but after December 31, 1980, and is payable on July 1, 2006, shall be increased effective July 1, 2006, by 2%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective before January 1, 1981, and is payable on July 1, 2006, shall be increased effective July 1, 2006, by 2% or $25 per month, whichever is greater. These increases shall continue to be paid through June 30, 2007, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (n) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2010, and is payable on January 1, 2012, shall be increased effective January 1, 2012, by 2%. These increases shall continue to be paid through June 30, 2012, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (o) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2011, and is payable on July 1, 2012, shall be increased effective July 1, 2012, by 1%. These increases shall continue to be paid through June 30, 2013, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (p) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2013, and is payable on January 1, 2015, shall be increased effective January 1, 2015, by 1%. These increases shall continue to be paid through June 30, 2015, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (q) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 1991, and is payable on July 1, 2021, shall be increased effective July 1, 2021, by 3%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2001, but after June 30, 1991, and is payable on July 1, 2021, shall be increased effective July 1, 2021, by 2%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2016, but after July 1, 2001, and is payable on July 1, 2021, shall be increased effective July 1, 2021, by 1%. These increases shall continue to be paid through June 30, 2022, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (r) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 1992, and is payable on July 1, 2022, shall be increased effective July 1, 2022, by 3%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2017, but after June 30, 1992, and is payable on July 1, 2022, shall be increased effective July 1, 2022, by 2%. These increases shall continue to be paid through June 30, 2023, and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (s) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2004, and is payable on July 1, 2024, shall be increased effective July 1, 2024, by 2%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2019, but after June 30, 2004, and is payable on July 1, 2024, shall be increased effective July 1, 2024, by 1%. These increases shall continue to be paid through June 30, 2025, and every fiscal year thereafter, provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title. (t) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2006, and is payable on July 1, 2026, shall be increased effective July 1, 2026, by 2%. Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective on or before June 30, 2021, but after June 30, 2006, and is payable on July 1, 2026, shall be increased effective July 1, 2026, by 1%. These increases shall continue to be paid through June 30, 2027, and every fiscal year thereafter, provided that funds are appropriated by the General Assembly in accordance with § 5544 of this title.

Del. Code tit. 29, § 5533 Adjustment of benefits.

(a) On and after July 1, 1972, no pension which has been in effect for 3 years shall be subject to adjustment. (b) The amount of any pension which became effective before 1971 shall be the greater of: (1) The monthly pension paid in December, 1970; (2) The correct amount determined as a result of audits made between May, 1971, and June, 1972, inclusive of any increases provided before 1972. (c) Any pension overpayments discovered as a result of audits made between May, 1971, and June, 1972, shall not be subject to recovery. (d) If the final average compensation of an employee has been reduced because of a leave of absence resulting from presidential determinations to augment active forces, such employee shall have their final average compensation adjusted by their amount of military compensation. This adjustment will be no greater then what the employee would have received had they remained in employment for the period of leave. The employee will contribute 3% of the amount that was adjusted. Any remaining cost associated with the adjustment will be transferred from the Special Pension Fund authorized by 61 Del. Laws, c. 455. (e) Any reduction in a state employee’s salary, mandated as part of the Fiscal Year 2010 Annual Appropriations Act [77 Del. Laws, c. 84] and implemented during Fiscal Year 2010, shall not be used when computing an employee’s final average compensation. Rather, the state employee’s base salary as of June 30, 2009, shall be used in calculating the employee’s final average compensation as defined in § 5501(g) of this title.

Del. Code tit. 29, § 5534 Corrections officers [Repealed].

Repealed by 63 Del. Laws, c. 452, § 1, effective July 23, 1982.

Del. Code tit. 29, § 5541 Establishment of Fund.

There shall be established a State Employees’ Retirement Fund, hereinafter referred to as “Fund,” to which state appropriations and other employer contributions shall be deposited monthly and to which employee contributions shall be deposited upon deduction from the employee’s paycheck and to which earnings on investments, any other contributions, gifts, donations, grants, refunds and reimbursements shall be deposited upon receipt and from which benefits shall be paid and fees and expenses authorized by the Board shall be paid. Subject to Internal Revenue Code § 401(a)(24) [26 U.S.C. § 401(a)(24)], the assets of the Fund will be commingled in the Delaware Public Employees’ Retirement System as provided for by § 8308 of this title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.

