Section: Personnel
Policy Number: 4-77
Policy Name: State Pension Retirement Plan
Date: December 1998
Revisions: April 2001, October 2006
POLICY
The State of Delaware Pension Plan (Chapter 55, Title 29, Delaware Code) mandates that all University salaried and hourly staff participate upon date of hire. Employees contribute as follows: a) 3% on earnings in excess of $6,000/year up to the social security wage base for the year, and b) 5% on earnings over the social security wage base. Benefits are based on average salary (3 years) and total service in accordance with the Statute.
AGE/SERVICE REQUIREMENTS TO RETIRE
Full Benefits:
- 30 years service/any age
- 15 years service/age 60 or older
- 5 years service/age 62 or older
Reduced Benefits:
- 25 years service/any age
- 15 years service/age 55 or older
In addition to service pensions, survivor and disability benefits are payable under the Plan. See Disability Income (State Pension Plan) for more information. Vesting provisions are available after 5 years service in the Plan. Terminating employees may apply for a vested pension benefit (payable at age 62) or may request a refund of the contributions they paid into the program.
STATE SPONSORED BENEFITS AT RETIREMENT
Health Insurance - same as active employees unless retiree is age 65 or older.
If so, Medicare supplemental coverage is provided. Funding for health insurance is based on service if the retiree's is date of hire is 7/1/91 or after. If hired prior to 7/1/91, funding is similar to active employee schedule.
Death Benefit - $7,000
Dental Plan - Optional coverage through Dominion Dental or United Concordia Companies.
Blood Bank - Optional free membership
Submitted by: Benefits Services
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Please direct questions to the Executive VP office.
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