Source: http://regulations.delaware.gov/AdminCode/title19/2000/2004.shtml
Timestamp: 2019-04-24 02:05:44+00:00

Document:
"Application for Benefits" The term "date on which the application for such benefit is filed" as used in 11 Del.C. §8376(a) shall mean the date on which the written documentation is received by the Office of Pensions or the Office of State Police.
"Gubernatorial Appointment" The term "An official appointed by the Governor" as used in 11 Del.C. §§8323(c)(2) and 8352(2) shall mean an official appointed directly by the Governor and confirmed by the Senate.
"Salary" The term "salary" as used in 11 Del.C. Ch. 83 shall mean total salary prior to any payroll deductions, including but not limited to, deductions for contributions to the State's Deferred Compensation Program pursuant to 29 Del.C. Ch. 60A. Salary shall not include payments in the nature of reimbursement or allowance for expenses.
This Rule applies to distributions made on and after January 1, 1993. A distributee may elect to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a transfer made from the Pension Fund.
3.1	Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or the life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Internal Revenue Code of 1986; the portion of any distribution that is not includible in gross income; and any other distribution that is reasonably expected to total less than $200 during the year. Effective January 1, 2002, a portion of a distribution will not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such non-taxable portion may be transferred only to an individual retirement account or annuity described in sections 408(a) or (b) of the Internal Revenue Code of 1986, or to a qualified defined contribution plan described in Internal Revenue Code Section 401(a), or, in addition, on or after January 1, 2007, to a qualified defined benefit plan described in Internal Revenue Code Section 401(a) or to an annuity contract described in Internal Revenue Code Section 403(b), that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible.
4.2	For purposes of applying these limits only and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by Treasury Regulation §1.415(c)-(2), or successor regulation. Specifically, compensation will be defined as wages within the meaning of section 3401(a) of the Internal Revenue Code of 1986 and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under section 6041(d), 6051(a)(3) and 6052 of the Internal Revenue Code of 1986. Compensation will be determined without regard to any rules under section 3401(a) of the Internal Revenue Code of 1986 that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in section 3401(a)(2) of the Internal Revenue Code of 1986.
4.2.4	“Back pay”, within the meaning of Treasury Regulation §1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.
4.2.5	An employee who is in qualified military service (within the meaning of section 414(u)(1) of the Internal Revenue Code of 1986) shall be treated as receiving compensation from the employer during such period of qualified military service equal to (i) the compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for the absence during the period of qualified military service, or (ii) if the compensation the employee would have received during such period was not reasonably certain, the employee's average compensation from the employer during the twelve (12) month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service).
4.3	Before January 1, 1995, a plan participant may not receive an annual benefit that exceeds the limits specified in section 415(b) of the Internal Revenue Code of 1986, subject to the applicable adjustments in that section. On and after January 1, 1995, a plan participant may not receive an annual benefit that exceeds the dollar amount specified in section 415(b)(1)(A) of the Internal Revenue Code of 1986, subject to the applicable adjustments in section 415(b) of the Internal Revenue Code of 1986.
4.5.1.2	The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using a 5% interest assumption (or the applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the applicable mortality tables described in Treasury Regulation §1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Rulings 2001-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code of 1986 (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3(B) of the Internal Revenue Code of 1986).
4.5.2.3	The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under Treasury Regulation § 1.417(e)-1(d)(3) (the 30-year Treasury rate (prior to January 1 2007, using the rate in effect for the month prior to retirement, and on and after January 1, 2007, using the rate in effect for the first day of the plan year with a one-year stabilization period)) and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under Treasury Regulation § 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code of 1986 (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code of 1986), divided by 1.05.
4.7.2	The requirements of section 415(c) of the Internal Revenue Code of 1986 are met, determined by treating all such contributions as annual additions for purposes of section 415(c) of the Internal Revenue Code of 1986.
For purposes of applying Rule 4.7.1 the Pension Fund will not fail to meet the reduced limit under section 415(b)(2)(C) of the Internal Revenue Code of 1986 solely by reason of this Rule 4.7, and for purposes of applying Rule 4.7.2 the Pension Fund will not fail to meet the percentage limitation under section 415(c)(1)(B) of the Internal Revenue Code of 1986 solely by reason of this Rule 4.7.
Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding Rule 4.7.3.3, may include service credited in order to provide an increased benefit for service credit which a plan participant is receiving under the Pension Fund.
4.7.4.2	Any nonqualified service credit is taken into account under this Rule 4.7 before the plan participant has at least five (5) years of participation under the Pension Fund.
4.7.5.4	Military service (other than qualified military service under section 414(u) of the Internal Revenue Code of 1986) recognized by such governmental plan.
In the case of service described in Rules 4.7.5.1, 4.7.5.2, or 4.7.5.3, such service will be nonqualified service if recognition of such service would cause a plan participant to receive a retirement benefit for the same service under more than one plan.
4.7.7	For an eligible plan participant, the limitation of section 415(c)(1) of the Internal Revenue Code of 1986 shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the Delaware Code as in effect on August 5, 1997. For purposes of this Rule 4.7.7, an eligible plan participant is an individual who first became a plan participant in the Pension Fund before January 1, 1998.
4.8	For purposes of section 415 of the Internal Revenue Code of 1986, the limitation year is January 1 through December 31.
5.1	Effective December 12, 1994, notwithstanding any other provision of law, contributions, benefits and service credit with respect to qualified military service are governed by section 414(u) of the Internal Revenue Code of 1986 and the Uniformed Services Employment and Reemployment Rights Act of 1994. The Military Service credit provisions of this section are to be interpreted so as not to diminish any other rights relating to military service that may be granted under state law, including 11 Del.C., ch. 88 §8369 and 11 Del.C., ch. 88 §8375.
