DelawareParticipating communities without pension increase proposals would use $55,000 yearly pension limit for payouts
In participating communities without pension increase proposals, the signed bill allows board-approved payments to police and firefighter retirees who retired before June 30, 2025, are alive July 1, and have yearly pensions up to $55,000, if at least $500,000 remains in the fund afterward.
What it does
In counties and towns that joined the state plan for all new police and firefighter hires and submit no pension increase proposal, recipients with yearly pensions up to $55,000 could receive fund payments. Retirees must have retired before June 30, 2025; surviving pension beneficiaries and disability pension recipients also qualify. Everyone must be alive July 1. The board must approve payments, and at least $500,000 must remain in the fund afterward.
For participating counties and towns with no pension increase proposal, the board must make fund money available every two years starting on the enactment date. Payments still need board approval, must leave at least $500,000 in the fund, and require recipients to be alive on July 1 of the payout year.
Argument forIn participating communities without pension increase proposals, retirees who left before June 30, 2025, are alive July 1, and have yearly pensions above $35,000 but no more than $55,000 could receive payments if the board approves them and at least $500,000 remains afterward.
Argument againstIn participating communities without pension increase proposals, the $55,000 limit could let more people share the fund, reducing individual payouts while at least $500,000 must remain after payments.
More detail
The state pension board must distribute fund money to eligible pension recipients when a county or town submits no pension increase proposal. Recipients include local police and firefighter retirees who retired before June 30, 2025, surviving beneficiaries receiving survivor pensions, and people receiving disability pensions. The county or town must have joined the state police and firefighter pension plan for all new hires after joining. The board must approve payments, and at least $500,000 must remain in the fund afterward. A recipient's yearly pension must be $55,000 or less. Recipients must be alive on July 1 of each two-year payout year.
The state pension board must make fund money available every two years. The schedule applies when a county or town that joined the state police and firefighter pension plan for all new hires submits no pension increase proposal. The board must approve any payment, and at least $500,000 must remain in the fund afterward. The two-year schedule starts on the enactment date.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Jul 1Signed by Governor Matt MeyerBecame Law
- Jun 30Passed By Senate. Votes: 21 YESPassed Senate
- Vote recorded Passage. Result: pass.Upper
- Jun 25Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 2 Favorable, 4 On Its MeritsMinor
- Jun 24Assigned to Banking, Business, Insurance & Technology Committee in SenateMinor
- Vote recorded Passage. Result: pass.Lower
- Jun 24Passed By House. Votes: 40 YES 1 VACANTPassed House
- Jun 17Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 2 Favorable, 7 On Its MeritsMinor
- Jun 5Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in HouseIntroduced
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