County and Municipal Pension Plan

Del. Code tit. 29, ch. 55A
in effect

Del. Code tit. 29, § 5551 Definitions.

As used in this chapter: (1) “Approved medical leave” means a leave of absence from employment, without pay, for a definite period of time, authorized by the employer, and necessitated by the employee’s mental and/or physical condition. Approved medical leaves shall not exceed 1 year unless extended by the Board of Pension Trustees. (2) “Board” shall mean the Board of Pension Trustees established by § 8308 of this title. (3) “Compensation” shall mean all salary, wages and fees, including overtime payments and special payments for extra duties, payable to a member for service credited under paragraph (4)a. of this section and the value of any maintenance provided for the member as part of such payments. (4) “Credited service” shall mean, for any individual: a. Service as an employee after the date of affiliation with the Fund by the employer, excluding any period during which an employee is on an approved medical leave or approved sabbatical leave unless service credit for such period or periods of leave is purchased pursuant to paragraph (4)e. or f. of this section. b. “Equalized state service” shall mean: 1. Years of service as an “employee” as defined in § 5501(f)(1) and (3) of this title, multiplied by 30/30, provided that the individual is not accruing nor collecting benefits under Chapter 55 of this title. It shall not include service for which the employee has received the withdrawal benefit provided by § 5530 of this title, or the refund provided by § 5523(b) of this title, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized. 2. Years of service as an “employee” as defined in § 8351(5) of Title 11, multiplied by 3 0 / 2 5 , provided that the individual is not accruing nor collecting benefits under subchapter III of Chapter 83 of Title 11. It shall not include service for which the employee has received the withdrawal benefit provided by § 8374 of Title 11, or the refund provided by § 8364(d) of Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized. 3. Years of service as an “employee” as defined in § 8801(5) of Title 11, multiplied by 3 0 / 2 5 , provided that the individual is not accruing nor collecting benefits under Chapter 88 of Title 11. It shall not include service for which the employee has received the withdrawal benefit provided by § 8824 of Title 11, or the refund provided by § 8814(d) of Title 11, unless such benefit or refund is first repaid with interest at a rate determined by the Board before such service may be equalized. c. Restored credited service. — If a member ceases to be an employee before the member has acquired 5 years of credited service, the member’s service credits to the date of termination shall be cancelled but shall be restored if: 1. The member’s cessation of employment is due to absence on account of military service, disability or approved leave, under such rules as the Board may adopt, and the member again becomes an employee within 4 months after such absence; or 2. The member again becomes an employee within 4 months after such cessation of employment; or 3. The member subsequently acquires 5 years of credited service, provided that if the member has withdrawn the member’s contributions the member repays them with interest at a rate determined by the Board. d. Purchased service. — A member may elect to purchase (i) up to 5 years of credited service for full-time active duty in the Armed Services of the United States, and/or (ii) up to 5 years of credited service for full-time employment performed for another state, a political subdivision of another state or other service with the State for which the employee will not receive pensionable credit in another Delaware State Pension Plan, a county or municipality of the State, the federal government or an accredited private school or college, provided that the member pays into the Fund, on or before the date of issuance of the member’s first benefit check, a single lump sum payment equal to the actuarial value of the pension benefits to be derived from such service credits computed on the basis of actuarial assumptions approved by the Board and the member’s attained age and final average compensation. Any credited service purchased under this paragraph shall not be used to determine eligibility for benefits under this chapter. e. Approved medical leave if the member subsequently accrues at least 1 year of credited service under paragraph (4)a. of this section and pays into the Fund prior to the issuance of his or her first pension check, contributions determined by multiplying the rates in effect at the time of payment for member contributions and employer contributions times the average of the 60 months of creditable compensation used to calculate the member’s pension benefit times the months or fractions thereof so credited. Any credited service purchased for medical leave shall not be used to determine eligibility for benefits under this chapter. f. Approved sabbatical leave if the member pays into the Fund, prior to the issuance of his or her first pension check, contributions equal to the sum of the employee contributions and employer contributions which would have been made to the Fund during such periods of sabbatical leave, with the amount of such contributions to be determined in accordance with rules and regulations adopted by the Board. g. Service as an employee before the date of affiliation with the Fund by the member’s employer, provided the actuarially-determined past service cost associated with such service is paid into the Fund on a schedule approved by the Board of Pension Trustees. (5) “Employee” shall mean: a. An individual who is employed on a full-time or annual basis or on a regular part-time basis, as the terms “full-time or annual basis” and “regular part-time basis” are defined in rules and regulations adopted by the Board, by an employer; b. An elected or appointed official; c. A person defined in paragraph (5)a. or b. of this section during the period he or she is on an approved medical or sabbatical leave; d. A person who is a paid employee of a volunteer fire company or a volunteer ambulance company in Delaware; or e. A person who is a paid nonstate employee of the Delaware State Housing Authority or of any of its subsidiaries. (6) “Employer” shall mean a county or municipality, including state governmental subdivisions, Delaware State Housing Authority, volunteer ambulance companies, and volunteer fire companies, in Delaware which has affiliated with the Fund established by Chapter 55 of this title as provided in § 5555 of this title. (7) “Final average compensation” shall mean 1 / 6 0 of the compensation paid to an employee during any period of 60 consecutive months or any 60 months comprised of 5 periods of 12 consecutive months in his or her years of credited service in which his or her compensation was highest. (8) The clause “for which he or she is eligible under the Federal Social Security Act” [42 U.S.C. § 301 et seq.] shall mean the old age insurance benefit or the disability insurance benefit for which a member is or will be eligible by virtue of age and his or her wage credits under the Federal Social Security Act, based on his or her final average compensation and the Federal Social Security Act in effect when the member ceased to be an employee under this chapter and computed in accordance with rules and regulations approved by the Board, regardless of any other factors such as, without limitation, whether the member has made application for social security benefits or is subsequently employed. (9) “Fund” shall mean the Fund established by § 5593 of this title. (10) “Inactive member” shall mean a member who: a. Has terminated service; b. Is not eligible to begin receiving a service or disability pension; and c. Has neither applied for nor received a refund of the member’s contributions. (11) “Member” shall mean a person who is an employee on or after the date the employer affiliates with the Fund. (12) “Retired member” shall mean a member who has terminated service, other than an inactive member, who is eligible to receive a service or disability pension under this chapter.

