Current through 2024 Legislative Session Act Chapter 476
Section 5544 - Actuarial valuations and appropriations(a) The actuary shall prepare an actuarial valuation of the assets and liabilities of the funds as of June 30, each year. On the basis of reasonable actuarial assumptions and tables approved by the Board, the actuary shall determine the normal cost required to meet the actuarial cost of current service and the unfunded actuarial accrued liability.(b) The State's appropriation to the funds for fiscal year 2008, and for each fiscal year thereafter, shall be the percentage of covered payroll approved by the Board on the basis of the most recent actuarial valuation, and shall equal the sum of the normal cost plus the payment required to implement the provisions of subsection (c) of this section plus the payment required to amortize the unfunded actuarial accrued liability using an open amortization period of 20 years. For plan amendments effective after fiscal year 2007 the unfunded actuarial accrued liability for such amendments shall be amortized over an open amortization period of 20 years. The amortization payment shall be an amount computed as a level percentage of the prospective total covered payroll over the remainder of the amortization period, with such prospective total covered payroll to be determined on the basis of a growth rate, as determined by the Board, compounded annually. Except as provided in subsection (c) of this section, all funds appropriated pursuant to this subsection shall be deposited into the fund established by § 5541 of this title.(c)(1) In order to provide a fund for post-retirement increases, the State shall include in its annual appropriation payments equal to 2.33% of covered payroll, subject to the limitations under § 5548(a)(2) of this title. Beginning with the Fiscal Year 1994 budget, 0.70% of covered payroll shall be appropriated; in Fiscal Year 1995, 1.11% of covered payroll shall be appropriated; in Fiscal Year 1996, 1.52% of covered payroll shall be appropriated; in Fiscal Year 1997, 1.93% of covered payroll shall be appropriated; in Fiscal Year 1998 and each fiscal year thereafter 2.33% of covered payroll shall be appropriated. Funds appropriated to implement this subsection shall be deposited into the Post Retirement Fund established under § 5548 of this title.(2) In order to provide for retiree health insurance under Chapter 52 of this title, the State shall include all of the following in its annual appropriations:a. The sum of the anticipated cost of the State's retiree health insurance under Chapter 52 of this title for that year.b. At least 1% of the grand total of all General Fund operating budget appropriations for the prior fiscal year to the OPEB Fund established under § 5281 of this title.c. Prefunding to the OPEB Fund as follows: 1. In Fiscal Year 2026, in an amount equal to 0.50% of the rate of covered payroll of the Fiscal Year 2026 operating budget.2. Beginning in Fiscal Year 2027, in an amount equal to an additional 0.25% of covered payroll from the rate of covered payroll the prior fiscal year.(3)a. The total appropriated under paragraph (c)(2) of this section must not exceed the annual required contribution determined by the Board of Pension Trustees under § 5283 of Title 29.(4)a. The appropriations under paragraph (c)(2)a. and (c)(2)c. of this section must be in the annual operating Budget Appropriation Bill under § 6533 of this titleb. An appropriation under paragraph (c)(2)b. of this section may be in the annual operating Budget Appropriation Bill or a Supplementary Appropriation Bill under § 6339 of this title.(d)(1) The State's obligation to the State Employees' Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(a) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from January 1, 1994.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(a) of this title in Fiscal Year 1994, shall be the lump sum actuarial liability of the benefits granted.(e)(1) The State's obligation to the State Employees' Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(b) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from April 1, 1995.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provision of § 5532(b) of this title in Fiscal Year 1995, shall be the lump sum actuarial liability of the benefits granted.(f)(1) The State's obligation to the State Employees' Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(c) and (d) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1996.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(c) of this title in Fiscal Year 1997 shall be the lump sum actuarial liability of the benefits granted.(g)(1) The State's obligation to the State Employees' Pension Trust Fund, the State Judiciary Retirement Fund and the State Police Retirement Fund to implement the provisions of § 5532(e) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1997.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(c) of this title in Fiscal Year 1998 shall be the lump sum actuarial liability of the benefits granted.(h)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement § 5532(f) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1998.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement § 5532(f) of this title in fiscal year 1999 shall be the lump sum actuarial liability of the benefits granted.(i)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(g) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 1999.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(g) of this title in fiscal year 2000 shall be the lump sum actuarial liability of the benefits granted.(j)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund and the New State Police Retirement Fund to implement the provisions of § 5532(h) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2000.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(g) of this title in fiscal year 2001 shall be the lump sum actuarial liability of the benefits granted.(k)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund and the New State Police Retirement Fund to implement the provisions of § 5532(i)(1) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2001, pursuant to § 5548 of this title.(2) The State's obligation to the State Employees' Pension Plan to implement the provisions of § 5532(i)(2) of this title shall be treated as an actuarial loss during the next actuarial valuation process. (3) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(i) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(l)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(j) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from September 1, 2003, pursuant to § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(j) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(m)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(k) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2004, pursuant to § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(k) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (n)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(l) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2005, pursuant to § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(l) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(o)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(m) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2006, pursuant to § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(m) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(p)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(n) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from January 1, 2012, pursuant to § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(n) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund. (q)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(o) of this title shall be the payment required to amortize the unfunded accrued liability over 5 years from July 1, 2012, pursuant to § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(o) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(r)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(p) of this Chapter shall be the payment required to amortize the unfunded accrued liability over five years from January 1, 2015, pursuant to § 5548 of this Chapter.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(p) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(s)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of §5532(q) of this Chapter shall be the payment required to amortize the unfunded accrued liability over five years from July 1, 2021, pursuant to §5548 of this Chapter.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of §5532(q) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(t)(1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of § 5532(r) of this title shall be funded through the appropriation contained in the Fiscal Year 2023 One-Time Supplemental Appropriations Act for “Post Retirement Increase Supplement - FY 23”.(2) The State’s obligation to the Special Pension Fund authorized by 61 Del. Laws, c. 455, to implement the provisions of § 5532(r) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.(u)(1) The State's obligation to the State Employees' Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of §5532(s) of this Chapter shall be funded through the appropriation contained in the Fiscal Year 2025 One-Time Supplemental Appropriations Act for "Post Retirement Increase Supplement - FY 25" and through the Post Retirement Fund established in § 5548 of this title.(2) The State's obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of § 5532(s) of this title shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.Amended by Laws 2023, ch. 469,s 1, eff. 9/30/2024.Amended by Laws 2023, ch. 296,s 19, eff. 6/30/2024.Amended by Laws 2023 , ch. 100, s 1, eff. 7/17/2023.Amended by Laws 2021 , ch. 54, s 32, eff. 6/30/2021.Amended by Laws 2013 , ch. 343, s 3, eff. 7/21/2014.69 Del. Laws, c. 104, §2; 69 Del. Laws, c. 105, §3; 70 Del. Laws, c. 525, § 4; 71 Del. Laws, c. 165, § 3; 71 Del. Laws, c. 397, § 3; 72 Del. Laws, c. 152, § 3; 72 Del. Laws, c. 438, § 2; 72 Del. Laws, c. 447, § 3; 73 Del. Laws, c. 146, § 6; 74 Del. Laws, c. 183, § 3; 74 Del. Laws, c. 398, § 3; 75 Del. Laws, c. 136, § 3; 75 Del. Laws, c. 403, § 3; 76 Del. Laws, c. 70, § 7; 76 Del. Laws, c. 80, § 68; 78 Del. Laws, c. 116, §§ 3, 4; 78 Del. Laws, c. 289, § 2.;