Bill Text: DE SCR55 | 2015-2016 | 148th General Assembly | Draft

Delaware Senate Concurrent Resolution 55 (Prior Session Legislation)

Draft

Bill Title: Commending And Encouraging The Deferred Compensation Program For Educators.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2016-03-24 - Passed in House by Voice Vote [SCR55 Detail]

Download: Delaware-2015-SCR55-Draft.html

SPONSOR:	Sen. Hall-Long & Rep. B. Short
	Sen. Sokola

DELAWARE STATE SENATE

148th GENERAL ASSEMBLY

SENATE CONCURRENT RESOLUTION NO. 55

COMMENDING AND ENCOURAGING THE DEFERRED COMPENSATION PROGRAM FOR EDUCATORS.

WHEREAS, educators working in Delaware's school districts are afforded access to a deferred compensation program that can help them save money for their retirement; and

WHEREAS, the program affords educators the choice of up to 15 vendors that they can utilize to help them with their investment decisions and options; and

WHEREAS, this program was created with the hope that those working for Delaware's school districts will take advantage of this opportunity to secure a better retirement future; and

WHEREAS, the program is governed by the Delaware Deferred Compensation Council and administered by the State Treasurer's Office; and

WHEREAS, the program was previously reduced from 100 vendors to a current 13 active vendors; and

WHEREAS, the Delaware Deferred Compensation Council has embarked upon a process to review this program to reduce costs and is considering options including a single vendor system and/or a limited vendor system of two or three; and

WHEREAS, there is concern that further reduction to one to three vendors will cause significant disruption to the thousands of participants in the program and reduce participation by eliminating vendors that educators have already elected to work with; and

WHEREAS, we support the effort to reduce costs but such efforts should be tempered by the need to minimize disruption with the goal of increasing participation; and

WHEREAS, it appears educators value the choices they have in terms of the vendors they work with and the Delaware Deferred Compensation Council should engage in significant outreach and consultation with educators on this issue before making dramatic changes to the existing program; and

WHEREAS, experiences in other states has been that moving to a single or limited vendor system from a multi-vendor option dramatically reduces participation rates;

NOW, THEREFORE:

BE IT RESOLVED, by the Senate of 148th General Assembly of the State of Delaware, the House of Representatives concurring therein, that:

1) We commend the efforts of the Deferred Compensation Council to evaluate and analyze the impact of the Deferred Compensation Program on educators but encourage further collaboration, including significant outreach and consultation with those most affected, Delaware's educators; and

2) We urge the Deferred Compensation Council in considering these issues to prioritize participation by minimizing disruption of the current relationships between participants and vendors, with vendor choice being a significant and meaningful component in any new program design adopted.

SYNOPSIS

This resolution recognizes the importance of the work by the Deferred Compensation Council in seeking out ways to improve upon Delaware's existing deferred compensation program for educators, which helps them enhance their retirement through planned savings and investments.The resolution urges the Council to study this issue further, with significant input from educators and to prioritize maintaining and hopefully increasing participation in this important program.

Author: Senator Hall-Long