[HISTORY: Adopted by the Levy Court of Kent
County as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-10-2006 by Ord. No. 06-38]
This article is adopted pursuant to the powers
conferred upon the Levy Court of Kent County, Delaware (hereafter
"Levy Court") in 9 Del. C. § 4323. The Levy Court shall
administer the Kent County Retiree Benefits 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).
This article shall be known as the "Kent County
Retiree Benefits Program."
A.
ACTIVE SERVICE
CONTINUOUS EMPLOYMENT
COVERED EMPLOYEE
COVERED EMPLOYMENT
DISABLED
PLAN YEAR
POST-EMPLOYMENT BENEFITS
As used in this article, the following terms shall
have the meanings indicated:
Employment with the County on a continuing full-time basis
without interruption, except allowable interruptions, up to the date
of retirement.
Service without interruption, except allowable interruptions.
A classified, unclassified, or elected employee who receives
a regular salary directly from Kent County and receives or is eligible
to receive County paid benefits.
Regular employment as a covered employee with Kent County
for more than 1,800 hours in any one calendar year.
An employee shall be disabled for purposes of this article
if he qualifies for and receives disability benefits under the Kent
County Long-Term Disability Program. Said disability shall cease when
Long-Term Disability Program benefits terminate or the employee becomes
eligible to collect County retirement benefits.
The fiscal year.
Such benefits may include health/medical insurance, Medicare
supplement, dental insurance, and any other benefits deemed appropriate
by the Levy Court.[1]
[1]
Editor's Note: The definition of “Rule of 70,”
which immediately followed this definition, was repealed 5-12-2009
by Ord. No. 09-08.
B.
Words of the masculine gender include the feminine
and the neuter, and when the sense so indicates words of the neuter
may refer to any gender.
A.
A current employee retiring from active service with
a County pension shall be eligible for post-employment benefits within
the meaning of this article, except as otherwise provided.
[Amended 5-12-2009 by Ord. No. 09-08]
An employee who shall become disabled while
actively employed and covered under a County-provided long-term disability
insurance shall be eligible as defined in this article to participate
in a Medicare supplement coverage when eligible and if offered.
At the time of the establishment of the tax
rate, the Levy Court may include, in addition to an amount for active
employees' salaries or wages, the amounts for those employees who
are carried on the retiree benefits listing, plus the amount for those
employees who might become eligible for retiree benefits during the
period covered in such budget.
A.
The Levy Court shall have the sole authority to design,
develop, determine and implement benefit plan enhancements, reductions,
and any other changes that it deems appropriate.
B.
The Levy Court shall only be liable for payment from
the trust fund of such benefit premiums as it shall determine appropriate
during the annual budget approval process.
C.
The Levy Court may establish and collect in advance
such monthly premiums as it deems appropriate to provide medical/health
and other benefits to eligible retirees and/or their eligible dependents.
Said premiums shall be deducted from the retiree's monthly pension
payment, unless otherwise approved by the Plan Administrator.
D.
The Levy Court may approve direct payments to eligible
retirees/former employees and their eligible dependents for the purchase
of specific postemployment benefits or for waiving same.
Upon the death of any person receiving or eligible
to receive benefits under this article, such benefits will terminate.
Any dependent may be eligible for continuation of coverage at such
premium and lengths of time as determined by Levy Court and/or as
provided under law.
All official records of whatever kind or character
received or to be received by the Personnel Office on related benefit
matters 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.
The benefits provided by this article shall
not be subject to attachment or execution, shall be payable only to
or on behalf of the eligible person and/or eligible dependents, and
shall not be subject to assignment or transfer except as may otherwise
be provided by law.
A.
The Levy Court hereby establishes a Retiree Benefits
Trust Fund which shall be irrevocable such that it may be used only
for the purpose of paying the benefits provided for under this article
and related administrative costs.
B.
An actuary shall at least biennially review the trust
fund and shall report to the Levy Court whether any additional sums
of money are needed to keep the fund actuarially sound so that sufficient
funds will always be available to pay the benefits provided for under
this article.
C.
The Levy Court may annually appropriate to the Retiree
Benefits Trust Fund such sums as the actuary deems necessary to properly
maintain the fund.
D.
The Levy Court may from time to time enhance or reduce
the benefits across the board for current recipients and/or eliminate
such benefits for future retirees.
E.
The Levy Court may choose to contribute such sums
as determined by the actuary to establish eligibility or increase
the benefit amount for specific individuals determined deserving by
it.
F.
Contributions to the Retiree Benefits Trust Fund shall
be irrevocable until all current and future obligations of said trust
have been satisfied.
A.
The Levy Court may assume the below set forth rights
and responsibilities of a trustee or select a trustee to administer
and/or invest the money in the Retiree Benefits Trust 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
Levy Court 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 Levy
Court.
(4)
Shall not be liable for any loss to the fund or any
act done or omitted by the trustee unless due to his own negligence,
willful misconduct or lack of good faith.
B.
The trustee(s) 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 Levy Court 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 Levy Court
and the trustee.
E.
Within 90 days after each plan year or upon his removal
or resignation, the trustee shall file with the Levy Court 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 Levy Court 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 Levy Court
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
or expenses.
G.
In the event Levy Court acts as trustee, the Levy
Court shall appoint one or more custodians to hold a portion or all
of the assets of the trust and to perform such functions as are customarily
vested in custodians by law as directed by Levy Court. Further, the
Levy Court may delegate any subset of its authorities or responsibilities
set forth in this article to appropriate entities, including but not
limited to investment managers and advisors.
A.
The Pension Review Committee and any successor group
established in the Kent County Code shall regularly review the investment
performance of the Retiree Benefits Trust Fund. The Committee may
make recommendations to the Levy Court regarding plan amendments,
investment policies, investment strategies, professional fund manager(s)
or trustee(s), investment advisor(s), etc. The Personnel Office shall
provide administrative support for the Committee, and the Personnel
Director shall administer the provisions of this article as the Plan
Administrator.
B.
Nothing contained herein and no act or omission authorized
hereby shall constitute a waiver of immunity from suit set forth in
Chapter 40 of Title 10 of the Delaware Code.
A.
In the event that a covered employee resigns, is terminated,
or dies before meeting his vesting requirement(s) or is determined
to be ineligible for Kent County pension benefits, he shall be deemed
as having agreed to forfeit any rights to retiree benefits and the
Personnel Administration Board shall, as necessary, have the power
to terminate all rights of an individual and all persons claiming
benefits through him under this article.
B.
In the event a former employee receiving benefits
under this article is reemployed as a covered employee in covered
employment, postemployment benefits shall cease, but shall be reinstated
should such eligible active employment with the County subsequently
terminate.
