Delaware House Passes Bill to Establish EARNS Program

The First State is poised to join its sister states that provide a state-run retirement plan.  

By a 35-1 margin, the state House of Representatives passed legislation May 17, 2022 to create the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) program, which is intended to provide coverage for employees of small businesses that are unable to offer retirement plans to employees due to the cost and administrative burden. 

The bill that would create it, HB 205, was introduced almost exactly one year earlier by Rep. Larry Lambert (D-Claymont). 

The measure would create vehicles through which eligible employees may, on a voluntary basis, participate in a state-facilitated retirement savings program. 

The measure would create the Delaware EARNS Program Board to oversee initial design and implementation of the program. The Board would be disbanded no later than Dec. 31, 2025, when the Plans Management Board would assume all of its duties and functions. The effective date of the Act is contingent upon an appropriation by the General Assembly necessary to implement the Program. This Act also makes technical changes to the existing law to make it conform to the standards of the Legislative Drafting Manual.

The legislation is now before the Labor Committee of the state Senate.