Thanks to the ongoing progress towards implementation of the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) program, State Treasurer Colleen Davis has been named to the newly formed State Advisory Council of the Georgetown University Center for Retirement Initiatives (CRI) at the McCourt School of Public Policy. The bi-partisan council will provide guidance to the CRI’s mission, goals, and objectives in implementing state-facilitated retirement savings programs like EARNS around the country.

Signed into law in 2022 after receiving overwhelming bi-partisan support from the General Assembly, EARNS will provide a convenient way for all workers to save for retirement, particularly middle and low-income workers who lack access to employer-sponsored plans, and allows small businesses previously unable to provide such a benefit to do so at no cost.

“The CRI has been an indispensable resource not just for our office and EARNS, but for state programs across the country,” said Treasurer Davis. “They serve as a clearinghouse for all policy issues surrounding state auto-IRAs and I’m honored to be part of the council that will help them continue that invaluable work.”

The initial meeting of the council focused on the upcoming annual state network conference to be held January where leaders of state-sponsored retirement programs will gather to share ideas and experiences.

“Treasurer Davis’s leadership establishing the Delaware EARNS program has been an example for other states seeking to implement such programs,” said Angela Antonelli, the CRI’s Executive Director. “I am grateful to have the opportunity to work with Treasurer Davis and other state leaders and to benefit from their strategic guidance in support of these important retirement savings programs.”

“I am honored to have a role in supporting the Georgetown Center for Retirement Initiatives in the critical work of sharing best practices for addressing the retirement savings crisis,” said Dave Young, Colorado State Treasurer and Chair of the council. “As state programs evolve, Colorado is fortunate to have partners like Treasurer Davis and the Delaware EARNS Program help us chart a new course towards a sustainable and dignified retirement for all savers.”

Delaware EARNS is expected to go live January 1, 2025.

“As I have said repeatedly, my main priorities remain bolstering retirement security, creating pathways to economic empowerment, and providing a culture of financial excellence,” Treasurer Davis said. “My role on this council will enable me to help share Delaware’s success with the rest of the country.”

Aspire529 money addresses education related expenses

Delaware Treasurer Colleen Davis announced that Aspire 529, a program for youth in or aging out of the foster care system to help them pay for expenses related to college or vocational training, has made its 2023 awards.

This year, five individuals received $529 after applying for the program and completing personal financial coaching from trained, skilled professionals through a partnership with $tand By Me®.

“Providing financial help in these situations is only half of the solution,” Treasurer Davis said. “Helping these young men and women learn the proper way to handle the money is what gives it extra value.”

This year’s awardees, two from New Castle County and three from Kent, plan to use the money for expenses including transportation to school, supplies, housing, and childcare.

The Office of the State Treasurer, along with the Delaware Plans Management Board, created Aspire 529 in 2022 after considering the obstacles faced by many youths aging out of the foster care system. Statistics show that only approximately 20% of foster youth who graduate high school hope to attend college, and just 3% earn a college degree.

“I am grateful to the Plans Management Board for authorizing the funds for the program,” Davis said. “Anything we can do to make higher education more accessible is important to do. Providing a bit of relief with paying for things like books, transportation, or even childcare could be the deciding factor for many considering continuing their schooling.”

The Aspire 529 Program will open its next round of funding in June of 2024.

In a letter dated August 23, 2023, Delaware State Treasurer Colleen Davis joined six of her colleagues in calling on the Federal Trade Commission (FTC) to oppose the proposed merger between major grocery chains Kroger and Albertsons. Davis believes the merger poses a significant threat to the well-being of Delaware residents and expresses deep concern and strong opposition to the consolidation of two of the largest grocery store chains in the United States.

The FTC is currently reviewing the proposed merger and considering its potential impact on competition and consumers. Treasurer Davis believes the negative impact of the deal could have wide reaching effects.

“I have serious concerns about access to fresh and affordable groceries, particularly in underserved communities,” Davis said. “It’s critical that we maintain a diverse range of grocery options, especially for those who rely on these stores for their daily needs.”

In addition to the severe consequences to Delawareans’ access to food in their communities, Treasurer Davis also cautions about the potential harm to workers’ livelihoods.

A study from the Economic Policy Institute, found that the merger between Kroger and Albertsons could result in a total loss of $334 million in wages for over 746,000 grocery store workers across more than 50 metropolitan areas. This loss translates to an average annual wage decrease of approximately $450 per worker.

Treasurer Davis expressed concerns about the potential impact on workers in both companies. Albertsons currently operates 18 stores in Delaware: 15 under the Acme name and 3 more Safeway stores, with Kroger owning two Harris Teeter locations.

