Delaware EARNS provides low-cost retirement savings plans
By a vote of 20 to 0 and 1 not voting, the Delaware State Senate passed House Bill 205 creating the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) Program. The bill, which won House approval in May, now goes to Governor Carney for his signature.
“I am thankful that members of the General Assembly joined me in wanting to make sure every Delawarean has a reliable way to save for retirement,” Treasurer Davis said. “I’m especially grateful to Representative Lambert and Senator Poore for their sponsorship.”
Delaware EARNS is a “secure choice” program that amounts to State-facilitated, universally available retirement savings plans, providing a convenient way for all workers to save for retirement, particularly middle and low-income workers who lack access to employer-sponsored plans and small businesses that are unable to provide such a benefit.
“More than half of the State’s workforce lacks an easy way to save through a retirement program at work,” Davis said. “Not only will Delaware EARNS help those employees save for the future, it also benefits small businesses that may not be able to offer retirement plans to employees due to the cost and administrative burden, allowing them to attract and keep good employees by offering a crucial benefit like retirement savings.”
Delaware EARNS requires businesses with more than five employees that don’t currently offer a retirement plan to participate through a simple payroll process. The Office of the State Treasurer State Treasurer’s Office with the oversight of the Plans Management Board will handle all duties and functions of the plan once initial design and implementation takes place under the soon to be formed Delaware EARNS Program Board.
“The primary way for workers to save for retirement is through employer-sponsored plans, and now all employers will have a way to provide this essential benefit,” Davis said. “Delaware EARNS represents my continued commitment to bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence.”