SPONSOR:	Rep. D.P. Williams & Sen. McDowell
	Reps. Bennett, Brady, George, J. Johnson, Kowalko, Miro, Mitchell, Scott; Sens. Bushweller, Ennis, Henry, Sokola

HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY

HOUSE BILL NO. 217

AN ACT TO AMEND TITLE 11 AND TITLE 29 OF THEDELAWARE CODE TO PROVIDE POST-RETIREMENT INCREASES TO PENSIONERS AND CHANGE ACTUARIAL ASSUMPTIONS IN THE JUDICIAL, STATE POLICE AND STATE EMPLOYEE PENSION PLANS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend §5532, Chapter 55, Title 29 of the Delaware Code by adding thereto a new subsection to be designated as subsection (n) to read as follows:

"(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 Chapter."

Section 2.The increases provided by this Act shall not apply to pensions awarded under §5527(d), Title 29 of the Delaware Code.

Section 3.Amend §5544, Chapter 55, Title 29 of the Delaware Code by adding thereto a new subsection to be designated as subsection (p) to read as follows:

"(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 Chapter shall be the payment required to amortize the unfunded accrued liability over five years from January 1, 2012, pursuant to §5548 of this Chapter.

(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."

Section 4.Amend §5544(b), Chapter 55, Title 29 of the Delaware Code, by deleting the words "of 3.75% per year" and inserting the words ", as determined by the Board".

Section 5.Amend §5616(b), Chapter 56, Title 29 of the Delaware Code by deleting the words "of 4% per year" and inserting the words ", as determined by the Board".

Section 6.Amend §8392(b), Chapter 83, Title 11 of the Delaware Code, by deleting the words "of 3.75% per year" and inserting the words ", as determined by the Board".

SYNOPSIS

Sections 1 – 3 of this Act grant pension increases to retired State Employees, retired Judges, retired "New" State police and retired County/Municipal Police/Firefighters on January 1, 2012 for persons retired on or before June 30, 2010. Sections 4 – 6 of this Act give the Board of Pension Trustees the authority to amend the growth rate in the State Employees' pension plan, Judiciary pension plan, and the State Police pension plan. Currently, the Board of Pension Trustees has the authority to amend all actuarial assumptions in the pension plans, except for the growth rate.This rate is used to determine the general wage increase for individuals as well as the increase in total payroll for the amortization of actuarial gains or losses.