TITLE 29

State Government

State Planning and Property Acquisition

CHAPTER 96. State Employee Benefits Committee

§ 9601. Title.

This chapter shall be known as the “State Employee Benefits Consolidation Act.”

72 Del. Laws, c. 204, §  184 Del. Laws, c. 4, § 1

§ 9602. State Employee Benefits Committee [Effective until Jan. 1, 2025].

(a) There is hereby established a State Employee Benefits Committee (“Committee”). The Committee shall be comprised of the Lieutenant Governor, the Insurance Commissioner, the Chief Justice of the Supreme Court, the State Treasurer, the Director of the Office of Management and Budget, the Controller General, the Secretary of the Department of Human Resources, and the Secretary of Health and Social Services, or their designees, and 1 Delaware retiree, appointed by the Governor. In addition, 2 Committee members, 1 appointed by the President Pro Tempore of the Senate, and 1 appointed by the Speaker of the House of Representatives, shall be appointed from among the following organizational representatives: The President of the Delaware State Education Association or said President's designee, the Executive Director of the American Federation of State County and Municipal Employees or Executive Director's designee, the President of the Correctional Officers Association of Delaware or said President's designee, and the President of the Delaware State Troopers Association or said President's designee. Of the initial 2 organizational representatives appointed, 1 must be appointed for a 1-year term, and 1 must be appointed for a 2-year term. Thereafter, all members shall serve 2-year terms. Appointed members may not attend Committee meetings through a designee, but may attend subcommittee meetings through a designee, with the exception of the Retiree Healthcare Benefits Advisory Subcommittee. The Director of the Office of Management and Budget and the Secretary of Human Resources shall co-chair the Committee.

(b) The State Employee Benefits Committee shall have the following powers, duties and functions:

(1) With the exception of deferred compensation pursuant to Chapter 60A of this title, and any other investment or retirement savings plan, control and management of all employee benefit coverages including health-care insurance and blood bank, pursuant to Chapters 51 and 52 of this title; state employees group life insurance pursuant to Chapter 32 of Title 18; and all other currently existing and future employee benefits coverages, including but not limited to all forms of flexible benefits, dental, vision, prescription, long-term care and disability coverages.

(2) Selection of all carriers or third-party administrators necessary to provide coverages to State employees.

(3) Authority to contract on an insured or self insured basis.

(4) Authority to adopt rules and regulations for the general administration of the employee benefit coverages.

(5) Authority to make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this section.

(c) All members of the Committee and all legal, actuarial and administrative personnel shall be entitled to reimbursement for those travel and other expenses made necessary by their official duties that are approved by the Director of Statewide Benefits.

(d) The Committee shall hold regular meetings at least once every 6 months, which meetings shall be open to the public in accordance with § 10004 of this title.

72 Del. Laws, c. 204, §  170 Del. Laws, c. 186, §  175 Del. Laws, c. 88, §§  21(13), 39, 4075 Del. Laws, c. 227, §  1077 Del. Laws, c. 177, §  179 Del. Laws, c. 195, §  181 Del. Laws, c. 66, §  6084 Del. Laws, c. 42, § 184 Del. Laws, c. 4, § 1

§ 9602. State Employee Benefits Committee [Effective Jan. 1, 2025].

(a) (1) The State Employee Benefits Committee ( “Committee” ) is comprised of the following voting members, or a designee selected by the member serving by virtue of position:

a. The Lieutenant Governor.

b. The Insurance Commissioner.

c. The Chief Justice of the Supreme Court.

d. The State Treasurer.

e. The Director of the Office of Management and Budget, who serves as chair.

f. The Secretary of the Department of Human Resources.

g. The Secretary of the Department of Health and Social Services.

h. Two residents of this State who are eligible pensioners under § 5201 of this title, 1 member appointed by the President Pro Tempore of the Senate and 1 member appointed by the Speaker of the House of Representatives.

i. Two members, 1 member appointed by the President Pro Tempore of the Senate and 1 member appointed by the Speaker of the House of Representatives, from among the following persons:

1. The President of the Delaware State Education Association or designee.

2. The Executive Director of the American Federation of State, County and Municipal Employees or designee.

3. The President of the Correctional Officers Association of Delaware or designee.

4. The President of the Delaware State Troopers Association or designee.

(2) The Controller General is a nonvoting member of the Committee and may designate the Deputy Controller General to attend meetings of the Committee or a subcommittee.

(3) a. Except as provided under paragraph (a)(3)b. of this section, the appointment term for a member of the Committee is for 2 years.

b. For the initial 2 members appointed under paragraph (a)(1)i. of this section, 1 member must be appointed for a 1-year term and 1 member must be appointed for a 2-year term..

(4) Beginning at the first meeting after January 1, 2025, the Committee shall annually elect a vice-chair. A member is eligible to serve as vice-chair of the Committee if all of the following apply:

a. The member is a voting member of the Committee.

b. The member does not serve as a cabinet secretary or as the equivalent rank within the executive branch.

