148th GENERAL ASSEMBLY

FISCAL NOTE

Bill: SENATE BILL NO. 50

sponsor: Senator Ennis

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

ASSUMPTIONS:

1. This bill clarifies the definition of a Correctional Officer in the State Employees’ Pension Plan by expanding the existing requirements from supervising inmates to also include supervising Correctional Officers.

2. House Bill 207, passed in the 147^th General Assembly, allows Correctional Officers to retire at 25 years of service without penalty. This enhanced benefit will be financed by higher employee pension contributions. Correctional Officers hired before January 1, 2012 will pay 5% of their annual compensation above $6,000 and Correctional Officers hired on or after January 1, 2012 will pay 7% of their annual compensation above $6,000.

3. An additional 30 positions are eligible for this early retirement benefit under this expanded definition of a Correctional Officer.

4. The Pension Office estimates that one additional correctional officer will retire annually.

5. Correctional Officers will be eligible to retire with 25 years of service beginning January 1, 2017. The Fiscal Year 2017 cost estimate includes the State share of health insurance for the “employee only” health insurance option for 6 months for the one additional correctional officer who will retire early under the expanded definition.

Cost:

Fiscal Year 2015 $0

Fiscal Year 2016 $0

Fiscal Year 2017 $3,358

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

April 16, 2015

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