CHAPTER 180

FORMERLY SENATE BILL NO. 359

AN ACT TO AMEND CHAPTER 55, TITLE 29, DELAWARE CODE, ENTITLED "STATE EMPLOYEES' PENSION PLAN"; CHAPTER 39, TITLE 14, DELAWARE CODE, ENTITLED "TEACHERS' RETIREMENT AND DISABILITY PENSIONS"; AND VOLUME 57, LAWS OF DELAWARE, CHAPTERS 702 AND 741.

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

Section 1. Volume 57, Laws of Delaware, Chapter 741, is amended as follows:

Section 38 is repealed.

Section 2. Chapter 55, Title 29, Delaware Code, is amended as follows:

A. § 5501 (b) (3) is amended by striking said subsection in its entirety and inserting in lieu thereof a new subsection as follows:

"(3) (i) service for which credit was allowed pursuant to section 5522 as in effect on May 31,1970 and service before June 1970 for which credit was allowed pursuant to section 5525 (a) and (b) as in effect on May 31, 1970; provided, however, that the provisions of section 5525 (c) as in effect on May 31,1970 shall remain in effect, and (ii) service as a Justice of the Peace or as a Constable for Justice of the Peace Courts, regardless of whether he was paid by salary or by fee; provided, however, that if a Justice of the Peace or a Constable for Justice of the Peace Courts is eligible for a pension under a county or municipal pension system of this State, any such service used to establish eligibility under such county or municipal pension system shall only be used in determining such as employee's eligibility under this chapter and shall not be used to determine the pension to be paid under this chapter to such an employee,"

. § 5501 (b) (4) is amended by striking said subsection in

its entirety and inserting in lieu thereof a new subsection as follows:

"(4) full time active duty, not in excess of five years, in the Armed Services of the United States during time of war or national emergency, provided that the individual became an employee within two years after completion of his tour of duty or within two years after his completion of a course of professional or vocational training, if such course was begun within two years after completion of his tour of duty, except that the aforesaid two year period within which the individual must become an employee shall not apply to full time officers and members of the National Guard of the State of Delaware who were active members of the State Employees' Pension Plan on June 1, 1970."

C. §5501 (b) (5) is amended by striking said subsection in its entirety and inserting in lieu thereof a new subsection as follows:

"(5) service in professional educational employment, not in excess of four years, performed for another State, a municipality in another State, the Federal Government, or an accredited private school or college, provided that the individual who rendered such service (i) subsequently becomes an employee as a school teacher, professional administrative or supervisory employee or school nurse employed in a public school, the State Department of Public Instruction, the University of Delaware, Delaware State College, or Delaware Technical and Community College, and (ii) on or before the date of his application for a pension, pays into the Fund an amount equal to 5% of his final average compensation for each month so credited; provided, however, that an individual shall not be permitted to obtain credited service under this section for out-of-state professional educational employment for any month during which such individual received a pension under this chapter."

D. § 5501 (d) is amended by striking said subsection in its

entirety and inserting in lieu thereof a new subsection as follows:

"(d) 'Final average compensation' shall mean, for any individual, the average compensation paid to him per month during the period of sixty consecutive months in his years of service credited under paragraph (b) (1), (2), and (3) in which his

compensation was highest, except that any part of such final average compensation in excess of $2,000 shall be excluded."

E. § 5501 (e) is amended by striking said subsection in its entirety and inserting in lieu thereof a new subsection as follows:

"(e) 'Board' shall mean the Board of Pension Trustees established by section 8308 of Chapter 83, Title 29, Delaware Code."

F. § 5505 is amended by striking said section in its entirety and inserting in lieu thereof a new section as follows:

§ 5505. University of Delaware

Any sections of this chapter to the contrary notwithstanding —

(a) The term employee as used in this chapter shall exclude all designated faculty and designated professional staff of the University of Delaware who are first employed by the University after June 1, 1970.

(b) Faculty and designated professional staff of the University of Delaware who, as of January 1, 1971, have less than five years of credited service, exclusive of service credited under section 5501 (b) (4) or (5), and are in a position covered by the Teachers' Insurance and Annuity Association Retirement Plan shall cease to be employees under this Chapter on January 1, 1971 and shall have their accumulated contributions with interest refunded upon the filing of an application on or after January 1, 1971, in a form prescribed by the Board.

