AN ACT TO AMEND CHAPTER 55, TITLE 29, DELAWARE CODE, RELATING TO STATE PENSIONS BY INCREASING THE MAXIMUM BENEFITS PAYABLE THEREUNDER TO EMPLOYEES AND TO THEIR SURVIVING SPOUSES, AND BY ADDING THERETO A SYSTEM OF EMPLOYEE CONTRIBUTION S UNDER CERTAIN CONDITIONS.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Chapter 55, Title 29, Delaware Code, is amended by adding thereto a new subchapter to read:
SUBCHAPTER IV. CONTRIBUTORY PENSIONS
§ 5551. Pension benefits exceeding $250 a month
The maximum monthly payments as provided by section 5523 of this title shall be $500 per month, instead of $250 per month for any employee eligible for the additional payments pursuant to section 5552 of this title.
§ 5552. Eligibility for pension payments exceeding $250 per month
(a) A covered employee shall be eligible to receive a monthly payment in excess of $250 if his monthly retiring base salary exceeds $500 and if:
(1) the covered employee retires prior to July 2, 1971 and makes a payment into the State Employees' Retirement Fund at, or prior to his application for a pension, which payment shall be equal to 10% of his monthly retiring base salary times the number of months between the date of his retirement and July 1, 1971; or
(2) the covered employee retires after July 1, 1971.
(b) No payment as provided in (a) (1) herein shall be required for any portion of a monthly retiring base salary in
excess of $1,000. The payments provided for in (a) (1) herein are in addition to the payments required by section 5562 of this chapter.
(c) No covered employee who retires after July 1, 1971 shall be eligible for the additional pensions provided for by this subchapter unless the covered employee has at the time of his retirement made payments into the State Employees' Retirement Fund equal to the payments required by section 5562 of this title.
§ 5553. Election of optional benefits
Any covered employee who is in covered employment on or before June 30, 1966, may, at time of retirement, elect in writing to retire under the provisions of the law in existence prior to the effective date of this subchapter or the provisions of the law existing at the time of his retirement. If such covered employee elects to retire under the provisions of the law in existence prior to the effective date of this subchapter, any contributions he has paid into the State Employees' Retirement Fund shall be refunded to the employee.
Section 2. § 5523, Title 29, Delaware Code, is amended by adding thereto a new sentence to read:
This $250 maximum monthly payment shall not be exceeded except as provided in § 5551 of this title.
Section 3. § 5530, Title 29, Delaware Code, is amended by adding thereto a new paragraph to read:
Time shall be credited under this section only if for each month to be so credited the covered employee shall have paid into the State Employees' Retirement Fund, at, or prior to date of application for pension, an amount equal to 5% of his monthly retiring base salary as defined in § 5501 of this title. No such payment, however, shall be required for any portion of a monthly retiring base salary in excess of $1,000.
Section 4. Chapter 55, Title 29, Delaware Code, is amended by adding thereto a new subchapter to read:
SUBCHAPTER V. EMPLOYEE CONTRIBUTIONS
§ 5561. State employees' retirement fund; trustees; membership; powers and duties
(a) There shall be a State Employees' Retirement Fund hereafter referred to as "Fund".
(b) There shall be a Board of State Employees' Pension Trustees hereafter referred to as "Trustees", which shall establish and maintain the Fund.
(c) The Trustees shall consist of the Secretary of State, the Budget Director, and the President of the Farmers Bank of the State of Delaware.
(d) The Trustees shall have control and management of the State Employees' Retirement Fund provided for in this subchapter.
§ 5562. Employee; contributions to Fund; use
(a) Every covered employee whose monthly base salary exceeds $500 shall, each calendar year, beginning January 1, 1966, contribute to the State Employees' Retirement Fund, 5.70 of that portion of his annual salary which exceeds $6,000 and does not exceed $12,000 during such calendar year. Such contributions shall be deducted by the State Treasurer from the employee's salary and deposited in the Fund. In the event any state employee is employed by more than one state agency, he shall contribute to the Fund on the basis of total income from the State.
(b) The Trustees shall invest and accumulate the payments and contributions made to the Fund and shall pay from the Fund that portion of any covered employee's pension in excess of $250 monthly, or that portion of the pension of a surviving spouse in excess of $125 monthly. Such payment shall be in the form of a monthly reimbursement to the pension account of the State Treasurer for the total of all such additional pension payments made for such month to such retired or disabled employees or their surviving spouses under the appropriate provisions of this chapter. If at any time there shall be insufficient money in the Fund for the purposes of this chapter, the State Treasurer shall transfer funds from the General Fund to make up any such deficiency.
(c) If any covered employee dies or otherwise leaves State service prior to qualifying for pension or survivorship rights under this chapter, the contributions he has paid into the State Employees' Retirement Fund shall be refunded to the employee or his estate. Where applicable, the surviving spouse shall have the option of making a payment into the State Employees' Retirement Fund.
Section 5. The provisions of this Act shall become effective on June 30, 1966.
Section 6. Nothing in this Act, nor in Chapter 55, Title 29, Delaware Code, shall be construed as giving any person retired under the provisions of Chapter 55, Title 29, Delaware Code, prior to June 30, 1966, any coverage under the provisions of this Act.
Approved June 1, 1966.