Delaware bill ties some retirees’ pension cuts to 2023–24 pay

The signed bill would tie an earnings-based pension cut to pay from covered public jobs. It covers state pensioners in temporary, casual, seasonal, or substitute jobs, including substitute teaching. For earnings above $50,000 in either named year, the bill specifies a $1 pension deduction for every $2 above that amount. The threshold covers calendar years 2023 and 2024; pay earned in 2025 or later would not trigger this cut.

Under the signed bill, retirees younger than 59½ would need a genuine three-month break to collect a pension while working in a listed job. It covers every listed job, including officials elected at regular state elections, Governor appointees, and temporary workers. The break must be a genuine separation from service. The break starts on the effective retirement date and must end before the listed job begins.

The signed bill lists Delaware charter schools as places where state pensioners may substitute teach while drawing a pension. It covers state pensioners working as substitute teachers at Delaware charter schools or school districts. Retirees younger than 59½ would need a genuine three-month break from service before taking the job to draw a pension. The bill's $50,000 earnings threshold covers substitute teaching pay from 2023 and 2024.