HOUSE OF REPRESENTATIVES

152nd GENERAL ASSEMBLY

HOUSE BILL NO. 63

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO EMPLOYMENT OF PENSIONERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 5502, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5502. Employment of pensioners.

(d) Any employment under paragraph (a)(2), (a)(3) or (a)(4) of this section requires the individual to have a 6-month separation of service from his or her effective date of retirement if the individual is under age 65. Earnings from employment under paragraph (a)(3) or (a)(4) of this section will be subject to an annual earnings limit of $40,000 $50,000 , beginning in calendar year 2021 2023 . If an individual does exceed the allowable earned income the individual’s state pension benefit from this chapter shall be reduced, with a $1.00 deduction for every $2.00 earned over the annual earnings limit. The deduction will begin in July of the year following the calendar year for which the earnings are reported, in a manner as determined by the Board.

SYNOPSIS

This bill allows pensioners to earn $50,000 (instead of $40,000) before incurring a $1.00 deduction to their state pension for every $2.00 earned over that amount.