SB 42: 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.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

After enactment of Senate Substitute No. 1 to Senate Bill No. 174 of the 152nd General Assembly (Chapter 446 of Volume 84 of the Laws of Delaware), it was discovered that Senate Substitute No. 1 to Senate Bill No. 174 would, if implemented, jeopardize the qualified federal tax status of the Delaware Public Employees Retirement System by giving individuals who are Justices of the Peace, Commissioners of the Superior Court, Family Court, and Court of Common Pleas (“Commissioners”), and Magistrates in Chancery (“Magistrates”), as of the effective date, an election to participate in the Judicial Pension Plan at a different rate of pre-tax contribution than presently required for those individuals under the State Employees’ Pension Plan (3% or 5%, depending on start date). Based on this information, the Board of Pension Trustees voted unanimously on December 10, 2024, to delay implementation of Senate Substitute No. 1 for Senate Bill No. 174. This Act does the following: (1) Revises § 5601 and 5605 of Title 29 to allow for Justices of the Peace, Commissioners, and Magistrates who first qualify for the State Judicial Pension Plan on the effective date of this Act to elect to remain in the State Employees’ Pension Plan or participate in the State Judicial Pension Plan at the same pre-tax rate each individual was contributing under the State Employees’ Pension Plan (3% or 5%). (2) Sets the mandatory pre-tax contribution rate of any subsequently appointed State judicial officer at 5%. Any Justice of the Peace, Commissioner, or Magistrate as of the effective date who is appointed to a new position within the state judiciary after the effective date of this Act will also be subject to the mandatory 5% contribution rate. (3) Delays the effective date of Senate Substitute No. 1 for Senate Bill No. 174 until January 26, 2025, the effective date of this Act.

Sponsors

Sponsors by party (alphabetical): Democratic 2 · Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 7, 2025Signed by Governor
2. January 30, 2025Passed By House. Votes: 37 YES 4 ABSENT
3. January 29, 2025Reported Out of Committee (Administration) in House with 5 On Its Merits
4. January 22, 2025Assigned to Administration Committee in House
5. January 21, 2025Passed By Senate. Votes: 19 YES 2 VACANT
6. January 21, 2025Amendment SA 1 to SB 42 - Passed By Senate. Votes: 19 YES 2 VACANT
7. January 15, 2025Reported Out of Committee (Executive) in Senate with 7 On Its Merits
8. January 14, 2025Re-Assigned to Executive Committee in Senate
9. January 10, 2025Introduced and Assigned to Judiciary Committee in Senate