Governor Carney signed the Delaware EARNS Act into law. The Expanding Access for Retirement and Necessary Savings (EARNS) Act provides an IRA-type savings program for individuals employed by employers who do not otherwise offer a retirement plan. The law applies to employers employing at least 5 employees.

The Act establishes an EARNS program board to design, develop, implement, maintain, and oversee the program .The Board shall implement the program so that covered employees can begin to participate and make contributions by January 1, 2025.The Board may implement the program in stages based on employer size.

A covered employee means an individual who is employed by a covered employer, and who has wages or other compensation allocable to the State. Covered employee does not include:

• Any employee of the federal government, the State, county or any other state agency.
• Any employee covered under the federal Railway Labor Act.
• Any employee whose employer makes contributions to a Taft-Hartley multiemployer pension plan.
• Any employee under the age of 18.

Covered employers shall:

• Register with the Program and provide the Program administrator relevant information about the employer’s employees.
• Inform all covered employees the choice to either participate in the Program by voluntarily contributing to an IRA under the Program or opt out of the Program.
• Provide program-related information, educational materials, and disclosures to covered employees and participants.
• Timely remit participant contributions.

Covered employees, who do not opt out, shall be automatically enrolled in the Program at a rate specified by the Board or at the rate or amount expressly specified by an employee in connection with the payroll deduction IRA arrangements. Participants shall have the right to modify their contribution rates or amounts or terminate their participation in the Program at any time.