Chapter 43. Pension For County Employees
TITLE 9
Counties
Kent County
CHAPTER 43. PENSION FOR COUNTY EMPLOYEES
§ 4301. Short title.
This chapter shall be known as the "Kent County Employees' Retirement Act."
9 Del. C. 1953, § 4301; 51 Del. Laws, c. 164.;
§ 4302. Definitions.
(a) "Covered employee" means an employee who receives a regular salary or wages wholly or in part directly or indirectly from Kent County; provided, however, that an employee shall not be considered in covered employment if he is a part-time or seasonal employee who is not regularly employed for more than 120 working days in any 1 calendar year.
(b) The following persons shall be considered "covered employees" notwithstanding other provisions of this section:
(1) Elected officials of Kent County;
(2) Justices of the peace and constables, for time spent prior to March 31, 1965;
(3) Attorneys-at-law regularly employed by Kent County and paid a monthly or annual salary, provided that any compensation paid an attorney other than as salary shall not be counted in computing the benefits under this chapter.
(c) A covered employee who shall have been employed by Kent County for at least 6 months shall be considered totally disabled if he is under the regular care of a licensed physician or Christian Science Practitioner and completely unable to engage in a regular occupation or employment during the first 24 months of a period of total disability. An employee shall be considered totally disabled after the first 24 months of a period of total disability if he is completely unable to engage in any and every gainful occupation or employment for which he is or becomes reasonably fitted by education, training or experience.
(d) "Vested portion of the pension" means that portion of the pension benefits provided for by this chapter which a covered employee is entitled to receive pursuant to the provisions of § 4320 of this title.
(e) "Continuous employment" means service without interruption except allowable interruptions aggregating not more than 5 years.
(f) "Allowable interruptions" means interruptions arising from:
(1) Disability as defined in this chapter;
(2) Leaves of absence granted to employees;
(3) Leaves of absence for entering the armed services of the United States of America as provided in § 4304 of this title;
(4) Involuntary severance of employment not due to any fault or neglect on the part of such employee; or
(5) Voluntary severance of employment for a period not to exceed 1 year; but the employee shall not be considered a covered employee during any period of such interruption. The usual vacation allowed any employee of any department or agency shall not be considered an interruption from continuous employment.
9 Del. C. 1953, § 4302; 51 Del. Laws, c. 164; 55 Del. Laws, c. 59; 56 Del. Laws, c. 297, § 2; 59 Del. Laws, c. 282, § 1.;
§ 4303. Eligibility for retirement benefits; reduction because of other benefits.
(a) A covered employee who shall have service with Kent County in continuous employment for at least 3 years shall be considered eligible for retirement benefits within the meaning of this chapter, except as otherwise provided.
(b) Any employee who is eligible for retirement benefits under this chapter and who is or will be covered by any other state or county pension plan or statute shall have his retirement payments reduced by such amount as he receives from the other pension plan or statute.
9 Del. C. 1953, § 4303; 51 Del. Laws, c. 164; 55 Del. Laws, c. 213, § 1; 59 Del. Laws, c. 282, § 2.;
§ 4304. Service in armed forces of the United States or in National Guard.
(a) In the case of an employee of Kent County who is called to the service of, or voluntarily enters the armed forces of the United States of America, or the National Guard of this State when in continuous active service, the board or department employing such employee, shall grant to such employee a leave of absence which shall cover the entire period of service, not exceeding 4 years, and upon the completion of such leave of absence and service, shall reinstate the employee in the position which he held at the time that his leave of absence was granted.
(b) If any employee of Kent County who shall have entered the armed services, as provided in subsection (a) of this section, shall have been employed in any board or department of Kent County which shall come under any pension plan enacted or to be enacted by the General Assembly of this State, the time spent by such employee in the armed services shall accrue to his benefit in establishing his right to a pension.
(c) The provisions of this section, in regard to time spent in the armed services of the United States of America in time of war, shall be deemed an exception to the provisions of § 4303 of this title.