Del. Code tit. 29, § 5542 Board of Pension Trustees.

The Board of Pension Trustees, established by § 8308 of this title, shall be responsible for the general administration of this chapter in accordance with Chapter 83 of this title.

Del. Code tit. 29, § 5543 Employee contributions.

(a) (1) Effective January 1, 1998, employee contributions to the Fund shall be 3% of total annual compensation in excess of $6,000 provided, however, that post-2011 employees will pay an employee contribution rate of 5% of total annual compensation in excess of $6,000. In no event shall total compensation during any calendar year in excess of $6,000 be exempt from contributions. (2) The employee contribution for a correction officer or specified peace officer shall be 7% of annual compensation. (3) The employee contribution rate for a 911 operator is 5% of annual compensation in excess of $6,000; provided, however, that a 911 operator who is also a post-2011 employee must pay an employee contribution rate of 7% of annual compensation in excess of $6,000. (b) Any section of this chapter to the contrary notwithstanding, any individual with 15 years of credited service who commenced receiving a service pension of $250 or less before 1971 shall be paid the accumulated contributions with interest; provided, that the individual would have been entitled to such payment under § 5553 of this title as in effect on May 31, 1970. (c) Effective July 1, 1997, employee pension contributions made pursuant to this section shall not be subject to adjustment or recovery after the expiration of 3 full calendar years from December 31 of the year in which the contributions were made unless no contributions were paid during that calendar year. (d) An employee can purchase service credit or repay a withdrawal benefit using a rollover distribution from: (1) A direct rollover of an eligible rollover distribution from: a. A qualified plan described in § 401(a) [26 U.S.C. § 401(a)] of the United States Internal Revenue Code; b. An annuity contract described in § 403(b) [26 U.S.C. § 403(b)] of the United States Internal Revenue Code; or c. An eligible plan under § 457(b) [26 U.S.C. § 457(b)] of the United States Internal Revenue Code. (2) A participant contribution of an eligible rollover distribution from: a. A qualified plan described in § 401(a) [26 U.S.C. § 401(a)] of the United States Internal Revenue Code; b. An annuity contract described in § 403(b) [26 U.S.C. § 403(b)] of the United States Internal Revenue Code; or c. An eligible plan under § 457(b) [26 U.S.C. § 457(b)] of the United States Internal Revenue Code. (3) A participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in § 408 [26 U.S.C. § 408] of the United States Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income.

Del. Code tit. 29, § 5544 Actuarial valuations and appropriations.