Del. Code tit. 29, § 5552 Employment of pensioners.

An individual shall not receive a pension under this chapter for any month during which the individual is an employee, unless the individual is: (1) An official elected by popular vote at a regular or special election; or (2) An official appointed by the Governor; or (3) A temporary employee whose earnings from such temporary employment do not exceed the maximum allowed by social security without affecting social security benefits; or (4) A registration or election official, or a juror.

Del. Code tit. 29, § 5553 Attachment and assignment of benefits.

Except for orders of the Delaware Family Court for a sum certain payable on a periodic basis, the benefits provided by this chapter shall not be subject to attachment or execution and shall be payable only to the beneficiary designated and shall not be subject to assignment or transfer.

Del. Code tit. 29, § 5554 Waiver of benefits.

Any individual entitled to any benefits under this chapter may decline to accept all or any part of such benefits by a waiver signed and filed with the Board. Such waiver may be revoked in writing at any time, but no payment of the benefits waived shall be made covering the period during which such waiver was in effect.

Del. Code tit. 29, § 5555 Optional participation of counties and municipalities.

Any county or municipality, including state governmental subdivisions, Delaware State Housing Authority, volunteer ambulance company, and volunteer fire company, may elect to participate in the State Employees’ Pension Fund beginning July 1 of any year on or after July 1, 1981. Application to participate shall be by resolution approved by the governing body of the county or municipality, including state governmental subdivisions and the Delaware State Housing Authority, and shall be submitted to the Board in such form as the Board shall determine, not later than 90 days prior to the date participation is to begin, except such time limit may be reduced by the Board. Any such application, upon approval by the Board, shall be irrevocable. Each participating county and municipality, including state governmental subdivisions and the Delaware State Housing Authority, shall provide such information to the Board as it may require for the administration of this chapter.

Del. Code tit. 29, § 5569 Retirement option.

When a member applies for a pension, he or she shall choose either a unified pension or an ordinary pension.

Del. Code tit. 29, § 5570 Amount of unified service, disability or survivor pension.