9 Del. C. 1953, § 4304; 51 Del. Laws, c. 164.;
§ 4305. Retirement age; early retirement; mandatory retirement.
(a) Every covered employee who is eligible for retirement benefits under this chapter may be retired after such employee attains the age of 65 years (or 60 years as hereinafter provided), and shall, after retirement and during the remainder of his life, receive the vested portion of the pension fixed by this chapter, subject to such qualifications and reservations as are contained in this chapter.
(b) A covered employee who is eligible for retirement benefits under this chapter may select early retirement after serving in covered employment with Kent County for at least 15 years and attaining the age of 60 years. He shall, after such early retirement and during the remainder of his life, receive the vested portion of the pension provided by this chapter.
(c) Nothing in this chapter shall be construed to make mandatory the retirement of any employee who is not a "covered employee" as such term is defined in this chapter or who is ineligible to receive a pension because he has not worked the required number of years, except as is specifically authorized in this chapter to the contrary.
(d) Notwithstanding the other provisions of this section, a covered employee may continue active work by mutual consent on a year-to-year basis at the option of the department or agency by which he is employed. If an employee continues to be employed by Kent County beyond age 65, each such additional year shall be credited toward his retirement but no such credits shall be accumulated beyond age 70.
9 Del. C. 1953, § 4305; 51 Del. Laws, c. 164; 55 Del. Laws, c. 213, § 2; 59 Del. Laws, c. 282, § 3.;
§ 4306. Retirement pension benefits.
(a) The monthly pension payable shall be 11/2 percent of the average monthly salary of the highest 3 consecutive years of service with Kent County multiplied by the number of years which a covered employee shall have served in covered employment with Kent County.
(b) The monthly pension payment shall be one fiftieth of the monthly retiring base pay, multiplied by the number of years (a fractional period of 6 months shall not be counted) which the employee shall have served in covered employment during the period that ends on the date of retirement and includes no interruptions from continuous covered employment except allowable interruptions aggregating not more than 5 years.
Where a person eligible for a pension under this chapter shall have served in covered employment for at least 25 years and shall have served for at least 15 years thereof without interruption up to the date of retirement, his monthly pension payment shall be one sixtieth of the monthly retiring base pay multiplied by the total number of years served regardless of interruption.
(c) In the case of an employer who shall have been continuously in covered employment during the 60 consecutive months ending on the date of retirement, the "monthly retiring base pay" shall be the regular pay for covered employment paid to the employee by the county government of Kent County, during such 60 months (excluding any pay received for overtime or special work), divided by 60.
9 Del. C. 1953, § 4306; 51 Del. Laws, c. 164; 59 Del. Laws, c. 282, § 4; 65 Del. Laws, c. 313, § 1.;
§ 4307. Disability.
A covered employee who shall become disabled while in covered employment and covered under Kent County disability insurance shall be kept on the active payroll during the remainder of the calendar month in which such disability shall begin, and within the next ensuing 6 months.
9 Del. C. 1953, § 4307; 51 Del. Laws, c. 164; 59 Del. Laws, c. 282, § 5; 64 Del. Laws, c. 75, § 1.;
§ 4308. Submission of pension data to county government for determination of amount required to be raised by taxation.
(a) Each department or agency of Kent County that shall come within the provisions of this chapter shall, not less than 30 days prior to the date when the county tax rate shall be fixed by the county government in each year, submit a salary or wage payroll record to include employees eligible for pension and which shall contain the names, addresses, date of birth, date of hire and amounts for those employees who are carried on the pension rolls, plus the names and addresses and amounts to be paid employees of such department or agency who might become eligible for retirement during the following fiscal year.
(b) At the time of the establishment of the tax rate, the county government shall include, in addition to an amount for active employees' salaries or wages, the amounts for those employees who are carried on the pension roll, plus the amount for those employees who might become eligible for retirement during the period covered in such budget.