(b) The Committee has the following powers, duties, and functions:

(1) With the exception of deferred compensation pursuant to Chapter 60A of this title, and any other investment or retirement savings plan, control and management of all employee benefit coverages including health-care insurance and blood bank, pursuant to Chapters 51 and 52 of this title; state employees group life insurance pursuant to Chapter 32 of Title 18; and all other currently existing and future employee benefits coverages, including but not limited to all forms of flexible benefits, dental, vision, prescription, long-term care and disability coverages.

(2) Selection of all carriers or third-party administrators necessary to provide coverages to State employees and eligible pensioners.

(3) Authority to contract on an insured or self insured basis.

(4) Authority to adopt rules and regulations for the general administration of the employee benefit coverages.

(5) Authority to make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this section.

(c) All members of the Committee and all legal, actuarial and administrative personnel shall be entitled to reimbursement for those travel and other expenses made necessary by their official duties that are approved by the Director of Statewide Benefits.

(d) The Committee shall hold regular meetings at least once every 6 months. Meetings of the Committee and subcommittees are open to the public and must be in accordance with Chapter 100 of this title.

(1) a. A quorum of the Committee is a majority of its voting members. If the Committee is holding a virtual meeting, the chair or vice-chair must attend the meeting at the anchor location.

b. A quorum of a subcommittee is a majority of its voting members.

1. The chair of a subcommittee must be a voting member of the Committee.

2. If a subcommittee is holding a virtual meeting, the chair or vice-chair must attend the meeting at the anchor location.

(2) a. Appointed members may not attend Committee meetings through a designee.

b. Except for meetings of the Retiree Healthcare Benefits Advisory Subcommittee under § 9604(a) of this title, appointed members may attend subcommittee meetings through a designee.

c. A member of the Committee with the ability to designate another individual to attend a meeting must provide the designation in writing to the chair. An individual attending a meeting for a member as a designee has the same duties and rights as the member.

(3) a. Official action by the Committee requires the approval of a quorum of the Committee.

b. Official action by a subcommittee, including making findings and recommendations, requires the approval of a quorum of the subcommittee.

(4) For purposes of approving a request for proposals to select a carrier or third-party administrator for the health care insurance plan for State employees or eligible pensioners, all of the following apply:

a. The Committee must approve the request for proposals by a vote of the Committee during a public meeting under § 10004 of this title.

b. The Committee must provide the meaningful opportunity for public comment required under § 10004(a)(2) of this title before the vote under paragraph (d)(4)a. of this section.

c. The draft request for proposals prepared for the meeting under this paragraph (d)(4) is a public record under § 10002 of this title and must be included with the notice and agenda under § 10004(e)(2) of this title.

72 Del. Laws, c. 204, §  170 Del. Laws, c. 186, §  175 Del. Laws, c. 88, §§  21(13), 39, 4075 Del. Laws, c. 227, §  1077 Del. Laws, c. 177, §  179 Del. Laws, c. 195, §  181 Del. Laws, c. 66, §  6084 Del. Laws, c. 42, § 184 Del. Laws, c. 4, § 184 Del. Laws, c. 282, § 1

§ 9603. Duties of the Secretary of Human Resources [Effective until Jan. 1, 2025].

(a) The duties of the Secretary of Human Resources under this chapter shall include:

(1) The placement of all insurance with such carriers as the Committee deems appropriate.

(2) The operation of the self-insurance fund, when and if a self-insurance fund shall be established by the Committee for the operation of a self-insurance program.

(3) Centralized responsibility for the operation of the State employee benefits program vested in a single agency with an adequate staff of legal, actuarial and administrative personnel.

(4) The establishment and operation of an open bid procedure to be maintained for purchasing new employee benefits coverage from carriers and renewing existing contracts with such carriers which will permit the free forces of market competition to operate to the benefit of the state employee benefits coverage programs.

(5) The maintenance in a safe and secure place of all policies with commercial insurers and all records necessary and pertinent thereto.

(6) The maintenance in a safe and secure place of all records, accounts, claims files, statistical studies and other such records and documents necessary and proper in the administration of any self-insured program, when and if the Committee deems it necessary and proper to utilize same.

(7) Prompt notification to insurance carriers or third party administrators of the names and other necessary data related to the employees and pensioners covered by State employee benefits programs and of all changes and additions thereto, and payment of such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for insurance coverage upon the written request of any State employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such additional sums as may be required from those moneys in the General Fund not otherwise appropriated.

(8) Communication to State employees of all State employee benefits coverages and any additions or changes of benefits affecting State employees.

(9) Authority to act as agent of the State to enter into a contract or contracts with the carrier or carriers for benefits programs for State employees and pensioners.

(10) Prompt notification of the health-care insurance carrier or third party administrator of the names and other necessary data related to the employees and pensioners covered by the State employees’ health insurance program and of all changes and shall pay such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for health-care insurance coverage upon the written request of any state employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such addition sums as may be required from those moneys in the General Fund not otherwise appropriated.

(b) The Controller General’s Office must provide comprehensive biannual public reports on the work of the Committee to the General Assembly by May 30 and November 30 of each year.