The amount of unified pension payable to an employee, former employee or survivor shall be the sum of: (1) The amount computed according to this chapter, exclusive of service credited under § 5551(4)b. of this title; plus (2) The sum of the amounts computed, based on credited service as an employee, according to subchapter II of Chapter 55 of this title; subchapter III of Chapter 83 of Title 11; and Chapter 88 of Title 11.

Del. Code tit. 29, § 5571 Mandatory retirement.

A member shall retire on the member’s mandatory retirement date as established by the employer.

Del. Code tit. 29, § 5572 Eligibility for service pension.

(a) A member shall become eligible to receive a service pension, beginning with the month after the member has terminated employment, if: (1) The member has 5 years of credited service, and has attained age 62; or (2) The member has 15 years of credited service, and has attained age 60; or (3) The member has 30 years of credited service. (b) An inactive member with a vested right to a service pension shall become eligible to receive such pension, computed in accordance with this chapter in effect when he or she ceased to be an employee, beginning with the first month after his or her attainment of age 62. (c) A member shall become eligible to receive a reduced service pension beginning with the month after he or she has terminated employment, if he or she has 15 years of credited service, and has attained age 55. The amount of the service pension shall be reduced by four-tenths percent for each month the member is under age 60.

Del. Code tit. 29, § 5573 Vested right to service pension.

(a) A member who has 5 years of credited service shall have a vested right to a pension. (b) An inactive member’s vested right shall be forfeited upon an application for a refund of the member’s accumulated contributions and cancellation of membership.

Del. Code tit. 29, § 5574 Eligibility for disability pension.

(a) A member who has 5 years of credited service, develops a disability and is no longer employed shall become eligible to receive a disability pension beginning with the month following the inception of his or her disability. Such member shall cease to be eligible at the end of the month in which he or she recovers from disability, if such recovery occurs before his or her attainment of age 60. (b) A member shall be deemed to have a disability who is unable to engage in any substantial gainful activity for which the employee is reasonably suited by training or experience by reason of any medically determinable physical or mental disability which can be expected to result in death or to last for a period of not less than 12 months.

Del. Code tit. 29, § 5575 Payment of service pension.

Service pension payments shall be made to a retired member for each month beginning with the month in which the retired member became eligible to receive such pension and ending with the month in which the retired member dies.

Del. Code tit. 29, § 5576 Payment of disability pension.

(a) Disability pension payments shall be made to a member for each month beginning with the month in which the member becomes eligible to receive such pension and ending with the month in which the member ceases to be eligible or dies. (b) Any disability pensioner who has not attained age 60 shall report to the Board by April 30 each year in a form prescribed by the Board, the total earnings from any gainful occupation or business in the preceding calendar year. The excess of such earnings over 1 / 2 of the annual rate of compensation, adjusted annually for any increase in the total “Median Usual Weekly Earnings” as published by the U.S. Department of Labor, received by the pensioner before the pensioner developed a disability shall be deducted from the disability pension during the 12 months beginning in July of the year following the calendar year for which earnings are reported, in a manner determined by the Board. If any person received a disability pension for less than 12 months in the calendar year for which earnings are reported, the deduction, if any, shall be determined on a pro rata basis. (c) Termination of a disability pension on account of recovery from disability shall not prejudice the right of the retired member to qualify subsequently for a service pension or another disability pension.

Del. Code tit. 29, § 5577 Amount of monthly service or disability pension [For application of this section, see 79 Del. Laws, c. 315, § 10].

(a) The amount of the monthly service or disability pension payable to a retired member shall be 1 / 6 0 of the retired member’s final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the retired member’s period of credited service. (b) Notwithstanding provisions of this chapter to the contrary, a member may elect to have his or her service or disability pension computed under this chapter reduced by 2% thereby providing a survivor’s pension equal to 2 / 3 of such reduced amount to the employee’s eligible survivor or survivors at the time of the employee’s death. This election must be made in a form approved by the Board, filed prior to the issuance of the employee’s first benefit check and shall be irrevocable. (c) Notwithstanding provisions of this chapter to the contrary, a member may elect to have his or her service or disability pension computed under this chapter reduced by 3% thereby providing a survivor’s pension equal to 75% of such reduced amount to the employee’s eligible survivor or survivors at the time of the employee’s death. This election must be made in a form approved by the Board, filed prior to the issuance of the employee’s first benefit check and shall be irrevocable. (d) Notwithstanding provisions of this chapter to the contrary, a member may elect to have his or her service or disability pension computed under this chapter reduced by 6% thereby providing a survivor’s pension equal to 100% of such reduced amount to the employee’s eligible survivor or survivors at the time of the employee’s death. This election must be made in a form approved by the Board, filed prior to the issuance of the employee’s first benefit check and shall be irrevocable.

