Delaware has a retirement savings gap, and this week there is an opportunity to start to narrow that gap.
The Delaware EARNS program is a requirement for employers with five or more W-2 employees, if they do not already offer a program of their own. The deadline for employers to get enrolled or submit their program for approval is this Tuesday, October 15th.
“This is a vehicle that is only available to employers that are not currently offering a retirement fund,” Delaware State Treasurer Colleen Davis said. “We’re estimating around 40% of all private-sector employees don’t have access to retirement savings through work.”
Davis said this will set up a secure, easy, automatic way for employees to make payroll contributions to a Roth IRA, at no cost to the employer. Registration for Delaware EARNS has been open since July.
“They’ll be able to see their investments, track them and ensure that they’re getting the returns that they’re looking for and investing in ways that are meaningful to them,” Davis added.
The program is administered by Vestwell State Savings, which also works with similar programs in several other states that include Maryland, New Jersey and Virginia.
“Business owners in Delaware have a great opportunity to bring retirement savings to their employees,” Vestwell State Savings President Douglas Magnolia said. “Through Vestwell’s partnership with Delaware EARNS, employers and employees in the state have access to an industry-leading savings platform, providing them with the ability to save for a secure financial future.”