NEWS RELEASE
OFFICE OF THE COLORADO STATE TREASURER
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DENVER – The Colorado SecureSavings Program and Delaware EARNS established a partnership last week to help more savers prepare for their future retirement.
The Delaware EARNS Program Board voted to join the Partnership for a Dignified Retirement.
The partnership helps the State of Delaware offer a cost-friendly, state-run retirement program for workers who don’t have access to a retirement savings program.
"This is an important step towards expanding sustainable and dignified retirement options across the nation. We appreciate the vote of confidence from the Delaware EARNS Board, and we are looking forward to working closely with Treasurer Colleen Davis and her team,” said Dave Young, Colorado state treasurer.
Vestwell, in partnership with BNY Mellon, serves as the Program Administrator, providing recordkeeping, custodial, and administrative services to employers and employees in participating partner states. The Partnership for a Dignified Retirement provides a proven avenue for smaller states to offer a pathway to financial security for savers.
The partnership will help pave the way for more savers to be able to sign up for a retirement program through their work. It expands the program and focuses on the simplicity for employers and savers that other states can adopt.
It is a state-facilitated retirement program for private-sector employers and their employees. The program leverages the benefits of compound interest, allowing retirement funds to grow faster. The longer retirement funds are invested, the more growth is expected.
“Delaware joining the Partnership for a Dignified Retirement is an important milestone. The ability of employers to provide an accessible option to savers will help significantly improve the financial lives of families across the country,” said Hunter Railey, director of Colorado SecureSavings Program.
“We’re delighted to see innovation in state savings programs continue as Delaware joins the Partnership for a Dignified Retirement,” Douglas Magnolia, chief customer officer and president of Vestwell State Savings. “Vestwell is proud to power Delaware EARNS and help close the savings gap for the nearly 40% of private sector employees that do not have access to retirement savings.”
Partnership programs are tied to the employee instead of the employer, making the account portable when the employee leaves and changes jobs. These retirement programs are an easy and accessible way for states to provide a critical tool for financial security to working people.
With the successes of the state-run retirement savings programs in California, Illinois, Oregon, and elsewhere, the expansion of the Partnership for a Dignified Retirement represents the next step in extending low-cost, portable retirement savings options to workers without access to a savings program.
House Bill 205 in Delaware requires employers with five or more employees to provide a private retirement plan or sign up for their state program. The goal of the Delaware EARNS program is to provide workers and employers access to low-cost retirement savings plans de.gov/earns.
Colorado business owners need to decide on their retirement plan options by Dec. 31, 2023.
For more information, visit coloradosecuresavings.com. The Colorado SecureSavings Program has over 124,000 savers, and 13,000 registered employers so far.
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