Bill Text: DE HB429 | 2015-2016 | 148th General Assembly | Draft
Bill Title: An Act To Amend Title 29 Of The Delaware Code Relating To Ordinary Or Disability Pensions For State Employees.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2016-06-15 - Introduced and Assigned to Corrections Committee in House [HB429 Detail]
Download: Delaware-2015-HB429-Draft.html
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SPONSOR: |
Rep. J. Johnson & Sen. Ennis |
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HOUSE OF REPRESENTATIVES 148th GENERAL ASSEMBLY |
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HOUSE BILL NO. 429 |
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AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO ORDINARY OR DISABILITY PENSIONS FOR STATE EMPLOYEES. |
Section 1.Amend §5527(a), Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§5527 Amount of ordinary service or disability pension [Effective until Jan. 1, 2017]
(a)The amount of the monthly service or disability
pension payable to an employee or former employee shall be the sum of 2.0% of
his or her final average compensation multiplied by the number of years, taken
to the nearest twelfth of a year, in his or her period of credited service
prior to January 1, 1997, plus 1.85% of his or her final average compensation
multiplied by the number of years, taken to the nearest twelfth of a year, in
his or her period of credited service after December 31, 1996.If the employee is a Correction Officer then
the amount of pension shall be 2.5% of his or her final average compensation
multiplied by the number of years, taken to the nearest twelfth of a year, in
his or her period of credited service after January 1, 2017.would also
include 2.45% of his or her 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 his or her final average compensation multiplied by the
number of years, taken to the nearest twelfth of a year, in his or her period
of credited service between January 1, 1977, and December 31, 1996, plus 2.0%
of his or her final average compensation multiplied by the number of years,
taken to the nearest twelfth of a year, in his or her period of credited
service prior to January 1, 1977, provided that the maximum amount based on the
service before 1977 is $1,000, plus 1.85% of his or her final average compensation
multiplied by the number of years, taken to the nearest twelfth of a year, in
his or her period of credited service after December 31, 1996.
Section 2.Amend §5543(a), Title 29 of the Delaware Code by making by making deletions as shown by strike through and insertions as shown by underline as follows:
(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 shall be 5% of annual compensation in excess of $6,000 provided, however, that a correction officer who is also a post-2011 employee will pay an employee contribution rate of 7% of annual compensation in excess of $6,000.Effective January 1, 2017, the employee contribution for all Correction Officers shall be 7% of annual compensation.
Section 3. This Act shall take effect on January 1, 2017.
SYNOPSIS
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This bill amends the multiplier for calculation of state employee pension benefits for Correction Officers from either 1.85%, 2.0% or 2.45% to a uniform 2.5%, reflecting increased costs, reduced benefits and the need to recruit and retain qualified and competent Correction Officers with a modernized pension benefit.In addition, this bill amends the employee contribution for all Correction Officers to a uniform 7%. |
