SENATE BILL NO. 231
AS AMENDED BY
HOUSE AMENDMENT NO. 1
AN ACT MAKING A SUPPLEMENTAL GENERAL FUND APPROPRIATION TO THE POST RETIREMENT HEALTH INSURANCE PREMIUM FUND.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
WHEREAS, the Governmental Accounting Standards Board (GASB) issued Statement No. 45; and
WHEREAS, GASB No. 45 addresses how state and local governments should account for and report their costs and obligations related to postemployment healthcare and other nonpension benefits, collectively referred to as other postemployment benefits, or OPEB; and
WHEREAS, GASB No. 45 generally requires that state and local governmental employers account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions; and
WHEREAS, to date, the State of Delaware has funded retiree health benefits almost exclusively on a pay-as-you-go basis, and substantial resources will be required to be allocated to avoid a substantial unfunded liability associated with retiree benefits, as reported pursuant to GASB No. 45; and
WHEREAS, in recognition of this Governor Minner has issued Executive Order Number 67 establishing the Retirement Benefit Study Committee; and
WHEREAS, the Retirement Benefit Study Committee is comprised of a number of public and private sector representatives has been charged with recommending strategies to the Governor and General Assembly to address Delaware’s response to GASB No. 45; and
WHEREAS, the Retirement Benefit Study Committee shall issue a written report of its findings and recommendations to the Governor, General Assembly and the Delaware Economic and Financial Advisory Council by October 15, 2005; and
WHEREAS, it is in the best interest of the State to set aside surplus funds to address this issue.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. There is hereby appropriated $10,000,000 (Ten Million Dollars) in General Funds to the Department of Finance (“the Department”), Office of the Secretary (25-01-01) to be deposited into the Post Retirement Health Insurance Premium Fund (the “Fund”) as established in 29 Del. C. §5550 .
Section 2. Funds appropriated in this Act shall not be subject to reversion.
Approved June 30, 2005