148th GENERAL ASSEMBLY

FISCAL NOTE

Bill: HOUSE BILL NO. 363

sponsor: Representative Mitchell

DESCRIPTION: AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEES PENSION PLAN.

ASSUMPTIONS:

1. This Bill defines “Specified Peace Officers” and pension contribution rates, effective January 1, 2017. The Bill also makes “specified peace officers” eligible for retirement at 25 years of service with benefits similar to corrections officers, effective January 1, 2019.

2. This Bill identifies Probation and Parole officers employed by the Department of Corrections, Capitol Police, DNREC police officers, University of Delaware police, and State Fire Marshals as “Specified Peace Officer(s).”

3. This Bill changes “Specified Peace Officer(s)” eligibility to retire from 30 years of service to 25, beginning January 1, 2019. The enhanced benefit will be financed by higher employee pension contributions. Officers hired pre-2011 will pay 5% of their annual compensation above $6,000 and officers hired after 2011 will pay 7% of their annual compensation above $6,000, effective January 1, 2017.

4. The Pension Office estimates an additional 10 officers will retire annually, effective January 1, 2019. As the State will now incur healthcare coverage for the retired officer and his/her replacement, FY 2019’s fiscal impact includes a cost estimate for the State’s additional share of health insurance ($7,676) for the 10 officers for 6-months.

Cost:

Fiscal Year 2017 $0

Fiscal Year 2018 $0

Fiscal Year 2019 $38,380

Office of Controller General (Amounts are shown in whole dollars)

May 16, 2016

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