Morningstar, the country’s most widely cited and influential investment plan rating group issued its annual report and upgraded the DE529 Education Savings Plan from Bronze to Silver status. Morningstar specifically credited the oversight of the plan as a major factor for the upgrade.

“Delaware earns an Above Average Parent rating driven by its multiple layers of oversight and engaged partners. The state’s 11-member plans management board, two subcommittees, and an external investment consultant review any recommended changes to the plan,” according to the report.

Delaware also saw an increase in its People Pillar score, a rating measuring the strength and weakness of an investment team. Morningstar noted, “It’s a topnotch group in the 529 space worthy of a People Pillar upgrade to High from Above Average.” The DE529 Education Savings Plan is managed by Fidelity Investments.

“We have seen tremendous growth in our 529 plan over the past year,” said Treasurer Colleen Davis. “With this ratings upgrade, continued quality oversight by the Plans Management Board, and superior plan management by Fidelity Investments, we expect to grow even more with hopes of reaching Gold status in the future.”

As of September 30, 2023, there were 2,149 new DE529 accounts opened this year, an increase of 41% over the same time last year.

Of the 54 529 plans offered throughout the country, only two have Gold status with just 15 more achieving Silver.

“We are thrilled to have our rating boosted by Morningstar,” said Donna Vieira, executive vice president and chief commercial officer for Sallie Mae who serves as Chair of the Delaware Plans Management Board, the entity that oversees the state’s investment programs. “Saving for college is an important step, and families should feel good knowing that industry experts see the DE59 Education Savings Plan as a sound investment and a safe place for their money.”

“There is no doubt the State’s commitment to the plan, including the General Assembly approving tax incentives for contributions to DE529 accounts helped grow our numbers and lead to our upgrade” Treasurer Davis said. “We’re proud to offer a good, competitive product to help people save.”

Click here to read “Morningstar 529 Ratings: The Best Plans of 2023.”

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.