“Mergers often lead to job cuts and layoffs as duplicate positions are eliminated in the name of cost savings,” Davis said. It’s crucial that we protect workers’ livelihoods and job security.”

The letter also asserts “the consolidation of the chains would diminish workers’ ability to organize and negotiate for better wages and working conditions,” stressing that by “reducing the number of outside options available to workers, the merger would significantly limit competition in hiring and retaining employees, undermining their bargaining power.

“While mergers and acquisitions can sometimes provide benefits, we must carefully consider their impact on our communities, workers, and consumers,” Davis said. “I believe that this proposed merger between Kroger and Albertsons could have far-reaching negative consequences, and I am committed to advocating for the best interests of Delawareans.”

Read and download the full letter here.

More accounts and $36,100 in incentives added in first half of 2023

Almost twice as many people as last year have started saving for higher education with DE529 Education Savings Accounts according to State Treasurer Colleen Davis. More than 1,400 new DE529 accounts opened through June of 2023, a number 41% higher than during the same time last year.

“As the cost of college and trade school continues to rise, it has become more crucial than ever for families to plan for their children’s future,” said Treasurer Davis. “Our office is proud to sponsor the DE529 Education Savings Plan, which provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.”

Managed by Fidelity Investments, money in a DE529 account grows on a tax deferred basis, and withdrawals for qualified expenses like tuition, fees, and books are federal and Delaware income tax-free.

In addition to making the plan available, the Office of the State Treasurer (OST) and the Plans Management Board, the group that directs and serves as trustees of the money invested in the plans, credit the First State, First Steps incentive program with boosting enrollment.

“Through the first half of the year, 361 new DE529 accounts qualified for the First State, First Steps incentive which makes a $100 contribution to eligible accounts,” Davis said. “If the beneficiary is five years of age or younger and a Delaware resident at the time of account opening, the DE529 plan will add the contribution to every new account opened with an initial deposit of at least $100.

To help spread the word about DE529 and the benefits of saving for higher education, Fidelity recently sponsored Kids’ Day at the Delaware State Fair. DE529 is also the proud sponsor of “Kids Run the Bases” after every Sunday afternoon home game of the Wilmington Blue Rocks, and serves as the exclusive sponsor of the Route 1 Rivalry between the University of Delaware and Delaware State University.

For more information on the DE529 Education Savings Plan and the First State, First Steps program, visit 529.delaware.gov.

To ensure workers have the highest quality choice when it comes to retirement savings, the Office of State Treasurer will explore an interstate collaboration for the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) Program.

The EARNS Program board, voting unanimously at its July 13 public meeting, authorized the Treasurer’s office to evaluate entry into an interstate partnership or multistate consortium to support the launch and future success of the retirement savings program.

“We’re thrilled with the strong support of the EARNS Program Board as we seek interstate cooperation to support this innovative retirement savings program for Delaware,” Treasurer Colleen Davis said. “Partnering with other programs would allow for collaborative decision making with industry leaders and benefit the program as it moves towards its launch.”

Signed into law by Governor Carney in 2022, Delaware EARNS will provide a convenient way for private-sector workers to save for retirement. Nearly 150,000 Delaware workers, many of them low- and middle-income, currently lack access to a workplace retirement savings plan. The EARNS program, which is expected to launch in 2025, will also help small businesses that lack the resources to offer a 401(k) or similar retirement plan.

Treasurer Davis has consistently championed retirement savings for all Delawareans and was an outspoken advocate for passage of the legislation that created the EARNS program.

“Since coming into office, my priorities have been clear: bolster retirement security, create pathways to economic empowerment, and provide a culture of financial excellence,” Treasurer Davis said. “Delaware EARNS fits perfectly with those priorities.”

The Treasurer’s office, working with the firm AKF Consulting Group, determined that potential interstate cooperation could offer a range of benefits to Delaware:

• Lower start-up costs for the State
• Faster time to launch
• Lower initial fees for participant
• Potential for accelerated fee decreases

“Delaware has proven success with such partnerships,” Davis said. “DEPENDABLE, Delaware’s ABLE Plan—a savings vehicle for people with disabilities—operates through a multistate consortium called the National ABLE Alliance.”

To keep the public informed about the potential interstate cooperation and the EARNS program’s overall progress, the Treasurer’s office will hold public meetings and make updates on its website. Additionally, anyone can register to receive updates on developments about DE EARNS.

States interested in partnering with Delaware can write to EARNS@delaware.gov attention Ted Griffith, EARNS program director. Members of the public can use the same e-mail address for any questions or comments about the program.