Bill Text: DE HB376 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Titles 18 & 29 Of The Delaware Code Relating To Insurance Fees And Taxes And To Establish A Medical Insurance Component For Retired Delaware County And Municipal Police And Firefighters Pension Plan.
Spectrum: Slight Partisan Bill (Democrat 6-2)
Status: (Introduced - Dead) 2012-06-28 - Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING/INSURANCE/COMMERCE) in House with 7 On Its Merits [HB376 Detail]
Download: Delaware-2011-HB376-Draft.html
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SPONSOR: |
Rep. J. Johnson & Sen. Blevins |
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Reps. Gilligan, Atkins, Lee, Wilson; Sens. Bushweller, Ennis |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 376 |
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AN ACT TO AMEND TITLES 18 & 29 OF THE DELAWARE CODE RELATING TO INSURANCE FEES AND TAXES AND TO ESTABLISH A MEDICAL INSURANCE COMPONENT FOR RETIRED DELAWARE COUNTY AND MUNICIPAL POLICE AND FIREFIGHTERS PENSION PLAN. |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):
Section 1.Amend §707(a), Title 18 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
§707. Special tax on gross premiums for benefit of police.
(a) Every insurer transacting insurance within this State, other than
workers' compensation insurance and wet marine and transportation insurance,
shall, in addition to other taxes, fees and charges required by law, at the
same time as the premium tax and estimated payments as provided in §702 of
this title pay to the Commissioner, for the use of the State, 1/4% 1/2%
upon the gross premiums received and assessments collected from insurance of
every kind upon persons or on the lives of persons resident in or upon real and
personal property located within this State, or upon any other risks insured
within this State, by any such insurer or the authorized agent thereof for the
calendar year immediately preceding the date herein provided for such payments.
Section 2.Amend §708(b) and (c), Title 18 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
§708. Distribution of proceeds of tax.
(b)(1) One half of The the money received by the
Insurance Commissioner in accordance with the provisions of §707 of this title
shall be paid to the State Treasurer and shall be set aside as a special fund
and shall be paid out by the State Treasurer, subject to the provisions of
subsection (c) of this section, to the proper officers in charge of any state,
county or municipal police department or bureau having a pension fund, or which
shall hereafter by law have a police pension fund. The State Treasurer shall
determine the total number of state, county and municipal police entitled to
benefits under the provisions of this section and §707 of this title from an
annual registry in accordance with §709(a) of this title, and shall make
distribution proportionately and on a per capita basis, subject to the
provisions of subsection (c) of this section, to the proper officers of any
state, county or municipal police department or bureau complying with the
provisions of this section and §707 of this title. Distribution under this
section shall take place twice annually, on or before June 30 and December 31.
(2) The remaining half of the money received by the Insurance Commissioner in accordance with the provisions of §707 of this title shall be paid to the State Treasurer and shall be set aside as a special fund and shall be paid out by the State Treasurer, subject to the provisions of subsection (c) of this section, to the proper officers in charge of any state, county or municipal police department or bureau having a health insurance component for retired police officers, or which shall hereafter by law have a police retirement health insurance fund. The State Treasurer shall determine the total number of state, county and municipal police entitled to benefits under the provisions of this section and §707 of this title from an annual registry in accordance with §709(a) of this title, and shall make distribution proportionately and on a per capita basis, subject to the provisions of subsection (c) of this section, to the proper officers of any state, county or municipal police department or bureau complying with the provisions of this section and §707 of this title.Distribution under this section shall take place twice annually, on or before June 30 and December 31.
(c)(1) Half of The the payments to the State
referred to in this section for "state police," as defined in §
706(1) of this title, shall be deposited into a special fund, to be managed by
the State Board of Pension Trustees, to provide post-retirement increases for
retired county and municipal police and firefighters. The State Board of
Pension Trustees shall allocate the funds deposited in this special fund on a
per capita basis to the account of each eligible county or municipality based
upon the annual registry in accordance with §709(b) of this title, provided
that the eligible county or municipality has elected to participate in the
State-administered County and Municipal Police/Firefighter Pension Plan for all
new hires after the time a municipality or county elects into that plan in
accordance with Chapter 88 of Title 11. No funds shall be disbursed from this
special fund without the prior approval of the Board of Pension Trustees.
