HB 80 — AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEES' PENSION PLAN.

Schwartzkopf HOUSE& OFRep. REPRESENTATIVES 151st GENERAL ASSEMBLY HOUSE AMENDMENT NO.

1Longhurst TO& HOUSERep. BILL NO.

80Minor- AMENDBrown House& BillRep. No.

80Mitchell by& insertingSen. after line 2 and before line 3 the following and redesignating accordingly:

ҤEnnis 5501.& Sen.

Definitions.Paradee Reps.

(k)Briggs “SpecifiedKing, peaceCarson, officer”Gray, shallHensley, mean:Morrison, Osienski, Ramone, D.

(1)Short, ProbationMichael andSmith, paroleSmyk, officersSpiegelman, andYearick; classifications in the Probation and Parole occupational series up to and including the Probation and Parole Director employed by the Department of Corrections;

(2)Sens. Capitol police officers;

(3)Hansen, DepartmentLawson, ofLopez, NaturalPettyjohn, ResourcesSokola, policeWalsh, officers;Wilson HOUSE OF REPRESENTATIVES 151st GENERAL ASSEMBLY HOUSE BILL NO.

(4)80 UniversityAN ofACT DelawareTO Police;AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEES' PENSION PLAN.

(5)BE DelawareIT StateENACTED UniversityBY Police;THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

(6)Section State1. Fire Marshal officers;

(7)Amend DivisionChapter of55, AlcoholTitle and29 Tobaccoof Enforcement agents and classifications in the AlcoholDelaware andCode Tobaccoby Enforcementmaking Agentsdeletions occupationalas seriesshown upby tostrike through and includinginsertions theas Directorshown ofby Alcoholunderline andas Tobaccofollows: Enforcement;

(8)§ Delaware5527 StateAmount Policeof Drugordinary Diversionservice Unitor agents;disability pension [For application of this section, see 79 Del.

(8)Laws, Justicec. of the Peace Court constables;

and315, (9)§ Probation10] and(a) The paroleamount officersof inthe monthly service or disability pension payable to an employee or former employee shall be the Serioussum Juvenileof Offender2.0% Unitof andhis senioror probationher officersfinal employedaverage compensation multiplied by the Divisionnumber of Servicesyears, fortaken Children,to Youth,the andnearest theirtwelfth Families.”of FURTHERa AMENDyear, Housein Billhis No.or her period of credited service prior to January 1, 1997, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996.

80If atthe lineemployee 5is bya insertingcorrection "(1)"officer afteror "(a)"specified aspeace itofficer appearsthen thereon.the amount of pension would also include 2.45% of his or her final average compensation multiplied by years of service above 25 years.

FURTHERThe AMENDamount Housepayable Billto No.a participant who does not make the additional contribution provided in § 5501(j) of this title for years of credited service before 1977 shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service between January 1, 1977, and December 31, 1996, plus 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1977, provided that the maximum amount based on the service before 1977 is $1,000, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996.

80(1) atIf linethe 18employee byis strikinga "(1)"correction asofficer itor appearsa thereonspecified andpeace insertingofficer inthen lieuthe thereofamount "(2)".of pension shall also include the following:

FURTHERa. AMEND House Bill No.

80Until onDecember line31, 202021, by2.45% deletingof “Until”his asor ither appearsfinal beforeaverage “December”compensation andmultiplied insertingby inyears lieuof thereofservice theabove following:25 years.

“For years of service before”.

FURTHER AMEND House Bill No.

80 on line 22 by deleting “After” as it appears before “January” and inserting in lieu thereof the following:

“For years of service on or after”.

FURTHER AMEND House Bill No.

80 by inserting after line 26 and before line 27 the following:

06/03/202101/15/2021 02:1511:12 PMAM Ҥb. 5543.

EmployeeAfter contributions.”January FURTHER1, AMEND2022, House2.5% Billof No.his or her final average compensation multiplied by the number of years of service for up to 20 years, plus 3.5% of his or her final average compensation multiplied by the number of years of service above 20 years.

80Section on2. line 32 by deleting “in excess of $6,000” and inserting in lieu thereof “in excess of $6,000”.

SYNOPSISAmend ThisChapter amendment55, changesTitle House29 Billof 80the Delaware Code by clarifyingmaking thedeletions following:as shown by strike through and insertions as shown by underline as follows:

(1)(a)(1) Effective TheJanuary revised1, pension1998, multiplieremployee onlycontributions applies to yearsthe Fund shall be 3% of servicetotal onannual orcompensation afterin Januaryexcess 1,of 2022;$6,000 provided, however, that post-2011 employees will pay an employee contribution rate of 5% of total annual compensation in excess of $6,000.

(2)In Thatno theevent employeeshall contributiontotal forcompensation aduring correctionany officercalendar oryear specifiedin peaceexcess officerof is$6,000 7%be ofexempt allfrom annualcontributions. compensation.

This(2) The amendmentemployee alsocontribution addsfor Statea Policecorrection Drugofficer Diversionor Unitspecified agents,peace whoofficer areshall notbe Delaware5% State7% Policeof Troopers,annual tocompensation thein definitionexcess of “specified$6,000 peaceprovided, officer”,however, andthat makesa clearcorrection thatofficer Delawareor Statespecified Universitypeace policeofficer officerswho areis also "specifieda peacepost-2011 officers".employee will pay an employee contribution rate of 7% of annual compensation in excess of $6,000.

SYNOPSIS This bill provides that for correction officers and specified peace officers, the amount of ordinary service or disability pension benefits given to state employees shall also include the following:

(1) Before January 1, 2022, 2.45% of his or her final average compensation multiplied by years of service above 25 years;

(2) On January 1, 2022, 2.5% of his or her average compensation multiplied by the number of years of service up to 20 years, plus 3.5% of his or her average compensation multiplied by the number of years of service above 20 years.

The increased multipliers that take effect on January 1, 2022, reflect increased costs, reduced benefits, and the need to recruit and retain qualified and competent correction officers and specified peace officers with a modernized pension benefit.

In addition, this bill amends the employee contribution for all correction officers and specified peace officers to a uniform 7%.