72 Del. Laws, c. 204, §  175 Del. Laws, c. 88, §  20(6)81 Del. Laws, c. 66, §  6184 Del. Laws, c. 4, § 1

§ 9603. Duties of the Secretary of the Department of Human Resources [Effective Jan. 1, 2025].

(a) The duties of the Secretary of the Department of Human Resources under this chapter shall include all of the following:

(1) The placement of all insurance with such carriers as the Committee deems appropriate.

(2) The operation of the self-insurance fund, when and if a self-insurance fund shall be established by the Committee for the operation of a self-insurance program.

(3) Centralized responsibility for the operation of the State employee benefits program vested in a single agency with an adequate staff of legal, actuarial and administrative personnel.

(4) The establishment and operation of an open bid procedure to be maintained for purchasing new employee benefits coverage from carriers and renewing existing contracts with such carriers which will permit the free forces of market competition to operate to the benefit of the state employee benefits coverage programs.

(5) The maintenance in a safe and secure place of all policies with commercial insurers and all records necessary and pertinent thereto.

(6) The maintenance in a safe and secure place of all records, accounts, claims files, statistical studies and other such records and documents necessary and proper in the administration of any self-insured program, when and if the Committee deems it necessary and proper to utilize same.

(7) Prompt notification to insurance carriers or third party administrators of the names and other necessary data related to the employees and pensioners covered by State employee benefits programs and of all changes and additions thereto, and payment of such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for insurance coverage upon the written request of any State employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such additional sums as may be required from those moneys in the General Fund not otherwise appropriated.

(8) a. Communication to State employees of all State employee benefits coverages, any additions or changes of benefits affecting State employees, and all information communicated under paragraph (a)(8)b. of this section.

b. Communication to eligible pensioners, as defined in § 5201 of this title, of all of the following:

1. All benefits coverages available to eligible pensioners.

2. Any additions or changes in benefits coverages affecting eligible pensioners.

3. Any proposed additions or changes in benefits coverages affecting eligible pensioners.

(9) Authority to act as agent of the State to enter into a contract or contracts with the carrier or carriers for benefits programs for State employees and pensioners.

(10) Prompt notification of the health-care insurance carrier or third party administrator of the names and other necessary data related to the employees and pensioners covered by the State employees’ health insurance program and of all changes and shall pay such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for health-care insurance coverage upon the written request of any state employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such addition sums as may be required from those moneys in the General Fund not otherwise appropriated.

(b) The Controller General’s Office must provide comprehensive biannual public reports on the work of the Committee to the General Assembly by May 30 and November 30 of each year.

72 Del. Laws, c. 204, §  175 Del. Laws, c. 88, §  20(6)81 Del. Laws, c. 66, §  6184 Del. Laws, c. 4, § 184 Del. Laws, c. 282, § 2

§ 9604. Retiree Healthcare Benefits Advisory Subcommittee.

(a) There is hereby established a Retiree Healthcare Benefits Advisory Subcommittee (“Subcommittee”). The Subcommittee shall be comprised of the Lieutenant Governor, the Insurance Commissioner, the Director of the Office of Management and Budget, the Secretary of Finance, the Secretary of the Department of Human Resources, 1 member of each caucus of the Delaware House of Representatives appointed by the Speaker of the House, and 1 member of each caucus of the Delaware State Senate appointed by the President Pro Tempore. In addition, the Governor shall appoint 1 retired state employee from each County and 1 representative of a union of state employees, the Speaker of the House shall appoint 1 representative of a union of state employees, and the President Pro Tempore of the Senate shall appoint 1 representative of a union of state employees. The Lieutenant Governor shall serve as Chair, and the members of the majority caucus from the House of Representatives and the Senate shall serve as Co-Vice Chairs of the Subcommittee. Appointed members may not attend Subcommittee meetings through a designee. The Delaware Department of Justice shall provide legal support and the Department of Human Resources shall provide administrative support to the Subcommittee. Additional support shall be provided by the State Office of Pensions and Department of Finance as may be requested by the Chairs.

(b) The General Assembly recognizes the importance and urgency of addressing Delaware retiree healthcare benefits. Thus, the Subcommittee shall have the following powers, duties and functions:

(1) Conduct public meetings and receive public comment about current and future Delaware retiree healthcare benefits, including the previously proposed Medicare Advantage Plan for Delaware retirees, while taking into consideration the previous work of the State Employee Benefits Committee and the Retirement Benefit Study Committee.

(2) In the course of its work, consider how reporting and analyses regarding Medicare Advantage Plans nationwide relate to the terms of the previously proposed Medicare Advantage Plan for Delaware retirees;

(3) Study, review, and evaluate the fiscal and other implications of the extension of the existing Medicare Supplement plan to January 1, 2024.

(4) Evaluate options for continuing to provide strong Delaware retiree healthcare benefits in a fiscally sustainable way, including options to maintain their current coverage similar to residents in other states that offer a choice to buy into a Medicare Supplement plan.

(5) By May 1, 2023, issue findings and recommendations to the Governor and the General Assembly about the foregoing as they relate to the Fiscal Year 2024 Delaware budget.

84 Del. Laws, c. 4, § 1