(2) Any county or municipality wishing to grant a post-retirement increase from this fund shall submit a proposal to the State Board of Pension Trustees outlining the proposal in such detail as the State Board of Pension Trustees may require. The State Board of Pension Trustees shall not approve any proposal for a post-retirement increase unless the county or municipality requesting such increase agrees to deposit into this special fund, prior to the implementation of such increase, sufficient funds to cover 25% of the total actuarial cost of such increase.
(3) Any funds on deposit in this special fund, including accumulated
income, shall revert to the General Fund, if such funds are not utilized for a
post-retirement increase by the eligible counties or municipalities within 5
years from the date of deposit into the special fund.
(3) The remaining half of the payments to the State shall be deposited into a special fund, to be managed by the State Board of Pension Trustees, to provide health insurance for retired county and municipal police and firefighters. The State Board of Pension Trustees shall allocate the funds deposited in this special fund on a per capita basis to the account of each eligible county or municipality based upon the annual registry in accordance with §709(b) of this title. The Board of Pension Trustees is authorized to enact regulations to administer this fund in accordance with the Administrative Procedures act of Title 29 of this Code. No funds shall be disbursed from this special fund without the prior approval of the Board of Pension Trustees.
(4) Any county or municipality wishing to be reimbursed from the health insurance fund for retirees shall submit a proposal to the State Board of Pension Trustees outlining the proposal in such detail as the State Board of Pension Trustees may require.
(5) Any funds on deposit in this special fund pursuant to subsection (b)(1) of this section, including accumulated income, shall revert to the General Fund, if such funds are not utilized for a post-retirement increase by the eligible counties or municipalities within 5 years from the date of deposit into the special fund.
(6) Until the health insurance plan is fully funded by a written determination of the Director of the State Pension office, the plan shall provide health insurance for survivors of plan members killed in the line of duty after August 30, 2009 on a reimbursement basis to be reimbursed by the Delaware Police Chief's Foundation or other non-profit organization.Further, the plan shall reimburse The Town of Georgetown, for payments made to provide health insurance to the child dependent of the municipal officer killed in the line of duty September 1, 2009.
Section 3.Amend §5202(b), Title 29 of the Delaware Code by adding a new subsection (5) to read as follows:
§5202. Payment of premium or subscription charges [Effective July 1, 2012]
(5) An individual who is receiving or is eligible to receive retirement benefits in accordance with the Delaware County and Municipal Police and Firefighter Plan under Chapter 88 of Title 11 of this Code, shall pay 20% of the premium charge and 80% of the premium charge shall be paid from the special fund established under §708(c)(3) of Title 18 of this Code.
Section 4.To fund insurance coverage for any minor child whose parent has been killed in the line of duty since January 1, 2009, a private non-profit organization, trust or other charitable foundation may pay the monthly payment for said insurance to the State of Delaware as a pass through until the fund is able to pay for such benefits for surviving children. To comply with IRS Code provisions, upon enactment the provisions of this act shall take effect for minor children while the balance of the act is being funded by member contributions and buy-in payments shall become effective upon the approval of the Board of Pension Trustees, The Pension Administrator of the State, The Co-chairs of the Joint Finance Committee and the Controller General. Upon establishment, the fund shall reimburse the Town of Georgetown for its payments as referenced in Section 2 of this act, §708(c)(4) of Title 18.
SYNOPSIS
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This bill increases the percentage from ¼ to ½ of one percent the premium tax on insurance policies and uses those proceeds to fund the pension and medical coverage pension plans for retired state, county and municipal police officers and firefighters, including a health insurance benefit for dependent survivors of plan members killed in the line of duty.This bill also establishes a medical insurance benefit for eligible retirees of the County Municipal Police and Firefighter's Fund as well as a medical survivor's benefit for child survivors of vested members of the County Municipal Police and Firefighter's Fund, such as Aubrey Spicer, daughter of the late Georgetown Police Officer Chad Spicer.The bill provides immediate vesting for any officer or employee killed in the line of duty enrolled in the plan. The 1/4 percent increase on insurance policies, excluding vehicle and boat coverage and workers compensation coverage (which are already exempted from the fee), is about $3.00 on $1200.00 of premiums surcharged. |
