Bill > SB42

This bill amends Delaware's State Judiciary Retirement Fund to address potential tax qualification issues and modify pension contribution rates for state judicial officers. The legislation primarily affects Justices of the Peace, Commissioners of various courts, and Magistrates in Chancery by providing them with a specific election regarding their pension plan participation. For members first covered by the revised pension plan on or after the effective date, the bill increases the mandatory contribution rate from 4% to 5% of annual compensation up to the Social Security wage base. Importantly, the bill allows these specific judicial officers to either remain in the State Employee's Pension Plan or opt into the State Judicial Pension Plan, with the option to contribute at the same rate as their previous plan. If a judicial officer chooses to participate in the State Judicial Pension Plan, they will receive accrued annual leave payouts in incremental payments over a 5-year period. The bill aims to resolve potential issues with the previous legislation that could have jeopardized the federal tax-qualified status of the Delaware Public Employees Retirement System by providing more flexible and clear guidelines for pension contributions and plan participation. The effective date of the bill is set for February 9, 2025, replacing the previously proposed January 1, 2025 implementation date.

Government Affairs, Justice

https://legis.delaware.gov/BillDetail?LegislationId=141765