America Saves Week – April 8-12, 2024

As financial literacy and wellness continue to be paramount in today’s economic landscape, Delaware Treasurer Colleen Davis once again encourages Delawareans to participate in America Saves Week, the initiative aimed at promoting saving, budgeting, and financial stability across the nation.

The theme for America Saves Week 2024, which runs from April 8-12 is “Saving for What Matters Most.”

“Supporting America Saves Week aligns with our office’s main priorities; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence,” Treasurer Davis said. “By participating in this initiative, we can help individuals build strong financial foundations, reduce debt, and increase savings, ultimately leading to greater financial security and peace of mind.”

The Office of the State Treasurer will provide information on how people can create an effective savings plan by highlighting several key areas that contribute to financial stability. Each day of America Saves Week carries a specific theme:

• Monday, April 8 – Saving Automatically
• Tuesday, April 9 – Saving for the Unexpected
• Wednesday, April 10 – Saving for Major Milestones
• Thursday, April 11 – Paying Down Debt is Saving
• Friday, April 12 – Saving at Any Age

Delaware’s America Saves webpage (https://treasurer.delaware.gov/asw24) will be updated every day with information and tips about each daily theme.

“While America Saves Week provides a perfect time to take a close look at your finances and saving methods, we provide unique savings opportunities throughout the year,” Davis said. “Our office oversees the design, implementation, and overall administration the DE529 Education Savings Plan, DEPENDABLE, a savings plan for people with disabilities, and DEFER, the deferred compensation program for state employees. We’re also looking forward to the implementation of Delaware EARNS later this year. EARNS is a program that will bring retirement savings to those unable to get a retirement plan from their employer.”

Members of the Delaware General Assembly joined Treasurer Davis in promoting saving by proclaiming the week of April 8, 2024 “Delaware Saves Week” with the passage of Senate Concurrent Resolution 134 sponsored by Senator Nicole Poore and Representative Larry Lambert.

“Even a small cushion of savings can make a huge difference when it comes to helping our families overcome those unforeseen hurdles that life likes to throw in our way,” said Sen. Nicole Poore, the Senate prime sponsor of SCR 134. “That’s why I have worked closely with Treasurer Davis over the years to help our neighbors find ways to put some money aside for the future,” she said. “Whether we’re helping people with disabilities save for future expenses, making college a little more affordable for families or bringing retirement savings accounts to hundreds of workers, I am proud of the work we’ve accomplished to bring a little more financial security and peace of mind to our communities.”

“At a time when too many Delawareans are struggling to start their retirement accounts, save for their children’s education, or simply build up their nest eggs for emergencies, it’s so important that we spread awareness about the many great programs available to help residents save more for their future,” said Rep. Larry Lambert. “During Delaware Saves Week and every week, we must work to empower individuals with the resources and tools to secure their financial future.”

“I encourage everyone to take advantage of the resources available during America Saves Week and join the movement towards a financially secure future,” Davis said. “Together, we can build a more resilient and prosperous Delaware and America.”

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.”

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.

State Treasurer Colleen Davis led the first in a series of public forums to spread the word about the benefits of Delaware EARNS, an upcoming program that will provide workers and employers with access to low-cost retirement savings plans, beginning in January 2025. The Delaware NAACP, the Metropolitan Wilmington Urban League, and the Police Athletic League of Wilmington joined with the Office of the State Treasurer in the event Tuesday evening at the Wilmington PAL Center.

“Taking the EARNS message to communities with many small businesses and residents who work for these businesses will help us share the value of the program,” said Treasurer Davis. “Explaining to entrepreneurs that they can open the door for their employees’ retirement savings with no cost and minimal effort can help it become a valuable tool in hiring and retaining quality workers that help keep small businesses running.”

The presentation included information on how the pending retirement crisis created the need for Delaware EARNS. Currently 39% of the State’s workforce does not have an easy way to save through a retirement program at work. Delaware EARNS addresses the situation by automatically enrolling employees into a State-facilitated retirement savings plan unless they elect to opt-out. Delaware EARNS also benefits small businesses who may not be able to offer retirement plans to employees due to the cost and administrative burden, allowing them to attract and keep good employees by offering a crucial benefit like retirement savings.

The next forum takes place May 4, 2023, at 6:00 p.m., at the Living Grace Worship Cathedral in Middletown in conjunction with the Alpha Kappa Alpha Sorority, Inc. A third will take place in June co-sponsored by AARP Delaware.

Meanwhile, the Delaware EARNS Program Board continues to meet and establish policies and procedures for the program. The Board will meet tomorrow, April 13, 2023, and again on July 13, 2023, and October 12, 2023. The Board’s three standing committees, the Program & Investment Committee, Audit, Policy & Governance Committee, and the Outreach & Engagement Committee all continue to meet and work towards implementation of the program.

To learn more about Delaware EARNS, visit de.gov/earns. For more information about the work of the Board, visit https://treasurer.delaware.gov/earns_board/.

“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.”