(a) The actuary shall prepare an actuarial valuation of the assets and liabilities of the funds as of June 30, each year. On the basis of reasonable actuarial assumptions and tables approved by the Board, the actuary shall determine the normal cost required to meet the actuarial cost of current service and the unfunded actuarial accrued liability. (b) The State’s appropriation to the funds for Fiscal Year 2008, and for each fiscal year thereafter, shall be the percentage of covered payroll approved by the Board on the basis of the most recent actuarial valuation, and shall equal the sum of the normal cost plus the payment required to implement the provisions of subsection (c) of this section plus the payment required to amortize the unfunded actuarial accrued liability using an open amortization period of 20 years. For plan amendments effective after Fiscal Year 2007 the unfunded actuarial accrued liability for such amendments shall be amortized over an open amortization period of 20 years. The amortization payment shall be an amount computed as a level percentage of the prospective total covered payroll over the remainder of the amortization period, with such prospective total covered payroll to be determined on the basis of a growth rate, as determined by the Board, compounded annually. Except as provided in subsection (c) of this section, all funds appropriated pursuant to this subsection shall be deposited into the fund established by § 5541 of this title. (c) (1) In order to provide a fund for post-retirement increases, the State shall include in its annual appropriation payments equal to 2.33% of covered payroll, subject to the limitations under § 5548(a)(2) of this title. Beginning with the Fiscal Year 1994 budget, 0.70% of covered payroll shall be appropriated; in Fiscal Year 1995, 1.11% of covered payroll shall be appropriated; in Fiscal Year 1996, 1.52% of covered payroll shall be appropriated; in Fiscal Year 1997, 1.93% of covered payroll shall be appropriated; in Fiscal Year 1998 and each fiscal year thereafter 2.33% of covered payroll shall be appropriated. Funds appropriated to implement this subsection shall be deposited into the Post Retirement Fund established under § 5548 of this title. (2) In order to provide for retiree health insurance under Chapter 52 of this title, the State shall include all of the following in its annual appropriations: a. The sum of the anticipated cost of the State’s retiree health insurance under Chapter 52 of this title for that year. b. At least 1% of the grand total of all General Fund operating budget appropriations for the prior fiscal year to the OPEB Fund established under § 5281 of this title. c. Prefunding to the OPEB Fund as follows: 1. In Fiscal Year 2026, in an amount equal to 0.50% of the rate of covered payroll of the Fiscal Year 2026 operating budget. 2. Beginning in Fiscal Year 2027, in an amount equal to an additional 0.25% of covered payroll from the rate of covered payroll the prior fiscal year. (3) The total appropriated under paragraph (c)(2) of this section must not exceed the annual required contribution determined by the Board of Pension Trustees under § 5283 of Title 29. (4) a. The appropriations under paragraphs (c)(2)a. and (c)(2)c. of this section must be in the annual operating Budget Appropriation Bill under § 6533 of this title. b. An appropriation under paragraph (c)(2)b. of this section may be in the annual operating Budget Appropriation Bill or a Supplementary Appropriation Bill under § 6339 of this title. (d) (1) The State’s obligation to the State Employees’ Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(a) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from January 1, 1994. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(a) of this title in Fiscal Year 1994, shall be the lump sum actuarial liability of the benefits granted. (e) (1) The State’s obligation to the State Employees’ Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(b) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from April 1, 1995. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provision of § 5532(b) of this title in Fiscal Year 1995, shall be the lump sum actuarial liability of the benefits granted. (f) (1) The State’s obligation to the State Employees’ Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(c) and (d) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1996. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(c) of this title in Fiscal Year 1997 shall be the lump sum actuarial liability of the benefits granted. (g) (1) The State’s obligation to the State Employees’ Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(e) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1997. (2) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(c) of this title in Fiscal Year 1998 shall be the lump sum actuarial liability of the benefits granted. (h) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement § 5532(f) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1998. (2) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement § 5532(f) of this title in Fiscal Year 1999 shall be the lump sum actuarial liability of the benefits granted. (i) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(g) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1999. (2) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(g) of this title in Fiscal Year 2000 shall be the lump sum actuarial liability of the benefits granted. (j) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund and the New State Police Retirement Fund to implement the provisions of § 5532(h) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2000. (2) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(g) of this title in Fiscal Year 2001 shall be the lump sum actuarial liability of the benefits granted. (k) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund and the New State Police Retirement Fund to implement the provisions of § 5532(i)(1) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2001, pursuant to § 5548 of this title. (2) The State’s obligation to the State Employees’ Pension Plan to implement the provisions of § 5532(i)(2) of this title shall be treated as an actuarial loss during the next actuarial valuation process. (3) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(i) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. ( l ) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(j) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from September 1, 2003, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(j) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (m) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(k) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2004, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(k) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (n) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532( l ) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2005, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532( l ) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (o) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(m) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2006, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(m) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (p) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(n) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from January 1, 2012, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(n) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (q) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(o) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2012, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(o) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (r) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(p) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from January 1, 2015, pursuant to 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(p) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (s) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(q) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2021, pursuant to § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(q) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (t) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(r) of this title shall be funded through the appropriation contained in the Fiscal Year 2023 One-Time Supplemental Appropriations Act for “Post Retirement Increase Supplement - FY 23”. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(r) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (u) (1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(s) of this title shall be funded through the appropriation contained in the Fiscal Year 2025 One-Time Supplemental Appropriations Act for “Post Retirement Increase Supplement - FY 25” and through the Post Retirement Fund established in § 5548 of this title. (2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(s) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (v) (1) This State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(t) of this title shall be funded through the Post Retirement Fund established in § 5548 of this title. (2) This State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455 to implement the provisions of § 5532(t) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.

