Del. EARNS Act could level the playing field for First State retirees

DELAWARE – Delaware lawmakers are hoping to level the playing field for First State retirees.

That could become possible if the Delaware EARNS Act passes. “Delaware EARNS is a transformative pice of legislation. It stands for expanding access to retirement and needful savings,” said bill sponsors Representative Larry Lambert. “It establishes a state facilitated retirement savings plan for individuals that don’t have access to retirement savings plans through their employers.”

The bill enables all employers with five or more employees to be able to provide the retirement savings plans to employees. Rep. Lambert says that resource would come at no cost to the employers.

Rep. Lambert says many low to middle income Delawareans don’t have the opportunity to save for retirement through their employers. “When people have access to their retirement savings plans through their employers, they’re way more likely to engage in those retirement savings plans,” he said. “The utilization rate is somewhere around 66%. But, for individuals that don’t have access to retirement savings plans through their employers, that utilization rate is somewhere between 5% and 10%.”

Many of those individuals are employed in the service and hospitality industries, according to Rep. Lambert. “Individuals such as barbers, salon workers, nail techs – some of our middle and lower income individuals don’t have access to retirement savings plans,” he said.

For Rep. Lambert, the legislation is personal. “My first job was in teaching. I loved it, it inspired me, it gave me purpose. But, I left teaching to go into corporate banking because I wanted a retirement savings plan, and I wanted healthcare,” he said.

 The House of Representatives pushed the bill off the floor with a favorable vote. Now, the legislation is awaiting consideration in the Senate Labor Committee. Representative Lambert says he’s hoping to see the legislation come to fruition, so Delawareans have equal opportunity post retirement. “This bill enables everyone, no matter what profession they work for, to be able to stay in that profession and to save up towards retirement.”