Bill to Help State Retirees Clears House, Heads to Senate

Posted on 06-27-2022

A bipartisan bill to help state retirees has cleared the House of Representatives and will be heard in a Senate committee next week.

House Substitute 1 for House Bill 478 would change a long-standing law that penalizes state retirees who return to state employment.
Currently, a state retiree can return to state service as a temporary, casual, seasonal, substitute employee, or substitute teacher and still receive their full pension providing their annual earnings are under $30,000. If an individual exceeds the allowable limit, his or her state pension is cut by $1 for every $2 earned over the threshold. The bill, which passed through the House without a dissenting vote, would raise the annual income limit to $40,000.
The prime sponsors, which include State Reps. Mike Smith (R-Pike Creek Valley) Tim Dukes (R-Laurel), and Danny Short (R-Seaford), note the annual earnings limit has not been raised in many years. They also say raising the limit will give state and school officials more options to fill vacant positions with qualified personnel that want to work.
The Senate Executive Committee will hold a hearing on the bill on June 29 starting at 1:30 p.m.