(c) Faculty and designated professional staff of the University of Delaware who, as of January 1, 1971, have had five or more years of credited service, exclusive of service credited under section 5501 (b) (4) or (5), and are in a position covered by the Teachers' Insurance and Annuity Association Retirement Plan may, effective January 1, 1971, elect to either

(1) continue to be an employee under this chapter and continue to make the contributions required under section 5543, or

(2) cease to be an employee under this chapter and leave their accumulated contributions in the State Employees' Retirement Fund, or

(3) cease to be an employee under this chapter and have their accumulated contributions with interest refunded upon the filing of an application on or after January 1, 1971, in a form prescribed by the Board.

(d) Faculty and designated professional staff who leave their accumulated contributions in the State Employees' Retirement Fund in accordance with paragraph (c) (2) shall become eligible to receive a service pension or acquire a vested right to a service pension in accordance with section 5522 and section 5523, respectively, provided that their age and total years of credited service under this chapter plus their years of service with the University of Delaware after January I, 1971, meet the requirements of section 5522 or section 5523. The amount of the monthly service pension payable to any such faculty or designated professional staff shall be 1/60 of his final average compensation as of January I, 1971, multiplied by the number of years, taken to the nearest twelfth of a year, in his period of credited service under this chapter, subject to a maximum of $1,000.

(e) Faculty and designated professional staff who leave their accumulated contributions in the State Employees' Retirement Fund in accordance with paragraph (c) (2) shall become eligible to receive a disability pension or, in the event of death before commencement of service or disability pension payments, a monthly survivor's pension shall be payable to their eligible survivor or survivors only if they are eligible to receive a service pension under section 5522 (a) (2) or (3) as of January I, 1971. All other such faculty and designated professional staff shall not become eligible to receive a disability pension or, in the event of death before commencement of service pension payments, a monthly survivor's pension shall not be payable to their eligible survivor or survivors. In the event any such individual dies after commencement of service or disability pension payments, the provisions of section 5528 (b) shall apply, provided that such individual had fifteen years of credited service under this chapter, exclusive of service credited under section 5501 (b) (4) or (5), as of January 1, 1971.

(f) By October 1 of each year beginning with 1970, the University of Delaware shall submit to the Board a list of the faculty and designated professional staff who are not employees under this chapter and are covered by the Teachers' Insurance and Annuity Association Retirement Plan, showing the estimated salaries of such faculty and professional staff for the fiscal year beginning July 1 of the following year. The Board shall apply the normal rate of contribution determined in accordance with section 5544 to the total estimated salaries of such faculty and professional staff and report the resulting amount to the Budget Director of the State by November 1 of each year beginning with 1970. The State shall appropriate such amount from the General Fund to the University of Delaware each fiscal year, payments of which shall be made in equal monthly installments, beginning with the fiscal year beginning July 1, 1971.

(g) § 5526 (b) is amended by striking said subsection in its entirety and inserting in lieu thereof a new subsection as follows:

"(b) Any disability pensioner who has not attained age sixty shall report to the Board by February 15 each year, beginning in 1972, in a form prescribed by the Board, his total earnings from any gainful occupation or business in the preceding calendar year. The excess of such earnings over one-half of the annual rate of compensation received by him before he became disabled shall be deducted from his disability pension during the twelve months beginning in March of the year following the calendar year for which earnings are reported, in a manner determined by the Board. If any person received a disability pension for less than twelve months in the calendar year for which earnings are reported, the deduction, if any, shall be determined on a pro rata basis."

(h) § 5527 (b) is amended by adding thereto a new paragraph (3) as follows:

"(3) Any sections of this chapter to the contrary notwithstanding, where any employee is required to retire under section 5521 and such retirement occurs after December 31, 1970, and before January 1, 1975, if such employee does not have fifteen years of such credited service but has at least five years, the minimum amount payable shall be the lesser of $10 multiplied by

the number of years, taken to the nearest twelfth of a year, in his period of credited service, or his final average compensation."

