CHAPTER 419
FORMERLY
SENATE BILL NO. 426
AN ACT TO AMEND TITLE 11 AND TITLE 29, DELAWARE CODE, RELATING TO THE TYPES OF ROLLOVERS ACCEPTED IN THE DELAWARE PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
Section 1. Amend §5543, Chapter 55, Title 29 of the Delaware Code, by adding a new subsection “(d)” to read as follows:
“(d) An employee can purchase service credit or repay a withdrawal benefit using a rollover distribution from:
(1) A direct rollover of an eligible rollover distribution from:
(a) a qualified plan described in §401(a) of the United States Internal Revenue Code;
(b) an annuity contract described in §403(b) of the United States Internal Revenue Code;
(c) an eligible plan under §457(b) of the United States Internal Revenue Code.
(2) A participant contribution of an eligible rollover distribution from:
(a) a qualified plan described in §401(a) of the United States Internal Revenue Code;
(b) an annuity contract described in §403(b) of the United States Internal Revenue Code;
(c) an eligible plan under §457(b) of the United States Internal Revenue Code.
(3) A participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in §408 of the United States Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income.”
Section 2. Amend §5591, Chapter 55A, Title 29 of the Delaware Code, by re-designating the existing section 5591 as subsection “(a)” of section 5591.
Section 3. Further amend §5591, Chapter 55A, Title 29 of the Delaware Code, by adding a new subsection “b” to read as follows:
“(b) An employee can purchase service credit or repay a withdrawal benefit using a rollover distribution from:
(1) A direct rollover of an eligible rollover distribution from:
(a) a qualified plan described in §401(a) of the United States Internal Revenue Code;
(b) an annuity contract described in §403(b) of the United States Internal Revenue Code;
(c) an eligible plan under §457(b) of the United States Internal Revenue Code.
(2) A participant contribution of an eligible rollover distribution from:
(a) a qualified plan described in §401(a) of the United States Internal Revenue Code;
(b) an annuity contract described in §403(b) of the United States Internal Revenue Code;
(c) an eligible plan under §457(b) of the United States Internal Revenue Code.
(3) A participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in §408 of the United States Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income.”
Section 4. Amend §8841, Chapter 88, Title 11 of the Delaware Code, by re-designating the existing text of section 8841 as subsection “(a)” of section 8841.
Section 5. Further Amend §8841, Chapter 88, Title 11 of the Delaware Code, by adding a new subsection “(b)” to read as follows:
“(b) An employee can repay a withdrawal benefit using a rollover distribution from:
(1) A direct rollover of an eligible rollover distribution from:
(a) a qualified plan described in §401(a) of the United States Internal Revenue Code;
(b) an annuity contract described in §403(b) of the United States Internal Revenue Code;
(c) an eligible plan under §457(b) of the United States Internal Revenue Code.
(2) A participant contribution of an eligible rollover distribution from:
(a) a qualified plan described in §401(a) of the United States Internal Revenue Code;
(b) an annuity contract described in §403(b) of the United States Internal Revenue Code;
(c) an eligible plan under §457(b) of the United States Internal Revenue Code.
(3) A participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in §408 of the United States Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income.”