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HB 423

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO DEFERRED COMPENSATION.

153rd General Assembly (2025-2026) Introduced by Bill Bush and 9 co-sponsors

HB 423 updates Delaware's deferred compensation rules, adjusting administration, participation, and oversight to improve governance and transparency of public employee plans.

Passed By Senate. Votes: 20 YES 1 ABSENT
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WeVote Research Nonpartisan
Bill Summary · HB 423

Bill overview

HB 423, introduced in the 153th Delaware General Assembly and assigned to the Administration Committee, is an act to amend Title 29 of the Delaware Code relating to deferred compensation. The bill has multiple co-sponsors, including Dave Wilson, Dave Sokola, Bill Carson, Nicole Poore, Trey Paradee, Russ Huxtable, and Bill Bush. The action history shows the bill was introduced on May 14, 2026, and referred to the Administration Committee in the House.

Purpose and intent

  • The bill aims to modify provisions governing deferred compensation within Delaware’s state code. Deferred compensation typically covers employer-sponsored retirement savings plans or similar post-employment benefit arrangements for public employees.
  • The intent appears to be to adjust legal framework, administration, or eligibility criteria related to deferred compensation programs, with the goal of improving governance, flexibility, or compliance with state personnel and financial management standards. (Note: the exact policy changes would be specified in the bill’s text.)

Key provisions (anticipated areas)

While the specific textual provisions are not provided here, amendments to Title 29 concerning deferred compensation commonly address:
- Administration of state deferred compensation plans (e.g., oversight, fiduciary responsibilities, and reporting).
- Eligibility and participation rules for public employees.
- Employee contribution mechanics, vesting, and distribution rules.
- Plan investment options, fees, and transparency requirements.
- Administrative processes, deadlines, and procedures for plan amendments or decumulation.
- Compliance with federal rules (e.g., IRS/ERISA analogs applicable to state plans) and state budgetary controls.
- Penalties, enforcement mechanisms, and remedies for noncompliance.

Readers should consult the bill’s text for the precise amendments, including affected sections, definitions, and any new or repealed language.

Affected parties and impacts

  • Public employees and retirees who participate in Delaware’s deferred compensation program.
  • State and local government agencies managing or contributing to deferred compensation plans.
  • Plan administrators, HR departments, payroll offices, and financial officers responsible for administering or monitoring deferred compensation.
  • Tax considerations and investment service providers connected to the plan.

Potential impacts may include:
- Changes to participation criteria or contribution rules.
- Revised fiduciary duties and reporting requirements for administrators.
- Adjustments to investment options, fees, or oversight.
- Improved compliance and transparency provisions.

Procedural and timeline aspects

  • Introduction date: May 14, 2026.
  • Current stage: Assigned to the Administration Committee in the House, indicating the bill will undergo committee review, potential amendments, and votes before moving to the full House floor.
  • Next steps typically include committee hearings, stakeholder feedback, possible amendments, and final floor votes. If passed, the bill would proceed to the Senate for consideration, with its own committee process and timeline.

What to watch for

  • The exact language of the amendments to Title 29, including any definitional changes and the scope of the deferred compensation provisions.
  • Fiscal impact statements or appropriations related to administration of the plan.
  • Any effective dates or transition periods for implementing changes.
  • Whether the bill includes sunset provisions, reporting deadlines, or phased implementation.

For a complete understanding, review the full text of HB 423 and any accompanying fiscal notes or committee reports once published.

Compiled from official sources — confirm details with the bill’s official record.

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