Del. Code tit. 29, § 5545 Full actuarial funding.

No laws establishing special pensions, whether they be service pensions, disability pensions, survivor’s pensions or otherwise, shall be enacted by the General Assembly unless, at the time of enactment, an appropriation is passed that provides full actuarial funding for such special pensions.

Del. Code tit. 29, § 5546 Burial benefits.

(a) Upon the death of an individual receiving a pension under this chapter the sum of $7,000 shall be paid from the Fund to a designated beneficiary or in the absence of a designated beneficiary the amount of this benefit shall be paid to the deceased pensioner’s estate. (b) The benefit granted under this section shall not be construed as a contractual obligation of the State or of the Pension Fund and may be revised or terminated by an act of the General Assembly. (c) Benefits granted under this section may be assigned to a licensed funeral home to cover the funeral and associated expenses of the deceased pensioner, subject to the signed consent of the beneficiary or his or her legal guardian using a form approved for such use by the Board of Pension Trustees.

Del. Code tit. 29, § 5547 Employer pickup of employee contributions.

(a) Each participating employer, pursuant to the provisions of § 414(h)(2) of the United States Internal Revenue Code [26 U.S.C. § 414 (h)(2)], shall pick up and pay the contributions which would otherwise be payable by the employees under § 5543 of this title. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the employee’s compensation. (b) Employee contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to an employee. A deduction shall be made from each employee’s compensation equal to the amount of the employee’s contributions picked up by the employer. This deduction, however, shall not reduce the employee’s compensation for purposes of computing benefits under the retirement system pursuant to this chapter. (c) Employee contributions shall be credited to a separate account within the employee’s individual account so that the amount contributed prior to the effective date for the pickup of employee contributions may be distinguished from the amounts contributed on or after the effective date. (d) The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system.

Del. Code tit. 29, § 5548 Establishment of Post Retirement Benefit Fund.

(a) (1) There shall be established a State Post Retirement Benefit Fund, hereinafter referred to as the “Post Retirement Fund,” separate and distinct from the funds established under §§ 5541 and 5601 of this title; § 8393 of Title 11, to which state appropriations and other employer contributions shall be deposited monthly, and to which earnings on investments, refunds and reimbursements shall be deposited upon receipt, and from which such post retirement benefits as the General Assembly may hereafter legislate shall be paid and any fees and expenses authorized by the Board shall be paid. No money shall be disbursed from this fund except for the purpose of providing funding for post retirement increases for employees retired under this chapter; Chapter 56 of this title; Chapter 83 of Title 11. (2) The Board of Pension Trustees shall review the balance in the Post Retirement Fund at the end of each fiscal year and make any recommendations for adjustments in the funding rate for the succeeding fiscal year to ensure that the rate be sufficient to fund post retirement increases authorized under this section. (b) (1) In the event that the General Assembly shall introduce legislation proposing post retirement increases, the Board of Pension Trustees shall review each such proposal to determine if sufficient funds are projected to be available in the Post Retirement Fund to provide the funding necessary to fund the increase granted by the General Assembly. In addition, any pension increases granted shall not be substantively automatic. If the Board determines that insufficient funds will be available to fund the increase, the Board shall notify the Governor and the General Assembly that an additional appropriation will be required in order to provide the post retirement increase being proposed. (2) Any monthly service, disability, and survivor pension based on former service or disability pension that was effective 20 years or more prior to the date of the pension increase and is payable upon the date of the increase, shall be increased greater than any pension that was effective less than 20 years prior to the date of the pension increase.

Del. Code tit. 29, § 5549 Payment of benefits.

Benefits shall be due and payable under this chapter only to the extent provided in this chapter, and neither the State nor the State Employees’ Pension Plan shall be liable for any amount in excess of such sums.

Del. Code tit. 29, § 5550 Establishment of Post Retirement Health Insurance Premium Fund [Repealed].

Repealed by 76 Del. Laws, c. 70, § 6, effective July 1, 2007.

Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title29/c055/sc01/index.htmlFetched: 10/4/2026