(i) § 5527 is amended by adding thereto a new subsection (d) as follows:

"(d) In the case of an elected official who is not reelected after serving at least five years in such position, the minimum amount payable shall be $10 multiplied by each year of such service, taken to the nearest twelfth of a year, and, any sections of this chapter to the contrary notwithstanding, he shall become eligible to receive a pension beginning with the first month after his attainment of age sixty."

(j) § 5528 (d) is amended by striking said subsection in its entirety and inserting in lieu thereof a new subsection as follows:

"(d) The amount payable to a widow or widower who has not attained age fifty at the time the survivor's pension begins shall be actuarially reduced, in accordance with actuarial tables approved by the Board, for each month the survivor is under age fifty at such time; provided, however, that the actuarial reduction for any such widow or widower shall not apply for the period during which such widow or widower has in his or her care a son or daughter who is unmarried and either: (i) has not attained age eighteen, (ii) has attained age eighteen but not age twenty-one and is attending school on a full-time basis, or (iii) has attained age eighteen and is permanently disabled as the result of a disability which began before he attained age eighteen."

(k) § 5541 is amended by striking said section in its entirety and inserting in lieu thereof a new section as follows:

§ 5541. Establishment of Fund

There shall be established a State Employees' Retirement Fund, hereinafter referred to as 'Fund', to which State appropriations and other employer contributions shall be deposited monthly, and to which employee contributions shall be deposited upon deduction from the employee's paycheck, and to which earnings on investments, any other contributions, gifts, donations, grants, refunds, and reimbursements shall be deposited upon receipt, and from which benefits shall be paid and fees and expenses authorized by the Board shall be paid."

(1) §5542 is amended by striking said section in its entirety and inserting in lieu thereof a new section as follows:

§ 5542. Board of Pension Trustees

The Board of Pension Trustees established by section 8308 of Chapter 83, Title 29, Delaware Code, shall be responsible for the general administration of the provisions of this chapter in accordance with the provisions of Chapter 83, Title 29, Delaware Code.

Section 3. repealed.

Section 4. as follows: Volume 57, Laws of Delaware, Chapter 702 is Chapter 39, Title 14, Delaware Code, is amended

A. § 3902 is amended by striking said section in its entirety and inserting in lieu thereof a new section as follows:

§ 3902. Retirement benefits

Teachers who were inactive in their profession on April 23, 1945, who, prior to that date, taught in the public schools of this State for twenty-five years or more and are no longer capable of teaching, and teachers who were inactive in their profession on April 23, 1945, who, prior to that date, taught in the public schools of this State for fifteen years or more and who attain the age of sixty five, shall be entitled to receive a pension out of the fund continued by section 3901 of this title for the duration of their respective lives. The amount of such pension shall be determined by the number of years of teaching service, as follows:

15 years of service, $185 per month;

16 to 20 years of service, $190 per month; 21 to 25 years of service, $200 per month; 26 or more years of service, $210 per month.

B. § 3903 is amended by striking said section in its entirety and inserting in lieu thereof a new section as follows:

§ 3903. Disability benefits

Teachers who, prior to April 23, 1945, because of failing or lost eyesight, loss of limb or other physical disability, were required to abandon the teaching profession, and, by reason of such disability, are incapable of securing employment producing a living wage, and who taught as many as three school years in this State, shall be entitled to receive, out of the fund continued by section 3901 of this title, the sum of $185 per month for the duration of their respective disabilities.

Section 5. Effective date

This Act shall be effective as of June 1, 1970, the effective date of Chapter 55, Title 29, Delaware Code, as amended by Volume 57, Laws of Delaware, Chapter 592; provided, however, that any increase in pensions resulting from the provisions of section 2H shall first become payable on the first day of the third month following approval by the Governor, and any increase in pensions resulting from the provisions of section 4 shall not apply retroactively, and shall first become payable on the first day of the third month following approval by the Governor. The provisions of Volume 57, Laws of Delaware, Chapter 592, except for section 5502 and section 5532, and the provisions of this Act, except for section 2H and section 4, shall not apply to any person unless he is an employee under this chapter on or after June 1, 1970 and he has contributed to the State Employees' Retirement Fund for at least one year on or after May 31, 1969.

Approved July 1, 1971.