Auto-IRA program reaches major milestone in less than two years

Dover, DE – Delaware State Treasurer Colleen Davis announced Tuesday that Delaware EARNS has achieved $10 million in total assets held in retirement accounts by workers across the state.

“We celebrated EARNS reaching $1 million just last February, and it’s gratifying to see how those savings have multiplied over the last 14 months,” said Treasurer Davis. “This growth is a testament to the participation of small business owners across our state – and to the fact that this program is closing a very real gap by giving everyday Delawareans the means and the opportunity to save for their futures.”

As of April 6, EARNS savers had accumulated $10.5 million across 9,219 funded accounts and 1,944 registered employers, with an average account balance of $1,139.64. That already exceeds the median American worker’s retirement savings of $955, according to a recent report by the National Institute for Retirement Security.

“In 25 years of serving our community, we’ve never had the resources to offer our employees access to retirement savings – until Delaware EARNS,” said Jane Pierantozzi, founder and executive director of Faithful Friends Animal Society, a New Castle-based animal welfare and shelter organization. “We now have 25 employees actively saving for retirement, and that makes a real difference not just for them, but also for our ability to deliver on our promise to the animals that depend on us.”

Workers are onboarded to EARNS at the default 5% contribution rate but can adjust it to as little as 1% to suit their personal finances. Many, however, have chosen to exceed the default rate, with contributions across the plan currently averaging 5.64% of total paychecks.

“EARNS continues to mature as more employers and employees come on board every day,” said Delaware EARNS Program Director Ted Griffith. “We’re proud of the role EARNS is playing in building long-term financial security for Delawareans while putting small businesses and nonprofits on more even footing when it comes to hiring and retention.”

Employers who have not yet enrolled can do so at EARNSdelaware.com. Once employers have fully registered, their workers are automatically opted into regular payroll contributions to a Roth IRA. Employees can opt out or change their contribution rates at any time. All private-sector Delaware employers are required by state law to facilitate Delaware EARNS if they have five or more W-2 employees and do not offer a qualified retirement plan, while businesses that do not meet those qualifications can certify their exemption from EARNS requirements.

About the Office of the State Treasurer

The Office of the State Treasurer serves Delawareans by executing secure transactions, managing tax dollars responsibly, and expanding financial empowerment opportunities across the state’s diverse communities. Since taking office in 2019, Treasurer Colleen Davis has championed innovative policies and solutions to make prosperity and economic opportunity more accessible for every Delawarean. For more information, visit treasurer.delaware.gov.

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