Program for small business employees reaches milestone in less than seven months

Delaware State Treasurer Colleen Davis announced Monday that Delaware EARNS – a state-sponsored retirement savings program for workers whose employers don’t offer a workplace retirement plan – has rocketed past $1 million in total assets in just seven months since its inception in July 2024.

“Saving for retirement has always been a challenge for workers whose employers don’t offer an IRA or 401(k), and we’re proud to have more Delawareans signing up for EARNS and funding their accounts every day,” said Treasurer Davis. “It’s exciting to see monthly contributions rising significantly as more people settle into the rhythm of saving, and I’m grateful to the EARNS team, our partners at Vestwell State Savings, and the employers who have registered for helping us have such a successful launch.”

As of Feb. 1, EARNS savers had accumulated nearly $1.4 million across 4,590 funded Roth IRA accounts and 1,596 registered employers across the state. As more employers and employees have onboarded to the program, its growth has accelerated, with total assets having nearly tripled since Dec. 1.

“This initiative has been a dream come true,” said LaVante’ Dorsey, owner of LaVante’ N. Dorsey & Associates, which offers mental health services. “As a small business owner, I always wanted to offer retirement savings for my employees, but I couldn’t afford to do it before. Now I’m enrolled in EARNS along with three of my employees, and it’s a stress reliever for all of us to know that money is being set aside.”

EARNS and its staff have already received plaudits from retirement experts, as Program Director Ted Griffith was recognized in January with a 2025 Best of the State Spotlight Award by Georgetown University’s Center for Retirement Initiatives.

“Our early success is a reflection of the great teamwork in our office, starting with the leadership of Treasurer Davis,” said Griffith, who has led EARNS since April 2023. “Looking ahead, we’re excited about further expanding the reach of Delaware EARNS. We anticipate this strong growth to continue, and we’re projecting the program to reach 10,000 savers and $10 million in assets before the end of this year.”

Employers who have not yet enrolled in EARNS can still do so at EARNSDelaware.com – a fast, easy process with no cost to the employer that lets their workers make automatic payroll contributions to a Roth IRA. While the program is designed to benefit employees, Delaware businesses gain from it as well by offering a benefit that helps attract and retain high-quality workers. Private-sector Delaware employers are required by state law to facilitate Delaware EARNS if they have five or more W-2 employees and do not offer a retirement plan.

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

Bill would return program suspended in 2008 and increase monthly match contributions to a maximum of $20 per pay period 

As part of a continued focus on her three main priorities – bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence – Treasurer Colleen Davis has joined with Senator Trey Paradee and Representative Bill Bush to reintroduce bipartisan legislation designed to help Delaware state employees save for retirement.

The bill, supported as a key strategic objective of the Delaware Plans Management Board, would reinstate the employer match for state employee contributions to its deferred compensation program, DEFER. The State suspended the match in July 2008 during the early part of the Great Recession. DEFER is a voluntary retirement savings plan designed to help state employees build long-term financial security. Employees can contribute pre-tax or Roth (after-tax) dollars to 457(b) or 403(b) retirement savings accounts, which offer a range of investment options to suit individual retirement goals.

“It has always been the intent of the General Assembly to revive the match after lawmakers reluctantly put it on hold in order to cut costs, and we are now in the right financial position to bring the match back,” Treasurer Davis said. “In fact, every budget bill since Fiscal Year 2008 has contained language reading, ‘It is the intent of the General Assembly that this program be reinstated when funding becomes available.’”

Sponsored by Sen. Paradee (D-Dover) and Rep. Bush (D-Dover), Senate Bill 20 restores the State’s match and adjusts it for cost-of-living increases by setting the maximum match at $20 per pay period. The previous maximum was set at $10 in the year 2000.

