Delaware Earns Lunch + Learn

What is Delaware EARNS, and why is it important for employees?

In Delaware, nearly 150,000 workers don’t have access to a qualified retirement savings plan at work. The cost to Delaware of doing nothing to alter the retirement landscape is $55 million annually. Delaware EARNS is a “secure choice” program designed to provide workers and employers access to low-cost retirement savings plans. The state-facilitated plan provides a convenient way for all workers to save for retirement, particularly middle- and low-income workers who lack access to employer-sponsored plans. The plan also offers an option for small businesses that are unable to provide such a benefit on their own.

Are all Delaware employers required to participate?

Private-sector employers with five or more W-2 employees (full- or part-time) and no qualified retirement plan are required to offer Delaware EARNS. Although businesses with fewer than five employees are not required to participate, employees—including contractors and gig workers—can self-enroll in Delaware EARNS to open their own IRA. Contractors—people who are not employees—do not count toward the five-employee limit. For example, if an employer has three W-2 employees and twelve 1099 contractors, that employer is exempt from EARNS. If an employer already offers employees a retirement savings plan, such as a 401(k), the employer may still be required to notify Delaware EARNS of their exemption, a simple process.

When will Delaware EARNS go into effect?

The program officially launched statewide on July 1, 2024. Employers are required to register or certify an exemption if they already offer a retirement plan by October 15, 2024. Covered employees can begin to participate and make contributions 30 days after their employer registers.

JOIN US 9.13.24 FOR AN INFORMATIONAL SESSION. Just 25 seats available in person with a virtual option available as well. Link will be sent 1 day prior to meeting.