DE HB387

Amends § 708(c)(1) of Title 18 of Delaware Code to establish distribution procedures for a special fund to county and municipality pension participants.

Directs the State Board of Pension Trustees to distribute funds to eligible retirees (retired prior to July 1, 2010) by September 1, 2012, categorized by length of retirement: Category 1 (20+ years), Category 2 (10-19 years), and Category 3 (less than 10 years).

Sets distribution ratios where Category 1 retirees receive 3 times the amount of Category 3 retirees, and Category 2 retirees receive 2 times the amount of Category 3 retirees.

Requires biennial distributions starting September 1, 2012, with amounts determined by the Board by August 1 each year, conditioned on maintaining at least $500,000 in the fund after distribution.

Specifies that distributions are not considered post-retirement increases and defines "eligible retiree" as individuals alive on the last day of the current fiscal year who retired prior to the end of the fiscal year two years prior.