“State employees play an essential role in keeping our state running smoothly and providing the critical services that our constituents rely on,” said Sen. Paradee. “Having a match for the state employee retirement plan would help us attract and retain quality employees. Over the past four budget cycles, our focus has been on increasing employee pay and shoring up the pension plan and the health insurance plan. This bill helps the State of Delaware remain competitive with other employers, and I look forward to working with my colleagues to get this over the finish line this session.”

During the years that the State offered the match, employee participation in the deferred compensation program grew by more than 3% each year. But following suspension of the match, employee participation steadily declined and has never recovered.

“With the rising cost of living and the ongoing need to pay off student loans, most public educators have very little left over for retirement,” said Stephanie Ingram, president of the Delaware State Education Association, which represents nearly 14,000 public school educators throughout the First State. “I’m grateful that our lawmakers are fighting for our future by fulfilling Delaware’s 17-year-old promise to its workers and finally restoring the state match on retirement savings accounts.”

The bill includes a specific provision for state employees with student loan debt who are struggling to save for retirement. It authorizes the State to contribute to the retirement accounts of employees who are unable to afford contributions because they are making payments on student loans.

“We as legislators came to Dover to get things done for our constituents. Not just for our districts, but for all Delawareans – which includes state employees,” Rep. Bush said. “With bringing back the match, we’ll be doing just that. As it stands, only 37% of our state employees feel prepared for retirement, and I feel strongly that this bill would increase that number significantly. Delaware’s state employees give so much to our state, and it’s only right that we get this match done for them.”

For more information on Delaware DEFER, visit https://treasurer.delaware.gov/deferred-compensation-plans/.

Early adopter of the retirement savings program shares the benefits her employees and business have already experienced.

The deadline for employers to register for the Delaware EARNS program is just two weeks away. All Delaware employers are required by state law to register for Delaware EARNS by Oct. 15, 2024, if they have five or more W-2 employees and do not currently offer a retirement plan. The Office of the State Treasurer has ensured that the registration process and implementation of the program are quick and convenient for businesses.

“We’re extremely grateful to everyone who has helped us spread the word about the Delaware EARNS program,” said State Treasurer Colleen C. Davis. “I’ve been committed to this program for years, and I’m so proud to hear the positive feedback we’ve received from employers and employees who have already begun implementing the program. We look forward to continuing to offer Delaware EARNS to many Delawareans, ensuring they feel secure with their retirement.”

A recent AARP survey found that 20% of adults ages 50 and older have no retirement savings, and more than half (61%) are worried they will not have enough money in retirement. In Delaware, nearly 40% of private-sector employees do not have access to retirement savings through work. To help solve this problem, the Office of the State Treasurer launched the Delaware EARNS retirement savings program on July 1, 2024, after finding that workers are 15 times more likely to save when they are given access to plans like Delaware EARNS.

“We had been in touch with several companies for a few years in an effort to create policies and plans that would offer a retirement savings plan to our employees,” said Toni Dickerson, administrator at Sussex Preschools and chair of the Child Care Association of Sussex County, and an early adopter of Delaware EARNS. “Our staff is grateful! Many of them had considered leaving the field to find employment with an existing retirement savings plan, so this was much needed.”

When employers register with the Delaware EARNS program, they help their employees establish a financially secure future, with easy, automatic payroll contributions to a Roth IRA — all at no cost to the employer. While the program aims to benefit employees, it is also helps Delaware businesses attract and retain high-quality workers, ensuring a bright future.

“I was a little intimidated when Delaware EARNS first launched. However, the staff members at the Office of the State Treasurer were incredibly helpful in making sure we felt confident rolling this out,” said Dickerson. “We applied for the program on the first day of enrollment in July, and by mid-August, our staff had already made their first round of contributions. It was easy to get everyone onboarded and set up — I was amazed. We onboarded all 40-plus staff in less than two hours.”

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.

“Business owners in Delaware have a great opportunity to bring retirement savings to their employees,” said Douglas Magnolia, President of Vestwell State Savings. “Through Vestwell’s partnership with Delaware EARNS, employers and employees in the state have access to an industry-leading savings platform, providing them with the ability to save for a secure financial future.”

