The State Treasurer's Office is exploring an interstate collaboration for Delaware’s new private-sector retirement program.
The Delaware EARNS program is expected to launch in 2025 – it's a publicly offered retirement fund that will provide a way for private-sector workers to save for retirement.
At the program’s July 13 board meeting, they voted unanimously to authorize the Treasurer’s office to evaluate entry into an interstate partnership or multi-state consortium to support the program’s launch and financial viability.
Program director Ted Griffith says they’re looking to partner with states that already have a private-sector retirement program. Only seven do, with neighboring Maryland being the closest.
“It really is about capturing those economies of scale through interstate cooperation," Griffith says. "And it’s also benefitting from a state that already has one of these retirement savings programs, so-called auto-IRAs, up and running, we can make use of their expertise as well.”
The EARNS program will also help small businesses that lack the resources to offer a 401(k) or similar retirement plan, at no cost to the business, says Griffith.
Nearly 150,000 Delaware workers, many of them low- and middle-income, currently lack access to a workplace retirement savings plan, but Griffith says they won’t be the only beneficiaries.
“One of the things we looked at is how much could the state save in the future, many years in the future, if people were entering retirement with their own savings and therefore less spending by the state on Medicaid and other types of assistance," Griffith says.
He adds that the program aims to eventually be self-sufficient after receiving nearly 1.1 million dollars in the last 3 state budgets to get started.
This year, the program received $278,000 in the state budget, $382,000 in FY2022, and $438,000 in FY2023.