9 Del. C. 1953, § 4308; 51 Del. Laws, c. 164; 59 Del. Laws, c. 282, § 6.;
§ 4309. Pension benefits; time and manner of payment; list of pensioners; optional forms.
(a) The payment of the pension benefits under this chapter shall be made at the same time and in the same manner as salaries and wages are paid for active employees, except as otherwise provided in this chapter.
(b) The name and address of each employee receiving benefits under the provisions of this chapter, together with the amount of pension to be received at each payment by each such employee, shall be filed in the office of the Receiver of Taxes and County Treasurer.
(c) A covered employee may, with the consent of the county government of Kent County, elect in writing 1 of the following optional forms of retirement benefits:
(1) A lump sum;
(2) An annuity payable in equal monthly installments for life;
(3) A joint and survivor annuity payable in equal monthly installments during the life of the employee and after his death to his spouse or other annuitants in monthly installments either in the same amount or lesser amount;
(4) An annuity payable in equal monthly installments for the life of the participant and for a period of 10 years certain;
(5) An annuity payable in equal monthly installments for the life of the participant and for a period of 5 years certain; or
(6) Any other form of benefit approved by the county government. Should an employee fail to elect a form of settlement the employee shall receive an annuity payable in equal monthly installments for life.
9 Del. C. 1953, § 4309; 51 Del. Laws, c. 164; 59 Del. Laws, c. 282, § 8.;
§ 4310. Retirement of employee.
(a) A covered employee may request retirement with pension in accordance with this chapter by making a written request therefor to the president or chairman or other principal person of the department or agency by which he or she is employed, at least 90 days prior to the date of retirement; or the president or chairman or other principal person of the department or agency may, with the approval of a majority of the governing board of such department or agency, and in accordance with this chapter, retire a covered employee of his or their department or agency by giving written notice to the employee at least 90 days prior to the date of retirement.
(b) In either event, the president or chairman or other principal person of the department or agency shall prepare a statement in such form as may be prescribed by the Receiver of Taxes and County Treasurer to enable him to comply with the provisions of this chapter. The president, chairman or other principal person of such department or agency shall, at least 15 days prior to the date of retirement, give a certified copy of such statement to the Receiver of Taxes and County Treasurer. A copy of such statement shall also be given to the employee at least 15 days prior to the date of retirement.
9 Del. C. 1953, § 4310; 51 Del. Laws, c. 164; 59 Del. Laws, c. 282, § 9.;
§ 4311. Preservation of pension records by Receiver of Taxes and County Treasurer.
All records of whatever kind or character received or to be received by the County Treasurer on pension cases shall be kept by him as all other official records of his office are preserved.
9 Del. C. 1953, § 4311; 51 Del. Laws, c. 164.;
§ 4312. Arbitration Commission.
For the purpose of settling any controversy that may arise out of the administration of this chapter, the Arbitration Commission for Kent County is created. It shall consist of 3 persons, not more than 2 of whom shall be of the same political party, to be appointed by the county government, for a term of 4 years. The Commission shall adjudicate such controversy at a time and place to be fixed by the Commission, after due notice in writing has been given to all interested parties at least 10 days prior to the date of hearing. The Commission may administer oaths and do such acts and make such rules in the premises as the Commission deems necessary to carry into effect the provisions of this chapter. The written concurring decision of any 2 members of the Commission shall be final. The members of the Commission shall serve without compensation, but the county government shall provide for the payment of the necessary expenses of the Commission.
9 Del. C. 1953, § 4312; 51 Del. Laws, c. 164.;
§ 4313. Notice to employee of qualification for pension; resolution of county government.
When the employee is not entitled to the pension benefits of this
chapter, the Receiver of Taxes and County Treasurer shall so advise the
employee by letter, but if the employee is entitled to the pension benefits of
this chapter, the Receiver of Taxes and County Treasurer shall so advise the
county government, whereupon such county government shall prepare, sign and
seal, and deliver to the employee, an appropriate resolution in the following
form:
RESOLUTION
WHEREAS, The retirement of ....................................................................................
