Section: Personnel Policy Number: 4-77 Policy Name: State Pension Retirement Plan Date: December 1998 Revisions: April 2001, October 2006, April 27, 2012
The State of Delaware Pension Plan (Chapter 55, Title 29, Delaware Code) (the "State Pension Plan") mandates that all University non-exempt (salaried and hourly) staff participate upon date of hire. Employees contribute the following:
Five percent on earnings in excess of $6,000 per year up to the social security wage base for the year (or three percent if pension-creditable service began prior to January 1, 2012), AND
Five percent on earnings over the social security wage base.
In accordance with the State Pension Plan, the pension calculation formula uses total creditable service and the highest three years’ salary (including payment for overtime, if pension-creditable service began prior to January 1, 2012).
The purpose of this policy is to specify the pension benefits and other state-sponsored benefits to which covered University of Delaware staff are entitled under the State Pension Plan.
Age/Service Criteria for State Pension Retirement
University of Delaware staff who participate in the State Pension Plan are entitled to the following pension benefits:
Any age with 30 years of pension-creditable service;
Age 60 with 20 years of creditable service (15 years, if service began prior to January 1, 2012); or
Age 65 with 10 years of creditable service (age 62 with 5 years, if began prior to January 1, 2012)
Reduced Pension (Early Retirement):
Any age with 25 years of pension-creditable service; or
Age 55 with 15 years of pension-creditable service.
Vested Pension: At least 10 years of creditable service, with pension beginning the month following 65th birthday, or (if pension-creditable service began prior to January 1, 2012) at least 5 years of creditable service, with pension beginning the month following 62nd birthday.
Upon separation from service, employees may either leave their contributions with the State Pension Plan and apply for a vested (future) pension, OR request a refund of any contributions the employee has paid into the program.
State-Sponsored Benefits at Retirement. University of Delaware staff who participate in the State Pension Plan are entitled to the following additional benefits:
Under age 65: Same coverage options as are available to active employees.
Over age 65: Medicare supplemental coverage available.
State contribution toward health premiums depends on hire date and total creditable service.
Death Benefit: $7,000.
Dental Plan and Vision Plan: Optional coverage is available through the State of Delaware group.