CHAPTER 86
FORMERLY
SENATE BILL NO. 197
AN ACT TO AMEND CHAPTERS 83 AND 88, TITLE 11, DELAWARE CODE AND CHAPTERS 55 AND 55-A, TITLE 29, DELAWARE CODE RELATING TO PORTABILITY OF PENSION CREDIT BETWEEN STATE ADMINISTERED PENSION SYSTEMS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE Of DELAWARE:
Section 1. Amend §8351(6), Subchapter III, Chapter 83, Title 11, Delaware Code by striking said subsection in its entirety and substituting in lieu thereof the following:
"(6) Equalized State service shall mean;
(a) Years of service as an "employee" as defined in §5501(a)(1) and (2), Subchapter I, Chapter 55, Title 29, multiplied by 25/30, provided that the individual is not accruing nor collecting benefits under Chapter 55, Title 29, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §5530, Subchapter II, Chapter 55, Title 29, or the refund provided by §5523(b), Subchapter II, Chapter 55, Title 29, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(b) Years of service as an "employee" as defined in §5551(5), Subchapter I, Chapter 55A, Title 29, multiplied by 25/30, provided that the individual is not accruing nor collecting benefits under Chapter 55A, Title 29, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §5580, Subchapter II, Chapter 55A, Title 29, or the refund provided by §5573(b), Subchapter II, Chapter 55A, Title 29, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(c) Years of service as an "employee" as defined in §8801(5), Chapter 88, Title 11, multiplied by 25/25, provided that the individual is not accruing nor collecting benefits under Chapter 88, Title 11, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §8824, Chapter 88, Title 11, or the refund provided by §8814(d), Chapter 88, Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized."
Section 2. Amend §8801(6), Chapter 88, Title 11,Delaware Code by striking said subsection in its entirety and substituting in lieu thereof the following:
"(6) Equalized State service shall mean;
(a) Years of service as an "employee" as defined in §5501(a)(1) and (2), Subchapter I, Chapter 55, Title 29, multiplied by 25/30, provided that the individual is not accruing nor collecting benefits under Chapter 55, Title 29, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §5530, Subchapter II, Chapter 55, Title 29, or the refund provided by §5523(b), Subchapter II, Chapter 55, Title 29, or the refund provided by §5523(b), Subchapter II, Chapter 55, Title 29, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service maybe equalized.
(b) Years of service as an "employee" as defined in §5551(5)N Subchapter I, Chapter 55A, Title 29, multiplied by 25/30, provided that the individual is not accruing nor collecting benefits under Chapter 55A, Title 29, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §5580, Subchapter II, Chapter 55A, Title 29, or the refund provided by §5573(b), Subchapter II, Chapter 55A, Title 29, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(c) Years of service as an "employee" as defined in §8351(5), Subchapter III, Chapter 83, Title 11, multiplied by 25/25, provided that the individual is not accruing nor collecting benefits under Subchapter III, Chapter 83, Title 11, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §8374, Subchapter III, Chapter 83, Title 11, or the refund provided by §8364(d), Subchapter III, Chapter 83, Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized."
Section 3. Amend §5501(b)(13), Chapter 55, Title 29, by striking said subsection (b)(13) in its entirety and substituting in lieu thereof the following:
"(13) Equalized State service shall mean:
(a) Years of service as an "employee" as defined in §5551(5), Subchapter I, Chapter 55A, Title 29, multiplied by 30/30, provided that the individual is not accruing nor collecting benefits under Chapter 55A, Title 29, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §5580, Subchapter II, Chapter 55A, Title 29, or the refund provided by §5573(b), Subchapter II, Chapter 55A, Title 29, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(b) Years of service as an "employee" as defined in §8351(5), Subchapter III, Chapter 83, Title 11, multiplied by 30/25, provided that the individual is not accruing nor collecting benefits under Subchapter III, Chapter 83, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §8374, Subchapter III, Chapter 83, Title 11, or the refund provided by §8364(d), Subchapter III, Chapter 83, Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(c) Years of service as an "employee" as defined in §8801(5), Chapter 88, Title 11, multiplied by 30/25, provided that the individual is not accruing nor collecting benefits under Chapter 88, Title 11, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §8824, Chapter 88, Title 11, or the refund provided by §8814(d), Chapter 88, Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized."
Section 4. Amend §5551(4)(b), Chapter 55A, Title 29, by striking said subsection (4)(b) in its entirety and substituting in lieu thereof the following:
"(b) Equalized State service shall mean;
(a) Years of service as an "employee" as defined in §5501(a)(1) and (2), Subchapter I, Chapter 55, Title 29, multiplied by 30/30, provided that the individual is not accruing nor collecting benefits under Chapter 55, Title 29, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §5530, Subchapter II, Chapter 55, Title 29, or the refund provided by §5523(b), Subchapter II, Chapter 55, Title 29, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(b) Years of service as an "employee" as defined in §8351(5), Subchapter III, Chapter 83, Title 11, multiplied by 30/25, provided that the individual is not accruing nor collecting benefits under Subchapter III, Chapter 83, Title 11, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §8374, Subchapter III, Chapter 83, Title 11, or the refund provided by §8364(d), Subchapter III, Chapter 83, Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
(c) Years of service as an "employee" as defined in §8801(5), Chapter 88, Title 11, multiplied by 30/25, provided that the individual is not accruing nor collecting benefits under Chapter 88, Title 11, Delaware Code. It shall not include service for which the employee has received the withdrawal benefit provided by §8824, Chapter 88, Title 11, or the refund provided by §8814(d), Chapter 88, Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized.