(Name)
…………………………. ................................................. an employee of Kent County,
(Address)
State of Delaware, from ...................................................................................................
(his or her)
duties as......................................... . in the ......................................................................
(Title of Duty) (Name of Dept. or Agency)
presents a suitable opportunity for expressing the esteem in which we hold
……………….. ................... as a faithful and satisfactory public servant; therefore,
(Name)
BE IT RESOLVED, That the County of Kent express its warmest appreciation and
thanks to
………………………………………. .............................................................................
(Name)
for the able and loyal manner in which ...........................................................................
(he or she)
has uniformly performed .......................................................................... public duties
(his or her)
and BE IT FURTHER RESOLVED, That this Resolution be ........................................
(his or her)
evidence of a right to the pension provided by the Kent County Pension Law.
(Signed)………………………………………………..
President of the Levy Court of Kent County,
State of Delaware.
…………………………………………………………
Member of the Levy Court of Kent County,
State of Delaware.
…………………………………………………………
Member of the Levy Court of Kent County,
State of Delaware.
State of Delaware.
9 Del. C. 1953, § 4313; 51 Del. Laws, c. 164.;
§ 4314. Effect of receipt of pension or other benefits under other law.
Repealed by 59 Del. Laws, c. 282, § 10, eff. Mar. 27, 1974.
§ 4315. Restrictions upon other employment by pensioner.
No person, while receiving a pension under this chapter, shall be employed by the county government, or any department or agency of such county government, in any capacity unless elected by popular vote at an election; and during such elected term, he shall not be entitled to a pension unless he serves such term of office without pay.
9 Del. C. 1953, § 4315; 51 Del. Laws, c. 164.;
§ 4316. Exemption of pension benefits from taxation, attachment; assignability of benefits.
The pension benefits mentioned in this chapter shall not be subject to attachment or execution, nor to any state or local income tax, and shall be payable only to the beneficiary designated, and shall not be subject to assignment or transfer.
9 Del. C. 1953, § 4316; 51 Del. Laws, c. 164.;
§ 4317. Funding.
(a) The county government shall establish a Pension Fund which shall be used only for the purpose of paying the benefits provided for under this chapter.
(b) An actuary shall at least annually review the Pension Fund and shall report to the county government whether any additional sums of money are needed to keep the Pension Fund actuarially sound so that sufficient funds will always be available to pay the benefits provided for under this chapter.
(c) The county government shall annually appropriate to the Pension Fund such sums as the actuary deems necessary to properly maintain the Fund.
59 Del. Laws, c. 282, § 7.;
§ 4318. Trustee.
(a) The county government may select a trustee to administer and invest the money in the Pension Fund who:
(1) May collect such sums as shall be paid to the trustee under the plan;
(2) Shall pay benefits from a fund as directed by the county government and shall be fully protected in doing so;
(3) Shall keep account of all transactions which shall be opened to inspection and audited by persons designated by the county government; and
(4) Shall not be liable for any loss to the Fund or any act done or omitted by him unless due to his own negligence, willful misconduct or lack of good faith.
(b) The trustee acting as a prudent man shall in his discretion invest principal and accumulated income without restriction to legal investments and without distinction between principal and income. The trustee may hold investments in nominee or bearer.
(c) The county government may amend or terminate its contract with a trustee provided that the amendments affecting the trustee shall require his consent and no termination or amendment shall divert any part of the Fund to any purpose other than the exclusive benefit of employees or their beneficiaries, and no amendment shall divest any vested benefit.
(d) The trustee shall be compensated in accordance with his schedule of rates in effect from time to time during the period in which his services are rendered and as agreed to by the county government and the trustee.
