CHAPTER 438
FORMERLY
SENATE BILL NO. 417
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 29, OF THE DELAWARE CODE RELATING TO THE CALCULATION OF BENEFITS IN THE STATE EMPLOYEES' PENSION PLAN AND TO PROVIDE A MECHANISM TO FUND POST RETIREMENT HEALTH INSURANCE PREMIUMS FOR RETIRED STATE EMPLOYEES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
Section 1. Amend §5527(a), Chapter 55, Title 29, Delaware Code, by deleting the number “1/60” each time the same appears therein, and by substituting in lieu thereof the number “1.8%”.
Section 2. Amend §5544(b), Chapter 55, Title 29, Delaware Code by deleting said subsection in its entirety and substituting in lieu thereof a new subsection “5544(b)” to read as follows:
“(b) The State’s appropriation to the funds for the fiscal year 2002, and for each fiscal year thereafter, shall be the percentage of covered payroll approved by the Board on the basis of the most recent actuarial valuation, and shall equal the sum of the normal cost plus the payment required to implement the provisions of subsection (c) of this section plus the payment required to amortize the unfunded actuarial accrued liability over 40 years from July 1, 1975. For plan amendments effective during Fiscal Year 2001 the unfunded actuarial accrued liability shall be amortized over a 30-year period from the valuation period that the amendment is first recognized. For plan amendments effective after Fiscal Year 2001 the unfunded actuarial accrued liability for such amendments shall be amortized over a 30-year period beginning at the amendment’s effective date. The amortization payment shall be an amount computed as a level percentage of the prospective total covered payroll over the remainder of the amortization periods, with such prospective total covered payroll to be determined on the basis of a growth rate of 4% per year, compounded annually. Except as provided in subsection (c) of this section, all funds appropriated pursuant to this subsection shall be deposited into the Fund established by §5541 of this title.”
Section 3. Amend Chapter 55, Title 29, Delaware Code by adding a new subsection “5550”, to read as follows:
“5550. ESTABLISHMENT OF POST RETIREMENT HEALTH INSURANCE PREMIUM FUND.
There shall be established a State Post Retirement Health Insurance Premium Fund, separate and distinct from the Funds established under §5541 of this chapter to which state appropriations and other employer contributions shall be deposited, and to which earnings on investments, refunds, and reimbursements shall be deposited upon receipt, and from which the State’s premiums as defined in §5202(b) of this Title shall be paid, and any fees and expenses authorized by the Board shall be paid. No money shall be disbursed from this fund except for the purpose of payment of the State’s premiums for post retirement health insurance for employees retired under this Chapter of the Delaware Code.”
Section 4. Amend §5544(c), Chapter 55, Title 29, Delaware Code by redesignating said subsection as new subsection (c)(1) and by adding a new subsection designated as subsection (c)(2) to read as follows:
“(c)(2) In order to provide a fund for post retirement health insurance premiums, the state shall include in its annual appropriation payments the sum of the anticipated cost of the State’s post retirement health insurance premiums for that year, plus the greater of 5.00% of the normal cost or the difference of 2.00% of covered payroll less the amount appropriated for the normal cost and unfunded actuarial accrued liability in subsection (b) of this section. Funds appropriated to implement this subsection shall be deposited into the Post Retirement Health Insurance Premium Fund established by §5550 of this title.”
Section 5. Sections 1 and 3 shall be effective July 1, 2000. Sections 3 and 4 shall be effective July 1, 2001.