Del. Code tit. 29, § 5578 Ordinary survivor’s pension.

(a) Upon the death of a member in service who has 5 years of credited service, a monthly survivor’s pension shall be payable to his or her eligible survivor or survivors equal to 1 / 2 of the service pension for which the employee would have been eligible if he or she had been 62 years of age. (b) Upon the death of a retired member, a monthly survivor’s pension shall be payable to the retired member’s eligible survivor or survivors equal to 1 / 2 of such service or disability pension. (c) For the purpose of this section, the eligible survivors of a member or retired member shall be as follows, provided that a member may change the priority of eligible survivors specified for herein by designating his or her priority of eligible survivors on a form prescribed by the Board and filed with the Board at the time of the member’s death: (1) The widow or widower, provided such person had been married to the deceased member for at least 1 year before the date of death; or (2) If there is no eligible widow or eligible widower, a child (or with the survivor’s pension divided among them in equal shares, all such children if there are more than 1), provided the child is unmarried and either: a. Has not attained age 18; b. Has attained age 18 but not age 22 and is attending school on a full-time basis; or c. Has attained age 18 and has a permanent disability as the result of a disability which began before the child attained age 18; or (3) If there is no eligible widow, eligible widower or eligible child, a dependent parent (or, with the survivor’s pension divided between them in equal shares, both such parents if there are 2). (d) The amount payable to a widow or widower who has not attained age 50 at the time the survivor’s pension begins shall be actuarially reduced, in accordance with actuarial tables approved by the Board, for each month the survivor is under age 50 at such time; provided, however, that the actuarial reduction for any such widow or widower shall not apply for the period during which such widow or widower has in his or her care a son or daughter who is unmarried and either: (1) Has not attained age 18; (2) Has attained age 18 but not age 22 and is attending school on a full-time basis; or (3) Has attained age 18 and has a permanent disability as the result of a disability which began before the child attained age 18. (e) A parent shall be deemed to have been dependent on the member or retired member who was receiving at least 1 / 2 of his or her support from the member at the time of the member’s death. (f) A survivor’s pension shall begin with the month following the month in which the member or retired member dies. If payable to a widow or widower, it shall cease with the month in which the survivor dies or marries. If payable to a parent, it shall cease with the month in which the parent dies. If payable to a child, it shall cease with the month in which the child dies or fails to meet the conditions of eligibility in paragraph (c)(2) of this section.

Del. Code tit. 29, § 5579 Death benefit.

Upon the death of a member, inactive member, retired member or individual receiving a survivor’s pension, there shall be paid to the designated beneficiary or beneficiaries or, in the absence of a designated beneficiary, to the estate of the member, inactive member, retired member or survivor, a lump sum equal to the excess, if any, of the accumulated member contributions with interest over the aggregate of all pension payments made.

Del. Code tit. 29, § 5580 Withdrawal benefit.

Upon the withdrawal from service of a member who is not eligible for a service or disability pension, the accumulated contributions with interest shall be paid to the member.

Del. Code tit. 29, § 5581 Application for benefits.