(e) Within 90 days after each plan year or upon his removal or resignation, the trustee shall file with the county government an account of its administration of the Fund during such year or for the end of the preceding plan year to the date of removal or resignation. Neither the county government nor any other person shall be entitled to any further accounting by the trustee.
(f) The trustee may resign by written notice to the county government which shall be effective 60 days after delivery. The trustee may be removed by the county government by written notice to the trustee which shall be effective 60 days after delivery. On resignation or removal, the trustee shall deliver the funds to his successor as soon as notified in writing by the county government that a successor has been named, provided that this shall not waive any liens the trustee may have upon the Fund for his compensation or expenses.
59 Del. Laws, c. 282, § 7.;
§ 4319. Voluntary contributions.
(a) Any covered employee employed by Kent County may elect to make voluntary contributions not to exceed 10 percent of his annual salary.
(b) Each year that the employee desires to make voluntary contributions he shall enter into an agreement with the Treasurer of Kent County authorizing the withholding of the contributions. The Treasurer shall then contribute to the plan for such employee the amount set forth in the application.
(c) Upon 90 days' notice to the County Treasurer and trustee, a voluntary contribution participant may withdraw at the end of the plan year all of the lesser of the following portion of his voluntary benefit account:
(1) The aggregate amount of his contributions but not including any earnings (including capital appreciation thereon); or
(2) The value of his voluntary benefit account as determined by the trustee.
(d) In addition to the withdrawals permitted by this section, an employee may withdraw from his voluntary benefit account the earnings on such contributions.
(e) A covered employee electing to withdraw his contributions shall not thereafter be permitted to make voluntary contributions for a period of 1 year.
(f) The notice required to be given to the County Treasurer and the trustee shall be in writing and shall specify whether contributions or the total account including earnings shall be withdrawn. All voluntary contributions and earnings thereon shall be 100 percent vested in the employee. All withdrawal payments shall be made within 90 days after the end of the plan year.
59 Del. Laws, c. 282, § 7.;
§ 4320. Vested right to benefits.
(a) A covered employee who shall have service with Kent County in continuous employment for at least 3 years shall have a vested right to the benefits provided under this chapter when the sum of his age and years of continuous employment with Kent County equal at least 50.
(b) During the 1st 12 months that an employee has a vested right to benefits under this chapter, his benefits under this chapter shall be limited to 50 percent of the amount of payments he is otherwise eligible to receive. For each additional 12 months that an employee is in covered employment the benefits which he shall be eligible for shall increase by 10 percent up to a maximum of 100 percent.
(c) Once acquiring a vested right to benefits, an employee shall not lose his right to retirement benefits at age 60 or 65, as the case may be, by reason of leaving county employment except as provided in § 4321 of this title.
(d) This section shall apply only to those employees who are employees of Kent County on or after May 1, 1973.
59 Del. Laws, c. 282, § 7.;
§ 4321. Forfeitures for cause.
In the event that a covered employee resigns or is discharged by the County because he has been guilty of committing a felony or causing the County to be placed in violation of the law, the Arbitration Commission of county government shall have the power to terminate all rights of the employee and all persons claiming benefits through him under this chapter.
59 Del. Laws, c. 282, § 7.;
§ 4322. Effect of amendments.
If a covered employee who is employed at the time an amendment of this chapter becomes effective would have received a greater benefit or been eligible for an earlier retirement, under the law in effect prior to the amendment, he shall be paid and retired under the earlier law, at his option.
59 Del. Laws, c. 282, § 7.;
§ 4323. Enactment of pension plan by ordinance.
(a) The county government shall, by ordinance, establish a funded pension program for Kent County employees upon such terms and conditions as it shall deem necessary and best.
(b) The county government shall take no action hereunder which shall deny or reduce benefits to former employees, retired employees or vested current employees who have qualified for benefits under any prior authorized pension program.
(c) At such time as the county government has by ordinance adopted such pension program, §§ 4302-4322 of this title shall be repealed.
66 Del. Laws, c. 147, § 1.;