[Amended 5-28-2013 by Ord. No. 13-09]
A. This article
is adopted pursuant to the powers conferred upon the Levy Court of
Kent County, Delaware in 9 Del. C. § 4323. The Levy Court
of Kent County, Delaware (County government) shall administer the
Kent County Employee Retirement Program and shall be vested with all
the rights, duties and authority typically reserved for the administration
of such a program, including but not limited to determination or selection
of investment policy(s), fund allocation(s), investment consultant(s),
fund manager(s), investment structure, fund trustee(s), investment
type(s), fund administrator(s), and fund contribution(s).
B. This plan intends to satisfy Code Section 401(a) and other applicable
sections of such Code which are applicable to government plans as
defined in Section 414(d) of the federal Internal Revenue Code of
1986, as amended from time to time.
C. The Plan is maintained for the exclusive benefit of covered employees
or their beneficiaries as required under Section 401(a).
[Added 12-9-2014 by Ord.
No. 14-20]
This article shall be known as the “Kent
County Employee Retirement Program.”
Once acquiring a vested right to benefits, an employee shall not lose his right to benefits by reason of leaving County employment except as provided in §
83-20 of this article.
A covered employee who shall become disabled while in covered employment and covered under a County-provided long-term disability insurance shall be considered as remaining in covered employment as defined in this article until his normal retirement date, or the cessation of disability insurance, whichever shall first occur. Disability retirement pension benefits shall be calculated in accordance with §
83-7A of this article.
At the time of the establishment of the tax
rate, the County government shall include, in addition to an amount
for active employees' salaries or wages, the amounts for those employees
who are carried on the pension roll, plus the amount for those employees
who might become eligible for retirement during the period covered
in such budget.
The beneficiary of the deceased participant
not yet in receipt of benefits who had a vested right to pension benefits
at the time of said participant's death shall be entitled to a death
benefit under the plan as follows:
A. When the beneficiary is a surviving spouse, the benefit shall be 50% of the benefit the participant would have received had he/she terminated employment on the date of death, survived to the earliest retirement date, and elected to retire at that date with the single life annuity option under §
83-10C(1)(b).
B. In the event that at the time of such participant’s death no spouse is living or such spouse has released any claim to benefits in writing in compliance with all applicable laws and regulations, the benefits shall be paid such beneficiary designated by such participant. The benefit shall be the benefit the surviving beneficiary would have received had the participant terminated employment on the date of death, survived to the earliest retirement date, and elected to retire that date with the fifty-percent option under §
83-10C(1)(c) and
83-10C(3).
C. When there is no surviving spouse and no beneficiary
is designated, there shall be no death or other benefit.
D. Effective January 1, 2007, a covered employee's designated beneficiary
who is entitled to an eligible rollover distribution may elect, at
the time and in the manner prescribed by the Personnel Office, to
have all or any portion of the distribution paid directly to an eligible
retirement plan specified by the designated beneficiary in a direct
rollover. In the case of a beneficiary who is not treated as a spouse
under federal income tax law, the direct rollover may be made only
to an individual retirement account or annuity described in Code § 408(a)
or § 408(b) ("IRA") that is established on behalf of the
designated beneficiary and that will be treated as an inherited IRA
pursuant to the provisions of Code § 402(c)(11). Also, in
this case, the determination of any required minimum distribution
under Code § 401(a)(9) that is ineligible for rollover shall
be made in accordance with Notice 2007-7, Q&A 17 and 18, 2007-5
I.R.B. 395.
[Added 2-12-2013 by Ord. No. 13-03]
E. For deaths occurring after December 31, 2006, while performing military
service, the employee’s designated beneficiary is entitled to
any additional benefits that would have been provided under the plan
had the participant resumed employment and then terminated employment
on account of death.
[Added 12-9-2014 by Ord.
No. 14-20]
All official records of whatever kind or character
received or to be received by the Personnel Office on pension cases
shall be kept as all other official employee records of the office
are preserved.
The Personnel Administration Board shall be
responsible for settling any disagreement that may arise out of the
administration of this article by the Personnel Director. The Board
shall adjudicate such disagreement within 30 days of the date of receipt
of a written appeal, at a time and place to be fixed by the Board,
after due notice in writing to all interested parties at least 10
days prior to the date of hearing. The Board may administer oaths
and conduct such acts and make such rules as it deems necessary to
carry into effect the provisions of this article. The written concurring
decision of any four members shall be final.
[Amended 5-13-2014 by Ord. No. 14-08]
Except for orders of the Delaware Family Court for a sum certain
payable on a periodic basis or for benefits payable under this chapter,
the pension benefits provided herein shall not be subject to attachment
or execution, shall be payable only to the beneficiary designated,
and shall not be subject to assignment or transfer except as may otherwise
by provided by law.
[Amended 9-16-2003 by Ord. No. 03-22]
A. The county government may assume the below set forth
rights and responsibilities of a trustee or select a trustee to administer
and invest the money in the Pension Fund who:
(1) Shall receive such sums as shall be paid to the trustee
under the plan.
(2) Shall pay benefits from a fund as directed by the
county government and shall be fully protected in doing so.
(3) Shall keep account of all transactions that shall
be open to inspection and audited by persons designated by the county
government.
(4) Shall not be liable for any loss to the fund or any
act done or omitted by the trustees unless due to his own negligence,
willful misconduct or lack of good faith.
B. The trustee acting as a “prudent man”
shall in his discretion invest principal and accumulated income without
restriction to legal investments and without distinction between principal
and income as provided in an approved investment policy, and any subsequent
amendments. The trustee(s) may hold investments in nominee or bearer.
C. The county government may amend or terminate its contract
with a trustee(s), provided that the amendments affecting the trustee(s)
shall require his consent and no termination or amendment shall divert
any part of the fund to any purpose other than the exclusive benefit
of employees or their beneficiaries, and no amendment shall divest
any vested benefit.
D. The trustee shall be compensated in accordance with
his schedule of rates in effect from time to time during the period
in which his services are rendered and as agreed to by the county
government and the trustee.
E. Within 90 days after each plan year or upon his removal
or resignation, the trustee shall file with the county government
an account of its administration of the Fund during such year or for
the end of the preceding plan year to the date of removal or resignation.
F. The trustee(s) may resign by written notice to the
county government that shall be effective 60 days after delivery.
The trustee(s) may be removed by the county government by written
notice to the trustee(s) which shall be effective 30 days after delivery.
On resignation or removal, the trustee(s) shall deliver the funds
to his successor as soon as notified in writing by the county government
that a successor has been named, provided that this shall not waive
any liens the trustee(s) may have upon the fund for his compensation
of expenses.
G. In the event Kent County Levy Court acts as Pension
Plan Trustee, the County shall appoint one or more custodians to hold
a portion of the assets of the trust and to perform such functions
as customarily vested in custodians by law as directed by the County.
Further, the County may delegate any subset of its authorities or
responsibilities set forth in this chapter to appropriate entities,
including but not limited to investment managers and advisors.