Treasurer Davis Honored for Delaware EARNS

Delaware Treasurer Colleen Davis has received the 2024 Distinguished State Leader Award from the Georgetown University Center for Retirement Initiatives (CRI) at the McCourt School of Public Policy for her work in the adoption and implementation of Delaware EARNS.

The Delaware Expanding Access for Retirement and Necessary Savings (EARNS) program 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.

“Since first taking office in 2019, I have maintained my top three priorities of bolstering retirement security, creating pathways to economic empowerment, and providing a culture of financial excellence,” Treasurer Davis said. “Delaware EARNS accomplishes all three of those priorities for hard working men and women who have no other effective way to save for retirement.”

In announcing the award, Angela Antonelli, Executive Director of the CRI credits Treasurer Davis for bringing people from both sides of the political aisle on board.

“The bipartisan adoption and ongoing implementation of DE EARNS is a model for the nation and other states considering such programs,” Antonelli said.

“It’s extremely validating to have the CRI support Delaware EARNS and what it stands for,” Davis said. “For almost 10 years now, they have been bringing states together on a regular basis, regardless of where they are in the process and regardless of the politics.”

Previous winners of the award include Illinois Treasurer Michael Frerichs, Colorado Treasurer Dave Young, Oregon Treasurer Tobias Read, and former Connecticut Comptroller Kevin Lembo.

“While I’m truly humbled to receive this award, it’s important to remember it isn’t about me, it’s about the important work that so many in our office do on a daily basis to help make sure everyone in Delaware has a smooth road to retirement,” Davis said.


Colorado and Delaware Enter Partnership for Automatic Retirement Savings

The Partnership for a Dignified Retirement expands with the addition of Delaware EARNS

DENVER, COLORADO: Last week, the Colorado SecureSavings Program and Delaware EARNS established a partnership to help more savers prepare for their future retirement.

“This is an important step towards expanding sustainable and dignified retirement options across the nation. We appreciate the vote of confidence from the Delaware EARNS Board, and we are looking forward to working closely with Treasurer Colleen Davis and her team.” Dave Young, Colorado State Treasurer

“We are grateful to the EARNS Program Board for supporting our entry into this innovative consortium with Colorado and Maine. Doing so will ensure that Delawareans have the highest quality choice when it comes to retirement savings,” said Delaware State Treasurer Colleen C. Davis. “Nearly 150,000 Delaware workers currently have no way of saving for retirement through their workplace. Today, we took a major step toward closing that gap.”

“Delaware joining the Partnership for a Dignified Retirement is an important milestone. The ability of employers to provide an accessible option to savers will help significantly improve the financial lives of families across the country.” Hunter Railey, Director of Colorado SecureSavings Program

“The Delaware EARNS Program Board was pleased to support this historic interstate collaboration to bring a much-needed retirement savings vehicle to Delaware workers,” said EARNS Board Chair Fayetta M. Blake. “Through joining this interstate effort, we’ll greatly accelerate the launch of the EARNS program. Not only will we save start-up time and costs, but we’ll also allow Delaware participants to benefit from economies of scale that will help them grow their savings over time.”

“We’re delighted to see innovation in state savings programs continue as Delaware joins the Partnership for a Dignified Retirement,” Douglas Magnolia, Chief Customer Officer and President of Vestwell State Savings. “Vestwell is proud to power Delaware EARNS and help close the savings gap for the nearly 40% of private sector employees that do not have access to retirement savings.”

The Delaware EARNS Program Board has voted to join the Partnership for a Dignified Retirement. This partnership helps the State of Delaware offer a cost-friendly, state-run retirement program for workers who don’t have access to a retirement savings program. Vestwell, in partnership with BNY Mellon, serves as the Program Administrator, providing recordkeeping, custodial, and administrative services to employers and employees in participating partner states. The Partnership for a Dignified Retirement provides a proven avenue for smaller states to offer a pathway to financial security for savers.

This partnership will help pave the way for more savers to be able to sign up for a retirement program through their work. It expands the program and focuses on the simplicity for employers and savers that other states can adopt. It is a state-facilitated retirement program for private-sector employers and their employees. The program leverages the benefits of compound interest, allowing retirement funds to grow faster. The longer retirement funds are invested, the more growth is expected.

Partnership programs are tied to the employee instead of the employer, making the account portable when the employee leaves and changes jobs. These retirement programs are an easy and accessible way for states to provide a critical tool for financial security to working people.

With the successes of the state-run retirement savings programs in California, Illinois, Oregon, and elsewhere, the expansion of the Partnership for a Dignified Retirement represents the next step in extending low-cost, portable retirement savings options to workers without access to a savings program.

House Bill 205 in Delaware requires employers with five or more employees to provide a private retirement plan or sign up for their state program. The goal of the Delaware EARNS program is to provide workers and employers access to low-cost retirement savings plans de.gov/earns.
Colorado business owners need to decide on their retirement plan options by December 31, 2023. For more information please visit coloradosecuresavings.com. The Colorado SecureSavings Program has over 124,000 savers, and 13,000 registered employers so far.


Delaware EARNS Program Moves Forward, Open to Interstate Cooperation

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.


Implementation Of Delaware EARNS Off To A Historic Start

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.”


Delaware EARNS Program Board Members Named

Chaired by local entrepreneur and community leader, board scheduled to meet

As directed by the Delaware EARNS Act created by the signing of House Bill 205, members have been appointed to the Delaware EARNS Program Board.

Board members are:

  • Fayetta Blake – Chair
  • Colleen Davis – State Treasurer
  • Rick Geisenberger – Secretary of Finance
  • Christina Haas – Office of the State Insurance Commissioner
  • Ethel Belfon – Department of Labor
  • Donna Vieira – Chair of the Plans Management Board
  • Robert Herrera – Member at Large

Delaware EARNS (Expanding Access for Retirement and Necessary Savings), a State-facilitated, universally available retirement savings plan, providing a convenient way for all workers to save for retirement, requires businesses with more than five employees that don’t currently offer a retirement plan to participate through a simple payroll process.

“I am honored to have been chosen by Governor Carney to chair the Delaware EARNS Program Board,” said Fayetta Blake, the founder and Executive Director of Pathways to Success, Inc., and an entrepreneur with an extensive background in community banking and financial services. “I am excited to work with such committed people on a project that will help secure financial security for Delawareans who currently have no effective way to save.”

The Delaware EARNS Program Board will oversee the initial design and implementation of all administrative aspects of the Delaware EARNS program including, marketing and promotional responsibility, vendor management, and investment oversight.

The inaugural meeting is scheduled for Tuesday October 4, 2022. Details of the meeting including the agenda and how to join virtually or in person can be found on the Delaware Public Meeting Calendar.

“The composition of the Delaware EARNS Program Board could not be stronger given the critical need for the work to be done,” said Treasurer Colleen Davis. “This landmark program could serve up to 150,000 Delawareans, while addressing all three of my top priorities; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence.”