The Office of State Treasurer is exploring the 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 low- and middle-income, currently lack access to a 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.
EARNS uses an opt out approach, with new employees signed up for the program unless they indicate otherwise. Retirement savings programs typically require sign-up papers that many workers avoid. The approach had widespread support as a way to improve the dismal retirement savings rate among many Delawareans., although a few critics say some entry level employees need their entire paycheck.
A multi-state would benefit Delaware since it would lower administrative costs and perhaps increase investment options.
“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:
“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.”
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.
