Opinion ID: 2086320
Heading Depth: 1
Heading Rank: 2

Heading: Delaware Judicial Pensions Relevant Statutory History

Text: We begin our analysis with an examination of the relevant statutory history. A separate Delaware judicial pension system was originally established by the State Judiciary Pension Act in 1955. [5] Although that statute has been amended many times, it has always had several unique features. First, each new member of the Delaware judiciary must affirmatively express a written desire to participate in the pension system. [6] Second, each new judge must authorize the deduction of contributions to the pension fund from his or her salary. [7] Third, in consideration for the benefits conferred by participation, each judge agrees that the act of filing a certificate of his or her permanent physical or mental incapacity, in the statutory form prescribed by Section 5602(c), shall constitute his or her immediate resignation from office. [8] In 1976, the General Assembly amended the State Judiciary Pension Act by requiring an increased contribution rate for participation in the judicial retirement system. The Judges of the Superior Court filed a lawsuit alleging that the 1976 amendment, as applied to them, violated the Delaware Constitution. [9] A specially constituted Supreme Court [10] agreed, and held that the 1976 amendment to the State Judiciary Pension Act violated Article XV, § 4 of the Delaware Constitution because it diminished the emoluments of incumbent judges during the tenure of their appointed terms. [11] On July 11, 1980, in response to the Stiftel decision, the General Assembly amended the State Judiciary Pension Act by removing the unconstitutional provision in Section 5601 and creating a dual system of pensions. [12] The General Assembly established a new plan, the Revised Judicial Pension Plan (Revised Plan), which became the only pension system available to all members of the Judiciary appointed after July 1, 1980. The Revised Plan required participating judges to make higher contributions than the original plan, which became the Closed Judicial Pension Plan (Closed Plan). [13] The Revised Plan also provided extra benefits over the Closed Plan, however, including the right to collect retirement pay at an earlier age, i.e., at age 62 rather than age 65. [14] In the preamble to the legislation that created the Revised Plan, the General Assembly stated, [I]t is the further intent of this legislation to provide sitting judges with the right to elect continued participation in the current plan or participation in the revised plan .... [15] Initially, members of the Closed Plan, i.e., jurists appointed before June 30, 1980, had the right to elect to participate in the Revised Plan by July 1, 1981. That election had to be made by filing a written declaration with the Secretary of State. [16] The General Assembly enacted several subsequent amendments to that election provision in the State Judiciary Pension Act. [17] In 1982, an amendment provided that members of the Closed Plan could exercise their option to elect participation in the Revised Plan by filing a declaration with the Secretary of State by July 1, 1983. [18] In 1983, the General Assembly amended the statute to provide that: A member first appointed before July 1, 1980, may elect to be covered by the revised plan by filing a declaration of acceptance in the Office of the Secretary of State. [19] The synopsis to the 1983 amendment indicated that its purpose was to allow members of the Closed Plan to elect participation in the Revised Plan by filing their declarations of acceptance at any time during their tenure. In 1985, the Delaware Attorney General addressed the operation of the 1983 amendment with regard to Closed Plan members' right to elect participation in the Revised Plan. [20] In a formal Opinion to the chairman of the Pension Board, the Attorney General examined the question of whether a member of the Closed Judicial Pension Plan (the Closed Plan) may elect to join the Revised Judicial Plan (the Revised Plan) at any time before his retirement and, if so, from what point are his contributions under the Revised Plan rate to be calculated? [21] The Attorney General concluded that, pursuant to the 1983 amendment to the Judicial Pension Act, a member of the Closed Plan may elect to join the Revised Plan at any time prior to retirement and that he must contribute at the Revised Plan rate from the date of the election to join that plan. [22] In reaching this decision, the Attorney General stated: Thus, it is plain that there is no limitation on the time at which a member of the judiciary who is covered by the Closed Plan may elect to join the Revised Plan. If there were any doubt about the meaning of that section, the legislative history resolves it in favor of our reading. The Synopsis says: This bill allows any member covered under the closed pension plan to become covered under the new plan at anytime. [23] The Attorney General acknowledged that this interpretation of the statute could result in members of the Closed Plan electing to join the Revised Plan on the eve of leaving judicial office, thus avoiding the higher Revised Plan contributions but receiving the Revised Plan benefits upon retirement. [24] The Attorney General concluded that the unambiguous terms of the statute following the 1983 amendment compelled this result. In 1998, thirteen years after the Attorney General's Opinion, the General Assembly enacted legislation that limited and then eliminated the ability of the Closed Plan members to elect participation in the Revised Plan. [25] Specifically, the General Assembly amended Section 5605(b) of the Judicial Pension Act by adding the following sentence: Unless an election to participate in the Revised Plan is filed on or before December 15, 1998, a member first appointed before July 1, 1980 shall be deemed to have made an irrevocable election to remain in the Closed Plan. [26] The synopsis to the 1998 amendment explained the purpose of that legislation: [The amendment] refers to current members of the Closed Plan having the ability to contribute to the Closed Plan and then opt[ing] to elect the Revised Plan prior to retirement. The employee contributions to the Closed Plan are much lower, while the benefits for the Revised Plan could be higher. This election will ensure that members that elect the Revised Plan will pay employee contributions at the Revised Plan rates. [27] Accordingly, Section 5605(b) currently provides: A member first appointed before July 1, 1980, may elect to be covered by the revised plan by filing a declaration of acceptance in the office of the Secretary of State. Unless an election to participate in the Revised Plan is filed on or before December 15, 1998, a member first appointed before July 1, 1980, shall be deemed to have made an irrevocable election to remain in the Closed Plan. [28] Judge Lee seeks to have the 1998 amendment to Section 5605(b) declared unconstitutional, arguing that it violates Article XV, § 4 of the Delaware Constitution by diminishing an emolument of his judicial office.