CHAPTER 427

FORMERLY

HOUSE JOINT RESOLUTION NO. 19

ESTABLISHING PRINCIPLES GOVERNING ALL PENSION PLANS COVERING STATE EMPLOYEES.

WHEREAS, it is imperative that all pension plans covering state employees be operated on a fiscally sound and prudent basis; and

WHEREAS, it is recognized that certain fundamental principles should apply to all pension plans covering State employees.

NOW, THEREFORE:

BE IT RESOLVED by the House of Representatives and the Senate of the 130th General Assembly of the State of Delaware, with the approval of the Governor, that the following principles shall apply to any new pension plans covering any State employees:

(a) All such plans shall be funded on an actuarially sound basis as determined by the State Board of Pension Trustees with the concurrence of an independent enrolled actuary. Each such plan shall be valued by an enrolled actuary no less frequently than every two years. The report of the actuary shall be made available to the General Assembly, the Governor, the Board of Pension Trustees, plan participants and the general public.

(b) Benefits under all such plans should be fully vested after ten years of State employment, and all State employment shall be considered in determining eligibility for vested benefits.

(c) All State employees should be guaranteed a return of their contributions to any such Plan. Such return may be either in the form of benefits under the respective plan or in the form of a refund of the employee's contributions, plus interest, on that contribution at a rate determined by the Board of Pension Trustees.

(d) Where employees acquire Social Security benefit as a result of State service, State pension benefits and Social Security benefits should be integrated.

BE IT FURTHER RESOLVED that a copy of this Resolution be sent without delay to the Board of Pension Trustees.

Approved June 26, 1979.