CHAPTER 575

FORMERLY SENATE BILL

NO. 778

AN ACT DIRECTING THE BOARD OF PENSION TRUSTEES TO CONDUCT A REVIEW AND ACTURIAL VALUATION OF SUGGESTED CHANGES IN THE STATE EMPLOYEES PENSION PLAN AND TO MAKE RECOMMENDATIONS TO THE 127th GENERAL ASSEMBLY FOR APPROPRIATE LEGISLATIVE ACTION TO IMPROVE AND TO PROTECT THE SOLVENCY OF SUCH PLAN.

WHEREAS, a number of bills having been introduced during the 126th General Assembly, particularly Senate Bill No. 286; and

WHEREAS, a public hearing was held on this and other bills on the 7th of June, 1972, during which a number of briefs and arguments were presented in favor of proposed amendments to pension benefits with' particular reference to reducing the number of years of service to acquire a vested pension and with respect to the reduction of the number of years of service required to receive a service pension.

NOW, THEREFORE,

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

Section 1. The Board of Pension Trustees is hereby directed to undertake forthwith a review of the provisions of the State Employees Pension Plan to determine the reasonableness of the proposed improvements in benefits by appropriate comparisons with other pension plans of state employees and including actuarial cost estimates of the various proposed changes.

Section 2. The Board of Pension Trustees shall report to the Governor and the 127th General Assembly by no later than March 1, 1973, its recommendations for changes in the pension plan to ensure equitable benefits, for those in coverage thereunder, including their dependents, and to submit appropriate estimates of the contributions and reserves that will, over a designated period of years, ensure the financial solvency of this plan and the ability

of the State of Delaware to meet its commitments to pensioners and their dependents.

Section 3. The cost of such study and report shall be considered properly chargeable to the Pension Trust Fund.

Section 4. It is the sense of the 126th General Assembly that pending the receipt of and action upon such reports and recommendations, no substantive changes shall be made in the State Employees Pension Plan.

Approved July 23, 1972.