CHAPTER 118

AN ACT TO AMEND CHAPTER 5, SECTION 931, DELAWARE CODE, AS AMENDED, SO AS TO PERMIT SAVINGS BANKS OR SAVINGS SOCIETIES, UNDER CERTAIN CONDITIONS, TO HAVE MORE LATITUDE IN RESPECT TO THE TERMS OF THEIR RETIREMENT PLANS AND TO HAVE THE RIGHT TO CARRY LIFE INSURANCE PROTECTION FOR OFFICERS, CLERKS AND EMPLOYEES.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. Chapter 5, Section 932, Delaware Code, as amended, be further amended by striking the second paragraph of the said section as it now appears and by substituting in lieu thereof the following:

For the purpose of establishing and maintaining a pension plan or a plan for carrying life insurance or providing other after death benefits for any of its officers, clerks of employees or their estates of beneficiaries, or a plan combining these types of benefits, any such savings bank or savings society may, in the discretion of a majority of its board of managers or governing board, segregate or allocate funds from its income or other assets and pay the same into a trust fund. Any such institution establishing such a trust fund may itself act as trustee or may have an independent trustee. Even though the ultimate benefits of the plan are paid out of such a trust fund, or even though premiums for the coverage are paid out of such a trust fund, rather than directly out of the savings institution's operating funds, unless the terms of the said trust are approved by the State Bank Commissioner as hereinafter provided, the limitations of years and percentage specified in the preceding paragraph shall remain applicable, and the only benefits payable shall be such as are authorized by the said paragraph. But if the State Bank Commissioner shall determine that the said plan is not injurious to the institution or the security of its deposits, then such benefits as may be provided by said plan may be paid to officers, clerks of employees or their estates of beneficiaries in accordance with the terms of the plan, even though these terms may not be within the limitations of the preceding paragraph. And if the plan has once been approved but is thereafter amended, the amendment shall be approved before any benefits are paid out under the amended plan.

Approved June 10, 1965.