The plan year for the Pension Fund is the twelve (12) -month period beginning July 1.
7.1	Repayment of Withdrawal Benefits.
If a former employee, who withdrew his or her accumulated contributions upon termination of service again becomes an employee, his or her service credits to the date of termination shall be restored in accordance with the provisions of 11 Del.C., ch. 83 §8364(b)(3), Subchapter III, Chapter 83, Title 11, Del.C., if he or she repays the total amount withdrawn, plus an interest rate charge as adopted by the Board, compounded annually, within ninety (90) days after notification from the Office of Pensions.
If the repayment occurs subsequent to ninety (90) days after notification from the Office of Pensions, the repayment shall be equal to the amount in Rule 7.1.1 plus, for each full month or fraction thereof following the last day of the ninety (90)-day period, interest rate charge as adopted by the Board.
8.1	Erroneous Payments. Any overpayment of benefits to a pensioner shall be recovered by the State Pension Administrator who, after written notice to the pensioner, shall withhold the amount due from the pensioner's monthly pension benefit within a twelve (12) month period, provided that the amount of monthly withholding may not exceed 15% of the monthly benefit. If repayment of any overpayment amount will require more than twelve (12) months, the withholding shall be made at the rate of 15% of the monthly pension benefit until the overpayment has been recovered in full.
8.2	Effective Date of Pensions.
Commencing July 27, 1983, all pensions awarded under 11 Del.C., ch. 83 shall become effective on the date of the individual's retirement.
All pensions awarded under 11, Del.C. ch. 83 shall become effective on the first day of the month. Under 11 Del.C., ch. 83 §8376(a), a monthly benefit shall not be payable for any period earlier than the first (1st) day of the second (2nd) month preceding the date on which application for such benefit is filed.
8.3	Deceased Pensioner Monthly Benefit and Survivor's Effective Date of Pension. Beginning with the month of May, 1972, the full pension benefit shall be payable for the month in which the pensioner's death occurs and shall be payable to the pensioner or his or her estate. Survivor's monthly pension benefit, if any, shall become effective the first (1st) day of the next month following the month in which the pensioner's death occurs.
8.4	Withdrawal Benefits. Effective for employees terminating State employment, an employee's accumulated contributions, with interest rate as adopted by the Board, shall not be paid to him or her until, in the ordinary course of business, the Pension Office has verified the employee's total pension contributions.
9.1	Distributions from the Pension Fund may be made only upon the death of a plan participant, termination of service by voluntary resignation, attainment of normal retirement age under the terms of the Plan, qualification for a disability pension under the terms of the Plan, and/or attainment of the age of 70½ years except for an employee in active status.
9.2	The Pension Fund will pay all benefits in accordance with a good faith interpretation of section 401(a)(9) of the Internal Revenue Code of 1986 and the regulations under that section.
9.3.1	Benefits must begin by the required beginning date, which is the later of April 1 of the calendar year following the calendar year in which the plan participant reaches 70½ years of age or April 1 of the calendar year following the calendar year in which the plan participant terminates employment. If a plan participant fails to apply for retirement benefits by April 1 of the calendar year following the calendar year in which he or she reaches 70½ years of age or April 1 of the calendar year following the calendar year in which he or she terminates employment, whichever is later, the Board will begin distributing the benefit as required by this section.
9.3.2	The plan participant's entire interest must be distributed over the plan participant's life or the lives of the plan participant and a designated survivor under state law, or over a period not extending beyond the life expectancy of the plan participant or of the plan participant and a designated survivor under state law. Death benefits must be distributed in accordance with section 401(a)(9) of the Internal Revenue Code of 1986, including the incidental death benefit requirement in section 401(a)(9)(G) of the Internal Revenue Code of 1986, and the regulations implementing that section.
9.3.3	The life expectancy of a plan participant, the plan participant's spouse or the plan participant's survivor under state law may not be recalculated after the initial determination for purposes of determining benefits.
9.3.4	If a plan participant dies after the required distribution of benefits has begun, the remaining portion of the plan participant's interest must be distributed at least as rapidly as under the method of distribution before the plan participant's death and no longer than the remaining period over which distributions commenced.
9.3.5.2	Distributed by December 31 of the calendar year containing the fifth (5th) anniversary of the plan participant's death.
9.4	The amount of an annuity paid to a plan participant's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of section 401(a)(9)(G) of the Internal Revenue Code of 1986.
9.5	The death and disability benefits provided by Pension Fund are limited by the incidental benefit rule set forth in Treasury Regulation §1.401-1(b)(1)(ii) or any successor regulation thereto.
10.1	Plan Terminations. In the event of a full or partial termination of, or a complete discontinuance of employer contributions to, the Pension Fund, all accrued benefits which have been vested according to the provisions 11 Del.C., ch. 83 shall be 100% vested and nonforfeitable to the extent funded and to the extent required by federal law.
10.3	A plan participant shall be 100% vested in his or her employee contributions.
12.1	Normal retirement age, for the purposes of the Pension Fund, will be the date the employee becomes eligible for a service pension not reduced because of the employee's age, pursuant to 11 Del.C., ch. 83 §§8323(a) or 8363(a) or (b), Chapter 83, Title 11, Del.C.
12.3	For purposes of section 402(l) of the Internal Revenue Code of 1986, normal retirement age will be the earliest date when the employee has satisfied the requirements of 11 Del.C., ch. 83 §§8323(a) or 8363(a).
The board may not engage in a transaction prohibited by section 503(b) of the Internal Revenue Code.

References: §8376
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 §8369
 §8375
 §8364
 §8376
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