CHAPTER 279
FORMERLY
SENATE BILL NO. 284
AN ACT TO AMEND TITLES 11, 16, AND 29 OF THE DELAWARE CODE MAKING TECHNICAL CHANGES TO STATUTES OF THE PENSION PLANS ADMINISTERED BY THE DELAWARE PUBLIC EMPLOYEES RETIREMENT SYSTEM PURSUANT TO INTERNAL REVENUE CODE PROVISIONS GOVERNING GOVERNMENTAL PENSION PLANS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):
Section 1. Amend subsection (c), §8308, Chapter 83, Title 29 of the Delaware Code by striking paragraph (4) in its entirety, and substituting in lieu thereof the following:
"(4) To maintain and invest the pension funds qualified under Internal Revenue code section Section 401(a) of the Delaware Public Employees Retirement System. The assets of such funds may be commingled for investment purposes but will be maintained separately for accounting purposes. Fees and expenses authorized by the Board shall be paid from the assets of each separate fund as applicable. The Board shall also have the power and duty to maintain and invest the Volunteer Fireman's Pension Fund under Section 457(e)(11) of the Internal Revenue Code. The assets of such fund will be invested separately and maintained separately for accounting purposes. Fees and expenses authorized by the Board shall be paid from the assets of such fund.”
Section 2. Amend subsection (c), §8308, Chapter 83, Title 29 of the Delaware Code by striking paragraph (9) in its entirety, and substituting in lieu thereof the following:
“(9) a. In any Pension Office appeal hearing submitted to the Board, the Board shall designate 1 or more of its members to act as hearing officer(s). The hearing officer(s) shall hear the evidence and arguments presented by the parties. The hearing officer(s) shall have all the powers of the Board in exercise of their responsibilities during the hearing.
b. In every case, the hearing officer(s) shall prepare and transmit a decision containing the findings of fact and conclusions of law to the Board within 60 days of the hearing for consideration at the next regularly scheduled Board meeting.
c. The Board may accept, reject or modify the hearing officer(s)' decision and shall prepare a final decision (“Final Decision”). Within five days of the Board meeting, the Final Decision shall be mailed to the parties on record at their designated addresses via first class U.S. mail.
d. The Board's Final Decision may be appealed to the Superior Court within 30 days after it is mailed to the parties by the Board. The appeal shall be on the record established at the hearing.”
Section 3. Amend §8308(c), Chapter 83, Title 29 of the Delaware Code by adding a new paragraph (13) thereto as follows:
“(13) To adopt rules and regulations appropriate or necessary to maintain the qualified status of each state pension plan and benefit set forth in subsection (b) of this section under Internal Revenue Code Sections 401(a) and 414 (d) or such other provision of the Internal Revenue Code as applicable.”
Section 4. Amend §8308(c), Chapter 83, Title 29 of the Delaware Code by adding a new paragraph (14) thereto as follows:
“(14) To adopt by rule and regulation a qualified excess benefit arrangement under Internal Revenue Code Section 415(m) with respect to any state pension plan that is qualified under Internal Revenue Code Sections 401(a) and 414(d) in order to pay benefits that cannot be paid from that pension plan because of the limits under Code Section 415."
Section 5. Amend §5541, Title 29 of the Delaware Code, by striking the last sentence of that section and substituting in lieu thereof the following sentences:
“Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 6. Amend §5601(b), Title 29 of the Delaware Code, by striking the last sentence of that subsection and substituting in lieu thereof the following sentences:
“Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 7. Amend Chapter 56, Title 29 of the Delaware Code by adding a new §5622 thereto as follows:
Ҥ 5622. Establishment of Fund.
“There shall be established a State Judiciary Retirement Fund, hereinafter referred to as "Fund," to which state appropriations and other employer contributions shall be deposited monthly and to which employee contributions shall be deposited upon deduction from the employee's paycheck and to which earnings on investments, any other contributions, gifts, donations, grants, 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. Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 8. Amend §5593, Title 29 of the Delaware Code, by striking the last sentence of that section and substituting in lieu thereof the following sentences:
“Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 9. Amend Chapter 83, Title 11 of the Delaware Code by adding a new §8334 thereto as follows:
Ҥ 8334. Establishment of Fund.
There shall be established a State Police Retirement Fund, hereinafter referred to as "Fund," to which state appropriations and other employer contributions shall be deposited monthly and to which employee contributions shall be deposited upon deduction from the employee's paycheck and to which earnings on investments, any other contributions, gifts, donations, grants, 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. Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 10. Amend §8393, Title 11 of the Delaware Code, by striking the last sentence of that section and substituting in lieu thereof the following sentences:
“Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 11. Amend §8843, Title 11 of the Delaware Code, by striking the last sentence of that section and substituting in lieu thereof the following sentences:
“Subject to Internal Revenue Code Section 401(a)(24), the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries.”
Section 12. Amend Chapter 89A, Title 11 of the Delaware Code by striking said Chapter in its entirety.
Section 13. Amend §6661, Title 16 of the Delaware Code, by striking the last sentence of that section and substituting in lieu thereof the following sentences:
“Subject to Internal Revenue Code Section 457(e)(11), the assets of the Fund will be invested by the Board as provided for by §8308 of this Title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the members.”
Section 14. Amend §8308(l), Chapter 83, Title 29 of the Delaware Code by adding a new paragraph (3) thereto as follows:
“(3) The governing body or investing authority of a local government, meaning any city, town or county in Delaware, may pay Other Post Employment Benefit funds of the local government into the Local Government Retirement Investment Pool which shall be in the custody of the Board of Pension Trustees. The Board of Pension Trustees shall invest the funds in the same manner and in the same types of investments and subject to the same limitations provided for the deposit and investment of state Other Post Employment Benefit funds. Funds of the local governments may be commingled with funds of the state Other Post Employment Benefit trust for investment purposes only and shall be accounted for separately.”