(a) A service pension, disability pension, survivor’s pension, death benefit or withdrawal benefit shall be paid only upon the filing of an application in a form prescribed by the Board. A monthly benefit shall not be payable for any month earlier than the second month preceding the date on which the application for such benefit is filed. In no event shall a withdrawal benefit be paid to an individual whose application is filed more than 5 years after the date the individual first becomes eligible to receive such benefit. (b) The Board may require any member, inactive member, retired member or eligible survivor to furnish such information as may be required for the determination of benefits under this chapter, or to authorize the Board to procure such information including, but not limited to, information regarding benefits pursuant to the Federal Social Security Act [42 U.S.C. § 301 et seq.]. The Board may withhold payment of any pension under this chapter whenever the determination of such pension is dependent upon such information and the member, inactive member, retired member or eligible survivor does not cooperate in the furnishing or procuring thereof. (c) A service pension, disability pension, or survivor’s pension applied for under this act may be paid into a Miller Trust Bank account, pursuant to the creation of an irrevocable income assignment trust (“Miller Trust”), established on behalf of an eligible pensioner or survivor covered under this chapter who is a person with disabilities, so long as the Miller Trust is established consistent with the laws of the State of Delaware, the laws of the United States and in accordance with the rules and regulations of the local and federal agencies responsible for administering assistance programs for persons with disabilities.

Del. Code tit. 29, § 5582 Increases in pensions.

Any monthly service pension, disability pension or survivor pension based on a former service or disability pension which is payable on July 7, 2005, shall be increased effective July 1, 2005, by the amount of difference between the pensioner’s computed benefit under § 5577 of this title, as effective July 1, 2005, less the benefit previously awarded under § 5577 of this title.

Del. Code tit. 29, § 5591 Member contributions.

(a) Effective January 1, 2006, 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. (b) An employee can purchase service credit or repay a withdrawal benefit using a rollover distribution from: (1) A direct rollover of an eligible rollover distribution from: a. A qualified plan described in § 401(a) [26 U.S.C. § 401(a)] of the United States Internal Revenue Code; b. An annuity contract described in § 403(b) [26 U.S.C. § 403(b)] of the United States Internal Revenue Code; or c. An eligible plan under § 457(b) [26 U.S.C. § 457(b)] of the United States Internal Revenue Code. (2) A participant contribution of an eligible rollover distribution from: a. A qualified plan described in § 401(a) [26 U.S.C. § 401(a)] of the United States Internal Revenue Code; b. An annuity contract described in § 403(b) [26 U.S.C. § 403(b)] of the United States Internal Revenue Code; or c. An eligible plan under § 457(b) [26 U.S.C. § 457(b)] of the United States Internal Revenue Code. (3) A participant rollover contribution of the portion of a distribution from an individual retirement account or annuity described in § 408 [26 U.S.C. § 408] of the United States Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income.”

Del. Code tit. 29, § 5592 Employer contributions.

The contribution of an employer for each fiscal year shall be the percentage of covered payroll approved by the Board on the basis of the most recent actuarial valuation, and shall equal: (1) The normal cost; plus (2) Adjustments for actuarial gains and losses or increases in benefits adopted on or subsequent to participation; plus (3) Administrative costs.

Del. Code tit. 29, § 5593 Establishment of Fund.

There shall be established a County and Municipal Employees’ Retirement Fund, hereinafter referred to as the “Fund,” separate and distinct from the Fund established under Chapter 55 of this title, to which county or municipal appropriations and other employer contributions shall be deposited monthly, and to which member contributions shall be deposited upon deduction from the member’s paycheck, and to which earnings on investments, 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 § 401(a)(24) [26 U.S.C. § 401(a)(24)], the assets of the Fund will be commingled in the Delaware Public Employees’ Retirement System as provided for by § 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.

Del. Code tit. 29, § 5594 Employer pickup of member contributions.

(a) Each participating employer, pursuant to the provisions of § 414(h)(2) of the United States Internal Revenue Code [26 U.S.C. § 414(h)(2)], shall pick up and pay the contributions which would otherwise be payable by the members under § 5591 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 member’s compensation. (b) Member contributions picked up by the employer shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from each member’s compensation equal to the amount of the member’s contributions picked up by the employer. This deduction, however, shall not reduce the member’s compensation for purposes of computing benefits under the retirement system pursuant to this chapter. (c) Member contributions shall be credited to a separate account within the member’s individual account so that the amount contributed prior to the effective date for the pickup of member contributions may be distinguished from the amounts contributed on or after the effective date. (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.

Del. Code tit. 29, § 5595 Payment of benefits.

Benefits shall be due and payable under this chapter only to the extent provided in this chapter, and neither the State nor the County and Municipal Employees’ Retirement Fund shall be liable for any amount in excess of such sums.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title29/c055a/sc01/index.htmlFetched: 10/4/2026