If you’re a Delaware employer and have not registered for the Delaware EARNS program yet, here are the steps to get started:

• Register your company at EARNSDelaware.com and follow the prompts.
• Begin payroll deductions and submit contribution information and funding for employees who choose to participate in the program.
• Continue processing payroll and maintain employee records.

Though the registration deadline is just two weeks away, there are still plenty of opportunities to learn more about the retirement savings program. Delaware EARNS Program Director Ted Griffith and State Treasurer Colleen Davis will host a webinar on Tuesday, Oct. 8, in partnership with AARP-Delaware. You can register for the webinar here.

For more information, 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.

Bills would reinstate employer match and allow casual/seasonal employees to participate in retirement plan

Remaining consistent with her three main priorities; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence, Treasurer Davis has proposed two pieces of legislation with bi-partisan support designed to support state employees with their retirement saving.

The first bill, supported as a key strategic objective of the Delaware Plans Management Board, would reinstate the employer match for state employee contributions to the deferred compensation program. The State suspended the match in July 2008 during the early part of the ‘Great Recession’.

“It was always the intent of the General Assembly to revive the match after lawmakers reluctantly put it on hold in order to cut costs,” said Treasurer Davis. “In fact, every budget bill since Fiscal Year 2008 contained language reading ‘It is the intent of the General Assembly that this program be reinstated when funding becomes available.’”

Senate Bill 94, sponsored by Sen. Trey Paradee and House Majority Leader Valerie Longhurst restores the State’s match and adjusts it for cost-of-living increases by setting the maximum match at $20 per pay period. The previous maximum was set at $10 in the year 2000.

“For over a decade, the State of Delaware provided a meager match to the deferred compensation program as a way to encourage state workers to save for their future,” said Sen. Trey Paradee, D-Dover, Senate prime sponsor of SB 94. “Now, after six straight years of surpluses, I think it’s time we finally keep our promise and restore a match that keeps pace with inflation. This legislation is not only good for state workers, it also will help the State of Delaware at a time when it’s getting harder to compete with the private sector.”

During the time that the State offered the employer match, the employee participation rate was growing at an average of 3.25% per year. After the suspension, employee participation declined at an average rate of 1.6% per year.

Senate Bill 94 also provides retirement help to State employees with student loan debt who are struggling to save for retirement. The bill also authorizes the State to contribute to an employee’s retirement account if the employee is making payments on student loans, and as a result, the employee cannot afford to contribute to their retirement account.

A second piece of legislation will take another step towards increasing retirement saving opportunities for state employees. When passed, House Bill 130, sponsored by Reps. Longhurst, Krista Griffith, and Melissa Minor-Brown and Sen. Paradee will allow casual seasonal state employees to participate in the State’s 457(b) retirement savings plan. Currently, casual/seasonal employees, who are not eligible for benefits, are excluded from the plan. As a result, many casual seasonals are missing out on saving for retirement.

“Casual seasonal employees make up a critical part of the state government workforce, and they play a significant role in keeping our state running and delivering services to the people of Delaware.” said Treasurer Davis. “Among those in casual seasonal roles are nurses, park rangers, prosecutors, accountants, security officers, and social workers. The State should be taking care of these hard-working individuals by allowing them to participate in the State’s retirement savings plan so that they can save, invest, and build wealth for a more secure and comfortable retirement.”

“Our hardworking state employees dedicate their lives to serving our communities. It’s only fair that we give these civil servants the tools and resources they need to enter their retirement years with dignity and security. With these bills, we’re taking meaningful steps to fulfill that promise and secure the financial future of our state’s workforce,” said House Majority Leader Valerie Longhurst. “I commend State Treasurer Colleen Davis for her commitment to ensuring that all state workers have the opportunity to plan for their retirement with confidence and I look forward to passing these bills in the General Assembly.”