§ 5502 — Employment of pensioners

(a) An individual may not receive a service or disability pension under this chapter for any month during which the individual is an employee unless the individual is any of the following and eligible under paragraph (d)(1) of this section:

(1) An official elected by popular vote at a regular state election.

(2) An official appointed by the Governor.

(3) A temporary, casual, seasonal, or substitute employee as defined by the Board of Pension Trustees.

(4) A substitute teacher employed by a school district or charter school in this State.

(5) A temporary justice of the peace appointed pursuant to § 9211 of Title 10.

(6) A per diem employee of the General Assembly.

(b) Nothing in this section shall prevent the State from employing an individual receiving a pension under this chapter as a registration or election official or as a juror. An individual so employed may receive the compensation provided by law without deduction from the individual’s pension.

(c) Nothing in this section shall prevent an employee 55 years of age or older from receiving an elected official service or disability pension.

(d) (1) If an individual is less than 59½ years old, the individual is required to have a a bona fide 3-month separation of service from that individual’s effective date of retirement before any employment under subsection (a) of this section.

(2) During calendar years 2023 and 2024, earnings from employment under paragraph (a)(3) or (a)(4) of this section are subject to an annual earnings limit of $50,000. If an individual exceeded this allowable earned income, the individual’s state pension benefit from this chapter shall be reduced, with a $1.00 deduction for every $2.00 earned over the annual earnings limit. The deduction will begin in July of the year following the calendar year for which the earnings are reported, in a manner as determined by the Board.

(e) Any individual who contracts with an employer participating in the plan or represents any private enterprise that has a contract with an employer participating in the plan must have a 6-month separation of service from such individual's effective date of retirement if the individual is under age 65. The employer shall report to the Board, in a form prescribed by the Board, a certification of the worker’s status for the individual. The certification will be used for a determination of the individual meeting the definition of employee under this chapter.

Legislative History

29 Del. C. 1953, § 5502; 57 Del. Laws, c. 592, § 1 ; 57 Del. Laws, c. 741, § 38A ; 60 Del. Laws, c. 483, § 13 ; 62 Del. Laws, c. 70, § 1 ; 63 Del. Laws, c. 423, § 1 ; 65 Del. Laws, c. 80, § 1 ; 70 Del. Laws, c. 186, § 1 ; 71 Del. Laws, c. 119, § 1 ; 73 Del. Laws, c. 18, § 2 ; 73 Del. Laws, c. 79, § 2 ; 73 Del. Laws, c. 198, § 1 ; 73 Del. Laws, c. 430, § 2 ; 78 Del. Laws, c. 290, § 28 ; 79 Del. Laws, c. 78, §§ 28, 29 ; 79 Del. Laws, c. 245, § 1 ; 81 Del. Laws, c. 79, § 43 ; 83 Del. Laws, c. 349, § 1 ; 84 Del. Laws, c. 42, § 1 ; 84 Del. Laws, c. 54, § 1 ; 85 Del. Laws, c. 150, § 1