Employer participation in Delaware EARNS is required by law for those who do not offer a qualified retirement plan.

Beginning today, employer registration opens for the state’s new retirement saving program, Delaware EARNS. All Delaware employers who have five or more W-2 employees and do not offer a qualified retirement plan, such as a 401(k), must either register for Delaware EARNS or certify for exemption by Oct. 15, 2024, as required by state law.

Delaware EARNS is a new retirement savings program sponsored by the Office of the State Treasurer. It was created to help bridge the state’s retirement savings gap.

Employers that want to get a head start on offering access to a competitive retirement benefit before the mid-October deadline can do so now at earnsdelaware.com. For employers, there is no cost for facilitating the EARNS program and no plan-sponsor liability. Employers can be exempt if they offer a qualified retirement plan, have fewer than five employees, or have been in business less than six months.

“Since I came into office, I’ve been committed to improving the financial empowerment and resilience of all Delawareans, especially historically underserved populations. Delaware EARNS gives us a path to do just that: Advance empowerment and resilience for workers throughout our state,” said Treasurer Colleen C. Davis. “This innovative program also benefits our small businesses by allowing them to give employees access to retirement savings at no cost to employers.”

Before opening statewide, Delaware EARNS was tested in a successful pilot program involving 12 employers from across the state, including My Sister’s Fault, a Puerto Rican-themed bakery with locations in Milford and Seaford.

“EARNS is an important step forward,” said Angie Robles, co-owner of My Sister’s Fault. “It offers small business owners and their employees a chance to be able to save money for their retirement. The way it’s going to help our employees is that it’s going to give them a level of confidence that when they do get to retirement, they will have money set aside that they can count on. Delaware EARNS is a very positive addition to our business and any small business. We’ll now have a more level playing field with larger employers because we can offer access to a state-sponsored retirement program.”

Vestwell State Savings is the program administrator for Delaware EARNS as well as similar programs in several other states, including Maryland, New Jersey, and Virginia.

“The Delaware EARNS pilot program gained early momentum during the spring. We anticipate the success of this program to continue now that it is available to all eligible Delaware businesses,” said Douglas Magnolia, President of Vestwell State Savings. “As partners of Delaware EARNS, Vestwell values our shared commitment to expanding access to retirement savings and helping close the savings gap for workers in the First State.”

Vestwell is also program administrator for Colorado, Maine, and Vermont, Delaware’s partner states. These four states are collaborating through the Partnership for a Dignified Retirement, an interstate consortium that shares best practices and offers economies of scale to state-sponsored IRA programs.

The Office of the State Treasurer is hosting a free webinar for Delaware employers to learn more about this program, understand next steps for registering, and ask any questions they may have. It will be held Wednesday, July 17, from noon to 1 p.m.

For more information about Delaware EARNS, visit EARNSDelaware.com or email EARNS@delaware.gov.

Small businesses and nonprofits throughout Delaware are poised to be the first to offer their employees access to the new EARNS retirement savings program from the Office of the State Treasurer.

Nearly a dozen private-sector employers will participate in a pilot of EARNS this month to help ensure systems are fully ready ahead of the program’s formal launch on July 1.
Among the participants is Pathways to Success of Georgetown, Del., a nonprofit that provides services to empower at-risk communities. “I feel very honored to be one of the employers that will be launching Delaware EARNS,” said Fayetta M. Blake, executive director of Pathways to Success and chair of the EARNS Program Board.

“Those of us who are smaller employers can face challenges in offering benefits, like retirement savings, that help attract and retain employees. Delaware EARNS will help level the playing field for small businesses and small nonprofits. I’m very excited about EARNS and have been from the very beginning.”

Sponsored by the Office of State Treasurer Colleen C. Davis, EARNS is a retirement savings program for private-sector workers who don’t have access to a workplace plan through their jobs. Employers with 5 or more Delaware employees (full or part-time) are required to facilitate EARNS if they don’t offer a qualified retirement plan, such as a 401(k).

“The start of the employer pilot is a true milestone,” Treasurer Davis said. “It’s thrilling to see a goal we have been working toward for years become a reality. We have nearly 150,000 private-sector workers in our state with no access to retirement savings through their employers. We now have a real opportunity to change that with the EARNS program.”

EARNS is no cost and liability-free to employers

Delaware employers that want to get a head start on offering access to a competitive retirement benefit can register starting as early as July 1 at earnsdelaware.com. For employers, there is no cost for facilitating the EARNS program and no plan-sponsor liability.

Employers have until October 15, 2024, to register or certify that they’re exempt from the EARNS requirement. Employers can be exempt if they offer a qualified retirement plan, have fewer than five employees, or have been in business less than six months.

Employers participating in the pilot:

• Down Syndrome Association of Delaware
• Great New Beginnings
• Junebug’s Little Rubies
• Just In Time Learning Academy
• LaVante’ N. Dorsey & Associates
• Leading Youth Through Empowerment (LYTE)
• Limestone Therapeutic Massage Associates
• My Sister’s Fault
• Mike & Mel’s Family Restaurant
• Pathways to Success
• Sweet Lucy’s Ice Cream & Treats

For more information about Delaware EARNS, visit earnsdelaware.com or write to earns@delaware.gov.

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.

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.

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.