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Delaware Laws | Title 29 State Government
Subchapter III. Financing and Administration

(b) The benefit granted under this section shall not be construed as a contractual obligation of the State or of the Pension Fund and may be revised or terminated by an act of the General Assembly. (13977)

(63 Del. Laws, c. 362, Sec. 1; 66 Del. Laws, c. 168, Sec. 1; 68 Del. Laws, c. 150, Sec. 1; 69 Del. Laws, c. 451, Sec. 1; 70 Del. Laws, c. 186, Sec. 1; 72 Del. Laws, c. 169, Sec. 2; 73 Del. Laws, c. 146, Sec. 5; 76 Del. Laws, c. 80, Sec. 89.) (13978)

Sec. 5547. Employer pickup of employee contributions. (13979)(Text)

(a) Each participating employer, pursuant to the provisions of Sec. 414(h)(2) of the United States Internal Revenue Code [26 U.S.C. Sec. 414 (h)(2)], shall pick up and pay the contributions which would otherwise be payable by the employees under Sec. 5543 of this title. The contributions so picked up shall be treated as employer contributions for purposes of determining the amounts of federal income taxes to withhold from the employee's compensation. (13980)

(b) Employee contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to an employee. A deduction shall be made from each employee's compensation equal to the amount of the employee's contributions picked up by the employer. This deduction, however, shall not reduce the employee's compensation for purposes of computing benefits under the retirement system pursuant to this chapter. (13981)

(c) Employee contributions shall be credited to a separate account within the employee's individual account so that the amount contributed prior to the effective date for the pickup of employee contributions may be distinguished from the amounts contributed on or after the effective date. (13982)

(d) The contributions, although designated as employee contributions, are being paid by the employer in lieu of the contributions by the employee. The employee will not be given the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the retirement system. (13983)

(68 Del. Laws, c. 358, Sec. 1.) (13984)

Sec. 5548. Establishment of Post Retirement Benefit Fund. (13985)(Text)

(a)(1) There shall be established a State Post Retirement Benefit Fund, hereinafter referred to as the "Post Retirement Fund," separate and distinct from the funds established under Sec.Sec. 5541 and 5601 of this title; Sec. 8393 of Title 11, to which state appropriations and other employer contributions shall be deposited monthly, and to which earnings on investments, refunds and reimbursements shall be deposited upon receipt, and from which such post retirement benefits as the General Assembly may hereafter legislate 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 providing funding for post retirement increases for employees retired under this chapter; Chapter 56 of this title; Chapter 83 of Title 11. (13986)

(2) The Board of Pension Trustees shall review the balance in the Post Retirement Fund at the end of each fiscal year and make any recommendations for adjustments in the funding rate for the succeeding fiscal year to ensure that the balance in this fund, net of liabilities, does not exceed 2.5% of the total projected covered payroll of the State Employees' Pension Plan (Chapter 55 of Title 29), the State Judiciary Plan (Chapter 56 of Title 29), and the new State Police Pension Plan (Chapter 83 of Title 11). (13987)

(b) In the event that the General Assembly shall introduce legislation proposing post retirement increases, the Board of Pension Trustees shall review each such proposal to determine if sufficient funds are projected to be available in the Post Retirement Fund to provide the funding necessary to fund the increase over a 5 year period. If the Board determines that insufficient funds will be available to fund the increase, they will notify the Governor and the General Assembly that an additional appropriation will be required in order to provide the post retirement increase being proposed. (13988)

(69 Del. Laws, c. 104, Sec. 1.) (13989)

Sec. 5549. Payment of benefits. (13990)(Text)

Benefits shall be due and payable under this chapter only to the extent provided in this chapter, and neither the State nor the State Employees' Pension Plan shall be liable for any amount in excess of such sums. (13991)

(71 Del. Laws, c. 132, Sec. 84.) (13992)

Sec. 5550. Establishment of Post Retirement Health Insurance Premium Fund. (13993)(Text)

Repealed by 76 Del. Laws, c. 70, Sec. 6, effective July 1, 2007. (13994)

There shall be established a State Employees' Retirement Fund, hereinafter referred to as "Fund," to which state appropriations and other employer contributions shall be deposited monthly and to which employee contributions shall be deposited upon deduction from the employee's paycheck and to which earnings on investments, any other contributions, gifts, donations, grants, refunds and reimbursements shall be deposited upon receipt and from which benefits shall be paid and fees and expenses authorized by the Board shall be paid. Subject to Internal Revenue Code Sec. 401(a)(24) [26 U.S.C. Sec. 401(a)(24)], the assets of the Fund will be commingled in the Delaware Public Employees' Retirement System as provided for by Sec. 8308 of this title. The assets of the Fund are held in trust and may not be used for or diverted to any purpose other than for the exclusive benefit of the employees and their beneficiaries. (13995)

(29 Del. C. 1953, Sec. 5541; 57 Del. Laws, c. 592, Sec. 1; 58 Del. Laws, c. 180, Sec. 2K; 71 Del. Laws, c. 121, Sec. 3; 76 Del. Laws, c. 279, Sec. 5.) (13996)

The Board of Pension Trustees, established by Sec. 8308 of this title, shall be responsible for the general administration of this chapter in accordance with Chapter 83 of this title. (13997)

(29 Del. C. 1953, Sec. 5542; 57 Del. Laws, c. 592, Sec. 1; 58 Del. Laws, c. 180, Sec. 2L.) (13998)

(a) Effective January 1, 1998, employee contributions to the Fund shall be 3% of total annual compensation in excess of $6,000. In no event shall total compensation during any calendar year in excess of $6,000 be exempt from contributions. (13999)

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