Delaware Joins Consortium Providing Retirement Plan Coverage

Delaware is joining the Partnership for a Dignified Retirement, an interstate consortium that helps states provide access to retirement plan coverage. The action brings Delaware’s program into formal cooperation with those of Colorado and Maine. 

Colorado Gov. Jared Polis (D) signed the measure creating the Colorado Secure Savings Program into law on July 14, 2020; the pilot launched in October 2022. Delaware EARNS came into being in August 2022 at the stroke of Gov. John Carney’s (D) pen. Like similar programs in other states, EARNS is not intended to replace employer-provided plans; rather, it is intended to provide retirement plan coverage for those whose employers do not. 

Joining the Partnership

The Delaware EARNS Program Board, which oversees initial design and implementation of the program, on July 13, 2023 voted unanimously to authorize the office of State Treasurer Colleen Davis to evaluate entering into an interstate partnership or multistate consortium to support the launch and future success of EARNS. Ted Griffith, Program Director of Delaware EARNS, on Nov. 6 confirmed with ASPPA Connect that Delaware EARNS was negotiating with Colorado and keeping Maine informed of their progress. 

The EARNS Program Board at its Dec. 7, 2023 meeting considered a motion to authorize the Office of the State Treasurer to execute all agreements necessary to join and participate in Colorado’s interstate consortium, the Partnership for a Dignified Retirement. Maine already had joined Colorado in forming the partnership; Delaware is the second state to do so. 

Davis and Colorado State Treasurer Dave Young expressed appreciation for the Delaware EARNS Program Board’s action, and Colorado SecureSavings Program Director Hunter Railey called it “an important milestone.” They hailed it as an important step in expanding retirement coverage. 

For her part, EARNS Board Chair Fayetta M. Blake said she expects that joining the consortium will “greatly accelerate” launching EARNS, as well as benefit EARNS participants by giving them access to economies of scale that would help them to increase their savings. 

And Douglas Magnolia, Chief Customer Officer and President of Vestwell State Savings, in a press release said of the agreement, “Delaware’s engagement with Colorado SecureSavings is representative of the next phase of state auto-IRA retirement programs—by partnering with another state with up-and-running savings programs, smaller states can expedite their program launch and get their residents access to these retirement accounts more quickly.”

Vestwell’s Role 

Elizabeth Bordowitz, Executive Director of the Maine Retirement Investment Trust, in November told ASPPA Connect/the NTSA Advisor that the Delaware EARNS Program Board had authorized its staff to work on reaching agreements with Vestwell and Colorado. Vestwell provides services to the state-run programs of eight states, among them Colorado, Connecticut, Maine, Maryland, Oregon, and Virginia. 

Vestwell announced Dec. 12 that in partnership with BNY Mellon, it will serve as the Program Administrator of EARNS, providing recordkeeping, custodial, and administrative services. The firm also serves employers and employees in participating Partnership for a Dignified Retirement states.

“We’re excited to continue spurring innovation in the state savings space and support the expansion of state partnerships as a new way to bridge the access gap for individuals looking to save for their futures,” said Magnolia.