House Bill 81

House Bill 81, reforms employee health and pension benefits with certain changes becoming effective for individuals hired on, or after January 1, 2012. Click here for Frequently Asked Questions on changes resulting from the legislation. Please contact ben-serv@udel.edu with questions.

(The following table summarizes provisions of House Bill 81. Please note that provisions in the right column apply only to participants, typically non-exempt employees, in the Delaware Employees' Pension Plan.)

Benefits-Eligible Faculty, Staff and/or Retirees Non-Exempt (Salaried & Hourly) Staff
Employees hired on or after January 1, 2012: Eliminate Double State Share for employees hired (or who become benefit eligible) on or after this date.

Effective July 1, 2012: Current Double State Share employees will pay a $25 monthly charge for each non-Medicare supplemental contract

Effective July 1, 2012: First State Basic Plan no longer no-cost option for participants. Establishes a fixed cost percentage for the State health insurance plans.

Retirees after July 1, 2012:  State share for post-Medicare retirees will be reduced by 5%.  Based on FY 2011 rates, that equates to approximately $20 per month for someone who is otherwise eligible for the full University/State share.

Non-exempt employees hired after January 1, 2007: Subject to a change in the number of years to vest for the state share of retiree healthcare

•  Less than 15 years of credited service 0%
•  15 years – 17 years 5 months 50%
•  17 years 6 months – 19 years 11 months 75%
•  At least 20 years 100%

Non-exempt employees first hired on or after January 1, 2012:
  • Vested pension requirements increase from 5 to 10 years
  • Change the normal pension retirement age to the following:
    • Age 65 with at least 10 consecutive years of credited service,
    • Age 60 with 20 years of credited service, or
    • 30 years of credited service at any age.
  • Increase early retirement reduction factor from 0.2% to 0.4%
  • Increase employee pension contributions from 3% to 5% (after the $6,000 exclusion)
  • Overtime payments will not be included in the employee's final average compensation (when pension is calculated).