State of Delaware Pension Plan

Excerpt from: University of Delaware Policies and Procedures Manual, Section: Personnel

The State of Delaware Employees' Pension Plan (Chapter 55, Title 29, Delaware Code) mandates that all University non-exempt (salaried and hourly) staff participate upon date of hire. Employees contribute the following:

  • 5% on earnings in excess of $6,000/year up to the social security wage base for the year (or 3%, if pension-creditable service began prior to January 1, 2012), AND
  • 5% on earnings over the social security wage base.

In accordance with the Statute, 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).

Age/Service Criteria for State Pension Retirement

Full Pension
* 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)
* 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
* 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.

Note: Upon separation from service, employees may either leave their contributions with the State Employees' 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

Health Insurance
* 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.

For more information: