Fewer Fees for Education Savings with DE529

State continues to have one of the lowest-cost investment plans

Treasurer Colleen C. Davis announced today a reduction in fees for Delaware’s 529 Education Savings Plan. Already one of the nation’s lowest-cost savings plans, the reduction is estimated to save participants nearly $87,000 total each year and further incentivize new account openings in the Delaware plan.

“Helping our residents spend less to save is so important. Education is already expensive, and now participants can keep more of their investment earnings to use towards those costs,” said Treasurer Davis. “With no minimum to open an account, and some of the lowest fees nationwide, we’re working to make sure that people of all income levels can save for a better future.”

Fees vary based on the participant’s investment strategy and are collected to administer the plan. Participants do not need to take any action for the fee reduction, which began October 1.

The number of accounts in the Delaware 529 Plan have grown by 4% over the last three years, outpacing the industry nationwide. Nearly 22,000 accounts in the plan hold more than $686 million in investments.

Delaware’s 529 is a tax-advantaged savings plan that is available to the public, easy to open, and offer investment options so that savings may grow over time until they are used for associated costs including tuition, books, housing, apprenticeships and more. Learn more about at 529.Delaware.Gov.


Treasurer Davis Celebrates One Year Anniversary of Delaware ABLE Plan, Releases Video

Specialized savings accounts protect the benefits of individuals with disabilities.

Treasurer Colleen C. Davis is marking the first anniversary of the Delaware ABLE Plan by releasing a new awareness campaign and video. ABLE is a savings program for individuals with disabilities that ensures their ability to put away money and advance in life without risking their important government benefits. Without ABLE, saving money for the future or earning a fair wage can put a person’s ability to utilize Medicaid and Supplementary Security Income (SSI) at risk.

“During ABLE’s first year, the focus was on getting the program up and running. Now the groundwork is laid, and we are shifting our focus towards getting information about the plan into the hands of those who could benefit from it,” Treasurer Davis explained, “Our new awareness video is a great, sharable way for residents to learn about the program and how easy it is to sign up.”

During 2019 alone, Treasurer Davis and staff have reached over 3,000 people through direct, in-person outreach at dozens of events and community meetings. This week, a more broad online awareness effort begins with the release of a video about ABLE.

“Throughout my career, I have worked with thousands of people with disabilities seeking employment,” said Dan Madrid, Director of Policy and Performance Management and ABLE Manager in the Office of the State Treasurer. “They would tell me that they needed a job, but could only make so much, or needed a job that paid less. Several would obtain jobs and then have to refuse promotions and raises because of the asset limits associated with their benefits. With ABLE, they don’t need to hold themselves back anymore. They can have a stable, successful future – and we want everyone to know about the opportunity.”

The Treasurer has hope that Congress will help the plan expand as well. Davis is supportive of the ABLE Age Adjustment Act, which would increase plan eligibility to those who incurred a disability by age 26 to those whose disability onset by age 46, making an estimated six million more Americans eligible for the important program. Treasurer Davis is strongly in support of the ABLE Age Adjustment Act, and released an op-ed to encourage support and a joint statement with Lt. Governor Bethany Hall-Long.

The Achieving a Better Life Experience (ABLE) program allows for the creation of tax-advantaged savings accounts for individuals with disabilities without compromising eligibility for federal benefits such as Medicaid and Social Security. Delaware’s ABLE plan is administered by the Office of the State Treasurer. Learn more about Delaware’s ABLE Plan by visiting ABLE.delaware.gov.


Governor Carney Signs House Bill 31 Allowing Delaware Financial Institutions to Offer Prize-Linked Programs to Encourage Savers

Delaware becomes 15th state to launch prize-linked savings program

DOVER, Del. — Governor John Carney today signed House Bill 31, making Delaware the 15th state to launch a prize-linked savings program to encourage Delawareans, especially low-income and HB 31 Signing first-time savers, to make regular deposits into their accounts. Delaware also became the 22nd state to enact legislation allowing financial institutions to participate in such programs.

House Bill 31 was sponsored by Representative Sean Matthews and Senator Bryan Townsend, along with Representative Helene Keeley and Senator Cathy Cloutier. Under the legislation, savers will start out with a small deposit into a savings account. Each time they add to it, their chances to win one of many cash prizes increases. With each deposit, account holders will be entered into the pool to win — similar to buying a ticket for a raffle. The chance of winning rises as the number of deposits increases. The bill clarifies that such programs do not constitute prohibited gambling or lottery practices.

The bill signing was held at Del-One Federal Credit Union in Dover, which will be the first financial institution in Delaware to launch a prize-linked savings program throughout its 10 branches.

“House Bill 31 offers a unique way to encourage Delawareans to increase their savings and to do it on a regular basis,” said Governor Carney. “Without a sufficient savings emergency fund, many Delawareans across all income levels come up, on average, $1,800 short when faced with a large, unexpected expense. A prize-linked savings program is a great way to save and possibly get rewarded with a cash prize for doing so.”

“As the cost of living continues to climb, it’s more important now than ever to develop a financial plan. We’ve seen in other states that prize-linked savings accounts provide a big incentive for people to put money aside. This new program will help Delawareans build a savings account to put them on the right path forward,” said Representative Sean Matthews, D-Talleyville, prime sponsor of H.B. 31. “Once people start seeing a savings cushion, they will be encouraged to save more. This is a win-win for residents and the state as a whole.”

“With economic inequality reaching its highest levels in modern memory, it’s more critical than ever that we reward good financial habits and make it easier for working people to get out ahead on their savings plans,” said Senator Bryan Townsend, D-Newark. “This legislation is modeled on proven programs in 14 other states and will make a real difference for families right here in Delaware. I’m proud to have supported it and I’m grateful for Rep. Matthews’ tenacity in getting this legislation passed.”

“Finances control so much of what we do on a day-to-day basis. From urgent care expenses to unexpected vet costs, surprise bills can be crippling. That’s why having access to prize-linked savings accounts is such a game-changer,” said Representative Helene Keeley, D-Wilmington South. “This new program will enable Delawareans to learn how to save in an interactive and rewarding fashion.”

“Having a savings account buffer is so important. In the busy day-to-day where there are so many things that seem to take precedent, it is not always the first thing on people’s minds,” said Senator Cathy Cloutier, R- Heatherbrooke. “This is a fun way to remind people and help them build up funds.”

“We are thrilled to offer this enticing savings program to all Delawareans and to join our colleagues across the country who have done so much to boost savings rates in their communities,” said Dion Williams, Del-One president and chief executive officer. The program is currently in development, and the opening date will be announced on Del-One’s website, www.del-one.org.

In Michigan where the program started in 2009, 60,000 people have saved over $140 million with an average account balance of $2,000.

$tand By Me, a statewide financial empowerment partnership administered by the Department of Health and Social Services and United Way of Delaware, is supporting this effort as part of its work to increase financial well-being for all Delawareans. Michelle Taylor, president and chief executive officer of United Way, said the program will offer an added incentive for Delawareans to build their savings.

“We all need a financial cushion to help us weather the unexpected demands of life,” said Taylor. “This prize-linked savings program will make it easier, and potentially more rewarding for people to build that nest egg.”

$tand By Me customers Shamica and Jarad Spencer recently have started to save more each month to support their goal of homeownership.

“Saving isn’t easy, but we know it’s the only way to get what we want, so we’re willing to make that sacrifice,” said Shamica Spencer. “And as long as we’re already saving, why not sign up for a prize-linked savings program to make it more entertaining and enjoyable?”

Information about prize-linked savings programs will be available at www.del-one.org or www.standbymede.org.

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DNREC Division of Energy & Climate offers tips to keep costs down and chase away chills

DOVER – With winter just around the corner, it’s a good time to prepare your home and car for cold weather. You want to stay warm, of course, but that can mean using more energy in your home and more fuel in your car – and having less money in your pocket. To tip that balance more in your favor, DNREC’s Division of Energy & Climate offers the following no- and low-cost tips to help you use less energy and save more money this winter and year-round.

Home:
• Be smart about your thermostat. Set your thermostat lower at night and during the day when you might be away. Turn the heat down an hour before bedtime or before leaving the house. When you get home, be patient – don’t turn the thermostat higher than its normal setting in an effort to warm the house faster. Adding a programmable thermostat to your home system will allow you to “set and forget” day and night temperatures.
• Snuggle up to save. Before deciding to turn up the heat, put on a sweater, hat and warm socks, and keep throws or blankets on the couch to use while watching TV or hanging out. Reduce heating in unoccupied areas and, if possible, close off rooms with the greatest northern exposure. Make family gathering places in sunny or southern-facing rooms. Put warm winter bedding – flannel sheets, warm blankets, comforters or quilts – on beds to keep the family comfortable with the house cooler at night.
• Weather-proof your windows and doors. Close shades or curtains at night to help keep cold out and open them during the day to let the sun’s warmth in. Keep windows completely closed and latched. Check doors and windows for drafts and add weather-stripping if needed. Place a towel along the bottom of the door jamb as a temporary block for cold air until you can install more permanent weatherproofing like a door skirt. Remove or cover window unit air conditioners to keep out drafts.
• Improve home comfort and efficiency through regular maintenance. Have your furnace and/or HVAC system cleaned and serviced as soon as possible for maximum efficiency and reliability over the winter months. Replace air filters to help systems run better and more efficiently. Check to make sure your water heater and hot water pipes are well-insulated; add pipe insulation or wrap-around insulation to those that aren’t. Turn down the temperature on your water heater by 10 degrees (staying above 120 degrees) to save on the energy and cost it takes to heat water. To feel warmer and alleviate dryness, increase home humidity by using an energy-efficient humidifier or by evaporating water in open containers. Take note of home improvement projects like adding insulation, caulking cracks, or replacing your old hot water heater or furnace with a more energy efficient model.
• Visit de.gov/wap to see if you qualify for free weatherization assistance. The Division of Energy & Climate’s trained professionals can weatherize your home with actions like these and help cut your energy bill.
• Use less hot water. The less hot water your family uses, the less you pay to heat it. Install flow restrictors on faucets and shower heads. Run the washing machine or dishwasher only with full loads, and use warm water to wash and cold to rinse.
• Cut your energy use throughout the house. Turn lights off when you leave the room, and turn off or unplug appliances, chargers and electronic devices when they are not in use. These items can sneakily drain energy from your home, even if you’re not using them. Use a power strip to easily turn multiple items off all at once. Looking to buy new appliances, or replace old ones? Compare Energy Star-rated appliances and look for the Energy Guide label on refrigerators, washing machines, heaters, and more. You’ll pay less to run the appliance over its lifetime.
• Be efficient in the kitchen. Plan to use the oven for three or four items at a time so you only have to heat it once. Choose a day when everyone is home to enjoy the extra warmth and delicious scents. Set your refrigerator at 38°F to 40°F and your freezer at 10°F. Keep your freezer full, and try to minimize the number of times you open refrigerator and freezer doors.
• Do lower-impact laundry. Use a clothesline or drying rack instead of the dryer. When items require a dryer, run full loads and separate heavy and lightweight items to avoid using the machine longer than necessary to dry each type. Dry in consecutive loads; once the dryer is warm, it cuts down on initial energy consumption to dry the next load.

Car:
• Skip the morning warm-up. Idling your car to warm it up wastes fuel and creates air pollution. Bundle up and just start driving – modern car engines are better warmed up by driving than by idling.
• Plan ahead with friends and co-workers. Consider joining a workplace carpool or using public transportation – you’ll save on fuel costs, tolls, and wear and tear to your vehicle. On weekends, save gas and time by planning errands in the shortest circular route starting and ending at home instead of traveling in random directions or making several trips. You can also plan to take care of errands during the week along your daily route to work or school.
• Save fuel through mindful driving habits. Accelerate from stops slowly, drive at moderate, steady speeds and avoid unnecessary braking by coasting to red lights and anticipating traffic speed changes.
• Check your tire pressure. Underinflated tires decrease fuel efficiency.
• Schedule regular maintenance checks. Oil and filter changes and other recommended maintenance keep your vehicle operating efficiently.
• Play favorites. If you have more than one vehicle, use the one with the best gas mileage more frequently. Smaller cars with smaller engines typically get better gas mileage than larger vehicles.
• Know your options before buying a new vehicle. Gasoline isn’t your only option. Major manufacturers like Ford, Chevy, Nissan, and BMW make electric cars that offer all the same design, comfort and safety standards as gas-powered cars, with a fraction of the maintenance and ‘fuel’ costs. Plus, federal tax breaks, manufacturer rebates and rebates from Delaware’s Clean Transportation Incentive Program (de.gov/cleantransportation) may significantly lower the cost of your vehicle. If you’re set on a gas-powered car, consider size and fuel efficiency in your purchase.

How DNREC can help you save on energy costs
The Division of Energy & Climate works with local non-profit agency Catholic Charities to provide energy conservation services for the homes of low-income Delawareans. For example, a family of four making less than $46,000 per year may qualify for free in-home weatherization services that can save owners and renters hundreds of dollars in annual heating bills. For more information about the Weatherization Assistance Program, please contact the Division of Energy & Climate at 302-735-3480, or visit de.gov/wap.

Delaware’s Sustainable Energy Utility (SEU) offers the Home Performance with Energy Star Performance Program for all Delaware residents, regardless of income. Homeowners can receive an Energy Star Audit for just $100, along with free energy-saving items up to a $220 value, including light bulbs, showerheads, faucet aerators, pipe insulation and smart power strips installed during the audit. The program also offers incentives for completing energy efficiency improvements identified during the energy audit. Visit http://www.energizedelaware.org/for more information.

Electric cars or alternative fuel vehicles provide low-fuel, cost-saving transportation opportunities – the Division of Energy & Climate’s Clean Transportation Incentive Program offers rebates for purchasers or leasees of electric or alternative fuel vehicles, and cost assistance for charging equipment as well. The program has already provided rebates for almost 300 electric and plug-in hybrid electric vehicles in Delaware across all three counties. For more information, visit de.gov/cleantransportation.

For more information on the Delaware Division of Energy & Climate and its programs, including the Energy Savers Guide, call 302-735-3480, or visit http://www.dnrec.delaware.gov/energy/Pages/Portal.aspx.

Media contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902.

Vol. 46, No. 415

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