Delaware 2025 2025-2026 Regular Session

Delaware Senate Bill SB52 Draft / Bill

                    SPONSOR:      Sen. Buckson & Rep. Shupe & Rep. Bush & Rep. K. Williams       Sens. Hocker, Lawson, Wilson; Reps. Gray, Michael Smith           DELAWARE STATE SENATE   153rd GENERAL ASSEMBLY       SENATE BILL NO. 52       AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE EMPLOYMENT OF STATE PENSIONERS.      

     

     SPONSOR:      Sen. Buckson & Rep. Shupe & Rep. Bush & Rep. K. Williams       Sens. Hocker, Lawson, Wilson; Reps. Gray, Michael Smith     

SPONSOR: Sen. Buckson & Rep. Shupe & Rep. Bush & Rep. K. Williams
Sens. Hocker, Lawson, Wilson; Reps. Gray, Michael Smith

 SPONSOR:  

 Sen. Buckson & Rep. Shupe & Rep. Bush & Rep. K. Williams 

 Sens. Hocker, Lawson, Wilson; Reps. Gray, Michael Smith 

   

 DELAWARE STATE SENATE 

 153rd GENERAL ASSEMBLY 

   

 SENATE BILL NO. 52 

   

 AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE EMPLOYMENT OF STATE PENSIONERS. 

   

  BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:   Section 1. Amend 5502, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:    5502. Employment of pensioners.   (a) An individual  shall   may  not receive a service or disability pension under this chapter for any month during which the individual is an employee unless the individual  is:   is any of the following and eligible under paragraph (d)(1) of this section:   (1) An official elected by popular vote at a regular state  election;   election.   (2) An official appointed by the  Governor;   Governor.   (3) A temporary, casual,  seasonal   seasonal,  or substitute employee as defined by the Board of Pension  Trustees;   Trustees.   (4) A substitute teacher employed by a school district  or charter school  in  the State;   this State.   (5) A temporary justice of the peace appointed pursuant to 9211 of Title  10; or   10.   (6) A per diem employee of the General Assembly.   (d)  Any employment under paragraph (a)(2), (a)(3) or (a)(4) of this section requires   (1) If an individual is less than 59 years old,  the individual  is required  to have a  6-month   a bona fide 3-month  separation of service   from that individual's effective date of retirement  if the individual is under age 65.  Earnings   before any employment under subsection (a) of this section.   (2) During calendar years 2023 and 2024, earnings  from employment under paragraph (a)(3) or (a)(4) of this section  will be   are  subject to an annual earnings limit of  $50,000, beginning in calendar year 2023.   $50,000.  If an individual  does exceed the   exceeded this  allowable earned  income   income,  the individuals state pension benefit from this chapter shall be reduced, with a $1.00 deduction for every $2.00 earned over the annual earnings limit. The deduction will begin in July of the year following the calendar year for which the earnings are reported, in a manner as determined by the Board.      

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: 

 Section 1. Amend 5502, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly: 

  5502. Employment of pensioners. 

 (a) An individual  shall   may  not receive a service or disability pension under this chapter for any month during which the individual is an employee unless the individual  is:   is any of the following and eligible under paragraph (d)(1) of this section: 

 (1) An official elected by popular vote at a regular state  election;   election. 

 (2) An official appointed by the  Governor;   Governor. 

 (3) A temporary, casual,  seasonal   seasonal,  or substitute employee as defined by the Board of Pension  Trustees;   Trustees. 

 (4) A substitute teacher employed by a school district  or charter school  in  the State;   this State. 

 (5) A temporary justice of the peace appointed pursuant to 9211 of Title  10; or   10. 

 (6) A per diem employee of the General Assembly. 

 (d)  Any employment under paragraph (a)(2), (a)(3) or (a)(4) of this section requires   (1) If an individual is less than 59 years old,  the individual  is required  to have a  6-month   a bona fide 3-month  separation of service   from that individual's effective date of retirement  if the individual is under age 65.  Earnings   before any employment under subsection (a) of this section. 

 (2) During calendar years 2023 and 2024, earnings  from employment under paragraph (a)(3) or (a)(4) of this section  will be   are  subject to an annual earnings limit of  $50,000, beginning in calendar year 2023.   $50,000.  If an individual  does exceed the   exceeded this  allowable earned  income   income,  the individuals state pension benefit from this chapter shall be reduced, with a $1.00 deduction for every $2.00 earned over the annual earnings limit. The deduction will begin in July of the year following the calendar year for which the earnings are reported, in a manner as determined by the Board. 

   

  SYNOPSIS   Current law allows pensioners to be employed in a Governor-appointed position or as a temporary, casual, seasonal, or substitute employee, including as a substitute teacher, but only after a 6-month separation of service period if the pensioner is under age 65 and limits annual earnings by temporary, casual, seasonal, or substitute employees to $50,000 before an individuals earnings affect the amount of the individuals pension.       To alleviate staffing shortages in schools and state agencies with 24-hour shifts, this Act removes the earnings limit beginning calendar year 2025, lowers the age when the separation of service period applies to individuals who are under 59 years old, and reduces the required separation of service period to 3 months. This Act also clarifies that the pensioners may be employed as substitute teachers by charter schools under the same requirements as school districts.       To comply with federal law, this Act makes the bona fide 3-month separation period applicable to all pensioners employed under 5502(a) of Title 29.      This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.   Author: Senator Buckson  

 SYNOPSIS 

 Current law allows pensioners to be employed in a Governor-appointed position or as a temporary, casual, seasonal, or substitute employee, including as a substitute teacher, but only after a 6-month separation of service period if the pensioner is under age 65 and limits annual earnings by temporary, casual, seasonal, or substitute employees to $50,000 before an individuals earnings affect the amount of the individuals pension.  

  

 To alleviate staffing shortages in schools and state agencies with 24-hour shifts, this Act removes the earnings limit beginning calendar year 2025, lowers the age when the separation of service period applies to individuals who are under 59 years old, and reduces the required separation of service period to 3 months. This Act also clarifies that the pensioners may be employed as substitute teachers by charter schools under the same requirements as school districts.  

  

 To comply with federal law, this Act makes the bona fide 3-month separation period applicable to all pensioners employed under 5502(a) of Title 29. 

  

 This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. 

 Author: Senator Buckson