Delaware Governor Carney signed HB 205, the Delaware EARNS Act, into law last Thursday, and the State Treasurer will “officially begin building the infrastructure that will drive the landmark retirement program,” according to the announcement.
“It shouldn’t matter what your background or job is: every Delawarean deserves the opportunity to enter into retirement with economic dignity and security.”
The latest state to sponsor a plan for private sector workers, Delaware EARNS (Expanding Access for Retirement and Necessary Savings), requires businesses with more than five employees that don’t currently offer a retirement plan to participate through a simple payroll process.
“We’ve worked long and hard to make this program a reality for Delawareans who lack access to an employer-sponsored retirement program,” State Treasurer Colleen Davis said in a statement. “I am grateful to Representative Larry Lambert, Senator Nicole Poore, all of their colleagues in the General Assembly, the AARP of Delaware, and of course the Governor for helping us get here.”
The Treasurer’s office will hire an executive director who will guide the operation of the program and work with the Delaware EARNS Program Board, established by the legislation to oversee the initial design and implementation of the program.
The Board will consist of the State Treasurer, Secretary of Finance, Insurance Commissioner, Secretary of Labor, and chairperson of the Plans Management Board, each of whom may appoint a designee, as well as two members of the public chosen by the Governor.
“It shouldn’t matter what your background or job is: every Delawarean deserves the opportunity to enter into retirement with economic dignity and security,” Rep. Lambert, D-Claymont, prime sponsor of the legislation, added. “For small businesses and the almost 150,000 Delaware workers lacking an employer-sponsored saving program, the Delaware EARNS program will be financially transformative, allowing residents to save for the future while filling a critical need in the marketplace. This new program will put thousands of working Delawareans on a level playing field when it comes to their financial future, and I am excited to see it in action.”
More information about Delaware EARNS can be found at de.gov/earns.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
