State Retiree Benefits Fact Sheet – Delaware

  • December 18, 2007
Delaware's pensions system is in very good shape. Its bill coming due for retiree health care and other nonpension benefits is large for the state's size—$4.4 billion—but as of the end of 2006, Delaware was one of only 13 states with any assets set aside for those liabilities. Following the work of a retirement study commission, which examined the state's options, Delaware has attempted to save money through improved management—for example, concentrating on prevention and more aggressive collection of drug rebates—and has begun to pre-fund a portion of its long-term obligation. Consistently making its required contribution toward its non-pension bill coming due would be smart fiscal policy for Delaware—its $4.4 billion liability would be reduced to $3.2 billion, based on the higher interest rates that its actuaries would be able to assume on money invested for the long term in a qualified irrevocable trust.