CHAPTER 445

RELATING TO SOCIAL SECURITY

AN ACT TO AMEND CHAPTER 57, TITLE 29, DELAWARE CODE, RELATING TO SOCIAL SECURITY.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. § 5702, Chapter 57, Title 29, Delaware Code is amended by adding a new sentence to the said section to read as follows:

It is also the policy of the legislature that the protection afforded employees in positions covered by a retirement system on the date an agreement under this Act is made applicable to service performed in such positions, or receiving periodic benefits under such retirement system at such time, will not be impaired as a result of making the agreement so applicable or as a result of legislative enactment in anticipation thereof.

Section 2. § 5701, Title 29, Delaware Code, is amended by adding to the paragraph defining the word "employment" the following:

Service which under the Social Security Act may be included in an agreement only upon certification by the Governor in accordance with section 218 (d) (3) of that Act shall be included in the term "employment" if and when the Governor issues, with respect to such service, a certificate to the Secretary of Health, Education, and Welfare pursuant to section 5710 (b) of this Act.

Section 3. § 5701, Title 29, Delaware Code, is amended by adding immediately before the semi-colon at the end of the paragraph defining the term "Federal Security Administrator," a comma and the following words:

and with respect to any action taken prior to April 11, 1953, includes the Federal Security Administrator and any individual to whom such Administrator had delegated any such

function.

A of chapter 9 of the federal Internal Revenue Code of 1939 and subchapters A and B of chapter 21 of the federal Internal Revenue Code of 1954, as such Codes have been and may from time to time be amended ; and the term "employee tax" means the tax imposed by section 1400 of such Code of 1939 and section 3101 of such Code of 1954.

Section 5. Chapter 57, Title 29, Delaware Code, is amended by striking out the term "Federal Security Administrator" wherever it appears and inserting in lieu thereof the term "Secretary of Health, Education, and Welfare."

Section 6. § 5703 (2), Title 29, Delaware Code, is amended by striking the following words :

Sections 1400 and 1410 of

Section '7. § 5703 (3), Title 29, as amended, Delaware Code, is amended by adding immediately before the semi-colon the following words:

except that a modification entered into after December 31, 1954, and prior to January 1, 1958, may be effective with respect to services performed after December 31, 1954, or after a later date specified in such modification.

Section 8. § 5703 (4), Title 29, as amended, Delaware Code, is amended by striking out the word "and" at the end thereof.

Section 9. § 5703 (5), Title 29, as amended, Delaware Code; is amended by changing the period at the end thereof to a semi-colon and adding the following paragraphs :

(6) As modified, the agreement shall include all services described in either paragraph (4) or paragraph (5) of this subsection and performed by individuals to whom section 218 (d) (3) (C) of the Social Security Act is applicable, and shall provide that the service of any such individual shall continue to be covered by the agreement in case he thereafter becomes eligible to be a member of a retirement system; and

(7) As modified, the agreement shall include all services described in either paragraph (4) or paragraph (5) of this subsection and performed by individuals in positions covered by a retirement system with respect to which the Governor has issued a certificate to the Secretary of Health, Education, and Welfare pursuant to section 5710 (b) of this Act.

Section 10. § 5705 (a), Title 29, Delaware Code, is amended by striking out the words "the amount of tax which would be imposed by section 1400 of" and inserting in lieu thereof the words "the amount of the employee tax which would be imposed by."

Section 11. § 5706 (a) (2), Title 29, as amended, Delaware Code, is amended by inserting immediately before the semicolon the following words :

except that it may exclude services performed by individuals to whom section 218 (d) (3) (C) of the Social Security Act is applicable.

Section 12. § 5706 (c) (2), Title 29, Delaware Code, is amended by striking out the words "the amount of tax which would be imposed by section 1400 of" and inserting in lieu thereof "the amount of the employee tax which would be imposed by."

Section 13. Chapter 57, Title 29, Delaware Code, is amended by adding thereto a new section to be known as section 5710 as follows :

§ 5710. Referenda and certification

(a) With respect to employees of the state the Governor is empowered to authorize a referendum, the cost of such referendum to be borne by the State, and with respect to the employees of any political subdivision he shall authorize a referendum upon request of the governing body of such subdivision, the cost of such referendum to be borne by the political subdivision; and in either case the referendum shall be conducted, and the Governor shall designate an agency or individual to supervise its conduct, in accordance with the requirements of section 218 (d) (3) of the Social Security Act, on the question of whether service in positions covered by a retirement system established by the state or by a political subdivision thereof should be excluded from or included under an agreement under this Act. The notice of referendum required by section 218 (d) (3) (C) of the Social Security Act to be given to employees shall contain or shall be accompanied by a statement, in such form and such detail as the agency or individual designated to supervise the referendum shall deem necessary and sufficient to inform the employees of the rights which will accrue to them and their dependents and survivors, and the liabilities to which they will be subject, if their services are included under an agreement under this Act.

(b) Upon receiving evidence satisfactory to him that with respect to any such referendum the conditions specified in section 218 (d) (3) of the Social Security Act have been met, the Governor shall so certify to the Secretary of Health, Education, and Welfare.

Approved July 14, 1955.