Delaware EARNS Launches Pilot, CalSavers Surpasses $1B in Contributions

State auto-IRA programs continue to make progress, as nearly a dozen private-sector employers are slated to participate in the Delaware EARNS auto-IRA program this month, while one of the earliest such programs, CalSavers, surpassed $1 billion in contributions to saver accounts this week. 

The pilot program for Delaware EARNS is meant to help ensure systems are fully ready ahead of the program’s formal launch on July 1.  

Among the participants is Pathways to Success of Georgetown, Delaware, a non-profit that provides services to empower at-risk communities.  

“I feel very honored to be one of the employers that will be launching Delaware EARNS,” said Fayetta M. Blake, executive director of Pathways to Success and chair of the EARNS Program Board, in a press release. “Those of us who are smaller employers can face challenges in offering benefits, like retirement savings, that help attract and retain employees. Delaware EARNS will help level the playing field for small businesses and small nonprofits.” 

Sponsored by the Office of State Treasurer Colleen C. Davis, EARNS is a retirement savings program for private-sector workers who do not have access to a workplace plan through their jobs. Employers with five or more employees (full or part-time) will be required to facilitate the auto-IRA program if they do not offer a qualified retirement plan, such as a 401(k) or 403(b). 

According to Treasurer Davis, there are nearly 150,000 private-sector workers in Delaware with no access to retirement savings through their employers. 

The state program also entered into a partnership with Colorado’s interstate consortium of state-run retirement savings in December 2023. Vestwell serves as the program administrator, providing recordkeeping, custodial and administrative services to employers and employees in the program. 

Delaware employers that want to get a head start on offering access to retirement benefits can register starting as early as July 1. There is no cost to employers for facilitating the EARNS program and no plan sponsor liability. 

Employers that meet the requirements have until October 15, 2024, to register or certify that they are exempt from the EARNS requirement.  

In other state auto-IRA news, CalSavers, one of the longest-lived such programs, recently surpassed $1 billion in contributions to savers’ accounts. In addition, around 50,000 employers are starting CalSavers payroll deductions and 500,000 CalSavers accounts are being funded. 

New Jersey also recently announced the launch of its pilot program, RetireReady NJ, ahead of the official launch of the Secure Choice Savings Program this summer. 

According to Georgetown University’s Center for Retirement Initiatives, state programs have garnered about $1.418 billion in total assets. A total of 16 states currently have programs that are live or in some stage of development.