More to come in 2023
Delawareans continue to move closer to financial security in retirement thanks to ongoing development of the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) Program, designed to provide workers and employers access to low-cost retirement savings plans.
Less than two months after being seated, members of the Delaware EARNS Program Board have already made significant strides towards how the program will run when implemented in 2025. Responsible for overseeing the initial design and implementation of the program, the board was composed with an emphasis on diversity and female leadership. Governor Carney appointed two members of the board, Fayetta Blake who serves as chair, has an extensive background in community banking and financial services.
“I am grateful for the opportunity to lead this group of people working toward making sure everyone has the prospect to save money and retire with dignity,” Blake said. “I am humbled by Governor Carney’s trust in me and excited to move forward.”
The other public member of the board is Robert Herrera, an entrepreneur with several businesses throughout Delaware and Maryland. Remaining members of the Delaware EARNS Program Board are State Treasurer Colleen Davis, Secretary of Finance Rick Geisenberger, Christina Haas from the Office of the State Insurance Commissioner, Ethel Belfon from the Department of Labor, and Donna Vieira who serves as the Chair of the Plans Management Board.
“Before passage of the EARNS Act, more than half of Delaware workers lacked an easy way to save for retirement, but that’s coming to an end,” said Treasurer Colleen Davis who championed the creation of EARNS. “With the EARNS Program Board in place and beginning its work, a more financially secure future for everyone in Delaware’s workforce is on the horizon.”
The board met in November at which time Program Directors from Colorado and Oregon shared insight on the development of Auto IRA programs in their states. Additionally, Ms. Blake also appointed chairs of the board’s newly established committees:
- Program & Investment Committee – State Treasurer Colleen Davis
- Audit, Policy & Governance Committee – State Finance Secretary Rick Geisenberger
- Outreach & Engagement Committee – Rob Herrera
The chairs will work with OST over the next several months to design the governance framework of their committees and to recruit committee members.
“I am excited to bring additional people into the fold by filling our committees with those that can not only effect change in retirement savings as Delaware EARNS moves towards implementation, but also those who will be affected and helped by the program,” Blake said.
Another step towards that implementation took place December 5, 2022, when the RFP for Program Consulting Services went live. The consultant selected will advise the EARNS Program Board and OST in areas such as program structure and design, implementation, administration, procurement, standards, and compliance.
The board will also hire an Executive Director for Delaware EARNS. That person will help launch, manage, and direct the EARNS program. Through closely working with the Board, the Executive Director will also partner with the Outreach & Engagement Committee to develop a comprehensive outreach and engagement strategy and conduct presentations to large, diverse audiences including the General Assembly, business advocacy groups, employers, and the general public.
As work continues into the new year, objectives for 2023 include hiring additional personnel to support the Executive Director and the board on issues including budget approvals around marketing, promotion, and outreach, as well as hiring legal support to assist with the program. The board will also investigate the possibility of forming an Interstate Partnership, a working alliance with other states that have similar programs in order to maximize results of efforts. Finally, the board plans to hold town hall meetings and listening sessions, along with the AARP of Delaware which has supported and advocated for Delaware EARNS from the start.
Signed into law by Governor Carney in August, Delaware EARNS provides 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 unable to provide such a benefit.
In order to help keep the public informed of the board’s activity in a timely and transparent manner, the Office of the State Treasurer (OST) established a website and established an email address for people to use for questions. Additionally, anyone interested can also register to receive updates on developments about DE EARNS.
“We began exploring the idea of bringing a secure choice retirement program like EARNS to Delaware way back in 2019,” said Treasurer Davis. “Thanks to the AARP and other community partners, EARNS will soon be a valuable asset in addressing my three main priorities: bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence.”