Section 5. Amend Chapter 55, Title 29, Delaware Code by adding new sections to read as follows:
"§5520. RETIREMENT OPTION.
When an employee applies for a pension, he or she shall choose either a unified pension
or an ordinary pension.
§5521. AMOUNT OF UNIFIED SERVICE, DISABILITY OR SURVIVOR PENSION.
The amount of the unified pension payable to an employee, former employee or survivor shall be the sum of:
(a) The amount computed according to Chapter 55 of this title exclusive of service credited under 55501(b)(13) of this title; plus
(b) The sum of the amounts computed, based on credited service as an employee, according to Subchapter II, Chapter 55A, Title 29; Subchapter III, Chapter 83, Title 11; and Chapter 88, Title 11."
Section 6. Amend Chapter 55A, Title 29, Delaware Code by adding new sections to read as follows:
"55569. RETIREMENT OPTION.
When a member applies for a pension, he or she shall choose either a unified pension or an ordinary pension.
§5570. AMOUNT OF UNIFIED SERVICE, DISABILITY OR SURVIVOR PENSION.
The amount of unified pension payable to an employee, former employee or survivor shall be the sum of:
(a) The amount computed according to Chapter 55A of this title, exclusive of service credited under §5551(4)(b) of this title; plus
(b) The sum of the amounts computed, based on credited service as an employee, according to Subchapter II, Chapter 55, Title 29; Subchapter III, Chapter 83, Title 11; and Chapter 88, Title 11."
Section 7. Amend §8369, Chapter 83, Title 11, Delaware Code by striking said section in its entirety and substituting in lieu thereof the following:
"§8369. AMOUNT OF UNIFIED SERVICE, DISABILITY OR SURVIVOR PENSION
The amount of the unified pension payable to an employee, former employee or survivor shall be the sum of:
(a) The amount computed according to Subchapter III, Chapter 83, of this title, exclusive of service credited under §8351(6) of this title; plus
(b) The sum of the amounts computed, based on credited service as an employee, according to Subchapter II, Chapter 55, Title 29; Subchapter II, Chapter 55A, Title 29; and Chapter 88, Title 11."
Section 8. Amend §8819, Chapter 88, Title 11, Delaware Code by striking said section and substituting in lieu thereof the following:
"§8819. AMOUNT OF UNIFIED SERVICE, DISABILITY OR SURVIVOR PENSION.
The amount of the unified pension payable to an employee, former employee or survivor shall be the sum of the following:
(a) The amount computed according to Chapter 88 of this title, exclusive of service credited under §8801(6) of this title; plus
(b) The sum of the amounts computed, based on credited service as an employee, according to Subchapter II, Chapter 55, Title 29; Subchapter II, Chapter 55A, Title 29; and Subchapter III, Chapter 83, Title 11."
Section 9. Amend §8362, Chapter 83, Title 11, Delaware Code by striking the word "service" as it appears therein.
Section 10. Amend §8812, Chapter 88, Title 11, Delaware Code by striking the word "service" as it appears therein.
Section 11. Amend §8814, Chapter 88, Title 11, Delaware Code by adding a new subsection to read as follows:
"(d) A former employee's vested right shall be forfeited upon his or her application for a refund of his or her accumulated contributions."
Section 12. Amend §8364, Chapter 83, Title 11, Delaware Code by adding a new subsection to read as follows:
"(d) A former employee's vested right shall be forfeited upon his or her application for a refund of his or her accumulated contributions."
Section 13. Amend the Title of §5527, Chapter 55, Title 29, Delaware Code by inserting between the words "of" and "service" the word "ordinary".
Section 14. Amend the Title of §5577, Chapter 55A, Title 29, Delaware Code by inserting between the words "of" and "service" the word "ordinary".
Section 15. Amend the Titles of §5528, Chapter 55, Title 29, Delaware Code and §5578, Chapter 55A, Title 29, Delaware Code by inserting the word "ORDINARY" at the beginning of said titles.
Section 16. Amend the titles of §8372, Chapter 83, Title 11, Delaware Code and §8822, Chapter 88, Title 11, Delaware Code by inserting the word "ORDINARY" at the beginning of said titles.
Section 17. Amend §5551(9), Chapter 55A, Title 29, Delaware Code by striking the phrase "§5541" as it appears therein and substituting in lieu therein the phrase "§5593".
Section 18. Amend Chapter 55A, Title 29, Delaware Code by adding a new section to read as follows:
"§5593. ESTABLISHMENT OF FUND.
There shall be established a County and Municipal Employees' Retirement Fund, hereinafter referred to as the "Fund", separate and distinct from the fund established under Chapter 55 of this title, to which county or municipal appropriations and other employer contributions shall be deposited monthly, and to which member contributions shall be deposited upon deduction from the member's paycheck, and to which earnings on investments, refunds and reimbursements shall be deposited upon receipt, and from which benefits shall be paid and fees and expenses authorized by the Board shall be paid."
Approved July 11, 1989.