Having a savings plan, knowing what resources are available for it, and knowing how to use those resources are the three vital factors needed to build financial confidence. State Treasurer Colleen Davis is encouraging all Delawareans to use America Saves Week as the incentive to save money, reduce debt, and build wealth over time.

The theme for America Saves Week 2023, which runs from February 27^th to March 3^rd, is “A Financially Confident You.”

“Financial literacy is important, but only when you know you have a plan to face your own unique situations or unexpected expenses do you achieve true financial confidence,” said Treasurer Davis. “Our office will share information throughout America Saves Week that will help people prepare for the future.”

Currently in its 16^th year, America Saves Week, an initiative of the Consumer Federation of America, is an annual call to action for everyday Americans to commit to saving successfully with each day having a specific theme:

• Monday, February 27 – Saving Automatically
• Tuesday, February 28 – Saving for the Unexpected
• Wednesday, March 1 – Saving for Major Milestones
• Thursday, March 2 – Paying Down Debt is Saving
• Friday, March 3 – Saving at Any Age

Information about each day’s focus as well as other useful information will be featured on Delaware’s America Saves webpage.

Since taking office, Treasurer Davis’s main priorities focus on bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence for all Delawareans.

“In addition to administering the DE529 Education Savings Plan, DEpendABLE, a savings vehicle for people with disabilities, and DEFER, a deferred compensation program for state employees, we developed new savings programs as well over the past year,” Treasurer Davis said. “Aspire529 is 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, and with the help of the general assembly, Delaware EARNS, a program designed to provide workers and employers access to low-cost retirement savings plans, is currently in development.”

Members of the legislature joined Treasurer Davis again in support of education around saving by declaring the week of February 27th “Delaware Saves Week” with the passage of House Concurrent Resolution 6.

“Financial security is critical to a person’s independence and personal wellbeing,” said Rep. Larry Lambert, sponsor of HCR 6. “Saving now for your retirement – even though it is decades away – provides people with stability and peace of mind, especially as they near their Golden Years. Yet still, nearly half of all American families don’t have a retirement account, including 70% of families with below-average income.”

“That’s why I fought to pass the Delaware EARNS program with Treasurer Davis to make saving for retirement a reality for thousands of Delaware families,” Lambert said. “Encouraging residents to save during Delaware Saves Week puts this at the forefront and allows us to remind people just how important it is to start putting funds aside now for your future.”

“The pandemic has shown us that it’s never been more important for families to have savings that they can count on,” said Sen. Nicole Poore. “I was proud to work with Treasurer Davis and my House colleague Rep. Lambert last year on HB205, the Delaware EARNS bill. That’s why I also cosponsored House Concurrent Resolution 6, designating the week of February 27 as ‘Delaware Saves Week.’”

“Governor Carney’s proposed budget for fiscal year 2024 represents a comprehensive spending plan for today, while preserving valuable assets for the future.

Our office continues to focus on three main priorities: bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence. I want to thank Governor Carney for his support of those priorities by including money in his recommended budget for the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) Program. Since being signed into law last summer, significant progress has already been made towards helping provide a secure choice retirement program to tens of thousands of Delawareans who do not have the benefit of an employer sponsored program.

While allocating money for vital programs for students, affordable housing, and the environment, on top of critical human resource investments into our valued State workers, Governor Carney also showed his commitment to the future setting aside $18.9 million in reserves and earmarking $324.9 million toward one-time items in a separate supplemental appropriation bill. He also showed his devotion to state employees by establishing a $15 minimum wage for full-time merit employees.

Our office continues to do its part with participation on DEFAC, the Cash Management Policy Board, and on several other initiatives which has helped to maintain Delaware’s AAA bond rating for the past 25 years.

The legislative Joint Finance Committee will now begin its hearings to consider the Governor’s budget and craft a responsible spending plan. On February 7th I will go before the JFC and state our case for the importance of the investments needed for Delaware EARNS to move forward. We will also seek funding for priorities supporting the state’s digital government initiatives and our treasury management modernization project, which will automate and streamline our operations.

While not included in the Governor’s recommended budget, I will also urge the JFC to consider reinstatement of the deferred compensation match program for state employees. Like Delaware EARNS, the match program will give extra support to retirement readiness and security. I stand with our state employees and hope to gain the support of the legislature in helping them save for the future.”

Surrounded by family, friends, and staff, State Treasurer Colleen Davis was sworn in for her second term this morning. Deputy Attorney General Jason Staib, legal counsel to the Office of the State Treasurer administered the Oath of Office.

“It is my honor and privilege to serve the people of Delaware,” Davis said. “Over the past four years we have maintained our AAA bond rating, championed the creation of a landmark retirement program for our citizens, and increased return on the state’s investments by more than $58 million. Moving forward, my priorities remain the same, bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence.”

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.”

A gift to a DE529 account will last well past the holiday season

The holiday season can be stressful as shoppers search for the perfect present. Opening a DE529 Education Savings Plan account or contributing to an already existing account lets you not only cross a gift off of your list but provide for the future as well.

“There’s no getting caught up in the frenzy of shopping malls and you won’t have to deal with supply chain issues when you give the gift of investing in a loved one’s future,” said Delaware State Treasurer Colleen Davis. “Saving for college never goes out of style like trendy fashion, so why not save instead of spending?”

According to the College Savings Plans Network, over $412 billion are being set aside all over the country for education expenses. In Delaware, $40.6 million were held in DE529 accounts as of the end of the third quarter of 2022.

The DE529 Education Savings Plan makes it easy and affordable to plan ahead for the cost of higher education at colleges & universities, technical & community colleges, trade schools, and many other post-secondary education programs. Sponsored by the State of Delaware and managed by Fidelity Investments, DE529 provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.

“You won’t pay any taxes on your money as it grows,” said Treasurer Davis, “plus, withdrawals for qualified higher education expenses like tuition, fees, and books are federal and Delaware income tax-free.”

Opening a new DE529 account for a child under the age of five makes your gift even bigger this year. “First State, First Steps” is an incentive program providing a $100 contribution to a DE529 Education Savings Plan account as long as the beneficiary is a Delaware resident, and the initial investment in the account is at least $100.

To learn more, visit 529.delaware.gov before making your holiday shopping list.