CHAPTER 358

FORMERLY

SENATE BILL NO. 231

AN ACT TO AMEND CHAPTERS 83 AND 88, TITLE 11, CHAPTERS 55, 55A, AND 56, TITLE 29, DELAWARE CODE, RELATIVE TO EMPLOYER PICKUP OF MEMBER/EMPLOYEE PENSION CONTRIBUTIONS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 55, Title 29, Delaware Code by adding a new

Section 5547 to read as follows:

"§5547. Employer Pickup of Employee Contributions

Each participating employer, pursuant to the provisions of §414(h)(2) of the United States Internal Revenue Code, shall pick up and pay the contributions which would otherwise be payable by the employees under §5543 of this Chapter. The contributions so picked up shall be
treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the employee's compensation.

Employee contributions picked up by the employer shall be paid
from the same source of funds used for the payment of compensation to an employee. A deduction shall be made from each employee's compensation
equal to the amount of the employee's contributions picked up by the employer. This deduction, however, shall not reduce the employee's
compensation for purposes of computing benefits under the retirement system pursuant to this Chapter.

Employee contributions shall be credited to a separate account
within the employee's individual account so that the amount contributed prior to the effective date for the pickup of employee contributions may be distinguished from the amounts contributed on or after the effective date.

The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system."

Section 2. Amend Chapter 55A, Title 29, Delaware Code by adding a new

Section 5594 to read as follows:

"§5594. Employer Pickup of Member Contributions

Each participating employer, pursuant to the provisions of
§414(h)(2) of the United States Internal Revenue Code, shall pick up and pay the contributions which would otherwise be payable by the members under §5591 of this Chapter. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the member's compensation.

Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member's compensation equal to the amount of the member's contributions picked up by the employer. This
deduction, however, shall not reduce the member's compensation for purposes of computing benefits under the retirement system pursuant to this Chapter.

Member contributions shall be credited to a separate account
within the member's individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date.

The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system."

Section 3. Amend Chapter 56, Title 29, Delaware Code by adding a new

Section 5618 to read as follows:

§"5618. Employer Pickup of Employee Contributions

Each participating employer, pursuant to the provisions of
§414(h)(2) of the United States Internal Revenue Code, shall pick up and pay the contributions which would otherwise be payable by the members under §5601 of this Chapter. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the member's compensation.

Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member's compensation equal to the amount of the member's contributions picked up by the employer. This
deduction, however, shall not reduce the member's compensation for purposes of computing benefits under the retirement system pursuant to this Chapter.

Member contributions shall be credited to a separate account
within the member's individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date.

The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system."

Section 4. Amend Chapter 83, Title 11, Delaware Code by adding a new

Section 8330 to read as follows:

"§8330 Employer Pickup of Employee Contributions

Each participating employer, pursuant to the provisions of
§414(h)(2) of the United States Internal Revenue Code, shall pick up and pay the contributions which would otherwise be payable by the members under §8322 of this Chapter. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the member's compensation.

Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member's compensation equal to the amount of the member's contributions picked up by the employer. This
deduction, however, shall not reduce the member's compensation for purposes of computing benefits under the retirement system pursuant to this Chapter.

Member contributions shall be credited to a separate account
within the member's individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date.

The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system."

Section 5. Amend Chapter 83, Title 11, Delaware Code by adding a new

Section 8394 to read as follows:

"§8394. Employer Pickup of Member Contributions

(a) Each participating employer, pursuant to the provisions of

§414(h)(2) of the United States Internal Revenue Code, shall pick up and pay the contributions which would otherwise be payable by the members under §8391 of this Chapter. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the member's compensation.

Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member's compensation equal to the amount of the member's contributions picked up by the employer. This
deduction, however, shall not reduce the member's compensation for purposes of computing benefits under the retirement system pursuant to this Chapter.

Member contributions shall be credited to a separate account
within the member's individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date.

The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system."

Section 6. Amend Chapter 88, Title 11, Delaware Code by adding a new

Section 8844 to read as follows:

18844. Employer Pickup of Member Contributions

Each participating employer, pursuant to the provisions of
§414(h)(2) of the United States Internal Revenue Code, shall pick up and pay the contributions which would otherwise be payable by the members under §8841 of this Chapter. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the member's compensation.

Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member's compensation equal to the amount of the member's contributions picked up by the employer. This
deduction, however, shall not reduce the member's compensation for purposes of computing benefits under the retirement system pursuant to this Chapter.

Member contributions shall be credited to a separate account within the member's individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date.

The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system."

Section 7. This Act shall take effect on January 1 of the first calendar year succeeding its enactment.

Approved July 10, 1992.