Delaware’s State Treasurer pushes to bring back the State Employee Retirement Match.
If Delaware brings the program back, the State would contribute up to $20 per pay period to state employees in its voluntary deferred compensation program, DEFER.
The match was in place until 2008. Every budget bill since has said the General Assembly intends to reinstate it once funding is available, according to Treasurer Colleen Davis.
Lawmakers pulled the plug during the Great Recession, but Davis said they always meant to reinstate it once Delaware was in a position to do so.
That’s possible now, according to Davis, and she’s backing Senate Bill 20, sponsored by State Sen. Trey Paradee and State Rep. Bill Bush, to do so.
“Today, we're doing very well. And again, I think the work that I've done to ensure that we're continuing to perform well means that we actually have the funding to do it.”
But earlier this week during its 2026 budget hearings, the Joint Finance Committee heard a gloomy forecast that without cuts, the state could exhaust its budget stabilization fund by FY27 and face a deficit in FY28.
On top of that, possible federal funding cuts by the Trump administration could worsen the state’s position.
Davis argued this retirement program – which will cost $5.5 to 6 million per year – is one the state can and should reinstate while making other necessary cuts. She said it will help the state recruit and retain state employees.
“We've made some concerted effort to try to increase pay rates, and that has been a help… This is a way to ensure that we're putting funds toward their future and not necessarily stressing their tax burden as well.”
