An Act To Amend Title 29 Of The Delaware Code And Chapter 446 Of Volume 84 Of The Laws Of Delaware Relating To Pensions For The State Judiciary.
The bill revises existing provisions to create a clearer framework for contributions by judicial officers appointed after January 1, 2025. Future appointees will be required to contribute a mandatory rate of 5%. It offers an election period for current magistrates to opt into the judicial pension plan, which is expected to affect their long-term retirement benefits and financial contributions, potentially stabilizing the judicial retirement funds dependent on these contributions.
Senate Bill 42 aims to amend the provisions related to the State Judiciary Retirement Fund under Title 29 of the Delaware Code. Specifically, this bill addresses pension contributions for Justices of the Peace, Commissioners, and Magistrates, allowing them the option to remain in the State Employees Pension Plan or participate in the State Judicial Pension Plan at the previously applicable pre-tax rate. This is in response to earlier legislation that jeopardized the tax status of the retirement system, necessitating a delay in the implementation of SB174 until January 26, 2025, the effective date of SB42.
The sentiment surrounding SB42 appears to be cautiously optimistic among supporters who view it as necessary to maintain the financial viability of the judicial retirement system. Others, however, may express concerns about the increased burden on newly appointed officials due to the mandatory contribution rates established by the bill.
One of the notable points of contention arises from the irrevocability clause that pertains to the decision made by Justices of the Peace and other officials on whether to remain in their current pension plan or switch. Critics may worry that the limitations on their ability to later change their decisions could adversely impact individual financial planning and retirement outcomes for judicial officers.